Inside Franchise Business Nov/Jan 2021

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

NOV/JAN 2021

ISSUE 33 VOL 04

FAST AND FURIOUS How digital is delivering for takeaway TRICKS AND TIPS TO GETTING THAT BUSINESS LOAN HOW TO BUY A FITNESS FRANCHISE

40 YEARS BAKING!

Iconic Aussie brand Bakers Delight looks to the future

PARTNERS IN A FULFILLING CAREER Enjoy a fulfilling career on your terms when you become a 7-Eleven Franchisee.

By choosing to own a 7-Eleven store you can feel closer than ever to your local community with the continued support of an iconic brand and Australian-owned company.

FIND OUT MORE AT franchise.7eleven.com.au

WHAT ARE THE BENEFITS OF OWNING YOUR OWN FRANCHISE? • A career that offers flexibility.

• A personal connection to your local community.

• Being part of a company that’s focused on customer service.

• Supported site management and setup to get you started.

• A permanent support network and access to our corporate office.

• Ongoing merchandising assistance.

• A direct partnership with our operations team.

• Complete training and access to ongoing digital training content.

• 24-hour support through our support centre.

• Assistance from our broader team with book-keeping, managing payroll administration, and working with suppliers including fuel.

• Advertising and promotional support.

A PARTNERSHIP WITH CONTINUED SUPPORT As a 7-Eleven Franchisee, you’re supported every step of the way.

So if you’re considering a career change and would like to be part of an essential community service, get in contact today.

CONTACT DETAILS – FRANCHISE DEVELOPMENT MANAGERS Brett Reading, QLD

Peter O’Hara, VIC

Email: bzr@7eleven.com.au Mobile: 0407 877 674

Email: pwo@7eleven.com.au Mobile: 0408 175 534

Shayne Boogaard, NSW

Edris Mukarram, WA

Email: szh@7eleven.com.au Mobile: 0418 136 156

Email: ewm@7eleven.com.au Mobile: 0436 658 741

FRANCHISING

**

*Terms & Conditions apply, please go to https://franchising.donutking.com.au/enquire/ for details. **Images are for illustrative purposes only and actual store design may vary.

CONTENTS

REGULARS

LEADERSHIP

11 EDITORIAL 12 GLOBAL EYE 14 INSIGHTS 16 THE LIST 88 GLOSSARY 90 BUYING PROCESS 91 INFLUENCERS 92 CHECKLIST 93 RESOURCES

20 BAKE TO THE FUTURE

Celebrating 40 years of Bakers Delight.

30 BURGE URGE...

And the $100m target.

36 SHADES OF POSITIVITY

Why Stepz Fitness has a fresh take on layout and design.

38

DOMINO’S YOUNG GUN

Pizza chain’s youngest franchisee.

40 OFFICE POLITICS 24 SNAP UP THESE NEW IDEAS!

Fresh-faced brands look to the future.

28 EXCITING PATH AHEAD

Iconic Clark Rubber acquired - so what’s next?

SPOTLIGHT: HAIR & BEAUTY

Business has been good for Cartridge World.

42 DAY IN THE LIFE...

Appliance Tagging Services franchise operations manager.

FRANCHISE BASICS 66 WHICH KIND OF FRANCHISOR? Align yourself with the right type of franchise leader.

68 WHEN IS THE RIGHT TIME TO BUY? How to figure out when to invest in a franchise.

SPECIAL FEATURE

52 SALON SECRETS

62 HOW TO BUY A FITNESS FRANCHISE

Just Cuts and Ella Baché share insights.

Choosing a franchise: how do you pick the winner?

64 13 WAYS TO ACTIVATE

YOUR PASSION

Find a fitness brand that suits you.

SPOTLIGHT: FOOD

SPOTLIGHT: POOLS 59

WATER WORLD

Options in the pool sector.

SPOTLIGHT: BUDGET BUYS 60 BUDGET BUYS

Cost-friendly options for professionals.

44 FAST AND FURIOUS

Dessert brands put innovation on the plate.

NOV/JAN 2020-2021 | 9 | WWW.FRANCHISEBUSINESS.COM.AU

72 WHO HAS THE MOST RIGHTS?

ACCC advice on the franchising agreement.

74 BUSINESS LOAN BASICS Give yourself a head start.

76 THE RISE OF THE SUBURBS

The big location shift in business.

80 COVID QUESTIONS

What to ask your franchisor.

82

CULTURE AND MY TEAM

97

FINAL WORD

How a franchise culture affects your own staff.

Franchisees share their love of their brands.

become a moo-ver and shaker franchisee at cowch dessert cocktail bar!

Enjoy contentment from Monday to Sundae: cowch.com.au/franchising

WELCOME

Stronger together Covid-19 has shown us the power of togetherness It’s been a rollercoaster of a year, and most of us will be happy to farewell 2020. The pandemic has been a social, medical and economic nightmare across the globe.

Melbourne has been particularly hard hit with its second lockdown, which at time of writing was easing with retail and hospitality firms once again opening their doors.

Sadly some franchisees have faced terrible times, and as the Pulse Check survey shows some have closed their doors.

Luckily there have been exceptions to the bad news, and as you can read in Insights (page 14), some well-placed businesses have seen revenues rise, even expanded their franchise numbers.

The latest survey reflecting on the September quarter indicated that franchisors generally were positive about business in 2021.

A crucial element to success will be the continuation of support for franchisees.

It could be support that is shaped by concerns for mental wellbeing, delivers revenue-boosting innovation or provides practical solutions for financial worries.

And that’s been the overarching strength of 2020 in franchising - the capacity for networks of individual business owners supported by hard-working and innovative franchisors to work together for a better outcome than could be achieved by solo efforts.

It remains to be seen what external support will be provided to help small business owners not just survive but thrive. In the franchise sector though, we’ve seen the power of togetherness, and that’s something that appeals to new business owners.

And at a time when surviving economic highs and lows over time is more important than ever, we celebrate significant anniversaries. Aussie gelato sensation Gelatissimo turns 18, while our cover story, mega franchise success Bakers Delight, notches up a massive four decades in business.

Franchisors talk of their franchise network as a family and like any good family, the best are looking after their own. Why not join and garner the benefits?

Here’s to a much better year in 2021!

EDITOR

Advertising coordinator

GENERAL MANAGER

GRAPHIC DESIGN

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

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

SENIOR ACCOUNT MANAGER

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

Simone Lagudi P: 02 8224 8375 simone.l@octomedia.com.au

Rozelle Carlos rozelle.c@octomedia.com.au

Sar a h Sarah Stowe Editor

OCTOMedia

OCTOMEDIA Pty Ltd Suite 3, Ground Floor, 131 Clarence Street, Sydney NSW 2000 Ph: +61 2 9901 1800 www.octomedia.com.au

FOR SUBSCRIPTION ENQUIRIES CALL CUSTOMER SERVICE: 02 8224 8383 ISSN: 1321-408X

NOV/JAN 2020-2021 | 11 | WWW.FRANCHISEBUSINESS.COM.AU

ALL INSIDE FRANCHISE BUSINESS MATERIAL IS COPYRIGHT. REPRODUCTION IN WHOLE OR IN PART IS NOT ALLOWED WITHOUT WRITTEN PERMISSION FROM THE EDITOR. OPINIONS EXPRESSED IN INSIDE FRANCHISE BUSINESS ARE NOT NECESSARILY THOSE OF INSIDE FRANCHISE BUSINESS OR OCTOMEDIA. © COPYRIGHT OCTOMEDIA, 2016

GLOBAL EYE

GOOD, BETTER, BEST Soaring sales, superstar brands, growth opportunities...it’s all happening in franchising.

PACK & SEND SALES HIT $20.5M Soaring sales at Pack & Send reflect the booming trend in ecommerce as the logistics firm shipped 241 per cent more online goods in the first quarter of this financial year than in the same period last year.

This mega lift in volume helped lead the overall business to strong growth of 28 per cent, achieving $20.5 million in revenue.

And that’s good news for franchisees, whose profits rose along with same-store sales growth.

Sales for the franchise network were strong across all three regions: Australia, New Zealand and the UK. Pack & Send CEO and founder Michael Paul said the brand’s strong growth is a consequence of the strategic course set before Covid-19, which included more than $5.2 million in technology investments.

Paul said “One focus is building more technology to help us win more sales in the

CYCLEBAR SIGNS THREESTUDIO SYDNEY DEAL

The chains are whirring for one fitness franchise as CycleBar expands in Sydney with a new three-studio deal. The first studio is set to open in early 2021.

Pending NSW Government guidelines in response to the coronavirus, each studio will house up to 50 bikes and offer at least 30 low-impact, high-intensity 45-minute classes a week.

Matt Gordin, the previous CEO of BikeExchange US and former GM of nationwide cycle store chain Bike Force, holds the Australian licence for CycleBar, under the Spin X Operations banner.

Spin X signed a 45 outlet franchise deal earlier this year and opened its first studio in Currambine, Western Australia in September.

Matt told Inside Franchise Business plans are well underway to continue Australian expansion throughout 2021. n

high growth ecommerce order fulfilment market including having our stores act as local fulfilment centres. This will give customers the option to hold stock throughout the Pack & Send network, enabling consumers to have same day delivery or pick up after placing an order on a web store.” n

NEW APPOINTMENTS Former CouriersPlease chief operating officer Phil Reid returns to the role after a three-year absence.

At Battery World, new GM Johnny Kennedy (above) replaces Shawn Kerr, who now heads up the Burger Urge business.

Studio Pilates has appointed former Specsavers executive and international franchising specialist John L. Scott as director of franchising.

Global real estate franchise network Harcourts International has announced Andrew Friebe as new chief operating officer.

Physio Inq has appointed Elizabeth Pearson as chief operating officer to lead and oversee both the Physio Inq Mobile Community Services as well as the franchise arm of the company. n

10 OUTLETS FOR NINJA PARC IN 2021

Functional fitness chain Ninja Parc will open 10 further outlets in 2021, building on the two sites already operating and two more in the pipeline.

The corporate Newcastle outlet was joined 18 months ago by a centre in Townsville, the first franchised Ninja Parc. After reopening post-Queensland lockdown this centre has been doing “phenomenally well”, said John Perlo, the concept founder.

“Performance at the moment has been more than we expected, we’ve seen how quickly the community wants to gravitate towards this kind of activity. It’s been a very successful restart,” he said.

“We intend to open 10 sites next year. We had more on the plan but it’s been revised. Our main focus is on capital cities, large regional cities, then building a hub and spoke model,” said Perlo.

Franchisees will be able to take on multiple sites with the hub and spoke concept, with smaller outlets feeding the business and allowing franchisees to expand their business quickly.

The smaller footprint sites are around 600-700 sq m rather than the usual 12-1400 sq m.

“It will be the same style of equipment in a modified program so there are more interchangeable parts.

It keeps it fresh for clients too” he said.

“Enquiries are coming up, it’s never been a better time to invest. People have made a change, think it’s time to move on from their career and look for a better work life balance.” n

NOV/JAN 2020-2021 | 12 | WWW.FRANCHISEBUSINESS.COM.AU

MBE OPENS 40TH AUSSIE STORE

Print, mail box rental and shipping business Mail Boxes Etc. has just hit a milestone, opening its 40th Australian retail outlet.

And there's more growth to come, with five stores slated to open before 2021.

CEO Clayton Treloar, who heads up MBE Australia, said franchise enquiries have been on the rise since July, despite the Covid-19 situation. He's optimistic about further growth.

“It’s been a busy second-half to the year and we’re expecting steady growth over the coming months with a rise in franchise enquiries which has been very positive for us.”

Brand new franchisees Praveen and Sindy have opened the latest store, located in Port Macquarie in the New South Wales

mid north coast.

The MBE team has also signed up new franchisees in Fremantle, Western Australia.

A new Melbourne location, as well as another three franchise grants confirmed, are among the locations line-up.

THE CHEESECAKE SHOP, GUTTER-VAC SCORE 5 STARS The Cheesecake Shop is the first food franchise to score an independent 5-star rating on the Australian Franchise Rating Scale.

Gutter-Vac has also just scooped a 5-star spot; last year the highperforming home services business achieved 4-stars.

The ratings, operated by business intelligence firm FRANdata, evaluate a franchise system on 100 individual measures across seven performance standards.

FRANdata’s Australian CEO Darryn McAuliffe said “The systems and processes in the Cheesecake Shop are of a very, very high standard and the quality of supporting information provided reflected best practice across most categories.

“The review team was particularly impressed with their financial reporting framework, the financial performance of franchisees and their support model. These results were also validated by the responses of

COMMUNITY CARE

franchisees in their latest external engagement and satisfaction report.”

The Cheesecake Shop’s MD Ken Rosebery said “We are thrilled to achieve this recognition which validates our focus on trust, transparency and rigour, as essential qualities in contributing to our long-term success.”

At Gutter-Vac financial performance across the network, franchisee engagement levels and the support provided to its franchisees, impressed the review panel.

Gutter-Vac founder and CEO Warren Ballantyne said “We have worked hard and invested heavily to get to where we are today.

For us, this rating also effectively recognises the performance and contribution of every franchisee across our 90-strong network.

We will continue to be driven by opportunities for continuous improvement for the benefit of our franchisees and their customers.” n

Domino’s registered charity Give for Good has partnered with national suicide prevention charity, Lifeline, to increase access to help for all Australians with a text service.

Give for Good will contribute $750,000 over three years to help fund the phased roll-out of a text support service across Australia as part of Lifeline’s digital transformation.

In September Banjo’s Bakery Café raised funds for mental health awareness, pushing the message that a conversation in a safe space can be the first step towards improving mental health.

In 2020 the goal is to raise more than $35,000 for positive mental health organisation SPEAK UP! Stay ChatTY. Cartridge World has extended its partnership with Planet Ark’s Cartridges 4 Planet Ark program. n

James Young, head of franchise sales and development at DC Strategy, said “We’ve seen that all of the hard work over the last six months – even during Covid – has finally built a solid foundation for the MBE network and it’s fantastic to see the new franchises up and running with more locations on the way.”

Earlier this year MBE told Inside Franchise Business the grand plan is to build the Australian franchise network to a sizeable 120 stores within five years.

MBE provides several income streams for franchisees across three different business models, from a full store, to mini store and kiosk.

The kiosk model starts at $50,000, the mini store costs from $80,000. n

NEWS ROUND-UP

The Yiros Shop has signed its first franchise with a store opening date set for December 2020.

Inaugural franchisee Atul Sakhiya will open his outlet at Jindalee, south-west of the Brisbane CBD and near The University of Queensland, Pinjarra Hills Campus.

UK-based The HR Dept has licensed its Australian operation to HR Franchise Group Pty Ltd trading as HR Dept Australia.

Pia Engstrom takes on the role of managing director and will head up an in-country head office team. The previous set-up had been a joint venture between Engstrom and the UK. The founder and chairman of Quest Apartment Hotels, Paul Constantinou AM, has been named the 2020 inductee to the Franchise Council of Australia’s Hall of Fame.

Members of the Hall of Fame are inducted for their embodiment of the values that underpin successful franchise operations and their contribution to ongoing success of the broader Australian franchising community.

Healthy fast food chain Oliver’s Real Foods has signed a master franchise agreement which gives EG Fuelco exclusive franchisee rights to the Oliver’s restaurant brand in the petrol and convenience sector.

Oliver’s retains the right to expand its brand through corporate or franchised stores along major highways, in travel hubs, hospitals, universities and shopping centres.

Comparable sales at Harvey Norman’s company and franchise stores grew 30.3 per cent between 1 July and 17 September, pushing profits up sharply.

Between the dates of 1 July and 31 August unaudited profit leapt 185.8 per cent to $178.1 million, compared to the $62.3 million for the same period of 2019.

KX Pilates founder Aaron Smith has secured a JV into China and is leading the way on R&D to create equipment unique to KX, which will start rolling out in studios from early 2021. n

NOV/JAN 2020-2021 | 13 | WWW.FRANCHISEBUSINESS.COM.AU

INSIGHTS

POSITIVE VIBES I

n October, the latest wave of the COVID-19 SME Research Tracker which records short-term expectations among business owners, shows that despite most small and medium enterprises (69 per cent) still experiencing the negative impact of the pandemic, 41 per cent were reporting a higher income in September than in August.

Surveys reveal the rollercoaster ride that most business owners have been on in 2020.

Another survey questioned an independent panel of 258 Australian business owners with employees whose businesses are still in operation, commissioned by online financial information platform Money.com.au.

According to this survey profits have dropped for 50 per cent of businesses while 55 per cent have made serious cuts to their expenses.

However 35 per cent made the same profit as last year, and 15 per cent made more profit.

Among the 55 per cent of business owners who made cuts to crucial expenses, the great majority (44 per cent) let go of employees and contractors, despite JobKeeper. A quarter (24 per cent) cut back their own salaries, and 24 per cent froze salaries and did not pay bonuses.

One third (34 per cent) of businesses made cuts to lunches and entertainment, and one fifth (20 per cent) cut back on marketing expenses.

According to the survey responses, most businesses held onto their leased premises – despite rent accounting for up to 20 per cent of operating costs.

Retailers, in particular, pay an average of $12,000 in monthly rent and gym owners can be set back nearly $10,000 a month on rent.

The research discovered only 17 per cent of business owners cut rent expenses this year, by either moving out of the workplace or negotiating on the lease price.

Businesses also showed a reluctance to focus on growth this year, which may have been fear of further lockdown, difficulty in hiring, or wanting to remain eligible for JobKeeper - one third of surveyed businesses were on the JobKeeper program.

Licensed financial advisor and Money.com.au spokesperson, Helen Baker, says: “It is concerning that half of the businesses still in operation seem to be in survival mode – even while they made major cuts to their operational expenses.

“A proportion of businesses might have also felt adequately supported by the Government’s cash flow boost, JobKeeper, instant asset write off and the SME Guarantee Scheme and made the decision to keep their business growth stagnant until the end of the pandemic.”

NOV/JAN 2020-2021 | 14 | WWW.FRANCHISEBUSINESS.COM.AU

FRANCHISE SECTOR POSITIVE The Franchise Council of Australia, the main organisation representing the sector, has commissioned quarterly surveys from independent body FRANdata.

The most recent report released end October, had 109 Australian franchise systems participate. These systems have 15,649 franchised units and 2,012 company operated units between them.

The Pulse Check showed positive trading experiences in the September quarter across the QSR, maintenance, health and pet care related franchise systems. Cafes, restaurants (sit-down), fitness clubs, lodging and child related services proved less resilient.

Mary Aldred, CEO of the FCA, said “Franchise businesses have demonstrated incredible resilience throughout the pandemic.”

However, both Mary Aldred and FRANdata CEO Darryn McAuliffe stressed the need for continued support for franchisees as the economy starts to revive.

“While it is pleasing to see increased optimism as trading conditions improve, the recovery will be a long haul and the survival of thousands of franchisees will depend on sustained support,” Mary Aldred said.

HOW FRANCHISORS HELPED FRANCHISEES • advice on navigating new regulations and restrictions • assistance with accessing government support programs • supporting franchisees with landlord negotiations • providing royalty reduction and deferral programs • actions that monitor and support the well-being of franchisees.

OPENINGS AND CLOSURES

95

franchise units permanently closed across 34 franchise systems (mostly retail food (café) category

174

new units were opened across 45 brands, (mostly retailing, pet care and home maintenance services).

21.5%

of franchisors provided either direct or indirect financial support to 100% of their network

WHAT ARE FRANCHISORS CONCERNED ABOUT?

48%

health and wellness of franchisees and support staff

44%

franchisee financial performance

41%

landlord issues

NOV/JAN 2020-2021 | 15 | WWW.FRANCHISEBUSINESS.COM.AU

36%

franchisee engagement and satisfaction

THE LIST

IT’S ALL

ABOUT FAMILY Franchising is as much about family as it is about big brand names. Take a look.

S

ara Pantaleo was for 15 years CEO of the family business Italian restaurant chain La Porchetta, started by her brother.

“Most of the franchisees we recruited at La Porchetta, are small, family-run enterprises and some of those families have been with the brand for more than 20 years, with the second generation now involved as well,” she says.

“They serve their customers and build relationships with them so much so, that

their children and grandchildren have now become customers.

“Franchisees and their staff are treated like extended family members and all of them are part of their local community.

“I love family business because no matter how large or small the business, that sense of community and celebration is always there.

“The sense of community and family is particularly alive in franchising. The franchisor and franchisee relationship is sometimes compared to a marriage, where

the relationship will break down if open communication is lacking.

“Similarly, successful franchise systems have a strong sense of community with an open and transparent relationship.

“I have seen first hand many franchisees succeed by harnessing their family talents and working together.’

Families and franchising go hand in hand - as you’ll find out here with a few of the family-franchised brands in Australia showcased.

1. SHINGLE INN It started as a family firm back in the 1930s and while it’s transformed and transferred ownership, this cafe chain that harks back to a more traditional time is still under family leadership.

Co-owner and director Andrew Bellchambers believes the family culture of the business has survived multiple generations and is now reflected by franchisees and their own families.

2. APPLIANCE TAGGING SERVICES This family-owned and operated business has put OH&S at the heart of its operations for 18 years.

It only took two years for founders Ainsley and Sarah Allen to realise the potential for a sustainable franchise operation, and for the last 16 years the couple have been building up a national network of owner-operators, with a full support team behind them.

Today there are about 50 franchisees across the country and they are able to tap into national accounts, and focus on building their own businesses with ATS head office taking on invoicing and debt collection.

3. FERGUSON PLARRE Fourth generation baker CEO Steve Plarre has said the Victorian-based bakery’s roots in the Australian community and economy run deep.

“We have been a family owned and operated business for 118 years and I think that longevity speaks volumes. We want our franchisees’ businesses to endure, as ours has, which is why we offer a royalty-free business model and guide our franchisees every step of the way.”

NOV/JAN 2020-2021 | 16 | WWW.FRANCHISEBUSINESS.COM.AU

The 7-Eleven difference:

how a strong franchisor can set up franchisees for success The impacts of Covid-19 have shown more than ever the importance of having a strong and supportive franchisor sitting behind a franchisee allowing them to get on with running their business in the knowledge their franchisor is navigating the fast changing business landscape with them.

7-Eleven General Manager Retail Operations, Braeden Lord, said that the 7-Eleven team has worked together to safely provide fuel, food, and essentials locally during the pandemic.

“Safety of our customers and teams was our first focus. We quickly established a Covid-19 response team with representatives from all parts of the business including safety and retail operations.

Meeting daily, or more as needed, the team reviewed the latest government information, adapted existing processes, created new processes, rolled out new safety equipment and importantly, provided information updates to our franchisees across the country.

We also had our team in the field supporting stores to adapt to the new environment,” Mr Lord said.

“The response team drove the swift introduction of a special Covid-19 Leave Initiative in March, fully funded by 7-Eleven.

This ensures anyone who needs to access paid sick leave due to Covid-19 could access it, regardless of whether they have leave entitlements.”

This shared way of working together is an example of how 7-Eleven Australia’s model works differently to many franchise businesses.

THE 7-ELEVEN DIFFERENCE

“At the core, the success of our franchise model is the sharing of the gross profit derived from store sales. Stores and the support office are jointly rewarded by profitable sales. As a franchisor we pay the rent, utilities, equipment, technology, marketing,

maintenance, training systems, HR systems, and provide field support. With all this cost and distraction off a franchisee’s mind they are free to concentrate on employing a great team,” Mr Lord said.

Albeit wages are a significant cost in operating a 24/7 business, Mr Lord said that the 7-Eleven system has safeguards in place to ensure franchisees can fund a fully costed roster even when business is tough, such as during Covid-19.

“It is vital that our businesses can afford a fully costed roster at award rates, including paying the franchisees for the hours they work in the store. To support franchisees, we have a Minimum Gross Income mechanism where we top up the income of stores who might be experiencing a downturn in gross profit below the required threshold to support the wage costs.

“An unfortunate outcome of Covid-19 is an increased number of stores that are receiving income support. The peace of mind provided by the financial support for stores that need it strengthens the partnership.” he said.

“This practice of financial support demonstrates how we work together the good times and the bad. Coaching a franchisee on how best to achieve profitable and sustainable business performance involves a need based individual approach to every store. Adapting the coaching as maturity of the store and franchisee alter through the relationship will be a key to the future success.” Mr Lord said.

“As our customers’ needs and lifestyles rapidly change, our close working relationship with franchisees places us in the best possible position for enduring success.” Mr Lord concluded.

Learn more about how 7-Eleven can help you achieve your goals here.

THE LIST

4. BAKERS DELIGHT For Bakers Delight it has always been about family. The first Bakers Delight was opened

by Roger and Lesley Gillespie in 1980 - baking has been in the Gillespie family’s blood for generations.

Today, with more than 700 locations across Australia, Canada, the US and New Zealand, the business is headed up by the next generation.

Elise Gillespie, daughter of the founders, has now taken over the reigns as joint CEO with her husband David Christie. Her brother Aaron runs the operation in north America.

Read more about this iconic business on page 20.

5. SPORT STAR ACADEMY Former soccer professional Peter Nikolakopoulos set up Sport Star Academy with his wife Kelly in 2002 to deliver a broad range of sporting activities to children.

Today the business has more than 60 franchisees operating around the country, and new franchise territories have continued to open through 2020.

This family-owned business is a model that’s working for franchisee families too.

6. NARELLAN POOLS Named for the semi-rural suburb where the south-western Sydney business was first established, Narellan Pools was bought by the Meyer family in 1988.

Today the business has a network of pool builders across Queensland, New South Wales, ACT, Victoria and South Australia who deliver the five-step pool construction and installation service.

Chris Meyer has been MD and owner for 17 years, and with his wife Debb has built a collaborative and open culture.

7. ELLA BACHÉ The Ella Baché business in Australia is a third generation family-owned affair, led today by CEO Pippa Hallas.

It was Pippa’s grandmother, Edith Hallas, who brought the brand to Australia from France in 1954.

Edith was related by marriage to the founder, pharmacist Ella Baché, who began her eponymous brand in 1936.

Today the business claims the largest skincare franchise network in Australia, with products and services available in more than 150 salons across the country. It’s all backed up my more than 60 years experience in training and education.

Read more about Ella Baché on page 52.

8. SCHNITZ Roman Dyduk, otherwise know as ‘Papa Schnitz’, has spent years perfecting the humble schnitzel and founded this casual dining restaurant in 2009 to share his love of good food.

Now the chain has more than 70 outlets around the country - and it’s still owned and operated by Roman and sons Andrew and Tom. Adhering to strong family values has been the key - with customer service and franchisee support a big part of the brand ethos. n

NOV/JAN 2020-2021 | 18 | WWW.FRANCHISEBUSINESS.COM.AU

Be at the heart of our success.

Thanks for your interest in becoming a Hudsons Franchise Partner.

As a thriving chain of over 100 cafes, our philosophy is simple – our partners are the heart of our ongoing success. For the past 21 years, we have put everything into every cup, bite or sip that we serve. And to do that, we’ve created lasting partnerships, enabling our franchisees to thrive.

If you have a passion for people, coffee and customer service, think of this as the first step in the journey to becoming a key ingredient in our next 21 years.

We have business opportunities available right across Australia.

Typical investment $300k - $500k, finance options available.

We look forward to taking the journey with you.

CONTACT: JARROD MONTIGUE 0420 939 328 JARROD.M@EMIRATESLR.COM.AU HUDSONSCOFFEE.COM.AU/FRANCHISING

LEADERSHIP COVER STORY

BAKE TO THE FUTURE Forty years in business is the result of grit, determination, business smarts, a great product, a little bit of luck and innovation.

NOV/JAN 2020-2021 | 20 | WWW.FRANCHISEBUSINESS.COM.AU

OVER THE LAST 40 YEARS • An average of 30 Cheesymite Scrolls are sold every hour - that’s approximately 100-million sold in total • Bakers Delight uses 50,0000 ton of flour per year which adds up to around 1,500,000 ton over four decades • About 500 products have hit Bakers shelves • Bakers Delight has used enough Vegemite to cover Australia 27 times • On average 25 to 30 employees go from managing a bakery to owning

Bakers Delight founders Lesley and Roger Gillespie

B

akers Delight celebrates its fourth decade and looks ahead to more years of small business success for families across the country.

This is one of Australia’s high profile franchise stories and one that might be familiar: a small bakery in Hawthorn established in 1980 by husband and wife team Roger and Lesley Gillespie. Baking is in the Gillespie heritage - both Roger’s father and grandfather were bakers.

One store led to another, and by 1988 the couple had 14 outlets and were ready to embrace the franchising concept as a way to grow the brand and bring opportunity to other Australians.

Roger and Lesley handed over the reins of the business to son Aaron, who directs the north Amercian business, and daughter Elise and her husband David Christie, who run the Australian and New Zealand operations.

Today the bakery network numbers 650 outlets across Australia, Canada, New Zealand and the US. In North America there was a six month slow down that’s now accelerating - the business opened five stores in Canada and doubled its US footprint.

“In the US we just opened our second store in Connecticut,” says David Christie.

“We plan to build 10 bakeries in that area.”

In Australia the business directly employs more than 400 people, with a further 8000 to 9000 bakers and sales staff employed under the brand.

While Covid-19 has thrown a curve ball into 2020, disrupting business and forcing a freeze on capital investment in April as part of the business’ braking mechanism, the bakery chain has now reignited plans for growth.

In Australia the focus is very much on franchisee profitability, enhanced technology and store growth.

“Growth is less about total store

NOV/JAN 2020-2021 | 21 | WWW.FRANCHISEBUSINESS.COM.AU

numbers and more about profit at store level and store growth,” David says. “We will see growth over the next year but we will be looking at how we can get more customers efficiently.”

Technology and store formats are important levers for this and the company is testing a number of concepts. One concept is exploring the potential of contactless sales with self-serve kiosks to sharpen the efficiency and convenience of the customer experience.

“If that works, we can use it as a way to get to more locations without building a full-service store.”

The enforced shift to working from home for a big part of the population has diminished the need for CBD stores and the correlating shift to the suburbs opens up more local opportunities.

“We’ve got a very good outlook for neighbourhoods and strip shopping. We’re just working out where big shopping centres will sit,” David says.

COVER STORY

CO-FOUNDER ROGER GILLESPIE REFLECTS ON BUSINESS

From left: David Christie, Elise, Roger and Lesley Gillespie

While the mega centres have been severely impacted, particularly in Victoria, he is confident traffic will return.

DELIVERY AND DIGITAL While delivery is not the crucial channel to customers that it is in fast-food, it has a role to play in the future of the bakery network.

“How people interact with grocery delivery is a few steps behind,” says David. “We’ve partnered with Uber Eats and about 25 per cent work with them. We need to have a play in that space.”

In the grocery category online sales have risen to 10 per cent but 90 per cent of revenue is still from in store sales, and it’s important to stay focused on the in-store experience, David says.

“People tend to overestimate the short term and underestimate the long term impact of technology. The trend is pretty clear. A lot of people who have no interest in buying groceries online have been forced to do so.

“Big supermarkets have resources, and shown strategic intent to invest heavily in click and collect. The short term goal for us to provide a better experience in store.”

FAMILY VALUES “We’re incredibly passionate about the business. That passion is evident in the second generation and we’ve navigated business succession.

“A big motivator is the relationship we have with our franchisees, employees, suppliers and community.”

The brand’s connection with the founders is crucial to the business.

“Without that connection I believe it would be just another business - not a family business. There might be an argument to say it might be bigger; it wouldn’t be the same.

“There’s been a lot of hard work and passion for such a long time in the business; it feels like I’m part of it, I’ve played a part in its growth and development.

“It felt right from day one, my first day in the bakery and I saw how easy it is to sell product.”

WHY FRANCHISING WORKS David looks back at the pandemicplagued winter months as validation of franchising as a model.

“Having local business owners on the ground close to customers, the community, was invaluable through Covid. The speed at which they were able to adapt to new processes, look after customers, and their teams, was important.

“We’ve seen franchising, rightly come in for a lot of scrutiny, doing more in the community than just selling product. That’s an imperative for business, not a nice to have.

“A lof of employees join the network because of that relationship, intangible and tangible." n

“It’s been a lot of fun, a lot of challenges, a lot of highs and lows. We’ve got to know a lot of wonderful people – suppliers, franchisees, staff. It’s been wonderful.

“The biggest thing we learned is that you can’t do everything yourself.

You have to let go and empower other people. That was an early lesson and it let us expand. If we waited for everything to be perfect we’d still be in the first store in Hawthorn.

“It’s a series of compromises but it’s not about being sloppy, it’s not ‘near enough is good enough’. You can still chase perfection.

“You have to be focused on the franchisees winning and growing, and staying satisfied. The objective is to keep as many franchisees performing as well as they can, running their business to the maximum capability. That is the most you can ask for.

“We’re a collection of families. We have two branches running it, Aaron in north America, Elise and David here.

“And most franchises are run by family units. It’s about keeping that feeling – it’s part of who we are, as a business. It’s worked for the last 40 years, and we’re confident for the future. It’s been one of the long term keys to our success; if it works, make it better, if it’s not working; stop doing it.

“In business, a lot of people try to reinvent the wheel but you have to work your way in a logical order. You can’t be a $500m business next year if you’re doing $50m this year. It won’t happen overnight – it might in tech, but not in the retail footprint. But you might get to $55m next year and it might be $500m in a few years.

“We’re very interested in the business, so often on holiday we’ll do a road trip and visit the bakeries and future sites. It’s been a fun thing to do.

“At breakfast we read yesterday’s sales figures and we get excited. One of us will click on the profit statements – we might spend an hour over breakfast looking at them.

“I haven’t retired, I’m just doing things differently.”

NOV/JAN 2020-2021 | 22 | WWW.FRANCHISEBUSINESS.COM.AU

LEADERSHIP

FRESH FACES IN AUSSIE FRANCHISING

Are you craving something new and exciting? Take a look at these three brands.

Courier Lite

Courier Lite is a brand new courier franchise option costing less than $10,000.

It might be new on the scene but it’s backed by a heavyweight business, longterm courier and logistics firm Aramex Australia (formerly Fastway Couriers).

Aramex has launched Courier Lite to support its existing Courier Franchisees in managing the e-commerce delivery boom without compromising customer service or delivery times.

The company reports an increase in delivery of 48 per cent, compared to this time last year.

The new franchise model is focused on high demand areas.

Franchisees only collect parcels from the home depot once a day, freeing up time for established couriers to nurture relationships with existing customers and cultivate new business.

Low start-up costs make this an easy entry-level opportunity, and could lead Courier Lite franchisees to later buy a full courier franchise, says CEO Peter Lipinski.

“Courier Lite is a delivery focused model that works as a first step for those considering becoming a successful courier, and is the perfect fit for any current contractors working within a logistics network,” he says.

“If you want the independence of running your own business and are a customer-focused person, Courier Lite provides the security of a franchise agreement, support and training from our team and the opportunity to join a globally recognised brand.”

Franchisees wear the same uniform and operate from the same vans as Aramex Courier Franchisees. A Courier Lite franchise will cost between $5000 and $10,000, depending on location.

Aramex Australia is a network of more than 800 independently owned and operated small businesses across Australia.

It offers international shipping through its membership of the global Aramex family to over 220 countries.

NOV/JAN 2020-2021 | 24 | WWW.FRANCHISEBUSINESS.COM.AU

THE FAMISHED WOLF

When hospitality professional Simon McNeilly opened the doors to his very own lunch bar, he had no idea where it would lead.

Simon spent time working in the Pilbara to raise funds to achieve his dream.

Four years on and the cafe Simon and his wife opened in an industrial area of Melbourne has turned into The Famished Wolf, a full-on burger brand with two outlets and a franchise model ready to grow.

"It just grew and grew. We started to open at night doing delivery through Menulog, had no lights or seats out the front.

But people were sitting in the dark outside eating the burgers."

Simon switched his attention to catering for these avid burger fans. He built an outdoor area, added some greenery, astro turf, lighting and got a liquor licence, and the customer base now includes everyone from young families to craft beer aficionados.

"Our point of difference as a burger shop is focusing on a wholesome family approach, providing good value for money."

Simon is in no doubt that it's the consistent quality of the food that brings back the customers.

"The first shop really taught me that no matter how good the fit-out and service are, it’s all about the food."

The mission at the burger business is that you will “Never leave famished from The Famished Wolf" says Simon.

A standard Wolf burger with bacon, egg, caramelised onion, cheese, lettuce, tomato and Wolf sauce costs $13. Packing a meaty punch, the Dirty Double is $16.

Burgers are freshly pressed in store and all dishes freshly prepared.

"It's great for teenagers, for grandparents. It's a bright store where you can have a beer or a quick snack. We’re not trying to be a hipster store but make it a cool environment for everyone. " The original converted lunch bar is in Braeside, south east Melbourne; the second store opened in Patterson Lakes two years ago.

The Patterson Lakes outlet exceeded the first store's sales very quickly, and Simon admits the lockdown has been very good for business for both stores.

"Everyone has been looking for takeaway. We've had week on week growth on delivery, high repeat customers. I believe those repeat customers will turn into dine-in customers and remain loyal. It's been an opportunity to showcase [the brand] to so many new people."

He has purposefully structured the business to be profitable around the costs of third party delivery. "That’s where the future is, you need to make your business work around it, you have to be the best at it," he says.

Franchisees will be owner-operators, setting up shop in their own neighbourhood and engaging with local community.

"I want people to make lots of money for themselves, being their own boss, making their own decisions, excited to go to work."

The Famished Wolf franchise model has design plans for stores of 60, 90 and 120sqm but can cater for footprints as small as 45sqm and as large as 150 sqm.

By the end of 2021 the goal is to have at least two to three more outlets across Melbourne. u

NOV/JAN 2020-2021 | 25 | WWW.FRANCHISEBUSINESS.COM.AU

LEADERSHIP

Snapology

Are you ready to change the world? An educational franchise that puts practical learning through play at the heart of its program has launched in Australia.

Snapology has been a success in the US and around the world, and now Usman Khan, master franchisor for Australia and New Zealand, hopes to replicate its performance DownUnder.

"We’re looking at the education boom around STEM [science, technology, engineering, maths], a model of education changing around the world," Khan says.

He believes the ever-increasing changes to the job scene make this kind of learning vital as it "prepares kids for the world of tomorrow".

Critical thinking, creativity, teamwork and collaboration are crucial attributes developed by a Snapology program, which can be delivered in schools, at pre-school, or as special events.

The goals are to provide assistance to schools, he says.

"Schools are left to themselves to do robotics or engineering and we’ve found with our discussions with principals, they have too much on their hands already. The curriculum of play-based learning is a big investment."

And that's where Snapology steps in.

"This is a flexible model. We work with some schools during the day where we substitute the science for a Snapology class. It can also be an after-school activity.

"However it's not limited to schools - we run childcare, vacation programs, some programs for pre-school."

There are also parents nights out, play groups and birthday parties in the mix.

Experience overseas shows that franchisees love the flexibility of the program choices.

There's flexibility in the business models available too. A start-up franchise which is a low-cost mobile business can lead to a Mobile Plus option which includes a bricks and mortar space, the Discovery Centre. A new model launched in 2019, in the US and overseas larger territories, is a mobile bus fitted out as a STEM lab.

Right now however Khan is looking for master franchisees to take one of five state-based regions and recruit franchisees themselves.

"We've mapped out the whole of Australia and are offering sub-master franchises for NSW/ACT, VIC/TAS, SA/ WA, QLD/NT, NZ. "Our strategy is to go into each region and find partners to develop each region, with targets," explains Khan.

He has opened up a Snapology Discover Centre in Sydney and is mapping curriculum to each region across Australia.

The sub-masters will need to consider three factors when setting franchise costs: the size of the population, the number of schools, and the median income. For example, the for NSW/ACT region with 14-15 territories costs around about $300,000. n

NOV/JAN 2020-2021 | 26 | WWW.FRANCHISEBUSINESS.COM.AU

LEADERSHIP

EXCITING PATH AHEAD

FOR RETAIL FAVOURITE Aussie icon Clark Rubber is under new ownership.

So what will this mean for the heritage brand?

By Sarah Stowe

C

lark Rubber is a retailer which has made a significant impact on Australian households with its pool, rubber and foam merchandise. And now it has a new owner, a group of three directors, ready to take the brand to the next level.

branded products.

“We could see our skill sets could be utilised within the business, giving it more bandwidth to grow and take it to the next stage of its lifecycle.”

CRG Operations comprises John Weste, Edward Plowman and Graeme Goldman and they come with experience in retail, international management, investment and funding.

At a time when retail is facing challenges from ecommerce and a shift in customer behaviours due to Covid-19, such experience may prove invaluable in steering the legacy chain into the future.

Why did the group buy Clark Rubber? For starters, it’s an iconic brand with a proven track record, says Graeme Goldman, an entrepreneur with more than 25 years of global corporate and business experience.

Goldman has a diverse commercial background incorporating wholesale, retail, distribution, supply chain, logistics and

Edward Plowman, who has spent more than 20 years in the debt and equity capital markets, says the retailer has shown it can stand up in testing times such as the pandemic. But it also has gaps in its product range that can be filled.

“Clark Rubber’s product mix is highly defensive in this environment but it’s a product mix that is uncorrelated,” he says. “We see a growth opportunity to add complementary bridge products for pools, rubber and foam.

We see there’s a whole bunch of opportunities that bridge the gaps.

“And there is so much fun to be had, it is 75 years old next year, and we can tap into having fun. We loved that about the brand. It is a really unique business.”

The future is about evolving the

FUN AND RESILIENCE IN RETAIL

business to offer more – more categories, more merchandise – that will appeal to customers from mums in their 30s through to grandparents, says Goldman.

“Chris Malcolm [former owner] had a certain focus which has been hugely successful.

We’re looking at it a bit differently where we believe there is the opportunity to widen ranges and add categories.”

And there’s a big commitment to the physical stores.

Plowman says “If you look at other parts of the world, compelling digital businesses have taken costs out of traditional retailing.

But if you look deeper, some investment is going the other way. Well-run digital retailers want to get back into bricks and mortar.”

Goldman highlights the continued presence of the Apple business in bricks and mortar stores as evidence that retail is about community.

“People still want to feel and touch. We’re social beings, we need to be interactive.

Some products need expert advice and we see it as a good blend,” says Goldman.

“If there’s one business that could have

NOV/JAN 2020-2021 | 28 | WWW.FRANCHISEBUSINESS.COM.AU

Key dates in the Clark Rubber story 1946

Clark Matting and Rubber was established

1951

The business was listed on the Australian Stock Exchange

1961

Business renamed Clark Rubber Stores

1982

The retailer was owned by the Adsteam Group

1994

Vita Pacific, a wholly-owned subsidiary of Pacific Dunlop, bought the brand name and logo, and stores were closed.

1995

Chris Malcolm licensed the name and re-opened the Clark Rubber store in Nunawading

1998

Through franchising the chain expanded to its 50th store

2000

Chris Malcolm bought the Clark Rubber brand from Pacific Dunlop

2003

Clark Rubber was named the Franchise Council of Australia’s Franchisor of the Year (‘Entry Capital Over $200,000’) Chris Malcolm was inducted into the Franchise Council of Australia’s Hall of Fame.

2006

Clark Rubber named Franchisor of the Year

2020

CRG Operations purchases Clark Rubber

dominated online it’s Apple. Why do they have retailers? They are one of the top brands in the world. Because you create a community. You go and see the Genius [tech support staff], you feel part of the team.

“Do we have an ability to take some of the best ideas? Yes, as part of the community. Owners come from the community, so we look to create more of a community environment.”

AN OMNI CHANNEL APPROACH The new owners will also be springboarding the online offering as part of a true omni channel approach which embraces the benefits of digital and continues to value the physical stores.

“We have a huge digital focus, but an amazing store footprint,” says Goldman.

“From our perspective we are very excited because online sales don’t compete with franchisees online. We need to be able to have our stores open, when and where and how customers want to shop.”

The ecommerce allows the chain to test

ideas quickly, he points out. “We can expand into complementary products that are relevant to our customer but not totally in a Clark Rubber store.”

As the new strategy is implemented, expect the digital and omni channel operations to be given a boost.

And even more exciting, there are plans for a fourth product offering that is as yet under wraps but set for a 2021 big reveal.

There will be a highly considered rollout program and the pool category and vans will be crucial to this.

The new owners loved the concept of the mobile van franchise, introduced as a separate agreement in 2019.

Goldman points out “The key for the franchise network is being a service provider, it’s a huge part of what we want to do.”

EXPANDING WITH NEW FRANCHISEES CEO Anthony Grice, ranked in the Top 30 Franchise Executives 2020, says the new

NOV/JAN 2020-2021 | 29 | WWW.FRANCHISEBUSINESS.COM.AU

The buyout CRG Operations purchased the business from Franchise Council of Australia Hall of Fame inductee Chris Malcolm, who has owned the retail chain since 2000.

CEO Anthony Grice and the executive team will continue to manage the business, and Chris Malcolm will stay on as an advisor with the brand for 12 months.

Working with the management team Edward Plowman says “Graeme and I are operational biased. We are going to be leveraging our backgrounds, leveraging those experiences, bandwidth and expertise and investment into the business, growing the franchisor business, and a compelling offer for franchisees. We’re here as operating buyers.

“Anthony is the leader, it’s his team and his staff. We’re here to add value, to be better performing financially but also for a more tangible, community base. We want to be in people’s homes.

“We think it’s going to work really well.

There is intergenerational awareness of the brand. It’s a successful profitable business with a high performing executive team.”

The third partner in the group, John Weste, brings extensive career management experience.

“We want him to give us the next level of corporate governance, to run this like a public company. That’s the rigour,” says Plowman. ownership and developments are leading the brand into an exciting time.

“We have a platform to grow, we get fresh blood into the brand,” he says.

“Franchisees can have a lifecyle, moving from a mobile to a small format store to a large outlet.”

It’s an ideal option for independent operators who are looking for security, particularly existing pool retailers.

“What will the future look like?

Significantly bigger, and different,” says Grice.

“Already this year the business has doubled the number of team members in our network development team, whose primary focus is on new franchisee recruitment.”

Grice adds, “We doubled in Covid – that’s a strong indication in our desire to grow.” n

LEADERSHIP

BURGER URGE AND THE

$100M TARGET New Burger Urge CEO Shawn Kerr reveals the business plan and the importance of doing the right thing.

By Sarah Stowe

B

urger Urge currently operates 29 restaurants across Queensland, New South Wales, Victoria and Northern Territory.

The chain was founded by brothers Sean and Colby Carthew in 2007. Sean has now stepped back from day-to-day management to focus on strategic growth and a mega $100m target.

ON BECOMING A $100M INTERNATIONAL BUSINESS IN FIVE YEARS The initial focus for Shawn Kerr will be to reinforce the current structure at Burger Urge and to provide guidance, support and leadership towards the establishment of achieving the group’s strategic direction.

“Our strategic direction is about setting yourself apart from the competition. It’s not a matter of being better at what you do – it’s a matter of being different at what you do,” says Shawn.

“Growth is already planned, now we are putting structure and accountability in place. Our goal is to have 70 stores by 2025, that’s 10 a year. We’ll start international growth in 2022-23.”

Next year will be all about researching the possibilities, and then in 2022 testing the waters, he says.

“It’s important not to overburden finances, to go in for six months then burn your costs. Right now growth is domestic, we don’t want the distraction of overseas.

It’s a measured approach.

“The business’s organisational structure has been reviewed and planned for the various stages of growth over the next five year period. The company is currently

appropriately resourced to achieve our strategic plan, and this will be a review periodically to align with our growth targets and commercial results,” he says.

“Additionally, our suppliers and distribution partners are being briefed towards our expansion plans and play an integral role in our success.

Who is Shawn Kerr?

ON SUSTAINABILITY “Burger Urge is aligned with the Good Food Revolution where together we want to create a new ‘norm’, a way of life that aims to eliminate negative impacts towards our world. We want our new ‘normal’ to consist of processes and practices of living that positively impact our environment, animal welfare and human health.

“The Good Food Revolution, through education to all, support to food businesses, as well as advocacy for governmental change, commits to eliminating negative impacts towards the environment, all aspects of animal food production and human health.”

At Burger Urge this will translate into appropriate ways to support the environment looking at elements such as plastic gloves, biodegradable ramekins, the recycling journey, free range chicken, food miles.

The business is investigating ways to make sites energy efficient, talking to landlords about adding solar panels, if appropriate, to a building.

“We want to ensure we are doing things ethically, to make it closer and local.”

Changes will be phased in over a number of years, and as the business grows internationally.

Shawn’s CV includes 32 years’ experience at big brand food retail companies including McDonald’s Australia and Coca-Cola Amatil. He most recently introduced Zambrero, Carl’s Jr. and Cinnabon to the Australian market in leadership start-up roles.

He’s now back in what he regards as his natural home – food franchising – after a year as GM at Battery World.

“It makes it more expensive to do business but that’s part of our ethical position. If more businesses get on board with the big decisions, corporate franchisees, retail, it makes it a lot cheaper.

“Sean thinks up high, he’s looking for the business to be different. My role is to get out-of-the-box thinking translated into results. The Good Food Revolution is about doing the right thing by people and the environment. It’s time we take a view on how we manage our lives and businesses.” n

NOV/JAN 2020-2021 | 30 | WWW.FRANCHISEBUSINESS.COM.AU

LEADERSHIP

HAPPY 18TH, GELATISSIMO! The Aussie gelato chain renowned for its quirky take on flavours is celebrating 18 years in business.

By Sarah Stowe

C

EO of the gelateria chain Filipe Barbosa talks to Inside Franchise Business about sustaining business while adopting change, taking a measured approach to growth, and expanding overseas.

HOW HAS THE BRAND MAINTAINED ITS POSITION IN THE MARKET GIVEN INCREASED COMPETITION? Flavour innovation has been a big part of maintaining our position in the market given the increased competition. Staying tuned to customer’s changing needs and trends has also been key. What a customer wants from their gelato experience today is not the same as it was 18 years ago and that’s not just in the flavours either, it encompasses in-store experiences too!

WHAT IS THE BIGGEST THREAT TO THE GELATISSIMO BRAND? I think the biggest threat for us is losing the enthusiasm for change. It’s the biggest threat to any brand.

To continue and stay in business successfully, one has to recognise that change is not an inconvenience, but rather a necessity.

Now, whether it be in the product mix, the store look and feel, the marketing messaging or any other aspect of a consumer facing business, a loss of excitement about the thought of change is one of the biggest threats in my eyes.

SO HOW DO YOU SUSTAIN EXCITEMENT ABOUT CHANGE WITHIN YOUR FRANCHISE TEAM? It’s not easy. It requires us to stay cognisant of the fact that without evolution the future may not be rosy.

It’s a discussion that we have to bring to the table with our internal teams periodically.

WHAT HAS BEEN THE GREATEST ACHIEVEMENT FOR THE GELATISSIMO BRAND? There have been several achievements we are proud of and most of them lie around the people involved in our brand. I get the most satisfaction from seeing the successes of independent franchisees when they carve out a name for themselves in their local community.

Others may talk about opening up in a new country, NOV/JAN 2020-2021 | 32 | WWW.FRANCHISEBUSINESS.COM.AU

GET THE SCOOP ON GELATISSIMO Founded in 2002 by Domenico and Marco Lopresti Began franchising in 2004 Now there are 43 stores nationwide Internationally there are 20+ stores There are three gelateria formats: shopfront, kiosk and cafe Gelaterias trade seven days a week Gelato is freshly made in-store with no artificial colours or flavours • There are more than 50 flavours in the range • Vegan-friendly, low-sugar and non-dairy options are on the menu • In 2020 Gelatissimo won four gold and two silver medals at the Australian Dairy Industry Awards 2020 • • • • • • •

FRANCHISEES: MICHELLE AND TERRY FORMOSA Stores: Wollongong / Shellharbour, NSW

“We have been a franchisee of Gelatissimo for two years and in that time have found the company very supportive and progressive. Gelatissimo’s business model allows for franchisees to be supported by a larger entity and recognised company whilst still having the freedom to make our own decisions to run our own small business.

“The organisation encourages creativity and is consultative with franchisees actively seeking feedback on product development, marketing campaigns and the branding change.

“The franchisee group is also very supportive of each other and we are in frequent contact with others sharing ideas and offering advice on experiences.”

NOV/JAN 2020-2021 | 33 | WWW.FRANCHISEBUSINESS.COM.AU

LEADERSHIP

which we have also done a bit of over the years, but for me, it’s about the experience Gelatissimo can bring to the local markets that excites me.

I also get great satisfaction in extending our product offering to be more health focused and providing options in the plant-based and low sugar ranges.

This has been something we have spent quite a bit of time developing as we aim to provide choices for all.

HOW HAS THE GELATISSIMO BRAND ALTERED ITS BUSINESS MODEL? The Gelatissimo business model hasn’t changed much from a retail perspective we just understand it better and know what works and doesn’t work for our business – whether that be in-store size, layout, rental costs etc.

Ultimately, we know what we are good at and that’s great tasting gelato with no artificial colours and flavours, made fresh in-store and we continue to offer this core proposition to our customers.

HAVE THERE BEEN ANY SIGNIFICANT CHANGES TO BACK END SUPPORT? From a human perspective, it’s business as usual with our support offering being focused on doing what the name suggests, support to our retail store and franchisees.

Where changes have come in is through technology, as we look to take advantage of new technologies for things like keeping track of communications, training and project management.

Tech innovations make the day to day side of things easier, more streamlined and efficient and thus allow people the breathing space to focus on activities that help drive sales rather than admin functions.

WHAT ARE GELATISSIMO'S EXPANSION PLANS? Slow and steady wins the race. Covid has for us, as it has for most, slowed growth temporarily, but the sun will continue to shine, and we will get back on the path to open a few more stores in Australia, mainly focusing on the east coast and regional Australia.

Right now our focus is squarely on helping our existing network get through this Covid period.

TELL US ABOUT INTERNATIONAL BUSINESS It’s certainly a part of the Gelatissimo brand that is important and ultimately, we want to be the world’s number one gelato brand and be able to share with other nations what we have been offering to Australian for 18 years.

We operate in several international markets, for example, Singapore, Philippines and India and will open in the UA market in the next 12 months.

Internationally, the US is our main focus. Stay tuned for what we are confident will be an opening in the not too distant future. n

FRANCHISEE: DAVID LIM

Stores: Rockhampton and Orion Springfield, QLD

David has worked with Gelatissimo for 13 years, starting out as a junior staff member at a Sydney store. In 2019 David took over the Orion Springfield store in Queensland.

“Gelatissimo maintains high product quality by making the gelato on site. The same recipe is given out nationally, but it is up to us to make our flavours fresh in-store daily.

We are very lucky to have a great product development team who create the flavours and test the quality.

“Being able to control the freshness, making in-house and as we need to also means that food wastage is less, in fact, our food wastage level is less than two per cent in the regulated environment.

“Gelatissimo’s marketing team helps every store push the products into the market and ensure local and national media know about our new flavour releases. Having a great product development team and marketing team means that we as franchisees really get to focus on staff training and customer service, which is just so core to our business.”

NOV/JAN 2020-2021 | 34 | WWW.FRANCHISEBUSINESS.COM.AU

Make a Difference!

Make a difference in the lives of children and their families, while creating a secure future for your own family.

More than 1.2 million children are enrolled and attend a childcare centre across Australia and this will continue to grow by over 25% until 2022.

Become part of our Global movement with over 80 Early learning & Preschool centres.

Changing the World, one Franchise at a Time.

Call 1300 646 324

au.mindchamps.org/franchise

LEADERSHIP

SHADES OF POSITIVITY Luminous yellow, natural light and the calm of nature’s greens... a fresh design approach at Stepz Fitness.

I

t's generally accepted that fitness boosts mental wellbeing and productivity. Now Stepz Fitness has taken the alignment one step further, introducing a holistic interior design across its wellness centres to stimulate psychological and physiological responses in gym users.

The goal is enhance the ability of Stepz patrons to exercise in a more peaceful, productive and positive state of mind.

Stepz Fitness franchisor Sam Waller says “That approach to holistic interiors allowed us to create a new design using more natural materials and calming interiors, which is not common in the health and fitness industry.”

The design includes using indoor plants, wooden materials and locating communal tables near the entry for a welcoming vibe.

Plants also serve to improve the gym's air quality.

NOV/JAN 2020-2021 | 36 | WWW.FRANCHISEBUSINESS.COM.AU

“We have created a new space that allows people to feel better when they’re walking in and focuses their minds on their workout and themselves, as opposed to worrying about what other people are thinking," said Waller.

Maximising the amount of natural light that filters into each room was an important element for the design team.

Sydney based clinical psychologist, Georgia MacNevin points to studies showing the benefits of natural environments.

“Natural materials in any workout environment can have a calming effect… [and] are great for increasing positivity and productivity," she says.

“These days, psychologists are prescribing outdoor activities like gardening and hiking to address a range of mental health issues.

“Being in open green spaces helps clear the mind and makes people feel happier or less stressed… [and] including that in a gym environment can be beneficial to their moods and general wellbeing.”

All New South Wales Stepz Fitness gyms are sporting the new look and it will be rolled out across Queensland outlets over the next 12 months.n

NOV/JAN 2020-2021 | 37 | WWW.FRANCHISEBUSINESS.COM.AU

LEADERSHIP

DOMINO’S YOUNG GUN At 21 Richard Morf is the pizza chain’s youngest franchisee.

Just 12 months in business and what a year!

“W

hen I first made the decision to become a franchisee, I knew it would be a challenge for someone my age, but my dream was to become a business owner and my passion was in pizza, so I jumped at the opportunity.”

Now, 12 months on, Richard is reflecting on everything he has achieved in his first year of business, and how much he’s grown both as a business owner, and person during this time.

“Looking back at the decision I made I am so grateful I chose this path. In the past year I have learnt so much about myself, what it takes to run a business, and how to be a good leader,” he says.

“The first month owning and operating Domino’s Ashburton certainly had its challenges. Although I had worked at Domino’s for more than four years at the time, there was still so much I had to learn

as a franchisee.

“But with the support and mentoring of Domino’s franchisee network, and a passionate, dedicated team, I was able to find my feet and focus on what we do best – making, baking and taking piping hot pizzas to customers.”

It wasn’t until March 2020 that Richard was presented with his biggest challenge yet… Covid-19.

“I never thought I would experience a challenge as great as a global pandemic in my first year of business… but in true Domino’s spirit, we have all come together and grown stronger and more resilient because of it.

“When Covid-19 first reached Australia, we had to quickly adapt and implement a number of operational changes and procedures to keep our team members and customers safe. At times, we were changing operations almost daily.

“But, despite these challenges, I’m so grateful that we were able to continue

safely operating and feeding the community. It’s a responsibility we took seriously – doing everything we could to provide support including donating more than 400 pizzas to those on the frontline working to keep us safe.

“I know the offer of a free, hot meal may not be much, but it was our way of bringing a smile to people’s faces in a time of extreme stress and uncertainty.”

Focused on growing Domino’s Ashburton over the next year, Richard Morf and his business partner Anastasya Cahaya say they have their sights set on opening a second store in 2021.

“Excitingly, if all goes well we’re looking to open a second store next year, with the goal of opening five stores in five years,” Anastasya says.

“In 10 years, we’d love to have a network of Domino’s stores in Melbourne.

We honestly love our career in pizza and are so excited to see what opportunities await us in the future.”

NOV/JAN 2020-2021 | 38 | WWW.FRANCHISEBUSINESS.COM.AU

12 LESSONS FROM 12 MONTHS OF GROWTH

privilege, especially during these challenging times. Remember to help people where you can and to give back to your local community.

1. BEING A LEADER IS ABOUT MORE THAN JUST MANAGING PEOPLE Look to inspire, motivate, develop and lead team members to success, because being a leader is about more than just managing your team’s workload, it’s about paving the way for others to succeed and become leaders in their own right.

8. DON’T SWEAT THE SMALL STUFF Things don’t always go as you expect them to. Sometimes you fail, sometimes you make mistakes, sometimes things go wrong (very wrong!) – but if you stress over every little thing then you won’t have time to focus on your main goals.

Take on challenges as they arise and don’t let them take away your focus.

2. BE PERSISTENT When you try something new, it won’t always work. But that’s ok! What’s important is that you persist, learn from your failures, and try again until you succeed. Because you will succeed!

9. MAINTAIN A GOOD WORK-LIFE BALANCE It’s important to maintain a good work-life balance to protect your physical, mental and emotional health. To be an effective leader you need to avoid burning out – as the saying goes, you can’t pour from an empty cup!

3. LEARN HOW TO PRIORITISE Some days it can feel like your ‘to do’ list never ends and that you can’t possibly tick everything off. To avoid feeling overwhelmed, make a shorter list with all of the day’s priorities. That way, you can manage your time more effectively, and get the most important things done first.

10. DON’T CUT CORNERS It can be tempting to cut corners or choose cheaper options to save money. However, it’s important to never cut costs that affect your customers, because a business can only survive if it has happy, satisfied customers that continue to return. Cutting costs that directly affect your customers reduces the chance of them receiving the same memorable experience they have grown to love. Protect that experience at all costs!

4. FOCUS ON EFFICIENCY Make sure to regularly stop and re-evaluate your business.

Is there something you can be doing better? What operational bottlenecks, roadblocks or speed bumps are you facing? Work to resolve these issues. Adopting this mindset will help to improve a number of things in your business and you’ll find yourself becoming more solutions-orientated in your thinking.

5. COMMUNICATION AND TEAMWORK ARE KEY Communication and teamwork go hand-in-hand. A team of people will produce a much better result than a group of people will, individually. But you need to communicate well to make that happen.

6. BE THE CUSTOMERS’ CHAMPION Customers are the most valuable asset in any business.

Because without customers, you don’t have a business! So make sure you work hard every day to never lose one. To achieve this goal, remember to always be the customers’ champion!

7. COMMUNITY IS EVERYTHING As a business owner, you have an incredible power. The power to give back. Be proud of this power because it is a

11. DON’T BE AFRAID TO ASK FOR HELP We’re all human, which means we all experience difficult and stressful times in our lives. Sometimes we feel like we need to deal with these issues on our own and without any support. Remember that asking for help isn’t a weakness and is often the best way to overcome a problem. Don’t be shy, reach out to your mentor or business partner for help when you need it!

12. LOOK AFTER YOURSELF Sometimes it is tempting to stay up late to get extra work done, fuelled by nothing but leftovers and cups of coffee!

But in the end, leading a lifestyle that doesn’t prioritise getting enough rest, or fuelling your body with healthy, nourishing food can reduce the quality of work you put in.

If you’re tired, and not operating at the best of your ability, then you can’t give 100 per cent to your team, your business or your customers. For everyone to ‘win’, you need to look after yourself. n

NOV/JAN 2020-2021 | 39 | WWW.FRANCHISEBUSINESS.COM.AU

LEADERSHIP

OFFICE POLITICS A new concession concept and a shift in consumer habits are boosting business for Cartridge World.

A

mini-concession concept unveiled by office supply chain Cartridge World at the beginning of the year is rolling out successfully across the country as the business reports a peak in online sales and deliveries.

“The new agency system targets newsagencies. They are in good locations and people are comfortable going in,” says David Smith, Cartridge World master franchisee for Queensland. “We provide on consignment so the outlay to the agency is almost zero.”

Already there are about 25 agency outlets open across New South Wales and Queensland.

Territories are based on regional newspaper delivery zones, Smith reveals. “Customers don’t travel more than 5km,” he says.

Profits are shared by the franchisee and the newsagency. The franchisee effectively becomes a business manager and can manage multiple agency licenses.

The concession model was tried before, Smith says, but it has now been simplified.

It’s one of two growth strategies the business has initiated to develop its footprint even further across Australia.

Cartridge World is also looking to

convert existing businesses to its brand.

The retailer has been one of the lucky businesses to benefit from the change in work and shopping patterns through the pandemic.

Smith says the retail chain has had a ‘bonanza’ with online sales and deliveries.

“Before this started we all thought Covid would be doom,” he says.

The reality proved otherwise, as work-from-home rules saw employees setting up a mirror image of their office which required printers and copiers that they didn’t transport from the workplace.

“A good example in March was that online ordering multiplied by five, that’s big dollars. In-store traffic has slowed but enquiries and deliveries have gone through the roof,” he explains. “Last time this happened was with the 2007-8 stimulus package.”

While Smith acknowledges this bonanza has a time limit, the figures are still looking good for the business, he says.

“The big bubble will burst, it will calm down. This year to last year though, even taking out Covid, we will be ahead of the curve.”

The pandemic crisis has also proved to be a shortcut in gaining new corporate and healthcare customers who would otherwise take hours of hard work to bring on board. n

NOV/JAN 2020-2021 | 40 | WWW.FRANCHISEBUSINESS.COM.AU

BE PART OF SOMETHING BIGGER QUEST FRANCHISING: A PROVEN & SUCCESSFUL BUSINESS FORMULA As Australasia’s largest apartment hotel operator, Quest is a brand business travellers have come to rely on for 30 years.

We’ve created a business format franchise model that removes some of the challenges to achieving success in small business, with the support of one of Australia’s most recognised brands.

Visit questfranchise.com.au or call 1800 809 913

LEADERSHIP

NOV/JAN 2020-2021 | 42 | WWW.FRANCHISEBUSINESS.COM.AU

A DAY IN THE LIFE OF

CHRIS LONGLEY Appliance Tagging Services’ franchise operations manager spills the beans.

HOW DO YOU START OFF YOUR DAY? My days start at around 6am, I will fire up the PC with a coffee and check emails, attending to anything urgent.

I follow that with a walk, then scan through my daily outlook tasks and attend to them accordingly.

WHAT’S A TYPICAL WORKING DAY? There is no such thing as a typical day! Every day is new with unique and rewarding challenges. With 53 franchisees, my interactions can be both reactive and solution based. There could be a technical issue, site issue, franchise renewal or sale, a franchisee wanting to employ a new technician, or providing additional training and advice on our heavily regulated industry.

Our support office team are in Melbourne and have been all working from home since mid-March.

The investment the business made two years ago in moving our entire business operations to the cloud has been invaluable. We simply could not have successfully transformed our entire operation to working remotely at such short notice with our legacy systems.

Calls and video conferencing to and from the support office can be made from anywhere using our current phone numbers.

Our business systems and technology have allowed our whole network and support office to continue working as an essential services provider during this challenging year.

Franchisees have commented that they would not know that we are all working from home and not the office which is a sign we are on the right track!

WHAT ARE THE RESPONSIBILITIES OF YOUR ROLE? I am in a newly created role that started in January 2020. As you can imagine I have spent more time at home than in the office with Covid-19 restrictions.

Keeping franchisees up to date over the shutdown periods has involved Covid-Safe plans, Safe Work Method Statements, templates for the Permitted Worker Scheme for Melbourne, along with advice on restrictions and border closures.

Ultimately my responsibilities are broadly franchise operations, from compliance to annual reviews, zone meetings, conference and franchise renewals, business planning, local area marketing, training, and new franchisee inductions.

Recently I took on franchisee recruitment. Enquiries have remained steady through this year and increased

in the past month. Fortunately, I have been working in corporate franchising for more than 15 years, so I have the skills and knowledge to handle most situations.

WHAT DO FRANCHISEES WANT FROM YOU? Everything! Support, solutions, fast turnaround, abolition of barriers that may prevent them from making money and possibly the most important, someone who listens to them and does not overpromise but delivers.

HOW OFTEN DO YOU INTERACT WITH OTHER MEMBERS OF THE SUPPORT TEAM AND WHY? Interaction with other team members is a daily occurrence.

As we manage all invoicing, scheduling, technology, and compliance for our franchisees, it is a full team effort to keep our franchisees in the field, testing and tagging every day.

WHAT ARE THE BIGGEST CHALLENGES IN THIS JOB? As with any franchisee facing role it is the negative franchisees who often provide the biggest challenges and absorb the most amount of time. It is always a feeling of great achievement when I can turn a franchisee around to follow the system and see the results.

WHAT DO YOU ENJOY MOST ABOUT THIS ROLE? Providing solutions and positive outcomes to challenging situations. Working through projects that provide constant improvement and profitability for our franchisees. It’s the culmination of small wins that keeps the smile on my face.

HOW DO YOU MEASURE SUCCESS? Happy profitable franchisees, and of course a happy franchisor.

WHAT DO YOU DO TO STAY MOTIVATED ON A DAILY BASIS? To stay motivated I plan my days, weeks and months in advance so I know what tasks I need to complete to stay on top of the workload.

While working from home I have been eating healthily and walking three times a day - this gives me time away from the screens to clear my head and refocus. If I am getting bogged down and unmotivated, I give one of our high performing franchisees a call and have a chat as I know the conversation will be positive and helps me reset.

Often, they will tell me about a great idea they have been using to improve their businessthat I can share with the whole franchise network. n

NOV/JAN 2020-2021 | 43 | WWW.FRANCHISEBUSINESS.COM.AU

SPOTLIGHT: FAST FOOD

FAST AND FURIOUS Delivery, takeaway and tech innovations lead the way in the ever-competitive fast food arena.

F

ast-food brands have switched up their strategies in line with limitations forced by the pandemic. So as Aussies have shifted their dining behaviours, savvy franchisors have sped up their innovation plans and implemented fresh ideas that will see them leading the charge in the new normal.

The most recent report* [April 2020] from global analysis firm IBISworld points to the significant impact of Covid-19 on this sector.

The report author James Philip Caldwell writes “Rising unemployment and a sharp decline in consumer sentiment due to fears regarding a significant economic downturn have encouraged consumers to limit their discretionary income spending in the

current year. These trends are expected to lead to a sharp downturn in demand for industry services.

“Consequently, industry revenue is forecast to decline by an estimated 16.1% in the current year.”

The good news is a revenue recovery is forecast over the next five years.

“Greater convenience and improved nutritional content of industry products are projected to drive this growth. Overall, industry revenue is forecast to rise at an annualised 3.1% over the five years through 2024-25, to an estimated $19.7 billion,” Caldwell writes.

While delivery plays a crucial role in hospitality - and proving a lifeline for businesses during lockdown - Caldwell believes there’s a downside; significant third party delivery commissions rein in the profit potential for fast food operators.

“Despite anticipated growth in industry revenue over the period, the industry's increasing reliance on online delivery platforms is projected to limit industry profitability growth,” he suggests.

Another constraint will be the increasing demanding for premium, healthy dining options which will challenge traditional fast food operators.

There will be more competition from cafes and restaurants, and supermarkets, who are seeing opportunities to offer healthy meal options in the convenience space previously occupied by takeaway chains.

One addition to the scene is the mobile food van, and these takeaway trucks are a growing trend, with convenience, flexibility and low cost operations particularly appealing to both franchisors and franchisees.

NOV/JAN 2020-2021 | 44 | WWW.FRANCHISEBUSINESS.COM.AU

Roll'd

INNOVATION AND ACCELERATION Burger chain The Famished Wolf, pizza franchise Bubba’s Pizza, Vietnamese chain Roll’d and global ice-cream brand BaskinRobbins share with Inside Franchise Business how innovation, delivery and Covid-19 have shaped business in 2020.

CASE STUDY: ROLL’D

The industry in 2020 $16.9bn revenue $507.9m profit 3.0% profit margin 25,527 businesses 183,000 employed $5.2bn wages

What’s affecting the sector?

Median age of the population Real household discretionary income Health consciousness Demand from restaurants * Fast Food and Takeaway Food Services in Australia H4512 April 2020

Inside Franchise Business spoke with Vietnamese fast-food chain Roll’d founder and CEO Bao Hoang about what's next for the fast-growing brand.

There needs to be a progression of ideas that ensures innovation follows the brand’s strategy, he says. In this instance, it’s about customer convenience.

“Convenience is always our biggest play long term," he says.

So the steps taken by Roll’d to improve the customer experience focus on ease of delivery.

“We were 95 per cent store sales and 5 per cent delivery. Now we are 70 per cent store and 30 per cent delivery which we always had planned. We just sped it up.”

Roll’d delivery has three mechanisms: Roll’d drivers, a white label partnership with a third party (the order goes directly through Roll’d), and delivery partners.

There’s the idea of offering a workplace deal which cuts out the delivery charges to the customer, if there’s a group order. Mid-pandemic hasn’t been the best time to trial this, so it’s on the back burner.

So too is the meal box concept because it’s being done by many other hospitality brands.

What is brand new and exciting for franchisees, and consumers, is the Roll'dRunner.

NOV/JAN 2020-2021 | 45 | WWW.FRANCHISEBUSINESS.COM.AU

It’s a food truck that cooks prepared meals outside your house. Consumers register their suburb online, a minimum numbers of orders are collated a couple of hours ahead of delivery time, and the truck is packed up with the freshly-prepared meals ready for a quick flash in the wok or oven and served hot to the householder.

"For us it's how food should be,” says Bao. it’s a new revenue option for franchisees to add into their business, he says.

“Because the truck comes from a local store, efficiencies are already there, you don't increase the staff - it's another angle of opportunity."

It’s a concept that’s just starting out, but Bao already plans to offer 10 Rolld’Runner opportunities to franchisees next year.

Longer term Bao has his heart set on leading the way in the skies with drone delivery for fast-food.

"We’re investing a fair bit of money further into our tech, our app, because I do keep saying, in about five years drone delivery will be a major part of this. Decongesting roads, making delivery more efficient and easier for the consumer. It will be something in our business in five years time. We would love to be leaders of that around the world.”

LOOKING TO THE REGIONS It’s no wonder times have been tough for fast-food CBD and airport stores. As Bao

u

SPOTLIGHT: FAST FOOD

Positive feedback

Roll'd has also seen its Net Promoter Score take off through the pandemic.

"For the head office team and franchisees NPS has skyrocketed through the pandemic. We’ve worked very hard. Franchisees went from +20 to +60, we've now dropped back to +30 in the last month.

"What we've also learned is, why would we ever take the foot off the pedal? It’s given us results."

explains, the business has seen significant drops in revenue in these normally high-traffic locations because of the shift to working from home.

“Perth and Brisbane stores are at 60 per cent, Sydney at 40 to 50 per cent, Melbourne just five to 10 per cent of where we should be.

"Most Sydney CBD outlets are closed that whole demographic will shift forever.

So we're working with franchisees to look at what opportunities there are, how they might be more creative about revenue.”

As a result more opportunities are opening up outside metro areas.

Roll'd has a focus on growing in regional Australia, the new predicted hot-spots for population growth as city dwellers seek a more relaxed future.

The chain has already this year added regional outlets in Elanora in Queensland, Royal Adelaide hospital in South Australia, Fremantle in Western Australia and Fyshwick in the ACT. “We’ve got stores in Cairns, the Central Coast, Ballarat... our supply and distribution partners have a strong national

Bubba Pizza

network. We work with delivery partners to assess different areas.

"Our new model is more conducive to regional, and we've traditionally done very well there, we're seen as a healthy premium option. I’ve made it clear we will look further at the opportunities, and the convenience play of deliveries," Bao says.

"Traditionally Roll'd has been very food-court, shopping-centres-based and we have to take a bit more control of customers coming to our business. Now we're looking at leasing high street locations that can provide a 50/50 in-store/ delivery service."

Bao has a target of 12 more stores for early 2021, adding to the eight additions open or set to open this year.

“Our goal next year is to have 30 new stores open. We work in financial years and would normally open more at the end of the financial year. This year might be different.”

Bao expects the new store owners to be a mix of existing and new franchisees.

“That’s always a good combination.

We are mindful of over-stretching franchisees,” he says.

It’s a point well-illustrated by the challenges of the pandemic and restricted cashflow this year.

"Early in the year we only achieved 20 per cent of last year's figures, now we are up to 80 per cent of last year. We've spent more marketing dollars than ever in this pandemic.

"Everything has been directed at a sale, providing extra opportunities to our customers," he says.

The innovations have helped stimulate the business and attract new franchise recruits. So far this year five new Roll'd stores have opened and there are another eight to come.

"People see us innovate and drive the business, and they want to join us."

Bao has also boosted head office staff numbers.

"We've employed more people across various departments - marketing, development, operations - making sure we can manage the business.”

BUBBA PIZZA

CEO Damian Hopper

“Business has been up and down. We’re roughly on the same sales as last year, for now we’re happy to have revenue.

“We’ve fast-tracked delivery - it was slowly going to be more prominent, but the pandemic has fast-tracked it. McDonald’s is delivering on Menulog and Uber Eats now so there are direct competitors to pizza.”

Damian says delivery will become the main income source with multiple devices at the fingertips of the younger generation to call up a store. In five years the tech generation of 20-25 year olds will have young families.

“Dominos was known for its delivery tracking app, but now every business has access. It puts you on a level playing field with them. We can all be on third party delivery and competing. u NOV/JAN 2020-2021 | 46 | WWW.FRANCHISEBUSINESS.COM.AU

SPOTLIGHT: FAST FOOD

“Brand and product is more important than ever. The human touch is going away - there are no touchpoints, your delivery drivers are contractors, they’re not even working for you.

“Product and brand have to do the talking - you can’t do it anymore. You have to stand out because everyone lands on aggregator sites. You need to have a strong brand, a product that travels well so customers return, or come back to your website,” he suggests.

Distinction in the brand today is definitely not about lowering prices, which in reality costs the business, he says.

“Try and be different in as many ways as you can. What we’re trying to do is tap into what pizza means, trying to understand the customer’s needs and play on that in a friendly and playful manner through marketing and branding.”

A quirky initiative right in the depths of the pandemic was to use face-to-face digital communication in deliveries to bring families together, with family or friends able to order for loved ones and through a video call virtually accompany the driver on the pizza delivery.

“We don’t have the big tech budgets, we’re channelling the heart of pizza,

getting together with family and friends.

It was too cold for a barbecue, no-one wants to cook, [ordering a pizza means] no rubbish, no cleaning up, everyone can have what they want. It’s a focus on bringing families together to have good times.”

There’s no longer a discussion about the importance of delivery in hospitality, but the debate about the value of third party delivery versus in-house services continues.

Damian says the pull of third party delivery is hard to avoid. What’s important as a business is to accept it, then learn how

to make the most of it.

“This is a new sort of ultra convenience, [the customers] paying someone to pick up the food for them. At store level all we do is prepare it and put in on the bench. That money goes straight to Uber.

“It’s third party for both franchisee and customer. It’s worth doing both, to have your own delivery, because if Uber goes to 40 per cent commission or wages go up, we need to have a few choices. It’s changing so rapidly.”

THE FAMISHED WOLF

Simon McNeilly, director of newly minted franchise The Famished Wolf is an experienced hospitality professional and a fan of third party delivery.

“Third party providers actually offer great value for money if used correctly.

The exposure to massive clientele through mainstream marketing and services provided are worth every cent,” he says.

Mid 2020 Simon halted in-house deliveries and focused on deliveries through third party apps - for cost reasons.

“Contrary to popular belief it is actually more cost effective. Employing five in-house drivers is very expensive and requires further marketing spend to ensure the customers will order directly from you as most are happy using the one app such as Uber for all their needs.

“For in-house drivers to be cost effective you must send two, three or even four deliveries in one time, this is at the detriment of the food, the wait times and most of all the customer’s satisfaction,” he suggests.

“In comparison Uber and Menulog will have a new driver for an individual order within minutes when needed. The food is hotter, fresher and quicker using third party providers.”

Simon says the expansion of the cafe’s delivery arm is due to five key elements: speed of delivery, quality and freshness of products, good packaging, value for money

The Famished Wolf

and great flavours.

When he launched the business he discovered quickly that takeaway was a crucial element, and extended the options to include delivery. And as he worked on the franchise model, delivery became an integral part of the costings structure.

“I would expect a small store even post-Covid restriction to be at least 50 per cent of turnover gained from pick up and delivery orders. For The Famished Wolf this is wonderful, the food is still perfect and the costs and margins remain similar due to the mitigated need for front of house staff.

“Innovations in the delivery sector for us revolve around building a personal connection with your customers without seeing them face to face and keeping them excited to click on our online store.

Loyalty programs, monthly specials and a constant review of better procedures is keeping our customers returning regularly.

“Clear communication with our third party providers and customers is also crucial should any problems occur, We live by "the customer is always right" motto and this is most definitely needed to build trust with our delivery customers.” u

NOV/JAN 2020-2021 | 48 | WWW.FRANCHISEBUSINESS.COM.AU

SPOTLIGHT: FAST FOOD

BASKIN-ROBBINS

Delivery, which began back in 2018, has made a difference to Baskin-Robbins’ business — and to customers wanting a little at-home reassurance courtesy of an ice-cream treat.

“We’ve turned ice-cream into a comfort food,” says Baskin-Robbins ’ GM Ben Flintoff.

Home delivery, so important during 2020, was given a big boost with an award-winning campaign in 2019 involving the Netflix launch of Stranger Things’ third season.

Along with massive engagement across Baskin-Robbins Australia’s digital platforms, the franchise’s delivery channel experienced a 22.6 per cent increase during the three-month campaign.

Products were sold instore and through a world-first ‘Scoops Ahoy’ virtual restaurant (a homage to the name of the ice cream parlour in the series), with ice cream delivered by Uber Eats.

Ben says maximising Baskin-Robbins ’s delivery channels through the campaign paved the way for the ice-cream chain to continue trading during the Covid-19 pandemic.

And it proved a benchmark for performance this year.

“We had to beat that period in 2020.

We were playing against an award-winning promotion in July, August, and a global pandemic, but we set our minds to beat that promotion. It was an amazing result.

“The network has benefited from the efforts we’ve put in for two years. We knew the online space had to be explored so in March I tossed out our marketing campaign and put all our efforts into digital.”

Learning to activate the digital channels was the challenge that paid off with just 10 per cent of sales in 2019 rocketing to 35

We hit our two-year target in two months.

We were ready and able to arm franchisees with resources.

per cent at the pandemic’s peak. It’s now dropped down to a respectable 25 per cent.

“We hit our two-year target in two months. We were ready and able to arm franchisees with resources.”

Management of the expectation cycle, Ben says, is crucial.

“Because we use third party aggregators, it’s an inherent mechanism. We’ve lent on their experiences. We’ve learned that guests would much rather wait 10 minutes knowing where something was, than wait five not knowing.“ However, delivery is still only one quarter of the Baskin-Robbins business which leaves the store experience as a vital element in this impulse category.

“There are ultimately any number of ways to spend discretionary dollars — we’re not just competing against other ice-cream brands and but cinema and entertainment firms too.”

Ben reports that suburban stores and highly dense residential areas are trading strongly through foot traffic and deliveries.

The challenge of 2020 has been to respond to ever-changing circumstances and restrictions on business and lifestyle. But rather than a pivot, it’s been a speed-up, says Ben. “This isn’t about change, it’s about accelerating what’s already coming.”

And for Baskin-Robbins that’s a move away from handling cash in stores.

“Our next franchise will be cashless, the cost of carrying cash is not sustainable.”

The shift will mean savings in rostering, savings in risk and time, and in security, as cash isn’t being handled and transferred to the bank.

Adaptation also comes in the form of store collaborations with iPlay, Burrito Bar and HOYTS. The latter now sports three kiosks — at Stafford in Brisbane, in the Entertainment Quarter in Sydney, and at Frankston, Victoria. Two new Queensland stores opened during Covid, one within a franchised Burrito Bar in Victoria Point.

“Our brand plays very nicely as a partner. But there are also areas we’ve been to which don’t justify an inline store.

Bankstown RSL is an example; it’s a kiosk in collaboration with another brand and it’s driving foot traffic to the location.

“Rent sharing and becoming careful with how you spend that rent dollar is something we’re at the front of. We don’t need 80sqm but we can build a kiosk of 18sqm.”

Innovation on this front allows the brand to take full advantage of the space it’s tenanting, he says. Whether a business has a lunch and dinner profile or breakfast and lunch day parts, BR can add significant value.

This won’t be a blanket approach to growing the business through collaborative ventures however, as Ben believes strongly in establishing a standalone footprint first.

Now the focus is on New South Wales, with an increase in the head count for the state, which has only eight outlets.

Five stores are slated to open before the end of 2020 — three in Western Australia, one more in New South Wales and one in Queensland.

“It’s a reflection of the trust in our brand — our enquiry level has increased.

Food feels safe and we all need to eat. I don’t know what 2021 will look like but we will open at least five outlets.” n

NOV/JAN 2020-2021 | 50 | WWW.FRANCHISEBUSINESS.COM.AU

Looking for a franchise business that rewards entrepreneurialism?

An opportunity that lets you run your business how you want to, with proven systems to support you? It's time to visit subway-franchise.com

SPOTLIGHT: HAIR AND BEAUTY

SALON SECRETS Two iconic Aussie brands share how they have stood up to the challenges of 2020, and reveal what’s next for their franchises.

J

ust Cuts, renowned for its no-appointment hair salons, is celebrating 30 years in business in 2020.

The brand, founded by hairdresser Denis McFadden who still leads the company, now stretches its reach beyond the 190 franchises in Australia with 34 overseas outlets.

Ella Baché is another Australian success story. Established

in Paris in 1936 by a French chemist, the skincare brand was brought to Australia in 1954 by Edith Hallas, the grandmother of today’s CEO, Pippa Hallas.

The brand ethos is a tailored approach for healthy skin.

Today there are more than 100 outlets across Australia.

Both businesses have adapted their models to overcome the challenges of 2020, as Just Cuts GM Amber Manning, and Ella Baché’s CEO Pippa Hallas, explain.

NOV/JAN 2020-2021 | 52 | WWW.FRANCHISEBUSINESS.COM.AU

JUST CUTS

Founded 1980 Term: 5-7 years Capital investment: $170,000-$250,000 IFB: WHAT HAVE BEEN THE BIGGEST CHALLENGES FOR THE BRAND, AND HOW WERE THEY OVERCOME? GM Amber Manning: Covid-19 presented a completely new challenge given the close contact involved in hairdressing.

We had a huge decision to make as a business to close or not to close in April for the safety of our owners and stylists across the country.

For the first time in 30 years we made the decision to close our salons for the safety of our teams. This was the hardest decision to make however the best for our business to ensure our stylists felt safe and supported in the workplace.

The next challenge was re-opening with staggered approaches across Tasmania and Victoria with cases popping up.

In 2021 Australia will have 10 new salons, New Zealand another five, and a further 20 in our fast-growing UK market.

IFB: WHAT SUPPORT WAS PUT IN PLACE FOR FRANCHISEES? AM: Our Covid protocols were implemented using our new Op Central online compliance platform. This was launched just before the pandemic hit and has been an amazing tool to integrate learning across our salons.

We instantly went virtual, implementing monthly Zoom owners’ meetings, weekly Franchise Advisory Council meetings at the height of the pandemic to make key decisions for our network.

Just Cuts launched an incentives platform for our franchisees so they received a commission for product sold online where they select their salon as a favourite salon.

We launched online gift vouchers so they could be used at a later date. We enhanced our online app and kiosk check-in terminals for contactless payment.

On Op Central, we can also send out audits and tasks that our franchisees or salon team leaders complete online, and they can upload responses and images we can review.

The support team was able to get visual confirmation that our salons were correctly displaying our Covid-19 marketing material including social distancing floor decals, ‘do not sit here’ cards in our waiting areas and salon shop front TVs showing our health and safety videos.

Our multi-salon franchisees were particularly enthusiastic with the enhanced salon visibility arising from the change as some can’t travel to visit their salons in person.

Op Central also has a news section, so any important announcements are sent to all owners or team leaders instantly which they sign off on and share within their salon teams.

NOV/JAN 2020-2021 | 53 | WWW.FRANCHISEBUSINESS.COM.AU

The true benefit from Op Central is having our franchisees, salon teams and clients all staying safe in every one of our salons during Covid-19.

The Hivemind App indicates information such as wait times, stylist arrival times and break times which helps franchisees run their salons. We also have a salon busy period report which assists them with rostering.

Franchisees can access an extensive amount of information across the network daily via our ‘Just Online’ point of sale (POS). The owners dashboard allows easy tracking of wait times across salons, timesheets for staff, daily sales, percentages and their highest performing stylists.

This data can be benchmarked and tracked anytime based on our key KPIs: average spend, cut rate, and male / female clients. We report on this quarterly to owners.

Head office conducts regular feedback surveys and uses a system called Text Magic for instant voting/feedback from franchisees.

We rely on our Franchise Advisory Council members to help gauge the current levels of customer satisfaction and engagement for owners. Industry surveys are conducted regularly to see where the group sits overall in franchising and our franchisee satisfaction levels.

To reward high performing salon team members we use ‘WOW pins’ which are given to stylists for every compliment they get, and a diamanté pin for every 10 compliments. We also include a signed letter from our CEO with the pins.

IFB: HOW IS THE BUSINESS FARING NOW? AM: Our network is currently sitting 20 to 30 per cent down depending on the area, for instance Victoria and Auckland closures. Luckily for us you cannot get your haircut online and we have contactless check-in, along with masks available for clients on request, which reassures potential clients.

IFB: WHAT KEY LESSONS HAVE BEEN LEARNED THAT WILL CHANGE FUTURE OPERATIONS? AM: We have a three-year strategic plan and an annual business plan which is developed by our Academy Team and CEO. We have learned that online training and induction are crucial; even when we go back to a normal world virtual will still play a key part in our business.

Just Cuts has opened three salons during lockdown and been able to achieve this u

SPOTLIGHT: HAIR AND BEAUTY virtually through existing local franchisee and stylists’ support.

Our operations model has changed to encourage greater engagement with our hairdressers. We are running trivia nights and ‘owner on the couch’ topic sessions have been increased from quarterly to monthly. I believe this will be something that will remain in the business.

Our POS system collects data daily from every salon. We combine this information with Sprout Social reporting to review and update our content strategy by country, state and salon. This is then compared with data from our Review Trackers consumer sentiment monitoring to guide the development of our short and long term strategies.

Research includes reviewing the most recent IBISworld retailing reports and hair and beauty industry reports to identify general trends, and grow our JUSTICE Professional product range.

The annual plan includes a budget which is presented at the start of the new financial year. Every department comes together to review results from the previous year and share input on how the plan and budget will be achieved and the lessons learned.

To monitor progress, we have weekly and monthly meetings to review salon performance, and we provide additional support to any struggling salons.

Franchisees are involved in setting and evaluating our business goals through formal quarterly and monthly meetings and informal face to face planning sessions.

We also regularly conduct informal and formal surveys with both stylists and franchisees to gain insights into training, operational and marketing needs.

Franchisees can explore the impact of business planning decisions on their businesses through our Discovery Days.

We created an interactive Google Map with every shopping centre in Australia. All centres are categorised by size and location, and we can directly compare foot traffic estimates, floor plans and major anchor tenants.

This bird’s eye view guarantees informed choices on new salon sites and the future direction of the business IFB: LOOKING AHEAD, WHAT GROWTH DO YOU PREDICT AND WHAT WILL IT LOOK LIKE? AM: In 2021 Australia will have 10 new salons, New Zealand another five, and a further 20 in our fast-growing UK market.

We are adapting to where people are spending their time, and that means CBD metro will not be as much of a focus now that people and workers are back in their local community. In saying that if social distancing remains we may need to look at larger salons so we can have more clients in a day.

We base new salon location feasibility around equations that consider salon square meterage, centre foot traffic and centre type.

Franchisees will continue to be Mum and Dad investors and existing hairdressers turned salon owners.

Given over half of our franchisees are multi-salon owners, we also let them know about new opportunities in case they may be interested in expanding their franchise portfolio. We also offer first right of refusal to salon owners closest to the new site based on set criteria.

ELLA BACHÉ

Founded: 1936 Paris (Australian company founded 1954) Term: 15 years (5 years plus two options to renew) Capital investment: $150,000 IFB: WHAT HAVE BEEN THE BIGGEST CHALLENGES FOR THE BRAND, AND HOW WERE THEY OVERCOME? CEO Pippa Hallas: March 26 2020, was the first time in our history that our salons were closed for extended periods and that was a very challenging time for the network, particularly the Victorian salons who are still closed as a result of the second lockdown.

Having anticipated this closure we created a Virtual Salon and Virtual Skin Consult platform which enabled salons to continue to connect with their clients and sell products online. It was a massive learning curve for many who overnight had to step into their social and digital channels and learn how to operate a digital business for the first time.

The Virtual Salon model developed for our franchisees included a margin share of all product sales throughout this period.

IFB: WHAT SUPPORT WAS PUT IN PLACE FOR FRANCHISEES? PH: Education for our customers, franchisees and therapists has been more

important than ever; 2020 is not a time to sell, it’s a time to give, and sharing our knowledge has been an amazing opportunity during these times.

In addition to the launch of our Virtual Salon program and Virtual Skin Consults, we introduced national digital training and workshops for all digital initiatives, product schools and client connections throughout Covid-19.

We used this time with our franchisees and their teams to educate them on new skills in business, social media, retailing and hygiene as well as skin and product knowledge. This helped them stay positive and motivated and they acquired new knowledge that they could implement both in their digital channels and their salons - when they re-opened.

It was a fantastic way to drive engagement while ensuring everyone had a focus and stayed positive. The federal government initiatives especially JobKeeper have been critical for our salon businesses that have been impacted from lockdowns during this time. u NOV/JAN 2020-2021 | 54 | WWW.FRANCHISEBUSINESS.COM.AU

BlueRock knows franchise finance.

Successful franchises rely on investment in a strong brand and expansion in a competitive market. This requires funding and we know how to get it.

Get cost-effective, time-efficient and innovative advice on every aspect of your franchise system.

BLUEROCK.COM.AU/INDUSTRIES/FRANCHISE

SPOTLIGHT: HAIR AND BEAUTY IFB: HOW IS THE BUSINESS FARING NOW? PH: The Salon franchise businesses have been performing well since re-opening, except of course in Victoria. We have acquired new customers. We have introduced new processes and procedures to ensure we continue to maintain the most hygienic standards so our clients feel safe and serviced.

While people haven’t been wearing as much makeup or fragrance at home, the demand for skincare and beauty services has been strong with the home bathroom becoming a wellness centre during lockdown with days spent on Zoom calls.

Clients are now looking for that high performance facial treatment such as LED, IPL, Micro to get instant results while experiencing some pampering too. Our therapists have close relationships with their clients and maintaining the connection through their digital channels while the salons were closed has driven continuity, a sense of community and deeper connections.

The backend of the business has also had to pivot as well. We manufacture our products in Sydney which has assisted in building resilience against global supply chain issues.

We manufacture our products in Sydney which has assisted in building resilience against global supply chain issues

IFB: WHAT KEY LESSONS HAVE BEEN LEARNED THAT WILL CHANGE FUTURE OPERATIONS? PH: Customers have become a lot more digitally savvy this year which has accelerated the rate of change across the business and fast-tracked technology both in store and online.

The customer experience needs to be seamless for connecting with the brand, buying or booking treatments.

So we are continuing to enhance our salon digital offerings through their Virtual Salons and encouraging an ongoing social media presence to continue to educate and give to our clients.

Communicating and connecting with clients is more important than ever and our focus is finding new and innovative ways to do that.

The retail industry has been going through a period of transition for many years now and Covid-19 has accelerated this with the customer experience on and offline being more important than ever before.

The impact of the pandemic on consumer behaviour and skin needs has meant new skincare product and treatment opportunities so our research and development teams have also pivoted to meet these needs.

PARTNER WITH A LEGAL PROFESSIONAL WITH COMMERCIAL ACUMEN Franchising is an important decision for both franchisors and franchisees.

We are on hand to provide strategic, practical solutions to help you plan and achieve your short and long term goals.

Unlike other legal firms which provide legal advice piecemeal, we look at the whole picture, help you with risk management, compliance requirements to eliminate unwanted surprises.

Our principal has valuable in-house experience, has advised businesses for more than 25 years and understands first hand the many challenges faced by business owners.

Contact Christine Lau on (03) 9653 9203 or via email at Christine@laulegal.consulting for a confidential discussion to start or grow your business

NOV/JAN 2020-2021 | 56 | WWW.FRANCHISEBUSINESS.COM.AU

IFB: LOOKING AHEAD, WHAT GROWTH DO YOU PREDICT AND WHAT WILL IT LOOK LIKE? PH: We are optimistic that the federal budget schemes will drive a sense of consumer confidence that is needed to ensure all Australian businesses can relaunch in a new way following the pandemic.

The skin and beauty industry has shown a lot of resilience and will continue to do so, driven by people’s desires to look after themselves and their skin health. The franchise salons have a strong connection with their local communities and many people are wanting to support local businesses right now which will drive growth into the future for our open and trading salons.

Our hearts continue to go out to those in Victoria who continue to do it tough, through no fault of their own. We have seen the support and understanding of many landlords through this time and this relationship is critical moving into the future for all retailers’ success, especially where foot traffic has not returned to pre-Covid-19 levels.

IFB: HOW MANY OUTLETS DO YOU EXPECT TO OPEN IN 2021 AND WHERE WILL THESE BE? PH: All businesses are dealing with a lot of

uncertainty as we head into 2021 with the economic outlook being impacted by the health crisis and the timing of a vaccine.

We have different scenario plans in place depending on the outcomes. Western Australia, Queensland and New South Wales, particularly in suburban or regional locations, are our strongest performing states currently and this opens up the possibility for new salons or acquisition of non-Ella Baché Salons that do not make it through these challenging times.

We do expect that the CBD areas will be challenged until the corporate customers return to the cities.

We have launched a new alternative franchise model and agreement which allows for new franchisees to partner with us with our franchise system, brand, treatments, products and IP without any royalties.

We believe the introduction of this new lower cost model will enable people who have a passion for the brand and industry to use this time to follow their dreams, open their own salon and partner with us.

IFB: WILL WE SEE ANY CHANGES TO STORES? PH: Our salons have long been focused on timeless design with a modern approach.

We are focusing on digital screens in the

windows as well as high performance treatments including LED, IPL, Micro which offer a low-touch facial alternative for clients. The introduction of technology such as online check in and bookings, and cashless payment, is a key focus now and into the future.

We are also constantly making improvements to the size of the salons to ensure productivity per square metre is high.

IFB: ARE FRANCHISEES LIKELY TO BE MULTI-UNIT FRANCHISEES EXPANDING, OR BRAND NEW FRANCHISE BUYERS? PH: Predominately we have seen new franchise buyers coming into the network – whether that be through lead generation or as referrals from our existing franchisees.

Many people have experienced enormous change in their careers and we are finding the last month has seen increased enquires driven by people seeking change and exploring an opportunity to own their own business in an industry they are passionate about that has demonstrated resilience. n

Looking to cut costs?

Start by saving some dollars on business insurance.

NOW EARN QANTAS POINTS for every dollar spent on a new small business insurance policy*

Compare FREE multiple quotes online in minutes

Insure your business & receive your documents instantly

Compare with Australia’s Small Business Insurance Specialist

Save yourself time and money

bizcover.com.au

1300 849 072

*A business must be a Qantas Business Rewards Member to earn Qantas Points for their business. A one-off join fee of $89.50 including GST normally applies, however this will be waived for BizCover customers. Membership and Qantas Points are subject to Qantas Business Rewards Terms and Conditions. BizCover customers will earn 1 Qantas Point for every $1 spent on all new business insurance policies, up to a maximum of 10,000 points per policy. Qantas Points for business are offered under the BizCover Terms and Conditions. Any claims in relation to Qantas Points under this offer must be made directly to BizCover. Qantas Points will be credited to the Members’ Business Rewards account within 100 days of purchase. A customer is only eligible to receive points if they have purchased directly through BizCover (not through a referral or white label partner) and not used any discount or promotional code in making the purchase.

The information provided is general only and should not be relied upon as advice. No guarantees are provided as to pricing for individual risks. BizCover™ Pty Ltd (ABN 68 127 707 975; AFSL 501769). © 2020 BizCover. BC1576

NOV/JAN 2020-2021 | 57 | WWW.FRANCHISEBUSINESS.COM.AU

Advertorial

Courier Industry at the forefront of E-Commerce growth

A

ustralia’s parcel market is destined to grow to more than 1 billion parcels a year by 2021. The parcel delivery market is seeing an exponential growth backed by the ease of shipping, delivery, and tracking parcels domestic and internationally. Australians receive an average of 34 parcels each year, driven by a rapid increase in e-commerce sales based on figures shown in 2017.

The e-commerce revolution in Australia has contributed significantly to the strength of the parcel shipping market. The seamless experience provided by many online marketplaces has driven consumers’ expectations for convenience, price and availability of products from around the world, made possible through global e-commerce.

The courier pick-up and delivery services market in Australia is an efficient and significantly well-developed industry. The significant players, whilst prominent in the marketplace, do not hold substantial market share as an estimated 12,000 other businesses are operating within the subsector.

The Australian market bears vast potential.

It served a population of 26.7 million as of 2017. Additionally, it helps several businesses that operate extensively. Few of such industries include electronic appliances, life sciences, food and beverage, and others (such as automotive, mining, etc.).

Key parameters that affect the demand for the industry in the B2B services sector include real-time monitoring returns management, control facilities, delivery guarantee, shorter lead time, and safety features.

Small businesses are increasingly looking for faster, courier delivery services. This factor serves as a critical driver for customer satisfaction.

External factors that influence this sector include the B2B services dependent on communication and Information, increased demand from general warehousing, the motor vehicle price index, household consumption expenditure, and the growing demand from online shopping.

The strong growth of the e-commerce industry in Australia is leading to increasing in the volumes of parcels. The development is leading to a rise in competition among the delivery companies, capturing the growth of the market.

The bargaining power is shifting towards the consumers owing to the strong growth in e-commerce sales. The demand for same-day delivery is also growing, leading to a trend of companies integrating the last-mile delivery services to their existing business portfolio.

There has been massive growth due to online sales, and courier firms are expanding their services and improving infrastructure.

The internet and smartphone penetration combined with a growing young population are the contributing factors for growth in e-commerce businesses. In 2015, less than 10% of Australians used a smartphone to make an online purchase, whereas, in 2017, one in five online purchases were made from a mobile device. Also, the people between the age of 18 to 36 represent more than 25% of the total population in the country.

The growth in the manufacturing sector also boosts the increase in the domestic express and parcel delivery volumes. The manufacturing industry in Australia returned to growth in early 2019 after stalling late last year. For the food and beverages manufacturers, the conditions remain more favourable than those in other sectors.

Australia’s courier market is highly competitive, with the presence of major international players. Australia’s market presents opportunities for growth during the forecast period, which is expected to drive market competition further.

Ozwide Couriers Pty Ltd t/a Megasave Couriers is on the forefront of innovation and people management, with everything the business does, placing the franchisee ahead of its competitors when it comes to remunerating, whilst providing proprietary coded scanning software with auto routing features to help save time that can be utilised on smartphones as an application.

Ozwide Couriers Pty Ltd t/a Megasave Couriers is a 100% Family Australian owned company taking on the multi-internationals.

To enquire further about our exclusive opportunities and join the revolution of a massively growing sector, call us on 13 63 42 or enquire further through our website https://megasave.live/franchise. **Information referenced in parts, from IBISWorld, Statistica, Mordor Intelligence**

SPOTLIGHT: POOLS

D L R O W R E T WA Pool care and cleaning is an essential part of Australian life. So why not dive in?

POOLWERX

“People are looking to build activities into their household, or upgrade, to keep the family unit thriving.”

Families have invested financial capital in the home, and for Poolwerx that’s meant a sharp rise in spa sales and heating equipment, he adds.

For more than 25 years, Poolwerx has been helping people flourish in business.

The multi-award winning brand has more than 150 retail outlets and 400 mobile vans in 500 territories across the globe.

It’s a brand that continues to expand and is focused on first class customer service, leading quality products, pool-cleaning knowledge and multiple-income-streams.

Technology and innovation, and marketing, are key areas of investment for Poolwerx right now.

The technology will maximise profitability, provide better levels of benchmarking, and improve efficiency of tasks.

Seven stores are opening between July and December and the pace is expected to continue given the amount of leads and conversations with potential franchisees.

TEST THE WATERS

JIM’S POOL CARE MOBILE

A

lways a popular addition to a home, the pool has become an even greater attraction throughout Covid, says Poolwerx chief operating officer Nic Brill.

Before you wade into a business opportunity, dip your toes into all the brands in the market to see how their offers compare and which culture and business model best suits you.

Here are three franchise brands for you to start with.

Each of these has a dedicated support team, each has ongoing training and business development, each has branding that gets noticed.

SWIMART

Swimart is part of the international business Waterco. It was established in 1983 as a way to give Aussies easy access to first-class filtration products.

The business model is founded on research, development and implementation of award-winning products and services.

Today there are 75 franchise outlets across Australia and New Zealand, and more than 250 mobile service vans.

Strong marketing campaigns are part of the support on offer - the brand has undergone which informs all areas of the business including instore design and layout, staff training, website and social media, category treatments, and customer interaction Franchisees start their journey with a 23-day intensive training program and continue their learning through the online education program, the Swimart Academy.

Jim’s is one of the most recognised names in Australia. In fact the group claims brand recognition of 94 per cent of Australian adults.

Add together brand awareness, franchisor support and proven systems, and the business has a great starting point.

Franchisees sign up to a 10-year term, and there is no renewal fee.

The business model has been operating since 2003 and there are more than 109 franchisees in pool group.

“We have experienced a huge increase in enquiries from people looking to change direction in their working lives and wanting to learn more about what our Pool Care franchise has to offer,” says franchisor Brett Blair. n

NOV/JAN 2020-2021 | 59 | WWW.FRANCHISEBUSINESS.COM.AU

LEADERSHIP SPOTLIGHT: BUDGET FRANCHISES

BUDGET BUYS FOR PROFESSIONALS Get set for business with these cost-conscious opportunities.

F

our franchises that you can snap up for less than $50,000 capital investment and take the first step to business ownership - while utilising your career experience.

COMPUTER TROUBLESHOOTERS

EXPENSE REDUCTION ANALYSTS

CAPITAL INVESTMENT: $22,700 +GST SKILLS: IT

CAPITAL INVESTMENT: $29,900 SKILLS: 15+ YEARS BUSINESS EXPERIENCE

You’ll need to bring a passion for all things IT to this business and certified skills are an advantage.

The business has been franchising for 23 years, delivering tech support for Aussies at home and work through a low-cost, business model. Franchisee services include data back up services, repairs, ongoing management.

Franchisees can expect extensive initial training, technology tools, joint marketing, and ongoing support.

The term is 10 years, with an option to renew.

The upfront fee includes a $4,000 spend on marketing your new business from day one.

Computer Troubleshooters has franchise opportunities available around the country.

Proven systems, back up support and training programs drive this professional services franchise, operating since 1992.

Expense Reduction Analysts (ERA) provides business strategy, supply chain and cost management expertise on an international platform. Franchisees help clients optimise their overhead expenditure and create growth opportunities using a ‘no savings, no fees’ business model.

The business is about more than accounting, it’s management consultancy. So franchisees in the network are skilled in sales and marketing, project management, engineering, banking, finance, general management and purchasing.

FIRST CLASS ACCOUNTS

FRONTLINE RECRUITMENT

CAPITAL INVESTMENT: $45,000 SKILLS: BASIC BOOKKEEPING

CAPITAL INVESTMENT: $45,000+ SKILLS: PROFESSIONAL BACKGROUND

As a bookkeeping franchisee with First Class Accounts, you’ll bring a strong desire to help small businesses free up their time by assisting with their record keeping, GST and BAS, and timely financial reporting.

Franchisees are armed with nine weeks induction training as well as proven business systems and tools from First Class partners MYOB, Xero, Intuit QuickBooks Online and Reckon.

Operating since 2000 the franchise now has 180 franchisees across the country, and there are opportunities Australia-wide.

A franchise term is five years, with three options to renew.

The First Class Financial Group is a registered tax agent.

Franchise agencies provide specialist recruitment services across a number of sectors including retail, hospitality, construction, health, education, and tech and IT. The Frontline Recruitment Group has been operating since 1995, and franchising for 20 years. This year the business was acquired by US firm Express Employment Professionals which brings extensive expertise, resources and buying power to the ANZ operation.

As a franchisee you’ll have access to an extensive database of more than 80,000 clients with 1.2 million candidates on the books.

No recruitment experience is required, but franchisees need to bring a high energy, hands-on, sales and client focused approach.

There are more than 30 territories available across Australia and New Zealand right now.

NOV/JAN 2020-2021 | 60 | WWW.FRANCHISEBUSINESS.COM.AU

Your are the owner, not the Tutor 1-to-1 tutoring in the family home All ages and subjects National curriculum support Exam preparation Virtual tutoring also available

SPECIAL FEATURE ON FITNESS

SO YOU WANT TO BUY A FITNESS FRANCHISE? Check out these practical expert tips to give yourself a head start.

D

id you know you don’t have to be superfit to run a gym franchise? Of course an interest and passion for physical activity is crucial, but as Chris Caldwell, CEO of Lift Brands (Snap Fitness and 9Round) points out, many franchisees find their initial passion and interest grows once they are in the business helping members achieve their goals.

“As a club owner, you’re not expected to be running classes or training members (you can if you want to) but you do need to be able to lead a team of fitness professionals, motivate and engage with your members and share in the joys of regular exercise.”

Nicole Noye, who heads up the Collective Wellness Group (Anytime Fitness, Xtend Barre) agrees.

“A fitness franchise is a chance to get involved in a positive, life-changing industry. Our franchisees not only share our passion for bringing fitness to Australians but are committed to impacting their health and wellbeing by supporting, nurturing and inspiring Australians to enjoy a fitter, healthier future. Not many other franchise systems can say they make this

kind of an impact.”

Fitness has become a highly competitive marketplace with an incredibly diverse range of brands - from the big box to the 24/7 concept; from class-based studios to outdoor training; from functional fitness to wellbeing.

Like any franchise, a fitness business can be a success if all the various parts fit together. It’s about the strength of the brand, its growth potential in the location, and ensuring it remains a viable option after set-up costs and ongoing expenses are taken into account.

When it comes to choosing the brand and the location, there are plenty of things to consider.

Chris Caldwell suggests researching other fitness businesses in the area to find out what they do well and where they could improve.

“Talk to the community and find out what type of fitness offering is lacking in the area. And, most importantly, visit some other branches of the fitness franchises you are considering to get a feel for what it’s really like – talk to the members, trainers, managers and owners if you can.”

Says Nicole Noye, “The ideal audience for gyms and fitness studios can be

quite specific, so the success of a fitness franchise depends on choosing a territory with a large percentage of your target market. The territory is a viable one where you can grow the franchise to enough members to make substantial profit margins.”

Once you’ve got a shortlist of brands, Magdalena Varley, new business manager at Belgravia Health & Fitness, encourages franchise buyers to deep dive and compare things like initial franchisee fee and ongoing royalties.

“Are these percentage/ revenue based therefore staying low while the business grows or are they a flat fee that the franchisor receives no matter how well the business is doing?

“Alongside this, how are the ongoing fees split up? Is it one fee or are they separated into multiple fees? These are all worth diving into as they must be disclosed in the disclosure document but many buyers initially overlook this and write off a business before getting to this point as it may seem more expensive.

“In reality though, the business may be more transparent, which is one sign of a good franchise.”

Lift Brands APAC CEO, Chris Caldwell

Get Going franchisor, Ethan Fleming

Fitness franchises have a unique set of requirements in terms of location. Choosing the right location requires a specialist team of experts. You’ll need somewhere central to a high-density residential area, with a floor space of at least 350-400 sqm, and ideally parking and public transport options nearby.

Fitness is fast-moving, so choose an agile franchisor.

Think about your own exercise and workout routines over the years – what you love doing now won’t be what you loved a few years ago, or perhaps even a few months ago. As the fitness sector introduces new trends and styles of working out, you need to know that your franchisor will be quick off the mark to update the system where possible.

For example, functional group training has exploded in recent years, and we’ve been able to start rolling this method of training into the Snap Fitness model in clubs with enough floor space.

One thing franchisees need to factor into their potential mobile gym purchase is all related travel costs. Between petrol, park permits and parking, things will start to add up. I'd recommend to any potential franchisee to always calculate the worst-case scenario and work backwards.

Mobile gym franchisees also need to be mindful of the specific safety measures that the franchisor is putting in place to make the customer feel comfortable. Not everyone wants a stranger to come into their home, so it's important there are measures taken to make consumers feel safe and secure.

NOV/JAN 2020-2021 | 62 | WWW.FRANCHISEBUSINESS.COM.AU

Fitstop franchise recruitment manager, Rebecca Hull

Ensure you are detailed around the systems, structures and partnerships the franchise has you are entering into. Does the franchise have good lead management tools, marketing, apparel partnerships, supplement partnerships, check in systems, music, programmed workouts etc?

If you need to develop your own then this becomes costly both in time and money to develop this out. As a prospective franchise it is important to look into the detail of this and the support the franchise will provide you along the way.

CycleBar master franchisor Aus/NZ, Matt Gordin

When searching for the ideal location for your fitness studio be sure to understand the local requirements for toilets, showers and disabled access.

Finding a property that has already been built to these requirements or has access as part of a larger centre could save a lot in start-up costs.

Belgravia Health & Fitness new business manager, Magdalena Varley Look at the preferred suppliers as most brands will have specific equipment suppliers to choose from. Look at how many options you will have, as well as their typical costings - this can save you a small fortune in the long run.

Consider whether the brands are high end or whether they have lower cost options available; do you only have the choice of two major brands, for instance?

Speak to other franchisees about their experience with the suppliers - was the correct equipment delivered and on time? These are all finer details that can save you from a potential headache.

Also consider your options with maintenance, how often equipment is mandated to be replaced by the franchisor and whether there are both leasing and purchase options available. If purchase is the only option and you are needing finance, it is always worth shopping around as every percentage has an impact on your bottom line.

Buying an existing business?

Christine Lau, principal, Lau Legal Consulting, has these tips for potential buyers of an existing fitness franchise.

• There may be privacy issues with transferring the customer database to the new owner, so this aspect needs to be checked out.

• Find out whether the equipment is subject to a lease or third party interests - you’ll need to check the Personal Properties Securities Register to ascertain whether there are any security interests registered against the vendor company and/or with respect to specific equipment.

• If the equipment requires regular maintenance, ensure there are records of maintenance services.

Listen To Your Body founder and CEO, Ben Fletcher Potential fitness business owners can be unaware of the process to obtain a planning permit and need to budget accordingly. The application can cost $5,000 to $10,000 to obtain the permit and can take between three and six months so the time frame from enquiry to grand opening is six to nine months.

Appoint a specialist planning company to act for you to get the permit. At LTYB we have got 14 out of 16 through a planner and there have been projects we didn’t even try because the planner only gave us a 50 per cent chance because of noise and parking impacts.

Pay the dollars and get the professionals.

Collective Wellness Group CEO, Nicole Noye The fitness industry is a competitive one, so choosing the right location for a gym or fitness studio is key to ensuring its success. It’s important to consider competitors in the local area because, if the location is already saturated with gyms, the franchisor may find it more difficult to cut-through the local market.

Once you’ve found a suitable location, the site location itself can also make a significant impact on its success - a gym or fitness studio that is poorly located with low exposure to passing foot traffic, no street frontage or poor access to parking may struggle to create a presence in its local community.

Negotiating the lease terms can take time and energy to ensure that both parties are happy with the end result. Gyms and fitness studios may require an acoustic report to ensure there is no noise pollution from the tenancy, so understanding these key terms when negotiating a lease is important as they may have a big impact on the franchise business.

NOV/JAN 2020-2021 | 63 | WWW.FRANCHISEBUSINESS.COM.AU

SPECIAL FEATURE ON FITNESS

13

WAYS TO ACTIVATE YOUR PASSION T

he fitness sector stretches from yoga and dance studios through to personal training and functional fitness to high energy boxing workouts, cycle studios, and big box gyms.

Check out this hot shot line up...

CycleBar

Get Going

Peak Physique Hot Yoga

Hot from the US, this premium indoor cycling business is just starting out in Australia with master franchisor Spin X Operations.

There is a target of 50 Aussie studios in three years. Expect to invest between $300,000 and $500,000 in a franchise.

The global brand has more than 225 outlets around the world.

A four-year old personal training business that started franchising last year and has already run almost 150,000 PT sessions.

Franchisees need a Certificate IV in Health & Fitness/Personal Training, and between $22,500 and $35,000 to invest in the business.

Hot yoga franchisees operate 25 hours a week, delivering pre-recorded sessions with in-class supervision that encourages improvements in posture, wellbeing and weightloss.

Capital investment is $30,000 and franchise buyers need to add on set-up costs of $30,00-$50,000.

Listen To Your Body

Fitstop

Plus Fitness

Personal training meets group training in the LTYB fitness model which began franchising seven years ago and now has 13 studios.

LYTB CEO and founder Ben Fletcher says club membership retention is typically above 90 per cent.

Capital investment is between $100,000 and $150,000.

A group training model that focuses on fun and functionality in fitness. Fitstop offers a variety of 45 minute workout sessions, and a holistic approach combining training and nutrition fundamentals to achieve results.

Capital investment is at least $200,000.

In the three years it has been trading, Fitstop has expanded to nearly 40 outlets.

It started as a traditional health club in 1996; then in 2011 the Plus Fitness 24/7 franchise model was born. Since then more than 200 gyms have opened across Australia, New Zealand and into Asia.

Starting price for a Plus Fitness gym is $249,000.

This year the business was acquired by Viva Leisure.

NOV/JAN 2020-2021 | 64 | WWW.FRANCHISEBUSINESS.COM.AU

Belgravia Health & Fitness

This is part of the privately-owned Belgravia Group, which has a portfolio of Australian businesses across health and fitness, leisure, tourism, property, finance and technology.

The health and fitness division has three franchised brands.

Lift Brands A global business that aims to foster health and wellbeing and has a portfolio of five brands, two of which operate in Australia under Lift Brands Asia-Pacific.

Coaching Zone A one-hour group personal training session features a high-tech 45 minute workout followed by 15 minutes of coaching with fitness and lifestyle tips to boost results.

A Coaching Zone studio will cost from $220,000.

9Round

Snap Fitness

A 30-minute full-body workout incorporating kickboxing. There are no set class times because a new workout round begins every three minutes.

It’s an American brand established by kickboxer Shannon Hudson and now part of the Lifts Brands portfolio.

Capital investment is between $150,000 and $250,000.

Snap Fitness has more than one million members worldwide, and almost 2,000 gyms across the US, Australia, Canada and India.

It’s an alternative to traditional big box gyms, offering cardio and strength training, and 24/7 access.

Expect to pay about $500,000 to invest in a franchise - that includes equipment.

Collective Wellness Group Genesis Health + Fitness For customers who want to swim, box, run, cycle, squat their way to better fitness, the Genesis Health & Fitness offers diverse training opportunities.

For franchisees it’s a $400,000+ investment to buy into the business which has 40 outlets.

Ninja Parc A Ninja Parc Indoor Obstacle Course is all about having fun in fitness and attracts kids and adults, with multiple revenue stream opportunities.

Investment depends on location but can be up to $800,000.

Founded in 2015 by two co-founders of Anytime Fitness Australia (who brought the brand here in 2008), CWG aims to empower and motivate Aussies to enjoy life through good health and fitness.

Anytime Fitness

Xtend Barre

This US-born fitness brand boasts some impressive statistics: in Australia more than half a million members attend more than 500 clubs.

The gyms are open 24/7 and members have access to a health hub, an app, and virtual sessions.

A franchise will cost upwards of $400,000.

Boutique fitness chain Xtend Barre provides a ballet-and-Pilates-inspired full-body workout designed to boost cardio and strength.

US professional dancer and Pilates instructor Andrea Rogers launched the concept in 2011 and today, of the 42 global outlets, 22 are in Australia It will cost from $120,000 to invest in a studio.

NOV/JAN 2020-2021 | 65 | WWW.FRANCHISEBUSINESS.COM.AU

SPECIAL FEATURE

FIND YOURSELF

THE RIGHT KIND OF FRANCHISOR AARON SMITH Founder, KX Pilates

THE DICTATOR The dictator franchisor is exactly as the name suggests: it’s their way, or the highway. These individuals offer a franchise format that is ‘turn key’ with little room for customisation, or personalisation to the buyer. They rarely allow the ideas of others to come through, and operate

What kind of franchise leader do you want to align yourself with?

with the mindset “you’ve bought in, now be quiet and follow.”

Some people argue that the dictator excels operationally because of their speed to get things done and implement efficient changes for a whole network. While it may be a way to work quickly, I believe it’s also often the fastest avenue to get franchisees

offside.

The impact of remorseful franchisees far exceeds a toxic relationship with the franchisor, it impacts staff morale and brand identity. A dictator franchisor can make franchisees feel isolated or unsupported, which runs the risk of affecting overall company culture.

long-term success.

The beginning of a franchisee’s journey is also often when they’re most vocal with their business network, peers, friends and family. It’s imperative a franchisor considers what kind of word-of-mouth marketing this individual will spread, and how it could increase expressions of interests.

I personally would find it very unfulfilling to hear someone say ‘yes, they will treat you like a nameless corporate number, but you’ll probably also make a lot of money’.

The way franchisees are treated has a direct influence on staff culture, and by extension – customers. As most customers do not recognise whether an outlet is company-owned or a franchised, an offended franchisee could inadvertently pass on their attitude to a customer and negatively impact the brand.

Treating franchisees like business partners allows franchisors to hear new problems and threats faster.

represent the needs of their franchisees to the broader industry every day, and do not take this responsibility lightly.

Australia is among the most franchised countries in the world. A franchisor ambassador is passionate about communicating best practices within their internal network, and the industry.

A franchisor ambassador demonstrates care about the industry.

Franchisor ambassadors need to be proactive with their public presence, attend networking events, gala evenings, participate in awards and more, knowing they’re not just representing themselves, but their franchisees too. n

THE BUSINESS PARTNER Personally, I believe the ‘business partner franchisor’ is among the most successful as it focuses on franchisee empowerment and collaboration. Statistically, when there’s mutual respect and open dialogue, you’re better able to advance the business and brand.

Franchisors who position themselves as a business partner invite franchisees to be vulnerable and open, to share their feelings and concerns.

I believe this better positions a brand for

FRANCHISOR AMBASSADOR This type of franchisor is an extension of the business partner – they’re open and honest with their franchisees, however, operate on an industry-level. These franchisors do not stay within their lane, they strive to be a positive ambassador for the entire franchise industry. They

NOV/JAN 2020-2021 | 66 | WWW.FRANCHISEBUSINESS.COM.AU

SPECIAL FEATURE

HOW DO YOU KNOW IT’S THE RIGHT TIME TO BUY A FRANCHISE? Franchise experts share their views on when a franchise purchase is a timely investment.

I

s now a good time to back yourself and invest in a franchise? For some people the idea of risk in a time of insecurity just doesn’t make sense; for others it’s the reverse - there’s no better time to take a calculated risk than when the future is uncertain.

Mark McGinley, CEO of CouriersPlease, believes that a franchise option has many benefits in comparison to an independent business, and there’s been no better time to showcase how a network can hold together than under the Covid crisis.

And as Ben Hatten, MD of franchise

recruitment at consultancy firm BDC Partners, explains, the basics remain the same whenever you buy. It’s the work you put in, the industry you pick, the family support that’s backing you, that is crucial to success.

BEN HATTEN MD franchise recruitment, BDC Partners

We are in the midst of a truly exciting and dynamic time in franchising. Australia and the rest of the world is experiencing a dramatic change in how and where we work, where we live and how we consume goods and services.

As a result of this the opportunities are going to be endless for those looking to control their own destiny and invest in a franchise business.

That being said for anyone looking to buy a franchise at the right time there are several questions that need to be asked: of the individual, the family and the industry the franchise business is in.

ASKING YOURSELF THE BIG QUESTIONS The first question needs to be what are you passionate about? What do you love doing? There are a multitude of franchise businesses in the sector so when you have an answer to that question do some research and find your options.

Secondly are you genuinely going to work your business hard? While franchisors will be there to support you in your

business and show you what needs to done on an hourly, daily and weekly basis you still need to do it. Will you do it?

Lastly, are you prepared to follow the system that has been developed over the years? This is the key. No doubt there have been many mistakes and lessons learned over the journey of the franchise business and as in any business, improvements made to the system.

Does your family understand the time and financial commitment any business requires by the owner and the potential impact in the first 12 to 24 months as you build revenue? This is very important as the support of people around you will have a direct impact on your ability to drive your business hard and manage the highs and lows.

What about the industry you have targeted? The first question should be, is it a sunrise or a sunset business? By that I mean is it new and growing or is it at the end of its run? Riding an upswing or a downswing will have a dramatic impact on your business so really do your research so you are going in fully informed.

Secondly what has happened during the pandemic particularly in Australia has forced retailers and business in general to drive online sales like never before.

Ecommerce in this country is well behind other major markets in the world and we have shown a stubbornness in not moving forward as quickly as we should have. Population size and distance has impacted on this, of course.

That being said if the industry you have chosen has an online application make sure it’s being used effectively and fairly, and is helping to drive an omnichannel strategy.

LET’S START THE RESEARCH ON YOUR OPTIONS As you go through the process you want to be looking for a few key points both financially and personally.

From a financial point of view, a franchisor should be able to provide either company outlet sales figures or averages from the existing franchise network. In some cases, some franchisees will share their P&L with you.

When preparing your forecast figures with a financial advisor or accountant make sure you do target, budget and disaster scenarios. Remove your rose-coloured glasses and have a crisis plan - we know now how important that is.

Look for the relationship the franchisors have with lending institutions. Some franchises are emerging businesses . u

NOV/JAN 2020-2021 | 68 | WWW.FRANCHISEBUSINESS.COM.AU

SPECIAL FEATURE and therefore the relationship will be at an early stage. However others who have been operating for several years should have a very open relationship with multiple lenders. This will make your funding options easier and smoother if you choose to proceed.

From a personal point you need to meet everyone in the franchise network you can - from franchisor and executives to support staff and franchisees. This will give you a great gut feel of the culture and people you are potentially getting into business with.

You need to hear the good and the bad as every franchise will have them and you can weigh up the negatives and positives, and what they mean for you.

The franchise sector is no different to any other work environment, so read the

play. There are some people who should not be franchisors and there some people who should not be franchisees!

Market forces for local and national economies are very hard to predict. We can’t use a crystal ball to see when a pandemic or GFC is coming but we can look at fundamentals like growth and consumer sentiment. Have a look at what’s going on around the world and locally, listen to the economists and do the research.

How do I know when it’s the right time to buy a franchise? Take your time, ask plenty of questions of your advisors (critical) and go through the process above.

You’ll know when it’s the right time.

Owning your own business is one of the most rewarding things you will ever do professionally.

MARK MCGINLEY CEO, CouriersPlease

While thousands of businesses are struggling in the current tough conditions, franchisees are in a better position to cope with these challenges – particularly those operating under an established brand.

Being a franchisee offers many advantages, including working for oneself while operating under a well-known brand and a proven business model with tried and proven systems, processes, and marketing and financial support.

BENEFITS OF THE FRANCHISE MODEL The phrase ‘strength in numbers’ encapsulates a key benefit of the franchise model: having a large network of franchisees behind you and a parent company that looks out for your best interests.

Our franchisees have not been immune to experiencing challenges during the pandemic, as with many other businesses.

However, being a franchise model, CP can offer various support measures and guidance on navigating the new environment, allowing our franchisees to focus on their business – a priority for us at any time, but ever-more so now.

CP franchisees can sustain and generate an ongoing income even at a time when

business is quieter due to a drop in activity in their zoning area.

As a result of this business model, our franchisees have the ability to pick up work in areas that are booming and cannot be fully serviced by the existing franchisee due to overflowing volumes, an advantage independent delivery businesses do not have.

If it were not for a proven franchise model, with a 30-plus year legacy, to lean on, we might have seen some franchisees struggle to stay afloat if they operated as a sole trader.

We’re really proud that our support team acted quickly to develop and implement stringent safety measures and processes to ensure the safety of our franchisees, employees, and our customers.

By having a franchisor that can work swiftly to develop systems that adhere to guidelines the Government has put in place, our franchisees have been able to focus on deliveries instead of creating processes and guidelines. CP has been committed to supporting our franchisees during this unprecedented situation.

FRANCHISOR SUPPORT HELPS FRANCHISEES IN TOUGH TIMES Some businesses – particularly those in hospitality and tourism – haven’t come out unscathed during the consequent shutdowns during the pandemic. We have seen independent restaurants and cafes, for instance, forced to shut due to social restrictions and lack of customer activity.

While some franchisees have also

struggled to stay afloat, they often have the support of their franchisor to provide assistance and guidance – putting them in a better financial position.

For example, some franchisors won’t charge fees or marketing levies during this challenging time. Some also offer their franchisees financial advice around grants and Government schemes such as JobKeeper, or provide support to get a loan.

With rent one of the largest ongoing expenses, franchise businesses often have the band power to leverage the size of their business operations and negotiate on rent reductions on behalf of the franchisee.

Franchisors like CP have measures in place to provide financial support to franchisees, which in our case sees them handle a minimum number of parcels each week to ensure they don’t fall below a certain income. During the pandemic, we introduced a support package to ensure franchisees are looked after, should they get Covid-19 and be unable to work.

Having the support of a well-trusted franchise model can be a real advantage at this time. The franchisor should be able to absorb many of the burdens that small businesses face. They can provide financial, administrative, operational and marketing support to help them navigate through these uncertain times allowing franchisees to focus on their core business. n

NOV/JAN 2020-2021 | 70 | WWW.FRANCHISEBUSINESS.COM.AU

Tech-enabled start-up business in an essential services industry Get the security and freedom that you’ve been looking for!

A respected partner to global carriers

The InXpress Franchising Opportunity

Founded in 1999, InXpress has a long history in managing

Build your own successful and profitable start-up business

successful businesses around the world. This is combined

with the freedom to work from anywhere, all with the security

with the know-how to train and support franchisees in

of the world’s largest franchisor of global courier services.

running a sales and business management franchise.

No experience is necessary to become an InXpress franchisee.

With 380+ franchises, located in 14 countries, the multi award-winning business continues to grow. InXpress has already established strong relationships with trusted courier partners, providing access to highly competitive rates. This

All you need is to be sales-oriented and have an aptitude for business. We’ll provide full training, with ongoing business coaching and support.

leaves you free to concentrate on building sales, working

Recession-resistant, essential services industry

towards your goals and creating the lifestyle you want.

Low entry and ongoing costs

Tech-enabled essential services

Proven model for 20 years, constantly evolving

Get the security and freedom you’ve been looking for! Over

Comprehensive training and ongoing coaching

the last few months, our franchisees have enjoyed the

No inventory, warehousing, vans or trucks

security of working in an essential services industry and

No employee base initially, opportunity to grow

operating their businesses as usual, with minimal impact.

Plus, being a tech-enabled business means that you - as a business owner - can work from literally anywhere in

Potential to earn unlimited passive income Ability to work from anywhere!

the world! InXpress’ online shipping portal, Webship Plus, is built on over 21-years of insight into what customers need, saving them hours on their shipping and empowering franchisees with insights into their business performance.

Are you the next InXpress franchisee?

If you are sales-minded, driven and enthusiastic, then InXpress’ franchise model could be for you! With the

Eugene Rusel, InXpress Collin St, established 2018, now listed in Top 20 fastest growing InXpress Franchises globally

freedom to build your franchise however you want, you can start out alone and progress to a workforce, or you can go all-in and have a team and offices from the start. Whatever path you take, InXpress can give you the flexibility and lifestyle you have been looking for.

For more information on joining the InXpress Franchising Team, call us on 1300 097 857 or email us at sales.au@inxpress.com

www.inxpress.com.au

FRANCHISE BASICS

FRANCHISE AGREEMENTS –

WHO HAS THE MOST RIGHTS?

A

Buying a franchise?

A typical franchise agreement is likely to include some things that might surprise you.

t the ACCC, we frequently receive reports from people who have signed up to a franchise without realising what they’ve agreed to. Unfortunately, it’s often too late once you have signed an agreement/a contract.

MICK KEOGH

In this article we tell you about some common complaints from franchisees who didn’t understand the full extent of what they had agreed to.

ACCC

A FRANCHISOR OFTEN HAS RIGHTS THAT A FRANCHISEE DOESN’T It’s important to understand what franchising is about before you sign an agreement.

A franchise agreement tells you what rights and obligations you’ll have when

running your franchised business. It is a legal document that says what you are allowed to do, what you must do, and what you must not do.

Franchisors draft these agreements to give themselves a lot of control over your business investment. This means the franchisor often has the most rights in the business relationship, despite the money you’ve invested and the significant risk in running a franchise business.

Here are some examples from reports to the ACCC. • The franchise agreement says the franchisee has to buy their ingredients and supplies from suppliers chosen by the franchisor, even though there are cheaper alternative options available.

• Franchisees have to pay marketing fees each month, but don’t have a right to decide how the money is spent; the franchisor makes these marketing decisions.

NOV/JAN 2020-2021 | 72 | WWW.FRANCHISEBUSINESS.COM.AU

SOME FRANCHISE AGREEMENTS MAY HAVE UNFAIR CONTRACT TERMS

•

The franchisor can set up new businesses that may compete with existing franchises or the entire network, but franchisees can’t do the same.

These conditions are pretty common in franchising and are usually legal and part of the franchise contract.

You might think the Franchising Code of Conduct would help. Under the Code the franchisor has to tell you certain things during the disclosure process, before you sign an agreement.

While there is an obligation on parties (including franchisors) to act in good faith, this doesn’t mean the franchisor cannot act in their own legitimate commercial interests, including by having terms in an agreement that suit them but not you.

If you don’t like the idea of the power imbalance that often exists between franchisors and franchisees, you need to think about whether franchising is for you.

You can read more on good faith and the Code on our website www.accc.gov. au/franchising

Sometimes the terms or clauses in franchise agreements may be unfair.

You can try to negotiate to have the terms removed, but this is often not straightforward and should be done with help from your lawyer so that you’re not worse off.

The ACCC recently accepted a court-enforceable undertaking (a legally enforceable promise) by Back In Motion Physiotherapy Pty Ltd to remove certain terms from its franchise agreements, which it admitted may have been unfair.

One of these terms was about what work people could do after they stopped being a franchisee of Back In Motion (a restraint of trade clause). This clause was in most of the Back In Motion franchise agreements. It meant any franchisee who wanted to leave the group was not allowed to be involved in any competing physiotherapy practice located within a radius of up to 10 kilometres of any Back In Motion franchise anywhere in Australia for up to 12 months.

Franchise agreements often contain a restraint of trade clause, which can try to limit the type of work or geographic areas franchisees can work in after leaving the franchise system.

The key takeaway here is to check your franchise agreement before you sign, and get legal advice about any terms that may be unfair, such as unreasonable restraint of trade clauses.

THE MOST IMPORTANT PHONE CALLS YOU CAN MAKE Here is another thing that might surprise you. The most important phone calls you can make when thinking of buying a franchise are not to the ACCC – it’s to people who own or have owned a franchise. These are the people who know the most about the franchise system you’re thinking of buying into, and how it works (or doesn’t work) in practice.

You should receive their contact details when you get something called a

NOV/JAN 2020-2021 | 73 | WWW.FRANCHISEBUSINESS.COM.AU

disclosure document from the franchisor.

If it is too hard to get in touch with former franchisees, or they don’t want to talk to you, consider it a big warning sign to avoid the franchise system.

Calling your legal advisor is also important. Your legal advisor will help you understand the franchise agreement, and avoid agreeing to something that you don’t want.

Getting legal advice about a franchise agreement, and speaking with current and former franchisees in advance, should give you greater confidence in your decision whether or not you sign up.

MORE INFORMATION AND RESOURCES The ACCC provides a range of resources and guidance to help potential franchisees like you. This includes short videos explaining common concepts in franchising and things to watch out for check out our website www.accc.gov.au/ buyingafranchise.

The ACCC enforces the Competition and Consumer Act 2010, which includes the Franchising Code of Conduct and the Australian Consumer Law in accordance with our Compliance & Enforcement policy. If you think a franchisor might have breached the Competition and Consumer Act you can make a report to the ACCC at www.accc.gov.au/ contact-us. The ACCC can take action in serious cases, for example, where there is widespread harm, but the ACCC does not have a role in resolving disputes between franchisees and franchisors. n The information in this article is for general guidance only. It does not constitute legal or other professional advice, and should not be relied on as a statement of the law in any jurisdiction. As it is intended only as a general guide, it may contain generalisations. You should obtain professional advice if you have any specific concern.

Mick Keogh is deputy chair of the Australian Competition and Consumer Commission.

FRANCHISE BASICS

BUSINESS LOAN BASICS Understanding the essentials will improve your chances of getting finance.

MARIA ROBINSON Concinnate Financial Services

O

btaining finance to purchase a business has never been tougher. Understanding the requirements of lenders and accommodating these requirements will increasing a borrower’s chances of obtaining finance.

There are number of considerations a lender will take into account in determining whether to approve a business loan.

THE SPORTING GLOBE Buying an established business gives you more lending opportunities than buying a greenfield site. A greenfield is where you are starting the business from scratch, there is no prior trading history and your financial information relating to the business is projections and forecasts, rather

than factual data.

An established business is where you are buying a business which is currently being operated by another franchisee who is selling that business. When purchasing an established business there is actual data on the trading history of that business as well as infrastructure, staffing, processes, a client base and so on which makes the risk far more attractive to a lender.

Lenders much prefer to lend for the purchase of an established business rather than a greenfield because they have real data to assist them in assessing the business opportunity.

INDUSTRY As we all know some industries have been harder hit by Covid-19 than others.

Beauty, hospitality and fitness are industries that have been significantly affected

NOV/JAN 2020-2021 | 74 | WWW.FRANCHISEBUSINESS.COM.AU

by mandated restrictions and also feature widely in the franchise sector. Lenders are being more cautious in lending to franchisees in these industries. While it can be more difficult to obtain finance for certain industries there are mitigants you can offer the lenders to improve your chances of obtaining finance.

MITIGANTS Mitigants are elements that reduce the risks to lenders. Some of the mitigants lenders will look for include: • Do you have prior experience in running a business?

• Can you display financial acumen?

• Do you have prior experience in the industry you are looking to buy into?

• Do you have a strong asset position?

• Are your personal finances in order?

• Have you completed due diligence with legal, financial and accounting advice?

• Do you have a business plan and cash flow?

DUE DILIGENCE Lenders like to see that as a prospective business owner you have completed a reasonable amount of due diligence. This includes writing a business plan, providing an analysis of previous financial data (if available) and providing financial and sales forecasts. You need to be able to display to the lenders that you know what you are doing, you have a plan in place regarding how you will operate the business, you have considered risks and offered mitigants and you have a clear understanding of financial implications of business performance.

STANDARD LENDING REQUIREMENTS There is of course the standard lending criteria which lenders will apply to your loan application. Do you have sufficient capital or equity behind you, do you have collateral to offer if required, can you

NOV/JAN 2020-2021 | 75 | WWW.FRANCHISEBUSINESS.COM.AU

evidence that the business can service the loan, are you willing offer personal guarantees if requested. Lenders will apply credit criteria and go through their series of calculations to assess if they will lend you money.

You can play a vital role in this process by having financial information readily available. Lenders get concerned if borrowers are disorganised. It is always a good idea to have a “lender pack” ready with everything that may be required for the loan, including a copy of your franchise agreement where possible (even if it is just a template version, not the executable version).

PERSONAL FINANCIAL SITUATION Your personal financial position will also likely be considered when applying for business finance. Your lender may ask the following questions: • What are your personal debts? For example home loan, investment property loan, credit cards, car loans and so on • What are your living expenses? This includes how much you spend on groceries, utilities, school fees, insurances and so on • How will you pay for these expenses while your business builds?

• Is there going to be another source of income into the household? Do you have a partner who will continue to work, do you have investment income and so on • It is highly recommended that you go into your meeting with your lender with a document breakdown of your personal assets, liabilities and living expenses Lenders are asking for more information than ever before to assess whether they will lend you money to buy a business (or for any purpose really) so preparation is key. Making it easier for the lender by being prepared mans you are making it easier for the lender to say YES! n

Maria Robinson is director/ senior finance broker of Concinnate Financial Services.

FRANCHISE BASICS

Local neighourhoods are playing a larger part in our economy today, thanks to Covid-19. Here’s what you need to know.

PETER BUCKINGHAM Managing director, Spectrum Analysis

A

s we come out of Covid in 2020 / 2021, life will be different. So what will this mean for your location or territory search as you get closer to signing up for a franchise?

Let’s start with a broad sweep across the country and see how life is changing.

8 POINTS THAT WILL HAVE AN IMPACT ON AUSSIE LIFE OVER THE FORESEEABLE FUTURE: 1. With no international immigration (an annual loss of about 200,000 migrants) we can expect population growth to be slightly slower than forecast.

2. The growth areas in the outer metropolitan areas will continue and people will want to shop locally where possible.

3. People have very quickly become used to working from home.

4. Operating large corporate offices in the CBDs around Australia will become less and less attractive.

5. Many offices will be in surplus, and many companies may be seeking smaller office spaces or remain virtual.

6. If working from home takes over from commuting to a CBD, peak period traffic will look quite different.

7. Aussies have adopted online retail very quickly.

8. Shopping centres (large and small) are not so fashionable, so this should lead to rental reductions over time.

THE RISE OF THE SUBURBS?

POPULATION GROWTH ACROSS AUSTRALIA Much has been written on the various scenarios for post Covid population changes across Australia. My view is we will be missing 200,000 new immigrants, but most pundits believe Australia will pick this number up in the next three to five years.

Melbourne and Sydney will be most affected in the short term, simply because these cities attract the greatest number of migrants.

The Australian Bureau of Statistics (ABS) is responsible to the Federal Government to give an accurate set of population forecasts. Our last Census was done in 2016. The next census cycle will start on census night - 10 August 2021.

Our view has always been that this population forecast data is the “gold medal” dataset. It takes inputs from councils, State Government and Federal policies. u

NOV/JAN 2020-2021 | 76 | WWW.FRANCHISEBUSINESS.COM.AU

FRANCHISE BASICS Top growth areas in Melbourne

Top growth areas in Sydney

TOP GROWTH AREAS IN AUSTRALIA High growth areas mean high spending – new houses and fit outs, young families and all the consumerism of establishing their future. These areas match well for franchising, as demand for the products and services supplied by franchising are what this demographic is seeking.

The growth occurring in and around Melbourne is extremely strong and surpassing all other capital cities. The top five growth corridors in Australia are in Victoria.

Due to multi storey developments, both Sydney Inner City and Melbourne City are also still in the Top 20.

REGIONAL AREAS ARE REGENERATING The Covid-19 experience is seeing a regeneration of many regional areas as people conclude they do not need to operate from a CBD office, and can negotiate with their bosses to work online, or make far fewer visits to the head office, and therefore are prepared to live further out.

Cities like Ballarat, Bendigo, Wollongong, Toowoomba and Geelong are reporting increased interest (and prices) in real estate as people are marching out of the cities for a more relaxed way of life.

WHAT SHOULD I BE THINKING ABOUT FOR A FRANCHISE LOCATION? The first thing I would be looking at is the potential growth in an area and how this will affect the business I am considering.

The outer areas of Melbourne should rocket ahead over time, as will areas like Bringelly (NSW), Wanneroo (WA) and Oxenford (Qld).

These high growth areas normally involve young families (first homes) and in Melbourne and Sydney’s cases,

SA3 NAME

STATE

TOTAL POPULATION CHANGE 2017-2032 PROJ.

% POPULATION INCREASE

WYNDHAM

VICTORIA

198,150

80%

WHITTLESEA WALLAN

VICTORIA

165,480

71%

CASEY - SOUTH

VICTORIA

145,047

77%

TULLAMARINE BROADMEADOWS

VICTORIA

111,919

64%

MELTON BACCHUS MARSH

VICTORIA

111,767

67%

BRINGELLY - GREEN VALLEY

NEW SOUTH WALES

107,646

96%

WANNEROO

WESTERN AUSTRALIA

107,156

54%

SYDNEY INNER CITY

NEW SOUTH WALES

100,330

42%

BLACKTOWN NORTH

NEW SOUTH WALES

92,188

91%

MELBOURNE CITY

VICTORIA

90,355

57%

ORMEAU OXENFORD

QUEENSLAND

83,310

63%

CARDINIA

VICTORIA

74,219

72%

CAMPBELLTOWN (NSW)

NEW SOUTH WALES

69,161

42%

SWAN

WESTERN AUSTRALIA

68,845

51%

SPRINGFIELD REDBANK

QUEENSLAND

65,873

72%

DANDENONG

VICTORIA

56,591

28%

AUBURN

NEW SOUTH WALES

54,931

56%

PARRAMATTA

NEW SOUTH WALES

51,930

34%

KOGARAH ROCKDALE

NEW SOUTH WALES

49,620

33%

STRATHFIELD - BURWOOD ASHFIELD

NEW SOUTH WALES

48,620

30%

NOV/JAN 2020-2021 | 78 | WWW.FRANCHISEBUSINESS.COM.AU

WHAT TO CONSIDER BEFORE SIGNING UP TO A SHOPPING CENTRE SITE

We have been over-retailed for many years with big shopping centres just continuing to expand, often at the expense of smaller centres or strips.

Now as many shopping centres are struggling to retain their tenants/franchisees we are seeing a complete about - face from the shopping centre owners holding the whip hand, to some of the larger groups taking them on in a very confrontational way – eg Premier Retail which includes Smiggle and Peter Alexander in its portfolio - who are closing stores if they cannot reach a suitable rental.

I believe we will follow the US, and actually see some shopping centres close and the land re-purposed to a better commercial return.

I think it is unlikely to happen to Super Regional centres (85,000 sq m +) such as Bondi Junction or Chadstone, but I can see some older Major Regionals (50,000 – 85,000 sq m) or Regionals (30,000 – 50,000 sq m) under extreme pressure.

I believe retail rentals will drop, and whether the shopping centres can tow the line and stick to their very restrictive five-year leases with no automatic renewal options will be severely tested over the next 12 months.

If I was a franchisee going into a shopping centre, I would be discussing all the normal rent free periods, fit out costs etc, but be placing the most pressure on the lease term, and the possibility of options to renew in the future.

We will see far more opportunity to negotiate with shopping centres and even strip shopping locations in many established areas as population growth may be minimal, and quite simply, shopping centres seem to be less popular – especially as we come out of Covid.

High growth areas mean high spending – new houses and fit outs, young families and all the consumerism of establishing their future.

considerable ethnicity. There will always be demand for the staples like QSR and basic food items (small shopping centres) and education in its many formats.

While there is still high growth in the Melbourne and Sydney CBD forecasts, my view is this is more in students or retirees, so the demand for the types of service many franchises offer are not so relevant.

WHAT SHOULD WE LOOK AT IN CHOOSING A LOCATION? Growth areas offer more potential for most franchise operations than stable or reducing populations. Other factors do need to come into play such as if an area is already over serviced in what you wish to sell, but reasonable due diligence must always be undertaken to answer those types of questions.

For a service franchise, the growth of an area must be truly relevant to the service provided. If it is a bricks and mortar business, then growth areas will be paramount, and will have an impact on lease negotiations.

Territories (or exclusion zones – as I prefer to call them in a bricks and mortar situation) should be considered in terms of the area being offered and the possible additional business it can expect over the next 10 to 15 years. There are areas which are reducing in size and I can only warn you to look out for them.

WHAT ARE THE TELL-TALE SIGNS OF A REDUCING AREA?

Some of these declining areas sprang up quickly in the 1980s or 1990s. The homeowners were parents with young children but are now empty nesters in their 60s and 70s who have stayed in their homes. That has meant a lack of younger homeowners moving in and regenerating the area.

Typical areas are Mill Park and Endeavour Hills in Melbourne, The Hills area and around Menai and Illawong in Sydney, and around Rockingham and Warwick in Perth.

USE DEMOGRAPHIC SHIFTS TO HELP YOU FIND THE RIGHT LOCATION As we see the aftermath of 2020 and Covid-19, we can expect a change in the ways in which we live, and this will be played out demographically as people change their lifestyles and travel patterns.

Think in terms of how these population shifts may affect the business you are considering, either in a positive or a negative manner.

Using demographics and population forecasts may help in the biggest decisions in your life including your house, your business and your long-term lifestyle. Use data to make better decisions. n Peter Buckingham is the managing director of Spectrum Analysis Australia, a Melbourne based geodemographic and statistical consultancy. Peter is both a Certified Management Consultant (CMC) and a Certified Franchise Executive (CFE).

Across Australia, we are seeing many areas reducing in total population, and as we also work with schools, an even higher percentage drop in school-age children.

NOV/JAN 2020-2021 | 79 | WWW.FRANCHISEBUSINESS.COM.AU

FRANCHISE BASICS

WHAT COVID-QUESTIONS SHOULD YOU ASK YOUR FRANCHISOR? Simple questions will reveal how franchisors face and overcome crises.

W

e all know it’s been tough for business during the pandemic. Yet this period can serve to highlight just how the leadership in a franchise reacts to a crisis, and what steps it is willing to take to ensure franchisee survival.

What will you ask your potential franchisors? On top of the standard questions to pose at any pre-purchase interview, Covid-relevant questions have to be part of the process if you’re serious about evaluating a franchise.

1. WHAT DID YOU DO IN COVID? Ben Flintoff, GM at ice cream chain BaskinRobbins Australia, says ‘what did you do in Covid?’ is a simple, direct question to ask now - and one that will become a standard question from franchise buyers in a few years from now.

And this is something franchisors need to be able to answer well, he says.

2. HOW HAVE YOU SUPPORTED FRANCHISEES? Franchisors should be able to rattle off a list of ways they have stepped up and helped their franchisees.

For instance, did they freeze franchise fees or payment plans? Did the franchisor negotiate with landlords over lease repayments?

Did the franchisor slash head office staff or maintain them to ensure franchisees were fully supported?

?

? ?

How did the franchisor use digital channels to communicate with franchisees?

3. WHAT WOULD YOU DO DIFFERENTLY? “Prospective franchisees are mini entrepreneurs. So they need to think about how they would like their brand to be managed,” says Ben. Has the franchisor continued to market strongly throughout the crisis?

Perhaps the franchise brand has taken a stronger community stance, or innovated to provide franchisees with a new income stream?

If not, are these strategies they would consider in another crisis situation?

The pandemic has revealed our strengths and weaknesses; so ask the franchisor what lessons have been learned that mean things will be done differently in the future?

In a crisis a business team can respond with a flight or fight strategy. Some food franchises have had it tough this winter. But you can flip the perspective, suggests Ben. “It’s so simple to say this has happened to us. Turn it around and say - people still need to eat, need to make some purchases.”

Franchisees need brands to be on the front foot.

4. WHAT ARE YOU DOING TO UNDERSTAND MARKET CONDITIONS, AND REACTING TO THEM? Ben believes franchisors should be looking far enough ahead to understand how they will respond to a crisis - not a specific crisis, but any crisis.

It’s not about including a Covidpandemic clause in the franchise agreement; it’s about giving franchisees the confidence the franchisor can handle prevailing market conditions. n

Roll’d relief

Roll’d CEO Bao Hoang says the brand stepped up during Covid to support not just franchisees, but their staff.

"We've given royalty and cashflow relief, and we've supported franchisees' staff directly - Roll'd employs about 800 international students on visas.

"We ran a give-back system on behalf of franchisees, for staff who are in distress to pay their rents, for instance.

"The royalty relief wasn’t an enormous amount but it takes pressure off franchisees who have so many people screaming for money."

Baskin-Robbins solutions

Ben Flintoff cites the ice-cream chain’s moves to bolster the business under crisis.

“We’ve had some real successes, taken cashflow boosts and hunkered down, shoring up finances for the next five years,” he says.

“We’ve had to pivot our systems to protect profitability.”

For instance, solving supply chain challenges. Some of the food preparation requires latex gloves, so when the cost increased by 500 per cent, Baskin-Robbins’ management looked for an alternative. Instead of a different glove, the solution turned out to be menu rationalisation so that cheaper single use food-handling gloves could be used throughout.

NOV/JAN 2020-2021 | 80 | WWW.FRANCHISEBUSINESS.COM.AU

FRANCHISE BASICS

HOW THE FRANCHISE CULTURE WILL AFFECT MY TEAM Ready to buy a franchise and unsure how the brand ethos will have an impact on you and your team?

Here’s what you need to know.

PIA ENGSTROM The HR Dept Western Suburbs Perth

T

here’s no doubt that franchising is a great option for smaller businesses to step up amongst larger competitors, when compared to join the race on their own.

Having a pool of support from a franchisor and other franchisees can be invaluable, as can the package of training, existing relationships with suppliers and the ease of accessing finance.

However, becoming part of a larger organisation of businesses comes at a cost.

Often that’s a restriction on the freedoms you may enjoy as a smaller business.

Franchisees may need to get used to franchisor monitoring, a lack of flexibility

in terms of changes aimed at growth, as well as the potential stifling of local characteristics.

All these are things to consider before you start – not only for what it will mean for you as a business owner, but also how it will impact the team that you work with.

GETTING THE RIGHT RECRUITS Employing the right people is a key ingredient in the success of any business and a franchise is no different.

Staff working in a franchise set up should be suitable for the industry, of

course, with the right passions and skills to be successful in their role. But they should also

be aware – from the beginning of the recruitment process – that certain characteristics are expected of employees in a franchise.

These include adherence to certain guidelines set by the franchisor and an understanding that you, as the franchisee, will have a management style which is partially determined by these stipulations.

Your employees will need to understand that their actions will reflect not only on your business but also, potentially on those of all franchisees in the network and on the franchisor’s overall brand. That responsibility is bound to come with certain expectations.

I would suggest that staff should also come with a certain level of resilience, so that they are assets in friendly competition against neighbouring franchisees, for example. u

NOV/JAN 2020-2021 | 82 | WWW.FRANCHISEBUSINESS.COM.AU

FRANCHISING, LICENSING AND DISTRIBUTION SPECIALISTS Who would have known what 2020 would bring us?

We did say 2020 would be a dynamic year and it seems we were right!

Change brings new ideas and reinvention and that is what business must now do.

So, getting the right legal advice and support is even more vital.

The Franchise sector has had the Franchise Parliamentary enquiry into Franchising and the Governments report on the recommendations that may be implemented is yet to be finalised Franchisors need to be up to date and vigilant about their compliance but more importantly look at their existing business model and work with their franchisees to ensure they adapt to the changing environment.

New franchisors need to invest in software, applications and technologies to ensure the long-term viability of their franchisees and deliver to their customers.

Robert Toth and the MMRB Franchise Group provide that expert advice to local and overseas Franchisor’s and companies.

35 years of expertise in developing and supporting business including: • Assisting overseas companies to establish their Franchise and Business in Australia.

• The grant and or appointment of Master franchise rights.

• Dispute resolution – Solutions and strategies.

• Franchisee advice – fixed fee reports.

• Sale and purchase of Franchise, licensing rights and systems.

• Trademark and Intellectual property (IP) advice.

• Company structures and business succession planning • Business models for expansion including Franchising, Branchising, Licensing, Distribution • Agency rights JV and partnership arrangements.

• Leasing and Covid -19 and workplace issues.

• Consumer law and ACCC advice.

• Franchisor in house training and compliance.

We have a network of allied consultants to assist clients establish their brand and systems including accounting and tax advice, financial modelling, demographics, feasibility, leasing and property, market research and business entry plans for overseas companies.

We also offer fixed fees based on the scope of work, so our clients can budget for their legal costs with certainty with no hourly rate surprises!

Member: The International Franchise Lawyers Association (IFLA), US Commercial Service and Franchise Council of Australia (FCA).

Contact Robert for a free “Guide for Franchisors 2020/21”.

CONTACT: Robert Toth/Partner

Accredited Commercial Law Specialist robert@mmrb.com.au | 0412 673 757

Kathryn Finemore

Senior Associate and Accredited Commercial Litigation Specialist kathryn@mmrb.com.au | (03) 9604 9400

Stacey Ryan

Senior Associate stacey@mmrb.com.au | (03) 9604 9400

FRANCHISE BASICS However it is also worth emphasising that franchisees and their management of staff can also have a major impact on the brand reputation of the franchisor.

As such, the Franchising Code of Conduct is a key document, in terms of setting the framework for the rights and responsibilities of everyone involved.

The Code is complex, though, and as a franchisee you should remain aware of your franchisor’s obligations through the lifetime

of your business relationship, as well as your own.

BEST TECHNIQUES FOR HIGH RETENTION Franchise businesses are no different from any other in that their people are their most important asset. Employees should always be treated carefully and feel valued – not only to ensure productivity remains high but that retention is maximised.

Health and safety policies (for physical health as well as mental health and wellbeing) will mostly likely be set by a franchisor, but franchisees will have a significant role to play in their execution. In particular, mental health during stressful times should be a key consideration – as an employer you have a responsibility, as well as a business interest, in making sure that your staff are content and productive.

I would advise all franchisees to insure their business against Fair Work Claims, as even the most scrupulous of company owners may find themselves in hot water during these difficult times. Recent figures have shown the number of workers raising issues with unfair dismissals has risen hugely during the coronavirus pandemic, and the results can be crippling.

The flip side of this coin, of course, is that employees in industries which commonly franchise will be grateful for work and will, hopefully, be motivated to make your business a success. Their salaries should be carefully managed so as to keep them engaged and they should understand that, while barriers to personal growth may be limited due to the nature of the franchising arrangement, they are a valued part of your business journey and their loyalty will be rewarded. n Pia Engstrom is director of The HR Dept Western Suburbs Perth, providing outsourced HR services, practical advice and support for small to medium sized businesses.

Your employees will need to understand that their actions will reflect not only on your business but also, potentially on those of all franchisees in the network and on the franchisor’s overall brand.

NOV/JAN 2020-2021 | 84 | WWW.FRANCHISEBUSINESS.COM.AU

BE YOUR OWN

• Free advice from the experts • Meet the people behind the brands • Free seminars daily

Sydney | Perth | Brisbane | Melbourne

franchisingexpo.com.au

ENDORSED BY

CONNECTING YOU TO THE RIGHT FRANCHISE FOR 32 YEARS. DISCOVER 1,200 BRANDS 6,400 FRANCHISES 9,000 ARTICLES

facebook.com/insidefranchisebusiness instagram.com/insidefranchisebusiness linkedin.com/showcase/franchise-business-australia twitter.com/ifranchisebus

be i r c s b u S Today!

ight a r t S s New ox b n I r u o to Y

FRANCHISEBUSINESS.COM.AU

FRANCHISE BASICS FRANCHISE BASICS

LEARNING THE

BUZZWORDS

Like any area of endeavour, the franchise sector has its own particular terminology that new franchisees need to understand.

ACCREDITATION

a banking loan scheme that provides franchisees with some of the finance they may need when buying the franchise. It is based on a bank’s understanding of the brand and its business methods. While this funding option is popular, it is not common across the sector.

ASSIGNMENT

when a franchisee sells their business to a new franchisee, it is referred to as assignment. It is common for the franchisor to retain the right to interview and accept or reject any proposed buyer. The franchisor may also have the right to buy back the franchise. The vendor franchisee can set the value of the franchise.

BUSINESS-FORMAT FRANCHISE

a business model with four criteria – a franchise agreement, a trademark or symbol, payment of a fee, and a system or marketing plan. A franchise business falls under the jurisdiction of the Franchising Code of Conduct and franchisors have certain obligations to fulfil.

COMPANY-OWNED UNITS

locations run by the franchisor rather than a franchisee.

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

CONVERSION

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

DISCLOSURE DOCUMENT

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).

an existing independent business that joins a franchise network.

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.

FRANCHISING CODE OF CONDUCT

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.

NOV/JAN 2020-2021 | 88 | WWW.FRANCHISEBUSINESS.COM.AU

FRANCHISOR

the franchisor grants permission to the franchisee to conduct business using its intellectual property, brand name, working methods and marketing.

GREENFIELD SITE

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

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.

INFORMATION STATEMENT

this is a two-page standard document that outlines what franchise buyers need to know about franchising.

INTELLECTUAL PROPERTY

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.

this term refers to the trademarks, copyright, know-how, trade secrets, designs, patents, branding, operational manuals, methodologies and/or recipes franchisors license to franchisees.

ROYALTY

LICENSE

TERMINATION

LOCAL AREA MARKETING

TERRITORY

MARKETING & ADVERTISING LEVY

TOTAL INVESTMENT

the right to use intellectual property in business, such as sales rights in a territory, manufacturing technology or access to a trademark. A license is not the same as a franchise. often abbreviated to LAM, this is marketing the franchisee is responsible in their territory or designated marketing area. a regular flat or percentagebased-fee paid into a centralised advertising or marketing fund.

MASTER FRANCHISEE

a franchisee who is responsible for a large territory, appointing other franchisees within the territory with direct agreements, and ensuring that the franchisor’s systems and methods are applied.

MULTI-UNIT FRANCHISEE

a franchisee who has been granted the rights to run more than one franchise outlet. Not every franchise system allows for franchisees to be multiple operators.

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. 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. is the area assigned to franchisees for their business. Territories can be exclusive or nonexclusive. 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.

NOV/JAN 2020-2021 | 89 | WWW.FRANCHISEBUSINESS.COM.AU

FRANCHISE BASICS FRANCHISE BASICS

BUYING A FRANCHISE:

THE PROCESS

It can take three months or 18 months to find and open up a franchise.

This is the typical path that will take you to franchise ownership.

1. MAKE AN INQUIRY

2. FRANCHISOR RESPONDS

3. FIND OUT MORE

4. CONFIDENTIALITY

5. FIRST MEETING

6. CONDUCT DUE DILIGENCE

7. PROVE YOURSELF

8. OTHER STEPS

9. DON’T RUSH IT

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

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.

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.

If you have emailed an inquiry, typically a franchisor will send out an information pack to you, and follow this up with a phone call.

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

Some brands can include a number of interviews, try-before-you-buy work experience or a panel review.

The franchisor might ask you to complete a profiling assessment.

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

This is a crucial stage, so take your time and be thorough in your research. You will need to sign a document confirming that you have received independent advice, or that you have decided not to do so.

Obtaining expert opinion from franchise-experienced professionals can save you money in the long term, so it is a worthwhile investment.

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.

NOV/JAN 2020-2021 | 90 | WWW.FRANCHISEBUSINESS.COM.AU

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.

in the company’s long term success.

Any funding for marketing or development initiatives will be approved by the CFO. The CFO manages the finance and accounting divisions and takes responsibility for the accuracy and timeliness of the company’s financial reports.

CHIEF EXECUTIVE OFFICER/ MANAGING DIRECTOR

A CIO has responsibility for the implementation, management and efficacy of information and computer technologies, vital in today’s digital world.

It’s the CIO who will investigate the benefits of any proposed technological change, and then implement the system - a website or inventory software, for instance.

The role is increasingly strategic and directed to gaining and maintaining the competitive advantage of a business.

The top ranking executive in a company, the CEO is focused on directing high level company strategy and growth.

In a smaller company, the CEO’s role includes operational business decisions and they may be much more hands-on on a daily basis.

In a larger business the CEO may have a position on the company’s board, and act as the link between corporate operations and the board of directors.

The founder of a franchise typically takes a CEO role.

CHIEF MARKETING OFFICER

CHIEF OPERATING OFFICER/ OPERATIONS MANAGER

A COO/operations manager essentially works with the CEO to implement the strategy, making the decisions on how to achieve the goals set out. The role is typically responsible for daily operations, production, research and development, creating operational policies, and HR. The operations manager can influence the franchise business performance through resource allocation, cost reduction, improved efficiencies, the introduction of high quality products and services.

In a franchise where the founder is the CEO, the COO may be the more experienced executive.

CHIEF FINANCIAL OFFICER

CHIEF INFORMATION OFFICER

This senior executive reports to the CEO but plays a strategic role in the way the company manages its finances, investments, and capital structure and is influential

The CMO is essentially charged with increasing revenue through increased sales using market research, product marketing, pricing, marketing communications, advertising and public relations.

Responsible for directing the planning, development and implementation of the franchisor’s marketing and advertising campaigns, ensuring a common message across multiple channels and platforms, the CMO reports directly to the CEO.

GENERAL MANAGER

A general manager has overall profit and loss responsibility for the company, and usually oversees sales, marketing and daily business operations.

The responsibilities of the role may be incorporated into a CEO role.

FRANCHISE RECRUITMENT MANAGER

The franchise recruitment manager is responsible for attracting franchise buyer enquiries and for the recruitment selection process, increasingly working with managers from other divisions and

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.

NOV/JAN 2020-2021 | 91 | WWW.FRANCHISEBUSINESS.COM.AU

FRANCHISE BASICS FRANCHISE BASICS

30

THINGS TO CHECK R BEFORE YOU INVEST

Get set prior to your purchase with our easy checklist.

Just tick off the must-do items.

Are you confident in the franchisor?

Have you worked out your operating costs?

What are the franchisee and franchisor obligations?

Have you seen a disclosure document?

Do you know the term of the agreement?

What training is available and who pays for it?

Is the franchisor compliant with the Franchising Code of Conduct?

Do you need a permit or license to operate the business?

Who owns the intellectual property and what is licensed to the franchisee?

Have you run a credit check on the franchisor?

Is the business operating from fixed or mobile premises?

What marketing will the franchisor implement?

Does the franchisor have a history of litigation? Are there any cases coming up?

Have you checked the lease? Is there a right to renew?

What marketing is your responsibility?

If you are buying an existing business, have you seen current financial statements (balance sheets, profit and loss, tax returns)?

Does the length of the lease match the franchise term?

What is the dispute resolution process?

Have you evaluated the financial returns?

What are the store fit-out costs?

Do you know what it is like to be a franchisee?

If you are buying a greenfield (brand new) site, do you have sales and profit examples and know the method behind the calculations?

Are you working within a territory? If so is the area exclusive?

Do you have an exit plan?

Do you know all the expenses franchisees are required to pay?

Are you restricted in your product purchase?

Have you spoken to former and current franchisees about the business?

What royalties are there and how are they calculated?

Are you required to reach a minimum performance level?

What restrictions are there on the franchisee and guarantor operating a similar business?

NOV/JAN 2020-2021 | 92 | WWW.FRANCHISEBUSINESS.COM.AU

RESOURCES AUSTRALIAN COMPETITION AND CONSUMER COMMISSION (ACCC)

FRANDATA

The ACCC is an independent Commonwealth statutory authority which regulates the mandatory Franchising Code of Conduct (Code) and can investigate alleged breaches of the Code.

The ACCC is responsible for enforcing the Competition and Consumer Act 2010 as well as legislation, promoting competition, fair trading and regulating national infrastructure.

Its role is to protect, strengthen and improve the way competition works in Australian markets and industries.

FRANdata is the home of the Australian Franchise Registry which identifies franchise brands that have up-to-date franchise agreements and disclosure documents, and which have confirmed with the Registry their compliance with the Franchising Code of Conduct.

FRANdata also provides reports on the franchising sector.

Well established in the US since 1989, the business was established in Australia in 2013 to help the franchise sector address key strategic challenges and take advantage of opportunities available to qualifying brands.

Visit: WWW.ACCC.GOV.AU

Visit: WWW.FRANDATA.COM.AU

BUSINESS.GOV.AU

FRANCHISE.ED

This website is an online government resource for the Australian business community which gives the public access to government information, forms and services for all things business. It is aimed at assisting individuals or a group of people to plan, start and grow their business.

New business owners can access the advice finder, events calendar, grants and assistance finder, a directory of government and business associations, planning templates, business videos, and business checklists.

Business topics include emergency management and recovery, finance, recruitment, environmental management, fair trading, taxation, online business, franchising, importing and exporting, intellectual property and training Visit: WWW.BUSINESS.GOV.AU

FRANCHISE COUNCIL OF AUSTRALIA

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

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

Visit: WWW.FRANCHISE.ORG.AU

FRANCHISEBUSINESS.COM.AU

This is the online arm of the Inside Franchise Business publication. Both platforms are focused on providing essential advice and information for anyone looking to invest in a franchise. The website provides short and snappy business tips and news, video interviews, industry commentary and market reports.

FranchiseBusiness.com.au lists franchising opportunities available in Australia. Potential franchisees looking to move into the franchising sphere can explore opportunities that currently exist in the market and enquire about the franchisor or brand.

Users also have access to franchise consultants and advisors who can assist prospective or existing franchisees and franchisors with legal, financial educational and training, IT and other services.

Franchise.ED (previously Asia-Pacific Centre for Franchising Excellence) was created to help people find independent information and research on franchise best practice.

FranchiseED is a Not for Profit which provides education to encourage best practice; provides consultancy services; and provides access and dissemination of quality franchise research.

The revenue generated by these programs will help support the social enterprise programs of FranchiseED. It extends upon the work undertaken previously by the Franchise Centre at Griffith University with the transformation into FranchiseED. Visit: WWW.FRANCHISE-ED.ORG.AU

THE FAIR WORK COMMISSION

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

The Commission is the independent national workplace relations tribunal. It is responsible for maintaining a safety net of minimum wages and employment conditions, as well as a range of other workplace functions and regulation.

The FWO enforces compliance with the Fair Work Act, related legislation, awards and registered agreements. It also helps employers and employees by providing advice and education on pay rates and workplace conditions.

Visit: WWW.FAIRWORK.GOV.AU

Visit: WWW.FRANCHISEBUSINESS.COM.AU NOV/JAN 2020-2021 | 93 | WWW.FRANCHISEBUSINESS.COM.AU

Phone: 1300 287 669 Contact: Chris Longley franchising@ats.com.au www.appliancetaggingservices.com.au

Contact: Franchise Development Managers Shayne Boogaard, NSW Brett Reading, QLD 0407 877 674 0418 136 156 bzr@7eleven.com.au szh@7eleven.com.au

A-Z LISTINGS

Edris Mukarram, WA 0436 658 741 ewm@7eleven.com.au

Peter O’Hara, VIC 0408 175 534 pwo@7eleven.com.au

Start up costs from: $57,000 + GST

Start up costs: $400,000 to $1,000,000 PROFILE: Looking for your next move? Your opportunity awaits with 7-Eleven Australia.

7-Eleven operates a growing network of more than 700 stores in Victoria, New South Wales, the Australian Capital Territory, Queensland and Western Australia.

A franchise with 7-Eleven means owning your own business with a success proven model and the ability to create a work-life balance that suits you.

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. It’s your opportunity to be a part of your local community, interact with customers every day, and build something that’s yours. We’ll help you at every step of the way, from setup and training, to marketing and even bookkeeping, we’ll help turn your new investment into a solid investment.

PROFILE: Looking for a franchise with on-going repeat business, large territories and access to an existing client base to get you started?

ATS are Australia-wide specialists in Electrical Testing and Tagging in accordance with AS/NZS 3760:2010. Providing expert technical, admin, business and sales support, access to our National client base and comprehensive on and off-site training, ATS are committed to helping its 56 franchisees grow profitable and successful businesses.

No prior electrical experience is required - just a passion for safety and a commitment to growing your business. With low entry fees and minimal franchisee administration, an ATS franchise may just be the opportunity for you.

Phone: 07 5509 0000 Contact: National Franchise Sales Executive franchise@australianskinclinics.com.au www.australianskinclinics.com.au/franchise

Phone: 1300 361 397 Website: www.aussie.com.au/business-opportunities

Start up costs: Starting from $150,000 PROFILE:

PROFILE:

Your business, your way

Put your trust in our 22 years’ experience and join the booming cosmetics industry today with an Australian Skin Clinics franchise.

Become an Aussie Franchise supported by industry leading training and mentoring in a location you want to be.

As a franchisee, you’ll receive your Cert IV in Finance and Mortgage Brokering and be accredited with our panel of lenders. You get your own territory to build your business from scratch or find an existing franchise for sale. You’ll also have access to a range of e-learning, face to face development, online training, videos and webinars - your success will only be limited by your effort.

Ready to take the next step? Get in touch with us today!

Australian Skin Clinics are one of Australia’s longest standing medi-aesthetics franchise networks and are leaders in advanced skin treatments, laser hair removal, cosmetic injectables and fat reduction.

We’re looking for highly motivated professionals to join our rapidly growing franchise network, with some fantastic opportunities now available!

Our promise to Franchisees is to remain at the forefront of the medi-aesthetic industry, by driving treatment and product innovation while continuing to grow and set the industry benchmark in excellence. Join the Bluevment today!

We’re the ones in blue!

Phone: 03 6210 5000 Contact: Shaun Goodwin sgoodwin@banjosrc.com.au banjos.com.au

Phone: 1300 920 875 Contact: support@bizcover.com.au www.bizcover.com.au

Start up costs: $250,000+ PROFILE: Banjo’s is an Australian company providing great wholesome food and excellent customer service in a welcoming, contemporary environment.

The bakery café leader in Australia, our success is in the baking – we consistently make the best quality products and our customers come back again and again.

Our customers are our focus and it is through our connection with the people in our communities we build a strong local following.

We have developed a strong sustainable business model and are continuing strong balanced growth whilst not losing touch with the small things that got us here in the first place.

• Independence of owning your own business.

•

Be part of a successful franchise operation • Access to Banjo’s specialised systems • Buying power with key suppliers • Marketing, HR and IT support • Hands on business support and advice • Continual product and systems development • Ongoing training and development • No qualifications are required however it would be beneficial to have a certificate in retail, management, baking or sales.

Banjo’s are seeking interest for Queensland, Tasmania, Victoria and New South Wales.

Contact us for more information.

A-Z L I S T I N GS

FOR A-Z LISTINGS ENQUIRIES CONTACT:

PROFILE: BizCover is Australia’s largest online business insurance service for Australian SMEs. Through the BizCover platform you can compare quotes from up to 7 insurers (including QBE, AIG, Hollard, Vero, Berkley & Dual) and get your cover online in minutes. Over 120,000 SMEs currently trust BizCover to insure their business with cover including Public Liability, Professional Indemnity, Business Packs, Management Liability and Cyber Liability.

Phone: +61 (3) 8593 45 46 Contact: Ali Kurtdereli boostinfo@retailzoo.com.au www.boostjuice.com.au/franchising Start up costs: $220,000-350,000 plus GST PROFILE: Boost Juice is one of the world’s most famous and loved smoothie and juice brands.

With its winning combination of fresh fruit and love life ethos, Boost Juice offers a healthy alternative to fast food and strives to have customers leave feeling just that little bit better. For further information regarding franchising with Boost, get in touch with Boost franchising today!

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

NOV/JAN 2020-2021 | 94 | WWW.FRANCHISEBUSINESS.COM.AU

Phone: 0432 244 136 Contact: Jarryd Cayfe jarryd.cayfe@burritobar.com.au www.burritobar.com.au

Phone: 1300 CELEB INK Contact: franchising@celebrityink.com www.celebrityink.com Start up costs: POA

Start up costs: $150,000 - $400,000 (location and size dependant) PROFILE:

PROFILE:

Established in 2011, Burrito Bar was inspired by the streets of San Francisco, where traditional Mexican street food meets art to create a wholesome experience. The diverse and flavoursome menu and extensive bar offering make Burrito Bar a leader amongst Mexican restaurants.

Celebrity Ink™ is the biggest and most trusted tattoo brand in the world. Established in 9+ countries in 20+ locations, Celebrity Ink™ boasts a proven sustainable competitive advantage delivering above-average financial returns for investors, entrepreneurs and more.

Our strategic, adaptable, supportive and locally responsive approach to franchising, which puts Franchise Partner sales, profitability, return on investment and success at the centre of everything we do has seen our restaurants continually grow.

Burrito Bar is accredited and pre-approved with several lenders, so obtaining finance is simple and straight forward.

No experience is necessary as full training and ongoing support is provided at every step of the way.

The tattoo industry is a culture in itself and Celebrity Ink™ has established a brand that is globally recognised. A Celebrity Ink™ studio is like no other - its modern and open space allows clients from all walks of life to feel welcomed and most importantly, comfortable in their environment.

Celebrity Ink™ is renowned for its impeccable hygiene, a unique and compelling customer experience and quality tattoos - This has positioned Celebrity Ink™ to become an industry leader globally. With a loyal following of more than half a million and growing, it is no surprise that Celebrity Ink™ is the chosen franchise business model for many budding entrepreneurs and investors. No industry experience is required to get started. It’s now time to Make Your Mark with Celebrity Ink™.

Phone: 0412 511 630 Contact: Kevin Bugeja kevin@franchise4u.com.au www.cowch.com.au Start up costs: $500,000 - $700,000

Phone: 07 5591 3242 Contact: Kellie Cranch Kellie.cranch@rfg.com.au donutking.com.au Start up costs: $ 180 000 - $ 350 000

PROFILE:

PROFILE:

Cowch combines a love for desserts and fun cocktails to bring you Queensland’s original Dessert Cocktail Bar.

Our product mix consists of Donuts, Barista made coffee, hot dogs, milkshakes and sundaes. We focus on mass market appeal, operating mainly in shopping centres and have a very broad customer base.

Established in 2014 by husband & wife duo, Arif & Havva Memis, Cowch quickly became a hit amongst customers, media and celebrities for it’s unique menu, eclectic décor, friendly staff and Instagrammable spaces.

fun cocktails to bring you Bar. Cowch offers a one of kind experience for people of all ages to enjoy in venue or at home with takeaway and delivery available via Deliveroo, UberEats and

uo, Arif & Havva Memis, DoorDash.

The brand is continuing to grow and is currently franchising. stomers, media and Enquire now at www.cowch.com.au/franchising décor, friendly staff and

r people of all ages to and delivery available via brand is continuing to

chising

What we require: •

No previous experience required, although we would prefer if you had food or retail experience.

•

Full six week training program will be provided

Visit our website for more information about franchising.

Phone: 0420 939 328 Contact: Jarrod Montigue jarrod.m@emirateslr.com.au hudsonscoffee.com.au

Phone: 1300 097 857 Contact: Franchise Sales Team Sales.au@inxpress.com au.inxpress.com/franchise-opportunities Start up costs: $64,950 + GST

Start up costs: $200 - $500k PROFILE:

PROFILE: Our passion for coffee is at the heart and soul of everything we do, and we pride ourselves on maintaining consistently high standards across our entire network.

Having great people who pride themselves on operational excellence is the key to delivering a strong brand, network growth and most importantly a loyal customer base.

We offer contemporary and modern store environments that have been embraced by our customers in a range of strategically selected locations, including central business districts, regional areas, airports and hospitals.

Contact: www.madmex.com.au/franchise franchising@madmex.com.au Start up costs: $375,000 to $550,000

PROFILE: Go to work fuelled by the knowledge you are a part of a rapidly growing global brand. One that lives and breathes its purpose: to inspire honest healthy living through fresh Mexican food. One with a strong growth strategy, focused on leading the way in delicious, healthy options with only the freshest produce available.

Do 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? Register your interest on our website now

InXpress is a global express logistics business with over 380 franchisees, located in 14 countries, providing consultative services and innovative software to SMEs. Founded in 1999, InXpress has a long history in managing successful businesses, with the know-how to train and support franchisees in running a sales and business management franchise.

InXpress has established strong relationships with global courier partners, providing access to highly competitive rates, leaving you free to concentrate on sales and build your own successful and profitable start-up business: • Recession-resistant, essential services industry • Low entry and ongoing costs • Proven model for over 20 years, constantly evolving • Comprehensive training and ongoing coaching • No inventory, warehousing, vans or trucks • No employee base initially, opportunity to grow • Potential to earn unlimited passive income • Ability to work from anywhere!

For more information about becoming an InXpress Franchisee, contact us now

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

NOV/JAN 2020-2021 | 95 | WWW.FRANCHISEBUSINESS.COM.AU

A-Z LISTINGS

Phone: 13 MEGA (13 63 42) Contact: Franchise Recruitment Manager franchises@megasave.net.au www.megasave.live Start up costs: From $20,000 +GST

Phone: 0412 67 37 57 Fax: 03 9419 7735 robert@mmrb.com.au www.marshmaher.com.au

A-Z LISTINGS

PROFILE: PROFILE: Well recognised and published franchise specialist with over 30 years industry knowledge and experience.

Providing advice to: 1. International Franchisors and Franchising.

2. Master Franchising.

3. Dispute Resolution – Solutions and Strategies

4.

5.

6.

7.

8.

Franchisee Advice and fixed fee reports.

Sale/ Purchase of franchise systems.

IP/ Trademark advice.

Company structures and tax advice.

CCC and Consumer Law advice.

Ozwide Couriers t/a Megasave Couriers are the new franchised parcel delivery service company, offering the most affordable parcel delivery domestically. Owned

by Australian business owners for Australian business owners and businesses.

Ozwide Couriers t/a Megasave Couriers are Australian Family Owned, Supported & Operated.

As a Franchise partner with Ozwide Couriers t/a Megasave Couriers, you will be out delivering parcels to residential customers predominantly. With your exclusive territory to operate, you have the freedom to identify prospective customers and be the face of your territory.

We provide clients fixed fees based on the scope of work.

Contact Robert Toth on 0412 67 37 57 or by email at robert@mmrb.com.au

Phone: 1300 646 324 Contact: Doug Downer douglasdowner@mindchamps.org au.mindchamps.org

Phone: 1800 809 913 Fax: 03 8699 1555 Contact: Anna Goncalves franchising@questapartments.com.au www.questfranchise.com.au

Start up costs: $650,000+

Start up costs: $750,000 upwards

PROFILE: MindChamps grew from a vision to provide the world’s best early childhood curriculum and care. Its intent is to give every child the opportunity to become the best they can be by developing the ‘Champion Mindset’.

PROFILE: Quest Apartment Hotels is the largest and fastest growing apartment hotel operator in Australasia, with a network of over 170 franchised properties across Australia, New Zealand and Fiji.

MindChamps invests in innovative research, development, and training, so that children have access to quality curriculum, teachers and resources.

For 30 years, Quest has provided convenient locations, reliable standards and flexible living conditions for extended stay business travellers.

With over 80 centres operating globally, we are poised to grow in the Australian market through franchising where we bring aligned individuals into the business and give them the opportunity to change the world, one franchise at a time.

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: 1300 549 200 Contact: Kevin Bugeja kevin@franchise4u.com.au walkersdoughnuts.com.au

Phone: +61 492 837 020 Fax: +1 416 646 0366 Contact: Greg Sweney opportunity@tutordoctor.com www.tutordoctoropportunity.com 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 700 locations around the world, Tutor Doctor has changed the lives of 300,000+ people by helping them achieve their academic goals.

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

Start up costs: $175,000 - $300,000 PROFILE: At Walker’s Doughnuts, we create the World’s Tastiest Doughnuts! Soft, melt in your mouth Pillows of Perfection; our Doughnuts are created by Doughnut Lovers for Doughnut Lovers.

Now it’s your turn to own a piece of something special. A simple model with absolutely no baking in store; just filling, decorating and displaying. Our famous varieties include our signature Vanilla Glazed, Boston Cream, Bavarian Custard Cream, Triple Choc, French Toast, Rocky Road, Raspberry Cheesecake and many others. Our Hot Jam Doughnuts are freshly cooked to perfection and available all day long!

But that’s not all! Together with our award-winning Black Rose blend, our Classic Hot Dog flavours, Traditional Milkshakes and speciality Heritage Sodas imported exclusively from the USA, you’ll find us an unbeatable and irresistible offering.

Franchising in Victoria and NSW with opportunities available nationwide!

Inside Franchise Business Executive is a dedicated resource for franchise professionals It provides essential news, opinion and expert advice, alongside a suppliers directory.

Visit our website to find out more!

executive.franchisebusiness.com.au

NOV/JAN 2020-2021 | 96 | WWW.FRANCHISEBUSINESS.COM.AU

FINAL WORD

BEHIND THE SCENES Three franchisees share why they love the brands, and the business.

BHAVIN SHAH, INXPRESS

Bhavin Shah is a multi-award-winning franchisee with InXpress, operating the Wanneroo, Western Australia, franchise.

He has just received the brand’s Franchise of the Year Award for 2019, scored top spot for Highest Margin Growth and was ranked third for Highest New Customer Activations.

An IT engineer who moved into sales and business before joining the InXpress network in January 2018, Bhavin has experienced rapid business growth and has shown incredible commitment to the continued development of his business.

Bhavin started out as an IT engineer, but naturally gravitated towards sales and business development.

CHOOSING INXPRESS “I made a checklist of what I wanted in my own business – to generate passive income, to give me time with my young family, to provide a challenge and something I had never done before.”

Bhavin signed up for an InXpress franchise in February 2018. Just two months later he was attending the franchisee boot camp, the first step to building his own business.

With no experience of the freight and shipping industry Bhavin found the boot camp gave him extensive knowledge of the business, its place within the logistics chain and how the processes and business structure work.

“I enjoy the work-from-anywhere lifestyle and the flexibility that it gives me to operate (almost) at my own hours.”

MICHAEL BEVILAQUA,

POONAM YADAV,

Working as a franchise relationship manager has been a decade’s dedication for Michael Bevilaqua. But now he’s also the proud owner of a franchise himself.

“I’ve dreamed of owning my own business since I was a kid, and it’s something my wife and I have discussed for years now,” he says.

Michael and his wife Angalene own and operate Quest South Perth Foreshore. Behind the scenes are business partners and existing Quest Alice Springs franchisees, Wen Qing Zhao, Bing Feng and Bei Wang.

Michael has seen first hand the way the business operates, and the level of support provided for franchisees.

“Working as a Quest franchise relationship manager over the last decade I’ve had the opportunity to meet, work and learn from many inspiring people, and develop a detailed understanding of the business model,” he says.

So he knew when it was the right time to buy, that an investment in the Quest business would be the way to go.

“We looked at many different opportunities, but our passion has always been hospitality and accommodation.

With three kids, we wanted to ensure that the time was right, which thanks to supportive friends, family and business partners, it now is,” he explains.

Poonam Yadav loves the brand so much she has just bought her third store in Queensland.

Poonam has added the Rothwell outlet to her two existing Battery World stores in Morayfield and Indooroopilly. She’s a big advocate for the brand’s role in the community.

“I have been a part of the Morayfield community for many years, and our store has been servicing locals for a long time, and during this time I realised the untapped potential of Battery World and our services to help those within the surrounding areas too,” she explains.

“Over the past few months, we’ve had an influx of customers wanting to support and buy local, and in building more personal relationships with our customers realised the increasing demand for our services.

“Battery World’s vast range of battery solutions has set up us for success acquiring a store close to the water. This allows us to focus on marine battery solutions and to offer our wide range of services; everything from roadside assistance, to our product knowledge, to more customers within the territory.

“We are excited to tackle this new challenge and broaden our ability to deliver sustainable, high-quality Aussie-made battery solutions and expert advice to those who need it, when they need it.”

QUEST APARTMENT HOTELS

BATTERY WORLD

NOV/JAN 2020-2021 | 97 | WWW.FRANCHISEBUSINESS.COM.AU

Advertorial

All tHE

iNgrEdients yOu neEd tO RUn A GReat bUsiness.

Fresh, healthy Mexican food.

A growing brand.

Global footprint.

Mad Mex is a leading fresh and healthy brand in the fast casual category. We serve Baja-style Mexican food made with authentic and fresh ingredients. And we do all this in a chilled, fun, fiesta inspired atmosphere.

For over 10 years, Mad Mex has been an award winning franchise concept recognised for its fast growing potential, ROI and successful business model.

BECOME YOUR OWN HEAD HONCHO! franchising.madmex.com.au