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April - May 2013

Made in Australia - Pole Princess:

Franchisee Princess, Jas Ang

7 reasons

- Why being a

franchisee is better than starting your own business alone

Buying assets for your business - Get ready for tax time!

In the spotlight... Inkspot, The Gold Club, GJ Gardner Homes and Lightsounds

Have you told your colleagues about Franchise Magazine?


ranchise magazine | contents

what’s in the mag >> Regular Features 04 A Quick Word With Nick James

16 The International Stage

Franchising news from around the globe

24 Made in Australia

Pole Princess Franchisee: Jas Ang

Features and Articles 36 7 Reasons to be a Franchisee Aa

44 Buying assets for your business Make tax time work for you

Business Corner 48 Last Words Your say on franchising

50 What’s On?

Franchising Events Calendar

52 About Franchise Magazine Contact information and more

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Franchises in the Spotlight 20 Inkspot Making a splash with international franchising

30 The Gold Club

A sparkling business opportunity

34 Vulcano Gelato

A mouthwatering franchise with to-die-for gelato!

40 Lightsounds

A bright franchise worth making some noise over

Hot off the Press 06 Home Timber and Hardware Hardware store of the year

08 Amber Tiles Goes pink for May

12 Cafe2u

Instant coffee in decline as mobile baristas prevail

14 Betta Home Living

Change direction with a new branding strategy

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ranchise magazine | a quick word

a quick word with Nick James >> Welcome to another edition of Franchise Magazine! In this edition, we are still in a franchise spin and caught up with Jas, another Pole Princess franchisee to see what her experience has been like as a franchisee in our Made in Australia feature. After chatting with Stephanie last edition and Jas this edition, I must say Pole Princess franchisees are some of the cheeriest franchisees out there! And if that isn’t motivating enough to make you want to own a franchise, I give you 7 more reasons this edition in my article which is only a small selection of the many benefits of franchise ownership. Let’s not forget it’s getting close to tax time so we got Colin Buston of Taxnet.com.au in to tell us about buying assets for your business and how to take advantage of all the tax benefits. Also in this edition, as always we’ve put a few franchises in the spotlight. This edition, Inkspot, Lightsounds, Vulcano Gelato and The Gold Club!

Enjoy this edition of Franchise Magazine and until next edition, Keep safe and cheers for now! Nick and the team at Franchise Central.

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ranchise magazine | hot off the press

HOME TIMBER & HARDWARE CROWNED ‘HARDWARE STORE OF THE YEAR’ Home Timber & Hardware has been crowned the

2012 ‘Hardware Store of the Year’ at the recent Roy Morgan Customer Satisfaction Awards, in a hard fought battle against other leading hardware brands for the title. Based on a survey of over 50,000 consumers annually – the world’s largest ongoing single source survey – the Awards recognise Australia’s top businesses in customer satisfaction and are an industry-renowned barometer for Australian retailers. Respondents to the Roy Morgan Customer Satisfaction Survey were all asked the same question, “How satisfied are you with the product or service?” regardless of category, making the Award win comparable across a wide range of categories. “To be awarded one of Australia’s top retail brands for 2012 is an honour for Home Timber & Hardware,” said General Manager Home Timber & Hardware Group, Mark Burrowes. “We sit amongst some great company and it’s exciting to know that independent research backs up our own findings – that Home leads the industry in customer satisfaction.”

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Beating other hardware brands such as Bunnings, Masters and Mitre10 for the Award, Burrowes said the number-one ranking highlights the group’s key strengths and was proof that Home’s ‘Go Where The Tradies Go’ brand positioning is connecting with customers. “Home’s advice, expertise and customer service is what attracts so many trade and DIY customers to our stores. Our customers know when they walk in the door of a Home store they will be served by helpful staff with the right product knowledge and advice,” he stated. Burrowes believes the win is testament to the passion and commitment of Home Timber & Hardware’s store owners and staff to deliver their customers the best in-store experience day after day. “We’ve built a unique set of credentials around knowledge, help and service. This win is for our staff who are clearly industry leaders in the way they interact with customers. It’s an exciting time at Home Timber & Hardware as we continue to strengthen and grow our presence in the market.”

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The Home Timber & Hardware network has seen a 15 per cent rise in store numbers over the last two years, with independent hardware retailers looking to access the group’s industry-leading marketing programs, global sourcing and buying power, innovative supply chain systems and best-practice retail support services. Home Timber & Hardware is part of the Danks group, a wholly owned business of the Home Improvement joint venture between Woolworths Limited and Lowe’s Companies Inc. The joint venture is committed to building an integrated, multi-format offer in the hardware and home improvement space incorporating Masters big-box stores and Danks’ hybrid model of independent and company-owned stores across the Home Timber & Hardware, Thrifty-Link Hardware and Plants Plus Garden Centres.

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ranchise magazine | hot off the press

AMBER TURNS PINK FOR MAY Amber

is adding some blush and turning pink this May, hosting a number of fundraising activities throughout the month in support of the McGrath Foundation and Australian families experiencing breast cancer.

“Throughout May, we encourage everyone to assist Amber in raising awareness and support for the McGrath Foundation by coming into our stores, talking to our pink-clad staff and participating in our family-friendly local events,” said Vanda.

Pink-inspired activities throughout May include local store and supplier events, Amber’s first ‘Pink Sale’, weekly gold movie pass giveaways to the highest donors, infusing stationery and stores with the colour fuchsia, branding Amber staff attire and providing McGrath Foundation merchandise and donation tins within stores.

At the end of the month, Amber will host a supplier pink event showcasing Amber’s new marketing direction to key suppliers and will recognise and award the supplier, franchise and individual who raised the highest amount of funds for the McGrath Foundation.

Vanda Correia, Amber’s Head of Marketing, explains the whole organisation is excited to infuse the Amber brand with the colour pink and raise awareness and funds for a worthy cause.

Individuals will be able to directly donate online to Amber’s fundraising page on GoFundraise www.mcgrathfoundation.gofundraise.com.au/ page/Ambertiles

“The McGrath Foundation continues to provide much-needed support for families experiencing breast cancer within Australia,” said Vanda. “It is fantastic that Amber can befriend such a great charity and we look forward to the exciting changes when ‘Amber goes Pink’!” In-store changes include pink corflutes and posters, co-branded pink staff attire, fuchsia-coloured invoice paper and fuchsia QR code cards that link back to Amber’s McGrath Foundation donation page when scanned. Amber’s ‘Pink Sale’ caters to every renovators’ dream with up to 20% off selected tiles and pavers across all NSW and QLD stores. From the 17th – 19th of May, home renovators will save with Amber’s extensive discounts on a range of products including new collections, feature tiles, natural stone products and more. 8 | April - May 2013

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ranchise magazine | hot off the press

Mobile baristas benefit from instant coffee’s decline in popularity

Traditionally, instant coffee has been a workplace staple for its convenience-factor and ease of preparation for busy individuals. However, the latest Roy Morgan State of the Nation report suggests that there has been a significant decrease in the proportion of Australians who are purchasing instant coffee. The report suggests that in the fiveyear period leading up to June 2011, the number of Australians that purchased instant coffee in an Approximately 10.4 million Australians (56% of average four-week period declined from 47 per the population aged 14+) consume coffee in an cent to 43 per cent. average week, suggesting that Australia almost Identifiable trends such as our ever-increasing more than any other is a nation full of coffeepenchant for being ‘coffee snobs’ point strongly drinkers. to this figure having continued to plummet in the However, recent studies have shown that the interim to now. landscape of coffee consumption in Australia The same report concludes that there has been a is changing, with consumers becoming more significant increase in the consumption of fresh, discerning about the type of coffee they are barista-made coffee with fresh coffee purchases drinking. There has been a shift away from instant increasing from 24 per cent to 26 per cent. Once coffee, and a move towards high quality barista- again, this is a figure most likely to have significantly made coffee, particularly in the workplace. increased.

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This steady decline in instant coffee and the trend towards barista-made coffee is probably most evident in the average Australian workplace, with employees prepared to leave the office and pay a visit to their local barista rather than drink instant. The trend has seen the market for mobile coffee vans boom, as barista’s now producing caféquality coffee come to the time poor professional, instead of the other way around. Australian-owned international mobile coffee franchise Cafe2U is enjoying unprecedented popularity, producing over 6 million coffees for its Australian customers every year.

With Mercedes Benz vans housing state of the artcoffee making equipment, Cafe2U vans are invited to pull up outside of work places and provide a service once restricted to a coffee shop. “The figures show that coffee palettes are maturing and members of the workforce are willing to leave work to get a decent coffee in place of having an instant coffee”, said Derek Black, the Managing Director of Cafe2U.

“However being busy, workers might not always find the time to get to a café. Mobile coffee businesses such as Cafe2U are thriving in this current climate because we can bring this barista New Cafe2U Franchise Partner Shell Wilson from service directly to the worker. They can save time Armadale has continued the franchises growth in without compromising on quality ” added Black. WA, after identifying a sound business opportunity with an income guarantee of $500. “That guarantee instilled a lot of confidence in the brand and I have a Franchise Coach helping me launch the business here, including helping me find customers and develop business routines. That’s been the biggest relief.”

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ranchise magazine | hot off the press

Betta take a new direction with new branding strategy National franchisor BSR Group has announced

“These measures are part of our transition from its new branding strategy at the company’s being the electrical retailer we once were to being a lifestyle destination retailer.” annual conference in Hong Kong. Around 250 retailers and suppliers attended the Betta is also a supporter of the Olivia Newton-John “That’s Betta” conference which was held recently Cancer & Wellness Centre in Melbourne. at the Langham Place Hotel. Mr Cunningham said Betta had experienced positive BSR is rebranding its stores under the new Betta results over the past year, with increased revenue Home Living name to reflect its expansion into allowing for a greater proportion of income to be homewares and furniture. The brand had previously returned to retailers. been known as Betta Electrical. “The group’s benchmark “pass-back” indicator BSR Group Chief Executive Officer Graeme is expected to exceed an unprecedented high Cunningham announced Betta Home Living had percentage of total income returned in FY2013.” launched a “That’s Betta” marketing campaign aimed at highlighting the group’s move into the This is a reflection of the reduced cost of doing business as overheads are closely monitored. homewares category. “We’ve expanded by 80 new stores over the last year,” he said. “And last year we had 20 stores in furniture and now we have double that, with even more stores set to come on board in the coming months. “The next step in the program is to invest in the brand while we continue to roll more stores over into Betta Home Living.” Betta will continue to be a major partner of the Brisbane Heat cricket team. Alongside this, Betta has also secured other sports associated sponsorships with affiliations to the Melbourne Cricket Ground. These sponsorships are in addition to cricketing legend Matthew Hayden teaming up with Betta as its ‘Captain of Cooking’ to help promote better cooking and lifestyle solutions.

“We’ve been tracking above what the market has been doing,” he said. “There’s a more positive feel out in the marketplace and I think the next 12 months will be better than the last.” Mr Cunningham said the conference had been held to coincide with the Hong Kong Houseware Fair, Asia’s largest houseware fair. “We’ll certainly be looking at other categories and investigating opportunities to further the Betta Home Living brand while we are here,” he said.

“Victoria is now our biggest state with around 60 stores. Betta signage at the M.C.G. as well as at “In particular we’ll be concentrating on the cooking The Gabba in Brisbane, will help boost awareness market, hence our partnership with ‘Captain of of who we are,” Mr Cunningham. Cooking’ Matt Hayden.” 14 | April - May 2013

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ranchise magazine | the international stage

international stage franchising news from around the globe >> Smiles all round the world

Kid to Kid pays over $11 million to customers in 2012

Australian pie franchise, Pie Face have announced plans for further international expansion, adding India and Indonesia to the Kid to Kid, US children’s and list. This comes after Pie Face announced plans maternity resale franchise, to expand to New Zealand late last year and announced the franchise launched in the USA this January. funneled more than $11 million into the pockets of “We are also in discussions with a couple of thousands of customers major groups in the Gulf Cooperation Council around the country, fueling regarding UAE, Saudi Arabia, Kuwait, Qatar and Bahrain, and we are very close on a joint the economy in 23 states. The resale report, an analysis venture in the UK.” said Pie Face co-founder, of last year’s statistical Wayne Homschek. figures, states in 2012, Kid to Kid purchased more than 7 million items from local families in 76 stores across the United States.

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The future of ice cream for Japan Dippin’ Dots, the self proclaimed ‘ice cream of the future’ have set their sights on Japan for their next move in international expansion as the ice cream industry continues to soar with the signing of a joint master licensing agreement with Wellness Hanshin in Osaka, Japan, for the exclusive marketing and distribution of Dippin’ Dots products throughout Japan. “The global ice cream industry is expanding at a healthy pace with strong year-on-year growth trends for consumption,” says Dippin’ Dots president, Scott Fischer. www.FranchiseMagazineOnline.com.au | FRANCHISE MAGAZINE

A slice of New York for Dubai Russo’s New York Pizzeria has made moves into the international market in Dubai with the opening its first store outside of the USA. “There is nowhere else we’d rather bring our first restaurant outside of the United States than right here in the UAE where people demand the best. Russo’s New York Pizzeria delivers on its promise to serve the best New York pizza ever made,” Russo said. April - May 2013 | 17


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ranchise magazine | spotlight: inkspot

Making a splash for intern

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national franchise opportunities Regardless of language or nationality, expensive ink cartridges that empty and need replacing far too quickly and environmental concerns is something that is globaly understood, this is why Inkspot are seeking both potential franchisees wishing migrate to Australia and potential franchisees wishing to start an Inspot franchise in their own home country. Inkspot franchisees are specially trained to refill customers empty ink cartridge so they perform as new. The average cartridge takes only 5-15 minutes to refill using our specialised cartridge refill and testing equipment, saving customers significantly compared to buying new cartridges, all whilst helping our planet by reducing landfill. Not only refilling empty ink cartridges, Inkspot is a leading retailer of all genuine ink and toner cartridges. Each store carries a wide range of very competitively priced genuine cartridges. Inkspot stores also carry a large range of Inkspot branded, compatible and remanufactured ink and toner cartridges to still save customers money when refilling an old cartridge just is not an option. All cartridges are fully tested to give you excellent quality print and cartridge life, whilst saving you up to 50% compared to OEM brands.

CLICK HERE to register your interest in an Inkspot franchise opportunity

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ADVERTISE HERE WWW.FRANCHISEMAGAZINEONLINE.COM.AU

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ranchise magazine | made in australia: pole princess cheltenham

made in australia Jas Ang,

pole princess franchisee >> Ever wondered what it would be like to be a Pole Princess franchisee, running your very own pole dancing studio?

Last edition we caught up with Stephanie Georgiou of Pole Princess Reservoir and this edition we catch up with Jas Ang of Pole Princess Cheltenham to give you greater insight in to what it is like (and what it takes) to be a Pole Princess franchisee. Specialising in bringing fitness classes in the form of dance to all kinds of women, at Pole Princess, you will find the opposite of the big, intimidating gym. The concept of Pole Princess is that of a boutique style health and fitness studio with the emphasis on performance art that provides a fun, friendly, motivating, supportive and caring environment where everyone is treated like a ‘superstar’ in their own right.

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Pole Princess Franchisor Anastacia Snelleksz explained how Pole Princess is always looking for innovative ways to take fitness to a new level, “We’ve now broadened our range with the introduction of classes to include Aerial Hammock and Tissu – that makes Pole Princess Australia’s first ever Aerial Hammock and Tissu dance studio!” Pole Princess is in the business of empowering performance art and celebrating womanhood. As the third business of its kind in Australia, Pole Princess is an established and proven business system that has experienced consistent results since initiation in 2006. More importantly, Pole Princess continues to lead the way in setting the industry benchmark by being the very first pole and exotic dance studio in Australia to incorporate programs recognised by Fitness Australia.

We caught up with Jas to find out what it is like to be a part of the Pole Princess success >>

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ranchise magazine | made in australia: pole princess cheltenham

G etting to know you...

Describe your personality to us. I would say I am positive, bubbly, friendly and driven. I like to have fun, be part of a team and to help others achieve. I think that is what makes me well suited to being a Pole Princess franchisee.

Why did you decide to become a franchisee? Having my own business with an already established brand and business model with its very own support team backing it every step of the way has been amazing and part of what drew me towards getting into business as part of a franchise. Knowing your business is part of something even bigger is fantastic and when opening your very own business for the first time, it’s very helpful and comforting to know there is a support team behind you helping you every step of the way and offering guidance to you as and when it’s needed.

What made you choose to join the franchise group you are with? I was first introduced to Pole Princess as a student. I did some classes with some friends as a regular catch up with the girls as it looked like fun, was something different and was something that was good for our health as opposed to going out for a few drinks or catching up over coffee and cake. I found the lessons to be a lot of fun. I gained a lot of confidence and saw my health continuously improve as a result of taking pole dancing lessons. I loved the results I saw in myself and I wanted to share this experience with others, to help them also improve their confidence and health in a way that is fun. Becoming a Pole Princess franchisee was the best way to achieve this new goal of mine! 26 | April - May 2013

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A sa

franchisee... How did you begin the franchise process? Pole dancing brought out the confidence in me and I feel that every woman out there should feel the same. It assisted me in not only losing 30kg and going from a size 16 to a size 10 but also presented itself as a very lucrative business opportunity. I began the franchise process by initially contacting Franchise Central and arranging a time to meet with Nick James. Although the step by step franchisee recruitment process was very thorough, it was also really simple and straight forward from start to finish. I did discover that becoming a franchisee with Pole Princess was not just about having the funds to enter the group. I had to be the right ‘fit’ and by that I mean it was very important to meet the Franchisor’s selection criteria! Happy to say that I did and that all my questions were answered to my complete satisfaction!

Walk us through a typical day for you in your franchise. I love being at the reception desk of my business so you will find me there most of the time. However, this business offers great flexibility on how to run it and from where. Although I choose to be up front and centre at the studio reception desk, you can effectively run the business from anywhere! Reality is I just love being there all the time – I choose to drive my business and grow my classes by being there for my students. I know now and feel very confident that I have progressed to being a successful business manager as well as a pole instructor.

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What would you say was the most confronting aspect of being a franchisee and how did you overcome this? The most confronting aspect of being a franchisee was learning the whole system of a proven business that is already flourishing. The beauty of being part of a franchise with a franchisor like Anastacia, is that she is at the top of her game when it comes to training, help and guidance. I was slowly introduced into running my own franchised business with Anastacia always readily available to help with any questions and/or a helping hand.

Tell us about the positive aspects of being a franchisee. Franchisor Anastacia Snelleksz has been very hands on and helpful and is always ready to assist and provide answers to my questions. I have found the ongoing personalised training with the franchisor for franchisees is really great. I love our get-togethers and knowing there is someone there who knows how my business runs inside and out giving me support when I need it. The best thing I have found is that the support of the Franchisor – Anastasia and her management team has been fantastic. They always have an ear to listen to you and offer advice to help you grow your business. I also really like the fact that the franchisor, Anastasia is always available to help us franchisees improve our physical and technical dance skills as well so our studios can stay at the cutting edge of pole dance in Australia.

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ranchise magazine | made in australia: pole princess cheltenham

Can you give us an example of any obstacles you have faced and how have you and your franchisor dealt with this? Business was a bit slow in the beginning which for any new business, it can be ... until people in the area become more and more familiar with your presence. I love marketing my business and in the early stages I did a lot of stuff myself. This included open days, flyers, promotions in shopping centres and at train stations, mail box drops, newspaper advertising, daily deal promotions and word of mouth. By taking a proactive approach to marketing my business, it did not take all that long for the Pole Princess brand to make its mark in my studio’s area. This resulted in more people coming in to check out pole dancing for themselves which in turn, brought about a rapid and high increase in business activity. I started my franchise around eight months ago and have been through three student terms so far. With each term, the studio and business has been consistently growing. 2013 is off to a great start as well, it’s giving me even more confidence and focus on what the future has to bring. Also, in the excitement of starting my own business, I rushed into a lease before finalising my studio permit properly. I needed a Dance Studio/Indoor Recreation Centre Permit – I learned that I really should have made sure the lease is subject to the required permit that needs to be granted prior to committing to the lease!

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Do you think the fact that your business belongs to a franchise contributes to your success? If so, how? Definitely, the monthly franchisee/ franchisor meetings have been great, as we can get everything out in the open and discuss new ideas etc. I just love them, even though I have my own franchised studio, I don’t feel like I am out there on my own, I am part of the collective group of Pole Princess Studios and that in itself, is very inspirational. We are all focused on having great businesses so when we meet, no one gets upset or their nose out of joint – we gel like a team and support one another. Everyone wants to see each other’s studio succeed because in turn it helps boost the Pole Princess name and the success of your own studio as well.

As franchisee, knowing what you know now, would you make this investment again? For sure, the learning curve in my business has been phenomenal. I have learnt so much about running my own business, managing staff and customer service – the management and business skills I have acquired in such a short period of time has been invaluable. I don’t think I would have learned so much so quickly if I were to start my own business from scratch. I definitely avoided the whole trial and error process involved with starting your own business from scratch by being part of a franchise, all the usual bumps in the road to starting your own business had already been ironed out or at least had plans in place to tackle them effectively for a Pole Princess franchise. I honestly believe being part of a franchise was a better investment than trying to start my own business from scratch.

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ranchise magazine | spotlight: the gold club

EARN EXTRA INCOME FU

With the Gold Club you can; Own your own business, keep every dollar you earn, CASH! in your own business that is easy to operate with very high profitability!

Choose the hours you want to work with this affordable and complete business system!

The Gold club is; A fully portable system that offers you the opportunity to start your own business for under $10,000 and work part or full time from home.

A GOLDEN BUSINE 30 | April - May 2013

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ULL TIME OR PART TIME

The future is bright with The Gold Club!

Click Here

to learn more about your own golden business opportunity with The Gold Club

ESS OPPORTUNITY www.FranchiseMagazineOnline.com.au | FRANCHISE MAGAZINE

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ranchise magazine | spotlight: vulcano gelato

G E

Vulcano Gelato Erup As Franchisor of Vulcano Gelato, Gino Maniaci’s trademark quote is, “Try it, you’ll love it!” Any wonder he says it so often and with so much passion and gusto. Congratulations to Trish & Tony Gullaci – they tried it, and they loved it – so much so they recently joined the group as the latest Vulcano Gelato Franchisees. The couple opened their stunning new franchised store in mid February 2013 at 24 Puckle Street, Moonee Ponds in Victoria. In no time, locals and visitors have flocked to sink their teeth into the infamous gelato, granita, brioche and other devilish authentic Italian dessert delights. “The word is spreading like wildfire and we haven’t even done the formal official launch yet! I have been working alongside Trish and Tony as part of the initial training and support we give new Franchisees and the buzz about the precinct has been fantastic. You know, if I only had a dollar for every time someone asked me when we are going to open a Vulcano Gelato in Melbourne... well people, here it is! And we are looking forward to bringing a Vulcano Gelato in a suburb near you!” says Franchisor Gino Maniaci. Yes, we all know about (or have personally endured) the famous queues of Vulcano Gelato lovers lining Point Nepean Road outside the iconic first Vulcano Gelato store in Rye. That hasn’t changed. Now Melbournites young and old alike can ‘spread the love’ of the Vulcano Gelato experience closer to home and on a more regular basis. With the famous Puckle Street precinct located within walking distance to Moonee Valley Racing Course and popular Mount Alexander Road – this is where locals and visitors alike choose to shop, dine, explore and be entertained. Franchisees Trish and Tony are well aware that the Puckle Street Precinct is the centre of fun, fashion and lifestyle in the north-west suburbs of Melbourne. With an eclectic mix of retail shops, restaurants and nightlife, Moonee Ponds’ premier shopping precinct has something to offer every visitor.

Stop drooling a

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L A

T

O

pts in Moonee Ponds “Both Trish and I are very excited to bring the authentic taste of Italy in true Vulcano Gelato fashion to Puckle Street. Those that have had the pleasure of tasting our gelato know ... there is nothing quite like it anywhere else (except of course, if you are visiting Vulcano Gelato in Rye). So come on down, we’d love to see you! In the meantime, we welcome you to visit our Facebook Page (don’t forget to ‘LIKE’ us) as well as watch this space for the upcoming official launch – we have fantastic things planned!” says Tony.   Vulcano Gelato offers a truly unique and authentic Italian gelato that is made fresh daily at the group’s Melbourne based head quarters and delivered to Vulcano Gelato stores. Using a recipe established in 1960 pre-packaged and imported exclusively for Vulcano Gelato stores from Vulcano Sicily, Italy, the only ingredients sourced locally and added to this phenomenal base include, but are not limited to, fresh fruits and sugars. Of course, a multitude of other additions from chocolate to pistachios also allows for an extensive and versatile flavour selection – the pinnacle being the secret recipe to the iconic and signature ‘Vulcano’ flavour. Like all their gelato, this one guarantees an unsurpassable ‘eruption of flavour’ that dances on the tongue with a wicked tempo. Seriously, gelato has never been this hot! The Vulcano Gelato philosophy is to provide customers with a truly spectacular gelato using only quality products, making it with love, serving it fresh and presenting it with a whole lot of pizzazz to boot! “Try it, you’ll love it!”

and get your fix!

an sink your teeth into business success! www.FranchiseMagazineOnline.com.au | FRANCHISE MAGAZINE

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ranchise magazine | feature article: article title goes in here

reasons to be a franchisee >> A

franchise is a reduced-risk form of new business start up, with every element from site selection to inventory pre-planned, carefully documented and easily transferable. By Nick James Franchise Central

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Many powerful influences are at work in the franchise relationship, accounting for the astonishing fact that approximately nine out of 10 franchise businesses succeed in the first five years, whereas eight out of 10 non-franchise business never make it past the first year.

FRANCHISE MAGAZINE | www.FranchiseMagazineOnline.com.au


1. The

Franchisor’s Success Formula The reason the franchisor is in business is because he or she has developed a formula for success. That formula may include trade secrets, special patents or a unique format. Invariable the mature franchise includes successful systems, methods, image and techniques cultivated by many years of experience.

When a new franchisee joins a new franchise he or she expects to inherit the Franchisor’s legacy of a finely tuned business format, a well documented system and a proven product or service. The new franchisee also acquires the know-how and insight that would otherwise take years to assimilate.

2. The

Franchisor’s Negative Experience The franchise has value above and beyond the fee for getting into one’s own business because the franchisor has invested considerable time and money into developing a successful business. In addition, the trade secrets, methods and systems the franchisor has also accumulated negative know-how. In other words the franchisor knows what to do as well as what not to do in the particular business, industry or trade. In this way a franchisee avoids the trial and error pitfalls that normally doom a start-up business to failure. www.FranchiseMagazineOnline.com.au | FRANCHISE MAGAZINE

3. Strength in Numbers

The most obvious advantage of a franchise is the cooperative nature of franchising. The franchise trade name, product or service, and the combined purchasing power of all the outlets in the system place the franchise owner on a par with industry giants. Hence a franchise is generally more competitive, more recognisable and more profitable than other small business owners in the same trading area. And because the success rate of franchises in their first year of trading 2.25 better than independent small business, they are more favoured by the business world at large - that applies to loans, credit and suppliers. April - May 2013| 37


ranchise magazine | feature article: article title goes in here

4. The Spirit of the Club

Every franchise has its own corporate culture which it seeks to perpetuate amongst franchisees. This value system reflects and promotes the type of franchise that it is. There are incentives, friendships, lines of authority, ways of selling, attitudes and conventions all of which persuade the entire network. When you buy a franchise, you buy into an attitude and you quite literally join an exclusive club of franchise owners. The immediate circle of ‘club members’ are those in your franchise, but there is also a wider support group of franchisees and franchisors at large - because all franchisees have a lot in common. This commonality arises from their primary allegiance to the concept of franchising.

38 | April - May 2013

5. Support In

6. Safety Check

There is no doubt that franchising is the best way to enter an unfamiliar sector, with franchisors preferring to teach everything from scratch rather than arguing with experienced know-it-alls about basics.

Franchisors are devastated by failure. It erodes their good name, subverting the very thing they claim - rock solid stability. For this reason the best franchisors move hell and earth rather than see a franchisee go to the wall. If this happens too often and the word gets around, franchisors who can’t forge a team of winners are doomed. Furthermore, most franchisors derive revenue from a regular royalty payment and nothing strangles cash flow like franchisee failure.

An Unfamiliar Sector

The ideal franchisee will bring to the franchise skills learned from other work experiences, and when these are added to the Franchisor’s expertise the combination ought to produce the strongest marriage of minds. Generally speaking former schoolteachers, public servants, and employees of banks and corporations all make desirable franchisees, being professionally skilled in many useful areas. Such employees are usually totally unprepared for the cutand-thrust of the business world, which is why they welcome the support that a franchisor gives.

Having been fence-sitters during the formative years of franchising, the financial institutions are currently more likely to back a franchise than a small business start-up venture, which they regard as high risk in comparison. Their conservative lending policies make them take a good hard look at franchise’s prospects of success before staking the money. This in itself is an additional safety check. Like the financial institutions, the Government also stood on the sidelines for many years, but is now praising the sector - sometimes even pointing to franchising as an example of how fiscal policy is working. Government support creates a more favourable environment for franchising, which the Government backs most visibly by funding research into the sector.

FRANCHISE MAGAZINE | www.FranchiseMagazineOnline.com.au


7.

Own Your Own Business Best of all, franchising gives newcomers to business the opportunity of entering at a fairly sophisticated level. Leasing companies, supplies, financial institutions as well as customers tend to treat new franchisees as they would an established business.

free to hire and fire - in short, to run their own businesses. Far from losing their individualism, successful franchisees are given an opportunity to cut their ties and in fact reclaim their freedom.

Franchisees are not employees. While they are expected to conform to the Franchisor’s business standards, they are

www.FranchiseMagazineOnline.com.au | FRANCHISE MAGAZINE

April - May 2013| 39


ranchise magazine | spotlight: lightsounds

Australia’s larg Au Lightsounds is Australia’s largest retailer of professional lighting, audio and DJ equipment with nearly twenty stores, stockists and franchise outlets across Australia. Lightsounds opened its first retail store in 1995, after the business being in the industry since 1983. The success of that one store paved the way for Lightsounds to grow, open new stores and become the success story it is now. Like most people you’ve probably dreamt of being your own boss and running a successful business. At Lightsounds, we take pride in offering you the chance to achieve this dream, by providing you with a proven business system that is affordable, well structured and easy to operate. Unlike many other business opportunities, Lightsounds is able to offer multiple income streams other than just the retail sale of equipment. A Lightsounds business can also offer to clients rentals, service, DJ practice booths, jukebox hire, deliveries, installations, second hand goods sales, trade ins and more. All of this means that the business owner is able to make money through numerous means without being dependent only on the retail market.

Make a life for yours

CLICK HERE to register yo

Franchise O 40 | April - May 2013

FRANCHISE MAGAZINE | www.FranchiseMagazineOnline.com.au


gest retailer of Professional Lighting, udio and DJ Equipment Lightsounds has a limited number of franchising and dealership opportunities on offer in selected areas. The franchise opportunity is for those with a passion for audio and lighting, good business sense are self motivated and enjoy dealing with people. Dealerships allow the business owner to take part in the Lightsounds experience without the commitment a franchise requires and is well suited to those who already have their own store. All new franchisees receive comprehensive training at our state of the art training academy. Initial and ongoing training not only covers practical but also builds your skills in marketing, accounting and all aspects of running a successful business. No previous business experience is required. Lightsounds provides a unique opportunity to be aligned with most market leading brands. Franchisees also gain benefit from lower pricing through group purchasing power. So if you want an exciting career in an industry founded on fun, providing audio, lighting and karaoke to DJ’s, nightclubs, promoters, event managers and people into music, then you should consider being a part of the Lightsounds team.

self ...not just a living

our interest in a Lightsounds Opportunity www.FranchiseMagazineOnline.com.au | FRANCHISE MAGAZINE

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ranchise magazine

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ranchise magazine | feature article: buying assets for your business

for your business buying assets >>

Tax

By Colin Buston, Taxnet.com.au

time is upon us and Colin Buston of taxnet.com.au says clients often ask him about the best ways to acquire different types of assets in their business. In this article he tells us about plant & equipment and depreciating assets like machinery and computers. On 1 July, 2012 some new rules were introduced that offer small business owners significant tax advantages. In some cases, a small business can claim the entire cost of the asset as a tax deduction in the year of purchase. Historically, these business assets were depreciated over a number of years, or their effective working life. To be eligible for these simplified depreciation rules the entity needs to be in business (trading not just holding investments) and have an aggregated annual turnover of less than $2 million. The ‘aggregated turnover test’ not only looks at your turnover but also the turnover of any entities connected to you such as a Trust.

>> Assets Costing Less Than $6,500 If your business qualifies as a small business and can access the simplified depreciation rules, any depreciating assets you purchase 44 | April - May 2013

below $6,500 can be written off in the year of purchase. If your business is registered for GST the $6,500 is GST exclusive, if not, the $6,500 is the GST inclusive amount. Let’s assume you decide to replace some of the computers in your office and you purchase 4 new laptop computers in the 2012/13 financial year at a GST exclusive cost of $2,500 each (GST ex). As each laptop costs less than $6,500, they can be written off immediately and you can claim a total deduction of $10,000 in your 2013 tax return. As this example illustrates, the $6,500 threshold applies on an asset by asset basis, so you can claim the immediate deduction on more than one asset. In addition to claiming an immediate tax deduction for assets with an initial cost of less than $6,500, in some circumstances it is also possible to claim an immediate deduction for additions or improvements to these assets in a later income year. For example, if you purchased a digital printer for $5,500 in 2012/2013 and then

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bought a $2,200 component to improve the productivity of the printer in 2013/14 you could claim the initial purchase price of $5,500 in 2012/2013 and the $2,200 printer component in the 2013/2014 year. However, it is only possible to claim an immediate deduction for the first additions or improvements. Any additions or improvements beyond the first component are not an outright tax deduction and depreciation would be claimed over a number of years.

>> Other Assets Costing More Than $6,500

utility for $40,000 excluding GST in March 2013. The vehicle is used exclusively for business and in the 2012/13 financial year you can claim a tax deduction of $5,000 with the balance of the purchase price ($35,000) depreciated at What happens if you buy an asset other than a car that costs more 15% in the same year. than $6,500? Small businesses Limits apply to the deduction you can ‘pool’ all other assets and can claim. If it’s a ‘luxury’ vehicle, claim 15% the first year the asset is in the pool and 30% for each the depreciation cost limit for subsequent year. If the value of 2012/13 is limited to $57,466 the pool drops to below $6,500 regardless of how much you paid then the whole pool can be for the vehicle. written off.

>> Special Rules for Motor Vehicles You can claim an immediate tax deduction for the first $5,000 on new and second hand motor vehicles purchased on or after July 1, 2012. The balance of the vehicle’s cost price is then depreciated at 15% in the first year. A motor vehicle for these purposes is defined as any motor powered on-road vehicle including four wheel drives. However, graders, tractors, harvesters etc. do not qualify as their primary purpose is not to run on public roads. Let’s assume you are a trades person and buy a twin cab 4WD www.FranchiseMagazineOnline.com.au | FRANCHISE MAGAZINE

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ranchise magazine

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April - May 2013 | 47


ranchise magazine | last words

lastyourwords say in franchising >> In my opinion, you won’t find anybody as good as Franchise Central – I say Franchise Central because in my opinion there aren’t many good sales and marketing people out there. Franchise Central offers everything that a Franchisor is looking for.

Stephen Raff ACE BODY CORPORATE MANAGEMENT

“The team at Franchise Central have been looking after the franchise side of my business since 2010 and I couldn’t be happier with the guidance and assistance they offer. Creating my business was something that happened naturally for me and when it came time to expand I really was an amateur in the business world. I knew nothing about franchising and the thought of going it alone scared the life out of me. Nick and Mary have always been patient and gone that extra mile to guide me and help grow the Pole Princess brand. I would highly recommend Franchise Central to any business owner who is thinking of expanding their brand because the team at Franchise Central will go above and beyond to help you reach your goal.”

Anastacia Snelleksz | POLE PRINCESS “Buying a franchise was a big step for me as becoming part of the Pole Princess group as a Franchisee was my first endeavour into business ownership! Throughout the whole Franchisee Recruitment Process, Nick James of Franchise Central provided fantastic support and great help – he was thorough, patient and made sure all my questions were answered. Not only did he provide support and help during the recruitment process of buying into my Pole Princess franchised business, but continued to do so after my Pole Princess Cheltenham studio was set up with great ideas on how to promote my new franchised business in the area. I feel very comfortable knowing that the team at Franchise Central is readily available to assist. If you are looking to buy into a franchise, I highly recommend dealing with Franchise Central.”

Jas Ang | POLE PRINCESS (CHELTENHAM) 48 | April - May 2013

FRANCHISE MAGAZINE | www.FranchiseMagazineOnline.com.au


Franchising your business with Franchise Central... “From the very first meeting with Mary and Nick, we knew we were in the right hands. The team at Franchise Central are highly professional, results driven and a joy to work with. They made it their business to create a synergistic relationship from the very start – the best part is that they actually believe in our business and continue to perform beyond the call of duty to far exceed our expectations. Initially they worked closely with us to provide an excellent franchise system documentation package. We look forward to a long and mutually fruitful association with the team at Franchise Central in expanding the Vulcano Gelato franchise network nationally and internationally. If you are looking to franchise your business or require assistance in expanding your franchise network, we highly recommend Franchise Central without hesitation.”

Gino and Josephine | VULCANO GELATO

we’re asking... have you reinvented your career via franchising? Tell us about it!

email us at: editor@FranchiseMagazineOnline.com.au or join the discussion on our Facebook and Twitter pages

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April - May 2013 | 49


ranchise magazine | what’s on

what’s on? franchising events calendar >> May 2013

SPAIN Expofranquicia 2013 9 - 11 May 2013 Feria de Madrid Madrid, Spain SOUTH AFRICA International Franchise Expo 2013 9 - 11 May 2013 South Africa EGYPT The 11th Middle East and North Africa International Franchise & License Exhibition 15 - 18 May 2013 Cairo International Fair Ground Cairo, Egypt INDIA FRO 2013 Mumbai - 61st National Franchise & Retail Show 18 - 19 May 2013 Nehru Center Mumbai, India PORTUGAL ExpoFranchise 2013 24 - 25 May 2013 Centro de Congressos de Lisboa Lisbon, Portugal ITALY Franchising Nord 2013 25 - 26 May 2013 Piacenza Expo Piacenza, Italy

June 2013

AUSTRALIA Reinvent Your Career Expo 1 - 2 June 2013 Melbourne Convention and Exhibition Centre Melbourne, Australia www.reinventyourcareer.com.au 50 | April - May 2013

BRAZIL ABF Franchising Expo 2013 12 - 15 June 2013 Expo Center Norte Sao Paulo, Brazil AUSTRALIA Franchising and Business Opportunities Expo 14 - 16 June 2013 Sydney Convention Exhibition Centre Sydney, Australia INDIA FRO 2013 Ahmadabad - 62nd National Franchise & Retail Show 15 - 16 June 2013 Pride Hotel Ahmadabad, India BRAZIL ABF Franchising Expo 2013 15 - 16 June 2013 Expo Center Norte Sao Paulo, Brazil UNITED STATES International Franchise Expo 20 - 22 June 2013 The Javits Center New York, USA UNITED KINGDOM The British Franchise Exhibition 21 - 22 June 2013 Manchester Central Manchester, UK INDIA FRO 2013 Chandigarh - 63rd National Franchise & Retail Show 29 - 30 June 2013 Taj Hotel Chandigarh, India

July 2013

MACAU Macau Franchise Expo 2013 12 - 14 July 2013 The Venetian Macao Resort Hotel Macau

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INDIA FRO 2013 Pune - 64th National Franchise & Retail Show 13 - 14 July 2013 Sun & Sand Hotel Pune, India AUSTRALIA Franchising and Business Opportunities Expo 20 - 21 July 2013 Brisbane Convention and Exhibition Centre Brisbane, Australia INDIA FRO 2013 Lucknow - 65th National Franchise & Retail Show 27 - 28 July 2013 Clarks Avadh Hotel Lucknow, India

August 2013

INDIA FRO 2013 Indore - 66th National Franchise & Retail Show 17 - 18 August 2013 Sayaji Hotel Indore, India AUSTRALIA Franchising and Business Opportunities Expo 30 August - 1 September 2013 Melbourne Convention and Exhibition Centre Melbourne, Australia

September 2013

UNITED KINGDOM Franchise Opportunities Live 6 - 7 September 2013 TBA London, UK INDIA FRO 2013 Bangalore - 66th National Franchise & Retail Show 7 - 8 September 2013 Nimhans Convention Centre Bangalore, India

AUSTRALIA Reinvent Your Career Expo 21 - 22 September 2013 Royal Hall of Industries, Moore Park Sydney, Australia www.reinventyourcareer.com.au

October 2013

UNITED KINGDOM The National Franchise Exhibition 4 - 5 October 2013 The National Exhibition Centre Birmingham, UK UNITED STATES West Coast Franchise Expo 25 - 27 October 2013 Anaheim Convention Center Anaheim, USA

Organising a franchising event? Click here to contact us at

editor@franchisemagazineonline.com.au and find out how to get your event listed in our magazine!

Or download our media kit from

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April - May 2013 | 51


ranchise magazine | about us

about franchise magazine online >> Franchise Magazine is published as a service to subscribers. We adhere to a strict privacy policy concerning all subscriber names on our database and will not disclose to any third party without written permission from subscribers. If you have any queries about our privacy policy or this magazine, please contact our editor. In the meantime, thank you and we trust you enjoyed this issue of FRANCHISE MAGAZINE!

Publisher

FRANCHISE MAGAZINE

Editor

Kylie Pekolj

Regular Contributors Mary James Nickolas James Kylie Pekolj Kerryn Marlow Graham Van Arkadie

Digital Magazine Created by

FRANCHISE MAGAZINE ONLINE www.franchisemagazineonline.com.au

Advertising Enquiries

1300 558 278 (within Australia) fmo@franchisemagazineonline.com.au

Editorial, Media Releases & Article Submission editor@franchisemagazineonline.com.au

Disclaimer

Information published here has been compiled with due care and attention, but it does not claim to be exhaustive. Franchise Magazine cannot be held responsible for the content of external sites reached via a hyperlink from this site. We accept submissions from outside contributors, and while great care is taken, the author of the submitted article is responsible for what they write, and Franchise Magazine staff will not be liable for any loss or inaccurate information or any other omission or error by outside contributors. Letters to the editor should be sent electronically with the writer’s name, address, and daytime phone number to editor@franchisemagazineonline.com.au. The magazine reserves the right to edit submissions, which may be published or otherwise used in any medium. All submissions become the property of Franchise Magazine Online. This web magazine is provided for information only. It is not intended to replace a consultation with an appropriately qualified business professional. Franchise Magazine cannot accept responsibility for any loss, damage or injury that arises from the use of this web magazine. 52 | April - May 2013

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in the next issue >> • in the spotlight: my botique, pole princess, and more.. • franchise opportunities, events and more..

www.FranchiseMagazineOnline .com.au

Franchise Magazine (April - May 2013)  

7 Reasons to be a Franchisee... Buying Assets for your Business... We chat with Pole Princess Franchisee, Jas... Franchise Opportunities in...

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