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BUY YOUR OWN BUSINESS

Autumn 2018

franchise.co.nz

Year 27 Issue 01 $8.95

THE BUYERS TOOLBOX

get the help you need to succeed

PLUS | | why buy new? | money questions answered | the value of support endorsed by

Westpac Directory of Franchising Over 275 different franchises


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PERFORMANCE | COMMUNICATION | COMPLIANCE | LEARNINg MANAgEMENT

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A friend of mine once walked out of a performance of the musical Les Miserables after 20 minutes. ‘It was just so depressing,’ he said. ‘Well,’ I pointed out, ‘there was a clue in the title …’ I felt like him at the end of last year, when the media was reporting business confidence had dropped after the new government was formed. What depressed me was not the economic forecasts, which remained positive – it was the knee-jerk reaction to a Labour-led government. Fortunately, my inbox was soon full of good news. One franchise opened its first new outlet for 2018 before I even got back to work in January; another set new record sales by a long way, while yet another was both expanding and doing something practical to address child poverty in the communities it served. The mixed messages were neatly summed up by the vastly-experienced Dr Callum Floyd, who commented, ‘Personally, I think there is a lot of pessimism about what could happen, rather than what is actually happening with regard to general business conditions.’ (see page 16) The truth is, the right time to start a small business is more often about when you are ready than when the business confidence surveys sound positive. And success as a franchisee is more about choosing the right industry, the right location and the right brand than about reading GDP forecasts for the next five years. That’s why, in this issue, we’re focusing on how to make those choices. In our cover story (page 6), we look at sources of advice. There are explanations of how franchise field managers can help you (page 28); why franchise fees are worth it (page 40); why a new outlet may be a better option than an existing one (page 50); how comparing performance makes for better decisions (page 62); and answers to common questions about money (page 64). There are also profiles of franchisors and franchisees in all sorts of industries, and opportunities established and new. So if you’re ready to look at where the opportunities really lie for you in the year ahead, start reading. We’re sure you’ll find something to excite and inspire you.. Simon Lord Publisher

Franchise New Zealand media PS. If you’ve just picked up this magazine by chance and want your own free copy, call 0800 FRANCHISE or visit our website at franchise.co.nz

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Published by: Franchise NZ Marketing Limited PO Box 308 089, Manly 0952 New Zealand P 0800 FRANCHISE (0800 372 624) info@franchise.co.nz www.franchise.co.nz ISSN 1172-059X (Print) ISSN 2324-5204 (Digital) Designed and produced by Design for Marketers P 021 64 45 45 paul@cdq.co.nz Principal: Paul Donovan


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50 Why Buy New?

The Franchise Buyers Toolbox

How do you work out whether a business opportunity is right for you? Our toolbox shows you where to get all the help you need

64 What To Expect

12 good reasons why buying a new franchise outlet can make more sense than buying an existing one

Philip Morrison looks at 10 money questions often asked by franchise buyers

Autumn 2018 year 27 issue 01

welcome to New Zealand's BUY YOUR OWN BUSINESS magazine 6 The Franchise Buyers Toolbox Get the help you need to succeed 11 Fun In Focus Duo Photography franchisees develop real businesses capturing family portraits 13 Turning Passion Into Purpose Scratchpad teaches children to become creators, not consumers 15 Reaching New Heights Auckland is ready for Accessman – and franchisees are wanted now 16 Updates Some recent news stories from our website at www. franchise.co.nz 19 Seeing The Wider Picture Top exec finds Wide Span Sheds meet his personal and financial goals 21 Brewing Up A Storm Portermark wants master licensees to develop its hospitality service throughout NZ 23 On Target Army man salutes Dream Doors 24 Advice On Screen A new video helps those wondering what’s involved in buying a franchise 25 Make Time For Family Paramount Services gives you the opportunity to make time for what’s important

27 Here To Help Jim’s Mowing has plenty of work for people wanting small businesses or large 28 Support Pays Dividends Good field managers make all the difference to what franchisees can achieve 31 Small Is Beautiful Domino’s franchisee abandons the traffic and reaps the rewards of life in the provinces 33 Driving Franchisee Performance Franchise Infinity gives easy, secure access to all the information that networks need 34 The Future Of Franchising Education and representation are vital for continued success, says FANZ 36 Taking Aim At Provisional Tax A new way of paying provisional tax could benefit your business, says MYOB 39 Better Governance, Better Franchising Outcomes Franchize Consultants helps franchises achieve better results 40 What Do I Get For My Money? Why do you have to pay franchise fees? Lorraine Lord explains 45 Hole-Hearted Appeal Epiphany Café wants master franchisees to take its unique concept to new areas

46 Charging Ahead The first four electrify.nz licensees have hit the road and are already up to speed 49 Investing In Our Future Returning teachers find sKids ideal for setting up business back in NZ 50 Why Buy New? 12 good reasons why buying a new franchise outlet can make more sense than buying an existing one 53 Eat, Play, Live Iconic Kiwi brand BurgerFuel wants franchisees for both new and existing stores 54 Franchises For Managers Could you put your experience to use in your own business? 55 Retail With Bounce New Para Rubber franchisee stretches to a second store within a year 57 Transferable Skills Former policeman enjoys serving the local community as a Columbus Coffee franchisee 58 Would Law Change Affect Franchising? New proposals would mean franchises need to be more careful than ever 61 The Time Is Now V.I.P. Home Services make it easy to get into a business that offers the life you want

62 Benchmarking For Buyers Dean Madsen’s tips for using comparative figures to make a good purchase decision 64 What To Expect Philip Morrison looks at 10 money questions often asked by franchise buyers 67 Proven – And Rising Bakers Delight offers franchisees the right ingredients for success 68 Levelling The Field A clampdown on bad employers should benefit franchisees 69 Happy Ending Burger Wisconsin’s focus on profitability pays off for franchisees 71 Quality Coffee, Quality People Hudsons Coffee wants master franchisee and franchisees for NZ 72 Rights & Wrongs Stewart Germann offers lessons from recent cases involving wellknown New Zealand brands 90 Take The Guesswork Out Of Buying A new online pre-purchase evaluation tool from Franchise Accountants 76 Westpac Directory Of Franchising Comprehensive details and investment levels for over 275 franchise and master franchise opportunities. Also includes advisors and index to advertisers

Westpac Directory of Franchising Over 275 different franchises

Editor Simon Lord Production Manager Eve Brown Business Development Vicky Bennett Sally Knight Writers Crispin Caldicott Ross Lindsay Catherine Lord

85 specialist advisors

Contact For information about subscriptions, advertising or other matters, please ring us on 0800 372 624 or email info@franchise.co.nz

Submissions Editorial submissions and advertising enquiries should be directed to the publisher. All articles published become copyright ©Franchise NZ Marketing Ltd

Copyright All Franchise New Zealand media are copyright ©Franchise NZ Marketing Ltd. and no part may be reproduced without the specific written permission of the publisher.

Conditions The publisher in its sole discretion reserves the right to refuse to publish any advertisement received if the publisher considers that the publication of such advertisement would be undesirable in any way.

86 consultants and others

Disclaimer All franchise and business opportunity features included within this publication are paid advertorial approved by the client concerned. Inclusion of any franchise system, business opportunity or professional advisor within this magazine does not imply endorsement by the publisher or the FANZ. Persons entering into franchise agreements are strongly advised to seek their own professional advice. Neither the publisher nor the FANZ accept any responsibility or liability for views or claims expressed in Franchise New Zealand. Opinions expressed by contributors are their own and not necessarily endorsed by the publisher or the FANZ.

Cover images: istockphoto.com/Ericshiaw istockphoto.com/Sirgunhik

76 franchise opportunities

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THE BUYERS TOOL How do you work out whether a business opportunity is right for you? Here’s how to get all the help you need

Did you know there are over 37,000 franchised units – that’s franchised shops, restaurants, mobile businesses and more – in this country? Or that some 27.6 billion dollars is spent in New Zealand franchises every year? Franchises make up a massive part of our economy, and help many people to get into their own business. So if you’re looking at becoming your own boss – whether you want a one-man-and-a-van operation that makes the most of your practical side, a million dollar restaurant that rewards your people skills, or a building business that

me, myself and I

allows you to put your management experience to good use – you might consider buying a franchise. But with over 600 different franchise brands in every industry you can imagine, how do you work out what will suit you best? It’s a big job and, as with any job, you need specialist tools to get the right result. But in this case, the tools are people and information. Here’s our guide to what should be in any franchise buyer’s toolbox – and how to use those tools to ensure that you really do get the business you want.

money money money

The first thing you need to do is decide what sort of business you are looking for. You need to work out what would best suit you and what you would want from it. For a start, you need to think about what sort of business you actually want. You’re going to be spending most of your waking hours thinking about and working in your business, especially in the first couple of years, so it needs to be something that you enjoy. That might be something related to your previous experience, or it might involve a complete change. If it’s related to your previous experience, great – you know the industry and know you want to go on working in it. Of course, owning your own business is very different from working for someone else, and may mean learning more skills – business management, for example. A franchise is a good choice, because it will give you training, support and systems in those areas. If you’re going for a complete change, you might want to follow a passion (eg. for food or photography) or you might be motivated by a change of lifestyle (eg. getting out from behind a desk to mow lawns). Again, a franchise will help you. Either way, you want to look for a business where your skills will become real strengths. Do you prefer working by yourself or leading a team? Are you a ‘handson’ person or a ‘hands-off’ person? Are you a night owl or an early bird? If you’re an early riser, a late night pizza business isn’t for you. If you like a lie-in, you won’t enjoy being a baker. Of course, finding what you want to do is one thing – funding a business is another. You probably don’t keep money in your toolbox, so where will you find it?

Franchises are available in a huge range of industries, and vary in cost accordingly from under $5000 to over $1 million. You may have savings or investments to draw upon, an inheritance, a redundancy payment or a Lotto win. In many cases, though, franchisees require some sort of additional finance. This could be funding from a family member or, in most cases, funding from a bank. What matters is not how much you have to spend, but how much debt your new business can afford to service. Don’t try to borrow more than your business can repay – lack of capital kills a lot of businesses. Many franchises will insist on your having, say, 50 percent of the start-up costs in cash. Believe them – if they say you can’t afford their franchise, you can’t. They don’t want you to fail any more than you do. Decide what your financial goals are. What do you realistically want to achieve in terms of an hourly wage, a return on your investment and a potential capital gain when you sell? Can your chosen franchise deliver these? A new business will not make money from day one – it may take several months or even longer to reach break-even. How long can you support yourself before you need to earn an income from it?

the franchisor Finding a franchise is easy – there are hundreds of them in the Directory at the back of this magazine. To make it even easier, you can search the Directory by investment level or industry on our website. But finding the right franchise for you is more difficult. After working out what suits your personality and your pocket, you need to talk to individual franchisors to find out which particular brand is going to be the best fit. It’s important to realise that a franchisor is not just interested in selling you a business. They and their team are going to be working closely with you for a number of years, so they want someone who fits into their culture – they want to know you not only have the drive to succeed, but also the ability to work with them to build the best possible business in your own area.

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Meeting franchisors is therefore a two-way process. They want to learn about you, and you want to learn about them. In many industries, you’ll have a whole range of franchises to choose from. Through open and honest communication with the franchisor, you give yourself the best chance of finding the one where you will feel most at home. For this reason, you shouldn’t hesitate to ask questions. Prepare for every meeting by making a list of the questions you want to ask, and write down the answers. Speak up if you don’t understand anything - the better informed you are, the more likely it is you will make the right decision. As a starting point, look at our list of 250 Questions to Ask Your Franchisor at www.franchise.co.nz/article/77. Go through this and mark the questions most relevant to your own situation. The six most important areas to

be covered may be summarised as: 1. How long was the business running before it began to franchise, and how successful was it? 2. How strong is the franchisor’s financial position? 3. If the franchise is new (or new to New Zealand), was a pilot franchise run here and what were the results? 4. How many franchises have been opened? Have any closed or changed hands? If so, why? 5. How successful are existing franchisees? 6. Does the franchisor provide the levels of training and support you will need? How? Once you’ve found one or two franchises where you feel comfortable, you can start to examine them in more detail.

Franchise New Zealand

Autumn 2018

Year 27 Issue 01


OLBOX

existing franchisees The surest method of obtaining information about the performance of the franchise is to talk to people who are already operating the business. You will get a realistic assessment from a franchisee of the return that can reasonably be expected on your investment; the hours of work you will need to put in; the amount of service and advice provided by the franchisor; the general atmosphere and image of the franchise; and the everyday

experiences of a franchisee. There’s a list of suggested Questions to Ask Franchisees at www.franchise.co.nz/article/935. Make sure that you choose which franchisees to talk to. Don’t just accept a list of ‘approved’ franchisees from the franchisor – they are hardly going to point you in the direction of people who have had bad experiences. Get a full list of franchisees and choose from that. It’s fair to tell the franchisor who you

online research The internet can be a powerful tool when researching any business opportunity, but treat it with care. Online information is not always reliable or (in the case of international brands) relevant to New Zealand. Generally, online information can be divided into four types:

istockphoto.com/Ericshiaw, istockphoto.com/Sirgunhik

1. Information placed by the franchisor or their agents for the purpose of selling franchises. This information should be legally accurate, but beware: it may be out of date, it may not be authorised by the franchisor or it may not apply to the area you are considering. Check all information with the franchisor before relying on it. 2. Information professionally written by third parties (eg. newspaper or magazine articles) about the franchise. 3. Statutory information (eg. company records, legal decisions) concerning the franchise and/or its principals. 4. Information written by interested parties about the franchise. In some cases, online information can be downright malicious – there have been cases where disgruntled former franchisees have sought to damage the brand’s reputation through negative comments. Think of the way in which TripAdvisor can be used to blacken a hotel or restaurant’s reputation, and the way in which ‘fake news’ stories can spread on Facebook. If any comments you see raise legitimate concerns for you, take them up with the franchisor. There are two sides to every issue. What online research can give you is a good feel for trends in the industry in which the franchise is operating; an appreciation of where that brand sits in the industry; and an overall feeling for the brand’s reputation in the marketplace.

franchise.co.nz – PUTTING PEOPLE IN BUSINESS

want to talk to, as they may need to let your chosen franchisees know in advance that you are a genuine prospective colleague, not a competitor fishing for information. Of course, not every experience will be positive, and there’s always the risk of catching someone on a bad day, so make sure you talk to enough people to get an overall impression of the franchise’s culture and leadership.

the banker Another source of valuable information about any particular franchise is your bank. That’s especially true if you contact a specialist franchise banker. Banks are often very supportive when it comes to funding franchise businesses, because they can see how similar businesses have performed (see page 62). A specialist is likely to have dealt with your chosen franchise before and have a great deal of experience in providing appropriate funding solutions. These may include a mix of options and terms based on their knowledge of how the franchise typically grows or how seasonal the business is. Having the right packages in place from the start can save headaches later on, so it’s worth talking to a specialist, even if you have to go to a different bank from your usual one to do so. Banks will often lend up to 50% of the cost of any new franchise providing it stacks up as a good proposition, but they will require some sort of security. This is usually property. When calculating what you can afford to borrow, remember that it is the value of the equity in the house, and not the value of the house itself, against which the bank will lend. The bank will restrict borrowings to a certain percentage of the registered valuation, so if you need to borrow, for example, $100,000, you may need to have a registered valuation of, say, 80 percent ($125,000) on your property with no mortgage. If you already have a mortgage of $50,000, you will need a valuation of at least $175,000 – and so on. You may also need to check what your house is worth before you start looking. It’s better to be prepared.

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THE BUYERS TOOLBO the accountant The franchisor and the banker will be a tremendous source of advice, but ultimately they have to look after their own interests. That’s why you need to invest in a professional accountant to analyse the figures, minimise the risk, look after you, educate you and, eventually, to help you set up the business in the best possible way to suit your individual circumstances. This will involve looking at lots of figures. If you are looking at buying an existing franchised outlet, there should be plenty of information available on its trading history, including Profit & Loss accounts, a Balance Sheet and a Cashflow Report (see Understanding the Numbers at www.franchise. co.nz/article/36). For a new franchise (see page 50), franchisors should be able to provide you with figures based either upon the performance of

a comparable existing outlet or an average of stores. Whether you are provided with a trading history or projections, get an accountant with experience of franchising to assess all figures. This is a specialist area and an inexperienced advisor may either miss or misunderstand some element. Franchise specialists will know what to look for. Get your accountant to contact the franchisor direct with any queries, and to work together to prepare a budget and cash-flow analysis for the initial trading period. You will find these invaluable when talking to your banker, as the bank will want to know not only that you have the security but that you will be able to repay the interest on borrowing.

the lawyer Buying a franchise means getting into a longterm relationship with another party who will have a significant impact on how your business performs – and can even take it away if you don’t follow the rules. For this reason, you need to understand what’s involved before you make your final decision. The franchise agreement is the document on which this relationship is founded. Most franchise agreements are lengthy documents (40-60 pages) and are couched in legal language. You must get a lawyer to check it over

and explain it to you, including such aspects as territory, term of the agreement, options on expiry, and performance criteria. Many are unique to franchising, and if you don’t know what your obligations are, and what the franchisor’s obligations are , then you could be in for some nasty surprises further down the track. Use a lawyer with franchise experience – they will know what to look for and will be quicker. Lawyers inexperienced in franchising may waste their time (and your money) querying standard

conditions while missing key points, such as matching up lease terms with franchise terms. Don’t be tempted to cut corners when it comes to paying for professional advice – that will almost certainly work out more expensive in the long term. And don’t just rely upon the recommendation of business brokers or real estate agents, either – remember, their duty is to their client, not to you. The Directory on page 86 includes a list of franchise-experienced lawyers and accountants.

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Franchise New Zealand

Autumn 2018

Year 27 Issue 01


BOX

After-school tuition is a growth industry

family Finally, there’s another vital group of people you need in your toolbox if you’re to enjoy running your own business – your family. Although buying a franchise offers you the opportunity to enjoy a different lifestyle and/or increase your income, it won’t happen immediately. Depending on the business, it may take six months or two years before you start to enjoy those rewards, and during that time you’ll probably feel you’ve never worked so hard in your life. It will probably mean working long hours and weekends. You may also have to give up sporting and social commitments, at least initially. That’s why you need to know that your family will be totally supportive of your decision and will understand your need to focus on the business as you build it up. It’s for this reason that many franchisors now interview couples together, whether both partners will be working in the business or not. They know that research shows that family support is one of the most influential factors in the success of a new business and want to be sure that everyone has realistic expectations from the start. But if you have taken care to choose your franchise wisely, and used all the tools in the franchise buyer’s toolbox to ensure your new business is based upon a firm foundation, you have the opportunity to create something that really can deliver the life you want. With a good franchise behind you, you will have the training, support and encouragement you need, the name, the marketing and the reputation to attract customers, and the operational and management systems to serve them and bring them back for more.

Find out about New Zealand’s best primary and high school tuition franchise opportunity. ✓ ✓ ✓ ✓

Strong demand Financial independence Work/life balance Rewarding working environment

Call Tereza on 09 522 0800 to receive an information pack. www.numberworksnwords.com/nz/ own-a-centre/

Going into business for yourself is a big decision, but you don’t have to do it all on your own – there’s lots of advice available to help you achieve your goals. Now, open the franchise buyer’s toolbox and get to work – for yourself.

more info To work out whether any particular franchise is the right one for you, you’ll need to do some research and ask lots of questions. There are many helpful articles on the Franchise New Zealand website. In addition to the ones mentioned above, here are some more you might find useful. Covered! - Franchising for Beginners Just what is franchising and how does it work? Here’s a guide to franchising and master franchising in New Zealand. www.franchise.co.nz/article/2142 Your Buyers Guide Part-time, full-time, indoors, outdoors, retail or restaurant: whatever type of business you’re interested in, there’s a franchise to suit. www.franchise.co.nz/article/2324 How to Spot a Quality Franchise How do you tell the difference between the good and the great? Here’s what quality franchises have in common. www.franchise.co.nz/article/1336 What Can You Afford? Before you start looking at any particular franchise, you need to know what’s realistic for your pocket and your needs. Here’s how to evaluate your financial position. www.franchise.co.nz/article/2397 What’s in the Franchise Agreement? The franchise agreement is a lengthy legal document. What should you expect to find in one, and what does it actually mean? www.franchise.co.nz/article/41 How to Become a High-Achieving Franchisee What makes the difference between an average franchisee and a top performer? Here’s some advice from one of NZ’s leading operators. www.franchise.co.nz/article/1720 franchise.co.nz – PUTTING PEOPLE IN BUSINESS

Increasingly, parents want to develop their child’s potential. You could harness this ever-growing demand for quality private tuition by owing and operating a NumberWorks’nWords after-school tuition centre.

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Duo Photography franchisees develop real businesses capturing family portraits forever Simon Palmer: ‘This is not witchcraft, it’s a solid business formula’

FUN IN FOCUS S

imon Palmer is fizzing with enthusiasm for his new business. ‘I could still be an IT program manager in government service,’ he says. ‘Instead, I spent the morning rolling around with chickens and a baby in a back yard. How could you not enjoy that?’ If that sounds a bit weird, it’s because Simon is a Duo Photography franchisee, specialising in mobile portrait photography. ‘My job is to motivate people – families and kids – to relax and have fun in front of the camera – hence the chickens,’ he says. ‘As a result, you get portraits that people really love.

‘Of course, as a business it also has to make money, and it does. The great thing about this franchise is that it’s run by a businessman who’s also an amazing photographer. From the financial point of view, I’ve found everything has gone the way the franchisor said it would when I started in September last year.’

six-figure incomes

Beecham,’ he recalls. ‘I thought, if I’m going to do this, I want to do it with people who are that good.’ I went and met Adrian and was very impressed with just how professional the franchise was. I have a business and banking background as well as IT, so I could see it was a business model that worked – and so it has proved. ‘After two weeks of training in Upper Hutt, you are paired up as an intern with one of Duo’s experienced photographers for six weeks and learn to do shoots the Duo way in your own territory. Everything is documented until you are up to standard, and even after qualification there’s ongoing coaching and a critique and review process with various experts to help you improve.

‘Apart from the technical side, you learn how to organise people in a relaxed way. You have to keep it moving while managing the technical side and the old hands are really good at that. It was hard at first but you learn through sheer repetition – I even use some of the same jokes!

Duo Photography was founded by Adrian de la Fuente. Having run everything from nightclubs to newspapers, the keen photographer originally set up the business 20 years ago to pay for new equipment just as the digital revolution was taking root. It soon took on its own momentum as he started employing photographers and built up a fleet of mobile units in Wellington. He began franchising four years ago.

‘As for business building … For me, that’s one of the reasons to buy a franchise and it works. I haven’t run out of work since I started, and it doesn’t look like I’m going to. My attitude at the beginning was, “These guys really know what they’re doing so I’m going to shut up and learn everything I can.” That’s really paid off.’

In a time when almost everyone has a hi-resolution camera on their phone, how can a photography franchise be so successful? ‘Having a camera doesn’t make you a photographer capable of taking memories to share forever,’ says Adrian. ‘People have lots of photos, but few are ones you’d want to hang on the wall. And lots of families have photos without mum or dad in them, because they were behind the camera. Duo Photography portraits are animated and engaging. We don’t do “look at the camera and smile” – we capture the way people move and behave, the emotions they want to remember.’

Duo Photography is now operating in Wellington and Christchurch, and is seeking franchisees in all the main centres including Auckland and more in Christchurch. ‘There is no shortage of work and we encourage franchisees to collaborate on larger projects,’ says Adrian.

So how do you teach a franchisee something as artistic as photography? ‘You do have to have a creative eye, but we don’t teach art – we teach how to engage and understand clients,’ says Adrian. ‘The art comes out of that. We teach the techniques, but we also teach value and business building. That’s why a Duo Photography franchisee can earn a six-figure income far above that of many professional photographers.’

a business model that works Simon Palmer came across Duo when his wife Cassandra – ‘God bless her!’ – put details of the franchise on his desk. ‘I hadn’t heard of Duo Photography but I had heard of Adrian and his lead trainer, Andrew franchise.co.nz – PUTTING PEOPLE IN BUSINESS

it’s not witchcraft

‘The total investment required is from $30,000 to $50,000 +gst, depending on the level of equipment you already have. As the business is mobile, you don’t need a studio – just a people mover or other suitable vehicle.’ He says the franchise particularly suits people who are more mature, have life skills and are looking for something more creative and fun than a 9-5 desk job. For anyone interested in the Duo Photography business, Simon offers some advice. ‘Get hold of Adrian and listen to what he says – he tells it like it is. This is not witchcraft, it’s a solid business formula. It just happens to be fun and you walk away from every shoot with a real buzz.’

advertiser info Duo Photography www.duofranchise.com Contact Adrian De La Fuente P 0-4-972 2364 adriandlf@gmail.com

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Franchise opportunities across NZ North, South, East and West – Auckland Chartwell Shopping Centre – Hamilton The Crossing – Tauranga Queensgate Shopping Centre – Lower Hutt Richmond Shopping Centre – Nelson Northlands Shopping Centre - Christchurch City Centre – Dunedin Queenstown Central – Queenstown

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021 521 669

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Caci is the market leader in appearance enhancement with a premium brand. In New Zealand Caci has:

• The most beauty clinics with over 40,500 customers and the highest advertising dollar • More than 40% of our clinics have revenues in excess of $1m annually Your Opportunity: We have plans to open 10 more new clinics in New Zealand this year. Now is the time to start your Caci journey and take advantage of owning your own business. Limited locations remaining, including: - Wanganui

- Blenheim

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To find out more or to register your interest: Visit caci.co.nz/franchise or email franchise@caci.co.nz 12

Franchise New Zealand

Autumn 2018

Year 27 Issue 01


opportunity: leisure & education

turning

PASSION

into

PURPOSE Scratchpad teaches children to become creators, not consumers

W

hen Vijesh Nangia was talking to a teacher at his children’s Auckland school, the subject of technology came up. ‘We’re very advanced – all our students use iPads,’ the teacher said proudly. Vijesh wasn’t so sure. ‘All that’s doing is making children consumers of technology,’ he pointed out. ‘What we should be teaching them is to become creators and innovators.’ And that’s how Scratchpad was born. Scratchpad Technology Learning Centres are designed to help kids learn to control computers and phones rather than be controlled by them. By teaching coding, robotics and 3D printing they help kids develop their life skills in collaboration, problem solving and creative thinking. In addition to afterschool classes, weekend sessions and holiday activities, Scratchpad also offers virtual sessions, parent/child sessions and runs sessions at schools. The first Scratchpad opened in St Lukes in 2015 and soon had an avid fan base among kids and parents alike, with interest growing further after it appeared on Seven Sharp on TV1. A pilot franchise opened in Botany in 2017 and has already achieved phenomenal success, so Vijesh engaged top specialists Franchize Consultants to develop the business model prior to launching it nationwide. He’s keen to find people passionate about technology and teaching to come on board.

building teamwork

Vijesh is not just a concerned parent but a veteran of the IT industry. He was working in the UK when IBM head-hunted him for a senior position in New Zealand in 1998 and now owns CYMA, a consultancy with 30 staff specialising in information systems architecture which numbers companies like Vodafone, Vero and Ports of Auckland among its clients. ‘Technology is part of everyone’s future so we need to teach people to use it to be creators and innovators,’ Vijesh says. ‘As an article in the UK Guardian newspaper said recently, “Just as basic ICT skills are essential for any job, coding will soon be a requirement of many industries.” It’s not just about passively sitting in front of a screen.’ Walk into a Scratchpad classroom and that’s immediately apparent, as we found out when we visited one of the holiday programmes. Instead of a bunch of silent young nerds focused on their screens, a group of 20 kids were franchise.co.nz – PUTTING PEOPLE IN BUSINESS

talking, sharing ideas and asking for solutions to the problems in front of them. Yes, they were programming their own Minecraft mods for the gaming environment, but it was the collaboration between them that really impressed us. ‘I’m going to need help when I get to the entrance,’ one girl called out. ‘I can help you there,’ a boy answered. ‘Have you done xyz yet?’ asked another. Throughout the room, the teamwork was audible. How lively it gets when they are programming Scratchpad’s walking robot or using the 3D printer to create sophisticated models, we could only imagine. ‘People have to learn to work together in real life, and this makes problemsolving fun,’ points out Vijesh. ‘All sorts of careers increasingly require an understanding of technology, so Scratchpad can help reveal a child’s potential or give them a head start. We provide online support, access from home, regular feedback and progress reports to parents, and we even offer parent-and-child coding sessions so mums and dads can get involved and understand.’

nationwide demand

Scratchpad franchisees operate from dedicated premises – for example, at St Lukes, the upper storey of an office block near the shopping centre which is convenient for parents. For the last 18 months, Scratchpad has also been offering virtual programmes for schools and individual students which have been eagerly received from Tauranga to Christchurch, and even the small Northland community of Pawarenga, where the local commissioner and principal were keen to get the kids involved in technology. ‘It proves that there is demand for Scratchpad all over the country and we are keen to get franchisees in place right away,’ says Vijesh. ‘Once established, franchisees can earn a professional level of income and a good return on their investment. The total investment required, including all equipment, fitout, training, software and course schedules, is from $120,000 depending on location, and we will be with you every step of the way as you build your business. ‘Franchisees need to be comfortable with technology and like working with kids. They might be ex-teachers, parents like me, people returning to the workforce or looking for a change of lifestyle. They will do some teaching themselves and employ part-time staff, and must be comfortable managing the various relationships with children, parents, supervisors and schools in their local community. Business experience is helpful; drive and commitment are a must.’

the future is now

Mark Zuckerberg, the founder of Facebook, has said, ‘In 15 years, we’ll be teaching programming just like reading and writing ... and wondering why we advertiser info didn’t do it sooner.’ As Vijesh says, ‘Scratchpad is here already. We’re doing it Scratchpad now, and our kids are having fun doing it. www.scratchpad.co.nz ‘We want to have Scratchpad centres in cities and towns throughout the country. If you’d like to be a part of that and have the qualities we’re looking for, contact me.’

Contact Vijesh Nangia P 0-9-216 9400 M 021 431 1930 franchise@scratchpad.co.nz

13


opportunity: business & commercial

reaching

NEW HEIGHTS

Auckland shows it’s ready for Accessman – franchisees wanted

I

s Auckland ready for Accessman? ‘Absolutely!’ says Lena Harrington. ‘We opened our first branch there shortly before Christmas and almost every week we’re having to send up more equipment to meet demand.’ Lena is General Manager of Accessman, the South Island’s largest Elevated Working Platform (EWP) and scaffolding hire company. Specialising in items such as scissor lifts, knuckle booms, cherry pickers, telehandlers and other access equipment, Accessman already has franchisees throughout the South Island. Now it’s established its Auckland branch as a company-owned operation before appointing its first franchisees there to operate at least two more branches. ‘Company-owned branches demonstrate our obvious commitment to an area,’ says Lena. ‘They kick-start the brand and enable us to begin developing relationships with construction firms, builders, plasterers, electricians and others in our main target markets. Of course, many of our regular customers are already national companies like Leighs Construction, Ganellen, Dominion Constructors and Arrow International. Companies like these are welcoming our move to the North Island. ‘Whether an individual or partnership, Auckland’s first franchisees have the option of buying a fully operational outlet or starting from scratch. With Auckland spreading in every direction, the sooner they start, the sooner our franchisees will be able to capitalise on commercial and residential growth. Enquiries from other North Island centres are also welcome.’

long-time friends, long-time business partners Christchurch’s Al McNeil and Phil Paul were among the first Accessman franchisees some 14 years ago. Today the long-time friends are as enthusiastic as ever, with Al confessing to living and breathing Accessman. In fact, the pair have added Accessman Timaru to their business portfolio and now operate two substantial – and very profitable – businesses. Prior to Accessman, Al owned travel agencies and worked for an airline, while Phil knew all about Accessman as the former manager of the Blenheim branch. ‘When they started franchising, it didn’t take much for Phil to convince me to get involved,’ smiles Al. Accessman started when founder Ross Pickersgill bought a scissor lift for his electrical business following the introduction of new legislation in 1992 which set safety standards for working at height. He also hired the machine out and soon saw a ready market. Today, there are over 800 EWP machines spread throughout the group. ‘As a partnership, Phil is more on the operational side while I look after sales, marketing and client relationships,’ says Al. ‘Here’s where Accessman has a real edge in a fiercely competitive market: the customer talks directly with the business owner, rather than a branch manager with no real power – that can make a big difference. But we’re not just an independent operator, either – we have Accessman behind us and never-ending support from Lena and her team.’

must complete IPAF (International Powered Access Federation) or HIANZ (Hire Industry Association of New Zealand) EWP Silver Card training. We are also required to provide hirers with a safety induction on delivery of each machine, which itself is subject to rigorous pre- and post-hire safety checks. You don’t get to build a business of this size and quality by cutting corners.’ But once you’ve proved you have what it takes, Al says the training, systems and support that Accessman provides are second-to-none. ‘To become an Accessman franchisee takes deep pockets, good management and interpersonal skills and full-time commitment. But, believe me, the financial and personal rewards are substantial and worth every second we put into advertiser info our two branches,’ he says happily. ‘If you want my advice, call Lena now – and when you get to the stage of doing your due diligence, come and talk to me. It’s the best decision I ever made.’

Accessman www.accessman.co.nz Contact Lena Harrington P 0-3-343 7560 lena@accessman.co.nz

g n i s i h c n a r f g n i k Ta to new heights! A unique opportunity exists for the right person to be able to work their way into a franchise ownership role

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Exciting new franchise options available throughout New Zealand

substantial rewards Becoming an Accessman franchisee goes way beyond having around $900,000 to invest, as Al explains. ‘This is a serious business. Comprehensive due diligence is a must, and it’s a two-way street with Lena and her team thoroughly evaluating each franchisee candidate. You must demonstrate that you have a good head for business, genuine empathy and preparedness to follow the proven Accessman business model.

0800 2GET HIGH

franchises@accessman.co.nz www.accessman.co.nz

‘Buying in to the Accessman commitment to best practice worker and workplace safety is also non-negotiable. Franchisees, managers and all staff franchise.co.nz – PUTTING PEOPLE IN BUSINESS

15


updates from our website

Our pick of the top news stories from www.franchise.co.nz

Franchise New Zealand is much more than a magazine. To keep up with the latest news, issues and opportunities, go to www.franchise.co.nz, subscribe to our free newsletter and follow us on Facebook or Twitter.

BUSINESS CONFIDENCE DOWN BUT FRANCHISING MORE POSITIVE Uncertainty about new government policies, a softer housing market and reduced immigration saw confidence among small business owners drop dramatically at the end of 2017, but overall growth expectations remained positive.

Meanwhile, the quarterly Franchising Confidence Index survey conducted by Franchize Consultants shows that franchisors’ concerns have quietened, with both franchisors and service providers having a more positive outlook than general business confidence surveys. It’s worth noting that franchisors’ outlook on franchisee profitability remains positive. ‘Personally, I think there is a lot of pessimism about what could happen, rather than what is actually happening with regard to general business conditions,’ says Dr Callum Floyd of Franchize Consultants. Franchisors were asked what they perceived to be the greatest challenge to franchising development in the year ahead. Almost half of responding franchisors identified finding franchisees as the top challenge to their development. Finding franchisees was followed mainly

in brief • Belgium-based multinational Belron is to buy Australasia’s largest plumbing and electrical services franchise, Laser Group. Laser was founded in West Auckland and started franchising in 1999, mostly by signing up existing electrical businesses. The company twice won the Westpac Supreme Franchise System of the Year title, in 2005 and 2006. • Veritas Investments is to sell its Mad Butcher

Hot start to 2018 for franchises

include sponsoring a giant owl in The Big Hoot Art Trail to raise funds for the Child Cancer Foundation.

by concerns around the level of franchisee establishment investment and operating cost pressures, and both franchisor and franchisee ability to hire suitable staff. Other key challenges cited included factors relating to economic concerns and uncertainty and references to challenges to, or sustainability of, their franchisee business model. Franchisors and service providers were also asked what they perceived to be the greatest opportunity related to franchising development in the year ahead. A wide variety of internal and external factors were cited; key themes included innovative ways of marketing, looking for opportunities to differentiate from competition, broadening locations offered, and economic conditions. Callum concludes, ‘Franchisors continue to maintain a positive outlook for growth prospects, availability of suitable locations, and availability of suitable staff. We were encouraged to record a continued positive outlook for franchisee profitability, arguably a franchise system’s most important key performance indicator.’ franchisor business to chief executive and former owner Michael Morton and his partner Julie Leitch - daughter of company founder Sir Peter Leitch - for $8 million. This is less than a quarter of what Mr Morton sold it to Veritas for in a reverse listing in 2013. • Chris Mason, the man who founded BurgerFuel in a Ponsonby store 22 years ago, has stepped down from the board of the now international company to become master licensee for BurgerFuel USA.

Business confidence may have taken a hit last year after the uncertainty following the election, but three well-established franchises in very different industries have all had a storming start to 2018. sKids opened five new centres for the start of the new school year to provide before-school, after-school and out-of-school care. There are now over 170 sKids centres around New Zealand, making the franchise the leading provider of such services. It takes its position seriously, looking for ways to ‘give back’ to the communities it serves. ‘At the beginning of the school year, the sad truth is that many New Zealand kids can’t afford to start school because of the cost of equipment and uniforms,’ says sKids marketing manager Bex Woolfall. ‘This means that they are coming from behind right from the start of their education. Through our charity, Kiwi Kids Education Foundation, 800 kids across the schools we serve will receive a $50 voucher towards their stationery and school uniform.’ According to the 2017 Franchising New Zealand survey, almost a quarter of all the 631 franchises in New Zealand each contribute over $100,000 to charity every year. Other ways in which sKids gets involved

DREAM DOORS LAUNCHES US EXPANSION Back in 2014, Dream Doors founder Derek Lilly was part of a small delegation from New Zealand which attended the annual convention of the International Franchise Association in New Orleans. Four

16

years later, he’s just appointed the first state master franchisee (for California) in a $2 million investment and is currently in the USA helping to bed down the company’s carefully-planned support and supply structure.

‘You can’t just take a franchise system from New Zealand, plonk it straight down in another country and expect it to work,’ says Derek. ‘We’re even changing the name for the US, from Dream

‘Rather than just sponsoring, we created opportunities for our kids to get involved, including designing a ‘NightOwl’ cushion cover,’ says Bex. ‘We put the top designs to the vote through Facebook, and now the top five feature on the cushion cover (pictured) to be sold for charity during the trail. Meanwhile, The Coffee Club reported a 50 percent increase over its previous record sales week as the hospitality year got off to a storming start, with a record $1.5 million week at the beginning of January 2018. Strong summer sales meant the franchise brought in 50 percent more revenue than its previous $1 million record, set in December 2014. During its record week, The Coffee Club’s 62 franchised outlets served up 33,000 flat whites, 14,000 cappuccinos, 12,500 lattes, 3,000 Eggs Benedict with bacon, 2,000 chicken & bacon club sandwiches, 4,300 iced coffees & chocolates and 3,700 smoothies. And appearance medicine provider Caci was also hot off the block, launching the first new franchise of 2018 in early January. The new clinic in Sydenham, Christchurch, is the first in the country to feature Caci’s new-look design. It will be a big year for Caci franchisor FAB Group with its first three outlets opening in London under its Skinsmiths brand.

Doors to something which better reflects the appeal of what we do.’ Dream Doors has now appointed a franchise advisory panel to help the company come to grips with the massive US market. It features some impressive names: Chairman Anthony Vidergauz is the former CEO of the very successful California Closets franchise; Robb King is former COO of Paul Davis, the nationwide restoration franchise; while Edward Leaman is a brand-building expert and teacher at Stanford University who has

Franchise New Zealand

Autumn 2018

Year 27 Issue 01


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www.twitter.com/FranchiseNZ

Foodstuffs to trial AI shopping

Shoppers at a suburban Four Square franchise will be the first in the world to trial new artificial intelligence technology that brings the checkout to the trolley.

Four Square Ellerslie will be the flagship outlet to trial the Smartcart computer vision technology. This recognises products as soon as they are placed in a shopping cart, eliminating the need for barcode scanning, checkouts and queueing. The technology also allows shoppers to set a budget and be alerted if they go over their chosen amount.  To activate Smartcart, shoppers simply download an app and link a payment method to their account. In store, they pair their smartphone with the shopping cart, and as they add products to their cart the items appear on their phone’s virtual basket – removing traditional barcode scanning and the checkout process altogether. Ellerslie Four Square was named Store of the Year at the 2017 Foodstuffs North Island awards. Franchisee Lin Guo was commended for taking every opportunity to get involved and learn, as well as being involved in lots of training outside the store. Now the suburban 200 sqm store will be at the forefront of the latest in retail technology.

WHAT’S TO COME FOR OUR ECONOMY? The good news in the latest Quarterly Economic Overview from Westpac is that although the economy’s momentum may be softening as expected, it is doing so from a higher starting point after Statistics NZ revised its estimates of GDP going back several years. The Overview suggests that future GDP growth is likely to be a little slower than in recent years, averaging a little under 3 percent per annum, with growth slower in 2018 before picking up in 2019. Increases in government spending will boost economic activity from mid-2018 and will be reinforced by the related lift in household incomes and spending. However, regulatory changes in the housing and labour markets are likely to offset some of the boost in the near term because of their effect on business confidence. Although there has been renewed strength in house prices and sales in the past few months, the review expects nationwide house prices to fall by a total of 2 percent over the coming four years. This may have

an effect upon government policies intended to dampen growth, as well as household spending. The latter could also be affected by the slow-down in immigration since mid-2017. Arrivals have flattened off and departures increased as conditions abroad improve. Despite this, various factors mean the unemployment rate is expected to creep upwards, although probably not by enough to improve franchisors’ current concerns about the availability of suitable staff. Annual inflation is expected to remain in the lower half of the 1-3 percent target range in the near future. As always, the impact of these and other changes predicted in the Overview on franchisors and franchisees will depend to a large extent on the industry in which they operate. For intending business purchasers, there is little to put them off: however, it will pay them to do their homework, research the industry and the individual franchise thoroughly, and consult specialist advisors before making their decision.

worked with everyone from GAP to The Body Shop. Newly-appointed CSO Dan Bish has over 30 years’ experience in franchising while Joe Kurland brings another 25 years of knowledge from working with international service franchises such as Alphagraphics and Berlitz. With this level of research and expertise behind him, Derek is confident that Dream Doors’ Amazing Kitchen Facelifts franchise has a bright future in the USA. ‘Our California master franchisees, Len Brenner and Anthony Bortz, have got off to a good start and our recent stand at the Franchise West expo in San Diego attracted a lot of attention. The market is wide open so we’re looking to help franchisees establish a first-class network across the USA.’

franchise.co.nz – PUTTING PEOPLE IN BUSINESS

Laws that can bite Franchises which serve or process food have to stay on top of hygiene and employment issues. Stewart Germann outlines some areas Stewart Germann to think about In a busy café or restaurant, it’s sometimes easy to overlook details which can get franchisees and the brands they represent into big trouble. That’s why franchisors need to be aware of changing laws and provide guidance to their franchisees at all times. By staying ahead of the game, they protect the investment of all concerned... ...continue reading at: www.franchise.co.nz/article/2492

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Franchising – it’s in our DNA 17


opportunity: business & commercial

seeing the WIDER PICTURE W

hen you combine a good franchise with a creative franchisee, all sorts of interesting things can happen.

Peter Darnell, the business development manager for Wide Span Sheds, remembers being impressed the moment he saw Laurence Greig’s CV: law graduate, Certified Company Director with the NZ Institute of Directors, Certified Risk and Compliance Management Professional with the International Association of Risk and Compliance Professionals, and more. ‘Laurence has over 30 years’ experience in private and government sectors in the areas of strategic management, change and innovation, Peter says. ‘On top of all that, he spent eight years running HoneyLab, the kanuka honey-based skin treatment company he established with scientist, Dr Shaun Holt. It’s a combination that makes him exactly the sort of person Wide Span Sheds is looking for. ‘In return, Laurence had identified Wide Span Sheds as a high-return, multifaceted opportunity where his experience and entrepreneurial flair could flourish. He saw the franchise as enabling him to accomplish a number of financial and personal goals. I’d like to think his story will encourage skilled executives to forget about suit-and-tie futures and think, “This could be me.”’ From top exec to building sheds might sound like a big step, but these aren’t garden sheds. Part of the family-owned Steelx Group, Wide Span Sheds is Australasia’s fastest-growing supplier of steel building kits. Its products include everything from small domestic buildings, farm and agribusiness structures to large commercial premises and warehouses, with quality engineering offering clear spans of up to 27 metres wide by over 200 metres long. With long-established franchisees in the upper North Island having proven that there is a huge market for its unique range here, Peter is looking to find more people like Laurence who can take the opportunity and run with it.

standing out Laurence bought his franchise after moving from Wellington to New Plymouth with partner Hazel. He had originally planned to retire, but was soon bursting with enthusiasm for Taranaki as a land of opportunity and found Wide Span Sheds an ideal outlet for his energy and experience. Recently, he’s been joined by his son, Gulliver. With full support from the franchisor team, Laurence set out to maximise the opportunity by creating unique premises to showcase the company in the Taranaki market. ‘Ours is a purposebuilt fit-out in a high franchise.co.nz – PUTTING PEOPLE IN BUSINESS

Laurence Greig and the wow zone

Top exec finds Wide Span Sheds meet his personal and financial goals

visibility area,’ Laurence explains. ‘We have two customer areas. The first displays products and components, and is where Gulliver or I take a potential customer through design possibilities. We feed these into Wide Span Sheds’ bespoke software that calculates site-specific engineering and material requirements then shows the building as a 2-D image on a big screen. ‘Next we go to the second area, the “wow zone”. Using an iPad, Wide Span Sheds’ in-house Augmented Reality app brings the proposed building to life as a 3D image. Customers can then look at the building from various angles and even go inside. Most people find it hard to visualise spaces so being able to have a virtual reality building is definitely a major competitive benefit for Wide Span Sheds franchisees.’ Because Wide Span Sheds’ exclusive supplier Metalcraft manufactures the components for each building kit, franchisees don’t need storage space. However, the Taranaki site has room for utes and equipment used by assemblers who are recruited, trained and well-paid as part of Laurence’s commitment to giving a chance to those whose backgrounds make finding work difficult. ‘Having in-house staff means we build up expertise faster and provides customers with far more reliable completion dates than competitors using contractors,’ Laurence says.

busy business Since opening their doors in late 2017, Laurence and Gulliver have been kept busy with quotes and work mostly generated by Wide Span Sheds’ strong online presence. ‘We’re finding lots of interest from lifestylers for barns and horse arenas, and from the dairy industry,’ says Laurence. ‘One farmer showed up with a photo of his milk shed which had been flattened by Cyclone Gita – the replacement will cover close to half a hectare under the one roof. We are also working on setting up sales agents in growth centres such as Hawera who will help promote the Wide Span Sheds solutions.’ The franchise fee for a Wide Span Sheds territory is $95,000 +gst, which covers all training including flights to the franchise headquarters on the Gold Coast. $28,000 of the fee is allocated to setting up premises and marketing programmes. Franchisee support services, on-going software development and other activities are funded through a small percentage of the total value of the Bill of Materials for jobs undertaken by each franchisee. As Peter says, ‘Given his background, you can be sure Laurence conducted meticulous due diligence on the franchise, which should give other high-flyers confidence. They’ll have to be quick, though – currently we have just six North Island areas available and Laurence is seriously evaluating investing in a second territory. Call me now and let’s start talking.’

advertiser info Wide Span Sheds www.sheds.co.nz Contact Peter Darnell P 0-9-899 2044 peter.darnell@sheds.co.nz

19


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Franchise New Zealand

Autumn 2018

Year 27 Issue 01


brewing up A STORM Robyne Bransdon: ‘Portermark is a great business’

Portermark wants master licensees to develop its essential hospitality service throughout NZ

W

hen you have a service that’s essential for every pub, hotel and restaurant in New Zealand, you have a massive market opportunity. But how do you deliver such service efficiently throughout the country? By appointing franchisees, of course. And how do you help them grow fast and do a good job? By appointing local master licensees. It’s a combination that means opportunities not just for franchisees to earn a very good income, but for experienced business builders to create sizeable networks of their own. Portermark is looking for master licensees in each of the North and South Islands who will appoint, train and provide marketing and operational support for up to 25 service franchisees with the assistance of the franchisor. Portermark is an innovative service that specialises in doing one thing exceptionally well – cleaning beer lines. ‘A draught beer has to look good, taste even better, be a safe product for consumers and, from the bartender’s perspective, be easy to pour,’ says Portermark founder Jeff Rankin. ‘Unfortunately, beer lines are easily infected with bacteria and candida from yeast; protein compounds lead to oxidation; and you get mineral deposits and scaling, too. ‘The result not only spoils the taste but can be dangerous – in Australia, not one establishment our franchisees have tested has passed food-grade hygiene and safety standards, despite having line-cleaning systems in place. There are safety issues, too, for hospitality employees cleaning lines without appropriate training or clothing. As workplace and hygiene standards go on getting stricter, Portermark franchisees are in a position to clean up – and interested Kiwis can currently get the market of their choice.’

sceptic turned fan One person who’s glad she took up the opportunity in Australia is Robyne Bransdon, a former postie and cleaner who bought her Portermark franchise in May 2017. Robyne and husband Mick are keen home brewers so are aware of the importance of clean lines, as well as the likelihood of tighter hygiene regulations in the near future. Robyne admits she was a bit sceptical about franchising, ‘but when I saw Portermark advertised I realised it had my name all over it. It got me thinking, “What am I worrying about when many of the world’s top brands are franchises?” I’m glad I came to my senses before it cost me the selfemployment opportunity of a lifetime.’ Robyne met Jeff and ‘gave him a hard time, questioning everything,’ she grins. ‘Our lawyer, also a bit of a franchise sceptic, quickly came round, impressed with the thoroughness and transparency of the Portermark approach. franchise.co.nz – PUTTING PEOPLE IN BUSINESS

‘Meanwhile, our accountant went through the financials with a fine-tooth comb. I contacted a number of Portermark franchisees for their feedback and talked with friends in hospo. Everyone and everything said, “Do it!”’

putting in the hours After going through the intensive Portermark training programme, Jeff helped Robyne launch her business – something which the master franchisees will also do in New Zealand. ‘Over our presentations to potential clients, I developed my sales skills, learning what to say, how to overcome objections and even how to read body language. Since launching in May last year, I’ve been steadily winning clients, with every one being a source of ongoing business.’ Robyne says that although some old-school publicans are resistant at first, switched-on bar managers readily welcome the advantages Portermark offers, with a money back service guarantee, a big reduction in beer wastage, a three-weekly proper cleaning cycle rather than an inefficient weekly hassle, and an increase in happy, satisfied customers all adding to the bottom line. These benefits are supported by glowing testimonials from big names such as the Novotel Hotel Group, while brewers are also recommending Portermark cleaning to deliver their product to customers in the best condition.

city life or country living? Robyne and Mick live on the Central New South Wales Coast. ‘It’s a beautiful part of Australia where we love fishing and camping, and of course home brewing. My Portermark territory is about a three and a half hour drive from north to south, with no cities, but as client numbers grow the regular sales and service trips become more efficient and more profitable.’ Jeff Rankin believes Robyne’s experience is significant for New Zealand, as it demonstrates territories do not need large population centres to be successful. ‘Central Otago alone has enough people for a franchise to achieve a very solid income working just 15 hours a week servicing 15 customers 17 times per year. That’s equally achievable on the West Coast, the Far North, Central Plateau … the list goes on and on. ‘Then there’s Auckland and other major centres where a territory need only cover a few square kilometres – there’s massive potential for franchisees.’ The master licence investment is $325,000 +gst for the North Island and $275,000 +gst for the South, which Jeff says can be quickly recouped through royalties on franchisee sales and ongoing turnover. Robyne concludes, ‘I hope my experience inspires New Zealanders with a taste for good beer, an eye for a unique niche market and a passion for success to call Jeff. Portermark is a great business.’

advertiser info

Portermark www.portermark.com Contact Jeff Rankin P 0061 4 4989 0300 jeff@portermark.com

21


SILVERDALE MALL

Outstanding Opportunity Opening March 2018

We are now accepting franchisee applications to secure this exciting opportunity and become part of the SIERRA success story.

This opportunity could be a joint venture with the right franchisee. SIERRA Coffee was established in 1992 and is a 100% New Zealand owned and operated franchise with over 30 cafés nationwide offering: • Quality on-trend food and excellent locally roasted coffee • Excellent training and ongoing support • Highly passionate and experienced franchise team • Preferred bank finance arrangements • Continued expansion

To find out more contact: Murray Belcher 021 483 500 murray.belcher@ufsltd.co.nz

Sierra Coffee

@sierracoffeenz

0508 NZ COFFEE

www.sierracoffee.co.nz


ON TARGET Army man salutes Dream Doors the back-end systems are very thorough, and the support group are very good at prioritising things that help you advance.’ Coming from a military man, that’s praise indeed. Dan Sheridan

W

hen Dan and Kylie Sheridan decided to work together, they had plenty of choice. Kylie has a retail and travel background, while Dan was a Major in the NZ Army with a diploma in business studies and a masters degree in strategic implementation. ‘Having always gone where we were posted, when I became a reservist we chose to move to Tauranga,’ says Dan. ‘We wanted a franchise for our first foray into business so, with professional help, we developed a shortlist. Dream Doors appealed, partly because it was within our area of experience – we’ve done a few renovations together – but also because of the opportunity it offered. The product, systems and support were all clearly very professional, and we could start the ball rolling as a husbandand-wife unit then build our team as the customer base grew.’ Dream Doors supplies and fits replacement doors, surfaces and fittings to restore a home’s looks and value for a fraction of the cost and wastage of building new units. Since franchisor Derek Lilly set up in Wanaka in 2008, it has since expanded throughout New Zealand, and in Australia and the USA, too. Because Dream Doors doesn’t require a showroom or staff immediately, start-up is both efficient and affordable. ‘Still in our first year, we’ve done around 30 kitchen facelifts, new kitchens, an upmarket café fit-out and doctors’ reception and exam rooms,’ says Dan. ‘The Dream Doors training gave us a lot of confidence;

franchise.co.nz – PUTTING PEOPLE IN BUSINESS

wide market, happy clients Dan has developed a pool of talented sub-contractors through work on all sorts of projects. ‘The market for kitchen renovations is actually very wide. There are facelifts for home owners and landlords, investors, people selling houses, people buying houses, tired apartments, even staff rooms in workplaces. We started slowly, and initially Kylie was focused on helping our three kids settle in our new community, but now we’re a well-oiled team. The Dream Doors system delivers plenty of leads and our conversion rate is improving all the time – in fact, we’re ahead of schedule.’ Dan says they are now getting referrals from happy clients, ‘And people are so proud they are offering to let us show their kitchen to others who want to see what we can do.’ Dream Doors still has territories available in many parts of the country, as well as Australia and the advertiser info US. The investment required is just $75,000 with a further Dream Doors (NZ) Ltd $100,000 operating capital on www.dreamdoorskitchenfranchise.com hand. ‘Dream Doors provides Contact the backbone for you to build a Derek Lilly proper business which can be P 0-3-443 5133 highly profitable,’ concludes P 0800 437 326 Dan. ‘It’s hard work at the start M 027 213 5133 but follow the plan and it works. del@dreamdoors.co.nz Really, it’s up to you.’

23


buying a franchise

advice ON SCREEN A new video helps New Zealanders wondering what’s involved in buying a franchise

B

uying a franchise is an attractive way to get into business, but where do you start and how do you make the process as safe as possible? Those are the questions that a new video sets out to answer. How to buy a franchise is a new free video that’s designed to help people make a sensible decision about buying a new or established franchised business. At just three minutes long, it’s designed to be an easy introduction to franchising which points people towards the other resources available. Created by the experienced team behind Franchise New Zealand, the video explains what you need to do and where to find the help you need when you start looking at opportunities. ‘We’ve been helping people find and research franchise opportunities in New Zealand for over 27 years now,’ says Sally Knight, who produced the new video. ‘We began with the print magazine back in 1992 then expanded with the website in 1997, before expanding with email, social media and digital publications. Video is the latest addition and we’ve tried to capture the same blend of explanation and information to reassure

JOIN THE LEADER IN OUTDOOR POWER EQUIPMENT RETAILING • • • • •

Own your own business Become part of your local community Join a network of retailers committed to customer service excellence Be supported by a team of people dedicated to your success Reap the rewards of a well-established, profitable business model

STIHL SHOP is a nationwide network of locally-owned stores offering a wide range of high quality outdoor power equipment supported by fully equipped service workshops. STIHL SHOP owners and staff are friendly, approachable and fully trained with a strong focus on customer service and satisfaction. STIHL SHOP opportunities are available for new licensees in locations across New Zealand. For more information on how to join the STIHL SHOP team please contact 0800 864 264, email careers@stihlshop.co.nz or visit careers.stihlshop.co.nz

people that researching a franchise is straightforward if you follow the right path. ‘The video also features some of our most popular articles, which viewers can access free from the Home Page of our website. These enable you to start researching any franchise in detail.’ How to buy a franchise can be viewed at www.franchise.co.nz or via our YouTube channel.

Growth Industry Health & Fitness As a Body Audit franchisee your passion for health and fitness can be turned into a serious business income Our high energy franchisees work hard to make a huge difference in their clients' lives, enjoying repeat business to drive growth and success. Surprisingly, Body Audit franchisees don’t need a string of qualifications after their name. We provide everything they need from comprehensive training to awesome support and ongoing research and development. If you love health and fitness, professionalism and want to be part of a fantastic and committed team, check out our website or Facebook NOW!

www.bodyaudit.co.nz Then call Michelle 0274 331 266 to have a chat.

Making the call could be the best thing you've ever done

BECAUSE YOUR SUCCESS IS OUR SUCCESS! LOVE YOUR LAND 24

Franchise New Zealand Autumn 2018 Year 27 Issue 01


business & commercial

Paramount Services gives you the opportunity to enjoy what is most important to you

make time for

FAMILY W

hen Shaileshni and Mukesh Singh purchased their Paramount Services franchise in Auckland last year, they were looking for a way to spend more time with their family. In the 12 months since, they’ve not only done that – they’ve grown a profitable business, as well. ‘I had worked in a supermarket for the last 10 years, but I was tired of working long hours and not having enough time with my family when I came home,’ Shaileshni explains. ‘A friend was a Paramount Services franchisee and encouraged us to look at the opportunity. I had always thought that if I were to go into business for myself, it would be in the restaurant industry, but after hearing so many good things about Paramount, I did some research. I soon realised that this could provide more flexibility along with the reliable income our family needed.’

‘Client communication also matters: we’re there to provide a service so the more open the lines of communication, the better understanding we have of their needs.’ These relationships are just as valued by clients, too. ‘I was so surprised at Christmas when some of my clients left little gifts for us with “thank you” notes. They already give me their business – I should be giving them a present, not the other way around!’

in control of time and earnings Shaileshni still works 6 days a week, but finds plenty of time for other things. ‘Twice a week I only work in the evening, so I still have the days to take care of my family. I never have to travel far – our clients are all in a 30-minute radius from home – and I enjoy being out and about after years of being inside a supermarket all day. ‘Going into business for ourselves has given us control of both our time and earnings. Our franchise still has room for growth, but we have the choice to say when we have enough work. At the moment we’re settled, working steadily to pay off business debt and our daughter’s upcoming wedding, but we have plans for further growth in the future. I may need to take on some more help in a couple of years, but our future son-in-law has already offered to jump in and join the family business.’

Mukesh is an electrician, so the couple decided he should continue working while Shaileshni ran the business. ‘He works with me when he has the time, and our two children, Shayal and Ashitosh, help out when they’re not at university – it’s a real family affair. Of course, their studies always come first, but having their help has allowed us to take on more work without hiring other staff. Now I have more time and energy outside of work and I get to see my family during the day, too.’

And Shaileshni is keen to extend her skills. ‘When I find time, I’m going to get my NZ Level 3 Cleaning certification and learn carpet cleaning, floor stripping and polishing. Paramount Services is very encouraging of my skill development, which helps us grow in our ability to take on more specialised work. The franchise creates an environment of constant support without feeling pushed or pressured. We have control over the pace, direction and development of our business.’

systems and service

safe, affordable, rewarding

Shaileshni’s personal high standards and focus on customer service have combined with the franchise’s systems to make her business an immediate success.

Shaileshni has already recommended the Paramount Services franchise system to friends, and Paul Brown of Paramount Services is keen to hear from anyone looking for the same advantages.

‘We started with 5 sites, and have already grown to 15 in our first year,’ she says. ‘Paramount’s training gave us the tools and skills we needed to do the work efficiently. One of the biggest keys to our success has been building relationships with both the franchise and with our clients. We were asked to take on several “at-risk” clients with premises needing some extra care and attention, and the satisfaction I’ve had from bringing these up to Paramount standards has been one of the highlights of our first year.’

‘Shaileshni and Mukesh are the perfect example of a planned approach to having a franchise,’ he says. ‘They are a real family unit, and have made the most of the Paramount Services system which allows them to grow a successful business while also making time for what is most important to them.

Shayal, Mukesh, Ashitosh and Shaileshni: A real family business franchise.co.nz – PUTTING PEOPLE IN BUSINESS

‘Our franchises are safe and rewarding businesses for as little investment as $15,000 plus vehicle and equipment. We give you the training you need, advertiser info find your first contracts to get you started, and even handle the billing Paramount Services and collection so you don’t have to PO Box 8939, Symonds Street, chase money – you get paid on the Auckland th 25 of the month, no matter what.’ www.service-is-paramount.co.nz ‘We have opportunities all around New Zealand – including some very desirable areas outside the main cities. If Shaileshni’s story has inspired you, call me now.’

Contact Paul Brown P 0-9-376 7850 M 0275 430 233 pbrown@paraserve.com

25


Up to 700,000 dogs need your love and care! Did you know? Around 29% of New Zealand households own a dog At Jim’s you learn from a NZ Award-winning dog groomer to provide an awesome professional service – again and again! Jim's brand is well-known in New Zealand, plus there are over 3,000 franchisees around the world – so we have the experience you need Joining Jim’s • Your own purpose-built Jim’s dog trailer • Full training Dog Wash • Uniforms gives you: Everything you need to run a professional and branded business, from promotional items to grooming equipment Call today to ask about how you can build a hugely fun and rewarding business with Jim’s Dog Wash

You’ve seen the trailers why not join the team? You’ll have the comfort of knowing more than 3,000 others worldwide have succeeded — so can you! GREAT REPUTATION

Clients trust Jim’s which means they're happy to pay more for peace of mind

ONGOING SUPPORT

You'll always feel guided and supported with options to learn tried and trusted ways to grow your business

OUR FEES ARE BASED ON LEADS

This means Jim’s don’t take a percentage of your income — you keep more of what you earn ensuring you’re rewarded for your own effort We’re always on the lookout for self-motivated people who wish to succeed. The investment level is from $15,000.

Call today 0800 454 654

CALL NOW Ph: 0800 454 654 www.jimsdogwash.co.nz Territories available from Kerikeri to Wellington

SPECIAL DEALS - Call NOW! We're so busy we've decided to offer special deals on three Auckland territories and several regional cities

from only

$35,500 plus GST

As a Jim's Tree and Stump Removal franchisee you can receive referrals from over 260 Jim’s Mowing franchisees. This enables you to provide *You’ll also need to Jim’s quality customer service, whilst profiting from: purchase, hire or lease a suitable truck, chipper, grinder and a range of gear

• Quality training, both initial and ongoing • Highly developed business operating procedures • Reduced rates: insurance; leases; financing and supplies • Being part of the nationally recognised Jim’s brand • A comprehensive manual

Contact Brendon 021 818 926 brendon@jimstrees.co.nz

Becoming your own boss is easier than you might think – with Jim’s 26

JIM’S BUILDING INSPECTIONS NZ FRANCHISES AVAILABLE! TIME TO GET OFF THE TOOLS? » BE YOUR OWN BOSS » $1500 OF GUARANTEED WORK PER WEEK » OPPORTUNITY TO JOIN A RECOGNISED BRAND » MARKETING & BUSINESS SUPPORT » QUALITY INITIAL & ONGOING TRAINING » EASY REPORT WRITING WITH OUR INDUSTRY LEADING IPAD APPLICATION

WANT TO LEARN MORE? 0800 454 654 INFO@JIMSBUILDINGINSPECTIONS.CO.NZ

jimstrees.co.nz

WWW.JIMSBUILDINGINSPECTIONS.CO.NZ

Franchise New Zealand

Autumn 2018

Year 27 Issue 01


opportunity: home services

Jim’s Mowing has plenty of work for franchisees wanting small businesses or large

HERE TO HELP W

hat are the big advantages of Jim’s Mowing?’ asks Gavin McGlashan. ‘Flexibility, a solid income with a realistic turnover of well over $100,000 pa, and more work than you could possibly want. ‘I can prove it, too,’ says the area franchisor for Jim’s Mowing in the Lower North Island. ‘This year I’ve already had to turn down 1500 customers and that means I have a huge shortage of franchisees. I need people right now, and they can start today!’ It’s a message echoed by his colleagues all around the country from Northland to Otago. There are over 230 Jim’s Mowing franchisees already, giving the franchise enormous brand awareness, and room for many more.

coached to succeed As area franchisor, Gavin (pictured above) has helped over 40 Jim’s Mowing franchisees to learn, manage and market their businesses. It’s a role he is well suited for: a builder by trade before turning to real estate, he says part of his ethos is helping people. ‘Over the years I’ve been heavily involved with the Scouts and Business Network International. Having stopped selling houses I was looking for a business, but when a colleague handed me the prospectus for Jim’s Mowing I said, “Lawnmowing? I’m a builder!” That was 13 years ago, and I’ve never once regretted my decision to buy the franchise. ‘I knew how to run a business from my building days and the franchise system allows me to coach people in growing their business without having to charge them dollars per hour. It’s what we do – I help people into business, and spend as much time with them as they need or want. They don’t have to worry about how much it is costing them either, as that’s how the Jim’s Mowing franchise system works. ‘The great thing is Jim’s is so successful as a model. One of my franchisees is an ex-builder like me and loves the business because he can use all his skills. He barely touches a lawn-mower during the winter – he tackles all the other work his clients need from new fences to putting in windows, major tree work to hedge-trimming and everything in-between. That’s the great thing about Jim’s Mowing – you have a group of regular clients and they quickly latch on to all the other things that you can do for them.’

all the work you can handle In addition to all the repeat business, Jim’s Mowing franchisees get a lot of new work through the company’s website and 0800 number. ‘Another franchise.co.nz – PUTTING PEOPLE IN BUSINESS

advantage is that a lot of clients regularly call after-hours and Jim’s has its own call centre, so franchisees can have a life,’ says Gavin. ‘I look after advertising locally, so they don’t have to worry about that, either. We have a simple formula: if we have more than enough work, we don’t advertise. At present, for example, I’m only advertising in New Plymouth because we have three new franchisees there, but work tends to build up fast so that won’t last long.’ Another of Gavin’s roles is to ensure new clients are allocated to franchisees fairly. ‘Everyone has their own territory so they are offered any new work in their territory first, but if they already have all the work they want, we will offer it to another franchisee. Most of our established franchisees have more than enough work, but if they want to grow their business Jim’s is flexible enough to allow them to employ people. We have several franchisees who have built up quite sizeable businesses that way, which is why we suit all kinds of people – those who are happy with small operations, and those who want to become big business managers.’

immediate start Gavin says that the most important qualities for any franchisee are people skills and life skills. ‘As long as you have those, we can teach you the rest. Once you’ve gone through the training, if you need more help, or time or advice, or just want to talk things through, we’re there for you. ‘There’s no doubt in my mind that Jim’s Mowing is a fantastic investment for anyone who has the motivation to get out of bed in the morning. For a $30-$40,000 investment you can be turning over more than $100,000 in a year. In addition, if you don’t want to employ people then, once you have all the work you want, you can sell off part of your territory to another franchisee. Some of our franchisees have done that several times, giving them a nice capital gain each time. Jim’s Mowing franchises are available for immediate start throughout most of the country. ‘Apart from a vehicle, the investment includes most of your equipment, a trailer and power tools, plus a good batch of clients to get you going,’ says Gavin. ‘Give us a call and talk to your local area franchisor – we’re here to help.’

advertiser info Jim’s Mowing www.jimsmowing.co.nz Contact Area Franchisor P 0800 454 654 info@jimsmowing.co.nz

27


buying a franchise: research

support pays

DIVIDENDS

Good field managers make all the difference to what franchisees can achieve, finds Simon Lord

E

very small business owner knows the feeling when you have to make a critical decision outside your everyday operational experience. Will adding an extra employee increase productivity or reduce profitability? How should you best meet the challenge of a new competitor? Why are sales increasing but profits reducing? For some people, these decisions are what makes business an enjoyable challenge, but for many, the excitement is tempered by the knowledge that they have their house on the line if they get it wrong. So how would it be if you could call on someone who had seen others face the same issues and knew the solutions that worked? I’m not

The Smart Choice.

talking about a business coach or mentor with experience of the issues all businesses face, but someone who knows your specific business inside out and can access specialist help and resources – at no added cost. It might seem too good to be true, but it’s the premise behind franchising. One of the biggest benefits for franchisees should be that the ongoing fees they pay finance (among other things) on-site support on a regular basis from people who have seen it all before and know how to help them make the right decisions. These are the field managers, or field support managers.

Australia’s premier Test and Tag franchise Appliance Tagging Services now has opportunities for passionate franchisees in New Zealand

Become a smart business owner with Milestone Homes. This is a unique opportunity to enter the exciting and dynamic business of new home building in a market segment that is poised for significant growth in the years ahead.

Low entry costs and large territories Access to an established ATS client base Sales and Marketing support Reports, invoices & debt collection done for you as part of Administration support  Genuine repeat business  No electrical experience required  Not weather dependent    

Contact Steve Wren +61 401 655 655 or by email to steve@ats.com.au www.appliancetaggingservices.com.au 28

Franchise New Zealand

Autumn 2018

Year 27 Issue 01


OWN A RODNEY WAYNE SALON what do they do? It starts with structured planning and goal setting, agreeing targets in all sorts of areas, setting budgets, and breaking everything down into manageable bite-size chunks. That’s a good discipline for any business, but it has more impact when the franchisee is dealing with someone who can say, ‘Look, this is achievable, so-andso in another area has managed it in the past year and here’s how they did it.’

IT’S YOUR TIME TO SHINE

istockphoto.com/monkeybusinessimages

But it doesn’t stop at advice. Any good franchise will have the systems in place to benchmark Key Performance Indicators across a wide range of issues (see page 62), and it’s the role of the field manager to monitor those KPIs and help the franchisee see how they can get better results for the effort they’re putting in. And another advantage should come from the ability of the field manager to call in expertise from another part of the company. As Damion Kaukau, one of the first field managers to win a Westpac award for field support put it, ‘My job is bridging the gap between the corporation, which has the resources, and the franchisees, who are the individuals with the skin in the game. If I think they need specific advice on, say, merchandising or store layout, then I can arrange for the specialists to help.’ Field managers have another role that is crucial to the overall health of the franchise, too: policing the system to make sure that standards are maintained, whether in product quality, customer service or brand image. Having someone else with this level of involvement in your business might seem intrusive – even unwelcome, which is why people skills are a paramount requirement for good field managers. But franchisees who are willing to listen, prepared to take advice and able to make changes will find that their business prospers accordingly. As Ivy Joe, a multiple award-winning franchisee, said, ‘Your support team are there to help you run your business better, so there’s no point in being offended – listen to them and try what they suggest.’

questions to ask about field support Of course, the examples given are of franchises which are doing it right. They have devoted the resources to recruiting, training and supporting field managers who have the skills and credibility to make a difference to the franchisees they serve. Sadly, that’s not always the case. In some franchises, the support function is under-funded and over-stretched. If field managers have too many franchisees to support, or the underlying systems aren’t there to provide them with the data they need to evaluate changes, or are based overseas with no real knowledge of the local market, then they won’t achieve the best results. That’s why, if you’re investigating a franchise opportunity, it’s important to look at what level of support you will really receive once you get up and running. Here are some questions that will help:

Rodney Wayne invites you to join this iconic New Zealand brand. Becoming a Rodney Wayne salon and Shampoo ’n’ Things owner comes with a host of unique benefits. Proven system for success Industry-leading training and support World-class marketing and customer engagement programme Superior products Strong buying power Franchise opportunities are available nationwide.

• How often are visits and when do they occur? • What is the typical duration of a field visit? • Where do field visits take place? • What are the key objectives of the field visit programme? • What does a typical field visit cover and look like? • Who will be conducting the field visits? • What can be expected before, during and after the field visit? • How valuable do existing franchisees find field visits? • Do field visits focus on ways to build franchisee profit? In addition to asking the franchisor these questions, talk to franchisees and find out how helpful the support really is. Generally, you will find that top-performing about the author franchisees in good franchise systems value the advice they Simon Lord is Editor of Franchise receive and act upon it. Do the New Zealand media and has same when you buy a franchise and over 35 years’ experience in franchising in New Zealand and you’ll grow faster and further than the UK. you ever could on your own. franchise.co.nz – PUTTING PEOPLE IN BUSINESS

Visit rodneywayne.co.nz/franchising to learn more or call 09 358 4644 MOST AWARDED SALON, L’Oreal Style and Colour Trophy Awards 2016. FIVE STAR CUSTOMER SATISFACTION RATING, by Canstar Blue for Hair Salon Service and Advice 2016.

29


opportunity: food & beverage

small is BEAUTIFUL New Domino’s franchisee abandons the traffic and reaps the rewards of life in the provinces

H

aving been well-established in Auckland for years, it could have been a bit of a wrench for Neeraj and Pallavi Vishwakarma to move to Wanganui a few months ago to take up a Domino’s franchise. ‘But, as I tell friends, I spent nine years in an Auckland traffic jam and life now is very different,’ Neeraj smiles. ‘It’s early days but I’m very pleased with how everything is going.’ Neeraj and Pallavi worked together in the quick service restaurant industry for five years before buying their own business. ‘When I came to Auckland nine years ago as a student I did a stint with Domino’s before moving on to Pizza Hut and McDonald’s and moving up the ranks. I then had a couple of years with ANZ while also owning a commercial cleaning company which allowed me to save enough to start buying a house in Auckland.’ While banking and cleaning, Neeraj also undertook a great deal of research into the food business and set his heart on owning a Domino’s franchise. ‘The market is growing very fast here, but very few brands are actually growing their market share. The outstanding one is Domino’s: they are at the cutting edge, bringing in new technology and upgrading their operating systems constantly to improve service and profitability. ‘What keeps them number one though, is they pay attention to what customers want. If I were to put my customer hat on, after a while I’d probably stop eating at most places as I would have tried all the products. Domino’s, however, brings in new products all the time. That’s what makes a food business grow – something fresh and new for fans to try.’

better, hotter, faster Domino’s has a hard-earned reputation for innovation, with GPS driver tracking, delivery robots and drones all having caused a media stir in the last three years. According to Scott Bush, Domino’s General Manager NZ, ‘The world of pizzas is fast-moving and competitive, and we aim to keep it that way. Over the years, we’ve fine-tuned our operating systems and introduced brilliant new technologies to deliver products which are better, hotter and faster, and all our franchisees benefit from that whether they’re in Wellington or Wanganui.’

Neeraj and Pallavi Vishwakarma are glad they moved out of Auckland to take up an opportunity with Domino’s

‘Our systems have been perfected in 2,200 stores across the 7 countries in which Domino’s Pizza Enterprises operates, and we have consistently stayed ahead of the game in everything from high-speed ovens to online ordering. Yes, if you become a franchisee you need to work hard, be a great leader and quick to adapt, but we’ll be behind you every step of the way.’

together, we can do this Buying any business can be scary, so before making his final decision Neeraj had a long chat with Scott. ‘Most of the nervousness I had went away as a result,’ he says. ‘Scott outlined the potential and plans Domino’s has, told me about all the innovations they are introducing in the next few years, and gave me a great deal of confidence that together we could do it.’ Needless to say, Domino’s has put a great deal of thought and energy into its training, as Neeraj discovered. ‘Despite my experience, this was my first time as a restaurant owner so all the training was valuable and important,’ he says. ‘There’s a six-week solid training period on the floor of the stores learning all there is from ordering stock and managing inventory to marketing and hiring staff. It covers absolutely everything from opening up and starting the day to the closing shift when we make 80% of our sales. In addition, we spend time with the franchise’s field consultants learning all the software and systems. It’s very thorough, and since opening I’ve been very well supported by the local business development manager in my region as well as having the head office team to call upon. ‘If you’re thinking of getting into this industry, I’d definitely recommend Domino’s,’ says Neeraj. ‘Don’t be scared of moving out of the big city, either. There is great potential in the small towns – we are planning to open a second outlet soon – and the quality of life is so much better. Rather than spending time in traffic I have time to devote to my family and our business.’

make the move Domino’s is still growing and is looking for franchisees in many parts of New Zealand, ‘Particularly in regional centres and fast-growing areas where we have locations available right now,’ says Scott. ‘The investment for new franchisees is from $500,000 depending on location, and the returns can be considerable.

Neeraj Vishwakarma: ‘I’d definitely recommend Domino’s’ franchise.co.nz – PUTTING PEOPLE IN BUSINESS

‘As Neeraj and Pallavi have discovered, taking the plunge into a smaller town has its rewards. Costs are lower, it can be easier to advertiser info find the right staff, and the lifestyle is so much better. Domino’s They are making the most www.dominosfranchise.co.nz of it. If you share the same Contact vision and have the drive to Franchising Team make it work, call me now P 0508 4 FRANCHISE and find out how Domino’s 0508 4 37262 can work for you.’ franchise.recruitment@dominos.co.nz

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Do you need help finding your way to everything you want in life?

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Download Your FREE Franchise Info Pack here jimstestandtag.co.nz/nzfm

Franchises available throughout New Zealand. Call for a free consultation 0800 454 654.


franchise management

DRIVING

franchisee performance

Brand Bank This holds up-to-date brand guidelines and marketing material in one place to enable franchisees to access up-to-date accurate material quickly and easily.

Franchise Infinity gives franchise networks easy and secure access to all the information they need

Critical Document Repository This stores business documents such as franchise agreements and other date-sensitive material. Files can be colour coded to indicate what action needs to be taken by whom, and emails will be automatically sent on achievement of milestone dates.

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unning a franchise can be a headache, particularly if your franchisees and their staff aren’t all singing from the same hymn sheet. Franchise Infinity is a cloud-based application that allows you to communicate easily with franchisees and keep documentation and training manuals, health and safety requirements, audits, KPI measurements, forms and marketing material all in one place. ‘It’s an all-in-one tool that allows you to manage all the critical aspects of your franchise – and, ultimately, the performance of the whole business,’ says Shane Boulle, the company’s managing director. ‘Franchise Infinity has been built by experienced practitioners who understand the intricacies of running a franchise and can work with existing systems to ensure franchisees and staff are following the processes and protocols that have been put in place.’ Bedpost franchisor Graeme Doak is a fan. ‘We implemented the Franchise Infinity system across 16 stores to provide centralised documentation and a single channel of time-critical communication between franchisor and franchisees. It’s been well utilised and proven to be extremely effective in giving franchisees access to all group communications and documentation.’

Franchisee Recruitment Contact details and detailed notes on the stages of recruitment for each enquiry are kept together. Utilising an automated email system, all communications can be tracked and archived. Staff and Human Resources Centralising operations manuals and staff training videos ensures franchisees and their staff are always on the same page. Employment contracts are also filed here, helping ensure compliance in an increasingly contentious area. Forum An internal message board enables franchisees to communicate informally and troubleshoot issues with their peers. Relevant files and images can also be shared. Compliance Audits Mystery shopper visits, health & safety audits and operational reviews are all captured and stored in one place. Reports are compiled and automatically emailed to all applicable parties. Analytics Enhanced KPI and newly-updated financial management dashboards monitor and report on key performance areas and indicators for outlets, and export to Excel for enhanced reporting and sharing. Checklists A powerful self-auditing tool can set up daily, weekly and monthly checklists to be completed by franchisees. Checklists are automatically emailed upon completion.

Franchise Infinity was created in New Zealand and has an international following, too. ‘The display is fully customisable with your own branding and each module can be tailored for content, how it operates and who can access it,’ Shane explains. ‘That makes it suitable for both large and small businesses – because it’s subscription-based it scales as you grow. For new franchisors, it provides a turnkey solution to best practice in operating a franchise system from day one.’

easy to implement

Lisa Thomas of The Wheel Magician says that Franchise Infinity has proved invaluable for their 10 service-based franchisees. ‘Having all communication in one place saves time for all involved. The inbuilt Knowledge Centre helps people share positive ideas and tips and has reduced unhelpful group emails. Having a digital manual rather than a hard copy makes it easy to update, and of course it provides greater security for the franchisor’s IP. Franchise Infinity makes for happy franchisees and franchisors.’

‘Franchise Infinity is faster, easier to use and more intuitive than running our own intranet. It’s been designed for the franchise industry and is easy to deploy and manage – it doesn’t require expensive in-house expertise, either.

what does it include? Learning Management System This delivers electronic training courses to improve staff skill levels and consistency. Documentation, tracking and reporting allows you to stay in control of operational compliance.

franchise.co.nz – PUTTING PEOPLE IN BUSINESS

‘Email to the network has dropped by 90 percent. Internal messages via Franchise Infinity allow hyperlink attachments to always-current central documentation, and the powerful analytics ensure effective management of information flow and traceability so you know who has read what. ‘For any business, Franchise Infinity reduces risk and drives compliance. It enables audits which identify problem areas and fix them through effective task management. And Shane and his team provide a truly professional service – they listen and act on input with a quick advertiser info turn-around time.’

Document Vault All business records are held in one secure, easily accessible place. You can run your entire franchise directly from your smartphone. Communications Suite An internal bulletin board includes email, notes and a messaging platform that allows you to send text messages to multiple recipients from your desktop. All messages are logged and can be tracked.

Robert Harris Café is one of the oldest-established franchise brands in New Zealand. David Thackery, the company’s national franchise manager, introduced Franchise Infinity to the company last year and has been very pleased with the results.

Shane Boulle

Shane is keen to talk to other franchisors who are seeking better ways to manage their networks and improve results. ‘Like franchising itself, we can save you re-inventing the wheel. Contact me to see how we can help you.’

Franchise Infinity www.franchiseinfinity.com Contact Shane Boulle P 0800 555 013 M 021 0836 6253 shaneb@franchiseinfinity.com

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franchise association news

THE FUTURE OF FRANCHISING Education and representation are vital if franchising is to continue its amazing success story, says FANZ

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ast year’s Franchising New Zealand survey demonstrated the key role that franchising plays in the New Zealand economy, with a total of $27.6 billion turnover. ‘That’s equivalent to about 11 percent of GDP, with activity spread all round the country,’ says FANZ chairman Brad Jacobs. ‘For that success to continue, it’s vital to build a local infrastructure of people who understand franchising and can help educate others. Over the past few months, we’ve been working hard with members to develop events in regional centres, and that’s now taking off. We’ve just had events in Christchurch and Wellington, and more sessions are planned in these cities as well as New Plymouth, Hamilton and Tauranga. ‘These events are designed to bring together franchisors, franchisees, master franchisees, advisors and anyone interested in learning more about franchising. They are open to both members and non-members of FANZ – go to our website for more details.’

the challenge of change Discussing the need for education, Brad says that the ever-changing nature of business, as well as evolving legislative environments, is a challenge for franchising worldwide. ‘At the recent International Franchise

Summit held in Taiwan, there was a lot of discussion about sustainability, energy and resource conservation, environmentally-friendly practices and fair trade-style products,’ he comments. ‘There was also concern that the problems experienced in Australia by a few individual business models and the actions of individual franchisees had led to the overall concept of franchising being attacked in the media and by some politicians there. ‘FANZ exists to help franchisors develop best practice in all areas, to share educational opportunities and set and maintain standards. We urge all franchises to join FANZ and take advantage of these benefits. Joining FANZ will also help the 37,000 individually-owned franchised units around New Zealand have a significant voice.’ A key area of interest is the proposed changes to the Commerce Act which have the potential to impact upon franchising (see page 58). ‘One of the most important roles of the Association is to work with Government and legislators and represent the sector to ensure that franchising is not unintentionally caught up in measures designed to manage other issues,’ Brad says. ‘For this reason, our Legislation Committee is preparing a submission on the proposal, as well as keeping a watchful eye on employment legislation. Please help them if you can.’

navigating the future The need for constant development means it’s appropriate that the theme of the 2018 National Franchise Conference will be Navigating the Future. The conference is being held at the Wairakei Resort, Taupo, on 8-11 August. ‘Last year’s event was a sell-out, so make sure you book early,’ says Robyn Pickerill, the CEO of the Franchise Association. ‘The National Franchise Conference attracts some of New Zealand’s most experienced franchisors, franchise managers, and advisors from all round the country. The inclusive and welcoming atmosphere of the event always surprises newcomers, but no matter how experienced you are, there’s always more to learn.

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Franchise New Zealand

Autumn 2018

Year 27 Issue 01


Greg Nathan

Natalie Brennan

Glen Todd

‘This year, we have guest speakers who will bring inspiration and innovative expert knowledge from the franchise sector and beyond. Employment will be a particular focus, with presentations from the Labour Inspectorate and workshops on both legal and HR implications, and there’s a varied programme of local and international speakers, stimulating workshops and round-table sessions.

this year’s presenters include: Greg Nathan is one of the legends of franchising. Founder of the Franchise Relationships Institute, Greg is a former franchisee, franchisor and a registered psychologist. The author of several studies and five must-read franchising books, Greg will share insights he believes franchisors need to embrace if they are to navigate the future successfully. Natalie Brennan is General Manager of Muffin Break, one of Australasia’s best-known café franchises. Having trained, led and mentored thousands of people over the years, Natalie is passionate about franchising and especially about paving the way for other women in this sector. Natalie is the 2016 winner of the FCA’s Woman in Franchising award. Glen Todd is CEO of MTF Finance and has been part of the team leading the company’s transition from a dealer-owned cooperative to a franchise operation. Learn how the brand has made the change while negotiating the post-GFC world and increasing regulation of the financial sector.

Phil Goldie

Jason Gehrke

Debbie Mayo-Smith

Phil Goldie, Microsoft NZ’s Commercial Director, will look at the latest technologies to help franchises improve the way they go to market and serve customers. Phil will cover real world examples and take a look at Artificial Intelligence in action. Jason Gehrke has more than 25 years’ experience in the franchise sector. As a director of the Franchise Council of Australia, he has watched some of Australia’s best known franchise brands get entangled in employment issues and wage scandals. He will share some vital lessons for franchisors. Debbie Mayo-Smith specialises in entertaining, plain-talking tips on making the most of the internet. She will show franchisors how to achieve significant competitive advantage; improved communication and promotion; improved income, better branding and lower operating costs.

More speakers will be announced shortly, including a leading franchisor from the US – visit www.franchiseassociation.org.nz for details.

Event Calendar 5 April New Plymouth After-5 11 April Auckland After-4 12 April Hamilton Morning 16 May Auckland Breakfast 17 May Tauranga After-5 27 June Auckland After-4 17 July Wellington Breakfast 8-11 August Taupo National Franchise Conference 16 August Tauranga After-5 10 November Auckland Franchise Awards For more details of these and other events, visit the Franchise Association website at www.franchiseassociation.org.nz, email contact@franchise.org.nz or phone 0-9-274 2901 franchise.co.nz – PUTTING PEOPLE IN BUSINESS

national franchise Conference 8—11 August 2018 Wairakei Resort, Taupo eaRly biRd RegistRation $250 off before 1st May 2018

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35


franchise management

A new way of paying provisional tax could benefit small and growing businesses. MYOB provides a guide

TAKING AIM

at provisional tax P

new method more accurate – it means you can avoid the major cash flow problems that can be caused by an unexpectedly high tax bill later on.

Fortunately, the advent of online accounting in recent years has made the calculation of tax and managing your accounts much easier. That’s particularly true within an organised franchise, which uses common accounting systems and coding not just to improve financial management but also to enable benchmarking and find improvements and efficiencies for franchisees right across the country.

why is it a good payment method?

eople don’t buy a business for the excitement of doing tax returns and admin – they buy a business for financial rewards, lifestyle benefits or to follow a passion. Sadly, though, tax returns are a necessary evil, and the penalties for making mistakes can be considerable. Just ask the franchisee who recently found his five pizza stores put into liquidation after he failed to do his returns and pay the IRD what it was due.

‘The speed with which such information can be made available means that a franchise using MYOB’s online accounting services can make wellinformed, timely decisions to boost their performance and their bottom line – as well as avoiding the penalties that come from getting it wrong,’ says Nick Fletcher, MYOB’s National Sales Manager. ‘Now there’s another benefit too.

new tax option for small business ‘One of the most difficult and time-consuming challenges for any small business is provisional tax compliance. Business owners are often left frustrated knowing their time and efforts could have been spent elsewhere. However, as of April this year, Inland Revenue has developed a new provisional tax payment option for small businesses. It’s called AIM – Accounting Income Method – and is a provisional tax payment method for enterprises which have a turnover of less than $5 million a year. If you’re using online accounting software such as MYOB Essentials, then you’ll be able to use the Accounting Income Method.’ If you’re just starting out – perhaps in your first year, or are still in the early stages of growth – then AIM is a good provisional tax payment option for you. It’s also suitable for businesses with irregular incomes; those whose cash flows are seasonal or unsteady.

how does it work? Unlike the IRD’s three alternative payment methods – standard, estimation and ratio – AIM lets you pay tax as you earn an income or make a profit. Using new functionalities in accounting software, you can work out your tax payments with ease – and in half the time. Your accounting software will calculate how much provisional tax you are required to pay each instalment based on your past two months of income instead of the previous year’s income, which was previously the case. Not only is this

36

It does mean, though, that you will have to make provisional tax payments more often than you used to. If you have registered for GST, you’ll pay monthly, and if you’re not, you’ll pay every two months. ‘That makes MYOB’s online accounting more valuable than ever,’ says Nick. ‘MYOB Essentials automatically calculates provisional tax, meaning easy compliance with no more guesswork.’

If you make your payments on-time and in-full, then you won’t be charged use-of-money interest. Also, if you make a loss, you’ll be able to get your refund straight away and not at the end of the year. This can be great news for start-ups and young businesses, as they’ll only have to pay tax on the results they achieve – rather than estimating how they’ll go and risk losing money when they need it the most. To decide whether they are eligible and, if so, whether to take advantage of this new option, franchisees should consult their accountant. It’s also important for franchisors to be aware of any implications and advantages for new and mature franchisees, and to issue guidance where there are common accounting systems that may need to be considered.

other benefits While the introduction of AIM offers a good reason for franchises to explore online accounting right now, Nick is keen to emphasise that making provisional tax payments easier is just one of the benefits it can offer. ‘MYOB online accounting and the available add-ons can automatically do lots of things that franchisees currently spend time on, from accounting to payroll. This can give them more time to focus on their business, more control and even more time to spend with their family rather than their paperwork. ‘If you want all these benefits as well as better benchmarking and improved margins, give me a call,’ Nick suggests. ‘MYOB has helped many franchisors and franchisees make the transition to online accounting, and is happy to provide step-by-step training to help you get the best out of your accounting system. One thing is certain – once you’ve advertiser info made the change, you’ll never Visit myob.co.nz/franchise want to go back, and with more to find out more, or contact: initiatives like AIM on the way, P 0800 39 66 38 the advantages will just nzfranchise@myob.com keep growing.’ Franchise New Zealand

Autumn 2018

Year 27 Issue 01


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franchise development

BETTER GOVERNANCE = better outcomes for franchises Franchize Consultants helps franchise companies improve their results

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ranchisors have so much to do that the big picture can often be lost within the constant day-to-day challenges of operational issues. But seeing the big picture is vital to ensure there is a strategic focus and a longterm plan for the continued advancement of all stakeholder objectives. This is where good governance can help.

Franchising your business or improving an existing network?

Do it once, do it right.

While franchising as a growth model has many advantages, it doesn’t guarantee great results over the long-term. Some franchise companies don’t grow, and some that do grow fail to sustain their success. Instead, they suffer decreasing returns, deteriorating relationships and a tiring market presence. ‘We believe an important reason why some large franchising companies go into decline is their franchising board and governance – or, more importantly, a lack thereof,’ says Dr Callum Floyd of multi award-winning specialists Franchize Consultants. ‘Good governance can help guide a franchisor through the many challenges and constraints a growing and ageing franchise system will need to respond to. For example, think of the need to adapt to a growing workload as more franchised units are added and require support, or the need to develop suitable responses to evolving technology, changing customer patterns, increasing competition and legal compliance.’ Callum suggests five key areas for boards involved in franchising to focus on. 1. Monitoring franchisee health and performance. ‘Often, boards don’t look broadly enough. Franchise performance needs to be understood across a wide range of metrics, such as individual franchisee returns, satisfaction levels, franchise renewals and compliance levels.’ 2. Improving franchisee performance and returns. ‘There can often be a focus on system-wide sales. However, enlightened franchising companies hold franchisee profit as a foremost group objective and imperative, and recognise that total system performance comes via a strong franchisee business model that, in turn, helps attract and retain quality franchisees.’ 3. Business model innovation. ‘Some companies, like Mitre10 and Foodstuffs’ New World, have made tremendous advancements in store format and operations. Directors need to help franchise companies grapple with the many environmental forces, like technology, that can require substantive changes to the way companies do business and the traditional delineation of franchisor and franchisee roles.’ 4. Improving franchise relationships and satisfaction. ‘Franchisee satisfaction levels have the power to help build or destroy franchise system value. Directors can help management through a focus on improving relationships, recognising the sensitivities that exist and the life-cycle franchisees work through.’

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5. Implementing systemwide changes. ‘When it comes to making necessary adaptations there is a mantra that “employees can be told, but franchisees must be sold.” Managing successful change in a franchise system requires careful long-term planning.’ Brilliant Commercial Cleaners

Callum says that franchising boards have the capacity to have a great impact on long-term franchising performance, for franchisors and franchisees alike, ‘But to do so effectively, they have to understand the needs, objectives and challenges for all stakeholders. ‘Franchize Consultants can help franchisors improve governance with advice for Advisory Boards and conventional Boards of Directors, as well as providing objective information on current franchise issues. No matter how large or small your franchise system, we are happy to help.’

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Franchize Consultants www.franchize.co.nz Contact Dr Callum Floyd P 0-9-523 3858 M 021 669 519 callum@franchize.co.nz

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Find out why. Call Callum Floyd (09) 523 3858 or email callum@franchize.co.nz www.franchize.co.nz

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39


buying a franchise

LISTEN what do I g

before FOR MY M you buy

All franchise agreements put a lot of power in the hands of the franchisor. Whether a franchisor uses that power wisely or carelessly comes down to their character. Their character will have a huge impact on your experience as a franchisee and may be the most important thing you should assess before buying a franchise. It’s also the hardest thing to assess. But you can learn a lot by asking smart questions of other franchisees and listening closely to how they answer. Ask about how the franchisor communicates and how they act when challenged or wrong, how they introduce change, how they respond to franchisees struggling under personal circumstances and how they demonstrate that they have their franchisees’ best interests at heart. Listen to what is said, how it is said and what is perhaps glossed over.

LOOK BEFORE You’ll begin to get a sense YOU of how LEAP things really operate in that franchise system.

Franchising is a powerful way of doing Michael Bright business, but the same forces that make Specialist Franchise Lawyer franchising great also create vulnerability 021 2666 395 and risk. We know what works, what doesn’t, and how to respond to the issues that arise. We help with: · Assessing franchise opportunities · Advising on franchise agreements and other contracts · Franchise sales and purchases · Dealing with difficult situations

Why do you have to pay franchise fees and what do they pay for? Lorraine Lord answers some very important questions for franchisees

I

f there’s one topic guaranteed to create discussion among both franchisees and franchisors, it is franchise fees – both initial and ongoing. How are they calculated? What should they cover? How much should they be? All of these questions and more are sure to arise in any such conversation. In this article, we set out to explain the purpose of franchise fees and the value franchisees should receive from paying them. Franchise fees can broadly be divided into two types: initial and ongoing.

the initial franchise fee According to the 2017 Franchising New Zealand survey, 97 percent of all franchises charge an initial or ‘upfront’ fee. This is the one-off payment made to get into the franchise and is paid by a new franchisee to the franchisor. The fee charged will vary markedly from system to system as it reflects the individual circumstances of that particular business. However, it will usually pay for the right to use the franchisor’s trade name, trademarks and operating system for the period of the franchise term; services to help you establish your new business; access to the confidential operating manual; any specialist computer software or set-up; initial training for you, your partner and/or key staff; and on-site assistance and training at your location prior to or during the opening period. In many cases, the initial fee will also include a marketing programme to launch your new business, although sometimes this is accounted for separately. The purpose of this fee is usually to recover the costs incurred by the franchisor in training you and helping you establish your new business, and to repay a proportion of the costs that they have incurred in developing the franchise system in the first place. However, in some cases, the franchise fee is set below cost for marketing purposes, on the basis that attracting good franchisees who will succeed and assist the growth of the franchise system long-term is more important than the immediate recovery of costs. If this is not an issue, an established franchise with a good brand may justify a premium and charge accordingly. Where buyers need to be vigilant is if the franchise fee is set at a higher level in order to provide an immediate return to a franchisor, rather than the franchisor expecting to make money from the ongoing success of the franchisee. If the franchisor has already made his money, he may be less likely to be concerned about the long-term future of the business. As always, taking professional advice from a franchise-experienced accountant or consulting your bank’s specialist franchise division will help you to understand where your own chosen franchisor stands on this issue.

ongoing franchise fees FRANCHISE LAWYERS Auckland Phone 09 303 3764

North Shore Phone 09 414 9800

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Once a franchisee has joined the franchise system and begun trading, they will also be liable to pay ongoing fees. These fees may also be termed royalties, management service fees or ongoing franchise fees, and they are intended to pay for a variety of services. The ongoing fees charged by a franchisor, and the services provided in Franchise New Zealand

Autumn 2018

Year 27 Issue 01


get MONEY? return, also vary from franchise to franchise. Some systems provide a high level of support to franchisees: for example, computerised point of sale systems which not only offer easy financial and stock management but also ordering from suppliers. Where such a system is linked to the franchise support function, it enables the franchisor to monitor ongoing trends not just on a system-wide but also an individual basis, and to provide pro-active assistance to franchisees when required. Such a service is expensive to establish and maintain, but is extremely valuable to a franchisee and therefore will require (and justify) a higher level of ongoing fees. On the other hand, a franchise business in an industry such as dog washing might require little individual support on an ongoing basis once each franchisee is established, although of course the franchisor still has a major role to play in such areas as co-ordinated marketing, supplier negotiation, research & development and communication. It might therefore be reasonable to expect that ongoing fees charged will be at a lower rate. In addition to the ongoing fee paying for the provision of services and the upkeep of the franchise support office, it should also include a measure of profit for the franchisor. This should not be begrudged by franchisees: if the franchisor is not making a profit from the business, then there is little incentive for him or her to stay in business and support the ongoing development of the system. As long as the franchise is properly structured so that both franchisor and franchisees make a fair return on their investment over a reasonable period, everyone should be happy. In some cases, ongoing fees may be charged separately for different services, such as: • Management Fees • Training Fees • Conference Fees • IT Fees • Accounting Fees (where additional services are provided) The most important thing about fees is not what they cost or what level they are set at, but what services they pay for. Any fee charged should be justifiable by the franchisor and shown to provide specific benefits to the franchisee of a value at least equivalent to the cost.

how are ongoing fees calculated?

istockphoto.com/enjoynz

There are a number of different ways that ongoing fees can be calculated, and all of them are perfectly acceptable providing they are fair and clearly understood by both franchisor and franchisees. The following are all commonly in use in New Zealand, with some systems combining one or more of the methods. 1. A straight royalty payment calculated as a percentage of franchisee turnover (not profit). Such a method requires the franchisee to declare their turnover and to pay the ongoing fee on a regular basis (often by direct debit from their account). This has the advantage of fluctuating with a franchisee’s sales, so your business pays more only as it grows. 2. A flat-fee payment on a weekly or monthly basis. This is a very straightforward system and is commonly used in industries such as home services where the calculation of weekly turnover would be a difficult and time-consuming task for all concerned (not to mention open to abuse). In some systems, the level of fee varies within bands according to the size of the business. franchise.co.nz – PUTTING PEOPLE IN BUSINESS

3. A mark-up or margin on products provided. This means that franchisees pay only for what they actually buy, so offers many of the same advantages as method 1. If the franchisor is manufacturing or wholesaling product, a mark-up is reasonable providing the product remains competitively (preferably advantageously) priced compared to similar products available on the open market. 4. A commission or rebate paid by suppliers under a similar arrangement to method 3. In some systems, the franchisees pay no fees and the franchisor manufactures no product, but the approved suppliers pay rebates to the franchisor on all products supplied to franchisees. This is a perfectly acceptable arrangement providing it is transparent to franchisees, and providing franchisees buy only through the approved suppliers. 5. A fee, mark-up or margin on services provided. If the franchisor is providing, say, a central booking facility or debt collection services for the franchisees, these may be charged for separately. As with method 3, such services need to be charged for at a competitive rate. 6. A margin created by taking the head lease of a property and sub-leasing it to a franchisee. In some cases, this may be the only way a franchisee can get into a certain property, as some landlords prefer to deal with franchisors. Once again, this is perfectly acceptable (McDonald’s use this system) providing it is transparent to franchisees. Many franchisors use a mix of two or more of the above methods in their fee processes.

marketing fees In addition to the fees which are charged for services which the franchisor provides (and their profit element), many franchise systems also require franchisees to make a contribution to a marketing fund. This is not a revenue stream for the franchisor and should not be seen as such by either party. The franchisor is accountable to the franchisees for monies gathered and spent for this purpose, and franchisees may well be involved (either through a franchise advisory council or a special marketing committee) in deciding how they should be spent. National marketing contributions are usually required in addition to any funds spent on local marketing by franchisees. Many systems will actually require both, and they are budgeted for accordingly. Marketing contributions are usually collected via percentages, flat fees or margins. In addition, contributions may be made by third party suppliers, either directly into the fund as negotiated by the franchisor or through the provision of agreed joint promotional material for use by franchisees. Suppliers might also contribute to the costs of conferences, new product training, supplier expo’s or a variety of other activities. Once again, it is wise to ensure that any such arrangement is declared to franchisees, as nothing is likely to upset a franchisee more than the ‘discovery’ that the franchisor has an additional source of income which the franchisees might believe is coming out of the franchisor’s own pocket.

what’s the norm? Having explained all that, one of the questions that is most often asked by prospective franchisees (and by some prospective franchisors) is, ‘What’s the normal level of franchise fees?’ Indeed, we sometimes hear of new franchise systems where the fees have been set at a certain percentage because the franchisor’s lawyer, in drawing up the agreement, had said

41


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‘That’s what most other franchises charge’. Such an approach is incredibly dangerous, as I hope the above has demonstrated: fees need to be worked out on the basis of paying for essential services, rather than on the basis of any real or imagined ‘norm’. In fact, the range of ongoing fees calculated on a percentage basis will vary considerably from 0 percent (where one of the other methods of generating revenue is used) to 15 percent or above (where considerable services are provided to the franchisee). While the average level of a turnover-based ongoing fee might be around 5-6 percent (excluding marketing contributions), this is meaningless without knowing what it pays for. Prospective franchisees need to take advice (and consult existing franchisees) to determine whether the fee structure of any particular franchise represents value for money.

do I have to pay? Because fees mean money, and the money flows from franchisee to franchisor, if there is any problem in the franchise then a disgruntled franchisee may be tempted to withhold paying their fees. This can occur if the franchisee feels they are not getting value for money, or if they are having some financial problems themselves. Whatever the reason, withholding fees is a dangerous course of action because it will almost certainly put the franchisee in breach of their franchise agreement. If that happens, the franchisor may be entitled to terminate the agreement, potentially leaving the franchisee with very little. In the event of any dispute or difficulties, therefore, it is far better to communicate with the franchisor and attempt to resolve problems amicably. Disputes may be resolved with the help of a mediator, while financial problems are best worked through with the assistance of the franchisor. They are likely to be able to identify the reasons for the problem and help to find solutions.

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Franchise New Zealand

Autumn 2018

Year 27 Issue 01


While the withholding of ongoing fees is an obvious cause of dispute, when fees are calculated on a percentage basis a franchisee can be tempted to under-declare revenue in order to pay lower fees. This is called ‘skimming’, and effectively means cheating the franchisor out of some of the fees due to him. In addition to cheating the franchisor, some franchisees will try to cheat the IRD as well. The dangers of doing either should be obvious: the first is fraud and the second is tax evasion. The penalties for either are considerable. A franchisee caught skimming might lose their business, lose their investment, be subjected to a heavy fine or even end up in prison. Is it worth it to cheat the franchisor out of a few dollars? Even if not caught, a franchisee who consistently under-declares turnover is going to find that, when the time comes to sell, they are unable to get the price for the business which it should command because the books do not tell the full story. That means that one of the biggest advantages of building up a successful business – the tax-free capital gain on sale – is going to have been partially squandered. Human nature being what it is, however, skimming does go on to a certain extent in many systems. Where the ongoing fee is a flat one, or where the fee is gathered by means of a mark-up on products supplied, skimming is less of a concern but even then it can happen. Where skimming becomes obvious, the franchisor has to take action for three reasons: i) They need to protect the integrity of the franchise agreement. ii) They need to protect other franchisees against the actions of a rogue member of the group. iii) They need to protect the revenue stream that pays for vital support services for the whole group. A franchisee tempted to skim needs to consider both the legal and the business implications of doing so. If franchisees across a system routinely skim their fees, who will be the loser? The franchisor requires a certain level of profitability in order to maintain interest in the business, so in many cases the lost revenue will come from the area of support services. Those support services are there to help franchisees improve sales, improve profitability and improve their competitiveness in the future. A franchisee who diverts funds from those areas damages their own business and those of their fellow franchisees.

mutual trust Franchise relationships are based not just upon a legal document but upon mutual trust between franchisor and franchisee. That trust has to be there in the beginning, and it has to be built upon over the years in order for both businesses to flourish. Creating trust in the beginning requires the franchisor to be honest and open about the services they are going to provide to the franchisee and how those services will be funded. As long as that is clear from the start, there will be no nasty surprises – and no grounds for dispute – later on. Maintaining that trust requires clear communication on an ongoing basis. If situations change – more or fewer services are needed, more or fewer sources of revenue become available – then by sharing that information both franchisor and franchisees are involved in the future of the system as a whole. And if everyone is properly involved, the chances of skimming by franchisees is reduced. To summarise, there is no one level or method of collecting franchise fees that is applicable to every system. If you are looking at buying a franchise, don’t compare the level of fees to some notional ‘norm’ – instead, look at what the franchise fees are paying for. What is important is not how much they are, but how much value the services they pay for will bring to your new business. Once you are operating your franchise, accept that the fees are there for a good reason – they are the fuel that enables the franchisor to drive your business, and those of the other franchisees, on to greater heights.

about the author Lorraine Lord has been involved in franchising for over 40 years. She has a background in field support and franchisee training, as well as having run a franchised outlet in the UK.

franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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opportunity: food & beverage

H

LE-HEARTED APPEAL

Epiphany Café wants master franchisees to take its unique gourmet donuts to new areas

E

piphany Café was born from a love of coffee – and donuts. Now, you might have read a bit about a US donut chain opening in Auckland recently, but don’t let that confuse you. What we’re talking about here is pillow-soft, artisanal gourmet donuts, served with a cup of the finest coffee – and a full café menu, too.

small investment, but then it’s not a small opportunity – we have a line of people who can’t wait to open their own Epiphany Café.’

proven business model That would be people like Auckland-based accountant Eddie Agnes, who has just opened his first Epiphany Café at Northwest Mall. Eddie has 20 years’ experience in finance and management, so you can be sure he’s been over the business model carefully. ‘I chose Epiphany Café because the brand is strong, there’s a good training programme, operational and management support, and the image is trendy, funky and fun.’ Best of all, it’s a 100 percent New Zealand-owned brand proven in the New Zealand market.

It’s a combination that has seen the chain grow rapidly from a single store in Hamilton to six outlets in the Upper North Island already, with five more opening soon. The brand is so popular that it already has a waiting list of fifteen people who want to become franchisees. Now Epiphany Café is looking for three master franchisees who will expand and support the brand in the Upper and Lower North Island and the South Island.

Hamilton-based sales consultant Yijia Ma has been operating his Epiphany Café in Chartwell Shopping Centre since mid-2017, and really appreciates the support which allows him to focus on running his business efficiently and profitably. ‘It’s enjoyable growing a business that customers love,’ he smiles.

What’s made Epiphany Café so successful in New Zealand where other donutbased businesses have struggled? Jeths Lacson, who developed the business with business partner Mark Epifanio, has a simple answer: ‘Quality. We start with premium ingredients from New Zealand that make an insanely soft donut base. Then, each donut ring is rolled, shaped, flavoured, and designed by hand. It takes time to make them, but we wouldn’t have it any other way because we want each bite to be as heavenly as the last.

For the three master franchisee opportunities, Jeths is looking for individuals, entrepreneurs, companies or partnerships to establish Epiphany Café in their region and appoint, train and manage sub-franchisees. Candidates will need to be:

‘There’s a range of around 30 flavours, including crème brulee, white chocolate passionfruit, black forest, salted caramel, green tea and tiramisu, with different flavours on different days to create a sense of occasion. Our cafés also offer breakfast and lunch menus, cakes, slices, quiches, cookies and muffins, savouries including risotto and soups, and our drink menu includes teas, smoothies and frappés.’

central production, wide market It may sound like a lot of work, but most items are produced at a central bakery and delivered to local Epiphany Café stores and kiosks, ensuring consistent quality and reducing the footprint and equipment needed by each franchisee. ‘This is why we are looking to appoint master franchisees for the other regions,’ explains Mark. ‘As well as helping new sub-franchisees get established in their territory, master franchisees also need to own and manage their own bakery and warehouse facility. This will supply the stores and kiosks, and may also offer a range of café products and baked goods to outlets outside the group. We anticipate the total investment with the production line being around $800,000 to $1 million. It’s not a franchise.co.nz – PUTTING PEOPLE IN BUSINESS

do you have what it takes?

• Experienced in the food sector with strong business management skills. • Well-capitalised, able to build a highly profitable business over time. • An entrepreneurial spirit, while being able to follow and enforce proven systems for running a successful business. • Creative thinker who can drive the aggressive growth of sub-franchisees in their region. • Honesty and integrity in dealing with staff, sub-franchisees, the franchisor, suppliers and partners. • Belief in, understanding of and passion for the Epiphany Café brand and concept. • Community involvement and the drive to expand in your region. • Positive leadership and motivational skills.

a major role in a growing market ‘For the right people or company, this is an opportunity to play a major role in the development of a unique brand in a large and growing market,’ says Jeths. ‘It’s no secret that coffee and good food is in demand, especially in today’s fast-paced society, and Epiphany Café has something different to offer. Whether you need an early-morning energy boost, a family-friendly bite or a leisurely weekend break, you’ll find what you’re looking for at your local Epiphany Café – where chill time never tasted so good. ‘Our business model has been professionally-developed and is now proven in multiple locations from shopping malls to high streets. The option of cafés or kiosks means that master franchisees and sub-franchises are able to develop advertiser info outlets in cities, suburbs, towns and all sort of regional centres, so there is huge Epiphany Cafe potential. ‘If you have the qualities we are looking for, please contact us without delay to find out more about the Epiphany Café master franchise opportunity.’

www.epiphanycafe.co.nz Contact Jeths Lacson M 021 337 329 admin@epiphanycafe.co.nz

45


e-bike lice

CHARGING The first four electrify.nz licensees have hit the road and are already up to high speed clamouring for more

E

xperienced business people generally say that the first year is hard yakka, but the new Tauranga outlet of electrify.nz has proved it doesn’t have to be that way. Since opening in October last year, licensees Keith Silkstone and Lauren Te Pairi have exceeded their projected first-year sales in just five months. Electrify.nz specialises in importing and selling e-bikes. Founded in Auckland’s Freemans Bay in 2014, the company has quickly become the leading NZ supplier of top international brands such as Gepida, Kreidler, Stromer, Bottecchia, Magnum and KTM, and already has five outlets with opportunities for more nationwide.

up to speed Keith and Lauren’s first few months have been boosted by a high-profile sale to Tauranga City Council. With the council keen to encourage fewer singleoccupant cars in the city centre every day, Lauren pitched a proposal to help council staff lead the charge. ‘We set up some demonstration days for council staff, giving test rides and helping them learn about e-bike options,’ Keith explains. ‘Lauren is in finance so she worked with the council’s procurement team to put together packages for staff. I must admit I privately hoped for about 20 sales, but in the end we had an order for over 60 – including 7 for the council’s own vehicle fleet. ‘Needless to say, this filled our sails and got us off to a great start. Tauranga has major traffic and parking issues, and by demonstrating their commitment to solving part of that problem the council has set a clear precedent that we think other large employers will follow.’ Apart from making parking easier, what is it about e-bikes that makes them so attractive? ‘For cyclists, hills and headwinds suck,’ says Keith with passion. ‘Unless you are super-fit or a regular rider, the average hill is an obstacle for cyclists. Surveys have shown that one of the chief reasons people won’t ride to work is that they don’t want to arrive at the office hot and sweaty. With an e-bike, however, you can sail over the hills, avoid the traffic jams and arrive as cool as a cucumber.’ Keith and Lauren didn’t exactly have a background in e-bike retailing before they bought the franchise. Keith, who runs the day-to-day business, is a former funeral director and motor parts salesman, while Lauren has kept her full-time banking job. Together, though, the couple have the contacts and the local knowledge that, combined with electrify.nz’s expertise and exclusive range, have made the business a real winner.

46

The three founders of electrify.nz, Michael Tritt, Ron Minkhorst and James Munro, are all passionate about the future for e-bikes in New Zealand, and their considerable commercial experience has created a genuine business opportunity. Outlets which opened in Tauranga, Dunedin, Hamilton and on Auckland’s North Shore last year are now flying, proving that e-bike leisure and commuting are attractive everywhere – and people are clamouring for more. ‘We have opportunities for another six or more licensees,’ says James. ‘Of course we are targetting the main population centres, but if the right people turn up for any area, we’d love to give them the opportunity and support to build their own business in this massively-growing market.’ James says New Zealand is a bit behind the times when it comes to e-bike usage. ‘E-bikes are already mainstream in Europe, so we’ve got a bit of catching up to do – which of course represents a great opportunity for licensees. New Zealand has a pretty good climate with access to fantastic outdoor lifestyles, and attitudes towards sustainability are changing – people are willing to consider the practicality of e-bikes more openly. ‘In addition, New Zealand is ideally placed to use electric bikes because 95 percent of our electricity comes from renewable sources. That’s true for cars, too, but they’re so much more expensive, and we’ve found that when people own an electric bike they start making excuses to leave their car in the garage. After all, e-bikes are easy to ride and park, enable you to go much further with less effort, climb hills with ease – and they’re fun too!’

another rocket start In Dunedin, Mike and Tania Willis opened their electrify.nz store about the same time as Keith and Lauren were starting out in Tauranga. You might think the odds were not exactly in their favour: neither of them had ever owned a business before; Mike had been a technician in the Air Force for most of his working life; and their new venture was in the same street as many other cycle shops. ‘Tania and I had been seeking a business we could run together when I left the Air Force,’ says Mike. ‘We considered many things, from franchises to start-ups to motels, but when we saw the electrify.nz advert and talked to James and Michael we both felt all the boxes had been ticked at last. I’ve been cycling, either commuting or competing, for years, and e-bikes are clearly the coming thing. On top of that, electrify.nz has all the brands, the contacts, the experience and the systems we needed – not to mention a growing reputation.

Tania and Mike Willis

Keith Silkstone and Lauren Te Pairi

‘Even though Tania has retail experience, everyone we spoke to Franchise New Zealand

Autumn 2018

Year 27 Issue 01


ensees

Join the e-bike REVOLUTION

G AHEAD said the first year would be hard and we would have been pleased just to break even as we got established,’ Mike admits, ‘But we actually achieved our first year’s sales target inside four months. We’re very pleased, not just with the results but with the support and help we’ve had along the way.’ ‘The great thing about this business is that we’ve got our name out there so widely, so quickly,’ Tania says. ‘Advertising in local newspapers and wordof-mouth have been very effective, and we’ve found people from as far away as Invercargill and Tekapo seeking us out. ‘People in the other shops have been friendly – we seem to have healthy competition here and more than one offered to help us in the early days. Of course, we have the world-famous Otago Rail Trail just up the road, so e-bikes help expand the market for recreational cycling. And after having their first experience of an e-bike on the trail, many people come straight to us with a big smile on their face wanting to buy one.’ ‘We are having a lot of fun with the business,’ Mike adds. ‘I’m arranging demo rides and we all have a coffee afterwards. It’s relaxed and effective as long as you have empathy and patience. Of course, we know Dunedin will be more seasonal than other outlets, but we have plenty of hills for those batteries to push people over,’ he grins.

keeping costs down, returns high

Keith and Lauren, and Mike and Tania, all speak highly of the training and support provided by electrify.nz, as well as the relatively low set-up costs – a fee of just $25,000 plus shop fit-out and set-up costs which vary according to location. ‘Right from the start, we designed the system to minimise up-front capital requirements and directly link our licensees’ success to our own,’ James Munro explains. ‘Our priority was to appoint the right people in the right locations to take advantage of a rapidly growing market. Given that we only plan a maximum of about twelve outlets, we feel able to train and support each one to the best of our ability without taking huge sums of money off them for the privilege.’ ‘We want people with business experience and the drive to become masters of their own destiny,’ says founder Michael Tritt. ‘They should have broad career and life experience, understand retail and customers, and have the empathy to understand people’s different situations and meet their needs. We will provide the systems and sales tools, marketing material and full support in setting up and establishing a new electrify.nz outlet, but it’s up to them to provide the sort of service that will have delighted customers telling everyone they know.

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expectations exceeded

As for the new licensees in Tauranga and Dunedin, both still slightly reeling at their rocket starts, what would they say to prospective business licensees? ‘Go for it,’ says Tania, without hesitation. ‘This is a fantastic opportunity right at the beginning of the market with huge prospects on every level.’

www.electrify.nz

‘Put in the work, and you really can’t go wrong,’ says Keith. ‘The support network is already superb and will only grow as the electrify.nz guys get more passionate e-cyclists on board. E-bikes are developing fast and we’re at the forefront. The great thing is that we’ve seen steady incremental improvements in the technology as each model has come out: battery life and weight, and motor advances are all adding up to better and better packages. ‘If you show the dedication and really work the system, then your business can take off amazingly, as we’ve seen. Our expectations have been well and truly exceeded.’ James Munro invites anyone with the power and passion to establish their own electrify.nz store to contact him fast. ‘We need a number of great licensees to meet and expand this fast-growing market, so if the proposition attracts you, give us a call. All but five of our regions are available, so be first off the starting block and electrify your own community.’

advertiser info Electrify.nz www.electrify.nz Contact James Munro M 021 644 405 james@electrify.nz

franchise.co.nz – PUTTING PEOPLE IN BUSINESS

Contact james@electrify.nz 021 644405 47


opportunity: leisure & education

investing in OUR FUTURE Returning teachers find sKids ideal for setting up business back in NZ Social Development and parents can access Work & Income NZ OSCAR subsidies, so you have to learn those processes. Also, we were new here and the community naturally wants to get to know you before they entrust their children to you. That trust is now building rapidly and we’re doing very well with additional sites and developing programmes still to come.

Kris Dempster-Rivett

K

ris and Samantha Dempster-Rivett took their combined teaching skills overseas in 2005, and spent the next decade in Japan, London, Jeddah and Shanghai. ‘We wanted to have some different experiences, but we always knew we’d return to NZ to raise our family,’ says Kris. ‘sKids has given us the perfect vehicle.’ Legislation means returning to the teaching profession in New Zealand isn’t always easy, so Kris started looking at franchise opportunities. ‘I had done a business degree, but my teaching career was in Information Communications Technology (ICT) and Computing. I talked to a friend who is the principal of a primary school and told him I had thought of starting an after-school ICT club. He had a sKids franchise operating from his school and immediately advised us to investigate it. As he pointed out, starting the kind of club I thought of would be the equivalent of opening a school with all the paperwork, whereas sKids had already done all the hard work. They also had a great reputation and a ready market so, in 2016, we took the plunge with our own sKids franchise and haven’t looked back since.’

positive impact sKids (Safe Kids in Daily Supervision) provides before-school, after-school and out-of-school care for children with busy parents, as well as holiday, cooking and intermediate programmes. With around 70 franchisees operating over 170 sites, the franchise has gone from strength to strength as a result of its determination to have a positive impact upon children’s lives. As sKids director Chris Bartels says, ‘Our goal is to have sKids in every school in New Zealand, and while we’re still a long way off that, today the schools are coming to us rather than the other way round.

‘What I really admire about sKids is that they are looking ahead all the time, bringing in people with experience not just in childcare, but in other aspects such as business and marketing. These are essentials if you are going to build advertiser info a healthy business, and it gives me great confidence in the future.’ Safe Kids in Daily ‘We love kids and we love what we do,’ says Chris Bartels. ‘If you do too, give us a call. Opportunities start from around $45,000 +gst, and you don’t need teaching experience – just common sense, a bit of drive and a passion for helping kids be the best they can be.’

an opportunity to

make a difference

in your local community Now is a great time to invest in a sKids franchise. New Zealand’s Out of School Care (OSCAR) industry is thriving and families need quality OSCAR programmes. We consider it a great privilege to support our families, schools and communities.

‘There are very good reasons for that. First, our programmes are excellent, and becoming recognised internationally. Second, increasing regulation and training requirements have made it ever harder to operate after-school care on anything less than a totally professional basis. And third, while sKids franchisees have all that expertise and support behind them, above all they are local people who serve the local community.’

friendship and support

We are looking for local partners like you who have: • A passion for working with children! • Strong leadership • Superb organisational skills • Great communication skills

When it came to buying their own business, Kris and Samantha took over a company-run centre near Whangarei. ‘It seemed like a great place to start and it was,’ says Kris. ‘The franchise has been exactly what we hoped and wanted – both enjoyable and professional, with systems that have been tried and tested over time. ‘In addition, we have amazing friendship and support from the other franchisees and the sKids team, all of whom are happy to share their experience. That’s so valuable – ultimately you are responsible for running your own business, but sKids is there to help you, and keep you ahead of the speedbumps caused by things like changing legislation.’

looking ahead Kris openly admits that although he was a trained teacher he had a great deal to learn about business. ‘I found the administrative side very challenging at first. sKids programmes are approved by the Ministry of franchise.co.nz – PUTTING PEOPLE IN BUSINESS

Supervision www.skids.co.nz Contact Chris Bartels P 0-9-576 6602 P 0800 SKIDSBIZ 0800 754 372 chris@skids.co.nz

Does this sound like you and are you interested to know more? Please contact Chris Bartels on 021 974 221 or chris@skids.co.nz

www.skids.co.nz

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buying a franchise

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hen you look at buying a franchised business, you’ll often have two options – buying a brand-new location that you’ll need to set up from scratch, or taking over an established business that has been run by an existing franchisee or under company management.

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An existing outlet might seem tempting. It will have an established customer base, positive cashflow and, if it employs staff, trained people in place who can help as you get to grips with the challenge of running your own business. But buying a new franchise – what some franchisors call a ‘greenfields’ location – can offer even more benefits. Here are 12 key points to consider before you make your decision.

1 price

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12 good reasons why buying a new franchise can make more sense than buying an existing one

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In most cases, a new franchise will cost less than an established one, because you will not be paying a premium for ‘goodwill’. Goodwill is the reputation that a business has built up – the factor that has customers coming through the door and results in proven sales performance. If a business is profitable, you can expect to pay a significant amount for goodwill over and above the value of the business’s equipment, fit-out and other assets. A new business may not have those sales yet, but something to bear in mind is that a franchise with a well-known brand will already have goodwill in a brand-new location even before it opens its doors. That’s why you get queues outside a new McDonald’s, or why companies like V.I.P. or Jim’s can provide new franchisees with work from their very first day.

2 potential It’s said that when a new franchisee takes over an existing business, the turnover goes up – or down. One thing it rarely does is stay the same. The risk is that when you buy an existing business, it may already have got as good as it’s going to get. The seller might tell you about all the potential it has, but if it’s so easy to grow, why haven’t they already done it? Unless you’re buying a business that has been poorly-managed and are confident that you have the skills, energy and ability to turn it round, growth isn’t always easy. When you buy a franchise unit in a new location, you may start with a turnover of zero but you have massive potential. Benchmarking should enable you to see what is realistic in any particular location (see page 62) and you’ll have a lot of support from the franchisor to help you achieve it. Listen to that advice, put it into practice and growth will follow.

3 capital gain Let’s look at goodwill again from the opposite direction. When you start a new business, not only are you paying nothing for goodwill but, as you build your reputation and client base, you are developing goodwill of your own. When the time comes to sell, that increases the value of your business and the price you can get for it. In many cases, the capital gain you achieve on buying a business, building it and selling it for a much higher price, will be effectively tax free. It’s much harder to make a similar level of capital gain on an existing business.

4 area

0800 454 654

If you’re looking for an existing business within a franchise, your choice will be limited to those which are currently for sale. This means you may need to look at moving to a new area, or face a long commute, to get the business you want. If you’re prepared to do that, fine – but opening a new franchise might allow you to be exactly where you want to be with far less disruption to your home

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Franchise New Zealand

Autumn 2018

Year 27 Issue 01


UY NEW? life. Starting a new business is a time when you need all the family support you can get, so keeping things simple may be a better option.

5 location New shopping areas and housing developments are springing up all the time. If you want to take advantage of these new markets, you have no choice but to open a new business to service them – and a franchise offers many advantages. Franchisors will usually have done their homework on where and when a new unit will become viable, have the contacts to acquire the best locations and the negotiating power to do the best deals. Where retail premises are required, landlords will come to franchises first looking for established brands to provide pulling power and marketing muscle – the muscle that will bring you customers from day one. And a new business will come with a full-term lease, meaning you can arrange funding over a longer period. You can also negotiate things like the rental bond, lease terms and fit-out contributions to suit you, whereas with an existing business you can inherit some less-than-favourable terms or escalation clauses.

6 new fit-out Franchisors – and landlords, too – know the value of keeping an outlet looking bright and fresh. Most will require a revamp every three to five years, and this is unlikely to be cheap. When you buy a new franchise unit, you have all that time to build your business before a re-vamp becomes necessary. If you buy an existing unit, you’re likely to have less time, and if you’ve stretched your budget or borrowing to the limit to buy into the business in the first place, that could give you problems.

7 new equipment Much the same applies to the equipment you need to operate your business, whether fixed or mobile. With a new franchise, you’ll be provided with the latest equipment chosen by the franchisor to be appropriate to the business you are operating. It will come with training, support and guarantees, and may even be able to be financed via an equipment lease, using up less of your precious capital. Buying an existing business means buying used equipment. It may not be current standard, you don’t know how it has been maintained and, if it proves unreliable, there won’t be much you can do about it. I know of one multi-unit franchisee who, on selling one of his units, first transferred all the newer equipment out of it to one of his other stores before the purchaser came in. Which brings us to …

8 know who you’re buying from

istockphoto.com/WaltStoneham

When you buy a new franchise, you are buying direct from the franchisor – someone who you will be working with for the next 5-10 years, someone who wants you to succeed and grow, someone who has a reputation to maintain and also has plenty to lose if you should fail. If they are a member of the Franchise Association, they are also bound by a Code of Practice and a Code of Ethics, and are required to provide a full disclosure document prior to your signing the franchise agreement. That’s a very different story from an outgoing franchisee. They will have no ongoing relationship with you or the brand – their primary concern is, understandably, to capitalise on their hard work by getting the maximum price they can for the business.

9 training In a new franchise, all the operating systems and equipment will be set up properly from the very beginning. They will be the very latest systems, building on everything that has gone before, and designed to work together as efficiently and profitably as possible. Crucially, they will also be the systems franchise.co.nz – PUTTING PEOPLE IN BUSINESS

that you learned during your training period. Buy a re-sold franchise and all sorts of things will vary subtly from what you learned. It will take time to spot the differences, to learn them and work out how to change them. Remember, also, that having non-standard systems or equipment may make it more difficult for the franchise support team to help when you have a problem.

10 settling in When you set up a new business, it grows with you – you (usually) have time to adjust to the everyday demands and challenges, and to get used to processing work efficiently. This means you can give every customer the type of service you want them to be impressed by. Take over an existing business and you’re likely to be flat-out from day one. If you can’t cope with that, customers will think the business has gone downhill since you took over. It’s a lot harder to win them back if they start going somewhere else.

11 set your own culture An existing business comes with an existing culture. If you have staff, they will be used to doing things a certain way – the way the previous owner wanted. They may be great and supportive, or they may have fallen into bad habits and not be operating the franchise the way it’s supposed to run – the way you will just have learned. That can lead to problems as you try to take charge. A new franchise gives you the opportunity not just to select the people you want to work with and train them accordingly, but to train your customers, too. How do you want them to think of your business? How often will they come to you? What do they expect to buy from you? If you’re mowing their lawn, are you also removing their garden refuse? If they like your coffee, will they also think to come to you when arranging lunch with a friend? It’s easier to set up perceptions than change them.

12 how far can you go? The final point comes down to what sort of challenge you want to take on, and what will give you most satisfaction: taking over an existing business or starting a new one from scratch? If you have an entrepreneurial streak, have confidence in the franchise you choose and have confidence in your own ability to listen, to learn, to apply yourself and, if necessary, to build and lead a team that shares your goals, then buying a new business and setting it up from scratch could prove more rewarding than anything else – both personally and financially. You’ll certainly have to work hard and put in the hours, but you’d have to do that anyway to make a success of an existing outlet. With a new business, though, you’ll have the satisfaction of seeing it grow from nothing and knowing that you did this. And you’ll also have the excitement of seeing thanks just how far you can take it with the support of the franchise behind you. Thanks to the existing and former franchisors whose For some, taking over an existing brainstorming session gave business with existing cashflow feels rise to this article: Stuart like the safe thing to do. As the above Deeks, Brian Mooney, points suggest, though, that’s not Martin Smith and Gary always the case – and the greatest Turton. potential often lies in the new.

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IN GOURMET FAST FOOD

BEST VEGAN BURGER I’VE EVER HAD! WOW! LOVE THIS PLACE!

BURGERS ARE THE BOMB

100% PURE GRASS FED BEEF

MY SON JUST ASKED IF BFF STOOD FOR BURGER FUEL FOREVER? PROUD MOMENT

THE ENERGY AND FRIENDLY PROFESSIONAL SERVICE OF THE STAFF IS

TRULY AMAZING THE BURGERS WERE COOKED PERFECTLY

EVEN WITH THE STORE BEING VERY BUSY


opportunity: food & beverage

Want to be involved in a fast-paced burger-making machine? BurgerFuel, the iconic Kiwi gourmet burger brand, wants franchisees for both new builds and existing stores

EAT, PLAY, LIVE B

urgerFuel might be a global burger concept these days but it was proudly born and bred in New Zealand. Now the long-established brand is calling on aspiring franchisees with a passion for gourmet burgers to register their interest in owning a BurgerFuel store and joining this unique business. BurgerFuel was launched by founder Chris Mason on Auckland’s Ponsonby Road in 1995. Since then, the only way has been up: BurgerFuel now operates almost 100 mostly-franchised stores across New Zealand, Australia, the Middle East and most recently, the USA. ‘This brand has a stellar reputation for bold burgers made from fresh, natural, wholesome ingredients, and an option-filled menu catering to all lifestyles,’ says Jason Lowery, Country Manager for BurgerFuel NZ. ‘When you buy a BurgerFuel franchise, you’re not just buying a gourmet burger business – you’re buying into a 360-degree lifestyle experience.’

This experience extends far beyond the product: BurgerFuel proudly run their own radio station, Radio BurgerFuel, as well as an in-house arts programme called Creative, Sweet. ‘Be it graffiti, illustration, graphic design, videography or tattooing, we’re all about it, and we like supporting other people who are too,’ says Jason. In addition, the brand has a full collection of custom-built American muscle cars within its Speed and Custom programme, with many of these custom cars owned by franchisees.

locations available now With current opportunities in locations such as Auckland, Nelson, Dunedin and Whangarei, the quest is on to find the right candidates to take the helm of both new developments and existing sites. Jason explains that you have to be a very special type of person to own a successful BurgerFuel and drive it forward. ‘Being a BurgerFuel franchisee takes a lot of energy, and a profitable store requires continual attention,’ Jason says. ‘This means we’re looking for franchisees who are keen to roll up their sleeves, throw themselves into day-

franchise.co.nz – PUTTING PEOPLE IN BUSINESS

to-day store life, and eat, play and live the brand every day.’

‘The ideal franchisee will have a fierce passion for business and be ready to dive headfirst into the fast-paced world of BurgerFuel.’

everything you need Jason says that when it comes to support, BurgerFuel provides it all. ‘Franchisees become part of a strong and modern franchise model. They benefit from robust operational support and sophisticated systems, as well as the world-class training and marketing programmes that BurgerFuel provide to aid the development of successful ventures. ‘Essentially, BurgerFuel provides everything franchisees need to run a BurgerFuel store and develop their own burger empire, from site selection support and a turn-key store through to on-going operational and marketing support.’

is it for you? So what do you need to become a BurgerFuel owner? ‘Previous experience in hospitality is beneficial, although not essential for the right franchisee,’ says Jason. ‘A love of gourmet burgers and extremely sound financial knowledge, however, are absolute musts – along with total commitment to succeeding in your own store. ‘We’re excited to meet interested parties that are highly motivated and passionate about the brand, the industry, people and the product. If that sounds like you, we encourage you to visit our website, experience the BurgerFuel vibe and apply to find out more.’

advertiser info

BurgerFuel www.burgerfuel.com/nz/franchise Contact Ray Urlich P 0-9-376 7625 M 021 424 668 info@burgerfuel.co.nz

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buying a franchise

FRANCHISES FOR MANAGERS Could you put your experience to use in your own business?

and offer the skilled manager considerable potential for building a really worthwhile business of their own.

F

ranchising isn’t all about one man and a van – franchises also offer a wealth of opportunities for experienced managers in all sorts of industries from building to beauty, education to finance. Here are some reasons why franchising offers a good alternative for the executive looking for a change. 1. Many managers are specialists and don’t have the broad experience or inspiration to create and grow a business from scratch. But most franchises say ‘no experience required’ – if you have the aptitude and the personality, they can train you to do the rest. And, very importantly, they’ll provide the systems to follow and the back-up to help you make a go of it. 2. Franchising offers an immense freedom of lifestyle. You can choose whether you work indoors or outdoors, in an office or café, from home or from premises, alone or with your spouse – you can work where and how you want. Franchises can be hands-on (where you do the work yourself) or hands-off (where you work through staff to achieve your goals). 3. Franchising offers you the chance to take your existing skills and put them to use in a new way for your own benefit. 4. The transition from employment to self-employment is made easier by the fact that you are still part of a group. You can still share ideas and seek opinions with other skilled people. 5. Most managers will have built up some sort of assets that they can borrow against to finance their business. This gives them the ability to select from a wide range of opportunities. A lot of franchises employ staff,

6. A franchise can be part-time or full-time. Many managers start off buying a franchise which their partner operates until the business has grown enough (or the couple feel comfortable enough) for them to leave and work in the business themselves. 7. Franchising offers potential for growth. Skilled managers can operate multiple outlets and even build chains of their own within many franchise systems. Domino’s, Small Business Accounting, Dream Doors and many more have several franchisees with three or more outlets. This can offer considerable rewards. (See ‘Think Big’ at www.franchise.co.nz/article/2142) 8. Master franchises are also a good option for experienced managers. Regional master franchises are common in franchise systems with a large number of franchisees, such as home services franchises, or which require locally-based support, like Portermark or Epiphany Café. The regional master franchisee is usually required to manage the marketing, training, development and logistics of the franchisees on a local basis – a role which requires considerable management and leadership skills. National master franchises are also available for overseas companies such as Hudsons Coffee wishing to expand their systems into the NZ market in conjunction with a local person or company. Master franchises are often a longer-term proposition involving a larger investment, but the return is commensurately greater. So if you have management skills and are looking for a change and a chance to build something of your own, start exploring what’s available via the Westpac Directory of Franchising which starts on page 76. You’ll find more opportunities than you expected.

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Become part of an exciting industry and run your own rewarding business

Work for yourself

Perpetual franchise agreement

Ongoing support & training

Your own exclusive territory

Award winning franchise system

Contact us today to discuss opportunities in your area:

p. 0800 4FASTWAY w. fastway.co.nz e. recruitment@fastway.co.nz

Fastway Couriers (NZ) Ltd T/A Fastway Couriers New Zealand. Fastway Couriers is a franchised courier network and its businesses are independently owned.

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Franchise New Zealand Autumn 2018 Year 27 Issue 01


opportunity: retail

RETAIL WITH

BOUNCE

New Para Rubber franchisee stretches to a second store within a year

T

he gloom merchants might think bricks and mortar retail is dying, but it all depends what you’re selling. ‘Having started in 1910, Para Rubber is one of the best-known retail brands in New Zealand and we’ve had a fantastic year,’ says franchisor Vaughan Moss with a massive smile. ‘And our newest franchisee has done so well, she’s opened a second store within ten months.’ Para Rubber specialises in everything rubber from mattresses to boots, via hoses and glues, for every household, automotive or industrial purpose imaginable. ‘We are the only retailer that carries a comprehensive range of foam from ordinary upholstery to specialised acoustic foams, rubber sheeting, floorings, extrusions and seals,’ says Vaughan. ‘We offer what online retailers can’t – immediacy, personal service and a cut-to-measure service with a large commercial foam cutter in each store. The company is also famous for its above-ground Para Pools, and you can imagine how those, and our Intex pools, sold during our long, humid summer.’ There are currently 11 Para Rubber stores in New Zealand, with immediate locations available in South Auckland, Dunedin and Hawkes Bay and new opportunities in other centres developing all the time. The latest to open is in Henderson, West Auckland, where new franchisee Anna Yule is still catching her breath after a hectic year that has seen her open not just one but two Para Rubber stores. ‘We had thought about opening a second store in the dim and distant future, but it all happened much sooner than we expected,’ says Anna. ‘Vaughan and the franchisor team had done a great deal of work around demographics which demonstrated the need for a store in Henderson. Our first store in Wairau Road has traded so far ahead of our sales projections since opening in April 2017 that we decided it was an opportunity not to be missed. We’ve only had three weeks in Henderson so far, but there are already plenty of customers coming through the door.’

why para rubber? With a long and varied background in retail with various leading brands, when she started looking for her own business Anna knew all the possible pitfalls. ‘I wanted a business with product that couldn’t easily be mimicked, filling a niche which offered a sustainable business. I wanted low establishment costs that weren’t going to stretch bank borrowing or require

Double franchisee Anna Yule (centre) with some of the friendly team at her new Henderson store (above) franchise.co.nz – PUTTING PEOPLE IN BUSINESS

unaffordable debt servicing, and I wanted a service element which would allow proper interaction with customers rather than just taking money. ‘In addition to all this, my husband and I have three children so I wanted a family-friendly business, too – he has his own career, so this would be my baby. Para Rubber ticked all these boxes. It is a historic brand with massive awareness, and it’s a destination store that people seek out for solving problems.’ And Anna liked the fact that Para Rubber has a well-proven franchise model. ‘I know enough about retail to reject trying to start something on my own from the bottom up. Quite apart from all the time, cost and hassle of marketing and building a customer base, I wanted the support, systems, brand and buying power that a franchise could offer.’ When it came to finance, Anna says that buying into such a well-established brand was a real advantage, too. ‘The franchise was very helpful in verifying projected figures with the bank and providing information based on analysis of the other stores’ margins and turnover. The bank was happy with that, so it ensured that we had very little difficulty with raising the capital, and of course it was a similar story when it came to opening Henderson.’

great past, great future Anna is thoroughly enjoying her two-store business and speaks highly of the support Para Rubber has offered. ‘The training was very good and the team handled store design, fit-out and the initial promotion which enabled us to get off to such a good start at both stores. We have a designated business development manager, and whenever we’ve asked for help there’s been somebody there for us. ‘This is a people business. Para Rubber’s original founder, George Skellerup was clearly a kind and generous man and regarded his 1000 employees as family. He passed on a culture that remains to this day. We’ve found customers do like to come in and have their problems solved so you need to talk and ask questions. Once you know your product, you can generally work out what it is they are looking for and often find a much better solution for them. It’s very rewarding.’ Vaughan Moss says that Para Rubber has opportunities around the country for new franchisees to repeat the success of the latest stores. ‘We are looking for people who understand the DIY mind-set of New Zealanders, have a “can do” attitude and will be tuned into their advertiser info local market. Total set-up costs, including initial stock, will be between $150,000 Para Rubber and $250,000 depending on size www.pararubber.co.nz and location. ‘If you fancy joining a truly iconic NZ brand, call me. Para Rubber not only has a great past – as Anna is proving, it has a great future, too.’

Contact Vaughan Moss P 0-9-532 8794 M 021 921 976 vmoss@pararubber.co.nz

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Kelly Sports is offering you an opportunity to own your own business and make a real difference in children’s lives by helping to develop their skills and confidence through sport.

 Simple franchise model that’s easy to understand  Full training in coaching and business management  Great franchise network (currently 36 nationwide)  Flexible lifestyle  Variety of opportunities

CONTACT US NOW FOR A FRANCHISE INFORMATION PACK Call Daniel Gerrard on 021 409 628 or 0800 GO KELLY Email danielgerrard@kellysports.co.nz | www.kellysports.co.nz


opportunity: food & beverage

TRANSFERABLE

skills

Former policeman enjoys serving the local community as a Columbus Coffee franchisee

W

hen Craig Kennedy was ready to leave the police force after 32 years, he went searching for a business. Having seen his local outlet of Columbus Coffee at Mitre10 MEGA in Whangarei up for sale, he spent hours in the café watching the way it operated before deciding to jump into business with a brand he knew well as a consumer. ‘I had wanted to be in business for myself for many years but I didn’t have any hospitality experience behind me, so a franchise really appealed,’ he says. ‘Columbus Coffee has an award-winning reputation so, after doing careful due diligence, I decided to go for it. I’d loved my time in the police but I was ready to step away now and saw Columbus as an opportunity to follow another dream.’ Craig says one of the things that most appealed to him about the business was its local profile in the town. ‘Despite the change in career, I still wanted to be connected with the community. My customers are mostly local people and I put great value on my interactions with them. Columbus Coffee is a bit of a social destination for a lot of people, and we have a great mutually-beneficial relationship with Mitre10 MEGA. People come for a coffee and stay to shop, and vice versa.’

transferable skills Columbus Coffee is a New Zealand owned and operated franchise with more than 70 cafés throughout the country. The franchise enjoys strong success in both metropolitan centres and the regions, and an exclusive arrangement with Mitre10 MEGA means that franchisees are able to choose from both high street locations and sites within the Kiwi-owned DIY retailer. On joining Columbus Coffee in August 2017, Craig went through an intensive in-store training programme that saw him learn every aspect of running the business from daily operations and management to marketing and admin. ‘It certainly had its challenges,’ he smiles. ‘My time with the police gave me a reasonable number of transferable skills, but managing staff and rosters has been interesting. ‘Because the café was already established with existing staff, I didn’t want to make too many changes to start with. It might sound the wrong way round, but I had to learn from scratch how to work in a café, not just how to run one. I gained more experience with every week; I’m very hands-on and I feel more relaxed now so I can take a day to myself here and there and start to work on growth.’ franchise.co.nz – PUTTING PEOPLE IN BUSINESS

Craig Kennedy: ‘I love getting involved in a different way’

rooting for my success Craig plans to refurbish his café with Columbus Coffee’s latest décor and is also looking to develop the menu in the coming months. A fresh and healthy food offering, with vegetarian and paleo options, is an important part of the business model and every café has its own kitchen. ‘The support from the franchise team is great – I have consultants and trainers for all aspects of running the café just a phone call away, including experts on menu development and nutrition. I know they’re always rooting for my success, which is a great feeling.’ Craig has also found owning his own café has allowed him to continue giving back to his customer base in all sorts of ways. ‘Over the years I’ve spent a lot of time building valuable connections with youth in the community and I love getting involved in a different way. I’m doing some work with a food and safety programme for the Special Olympics, and we sponsor some local sports teams and certificates. ‘Of course, some people recognise me from my police days. I think they thought it was a bit odd at first but I’m getting great regular feedback and am really enjoying the relaxed interaction with people from the community I’ve been a part of for so many years.’ Peter Webster, the general manager of Columbus Coffee, has seen many new franchisees come from non-hospitality backgrounds like Craig. ‘The key to Craig’s success is that he has embraced our proven franchise system and training. As a man with experience in a widely different field, his business is coming on in leaps and bounds because he listens, learns then leads. Columbus Coffee has produced many award-winning franchisees and highly-successful businesses over the years, and Craig is drawing on all that experience as well as his own strong community experience. ‘It shows that, regardless of your background, if you stick to the system and our core values, you can achieve success with Columbus Coffee.’

new opportunities in kerikeri and ferrymead

Franchise opportunities are available from $280,000 to $400,000, and the company has both new and existing locations available. These include cafés opening later this year within Mitre10 MEGA stores at Kerikeri and Ferrymead, Christchurch – two exciting opportunities in prime retail positions. There is also potential to convert existing café sites. ‘Columbus Coffee is a New Zealand company at the heart of many New Zealand communities,’ says Peter. ‘If you are looking to make a change, like Craig, and have the same ambition and drive for success, we want to hear from you.’

advertiser info

Columbus Coffee www.columbuscoffee.co.nz Contact Angela Manihera P 0-9-520 1044 M 021 883 486 angela@columbuscoffee.co.nz

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franchise management

CRIMINALISATION

would cartel law change affect franchising? New proposals amending anti-cartels legislation would mean franchises need to be more careful than ever, says Michael Bright

T

he Government is proposing new legislation to criminalise cartel conduct in New Zealand. If passed, it will make engaging in ‘cartel conduct’ a criminal offence punishable by up to seven years’ imprisonment or fines of $500,000 for individuals. Companies would face fines of up to $10 million, three times the commercial gain resulting from the offence, or 10 percent of the turnover of the company and any related companies. Criminalisation was considered and then abandoned by the previous Government.

common features of franchising as price agreements, trade restraints or the allocation of territories an offence, unless the parties can prove that one of the few legislated exemptions applies.

The current cartels legislation under the Commerce Act has been of major concern to the franchise sector because of the possibility that franchisees – or a franchisor and their franchisees – could in some circumstances be deemed to be in competition with each other. This would make such

why criminalise?

GET YOUR LIFE BACK

While the situation regarding franchises has been clarified following lobbying by the Franchise Association, franchisors still have to take care and may have to modify their requirements and documentation. The proposed legislation further harshens the possible penalties for cartel behaviour.

Criminal penalties for cartel conduct are common overseas, particularly in the countries in which many New Zealand companies operate.

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To find out more, visit www.joingreenacres.co.nz 58

Franchise New Zealand

Autumn 2018

Year 27 Issue 01


Criminalisation allows more effective collaboration with foreign enforcement agencies and promotes compliance when, for some international cartels, the level of financial penalty imposed here could be seen as just a cost of doing business. The criminalisation of cartel conduct also allows greater resources to be brought to enforcement and the ability to convict individuals is seen as a strong deterrent. While the prospect of significant criminal penalties in this area will be of concern to many businesses and trade organisations, in fact the financial penalties would be no higher than under the current law. ‘Criminalising cartel conduct will certainly raise the stakes in this area, although the potential financial penalties are already in play,’ says Michael Bright, a franchise specialist lawyer with Gaze Burt. ‘Section 80 of the Commerce Act, as it stands now, already gives a Court the power to impose the same fines as are proposed under the new Bill. Section 82A also provides a power to award exemplary damages. The only new penalty is the prospect of imprisonment and the consequences that follow from an individual being criminally convicted.’ ‘It’s perhaps worth remembering that the underlying law – the cartels law just enacted – isn’t changing, so complying with the law will be no more or less difficult than it was already,’ Michael points out. ‘There will also be a two-year ‘grace period’ before the criminal sanctions apply, so there is no immediate need for panic, although it is still important to review franchise systems and agreements in light of the cartels law passed last year.’

belief defence helpful, likely to change One area of uncertainty in the amendments is a proposed change to the ‘honest belief’ defence, which (in earlier versions of the proposed legislation) would have provided a defence to criminal conviction if the defendant ‘honestly believed’ that their conduct was covered by an exemption to the Act. This was the subject of some scrutiny by the MBIE and the Commerce Commission, which argued against the ‘honest belief’ defence, essentially because there was too much scope for a defendant to make sweeping claims that would allow them to escape liability. The current proposal still revolves around a defendant’s belief, but it is more focused on a particular aspect of the defence. ‘However, I think we can probably expect some change to this aspect of the Bill as it works through the legislative process,’ says Michael. If the Bill is enacted ‘as is’, it will be a defence to prosecution if the defendant and other parties were involved in a collaborative activity and the defendant ‘believed that the cartel provision was reasonably necessary for the purposes of the collaborative activity.’ Michael explains that the element of belief is what will make defending criminal charges different to defending a charge under the current (non-criminal) law. ‘The current defence is an objective test, so the exemption might not apply even if the party believed that the cartel clause was necessary. However, even if a party fails to come under the current collaborative activity exemption, and is thus in breach of the Commerce Act, this does not mean they must be criminally liable. Their clause would be ineffectual, and they could be fined under section 80, but they could still escape criminal conviction if they believed the clause was reasonably necessary for their collaborative activity. Of course that’s somewhat cold comfort, given that the same fines can still be levied even without criminal conviction!’

check with your lawyer The Bill is currently only at the ‘First Hearing’ stage – it has yet to go through Select Committee, submissions and further debate in Parliament – and may never be enacted, or may be changed before it is enacted. In any case, Michael suggests that there will no doubt be a number of issues yet to resolve before the Bill is ready to become law, ‘So we can’t draw any hard conclusions at this point. ‘But the prospect of criminal sanctions coming down the track certainly heightens the need for those in the franchise sector to examine their arrangements in the light of the Commerce Act and either take appropriate action to remove cartel clauses or ensure they have a solid case for falling under about the author one of the exemptions (and can provide appropriate evidence to support Michael Bright is a specialist their position).’ franchise lawyer and partner The Commerce (Criminalisation of Cartels) Amendment Bill is available at www.legislation.govt.nz.

at Gaze Burt who has acted for a variety of national and international franchisors and start-ups.

franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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opportunity: home services

the time is

NOW V.I.P. Home Services make it easy to get into a business that offers the life you want

A

s a young man, Shane Barber liked working in his uncle’s small lawnmowing business. ‘I always thought, maybe I could do this when I retire,’ he recalls. 12 years later and in need of a change in lifestyle, V.I.P. Home Services helped Shane turn that thought into a thriving business of his own. Shane had a career in the restaurant industry, but a couple of years ago he realised he had to get out for the good of his health. ‘I wanted my own business, which is when I remembered the lawnmowing. I didn’t know how to start from scratch, and didn’t want to, but I had seen V.I.P. around for years – it was clearly a long-running success and a well-recognised brand, which really appealed to me. I talked to V.I.P, who were very approachable, then spent a day in the field with a V.I.P. franchisee. After that, I just knew it was the right move.’ Shane has been enjoying his Tauranga franchise for 17 months now and is loving his new business, which covers not just lawnmowing but all sorts of outdoor garden jobs ensuring year-round demand. ‘I work 50-55 hours a week spread between jobs and the admin that comes with running my own business. That might sound a lot, but I get to enjoy my weekends and flexible hours – and the 40kg I’ve lost as I’ve got fitter is another bonus! ‘I have as much work as I can handle as a solo operator, although the franchise is flexible so I could employ someone if I wanted. There’s a bit of a motto: “no more than you need, no less than you deserve.” V.I.P. won’t give me more work than I can handle, but there’s always more if I want it. 80 percent of my work has come from our national call centre – having that resource, along with all the other support, is invaluable for someone like me who knows what he wants but isn’t sure how to get there. Right from the start, they’ve been there to train me, mentor me and help my business grow.’ He has also found that, as part of the franchise, he has the support of a local network of franchisees. ‘There are five of us that are close – we work together when there’s a bigger one-off job, and help each other out when we can.’

After six years, Lily Calnan really values the support that V.I.P. offers franchise.co.nz – PUTTING PEOPLE IN BUSINESS

Shane Barber is loving the healthy outdoor lifestyle his business provides

why wait until later? By not waiting until retirement age, Shane has given himself a head start into what has the potential to be a long, fulfilling career. ‘There is always demand for the quality services that V.I.P. provides,’ says Estelle Logan, the national franchisor for the brand, ‘and we pride ourselves on being a company that both customers and franchisees choose to stay with for a long time. One such example is Lily Calnan, who has been operating her V.I.P. indoor cleaning franchise since 2011 and has plans for many years to come. ‘I was introduced to V.I.P. by a friend, who was a franchisee herself,’ says Lily. ‘My husband has a demanding career as an engineer and, as a barista with a very young son, I was finding it hard to juggle everything I needed to while working for someone else. V.I.P. gave me an income with flexibility, and now our son is 10 I still appreciate the freedom to arrange my schedule around school hours and holidays.’ Lily works on her own most of the time, forming a team with her friend – also still with V.I.P. – when a bigger contract comes up. ‘I’m happy working the hours that suit me and V.I.P. allows me to do that while maximising my income. One of the things that most appealed to me when I looked into cleaning franchises was that V.I.P. franchisees pay a flat fee, not a percentage of their income, so if I earn more, I don’t pay more.’

long-term opportunity Perhaps what makes a V.I.P. franchise so attractive long-term is the ongoing development and support. ‘For example, our new digital ordering system for supplies has saved us a lot of time,’ Lily says. ‘Plus, everyone really cares about the franchisees – it’s not just business. When I had health problems, they really worked to get my clients covered for a whole six months while I took some time for my recovery. ‘I don’t think I could go back to working for someone else, and I don’t plan on making any changes until my son finishes high school. Even then, if we move out of Auckland down the line, I want to take V.I.P. with me!’ Estelle says V.I.P Home Services has opportunities in both the indoor and outdoor sectors right across the country. ‘If you’re prepared to work hard and learn, we can help you get into your own business. Our flexible entry programme means you can select the level of income and investment you wish to make, advertiser info there’s paid training as you V.I.P. Home Services learn the skills you’ll need, www.viphomeservices.co.nz and we provide first-class support. If you’re looking Contact Nationwide Enquiries for change and a long-term P 0800 84 74 96 opportunity, don’t wait – call Estelle@viphomeservices.co.nz us now.’

61


buying a franchise: financial matters

benchmarking for buyers Dean Madsen of Westpac provides some tips on using franchise benchmarks to make a good purchase decision

I

f you fail to plan, you are planning to fail. It’s a remark often attributed to Benjamin Franklin, and it’s true. If the key to success is to have a plan, though, then an important part of planning to succeed in business is the use of benchmarking information which allows you to compare your own performance against the performance of others. This is an area where being part of a franchise can give you a real advantage. Benchmarking can involve comparisons between franchisees operating exactly the same system, as well as against competitors. Key performance indicators (KPIs) can not only measure financial ratios within the business, but also measure business processes and operational performance as well as customer satisfaction.

62

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how does it help? For a franchise system to be successful, both the franchisee and the franchisor need to make money. If the franchise system does not have proper financial reporting in place that allows them Dean Madsen to analyse the performance of their franchisees, the franchisor will have no idea if their franchisees are under financial stress. By the time they find out, it may be too late. Benchmarking allows the franchisor to monitor and improve performance of the franchise system in a number of ways. These include: • Checking the effectiveness of promotions and their impact on franchisees’ sales and gross margins; • Comparing performance between franchisees and identifying areas for improvement, such as sales, margins or wastage; • Identifying any negative trends across the group so they can make necessary changes to improve or maintain profitability; • Measuring results both within the franchise system and externally against industry norms to ensure competitiveness; • Testing new initiatives within a single store or sample group and comparing results against other stores; • Helping create a healthy competitive environment between franchisees where lessons learned are shared.

what’s this got to do with my bank? Benchmarking is particularly useful in preparing projections when you are opening a new outlet. That applies to a franchisee’s finance provider, too –

NZ

WHO?

HOUSE Investment from $19 - 39k secures SURVEYS training, tools, access to website, 0800 number, ongoing support, customer call centre, trademark protection, proven operations system ... and much more. Building or industry professionals who can display a good working knowledge of the construction industry. You’ll need to pass a police check, be motivated, efficient (with time management skills) and have integrity with strong ethics.

WHEN?

WHAT?

WHERE?

WHY?

For example, McDonald’s measures the length of time customers wait in line at their Drive Thru windows as they recognise that shorter drive queues help boost sales. Domino’s measures how long it takes from when a pizza order is received right up until it is delivered. This allows them to look closely at every step of the process to identify opportunities to reduce delivery times and improve customer satisfaction compared to their competitors. They have also gone a step further in that they share this information with the consumer through their GPS Pizza Tracker, where you can literally follow your pizza online from making right to your door.

As these examples show, benchmarking is most effective when it doesn’t just measure KPIs, but uses the information to identify opportunities for business improvement which could lead to higher sales, improved margins or both.

Your invitation to join the NZHS family is now open! Opportunities are limited to build your business with full franchisor support.

Call Now!

06 353-5990 027 774 4147

FULLY

ASBESTOS

MOISTURE

METH

INSURED

SAMPLING

REPORTS

TESTING

Franchise New Zealand

Autumn 2018

Year 27 Issue 01


at Westpac, when assessing applications for funding we use benchmarking to help us consider the cash flow projections provided by the applicant. For example, the below table could represent a performance range across a whole franchise group, or a range represented by stores within the group with similar demographics to the proposed outlet. Sales $ Gross Profit Labour Rent Franchise Fees Owners Salary Other Expenses Total Expenses Net Profit Before Tax (NPBT) Financial Ratios Gross Profit Margin Labour / Sales Rent / Sales Other Expenses / Sales

High 1000 700 225 100 70 60 100 555 145

Medium 800 560 195 100 56 60 85 496 64

Low 600 420 170 100 42 60 70 442 -22

70% 23% 10% 10%

70% 24% 13% 11%

70% 28% 17% 12%

Using the varying financial ratios in the above scenario will enable you the buyer and/or your bank to get a better understanding of how your new franchise might perform in each situation and what level of earnings you could achieve. This helps you gauge whether the level of earnings will be sufficient to provide a satisfactory return on investment and enough income for your personal needs. It also helps the bank gauge whether the business will be able to service the level of loan required. Of course, it is not enough just to get a sufficient return to meet your loan obligations and take a satisfactory drawing from the business: you should also look for a reasonable return on your investment as well as being able to continue to invest back into the business to keep up-to-date with new equipment and fit-out as required.

how do I know how my business might perform?

In a typical franchise, the majority of franchisees operate within the middle sales range, a percentage will perform at the top of the range and some at the bottom end. Variation can occur for a number of factors, including location, parking available, customer mix, size of market and proximity to customers, etc. Benchmarking allows you to drill down into these factors to see where your own location might fall.

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If the proposed location stacks up, you can then examine how the level of rent for your new outlet compares to other stores in the system given your expected sales. If the rent cost seems reasonable, that’s a positive sign; however, if it appears too high, then your business may struggle to be profitable. It’s also important to understand other ratios such as Gross Profit Margins, Labour to Sales and Expense to Income ratios, and to be aware what external factors may impact these ratios. Margins may be impacted by increased competition or higher commodity costs; increases in the minimum wage could lead to higher labour costs. The more you understand all these elements, the better the decision you will make.

one last thing There is one last ingredient that benchmarking data can’t take into account – you. Ultimately, if all the figures stack up then your level of success will depend mostly on your passion and your ability to run the business about the author successfully. Buying a business will inevitably be one of the most stressful things you ever do, but the more you understand about it in advance, the better prepared you will be to run it properly. Using the available benchmarks is a vital part of that process that will reduce the risks. Involve a specialist franchise banker and use their experience to help you. Rather than failing to plan, you’ll be planning to succeed.

Dean Madsen is Commercial Manager, Business for Westpac and a specialist franchise banker. For more information, contact your local Westpac Franchise and Business Banking Specialist on 0800 177 007 or email: franchising@westpac.co.nz The information contained in this article is intended as a guide only and is not intended as an exhaustive list of matters to be considered. Persons entering into franchise agreements should seek their own professional legal, accounting and other advice.

franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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buying, selling, or setting up a franchise? get the right legal advice from the franchise specialists

WHAT TO Philip Morrison looks at ten common questions about money that come up when buying a franchise

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ranchising can be a great way to get into business for yourself, but if you’ve never been self-employed before then it’s important to go in with your eyes open – to take off the rose-tinted glasses and be aware of the realities of owning your own business. That’s especially the case when it comes to financial matters. Here are 10 areas where newcomers often don’t know what to expect.

1 set-up costs – what’s included, what’s not? Franchises come in many different types and sizes; you can buy a franchise for as little as $5,000 or more than $1,000,000. But however much you’re planning to spend, you need to know what is included and what is not before you sign the contract. When considering set-up costs, some of the common areas to investigate are:

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Set-up costs will vary considerably depending on the type of franchise you have chosen: for example, home-based, mobile or premises-based? Do you have to provide a rental bond? Are there any fit-out costs? Is the fit-out on a fixed price contract or just an estimate? Is external signage included? Do you require a vehicle? What type? Must it be new or second hand? Is signwriting included or additional? What equipment or initial stock costs will be incurred? Can items be leased to preserve initial capital? Any good franchisor will detail all the above prior to signing so that you don’t find yourself faced with unexpected costs. However, it’s important for you to know whether or not such costs are included in the figure initially quoted to you.

Want to be Up and Running Straight Away?

One question often overlooked is: have adequate provisions been made for professional costs – your lawyer’s and accountant’s advice? Who pays the franchisor’s legal costs? Are the costs of leasing negotiations allowed for?

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What does the franchise fee cover? Normally, it will cover the right to use the brand and systems – but what else is included? A launch promotion and initial marketing? Manuals? Training? If training is provided, does it take place in NZ or overseas? Who pays for the travel and accommodation costs? Do you get paid while you are training, or do you have to allow for this when planning your budget? Is there a work guarantee or an income guarantee? When do they apply and for how long?

2 ongoing fees – how much, what for and when?

All franchise systems require their franchisees to pay ongoing fees in some way (see the article on page 40). These are separate to and additional to the upfront franchise fee you paid at the beginning. One question we are often asked is, ‘Can I negotiate the fees downwards?’ The answer is almost certainly no; fees have been calculated to support a certain level of services and return, and should be the same for every franchisee in the network. In addition to the normal ongoing fees, there may also be specific fees charged for other services All of these fees need to be factored into your cash flow planning. In many cases, defaulting on paying your franchise fees will mean you are in breach of the terms of your franchise agreement and face the risk of losing your franchise.

3 ongoing costs – what’s included? It’s important to realise that when you buy a franchise, you are running your own business. The ongoing fees that you pay will provide some services, as detailed above, but you will be responsible for everything else: rent, rates, repairs, stock, equipment maintenance, point of sales systems, staff wages, KiwiSaver contributions, fuel, power bills, local advertising, etc, etc. All of these have to be budgeted for and included in your cash flow projections. The good news is that although you have to pay these costs, your franchisor should be able to give you a clear guide as to how much they will be and provide systems for you to calculate and manage them. Even better, the Franchise New Zealand

Autumn 2018

Year 27 Issue 01


O EXPECT franchise should have benchmarking systems in place that allow you to compare how you are doing in each of these areas against other franchisees in the group, so that you can see where there are areas for improvement.

4 how are sales projections calculated? Unlike costs, franchisors can’t know what sales you will achieve with 100 percent certainty – there are too many variables, including your own performance. It’s therefore important for you to ask how any sales projections were calculated to know how much reliance you can place on them in making your buying decision. Were sales projections based on existing franchisee sales currently being achieved within the system? Is your site or territory directly comparable to others? Are the projections based on trading in New Zealand or overseas outlets? Businesses often take time to get established, so how long does it usually take to reach expected sales levels? What are the assumptions used to create the sales projections – eg, operate 6 days a week for 10 hours a day, or 5 days a week for 8 hours a day? As Dean Madsen of Westpac points out in his article on page 62, a franchise which has good benchmarking processes in place can provide valuable insights. Beyond that, consulting an accountant who has experience with, and data on, the franchise you are seeking to buy can assist in this process. Finding like-for-like comparisons from actual data can create realistic sales expectations and targets for you, so that you know from the start what you need to achieve each week and can measure your progress. Talking to other franchisees in the system can give you insights about realistic sales levels and what you need to do to cover your wages and finance your borrowings. Having realistic expectations is essential.

5 how do I pay taxes & gst? There are two main reasons for business failure: the first is lack of capital, so choose a business you can afford in the first place. The second, however, can

buying a franchise: money matters creep up on you – not planning for your tax obligations. That’s why you need to work through a number of key questions with your accountant before you start your business. Do you put yourself on the payroll and pay PAYE once a month? What about KiwiSaver? Employer or employee contributions? Which payroll system should you use? Or instead of a salary, should you take drawings? Drawings are withdrawals you take as an owner that have no tax attached at the time, although it will need to be paid later. If you do take drawings, how do you record them in your books? When does the tax on the drawings become payable? Drawings will often move you from being a PAYE tax payer to being a ‘provisional tax payer’ – and recent changes mean that you have more options as to how you pay provisional tax (see page 36). It can be tempting to use the money for other things ‘in the meantime,’ so beware. The new Accounting Income Method (AIM), which allows you to pay your income tax as you go, may merit consideration. There are various GST payment cycles ranging from monthly to six-monthly filing and different methods for calculating GST. This is a common area where cash flow suffers if you don’t get it right. For all these reasons, taking tax advice from an accountant before you start trading is critical to operating a business – the IRD doesn’t accept ignorance as an excuse.

6 what can I put through the business? This is one of the most common questions I hear from new franchisees. Operating a business means that you can claim certain types of expenses against tax, which is not the case if you’re a wage or salary earner. What you can claim, however, will vary depending on your individual circumstances. I often hear people saying things like, ‘My friend’s accountant said I could claim the household dog food as a security cost,’ or ‘My new designer wardrobe can be claimed as uniforms.’ Such bizarre or excessive claims are frowned upon by the IRD, which has benchmarks on all industry types. Any excessive personal expenses put through the business may trigger an IRD audit – a disruptive process for any business.

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buying a franchise: money matters The IRD do prescribe certain types of costs that can be claimed within defined parameters. Common areas include a proportion of home office expenses such as telephone and internet costs, a proportion of rent, interest, insurances, power, etc. Good record-keeping will be essential to follow these costs. As a rule of thumb, expenses claimed need to have a connection to deriving income: for example, filling the boat with fuel will be a deductible expense if you are a fisherman, but not if you operate a stationery store! Again, it pays to get advice from an experienced accountant on this to set realistic expectations on what you can and can’t claim.

7 when can I have a company car? It takes time to get a business up and running profitably, so unless you need one to operate then you will need to wait. You have to make the money before you spend the money, and leaving cash in the business is critical – you’ll need to spend it on more stock, more staff, more marketing or whatever before splashing out on a new BMW. Knowing your break-even point, reaching critical mass, paying all your taxes and operating costs will all help you achieve your ultimate goal. If you do need a vehicle, take advice on claiming motor vehicle expenses before you buy it. Being realistic on the type of vehicle is important – that Beemer may not be deemed appropriate for delivering spouting! Some vehicle types will attract Fringe Benefit Tax (FBT) while others allow your business to claim 100 percent of the operating costs without incurring FBT. Other questions include: how much of my vehicle running costs can I claim as a business expense? Do I need to keep a log book? Can I claim the GST on the purchase of my vehicle? What happens when I sell it? This is a complex area and each case needs to be evaluated on its own merits.

8 how much can I earn? This is a million dollar question, although the answer is unlikely to be ‘a million dollars.’ The real question is, ‘How much money can I take out of the business without damaging it?’ A one-man-and-a-van franchise is likely to produce a different result from a large restaurant employing 50 staff. Some questions you should ask yourself are: How much money do you need to live on? Are you comfortable with earning less than what you are being paid

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now until your business is established? Although some new businesses do offer a return from day one, most take time to be able to start paying you back. You need to find out how long this will take. The franchisor and other franchisees should be able to give you some guidelines, but using a specialist accountant who knows the franchise is your best bet. Putting together a business plan and a cashflow budget will assist you in establishing what income you could reasonably expect to earn before you sign.

9 how much will my business be worth? When the time comes to sell your business and move on, how much can you expect to get for it? Well, it’s just like selling your family home – what you can get for it depends on what someone is willing to pay. As a general rule, though, a high-performing franchise business with a recognised brand will be easier to sell than an independently-owned business. A successful business with good cashflow will fetch more than a struggling one. Profitability, a track record of consistent performance, a good location and good record-keeping all contribute to how much a business is worth.

10 do I need to pay for advice? If you had a particular medical problem, you’d consult a specialist rather than your GP. In the same way, if you’re considering buying a franchise, consult a specialist franchise lawyer, banker and accountant. They won’t be learning on you, and they’re likely to know the franchise system and the franchisor involved. They’ll know about the specific issues, set you on the right path and, ultimately, save you time, money, headaches and even tax. Having realistic expectations is important for your future success and your future happiness, so don’t try to save money or take short-cuts. Do proper pre-purchase evaluation (see page 90).Remember, good advice pays, not costs.

Franchise New Zealand

advertiser info Philip Morrison is principal of Franchise Accountants, a specialist accounting practice which has worked with over 250 different franchise brands throughout New Zealand.

Autumn 2018

Year 27 Issue 01


opportunity: food & beverage

Freya and Brad Fretwell ‘The system really works if you follow it and put in the effort’

PROVEN – AND RISING Bakers Delight offers franchisees the right ingredients for success

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hat do you need to succeed in the competitive food retail market? Three key ingredients are quality, freshness and convenience, and that’s exactly what Bakers Delight offers. The combination not only keeps customers coming back day after day, but also creates a sustainable business with good margins that rewards franchisees for the work they put in. It’s a formula that has been proven over time. The first Bakers Delight was opened in Melbourne in 1980 by Roger and Lesley Gillespie, whose daughter Elise and her husband David Christie are joint CEOs today. Franchised in 1988, the brand came to New Zealand in 1995 and now has over 700 outlets throughout Australasia and North America. Along the way, it’s picked up a whole raft of awards for excellence in retailing, franchising and business, including the prestigious Readers Digest Most Trusted Brands Award in 2013. Brad Fretwell knows the company well, having started working at his local Bakers Delight 16 years ago while he was still at school. ‘Mum had encouraged me to get a job and I discovered I loved this business,’ he says. ‘When I have a goal I go for it, so I saved hard and by 2010 I had about half the money required to buy my own franchise – my parents lent me the rest. ‘I was pretty young back then and although I knew the system inside out, I discovered that any business is tough in the first year. But the franchise system really worked. Bakers Delight have three key goals for every shop – Environment, Service and Product, or ESP for short. We concentrated on those vital ingredients and they proved the recipe for success.’

going on growing Now 31, Brad and his wife Freya own the Milford store, one of the oldestestablished Bakers Delight outlets in New Zealand. ‘Sales keep rising each year so there’s certainly money to be made,’ he says. ‘People are prepared to pay for the quality which Bakers Delight is renowned for. Everything is baked fresh each day right here on the premises, with a wide range of breads and pastries from classic loaves to crusty artisanal sourdoughs – not to mention our famous hot cross buns at this time of year. I’m often asked by customers why we don’t do pies or cakes, and the answer is very simple: we don’t need to, because we do bread so well.’ Another key element in the Bakers Delight recipe is getting the right people – staff, as well as franchisees. The Milford store acquired an experienced retailer in the form of Freya, now married to Brad but shortly to depart on franchise.co.nz – PUTTING PEOPLE IN BUSINESS

maternity leave. ‘Freya is determined to be back by Christmas, though,’ Brad smiles. ‘Staff are crucial to an operation like this and we are fortunate in that we have wonderful people – my chief baker has been with me nearly eight years, and all our assistants have been with us four or five years. We have every confidence that they’ll keep the shop running smoothly when our baby arrives.’

100 percent support Brad believes Bakers Delight has met all his expectations and given him a profitable and sustainable business that he loves. ‘The Bakers Delight system is very thorough, very detailed and really works if you follow it and put in the effort. The first year will probably be very hard, but the franchise will support you one hundred per cent.’ So what do you need to be a successful Bakers Delight franchisee? ‘I’d say that you have to be open to change,’ suggests Freya. ‘The industry is changing all the time and Bakers Delight is always striving to be at the forefront of new tastes and ideas. As franchisees, we have to be prepared to adapt our business to make the most of these.’

no food experience needed James Morton, the New Zealand Country Manager for Bakers Delight, says that you don’t need food industry experience to run a profitable store. ‘Our franchisees include teachers, tradesmen and retailers. Everyone goes through an intensive sixteen-week training programme to learn about our ESP elements and how to put the right ingredients together in their own business. After that, there’s ongoing training and support to help you grow, and you’ll also be part of a strong community full of dedicated, passionate business owners.’ Bakers Delight has opportunities available between $150,000 and $400,000 depending on whether you are looking to purchase an existing bakery or establish a new location. ‘We hold accreditation with both Westpac and ANZ, who may lend up to 50% of the purchase price of the bakery to suitably-qualified people,’ says James. ‘That means great advertiser info opportunities for passionate people who want to advance their careers Bakers Delight through a unique, expanding and highly www.bakersdelight.co.nz successful brand. ‘Bakers Delight has the right ingredients in place to help you succeed. If you believe you have the right ingredients too, give me a call and let’s see what we can create together.’

Contact James Morton P 0800 225 388 M 021 500 293 franchise.recruitment@ bakersdelight.co.nz

bakersdelight.co.nz

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franchise management

LEVELLING THE FIELD A clampdown on bad employers should benefit franchisees

employers who are now banned from recruiting migrant workers for varying periods and there are already over 150 employers who appear on this list.

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ne of the less obvious benefits of buying a franchise as opposed to going it alone is the help you’ll get in staying on top of New Zealand’s employment laws. Minimum wage changes, holiday pay requirements, visa requirements and payroll issues all pose complex and timeconsuming challenges to the business owner, and if you get it wrong or, worse, try to cheat your employees, the penalties can be severe. Recently, a (non-franchised) business owner was sentenced to two years’ imprisonment as a direct result of not complying with employment legislation. Another business owner was made to pay $200,000 for employment breaches. ‘We are now seeing MBIE Labour Inspectorate personnel carry out more audits, more frequently and at random on SME businesses,’ notes Thai Anh Cooper, who specialises in franchise employment and compliance issues as owner of the in2HR consultancy. This should come as no surprise. New penalties for breaching employment and immigration laws were announced last year under the previous government, leading to warnings from the Labour Inspectorate that it would be becoming more active in this area. It seems likely that the current government, which has a focus on workers’ rights, will continue to back such action. Potential migrant exploitation is another concern, especially among business owners who are themselves immigrants to New Zealand. The Labour Inspectorate has introduced a public ‘name and shame’ list of

on your side The good news is that franchisors are aware of the dangers and many are taking steps to upskill franchisees in this area. The Franchise Association has held a number of events to help educate the sector, and a proposed amendment to its Code of Practice would further emphasise the importance of franchisee compliance. Helping franchisees stay out of trouble will also be one of the hot topics at the National Franchise Conference in August (see page 34). So what does this mean for franchisees? Well, first it means that, as a new business owner, you should receive the training and systems you need to set up your employment records properly from the very start. That gives you every chance of getting it right. Second, it means that you have someone – your franchisor – helping you stay up-to-date with any changes to legislation, or advising you how to handle upcoming public holidays correctly. Third, it means that you’re part of a wider group of franchisees who share experiences: if one of you is visited by the Labour Inspectorate, the others will soon hear about what an inspection actually involves in your type of business. Finally, the increased focus on employment issues is good news for all law-abiding businesses. By ensuring all the players in a market are paying fair wages, it creates a level playing field and removes unfair competition from the market. After that, your success is up to you.

GET THE

SUPPORT YOU NEED TO START OR GROW YOUR

FRANCHISE Owning a franchise is an exciting and often challenging venture. That’s why we have local Business Specialists throughout New Zealand who understand the specific requirements of franchise businesses, and are ready to help you make your franchise a success. We also have franchise-specific resources to assist you on ANZ Biz Hub. Visit anz.co.nz/bizhub or give us a call on 0800 39 40 41 to see how our Business Specialists can help you.

ANZ Bank New Zealand Limited 09/17

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19272

Franchise New Zealand

Autumn 2018

Year 27 Issue 01


opportunity: food & beverage

Burger Wisconsin’s focus on profitability pays off for franchisees

HAPPY ENDING M

ichael Johnston is taking off his Burger Wisconsin hat for the last time. The long-time Gisborne franchisee has decided the time has come to retire at last, and is selling his store. It brings to a close a career in franchising that started almost two decades ago – and Michael says that the last few years have been the best.

Michael Johnston: ‘I kind of wish I was staying on …’

‘In the last three to four years, this business has become really profitable,’ he says. ‘When the Burger Wisconsin franchise was bought by new owners Mariposa Restaurant Holdings (MRH), the family business behind the Mexicali Fresh chain, it was the best thing that could have happened. They made increased profitability a key target for all us franchisees – I only wish they’d taken over sooner! Whoever buys my store will be taking over a really good local business that’s backed by a solid, established franchise.’

a good keen man A new franchisor might worry many people, but Michael has always enjoyed the challenge of change. He grew up in Ruatoria on the east coast and milked cows seven days a week while attending school. ‘Then I went to work for my uncle shearing sheep, before moving to Southland when I was about 23 and building my own shearing gang. It was the right place to be in those days – plenty of sheep – and at the peak I had about 40 people working for me. I saved enough to come back to Gisborne, and went into partnership putting in the grape and kiwifruit infrastructure, but that came to an end, of course, so it looked like forestry or fencing for me.’ Deciding he was getting a little old to be tramping the wild hill country, Michael was persuaded by his wife to train as a chef. ‘I qualified and got a job as a tutor at the local marae, as well as a part-time cooking job at the hospital. However, I was pushing 60 by this stage and no-one wants to employ old fellows. So I realised I was going to have to buy myself a job.’ With his chef’s experience, the opportunity that presented itself was the local Burger Wisconsin, which 17 years ago was quite a different proposition to today. ‘It was hardly a franchise – more of a loose buying arrangement. The decor was different in every store and there was no uniformity at all.’ Complicating things further, Michael says Gisborne as an area ‘was not exactly thriving’ when he bought the business. ‘All the other Burger Wisconsin stores did much better than us but that was down to the place, not the brand. Then come the Rhythm and Vines festival we took $54,000 in six days! That kept us going all winter and beyond,’ he chuckles.

a whole heap of benefits After surviving rather than thriving for many years, things changed when MRH bought Burger Wisconsin and brought a whole heap of benefits. franchise.co.nz – PUTTING PEOPLE IN BUSINESS

‘Everything has improved in the last three years or so,’ Michael says. ‘The new franchise team has given us all the benefits of bulk buying power, good systems and fresh décor without damaging the local purchasing relationships and friendliness we were known for. We still have the same gourmet quality, the same old favourites, but there are new menu items, too. I’ve seen receipts shoot up since MRH took over, and I couldn’t be more pleased. ‘I’ll be 78 in July, so I figure I should have some retirement, but I’m quite sure of one thing: the buyer of my business is on to a good thing. The changes to Burger Wisconsin have made a massive difference to its potential and Gisborne has begun to change rapidly, too. People are seeking this place out and there is more money around. In short, we are growing, and now is a great time to get in.’ It’s a familiar story in many parts of New Zealand now as people leave the big cities in search of less traffic and a better lifestyle.

ready for the next generation Burger Wisconsin was founded in New Zealand in 1989. ‘So much of the original concept was ahead of its time, with fresh local produce complementing superb gourmet burgers,’ says Conor Kerlin of MRH. ‘When we bought the company, our challenge was to improve the returns franchisees were achieving without mucking up any of the best parts. Now we’ve re-energised the brand it’s living up to the potential it always had and producing real results, as Michael has demonstrated only too well.’ Burger Wisconsin is keen to attract the next generation of franchisees for new and existing locations nationwide. ‘We don’t necessarily want chefs or people with food experience – we just need people who can see the opportunity and are prepared to do what it takes to succeed. The cost of a new outlet is between $300,000 and $350,000 +gst. Much of that can be advertiser info financed and the potential return on investment is excellent.’ As Michael says, ‘If you are prepared to work hard and make the most of the opportunities the new Burger Wisconsin offers, it will reward you handsomely. I kind of wish I was staying on ...’

Burger Wisconsin www.burgerwisconsin.co.nz Contact Tyler Kerlin P 0-9-973 4559 M 021 411 144 info@wisconsin.co.nz

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opportunity: food & beverage

quality coffee deserves QUALITY PEOPLE Hudsons Coffee seeks master franchisee and franchisees to bring the proven brand to New Zealand

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998 was a significant year. Google was founded; Europeans agreed on a single currency; Auckland’s central city endured a five-week power outage. Across the Tasman, friends Ros Turner and Mark Hawthorne returned from their OE to Melbourne and identified the city’s need for delicious, high quality espresso coffee. In December they opened Hudsons Coffee in Elizabeth Street, and helped fuel the growth of Melbourne as one of the world’s coffee capitals. 20 years on, Hudsons Coffee is part of the Emirates Group and will be opening its 100th café. It’s celebrating by offering New Zealanders the opportunity to become Hudsons Coffee franchisees, and the company is also looking for a suitably qualified New Zealand master franchisee. This could be an entrepreneur, partnership or established company looking to diversify with a new brand. ‘If you’re one of the million and a quarter people from New Zealand who visit Australia annually, you’ve probably seen the Hudsons Coffee brand,’ says Adam Summerville, the company’s Managing Director. ‘Our cafés can be found in all major international and regional airport terminals, as well as bustling CBD’s and hospitals across Australia. ‘This provides potential franchisees with a high degree of brand awareness even before the first outlet opens in New Zealand. And, of course, with close to 1.8 million Australians flying into New Zealand annually, there’s no doubt that many will make a beeline for the first Hudsons Coffee outlet they see. Apart from our famous coffee blends and other beverages, our menu has something for everyone from gourmet delights to classic favourites, seriously decadent sweets and seasonal surprises.’

winners attract winners In addition to offering a clean slate with a known brand and a proven system, Hudsons Coffee provides the opportunity for franchisees and the master franchisee to be in partnership with one of the world’s leading companies. Emirates is well-known here as a result of its long-running role as naming rights sponsor with Team New Zealand, which paid off when they brought the America’s Cup back last year. ‘Our wholly-owned subsidiary, Emirates Leisure Retail, bought Hudsons Coffee in 2009. Since then, it’s expanded via both franchised and companyowned outlets, and of course the Group’s connections with the travel industry have led to our expertise in servicing franchise.co.nz – PUTTING PEOPLE IN BUSINESS

airports. We’ll be opening a company-owned outlet in the Domestic terminal at Auckland Airport soon, and want to hear from potential franchisees and master franchisees right now.’ Location is obviously a vitally important consideration. ‘In addition to transport hubs, we find CBD’s and busy high streets work extremely well for us – we tend to keep away from malls and shopping centres with their high rents. Our franchise model not only has the flexibility to operate various sizes of outlet profitably, but coffee carts and kiosks, too.’

double-digit sales growth Adam is well-placed to judge the Hudsons Coffee model, having a strong history in food and beverage retail including senior positions with one of the world’s largest hospitality providers, 15 years managing hotel groups within Australia, and owning his own successful Sydney hotel. He joined Hudsons Coffee in 2012 and now sits on the main board of Emirates Leisure Retail Australia. Under Adam’s stewardship, Hudsons has introduced décor and fit-out changes designed not just to enhance efficiency and profitability but to embrace the spirit of independent coffee outlets. ‘The result has been 98 percent customer approval and double-digit sales growth,’ Adam says. ‘Our menu is also constantly evolving to meet changing food trends and customer demands. ‘What haven’t changed are our freshly-roasted bespoke coffee blends: Premium and Barista’s Choice, along with a rotating seasonal blend, have been consistent favourites with our customers for 20 years. Don’t underrate the appeal of our coffee – along with great customer service, it gives us a razor-sharp competitive edge.’

turn-key opportunity Adam says that one of the keys to a successful franchise network is building strong relationships with franchisees. ‘For this reason, Hudsons Coffee has strong support systems and people to assist our franchisees at every stage of their franchise journey. We provide a comprehensive training programme, assistance with site selection, turn-key design and fit-out. There’s also a specially-designed communications platform called ELLE that keeps franchisees informed of the latest products, support tools and staff training resources, and encourages networking among franchisees. ‘The franchisor team assists with recruiting and training staff, while ongoing support from a dedicated consultant helps franchisees maximise their sales and increase profitability. Investment levels vary according to location and style of outlet.’ And for those seeking a bigger opportunity, there’s the master franchise to consider. ‘If you’ve got a strong understanding of the local New Zealand market, a willingness to invest in a proven brand and operating system and the commitment to develop a national chain, contact us immediately.’

advertiser info Hudsons Coffee www.hudsonscoffee.com.au Contact Tim Ryan P 0061-3-8631 7700 M 0061 432 454 643 tim.r@emirateslr.com.au

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L

ast year’s Survey of Franchising revealed that the level of substantial disputes within franchising in New Zealand is refreshingly low, involving just 1.9 percent of franchisees and 22 percent of franchisors. Of these, almost half (49 percent) are settled through mediation, with a further 41 percent being handled through correspondence via a solicitor. Just 10 percent of franchise disputes end up in litigation, so when a franchise does end up going to court, it’s worth looking to see what lessons can be learned. Three recent cases have focused on the issues of how a franchise term should be renewed, how franchisee partnerships are documented, and – a regular concern – restraint of trade provisions.

can a franchise term be left to run on? Stonewood Homes is one of the country’s best-known building brands. When the franchisor company previously owned by Mr Brent Mettrick and Mr Anthony Andersen went into liquidation, it was sold by the liquidator to the Chow brothers and a new company Stonewood Homes NZ (Chch) Franchisor Limited (Stonewood) was incorporated on 25 February 2016. This was good news for the franchisees who saw the brand name retained and support and group buying advantages continue. A case arising out of the sale showed that franchise agreements need to be properly renewed at the end of the term rather than being left to run on, or there could be significant issues. In the case of Stonewood Homes NZ (Chch) Franchisor Limited v B A Mettrick and A W Andersen. Stonewood pursued the defendants for repayment of a debt of over half a million dollars and relied upon their personal guarantees. Background

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Stonewood acquired the franchise rights for a business known as Stonewood Homes by arrangement in 2016. Mettrick and Andersen guaranteed the obligations of a franchisee company that they also owned, Stonewood Homes (Hamilton) Limited, and that company was placed into liquidation in January 2016. Stonewood asserted that a debt of $556,920.50 (plus interest) was owing under the franchise agreement for which the defendants were liable under their guarantees. The defendants applied for summary judgment on the basis that the guarantees did not apply to the debt as claimed and their statement of defence set out four grounds, including that the term of the guarantee was limited to the initial term of the franchise agreement being 3 years from 14 March 2008. The franchise agreement was signed by the franchisee, the original franchisor and the guarantors. The form of the guarantee was very wide, and joint and several but the franchise agreement was not renewed after the initial term expired. Counsel for the defendants submitted that the defendants guaranteed only the performance of obligations under the franchise agreement under its term of 3 years and that the defendants’ guarantee obligations did not cover any renewal period. A fresh guarantee would have been required in the event of renewal of the franchise agreement. Counsel submitted that the defendants’ obligations also did not cover any period of continued franchise arrangements which arose other than by renewal of the franchise agreement.

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Re-sale: Profitable Rotorua business 72

The plaintiff’s case was that this was not a case of renewal of term but rather it was one in which the term of the franchise agreement had been extended, with the guarantee continuing to apply for the extended period and counsel identified this situation in contractual terms as a variation of the franchise agreement. The issue and the law The issue is simple: did the personal guarantees apply to a franchise agreement which had run its initial term and had not been formally renewed but where the parties continued the franchise arrangement? Associate Judge Osborne in the Christchurch High Court confirmed the law and stated ‘That a guarantee is subject to the principles of construction governing franchise agreements generally.’ He examined a number of cases where that principle was discussed and considered the submissions of both Stonewood and the defendants. The Judge stated that the franchisee’s debts as claimed in the proceeding came into existence after the initial term of the franchise agreement expired around 14 March 2011 and stated that ‘It is also common ground that the parties did not renew the franchise agreement under clause 4.1 of the franchise agreement.’ The Judge looked at the relevance of the ‘continuing guarantee’ provision and also looked at a number of cases which counsel referred to. Franchise New Zealand

Autumn 2018

Year 27 Issue 01


rights & wrongs Stewart Germann reviews lessons to be learned from three recent cases involving wellknown New Zealand franchise brands The relief The Judge found that Stonewood had not provided in evidence a factual foundation to support an argument that the franchisor and franchisee entered into a variation of the franchise agreement. He said that the defendants had established that they had a complete and incontrovertible answer to the plaintiff’s claim, and that under their guarantee ‘They guaranteed debts of the franchisee which accrued under the franchise agreement during its initial term. The franchise agreement was not renewed. The plaintiff had not established an evidential foundation of an argument that either the franchise agreement was varied or that the guarantors assented to such variation.’ The Judge concluded that there should be summary judgment for the defendants against Stonewood. Conclusion The case emphasises that franchise agreements should not be allowed to ‘run on’. If the initial term of a franchise agreement comes to an end then it must be formally renewed pursuant to the right of renewal clause contained in that franchise agreement. If a formal renewal of franchise agreement had been completed and executed it would have been guaranteed by the directors and shareholders of the franchisee company and, in that case, Mettrick and Andersen would have been liable for the debt. In this case, they were not because there was no renewal franchise agreement completed.

when partners fall out This is a case between Nigel James Mowlem as plaintiff, Barry John Keach as first defendant, NOC Holdings Limited (NOC) as second defendant, Metro Flooring Limited (MFL) as third defendant and The Flooring Shed Limited (TFSL) as fourth defendant. It was heard at the Auckland High Court on 16 February 2017. Background

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Mr Mowlem and Mr Keach each held 50 percent of the shares in TFSL which operated retail premises in Mt Wellington as part of the Carpet Court franchise. The second and third defendants were companies owned and controlled by Mr Keach. TFSL was incorporated on 23 June 2005 and at that time Carpet Court’s business in New Zealand operated on a licence model. During the first half of 2005, Mowlem and Keach began to discuss the concept of setting up a new retail outlet in Mt Wellington. Although Mowlem had limited relevant experience, it was agreed that he could learn the trade in the Newmarket store operated by MFL while the new business was being established. By June 2005, the parties had agreed to proceed and Mowlem stated that franchise.co.nz – PUTTING PEOPLE IN BUSINESS

the fact each held 50 percent of the shares in TFSL and were to be directors of the company reflected the agreement of the parties from the outset that the new business was to be a 50/50 venture. Mowlem said that it was his understanding that the new business would be entitled to all of the usual income streams any other licensee might expect, including manufacturers’ rebates. However, Keach took a different view on what was agreed but did accept that he did promise Mowlem that ‘If ever the new business was sold he would include the licence as part of the sale.’

It is to be noted that the rebates which feature prominently in the litigation were negotiated from time to time by Carpet Court with various suppliers. Carpet Court was operating a group purchasing scheme under which its former licensees (now franchise holders) purchased product from approved suppliers and, in return, those suppliers paid rebates to Carpet Court in respect of the product purchased. Mowlem said that during the period in which MFL was responsible for the administration of TFSL, he understood that the franchise fees paid to Carpet Court exceeded the rebates to which TFSL was entitled but later in 2012 Mowlem received informal advice that the rebates were not being credited to TFSL. The issue and the law Mowlem claimed that TFSL had claims against Keach and MFL exceeding $800,000 plus interest. The evidence showed that Keach and Mowlem disagreed with a number of facts. There were six different causes of action: breach of trust against Keach; breach of fiduciary duties against Keach based on his obligations as a director of TFSL; breach of constructive trust against NOC; known receipt of monies against NOC and MFL; TFSL alleging that in carrying out administration functions MFL acted as TFSL’s agent and had breached relevant duties by appropriating rebates properly due to TFSL; and an alleged duty of care owed and breached by MFL. The facts and causes of action are fairly complex but Justice Muir in the High Court at Auckland on 24 February 2017 stated that, ‘At its heart this case is a contest of credibility.’ He went on to say that ‘There is no doubt that what was contemplated was a joint and equal enterprise reflected in the exact equality of shareholding in TFSL and the directorship arrangements.’ The relief The Judge was persuaded by Mowlem’s evidence and he granted leave to Mowlem to bring proceedings in the name of TFSL against Keach, NOC and MFL. Conclusion The case is unusual as it was an application for leave to bring a derivative action on behalf of a company being TFSL. The facts of the case make it essential, in my opinion, that if two parties wish to enter into an equal joint venture then it must be properly documented at the outset and the legal documents which follow should be done promptly and should encapsulate all of the agreed terms leaving nothing to doubt; for if time passes it tends to be a case of one person’s opinion versus the other person’s opinion which, as the Judge rightly said, comes down to credibility in the end.

trading after termination Mike Pero Real Estate Limited has been involved in considerable litigation over recent years, normally relating to its enforcement of a breach of

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legal matters

restraint on competition provision against a former franchisee. The case of Mike Pero Real Estate Limited v Sonia Tafilipepe and MPRE Belfast Limited is no different. Background Ms Tafilipepe was head-hunted by Mike Pero Real Estate in 2014 and became a franchisee selling residential homes in Christchurch. She was a top performer and was known as ‘the listings machine’ as she owned several Christchurch franchises and sold about 80 homes per year, bringing in millions of dollars in commission. Tafilipepe was also a published author on selling properties and prominent on the real estate industry public speaking circuit. On 17 March 2017, for a number of reasons Mike Pero Real Estate terminated the franchise agreement with Tafilipepe. The agreement contained a restraint of trade provision which applied to a 25km radius for 4 months from the date of termination, and also a 3km restriction for 2 years from competing with any Mike Pero Real Estate business. On 28 March 2017 Mike Pero Real Estate issued a notice to Tafilipepe alleging breaches of the restraint on competition and, in particular, that using the trading name ‘Dynamic Realty’ she was trading in breach of the restraint by listing properties within the 25km exclusion area specified in the restraint on competition. She was asked to provide a written undertaking that she would comply with the full terms and effects of the restraint on competition by the end of business on 29 March. There was some dispute between the parties as to whether she was prepared to provide such an undertaking, but, in any event, Mike Pero Real Estate applied for interlocutory relief in the form of an interim injunction to enforce the restraint on competition triggered on the termination of the franchise agreement. Mike Pero Real Estate submitted the restraint on competition provision was a crucial aspect of a franchise system because of the intellectual property provided by the franchisor to the franchisee and the highly competitive nature of the New Zealand real estate industry.

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Franchise New Zealand

Autumn 2018

Year 27 Issue 01


The issue and the law The issue was whether Tafilipepe had rebranded her real estate business in the name of Dynamic Realty in direct competition with Mike Pero Real Estate and whether she diverted Mike Pero Real Estate customers to her new business in breach of the restraint on competition clauses contained in her franchise agreement.

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There is considerable case law on restraint on competition but counsel did not have to argue this point because during a judicial telephone conference in early April 2017 Tafilipepe acknowledged ‘That she did not intend to breach the restraint of competition requirement of the franchise agreement and that she was prepared to consent to the granting of interim relief as she was not going to contest the application for an interim injunction.’

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This outcome is not always the case because both parties usually argue the point in Court; but in my opinion Tafilipepe decided to concede defeat because there was overwhelming evidence in favour of Mike Pero.

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POLICY AND PROCESS FRAMEWORKS

The relief DEVELOPMENT AND TRAINING

On 10 April 2017 Justice Mander in the High Court at Christchurch granted various orders which are worth quoting, as follows:

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(a) Granting an interim injunction restraining the first and second respondents from conducting the following activities in competition with the applicant within a 25 kilometre radius from outside the boundary of the territory (“Territory”) which is comprised of Belfast, Christchurch, as defined by Statistics New Zealand or the offices of the franchisee (whichever is the greater) for a period of four months from 17 March 2017: i) Directly or indirectly canvass, solicit or attempt to solicit, serve or act for any customer of the respondents’ business (being the business of the second respondent whilst a franchisee up until 17 March 2017) (“Business”); or ii) Personally or by social media, circulars, letters or advertisements interfere with the Business or divulge to any person any information concerning the Business; or

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iii) Use the respondents’ telephone or facsimile numbers and any other numbers used by customers of the Business to contact the respondents; or iv) Be concerned or interested in any capacity whatsoever in any business (including by rebranding as Dynamic Realty) conducted in competition with the business of the applicant (or its other franchisees) where such business relates to the provision of real estate services and related services. (b) Granting an interim injunction restraining the first and second respondents from conducting the following activities in competition with the applicant within a three kilometre radius from the outside boundary of the Territory, or the office of the franchisee (whichever is the greater) for a period of two years from 17 March 2017: i) Directly or indirectly canvass, solicit or attempt to solicit, serve or act for any customer of the respondents’ Business whilst a franchisee of the applicant until 17 March 2017; or ii) Personally or by circulars, letters or advertisements interfere with the Business or divulge to any person any information concerning the Business; or iii) Use the respondents’ telephone or facsimile numbers and any other numbers used by customers of the Business to contact the respondents; or iv) Be concerned or interested in any capacity whatsoever in any business (including by rebranding as Dynamic Realty) conducted in competition with the business of the applicant (or its other franchisees) where such business relates to the provision of real estate services and related services. Conclusion This case again reinforces that restraint on competition/restraint of trade clauses in New Zealand are very important for franchisors who should not hesitate to apply for injunctive relief where the circumstances warrant it. Franchisees must realise that when they enter into franchise agreements which contain restraints of trade then, when they leave the franchise system either voluntarily or by way of termination, they cannot set up in competition with the franchisor unless it is expressly provided for in the agreement.

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about the author This article was written by Stewart Germann and researched by Khushbu Sundarji of Stewart Germann Law Office, a specialist franchising commercial law firm with over 35 years’ experience.

franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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Westpac Directo Over 275 different franchises

what’s available?

what does it cost?

what do they do?

how many are there?

who do I contact?

Home & Building

$25,000

0800 Sunshade are designers, manufacturers and installers of outdoor weather protection products.

7 7

P 0-6-876 9675

AA Auto Centre

Auto Services

$150,000

Become a premier provider in the vehicle service and repair market.

34 34

P 0-9-966 8704

A Buyer’s Choice Home Inspections

Home & Building

$32,500$65,000

Proven international franchise operating in 15 countries around the world. The house inspection 13 industry is rapidly growing with pre-purchase inspections, P testing, maintenance inspections 200 and safe and sanitary reports. We are now looking for further inspectors nationwide.

John Goodrum M 021 945 140 E john.goodrum@abuyerschoice.co.nz W abuyerschoice.co.nz

Home & Building

$1,000,000

New Zealand’s leading hire company supplying scissor lifts, cherry pickers and knucklebooms. There are exciting new franchise options available throughout the North Island. A unique opportunity exists for the right person to work their way into a franchise ownership role.

6 6

Lena Harrington P 0-3-341 3566 M 021 361 622 E franchises@accessman.co.nz W accessman.co.nz

Active+

Health & Fitness

$20,000

North Island-wide chain of physiotherapy and rehabilitation clinics, offering multi-disciplinary services of physiotherapy, occupational therapy, pilates and exercise rehabilitation, ACC rehabilitation contracts, health and wellness services. Operating since 1990. Previous health services experience preferred.

22 22

Gill Webb P 0800 224 486 E gill.webb@activeplus.co.nz W activeplus.co.nz

AluRestore

Home & Building

$49,500

Offers customers the opportunity to restore their joinery. Huge potential for new franchisees.

1 1

P 0508 737 867

Food & Beverage

$300,000

Market leader in the sales and distribution of milk products and beverages throughout New 65 Zealand including Anchor, Primo, Zing, Mammoth Supply Co, Fresh N Fruity, De Winkel, 65 Country Goodness, Mainland, Kapiti, CalciYum and Eon. National franchise structure operating since 1992 offering exclusive territories.

Shannon Davidson P 0-9-374 9303 E franchiseopportunities@fonterra.com W anchor.co.nz

Health & Fitness

$280,000

Convenient 24-hour fitness club franchise. Voted the world’s number 1 top global franchise 2015/16.

35 1300+

P 0-7-974 4589

Business & Commercial

$69,000

Appliance Tagging Services are Australia’s leading electrical testing and tagging franchise and are now franchising in New Zealand. Join our award-winning franchise business and enjoy the support of our proven system. We are seeking safety-minded well-organised people with a passion for success.

New 40

Steve Wren P 0061 3 8520 9750 M 0061 401 655 655 E steve@ats.com.au W appliancetaggingservices.com.au

Armstrong Smarter Security

Business & Commercial

$150,000

Armstrong for smarter security. Retail and mobile locksmith and alarm specialists.

18 18

P 0-9-415 0585

At Your Request Franchise Group

Home & Commercial $14,000

NZ’s premium home, commercial and lawn service franchise system.

200+ 200+

P 0800 297 297

Baby On The Move

Retail

$120,000

Specialising in rental and sales of baby and toddler car seats and other products.

17 17

P 0-9-422 2285

Food & Beverage

$150,000$400,000

With over 30 years of experience, Bakers Delight is a successful franchise business with a growing network of over 700 bakeries spanning across four countries. Bakers Delight has a proven business formula which provides comprehensive training and on-going support.

27 700+

P 0800 225 388 E franchiserecruitment@bakersdelight.com.au W bakersdelight.com.au

Bark Busters

Leisure & Education

$22,000 $30,000

Join Bark Busters, the largest, most trusted in-home dog training company globally.

5 275

P 0800 167 710

Bedpost

Retail

$50,000

New Zealand’s premium specialist bedding and bedroom furniture retailer with a focus on superior customer service, top brands and expert advice. Looking for motivated owner operators passionate about selling and providing a high level of customer service.

16 16

Graeme Doak M 021 665 923 E graeme@bedpost.co.nz W bedpost.co.nz

Beds R Us

Retail

P.O.A

Join NZ’s largest independent bedding group. Franchise opportunities available with full support.

46 46

P 0-9-972 3022

Bin Inn Retail Group Co-operative

Retail

$110,000

Co-operative of nationwide wholefoods and speciality grocery stores. No previous experience required.

36 36

P 0-7-575 6939

Blink n Clean

Home Services

$65,000

Blink n Clean Blinds is the new onsite service for blind cleaning.

New New

P 0800 254 656

Health & Fitness

$80,000

Body Audit provides a valuable tool for health, fitness and weight management, providing body composition testing services for workplaces, gyms, groups and individuals. Seeking go-getters with drive, vision, passion and enthusiasm. Experience not essential, full training, sales and marketing guidance and ongoing support provided.

New New

Michelle Rosewarne M 0274 331 266 E info@bodyaudit.co.nz W bodyaudit.co.nz

Bookends

Education

$30,000

Specialists in supplying all textbooks nationally to schools and other educational institutions.

18 18

P 0-3-377 9555

Books & Gifts Direct

Retail

$25,000

Books and gifts sold directly from lunchrooms and receptions.

45 200

P 0-9-9477 0012

Breakers Restaurant

Food & Beverage

$25,000$200,000

Proven franchise model providing Kiwi fare at affordable prices.

7 7

P 0-6-834 0537

Brucies Lawnmowing & Garden Care

Home Services

$49,000

Brucies Lawnmowing and Garden Care has grown dramatically since launching. We have a 12 strong presence in Auckland and are looking to establish master franchises throughout New 12 Zealand. We can help you build a strong business. No experience required, but professionalism and integrity are a necessity.

Bruce Rea P 0-9-267 7244 M 027 273 4992 E bjrea@xtra.co.nz W thebruciegroup.co.nz

Budding Ideas

Business & Commercial

$25,000

100% NZ owned, specialising in the hire of artificial flower displays.

P 0-9-837 1219

Accessman

Anchor Franchise

15

62

Anytime Fitness Appliance Tagging Services

Bakers Delight

Body Audit NZ

76

28

67

24

description

6 6

FANZ

0800 Sunshade

company

number in NZ, globally

industry

investment from

page number

A-B franchise and business opportunities get more information

Westpac Directory of Franchising and Advertiser Index Franchise New Zealand Autumn 2018 Year 27 Issue 01


tory of Franchising 76 franchise and business opportunities

85 specialist advisors

86 consultants and others

looking for a business opportunity but don’t know where to start? choose by industry

We have divided all the opportunities into ten main industries. Just look down the third column to select the type of business you are interested in. You can also search the Directory by industry online at www.franchise.co.nz

choose by investment

The ‘Investment’ figures quoted in the fourth column are for guidance only and may not include GST, equipment, working capital or other items unless specifically included. You should confirm such items direct with the franchise concerned.

note

choose by type

Listing information is supplied by that particular entity. The symbol in the FANZ column denotes a member of the Franchise Association. You are advised to confirm the accuracy of the listing and the membership status of any entity. Neither the sponsors of this Directory nor FANZ nor the publisher accept liability for any omissions or errors.

The description contains a brief description of the franchise and may include information on the type of people the opportunity is best suited to. More information can be found online at www.franchise.co.nz

Building Wash Services 10

Business & Commercial

$330,000

BWS is the market leader in the exterior washing of commercial buildings. Outstanding opportunities for, motivated self-starters with an eye for details, a good understanding of safety and sales ability. Being trade qualified or experienced in commercial property of benefit. Full induction and training programme.

FANZ

description

number in NZ, globally

industry

investment from

company

page number

franchise and business opportunities B-C get more information

New New

Simon Green P 0800 470 075 M 021 523 301 E simon@bws.co.nz W bws.co.nz

BurgerFuel

52, Food & Beverage 53

$300,000+ BurgerFuel is a leader in the gourmet burger market, dedicated to serving high quality burgers in an atmosphere as charged as the food. Combined with fun and irreverent marketing campaigns BurgerFuel creates the perfect environment for franchisees to grow and enjoy their business.

55 83

Craig Notman P 0-9-376 6007 E info@burgerfuel.co.nz W burgerfuel.com/nz/franchise

Burger Wisconsin

69

Food & Beverage

$300,000$350,000

At Burger Wisconsin, it’s always been about the food. Now is an exciting time to join us, with new sites planned throughout New Zealand and an existing store refresh programme underway. It’s a gourmet opportunity for operators with good taste.

22 22

Tyler Kerlin P 0-9-973 4559 E info@wisconsin.co.nz W burgerwisconsin.co.nz

Financial Services

$45,000

Calling all CA’s and CPA’s - we want you. Business Buddys are chartered accountants & Xero experts, gold partners in fact. We specialise in working with trades.

1 1

Kirsten Hawke P 0800 283 399 E office@businessbuddy.co.nz W businessbuddy.co.nz

Health & Beauty

$125,000

Caci is the market leader in appearance enhancement with a premium brand that delivers the best results. They are enjoying significant growth having opened multiple new locations in the past 12 months. We now only have limited locations remaining in New Zealand – apply today.

37 37

E franchisesales@fabgroup.co.nz W caci.co.nz/franchise

Café Botannix

Food & Beverage

$150,000

Contemporary deli cafés serving organic coffee and organic food options in Palmers garden centres.

4 4

Murray Belcher P 0-9-444 4369 E murray.belcher@ufsltd.co.nz

CAL Systems

Financial Services

$90,000

Turn-key operation. Set up and run a finance company from home.

30 30

P 0-4-293 6899

Home & Building

$150,000

We are offering driven, motivated people the opportunity to become a Cambridge Homes franchisee. Our motto is to be with you ‘Every step of the way’. This means that our team are dedicated to assisting you through the entire home building process.

5 5

Tim Santer M 021 409 763 E chnz@cambridgehomes.co.nz W cambridgehomes.co.nz

Carl’s Jr.

Food & Beverage

$1,000,000

We are looking for enthusiastic franchisees to join the Carl’s Jr. team and grow the business together with Restaurant Brand’s support. You need to be hands-on and goal focused. Operational training is provided.

18 1300+

Alan Brooks M 021 276 9769 E franchisesales@rbd.co.nz W restaurantbrands.co.nz

Cartridge World

Computer

$100,000$125,000

The largest, most experienced cartridge refilling company worldwide. Franchisees operate from 36 retail premises. 1650

P 0-3-446 8600

Cash Converters

Retail

$650,000

Looking for an exceptional return on your investment? We’re New Zealand’s favourite place to buy and sell, the world’s largest second-hand dealer and market leader in short term credit services. With more than 700 stores internationally you’ll be buying a tried and tested, well respected brand.

28 700+

Colin Mahoney P 0-9-281 7334 E enquiries@cashconverters.co.nz W cashconverters.co.nz

Central Landscape & Garden Supplies

Home & Building

P.O.A.

Landscape and garden supply yards providing bulk and bagged products. Pick-up and deliveries. Will suit hands-on owner operators with a passion for excellent customer service who take pride in customer satisfaction.

9 9

Mike Armour P 0-9-273 5352 M 0274 506 639 E mike@centrallandscapes.co.nz W centrallandscapes.co.nz

Champion Travel Referral Agents

Travel

$500$4500

A unique business opportunity for frequent travellers with entrepreneurial spirit. An annual fee New entitles agents to earn a percentage of commission rebates on personal and referral travel New bookings made under contract. See www.championtravel.co.nz for more information. ‘It pays to book Champion Travel!’

Maxwell Burns P 0-6-843 6280 M 021 0220 2220 E info@championtravel.co.nz W championtravel.co.nz

Cleancorp

Home & Commercial $25,000

Cleancorp offers home cleaning and commercial cleaning franchises. Seeking committed people to deliver great service. We source and acquire commercial cleaning contracts for our franchisees who are provided with full training, ensuring the same professional standards are offered to all customers.

105 105

Ivone Sass P 0-9-304 0599 M 021 272 0084 E ivone@cleancorp.co.nz W cleancorp.co.nz

Clean Planet

Business & Commercial

$20,000

Clean Planet, environmentally better for you and your customers. No selling, no invoicing, we do it for you. Well-established and growing strongly throughout regional New Zealand. Now looking for master licensees and franchisees. Work for yourself with the support of our proven processes and systems.

130 130

Tony Pattison P 0-9-622 0828 E tony.pattison@cleanplanet.co.nz W cleanplanet.co.nz

Cleantastic Commercial Cleaning

Business & Commercial

$13,800

An established, award-winning franchise with over 300 franchisees operating around the country. This mobile cleaning service franchise offers high quality cleaning at cost effective prices. Franchisees utilise the brand, marketing systems, support and technical expertise. Comprehensive training, equipment, uniform, business cards and manuals provided.

280 1000

Kevin Richardson P 0800 800 055 E kevinrichardson@cleantastic.co.nz W cleantastic.com

Cobb & Co.

Food & Beverage

$500,000

Welcome back to Cobb & Co., New Zealand’s original restaurant chain. With unbeatable brand 8 recognition, enviable buying power, proven profitability and on-going support from Cobb Group, 8 it’s not hard to see why owning a Cobb & Co. is a special opportunity.

Ben Gower P 0-7-281 1197 M 0204 1007 007 E ben@cobb.co.nz W cobb.co.nz

Coffee Culture

Food & Beverage

$350,000

Our unique business model of roasting coffee in full view of our guests and then serving the highest quality espresso with flair and a total commitment to outstanding service has seen Coffee Culture grow to become Canterbury’s leading chain of boutique coffee houses.

Mike King P 0-3-377 2605 E mike@coffeeculture.co.nz W coffeeculture.co.nz

Business Buddy

Caci

Cambridge Homes

12

63

Search the Westpac Directory of Franchising at www.franchise.co.nz

19 20

77


Coffix

4

FANZ

description

number in NZ, globally

industry

investment from

company

page number

C-F franchise and business opportunities get more information

Food & Beverage

$100,000

You are invited to join Coffix and become your own boss in an ethical and environmentally responsible company. Coffix stores are offering exceptional Fairtrade coffee at a fair price and operating using a proven system that gives good income for a very low investment.

12 12

Amit Zamirly M 022 343 5704 E franchise@coffix.co.nz W coffix.co.nz

Retail

$200,000

At Colourplus, we’ve got your style. Your local store offers all the inspiration, expertise and advice you need to turn your decorating dreams into reality. With 30 stores nationwide, offering a range of top quality paint, wallpaper, curtains, blinds, giftware and decorating accessories.

29 29

P 0-9-818 9215 E info@colourplus.co.nz W colourplus.co.nz

Food & Beverage

$250,000$450,000

NZ’s premium café franchise. A highly recognised and trusted brand offering customers exceptional coffee and chef-prepared food. Awarded both Supreme Franchisee of the Year and Food and Beverage Franchise System of the Year 2015/16. Suit owners with passion for coffee, food and the value of customer relationships.

71 71

Peter Webster P 0-9-520 1044 M 021 883 852 E peter@columbuscoffee.co.nz W columbuscoffee.co.nz

Complete First Aid Supplies

Business & Commercial

$55,000

Market leader in supply of first aid kits to businesses. Seeking self-motivated people.

2 2

P 0-9-827 7726

Computer Troubleshooters

Computer

$27,500

Do you have what it takes to be a Computer Troubleshooter? We are looking for entrepreneurs to join our well established franchise network. Computer Troubleshooters is a global ICT support franchise, first established in 1997 and operating in 300 locations across 15 countries.

15 300+

Dennis Jones P 0800 728 768 M 0274 922 911 E dennis@cts.net.nz W computertroubleshooters.co.nz

Cookie Time

Food & Beverage

$75,000

Distribution of snack products to retailers & other on-sellers.

43 43

P 0-3-349 6161

Food & Beverage

$70,000

Cookright, the kitchen hero, saving kitchens time and money. Deepfryer, overhead filter and hood cleaning. Cooking oil filtering. Oil and kitchen consumables product sales. Cookright has significant income potential with minimal competition for motivated, hard-working, practical operators who can sell and are well organised.

31 31

Steve McMullen P 0800 804 104 M 029 770 0994 E steve@cookright.co.nz W cookright.co.nz

Cooltime

Home & Building

$30,000

Air conditioning installation company. Preferred installer for NZ’s leading electrical retailer.

7 7

P 0-7-854 1518

Corporate Cabs

Business & Commercial

$35,000

Corporate Cabs is New Zealand’s premier national cab operator.

400 400

P 0-9-632 0602

Business & Commercial

$10,000

Full service franchise, all contracts provided. Guaranteed income paid twice monthly. 607 CrestClean prepares GST returns, accounts and tax returns. Full training programme provides 608 career pathway. Operating since 1996. Franchises operating nationwide. Master franchises are also available.

Chris Barker P 0800 273 780 E info@crestclean.co.nz W crest.co.nz

Crest PropertyCare

Business & Commercial

$15,000

If you have handyman skills, or are good with outside jobs, you may like to consider a Crest PropertyCare franchise. We provide caretaking services to schools and building owners, looking after their grounds and doing simple property maintenance duties. Franchises are available throughout NZ.

20 20

Chris Barker P 0800 273 780 M 021 939 204 E chris.barker@crestclean.co.nz W crestpropertycare.co.nz

Crewcut

Home Services

$16,000

Crewcut is a lawn and garden maintenance franchise with businesses for sale. For over 26 years we’ve had operators providing lawn mowing, hedge trimming, section clearing, and gardening to Kiwi’s all across New Zealand. Buy a business with support, strong branding, and values.

260 260

Pauli Horgan P 0800 800 286 E pauli@crewcut.co.nz W crewcut.co.nz

Cutshop

Home & Building

$1.2m

Cutshop is a successful business offering contract cutting services to kitchen and wardrobe 3 retailers, interior fit-out specialists, and designers of bespoke products all over New 3 Zealand. Prime opportunities to invest in and manage a production and programming franchise are now available. Call for details.

André Hofer P 0-9-666 0632 M 021 879 413 E andre.hofer@cutshop.com W cutshop.com

Deck & Fence Pro

Home Services

$49,950

Professional home service franchise offering specialised restoration services to homeowners for decks, fences, garden furniture, garage doors and more. Oil, stain and paint restoration specialists. Franchises available nationwide. Full training and equipment included. Download a free info pack at www.deckandfencepro.co.nz

Duane Moul M 022 477 6477 E duane.m@theprogroup.co.nz W deckandfencepro.co.nz

Colourplus

Columbus Coffee

Cookright Kitchen Services

CrestClean

57

74

2

28 28

Domino’s

30, Food & Beverage 31

$450,000

Specialist quick service pizza franchise opportunity. You must have passion, commitment and 100 a drive to succeed. Strong leadership skills, good people and administration skills, plus an 2000+ entrepreneurial flair required. Have fun and work in a young, energetic and vibrant organisation.

P 0508 437 262 E franchise.recruitment@dominos.co.nz W dominosfranchise.co.nz

Dream Doors

23

Home & Building

$75,000

Design, manufacture and supply of made-to-measure kitchens, bathrooms and bedrooms for retail and trade customers. Seeking hard-working, sales-driven, computer literate go-getters who are willing to follow a proven dynamic international business model.

Derek Lilly P 0-3-443 5133 M 027 213 5133 E del@dreamdoors.co.nz W dreamdoors.co.nz

Home Services

$30,000$35,000

Driving Miss Daisy is NZ’s No.1 companion driving service. Currently we have 67 territories in 67 operation. If you are interested in becoming the next Daisy in this growth industry, call us today. 97 Our NZ franchises are an extremely affordable small business option.

Paula Lee-Smyth P 0-6-877 0363 E paula@drivingmissdaisy.co.nz W drivingmissdaisy.co.nz

Leisure

$25,000

Duo Photography is a New Zealand-leading professional photography business and are the 7 only studios that are fully mobile. We are looking for people with a passion for photography and 7 a warm personality.

Adrian De La Fuente P 0-4-972 2364 M 022 734 5802 E admin@duophotography.co.nz W duofranchise.com

Home & Building

$30,000

New Zealand’s premium installer of eco-friendly insulation and clean heat products.

9 9

Nick Hall P 0800 400 326 E nhall@ecoinsulation.co.nz W ecoinsulation.co.nz

A product sales-based business selling automatic insect control, odour control and fragrancing systems. Selling to both commercial and residential customers. Suitable for husband/wife teams or individuals with sales or business experience. A franchise opportunity with room for independent thinking.

18 30

Craig Cameron M 0275 656 418 E craig.cameron@ecomist.co.nz W ecomist.co.nz

$25,000

The electric bike business is growing rapidly with thousands of Kiwis switching to e-bikes for transport and recreation. Electrify.nz has the rights to top international e-bike brands and is looking for people with passion and ambition to partner with us in key locations around New Zealand.

4 4

James Munro M 021 644 405 E james@electrify.nz W electrify.nz

Driving Miss Daisy New Zealand

Duo Photography

11

Eco Insulation

Ecomist

64

Electrify.nz

46, Retail 47

Home & Commercial $30,000

10 75

EmbroidMe

Business & Commercial

$95,000

The world’s largest embroidery, screen printing and promotional products franchise. 13 EmbroidMe focuses on the business to business market providing high quality branded apparel 350 and promotional products. Customised apparel with promotional merchandise and advertising speciality items. No prior experience required.

Sarah Archibald P 0-9-577 4223 M 021 479 123 E fnz@businessfranchise.co.nz W businessfranchise.co.nz

enableMe New Zealand

Financial Services

$90,000

Want to help New Zealanders realise their financial goals and achieve financial freedom 8 faster? Here’s your chance - enableMe NZ is a business of highly trained professionals offering 8 financial personal training through impartial advice that helps Kiwis gain more control over their financial future.

Hamish Cowan P 0800 897 898 E hamish@enableme.co.nz W enableme.co.nz

$200,000

Epiphany Café are seeking people who are committed to excellence. Our point of difference is unique products such as homemade artisan donuts. This is more than just a business venture, we work hard, enjoy what we’re doing, and know how to have fun while achieving our goals.

6 6

Erika Coronel E admin@epiphanycafe.co.nz W epiphanycafe.co.nz

New 70

P 0061 8 8359 6622

Epiphany Café

44, Food & Beverage 45

Essential Beauty

Health & Beauty

$197,000$350,000

Seeking franchisees to join the Essential Beauty team throughout NZ.

Exceed Franchising

Home & Building

$60,000

Multi award-winning Exceed specialising in fixing windows and doors, enhancing and extending 23 the life of joinery. We are an innovative national franchise of 26 years with well-designed 5 systems to help support your journey with us.

David Dovey P 0800 25 27 36 E david@exceed.co.nz W exceed.co.nz

Expense Reduction Analysts

Business & Commercial

$79,500

World leading cost management group represented in 32 countries. We help clients reduce overhead expenses. Contingency based - no savings - no fees - no risk. Seeking experienced business people who want to capitalise on their experience. Earn what you’re worth, not what someone else wants to pay you.

26 700+

Denis Stevens P 0-4-566 6615 M 0274 487 089 E dstevens@expensereduction.com W expensereduction.com

Expert Maths Tuition

Leisure & Education

$30,000

Expert Maths Tuition has provided outstanding maths tuition to thousands of students.

7 7

P 0800 628 463

Express Business Group

Home Services

$9,950

Home services franchise which includes all initial equipment, training and great support.

70+ 3500

P 0800 397 737

Business & Commercial

$20,000

Fastway Couriers is an award-winning franchise system that provides local and national courier services at competitive prices and a simple prepaid system. One of New Zealand’s most successful franchisors with 1,600+ franchisees across 5 countries and 40+ franchise and industry awards.

275 1600

P 0-6-833 6333 E recruitment@fastway.co.nz W fastway.co.nz

Fastway Couriers

78

54

Westpac Directory of Franchising and Advertiser Index Franchise New Zealand Autumn 2018 Year 27 Issue 01


FANZ

20

description

number in NZ, globally

Fibrenew New Zealand

industry

investment from

company

page number

franchise and business opportunities F-H get more information

Business & Commercial

$90,000

Fibrenew are experts in leather, vinyl and plastic restoration. We are a unique, low cost, homebased, mobile franchise providing services to the automotive, furniture, aviation and marine markets. No experience required. Would suit someone who enjoys working with their hands and has good colour vision.

10 245+

Clive Coffey P 0-3-374 3366 M 0274 324 295 E canterbury@fibrenew.co.nz W fibrenew.co.nz/fibrenew-franchising/

Fifo Capital

Financial Services

$39,500

Fifo Capital franchisees provide working capital funding for small businesses. An excellent return on funds invested. We have a number of options for entry into the Fifo Capital business for franchisees, all with excellent income earning opportunities.

12 16

Nigel Thomson P 0-9-302 0949 E info@fifocapital.co.nz W fifocapital.co.nz

Fix It Building Services

Home & Building

$5,000

This franchise takes care of everything from building repairs to renovation and additions.

11 11

P 0-9-566 0297

Flex Fitness

Health & Fitness

$300,000$650,000

Flex Fitness is a New Zealand owned and operated 24-hour gym franchise.

14 14

P 0-7-850 5556

Flip Out New Zealand

Leisure & Education

$500,000

Flip Out is one of the world’s largest and most successful trampoline arenas. Business is thriving in New Zealand and we are seeking active individuals to join the hugely successful franchise and enjoy the benefits of a proven and effective business.

8 30

Kyle Dickinson M 021 671 314 E franchise@flipout.co.nz W flipout.co.nz

Flo2Cash

Financial Services

$90,000

Unique opportunity for outstanding salespeople to become a part of the technology revolution.

New New

P 0800 356 222

Flooring Design

Home & Building

$90,000

Retail flooring shops. Franchisees come from within the industry, such as carpet and vinyl installers, with others from widely varying backgrounds. Full training, excellent systems and great support from a wide supplier base. Centralised systems create efficiencies and as a result, a profitable business model.

10 10

Alan Jackson M 027 220 3762 E alan@flooringdesign.co.nz W flooringdesign.co.nz

Retail

$200,000

Need a passion for fashion and the desire to own your own business.

19 19

M 021 934 080

Home Services

$32,000

Timing is everything! Aged care and community services are a rapidly growing business. With the population of New Zealanders aged 65 plus projected to double in the next 25 years there has never been a better time to own a Freedom Companion Driving franchise.

17 17

Joanne Bush P 0800 333 499 E franchises@freedomdrivers.co.nz W freedomdrivers.co.nz

Fritz’s Wieners

Food & Beverage

$80,000

Exclusive bratwurst sausages, roller grilled and served in a fresh baguette bun with sauerkraut, 20 onions and condiments. Excellent return on investment. 21

Angie Stenning P 0-3-789 5078 E angie@fritzswieners.co.nz W fritzswieners.co.nz

Generation Homes

Home & Building

P.O.A

We build houses for clients all over New Zealand for a fixed price and on a time guarantee.

14 14

M 0274 908 399

Giggle Entertainment Network

Business & Commercial

$200,000$350,000

Giggle boasts over 1,000 locations with over 1,000,000 people p/w past our screens.

15 15

P 0-6-355 3480

Home Services

$24,000

Green Acres was founded in 1991, and is proudly NZ owned and operated. With 25 years’ 550 experience we are one of the longest running New Zealand owned franchise systems. We have 550 over 650 franchisees and we’re still growing. Lawn and garden franchises for sale now.

Mitchell Cooper P 0800 692 643 E mitchell@greenacres.co.nz W joingreenacres.co.nz

Grime Off Now

Home Services

$59,950

Grime Off now provide residential and commercial washing and insect control.

2 2

M 027 278 8813

GroutPro

Home & Building

$49,950

GroutPro are a multi award-winning franchise. Earn $2,000+ per week in one of the hottest sectors in the home improvement industry today. This is your chance to join an established, and very successful, industry-leading franchise group.

42 75

Duane Moul M 022 477 6477 E duane.m@theprogroup.co.nz W deckandfencepro.co.nz

Guthrie Bowron

Retail

$250,000$300,000

The number one home decorating franchise in New Zealand, specialising in paint, wallpaper, custom-made curtains and blinds, flooring and decorating tools. Franchisees benefit from an established name, a strong support system, central purchasing negotiation and active national advertising campaigns.

45 45

Alan Heatlie P 0-9-306 1040 E alan@guthriebowron.co.nz W guthriebowron.co.nz

Habitual Fix

Food & Beverage

$180,000$200,000

New Zealand’s freshest food fix – salads, sandwiches, wraps and smoothies.

15 15

P 0-9-378 4158

Hardy’s Health Stores

Health & Beauty

$300,000

New Zealand’s leading natural health franchise.

11 11

P 0-7-838 3274

Harrisons Carpet

Home & Building

$80,000

New Zealand’s number one mobile carpet franchise. They offer a range of quality floor coverings, and as the largest carpet retailer in the world, they are able to negotiate the best prices. Unique opportunities for motivated individuals to purchase one of NZ’s best franchise systems.

50 1800

P 0800 421 001 E enquire@hah.co.nz W harrisonscarpet.co.nz

Harrisons Curtains & Blinds

Home & Building

$70,000

Own your own interior design business. Fully supported franchise opportunity available from 3 Harrisons Curtains & Blinds. We are now looking for individuals with a natural sense of flair and 3 style who are considering owning their own business, backed by an iconic Kiwi owned brand.

Dan Harrison P 0800 102 004 E enquire@hah.co.nz W harrisonscurtains.co.nz

Harrisons Energy Solutions

Home & Building

P.O.A

Due to significant market growth and demand, Harrisons Energy Solutions are looking for the best of the best sales professionals. People who are considering owning and managing their own business in order to earn greater returns and rewards. Kiwi-owned business and proud of it.

Phil Harrison P 0-9-488 4700 E join@harrisonsathome.co.nz W harrisonsenergy.co.nz

Health Smart Heat Pumps

Home Services

$13,000

Specialist heat pump cleaning and sanitising system.

2 2

P 0-3-377 5441

Hell

Food & Beverage

$200,000

A brand with attitude that cannot be missed. Our damned fine gourmet menu, coupled with sophisticated systems and support, make this a wicked opportunity. Hell is looking for new franchisees with a passion for our brand and a willingness to learn. Opportunities available nationwide.

64 70

Ben Cumming M 027 364 2431 E franchise@hell.co.nz W hellpizza.co.nz

helloworld

Retail

$100,000

Seeking business-savvy people with customer service excellence and a passion for travel.

67 1600+

P 0-9-307 1888

Highmark Homes

Home & Building

$35,000

Highmark Homes was established in the 1960’s and continues to offer quality, yet affordable homes. Building on this success, we are now looking for experienced candidates nationwide. Joining our brand gives you access to proven systems, central office support and our team of designers and quantity surveyors.

6 6

Ryan Hunt P 0-7-574 1956 E ryan@highmarkhomes.co.nz W highmarkhomes.co.nz

Home & Building

$32,000

New Zealand’s first choice for professional home maintenance, building and renovation services. Hire-A-Hubby has the distinct advantage of being the only franchise that offers a complete home maintenance and building service that’s professional and totally customer focused.

60 60

Mitchell Cooper P 0-9-845 2640 E mitchell@hireahubby.co.nz W joinhireahubby.co.nz

Hire A Maid

Home Services

$15,000 $35,000

Hire a Maid is an experienced, fully supported and professional provider of high quality home and commercial cleaning services. We are seeking motivated franchise owners who have the drive to provide exceptional services to their clients and be your own boss.

35 0

Lily Lopez M 021 223 5553 E lili@hire-a-maid.co.nz W hire-a-maid.co.nz/register

Hollywood Bakery Espresso

Food & Beverage

P.O.A

With more than 40 outlets throughout the Auckland region, Hollywood Bakery Espresso is by far the largest and still the fastest growing café chain. For more than 16 years, Hollywood Bakery has been providing great service, great food, great coffee and great prices.

HomeTech Solatube

Home & Building

$25,000

Become a HomeTech licensee and join a nationwide network of accredited installers.

19 19

P 0800 466 383

HRV Ventilation

Home & Building

$350,000

Become part of the change at HRV. Certified HRV ventilation franchise opportunities available.

20 23

P 0800 478 123

Footloose Shoes Freedom Companion Driving Services

Green Acres Franchise Group

Hire-A-Hubby

72

58

74

Matthew Brown M 021 471 776 E hollywoodbakery.matthew@gmail.com W hollywoodbakery.co.nz

If you’re just starting in franchising, talk to someone who isn’t. Search the Westpac Directory of Franchising at www.franchise.co.nz

79


FANZ

description

number in NZ, globally

industry

investment from

company

page number

H-L franchise and business opportunities get more information

Humitech

Business & Commercial

$90,825

Simple, effective panels to reduce commercial chilling costs and improve performance.

12 12

P 0800 486 434

Installed

Business & Commercial

P.O.A

Offering a range of home services including insulation, garage carpet and meth testing.

6 6

P 0800 29 29 99

InXpress

Business & Commercial

$29,500

Global courier and freight sales consulting franchise.

200 2

P 0-3-322 5634

Jamaica Blue

Food & Beverage

$370,000

Grow from strength to strength with your very own Jamaica Blue franchise. Proven systems, our world class training facility and commitment to field support will guide you every step of the way. Opportunities available throughout New Zealand.

6 134

Garry Croft P 0-9-377 1901 E garry@foodco.co.nz W jamaicablue.co.nz

Jani-King

Business & Commercial

$22,000

Jani-King is known as the world’s number one commercial cleaning franchise company 360 providing full operational sales administration support for franchisees. There has only been one 13K+ name to turn to for quality and value in the commercial cleaning services - Jani-King, the king of clean.

Tracy Brown P 0800 526 454 E reception@janiking.co.nz W janiking.co.nz/franchisees

Jellybeans Music

Leisure & Education

$25,000

A fantastic opportunity for those passionate about music education and who want a work/life balance.

New 30+

P 0800 754 372

Jesters Pies

Food & Beverage

$220,000

Jesters New Zealand is set to follow on from the success in Australia. This is your chance to get in on the ground floor of an exciting growth area in the New Zealand market with a well proven system.

18 50+

Grant Rawlinson P 0-9-557 3057 M 021 274 4050 E grant@jesters-pies.co.nz W jesters-pies.co.nz

Jet Cleaning Services

Business & Commercial

$50,000$120,000

Jet Cleaning Services is one of New Zealand’s leading cleaning companies with specialist commercial cleaning crews throughout the country. Jet Cleaning is looking for highly motivated franchise teams to operate at some of our prestigious customers’ sites across greater Auckland, Hamilton, Wellington and Queenstown.

27 27

Danielle Scott P 0-9-302 1536 E danielles@jetcleaning.co.nz W jetcleaning.co.nz

Jim’s Building Inspections

26

Home & Building

$65,000$75,000

Jim’s Building Inspections has just launched in NZ. The growth in building and the turnover of homes is driving a need for proper building inspections, meaning a lot of work for new franchisees. Getting in early will mean a great choice of territories too.

New 100+

Cornelius Strydom M 021 502 364 E cornelius@jimsbuildinginspections.co.nz W jimsbuildinginspections.co.nz

Jim’s Cleaning

50

Home Services

$30,000

Nothing could be easier than owning your own franchise business with Jim’s. In one easy step, we provide you with all the equipment, training and ongoing support you need to ensure your success. Specialised cleaning businesses for sale across all areas of New Zealand.

14 400

Tracey Jones M 021 343 445 E tracey.jones@jimscleaning.co.nz W www.jimscleaning.co.nz

Jim’s Dog Wash

26

Home Services

$32,000

Opportunity for dog lovers to make a great income in your own business. One of the biggest franchise brands in New Zealand for the smallest price! Work your own hours, take control of your lifestyle and have fun with the support of Jim’s Group.

3 69

Angela Anderson P 0800 454 654 M 0274 490 448 E angela.anderson@jimsdogwash.co.nz W jimsdogwash.co.nz

Jim’s Mowing

26, Home Services 27

$20,000

Mowing/gardening franchise opportunity. Want more flexibility to achieve a better work life balance? Seeking self-motivated people who wish to succeed in running their own business. We provide help and assistance every step of the way to help them build successful businesses.

7 3000+

Rod Skelton P 0800 454 654 E chchadmin@jimsmowing.net.nz W jimsmowing.co.nz

Jim’s Test & Tag / Jim’s Fire Safety

32

Business & Commercial

$75,000

The leading provider of electrical testing and tagging services. Are you ready to be a part of this 35 highly successful brand and create a new future for yourself? Jim’s Test & Tag gives you the 185 training, support and systems you need to succeed.

Peter Mahon P 0800 454 654 E info@jimstestandtag.co.nz W jimstestandtag.co.nz

Jim’s Trees & Stump Removal

26

Home Services

$40,000

Becoming your own boss is easier than you might think! We’re offering the chance to become part of the nationally recognised Jim’s brand through Jim’s Trees & Stump Removal. 8 Auckland plus several North Island territories available. Includes full business and systems training.

7 40+

Brendon Jones P 0800 248 733 M 021 818 926 E brendon@jimstrees.co.nz W jimstrees.co.nz

Jumping Beans International

Leisure & Education

$40,000 $45,000

Leading edge, fun physical skills programme for children 0 to 6.

6 7

P 0-9-475 9204

Just Cabins

Home & Building

$450,000

Just Cabins provides portable cabins for rent which are just perfect as sleepouts, extra room, portable office, or as storage at your home or business. Long-term cabin rentals provide a passive income, excellent growth and are easily run by one person part-time.

46 46

Fenton Peterken P 0-9-889 8776 E fenton@justcabins.co.nz W justcabins.co.nz

Just Cuts

Health & Beauty

$100,000$200,000

Just Cuts offers over 20 years in franchise ownership support, so they are not the ‘new kids on the block’. They offer a genuine business system that allows owners who have little or no experience in hairdressing, the chance to become successful business owners.

24 205

Maree Magdas P 0061 2 9527 5444 E maree@justcuts.com W justcuts.com

Kelly Club

Leisure & Education

$25,000

We offer you an opportunity to own your own business and make a real difference in children’s 42 lives. Running before and after-school care, and holiday programmes kids just love. Our simple 47 franchise model is easy to understand and we provide full training and support.

Daniel Gerrard P 0-9-427 9377 M 021 409 628 E daniel@kellyclubs.co.nz W kellysports.co.nz

Leisure & Education

$30,000

Giving kids a sporting chance. In-school curriculum, after school academy programmes, school sports days. Education outside of the classroom. Before and after-school care holiday programmes. We are looking for people who have a passion for kids and sport.

35 65

Daniel Gerrard P 0-9-427 9377 M 021 409 628 E daniel@kellysports.co.nz W kellysports.co.nz

Kinetic Electrical

Home & Building

P.O.A

Professionally planned franchise system, fully documented to help you work smarter not harder to reach full potential of your company’s experience and expertise. Kinetic Electrical is a franchise for owners of existing electrical contracting companies with a passion to grow their business.

15 15

Vicki Bambry M 0274 852 010 E vicki@kinetic-electric.co.nz W kinetic-electric.co.nz

Kitchen Studio

Home & Building

$150,000

New Zealand’s kitchen design specialists. Designing and installing custom-made kitchens throughout New Zealand since 1984. Enquire now for details of what location may suit. Join a motivated, professional, well established franchise network.

16 16

Simon Harkness P 0-9-815 3000 E simon@kitchenstudio.co.nz W kitchenstudio.co.nz

Kiwikrane

Leisure

$50,000

New Zealand’s crane amusement machine franchise. These stand-alone machines contain 51 soft-toys, chocolate and jewellery. Franchisees enjoy part-time, flexible work and operate 163 machines in an exclusive territory. The Kiwikrane franchise also provides advice on how best to locate and operate machines successfully.

Cliff Hopkins M 021 410 009 E cliff@kiwikrane.co.nz W kiwikrane.co.nz

Kowhai Roof Coatings

Home & Building

$20,000

The Kowhai guys have been restoring and recoating roofs in most regions of NZ since the 1980’s. We have a proven and exclusive Kowhai coating system. Experience in roofing or coating systems required. Limited number of areas available now for suitable candidates.

19 19

P 0-9-636 1357 E info@kowhairoofs.co.nz W kowhairoofs.co.nz

La Porchetta

Food & Beverage

$400,000

Join the largest Italian restaurant chain in Australia and New Zealand. You will love taking part in serving our guests quality Italian food, to order, using fresh ingredients. We are looking for passionate individuals with a strong work ethic and drive to join our family.

7 60

Brendan Flanagan P 0061 3 9460 6700 E franchising@laporchetta.co.nz W laporchetta.co.nz

Landmark Homes

Home & Building

$50,000

Landmark Homes is recognised as an industry leader in top quality, new home design and construction. We are searching for highly driven and motivated people (preferably with building industry knowledge) to join our growing franchise network throughout New Zealand.

14 14

Paul Clarke P 0-7-578 2295 E info@landmarkhomes.co.nz W landmarkhomes.co.nz

Laser Electrical

Home & Building

$30,000

Our multi award-winning Laser Electrical and Plumbing groups have experienced phenomenal growth over the last 10 years. Laser group’s market leadership position has been earned through innovation, planning, use of quality systems and attention to providing the highest levels of customer service.

56 131

Scott Carr P 0-9-820 3800 E s.carr@lasergroup.co.nz W laserelectrical.co.nz

Laser Plumbing

Home & Building

$30,000

Our multi award-winning Laser Electrical and Plumbing groups have experienced phenomenal growth over the last 10 years. Laser group’s market leadership position has been earned through innovation, planning, use of quality systems and attention to providing the highest levels of customer service.

36 69

Scott Carr P 0-9-820 3800 E s.carr@lasergroup.co.nz W laserplumbing.co.nz

Latitude Homes

Home & Building

$50,000$150,000

A business opportunity that puts you in control of your future with proven financial rewards.

7 7

M 021 614 360

LCF Fun Languages NZ

Leisure & Education

$1,500

Fun Languages NZ is a kids language club franchise. We offer language clubs for children in childcare centres and schools. Business support and teaching resources for French, Spanish, English, Mandarin, Italian and German. Just want to run your own business and recruit tutors? Training provided.

7 5000+

Helen Fleming P 0800 386 000 M 027 717 1284 E helen@lcfclubs.co.nz W lcfclubs.co.nz

Leadership Management

Business & Commercial

$75,000

LMA licensees deliver a process that provides skill and competency development.

6 44+

P 0800 333 270

Kelly Sports

80

56

Westpac Directory of Franchising and Advertiser Index Franchise New Zealand Autumn 2018 Year 27 Issue 01


FANZ

description

number in NZ, globally

industry

investment from

company

page number

franchise and business opportunities L-N get more information

Life Maid Easy

Home Services

$30,000$50,000

Are you looking to secure a guaranteed income and grow with a vibrant company? This is your opportunity to run your own business and be part of one of New Zealand’s fastest-growing residential cleaning companies. Visit our website for more information.

2 2

Steven Ngov P 0-9-909 6560 M 021 102 2150 E steven@lifemaideasy.co.nz W lifemaideasy.co.nz

LJS Seafood Restaurants

Food & Beverage

$190,000$230,000

The largest NZ fast-food chain of fish and chips and associated seafood stores.

13 13

Ben Frewin P 0-9-530 8090 E ben@ljs.co.nz W ljs.co.nz

Lone Star

Food & Beverage

$600,000

Lone Star is New Zealand’s largest restaurant & bar concept.

26 26

P 0-3-374 3208

Mad Butcher

Food & Beverage

$350,000$450,000

One of New Zealand’s best-known home grown franchises, trading since 1971.

36 38

P 0-9-531 5910

Food & Beverage

$290,000

Majestic Tea Bar is a premium new café concept that aims to revolutionise not just the tea culture but also the café market across New Zealand. No direct competition, high margin products, full training provided, no experience required.

3 3

Chris Cox P 0-3-423 9760 M 021 521 669 E franchise@majesticteabar.com W majesticteabar.com

McDonald’s

Food & Beverage

$750,000

The world’s market leader in the quick service restaurant industry.

165 31000

P 0-9-539 4300

Meticulous Home Services

Home Services

$13,000

Full range of internal and external cleaning services. Exclusive territory for franchisees.

35 35

P 0-9-442 2004

Mexicali Fresh

Food & Beverage

$375,000

Mexicali Fresh has led the Mexican evolution in NZ since 2005. With giant American-style burritos and Mexican beer in a colourful, casual atmosphere. We are recruiting energetic, enthusiastic franchisees with a passion for great food and excellent customer service for our turnkey restaurants.

17 17

Tyler Kerlin P 0-9-973 4559 E info@mexicalifresh.co.nz W mexicalifresh.co.nz

Midas Car Care

Auto Services

P.O.A

New Zealand’s premier specialist automotive servicing franchise.

26 3000

P 0-9-415 0234

Mike Pero Mortgages

Financial Services

$20,000

Our franchisees work in partnership with the franchisor to build a rewarding business.

42 42

P 0800 500 123

Mike Pero Real Estate

Real Estate

$65,000

Mike Pero Real Estate is a home-grown New Zealand company that takes great pride in delivering the highest level of customer service possible to its clients. 20 years’ experience helping homebuyers with their home loans. We now provide full real estate services with lower fees.

Home & Building

$75,000

Established over twelve years ago, Milestone Homes has common ownership and support systems with New Zealand’s most awarded and trusted home builder, Jennian Homes. This long-standing relationship ensures Milestone Homes has the structure, systems, processes, and experience to deliver a proven and smart franchisee package nationwide.

New New

David Newport M 021 304 414 E david.newport@switchbusiness.co.nz W milestonehomes.co.nz

Mini Tankers

Business & Commercial

$75,000 $150,000

The only onsite refuelling franchise in New Zealand.

19 124

P 0-9-622 2671

Mister Minit

Retail

P.O.A

Mister Minit is a shoe repair, key cutting and engraving business franchise specialising in corporate giftware solutions. Franchises are currently open to existing Mister Minit team members who are fully trained in the business. Franchise opportunities will be available in the future for outside recruitment.

37 238

Maria Walton P 0061 2 9521 9100 E maria.walton@minit.com.au W minit.com.au

Mobile Car Valet

Auto Services

$25,000

Mobile car valet covering all your valet needs.

2 2

M 0274 973 955

Mobile Hand Car & Marine Grooming

Auto Services

$10,000 $39,000

Mobile grooming and detailing service providing professional, environmentally friendly valet services.

17 17

P 0800 803 737

Mr Green Auckland

Home Services

$20,000

Commercial cleaning. New franchise opportunities available in the Auckland area.

22 22

P 0-9-414 6949

Mr Plumber

Home & Building

$35,000

Franchise system designed to deliver quality plumbing, roofing, drainlaying and gasfitting services.

10 10

P 0800 677 586

Mr Rental

Home & Building

$600,000

Franchisees benefit from a highly profitable and stable cash flow business model and the support of a proven training and support programme that has seen the success of over 65 franchisees. Make the sale once and get paid over and over again.

17 89

Rachel Lum-On P 0-9-950 4145 E rachel.lum-on@mrrental.co.nz W mrrental.co.nz

Mr Whippy

Food & Beverage

$95,000

Mr Whippy is looking for new owner/operators nationwide.

40 40

P 0800 494 4779

Mr Woo Sushi

Food & Beverage

$49,000

New Zealand’s first mobile sushi franchise.

2 2

M 021 781 250

Muffin Break

Food & Beverage

$320,000

Muffin Break is a unique specialty bakery/café retail system that operates throughout Australasia and is growing rapidly in the UK. Muffin Break has developed numerous product recipes since its introduction and continues to innovate with products.

39 284

Garry Croft P 0-9-377 1901 E garry@foodco.co.nz W muffinbreak.co.nz

Home & Building

$100,000 - Navigation Homes are offering an opportunity to own and drive a profitable house-building $350,000 franchise. Proven management system, support and the best national supply prices. Extensive range of designs to offer customers. Get off the tools and build an asset for yourself.

12 12

Aaron Hall P 0-9-298 5972 M 021 477 506 E aaron@navigationhomes.co.nz W navigationhomes.co.nz

Nettl

Business & Commercial

P.O.A

Nettl is an online communications and web studio franchise from the UK.

3 3

M 021 820 474

New York Deli

Food & Beverage

$350,000

New York Deli is a superior, licensed, sandwich outlet.

2 2

M 021 955 834

New Zealand Natural Ice Cream

Food & Beverage

$250,000

New Zealand Natural Ice Cream is a global franchise network based out of Auckland, New Zealand. It operates as the franchisor of the New Zealand Natural ice cream, frozen yoghurt, smoothie and juice parlours. Level of investment depending on store location and turnover history.

13 500+

David Foreman P 0-9-274 6168 E davidf@icecream.co.nz W icecream.co.nz

Night ’n Day Foodstores

Retail

$400,000

The Night ‘n Day Foodstore franchise, NZ’s leading convenience store chain offers group buying, uniformed image, full staff training, assistance in shop layouts and designs, profit reports, assistance with staff rosters, group advertising and full accounting facilities. New sites and conversion of existing businesses welcomed.

49 49

Paul Thompson P 0-3-477 2340 M 021 999 866 E paul@nightnday.co.nz W nightnday.co.nz

Novus

Auto Services

P.O.A

Auto glass opportunity offers a proven business model with a nationally recognised brand.

58 2100

P 0-3-366 0870

Number Nurses

Financial Services

$15,000

We are looking for accountants, CAs, CPAs, and Bookkeepers to become part of our Number Nurses team. We offer Xero and Xero add-on set up, training & management, along with a range of bookkeeping services.

3 3

Kirsten Hawke P 0800 937 668 E hello@numbernurses.com W numbernurses.com

Education

$62,000

Are you passionate about teaching but have had enough of the long hours and extra paperwork? A proven after-school tuition provider delivering exceptional results, is looking for education experts to join our expanding franchise network.

27 70

Sarah Simons P 0-9-522 0800 E nzho@numberworks.com W numberworks.com

Home & Building

$95,000

Specialists in sanding and coating of timber floors. Supply and lay new timber floors.

7 7

P 0800 272 888

Home & Building

$19,000$39,000

Reputable and trusted house inspection business providing quality pre-purchase surveys including multiple income streams from other revenue sources such as drug testing and safe and sanitary reports. Strong branding with nationwide opportunities. Best suited to building industry applicants including designers and carpenters.

7 7

Chelsea Mooyman P 0800 487 884 M 027 774 4147 E chelsea@nzhousesurveys.co.nz W nzhousesurveys.co.nz/franchise

Majestic Tea Bar Espresso & Chocolate

Milestone Homes

Navigation Homes

NumberWorks’n Words

12

28

72

9

NZ Floor Sanding Co NZ House Surveys

62

Mike Pero P 0-3-365 9007 E mike@pero.co.nz W mikepero.com

Why learn from your mistakes when you can learn from our nationwide franchise banking specialists? Search the Westpac Directory of Franchising at www.franchise.co.nz

81


FANZ

description

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O-Q franchise and business opportunities get more information

Oil Changers

Auto Services

$150,000$250,000

Oil Changers provide the convenience of drive-through vehicle servicing. No previous experience required.

11 29

P 0-3-343 6080

Oporto New Zealand

Food & Beverage

$350,000

Oporto chicken and burgers are big on taste and even bigger on value. With 20+ years in Australia and close to 15 years in New Zealand we have a proven franchise model. Seeking committed, energetic, entrepreneurs wanting to establish a long-term business with a strong brand.

11 160

Lawrence Pereira P 0508 676 786 E info@oporto.co.nz W oporto.co.nz

OPSM

Retail

P.O.A

You don’t need to be an optometrist to enjoy the amazing financial and professional rewards of running your own optical business, you just need strong business acumen and the ability to motivate and manage a sales team.

Orenda Clean

Home Services

$25,000

Shaking up the cleaning industry with in-field apps, checklists, and communication. Rapidly growing in the Auckland and Wellington regions and expanding nationally very soon. Full training provided. Long standing satisfied clients. No sales, weekly payments and a team that wants to look after you.

2 2

Andrew Lawrence M 027 477 7333 E andrew@orenda.co.nz W orendaclean.co.nz

Retail

$210,000

Pack & Send move and handle freight through a network of retail stores with a professional custom packaging service. A one-stop shop for customers. We are looking to grant franchises to those who are prepared to embrace our ‘no limits’ culture.

14 120

Matthew Everest P 0-3-982 7252 M 021 799 783 E matthew.everest@packsend.co.nz W packsend.co.nz

Palmers

Retail

$350,000

New Zealand’s largest garden centre chain established in 1958. Offering both metropolitan and provincial opportunities. Serious business opportunity for motivated and capable business person/s. Growth market.

18 18

Murray Belcher P 0-9-451 9102 M 021 483 500 E murray.belcher@ufsltd.co.nz W palmers.co.nz

Palmers Planet

Retail

$1,000,000

Like the truly successful garden centres of Europe, Palmers Planet is as much a destination as 3 a retail store. This is an amazing opportunity for a business person looking for a new challenge. 3

Murray Belcher P 0-9-451 9102 M 021 483 500 E murray.belcher@ufsltd.co.nz W palmers.co.nz

Paper Plus

Retail

$400,000

The largest stationery and books franchise system in Australasia. Committed to remaining a vibrant and integral part of the New Zealand retail scene. Grown to over 120 member stores nationwide with a combined sales turnover approaching $150 million a year and it’s still growing.

Andy Kean P 0-9-261 0705 E andy.kean@paperplusgroup.co.nz W paperplus.co.nz

Pack & Send New Zealand

34

Rachna Singh E rachna.singh@luxottica.com.au W opsm.co.nz/franchises

120 120

Para Rubber

55

Retail

$150,000$250,000

Iconic New Zealand retailer dominating the market in sales of foam, foam mattresses, rubber, 9 including mats, and the iconic Para pools. Looking for energetic people serious about customer 9 service and looking to build a successful business through determination. Opportunities available in West & South Auckland.

Vaughan Moss P 0-9-532 8794 M 021 921 976 E vmoss@pararubber.co.nz W pararubber.co.nz

Paramount Services

25

Business & Commercial

$30,000

General commercial cleaning plus specialised franchises: car park scrubbing, carpet cleaning, 140+ decontamination, office equipment sanitising, pest control, window cleaning. Established in 140+ 1979, Paramount Services has 140 franchisees servicing 1,240 clients including 320 bank branches, retailers, shopping centres, ports, cinemas, rest-homes, student hostels and schools.

Paul Brown / Bill Wu P 0-9-376 7850 M 027 543 0233 E pbrown@paraserve.com W service-is-paramount.co.nz

Pegasus Rental Cars

Leisure & Transport

$20,000$65,000

Pegasus Rental Cars offers the best value for money car hire in New Zealand.

24 24

P 0-9-378 7940

PinkFit

Home & Building

$30,000

Licensees work with merchant partners to provide a total insulation service to new home builders and retrofit insulation to existing homes. Licensees generally operate this business from home, employing their own staff, and operating their own vehicles. This enhances potential returns to licensees.

19 19

Ian Robertson P 0-9-525 9563 E ian.robertson@pinkbatts.co.nz W pinkfit.co.nz

Pit Stop

Auto Services

$100,000

The largest automotive service franchise in New Zealand. Pit Stop is an automotive service 50 and repair franchise which specialises in vehicle servicing, brakes, exhausts, suspension, WOF 50 checks and general auto repair.

Les Seiler P 0-9-634 3666 E less@pitstop.co.nz W pitstop.co.nz

Pita Pit

Food & Beverage

$300,000$500,000

If you thought you missed the sub-sandwich boat, the international challenger is now here.

75 534

M 021 355 880

Pizza Hut

Food & Beverage

$550,000

Established pizza chain with occasional resale opportunities available.

84 1000+

P 0-9-525 8700

Home & Building

$100,000

Platinum Homes are one of the top 10 national building companies in NZ and are one of the fastest, stable growth companies. Seeking financially stable people with the desire and drive to succeed to complete our licensee network, ideally from a construction or sales background.

17 17

Lloyd Cloughley M 021 535 031 E lloyd.cloughley@platinumhomes.co.nz W platinumhomes.co.nz

Plumb’In

Home & Building

$215,000$260,000

A specialist retail franchise selling high quality new products as well as seconds, end of lines, clearance product from leading suppliers. Franchisees benefit from an established name, full training, and operations manual.

6 6

Walter Goldstein P 0-9-448 0280 E walterg@chesgo.co.nz W plumbin.co.nz

Podium Podiatry & Footwear

Retail

$275,000

Recognised and respected as New Zealand’s leading provider of podiatry and footwear solutions.

4 4

P 0-7-307 2271

Poolwerx Corporation

Home Services

$95,000

Award-winning opportunity. Well known for its creation of the world’s first structured career path 2 in franchising enabling franchisees the opportunity to grow within a single marketing area or 250+ develop a million dollar business with multiple vehicles, retail stores and marketing areas.

P 0800 888 031 E joinourteam@poolwerx.com.au W poolwerx.co.nz

PostShop Kiwibank

Retail

P.O.A

One of NZ’s largest retail networks. We offer our communities a wide range of postal and financial services for personal and business needs.

300+

P 0-9-336 8284 E franchiseselection@nzpost.co.nz W nzpost.co.nz

Prep & Paint Pro

Home & Building

$39,950

Prep and Paint Pro is a division of The Pro Group, New Zealand’s preferred specialist home service franchise group. We are looking for motivated customer-focused people to join our rapidly expanding team. Download your free info pack at www.prepandpaintpro.co.nz. Franchises available nationwide.

5 5

Duane Moul M 022 477 6477 E duane.m@theprogroup.co.nz W prepandpaintpro.co.nz

Prestige Home Groomers

Business & Commercial

$30,000$60,000

Prestige Home Groomers is a New Zealand-owned company. We are a cleaning business with a difference. We predominately clean only new premises cutting out the dirty work. The worst mess you will have to deal with is sawdust shavings and dusty windows.

8 8

Kim Buttery P 0-7-543 2090 E kim@homegroomers.co.nz W homegroomers.co.nz

Printing.com

Business & Commercial

$25,000

At printing.com we don’t just print. We make marketing collateral for our customers to make them successful. We build websites that take our client relationships well above our competitors. We take pride in placing our partners at the forefront of change in our industry.

40 300

Cade Ogle P 0-4-232-7653 E cade.ogle@printing.com W printing.com

Property InDepth

Home & Building

$45,000

Residential valuation franchise, customised technology, fantastic business systems, awesome team, nationwide aspirations.

10 10

M 021 477 673

Property Service Franchise Systems

Home & Building

$16,500

Commercial cleaning business. Wide range of property services. Waikato based business with opportunities in Hamilton city, Cambridge, Te Kuiti and Te Awamutu. Basic package starts at $16,500 +gst. Enquiries welcome.

19 19

Michael Parton P 0-7-847 2737 E michael@psu.co.nz W psu.co.nz/franchisee

Propertyscouts Property Management

Business & Commercial

$20,000

Propertyscouts is 100% dedicated to end-to-end property management. With our first franchise 12 launched in March 2016, we now have operations up and running nationwide. There are still 12 opportunities available in many locations throughout New Zealand.

Milton Weir M 027 222 7209 E franchises@propertyscouts.co.nz W propertyscouts.co.nz

Provender NZ

Food & Beverage

$125,000$240,000

Provides snacks and drinks directly to the workplace. Earn a great hourly rate.

80+ 80+

P 0800 661 663

Provista Balustrade Systems

Home & Building

$25,000

Provista Balustrade Systems are New Zealand’s leading independent balustrade and pool fencing specialist.

18 18

M 0275 961 264

Business & Commercial

$12,500

Specialist residential property management. Lucrative business model with coaching and training. Be the best property manager in your region with significant points of difference. Be a part of the award-winning Pukeko team.

12 12

David Pearse M 0274 809 534 E info@pukekorentalmanagers.co.nz W pukekorentalmanagers.co.nz

Quest Serviced Apartments

Business & Commercial

$150,000$600,000

Quest Serviced Apartments is the market leading franchise in accommodation for primarily corporate extended stay travellers. Franchisees benefit from a high level of brand awareness, full training, and ongoing support. The Quest franchise also provide franchisees with computer systems and manuals which cover business plans.

33 150

Stephen Mansfield P 0-9-366 9680 E smansfield@questapartments.co.nz W questapartments.co.nz

Quinovic Property Management

Business & Commercial

$50,000

NZ’s preferred national residential property management service since 1988.

29 29

Jess Moore P 0-4-801 7880 E jess@quinovic.com W quinovic.co.nz

Platinum Homes

Pukeko Rental Managers

82

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Westpac Directory of Franchising and Advertiser Index Franchise New Zealand Autumn 2018 Year 27 Issue 01


Rack n Roll Ribs

get more information P 0-9-555 1492

Food & Beverage

$250,000

Easy operating systems, a proven menu and great future prospects. Exciting opportunity.

Auto Services

$250,000

RaD Car Hire, New Zealand’s longest standing locally owned vehicle rental company operating 21 since 1987. We have franchise opportunities in New Zealand and Australia, territory sales only 24 up to fully established operations. Any interest contact us directly.

Dean Hansen P 0-7-574 1490 M 021 474 724 E dean@radcarhire.co.nz W radcarhire.co.nz

Rainaway Spouting on the Spot

Home & Building

$45,000

A re-spouting service franchise for new and existing homes and commercial buildings. Spouting 10 on the Spot is the perfect franchise opportunity for franchisees who want to keep their hands on 10 the tools. Become a Rainaway Spouting-on-the-Spot franchisee today.

P 0-9-265 2147 E info@rainaway.co.nz W spoutingonthespot.co.nz

Rapid Lawn

Home & Building

$45,000

Hydroseeding erosion control roll-out turf. Niche industry. Self-motivated, interested in working outdoors? Great opportunities available throughout New Zealand. Full training. Ongoing support given.

5 5

Peter Harvey M 021 365 296 E admin@rapidlawn.co.nz W rapidlawn.co.nz

RE/MAX

Business & Commercial

$20,000

If you are looking to start your own real estate business, RE/MAX has opportunities available right now. RE/MAX provides you with the essential tools, services and support to help you achieve your goals and pursue the life you want. Call us today.

31 7000

Corinna Mansell P 0-9-309 8478 E cmansell@remax.co.nz W why.remax.co.nz/franchise-opportunities/

Realsure The House Inspectors

Home & Building

$35,000

The only ISO9001 registered, industry assessed brand providing Standard-compliant property reports.

7 7

P 0508 732 578

realtyRETURNS The Property Improvers

Home & Building

$55,000

Renovation agency specialising in arranging and managing residential renovation projects.

5 5

P 0-9-213 7993

Refresh Renovations

Business & Commercial

$150,000

Refresh is New Zealand’s leading renovation business. Refresh is primarily a sales and marketing oriented franchise. We’re looking for business oriented people to join Refresh as franchisees, not builders. If you’re thinking about your next career move or business opportunity, you should consider Refresh.

30 37

P 0800 33 60 33 E info@refresh.co.nz W refresh.co.nz

Rent The Roo Rentals

Home Services

$75,000

Top quality and affordable home appliances to rent with agreement plans.

1 60+

P 0800 137 661

Rented Property Management

Business & Commercial

$20,000

Property management specialists. Industry leading systems that give you the time to grow.

7 7

M 021 180 1875

Robert Harris Coffee Roasters

Food & Beverage

$450,000

Robert Harris Coffee Roasters operates New Zealand’s best-known and largest chain of retail café franchises. Proven success in cities and provincial centres nationwide. We look for team players with high standards in presentation who have customer service experience plus the ability to work with people.

45 45

Rod De Lisle P 0800 426 333 E rodd@robertharriscafe.co.nz W robertharriscafe.co.nz

Health & Beauty

$100,000

Rodney Wayne is the largest hairdressing franchise in New Zealand. You do not have to be a hairdresser but strong people skills combined with an excellent customer focus and management expertise are all critical elements that make a successful Rodney Wayne franchisee.

51+ 51+

Julie Evans P 0-9-358 4644 E admin@rodneywayne.co.nz W rodneywayne.co.nz

Rugbytots NZ

Leisure & Education

$7,500

Seeking active and passionate people to run their own Rugbytots franchise. Rugbytots is the world’s favourite rugby play programme for 2 - 7 year olds. Following the success in Auckland, there is high demand for Rugbytots classes in areas across New Zealand. A fun and rewarding business opportunity.

5 50+

Annalie Marks M 021 878 335 E annalie@rugbytots.co.nz W rugbytots.co.nz

Saddlery Warehouse

Retail

$230,000$460,000

New Zealand’s leading equestrian retailer. Supplying all the items needed for horse and rider.

7 7

P 0-9-970 1058

Safe H2O

Home Services

$250,000

Safe H2O have revolutionised water tank cleaning with high spec nano-filtration trailer units, capable of cleaning tanks and processing unlimited volumes of water to 0.001 micron. Innovative, profitable, professional. Seeking practical people with some basic mechanical aptitude and exceptional interpersonal skills.

2 2

Tracey Meads P 0800 723 342 M 027 778 9056 E info@safeh2o.co.nz W safeh2o.co.nz

SafeTSupplies

Business & Commercial

$120,000

Custom-fitted safety supplies retail outlet on wheels.

New New

P 0-9-525 2767

Leisure & Education

$120,000

Scratchpad is a new technology learning centre with the goal to help youngsters love, use, and create opportunities with technology including coding, robotics and 3D design and printing. We are expanding, and looking for future-focused people with a passion for technology to run their own Scratchpad centre.

2 2

Vijesh Nangia P 0-9-216 9400 M 021 431 930 E franchise@scratchpad.co.nz W scratchpad.co.nz/franchise

Seal A Fridge

Home Services

$30,000 $50,000

The market leader in the replacement of commercial and domestic refrigeration seals.

4 31

P 0061 4 0847 1950

Select Home Services

Home Services

$13,000

Select Home Services (cleaning, lawn mowing and valet) offers you the opportunity to be your own boss but with the security of being part of this highly successful system. Full training and support. Initial customers provided so you have a group of customers you work with regularly. Award-winning system.

160+ 290+

Mark Gilbert P 0-9-278 4930 E markg@select.biz W select.biz

Sentinel Homes

Home & Building

$45,000

Sentinel Homes is an innovative, home building company designing premium mid-end homes. A consistent winner at New Zealand's House of the Year awards. Sentinel Homes credits its success to its outstanding customer service and dedication to quality workmanship.

7 7

Stuart Shutt P 0-9-846 5777 E stuart@sentinelhomes.co.nz W sentinelhomes.co.nz

Sew Know How

Leisure & Education

$14,000

Sewing school offering quality teaching of all aspects of home sewing.

2 2

M 0275 346 163

Shed Boss

Home & Building

$95,000

Shed Boss are suppliers of high quality steel frame buildings.

12 37

P 0-7-579 1525

Shingle Inn Café

Food & Beverage

$290,000 - Shingle Inn Café is a world-class café franchise now available in New Zealand. $450,000

New 40

P 0061 7 3399 3000

Shoe Clinic

Retail

$200,000$250,000

Shoe Clinic is NZ’s leading sports footwear retail store. Proven system.

12 12

P 0-4-499 4495

$250,000$450,000

Network of premium cafés specialising in gourmet coffee and freshly prepared food. Sierra still roasts every coffee bean with care, in their Newmarket roastery.

32 32

Murray Belcher P 0-9-451 9102 M 021 483 500 E murray.belcher@ufsltd.co.nz W sierracoffee.co.nz

RaD Car Hire

Rodney Wayne

Scratchpad

Sierra Boutique Café

8

29

13

22, Food & Beverage 65

2 2

FANZ

description

number in NZ, globally

industry

investment from

company

page number

franchise and business opportunities R-S

Signature Homes

Home & Building

$150,000

Winner of the 2016 FANZ Supreme Franchise System award, we have 34 years’ experience 11 building homes for Kiwis from 11 franchises supported by a National Office. If you have building 11 or construction management experience and are looking for your next opportunity please contact our CEO.

Paul Bull P 0-9-415 2468 E paulbull@signature.co.nz W signature.co.nz

Simply Squeezed

Food & Beverage

$50,000

Simply Squeezed is proud to boast a portfolio second to none in non-alcoholic beverages. Selling our award-winning products is fun and rewarding. Product aside, our real secret to success is driven owner operators selling and servicing over 3000 customers throughout New Zealand weekly.

40+ 40+

Andy Furmenger P 0-6-836 7066 E andy.furmenger@frucorsuntory.com W simplysqueezed.com

Leisure & Education

$34,000

Out of school care. Established 1996. Now in 100+ schools. Before school, after school and holiday programmes for primary school children. Would suit people who are looking for a change in lifestyle and who enjoy the company of children.

165 165

Chris Bartels P 0-9-576 6602 M 021 974 221 E chris@skids.co.nz W skids.co.nz

Home Services

P.O.A

Slopemowing.com offers a complete range of vegetation management services for government, local council, corporate or individual requirements. Slopemowing.com has been successfully operating its business in New Zealand for four years and has developed its franchise offering based on this success.

1 1

Xaver Fruehschuetz P 0-3-744 3114 E info@slopemowing.com W slopemowing.com

Business & Commercial

$45,000

A monthly accounting service specifically designed to provide regular support for the selfemployed and small business operators. Retail locations accelerate client base growth. Accounting qualifications not necessarily an advantage. Would suit someone with business experience and/or with sound bookkeeping knowledge and good communication skills.

53 80

Adam Parore P 0-9-378 0934 P 0800 114 722 E adam@sba.co.nz W sba.co.nz

sKids

49

Slopemowing.com

Small Business Accounting

75

Find the right franchise by starting with the right people. Search the Westpac Directory of Franchising at www.franchise.co.nz

83


FANZ

description

number in NZ, globally

industry

investment from

company

page number

S-T franchise and business opportunities get more information

Smith’s Sports Shoes

Retail

$200,000

Smith’s Sports Shoes’ biggest strength is the relationship between franchisor, franchisee and suppliers. What you can expect from the Smith’s team includes integrity, fun, and profitability. We focus on team building and provide support and training. Seeking people with vision, great attitude and communication skills.

Snap-on Tools

Auto Services

$52,000

A unique opportunity to own your own business, built on a sound foundation of almost 90 years 14 of experience. Snap-on franchisees are independent business people, controlling all aspects of 5000 their franchise and working flexible hours as needed to accomplish their personal goals.

Stacey Gilbert P 0800 762 766 E sota.franchise@snapon.com W snapontools.com.au

Snap Printing

Business & Commercial

$220,000

Award-winning business services franchise offering cutting-edge digital reproduction technology, graphic design consultancy and a range of stationery products for the business to business market. Comprehensive training for franchise owners and their staff and advertising and marketing is taken care of.

5 180

Brian Sutton P 0-9-379 0822 E bsutton@snapprinting.co.nz W snapprinting.co.nz

Spagalimis Italian Pizzeria

Food & Beverage

$250,000

Pizza, pasta, salad and dessert in a contemporary dining environment. Comprehensive training.

5 5

P 0800 113 113

Specsavers

Retail

$10,000$400,000

Specsavers New Zealand are leading optometrists and eye-care specialists.

52 1700+

Brendan Thompson P 0-9-475 0250 E brendan.thompson@specsavers.com W specsavers.com.au

Speedy Signs

Business & Commercial

$95,000

The largest signs and graphics company using the latest technology and highest quality products. We have spent time developing sound business practices and values for our organisation as we believe this is what sets us apart from other signage companies. No prior signage experience required.

25 850

Sarah Archibald P 0-9-577 4223 M 021 479 123 E fnz@businessfranchise.co.nz W businessfranchise.co.nz

Spitroast.com

Food & Beverage

$25,000$50,000

New Zealand’s iconic catering business is looking for franchisees to join our group.

4 4

M 027 442 4140

15 15

Chris Smith M 021 733 981 E chrismsmith@xtra.co.nz W smithssportsshoes.co.nz

Stihl Shop

24

Retail

$200,000

Stihl Shop is a nationwide network of independent, locally owned specialist outdoor power equipment retailers. Every Stihl Shop is operated by friendly approachable people who are passionate about outdoor power equipment. Full training and on-going support. Sites with real growth potential available across NZ.

66 66

Darryl Perkins P 0800 864 264 M 021 543 576 E careers@stihlshop.co.nz W careers.stihlshop.co.nz

Stirling Sports

66

Retail

$340,000

We play to win by delivering world-class retail experiences, inspired by sport, executed with style. Stirling Sports will provide all the training and support to build and sustain your business. Opportunities available throughout New Zealand. Retail experience is an advantage but not essential.

55 55

Geoff Young M 022 417 3127 E geoff.young@stirlingsports.co.nz W stirlingsports.co.nz

Stonewood Homes

Home & Building

$75,000

We are now expanding and seeking builders and construction entrepreneurs throughout the regions.

16 16

P 0-3-349 0010

Storage Box

Retail

$100,000

The preferred storage specialists in New Zealand, providing storage solutions to customers.

20 20

P 0-9-271 1025

Food & Beverage

$155,000

Every day thousands of coffee lovers buy a Streetwise coffee. Our designer coffee outlets have 22 become symbols of coffee perfection. We’re seeking people nationwide who love the thought 22 of selling fantastic coffees to appreciative customers. Site selection assistance, training and support is given.

Donna Ferrall M 027 552 2055 E donna@streetwisecoffee.co.nz W streetwisecoffee.co.nz

Subway

Food & Beverage

$250,000

The world’s largest quick service submarine sandwich and salad franchise.

266 46K+

W subway.co.nz/about-us/own-a-franchise

SumoSalad

Food & Beverage

$450,000

The healthy fast food alternative. Join Australia’s fastest growing franchise.

2 80+

P 0061 4 0105 5437

Sunbright Lamp Distributors

Home & Building

$26,000

Sunbright provides a mobile lighting maintenance and installation service.

13 13

P 0-9-478 9824

Super Liquor

Retail

$200,000

With 130+ branded stores throughout the country, we are represented in many local communities, delivering to them real value and true convenience. We are New Zealand’s most trusted liquor brand offering market leading terms of trade and innovative national advertising and marketing programmes.

120 120

P 0-9-523 4064 E enquiries@superliquor.co.nz W superliquor.co.nz

Super Shuttle

Business & Commercial

$115,000

Super Shuttle has grown into New Zealand’s favourite airport transfer business.

120 120

P 0-9-522 5100

Superbuild

Home & Building

$50,000

Superbuild is one of New Zealand’s largest suppliers of construction and coating systems.

9 9

P 0800 4647 8737

Swimart Pool & Spa Services

Retail

$50,000

Australasia’s most experienced chain of pool & spa specialists. Swimart commenced business in Sydney in the early 80’s and since that time has grown through the provision of expert friendly advice and superior customer service to be the market leader in the pool and spa service sector.

4 73

Alex Johnson P 0800 928 373 E alex.johnson@swimart.com.au W poolcarefranchises.com.au

TACA NZ

Business & Commercial

$65,000

Tungsten coating specialists. Supplier of hard facing services to a range of industries.

5 13

P 0061 3 8727 5000

Take Note

Retail

$300,000

Over 60 stores throughout New Zealand, all of which are locally owned and operated.

20+ 20+

P 0-9-261 0871

Tall Poppy Real Estate

Business & Commercial

$100,000

Selling residential real estate. Strong customer focus and ability to think innovatively essential.

11 11

M 027 4432 897

The Alternative Board

Business & Commercial

$83,000

The Alternative Board, a leading international franchise organisation, seeks franchisees to facilitate peer board meetings and offer executive coaching to local business owners. With a background as an executive, coach, consultant or business owner, you will help businesses achieve more profitability, productivity and personal fulfilment.

9 150+

Stephen James P 0-9-446 0963 M 021 606 934 E sjames@thealternativeboard.co.nz W thealternativeboard.co.nz

The Athlete’s Foot

Retail

$250,000

World’s leading sports footwear retailer. Exclusive fitprint technology and proven training.

10 600+

P 0-9-478 4783

The Cheesecake Shop

Food & Beverage

$200,000

The Cheesecake Shop has been one of New Zealand’s favourite cake retailers since 1995. You don’t need to be a baker, our excellent training course teaches you how in just 3 weeks. New store opportunities available in Dunedin, Hawkes Bay, Nelson, Christchurch and New Plymouth.

23 210

David Reid P 0-9-475 9634 M 021 625 555 E davidr@thecheesecakeshop.co.nz W thecheesecakeshop.co.nz

The Christmas Heirloom Company

Retail

$60,000

Providing high quality, luxurious Christmas decorations. A profitable seasonable business.

11 11

P 0-7-839 6209

Food & Beverage

$300,000$450,000

One of NZ’s largest café and restaurant franchises, The Coffee Club have a comprehensive menu and offer relaxed dining experience. Take advantage of a proven track record, great training and ongoing support. Ideal if you are passionate about people and building customer loyalty.

62 410

Alby Aniyan P 0-9-304 0008 M 021 821 440 E alby@thecoffeeclub.co.nz W thecoffeeclub.co.nz

The Interface Financial Group

Financial Services

$39,000

The Interface Financial Group provides debtor financing service to the SME business.

9 150+

P 0-9-302 7704

The Moving Box Guys

Home Services

$26,000

An affordable eco-friendly service for customers and excellent returns for franchisees.

4 4

P 0800 210 210

The NZ Manuka Egg Company

Food & Beverage

P.O.A

A taste sensation - manuka smoked bacon and egg franchise business opportunity.

3 3

P 0-3-485 9660

Auto Services

$56,705

Mobile alloy wheel repair service providing an affordable and convenient solution to the problem of repairing kerb-damaged wheels. No previous experience required. The power franchising has is in gaining a competitive edge through the sharing of knowledge and resources. We have that edge.

11 11

Alan Thomas P 0800 537 233 E enquiries@wheelmagician.co.nz W wheelmagician.co.nz

Theobroma Cafés, Lounges and Bars

Food & Beverage

$200,000$600,000

A total food and beverage concept, operating in more than 5 countries.

7 30

P 0061 3 9480 1030

Thexton Consulting Group

Business & Commercial

$15,000

Help struggling business owners to achieve success. We need like-minded people to join our 35 team as business consultants. Become self-employed in a proven model. Be part of a dynamic, 35 established team of professional business consultants whilst building your own client portfolio.

Phil Wicks P 0800 287 266 M 027 824 8809 E phil@wicksdorey.co.nz W thextonconsultinggroup.co.nz

Think Water

Retail

P.O.A

Think Water is Australasia’s leading network of independently owned irrigation water services solutions with nearly 50 stores. We specialise in the design and implementation of the most water efficient irrigation and water management programs for clients.

14 14

Liesle Corns P 0800 184 465 E liesle.corns@thinkwater.com.au W thinkwater.co.nz

Streetwise Coffee

The Coffee Club

The Wheel Magician

84

14

60

34

Westpac Directory of Franchising and Advertiser Index Franchise New Zealand Autumn 2018 Year 27 Issue 01


description

FANZ

industry

number in NZ, globally

company

investment from

page number

franchise and business opportunities T-Z get more information

Total Fitouts

Business & Commercial

$45,000

Fast growing, commercial fit-out company. Training, peer support and mentoring provided.

3 20

P 0800 348 888

Total Tools

Retail

$500,000

Australia’s leading tool retailer now expanding its network of stores in NZ.

New 50+

P 0061 9 261 1941

Touch Up Guys

Auto Services

$88,000

New Zealand’s premier mobile paint and bumper repair franchise. High quality car paint restoration services to commercial and private customers. Professional, reliable, cost effective and convenient. No industry experience required. Comprehensive training and full ongoing support provided. Great opportunities are available throughout New Zealand.

26 200

Martin Smith P 0800 759 363 M 021 721 430 E info@touchupguys.co.nz W touchupguysfranchise.co.nz

Toyworld

Retail

$200,000$500,000

Join New Zealand’s largest independent toy retailing group.

29 180

M 021 390 954

U-Sell

Auto Services

$100,000

U-Sell (Park & Sell Yard) is a unique, proven business model, helping customers to display and 6 sell their cars in a traditional car yard environment at U-Sell yards. Minimal investment, minimal 6 staff, great returns and lots of fun. Visit u-sell.co.nz for available locations throughout NZ.

Graeme McPheat P 0-9-391 1339 M 021 736 733 E graeme@u-sell.co.nz W u-sell.co.nz

Ultra-Scan

Agriculture

$80,000

An innovative mobile franchise whose core business is confirming the pregnancy of farm animals using real-time ultra-sonic equipment. Becoming a part of this franchise network enables the franchisee to run a low-cost, high return business in an exclusive territory, using a proven business system.

19 19

P 0508 858 727 E ultra-scan@xtra.co.nz W ultra-scan.co.nz

Valentines Buffet Restaurants

Food & Beverage

$400,000

New Zealand buffet restaurant offering franchise opportunities. Full training and support provided.

11 11

M 021 522 720

Venluree

Home & Building

$40,000

A unique opportunity to be part of an iconic New Zealand company and build a real business of value.

16 16

P 0-9-913 4185

Versatile Homes and Buildings

Home & Building

P.O.A

Rare opportunity to join the market leader. Current opportunities available in Hamilton and Queenstown. Versatile Homes and Buildings provides you with all the benefits of owning your own business, with the support and resources of a nationwide organisation.

35 35

Jaimee Ferris E franchise@versatile.co.nz W versatile.co.nz

Home Services

$15,000

Professional home services franchise providing flexible, multi-serviced businesses. Work either 120+ indoors or outdoors. Exclusive territories with established customers. Providing a lifestyle 1200 choice for over 30 years. Actively seeking area master franchisees for both lawn mowing and cleaning throughout NZ. Comprehensive training and support provided.

John & Estelle Logan P 0800 847 496 E franchisemag@viphomeservices.nz W viphomeservices.co.nz

Warmup New Zealand

Home & Building

$20,000

Warmup has become the heating product of choice for the majority of property and construction 15 professionals. 30

P 0-9-820.3850

Wash Rite

Home & Building

$45,000$70,000

Wash Rite is New Zealand’s premier domestic house wash and commercial property washing service where no job is too big or too small. We are currently looking for hardworking and dedicated people around New Zealand to join the Wash Rite team.

9 9

Troy Hillard P 0800 101 216 E troy@washrite.co.nz W washrite.co.nz

Wet-seal

Home & Building

$25,000

Waterproofing with 30 plus years of proven dependability. With a profitable work from home opportunity, all you need is a suitable vehicle. Franchisees are fully trained and receive regular ongoing training and full support from our operations, technical, sales, marketing and IT departments.

6 58

P 0800 436 000 E franchise@wet-seal.ws W wet-seal.com.au

What’s Up House Inspections

Home & Building

$69,995

New Zealand’s leading pre-purchase home inspection company.

6 6

M 021 952 397

Wholly Bagels & Pizza

Food & Beverage

$250,000$400,000

Turn-key opportunities available nationwide with this iconic bagel and pizza franchise.

6 6

Sam Rama M 021 272 2422 E sam.rama@whollybagels.co.nz W whollybagels.co.nz

$95,000

Wide Span Sheds specialises in the custom design, supply and construction of pre-engineered buildings using only high quality New Zealand Steel. We service domestic, rural and commercial markets. A recent restructure has opened up rare and limited opportunities in the North Island for business-savvy entrepreneurs.

3 450+

Peter Darnell P 0-9-889 2044 E peter.darnell@sheds.co.nz W sheds.co.nz

New New

P 0800 000 309

V.I.P. Home Services

61

Wide Span Sheds

18, Home & Building 19

Window Cleaning Plus

Home Services

$14,950

Built on more than 60 years of company history and perfected over the past 10 years.

Window Treatments

Home & Building

$30,000

Window Treatments manufacture and supply blinds, awnings, shutters, insect screens as well 21 as providing onsite blind cleaning and repair services to some regions. Franchises available on 21 the West Coast of the South Island, New Plymouth, Gisborne and Hawkes Bay.

Graeme Rose P 0-3-343 1876 M 021 338 031 E graeme.rose@window-treatments.co.nz W window-treatments.co.nz

Woolgro

9

Home & Building

$25,000 $50,000

Woolgro is a unique and proven system to establish premium lawns using our innovative pre-seeded lawn mats. You don’t have to have a landscaping background - just be customerfocused and enjoy working outside building a business based on excellent service.

6 6

Geoff Luke P 0-9-570 1985 M 021 957 600 E geoff.luke@woolgro.co.nz W woolgro.co.nz

Xpresso Delight

38

Food & Beverage

$51,995

Xpresso Delight has been offering franchises throughout Australia and NZ for 12 years and we encourage you to share in our success as the premier gourmet coffee system. We transplant the café experience into the workplace using state-of-the-art espresso machines to provide a semi-passive income with life-style benefits.

17 155

Allan Parker M 021 875 431 E allan.parker@xpressodelight.co.nz W xpressodelight.co.nz

Zexx NZ

Food & Beverage

$25,000 $50,000

Zexx NZ offers a range of better-for-you fruit juice slushy and smoothie products.

12 16

P 0800 556 022

Zones Landscaping Specialists

Home & Building

$50,000

Zones is New Zealand’s only franchise specialising in design and build landscaping services. Landscaping experience is not necessary. We are looking for people with experience in managing people, processes and sales.

8 8

Matt Steele P 0-9-303 0670 M 021 118 5810 E matt.steele@refresh.co.nz W zonesfranchiseopportunities.co.nz

company Hog’s Breath Cafe

Hudsons Coffee See page 71 Gloria Jean’s Coffees See page 48 Portermark See page 21

get more information Geoff Hargreaves P 0061 4 34 111 985 E geoffhargreaves@hbca.com.au W hogsbreath.co.nz Tim Ryan P 0061 3 8631 7700 E tim.r@emirateslr.com.au W hudsonscoffee.com.au Tony Ward P 0061 7 5591 3242 M 0061 418 720 907 E rfginternational@rfg.com.au W rfgbrands.com/contact-us/ Jeff Rankin M 0061 449 890 300 E jeff@portermark.com W portermark.com

industry

description

number globally

national master licence opportunities - find more at www.franchise.co.nz investment required

Food & Beverage

Seeking NZ master franchisee. Australia’s leading casual dining family-friendly restaurant, Hoggies is unlike any other restaurant. In a nutshell, it is about providing quality food and beverages in a casual environment with an over-riding friendly, party atmosphere. FANZ members.

80+

P.O.A.

Food & Beverage

Hudsons Coffee are coming to NZ and are looking for a passionate, enthusiastic master licensee. Over the past 19 years we have established a respected brand with a strong reputation. You now have the unique opportunity to share in that success by becoming the NZ master licensee.

95

NZ$ 1,000,000

Food & Beverage

Gloria Jean’s Coffees is seeking a master franchise partner for the development rights to New Zealand. This existing business has 11 stores across New Zealand with development potential nationwide for an experienced professional, preferably within the franchising, food and beverage or retail environment.

900+

P.O.A.

Business & Commercial

Seeking master licensees. You must possess demonstrated business development and people management skills. A proven track record in hospitality or similar is a must. You’ll be required to meet a franchise development schedule and possess the capital to finance the acquisition, along with back-up working capital.

17

AU$ 275,000325,000

We’ve had franchise specialists longer than most NZ franchisees have been in business. Search the Westpac Directory of Franchising at www.franchise.co.nz

85


description

Location

FANZ

company

page number

specialist advisors get more information

ACCOUNTANTS Paul Manning P 0-7-571 6280 E paul.manning@bdo.co.nz W bdo.nz

BDO

BDO is the fastest growing chartered accounting and business advisory firm in New Zealand. We have significant experience in franchising offering due diligence; structure reviews; appraisals; agreements, strategic planning; full accounting, audit, tax advisory and support services; raising capital and finance. Smart New Zealand business, backed by BDO.

Blackler Smith & Co

Blackler Smith & Co are relationship-based chartered accountants. For years, Ben Blackler has assisted franchisors and Greater franchisees with advice, business purchases and all tax services. Ben can help you buy a business, set it up correctly and run it Wellington effectively. Award-winner – Professional Services.

Ben Blackler P 0-4-555 9090 E ben@bsco.co.nz W bsco.co.nz

Connect2 Chartered Accountants

We are chartered accountants specialising in franchisor and franchisee accounting. We work with you to achieve growth and success. Our expert team can assist with cloud accounting, payroll, debtor systems, profit optimisation, strategic planning and much more. The accountancy firm where you count.

Tauranga & North Island

Jocelyn Gascoign P 0-7-578 1116 E info@connect2accountants.co.nz W connect2accountants.co.nz

Crowe Horwath

Crowe Horwath (previously WHK) provides specialist accounting and business advisory services to the New Zealand franchise industry. Your one-stop franchise shop.

National

Liz Le Prou P 0-4-569 9069 M 021 529 759 E wellington@crowehorwath.co.nz W crowehorwath.co.nz

Ecovis KGA

Ecovis KGA can help set up your business and raise finance. We can provide franchisees with all the business services needed National to begin business and ongoing support and financial services needed to succeed. We offer accounting, computer software, taxation, administration and business planning services.

Keith Goodall P 0-9-921 4630 E keith.goodall@kgal.co.nz W ecoviskga.co.nz

Save time, money and tax by benefiting from our specialist franchise advice and proven accounting solutions. Your success is National our business. Ring now 0800 555 8020. Specialist franchise accounting solutions including due diligence, benchmarking, budgeting, valuations, business mentoring, tax planning, cashflow management and reporting software systems.

Hayden Cargo Philip Morrison P 0800 555 8020 E info@franchiseaccountants.co.nz W franchiseaccountants.co.nz

Grant Thornton

Grant Thornton New Zealand Ltd is a leading business adviser and chartered accounting firm with three offices located in National Auckland, Wellington and Christchurch. Experts in each office nationwide can help you in all areas of your business. We are big enough to be specialised, but small enough to be personal.

Paul Kane P 0-9-308 5270 E paul.kane@nz.gt.com W grantthornton.co.nz

Hayes Knight North

Hayes Knight is an innovative chartered accountancy practice that works beyond the numbers to keep our clients’ businesses future-fit.

Scott Travis P 0-9-414 5444 E scott.travis@hayesknight.co.nz W hayesknight.co.nz

Franchise Accountants

87, 90, 91

National

National

We are chartered accountants who specialise in franchising. Having a look under the bonnet (due diligence) is key when buying National a business. We do this and set up robust reporting systems so you know how the business is performing. Inspired Accountants – Inspiring You.

Craig Weston P 0-9-309 2561 M 021 309 309 E craig.weston@inspired.co.nz W inspired.co.nz

KPMG

Franchise accounting and business advisory experts. We take care of your tax, accounting and business advisory needs so you can spend more time focusing on your franchise.

National

Shaenaz Azim P 0-7-858 6558 M 027 807 4973 E smazim@kpmg.co.nz W www.kpmgenterprise.co.nz

Orb360

Orb360 Limited offers chartered accounting services and is a franchise specialist accountant that provides a range of business and tax advice. We have over ten years of accounting and tax experience dealing with a range of different clients.

Auckland, Wellington

Jay Changlani P 0-4-555 0400 M 021 076 3762 E jay@orb360.co.nz W orb360.co.nz

Small Business Accounting services include bookkeeping, payroll, GST preparation, monthly and annual accounting, rental property accounting and company formations.

National

Craig Gardiner P 0800 999 SBA M 021 781 258 E enquiries@sba.co.nz W sba.co.nz

Staples Rodway Auckland

Over 15 years’ experience in franchising in the SME market, acting for both franchisors and franchisees. Assistance with franchise purchases and ongoing accountancy and I.T. support in the franchise area.

National

P 0-9-303 1384 W staplesrodway.co.nz

Staples Rodway Christchurch

Assistance with franchise purchases and ongoing accountancy and I.T. support in the franchise area. Over 15 years’ experience in franchising in the SME market, acting for both franchisors and franchisees.

South Island

Jon Robertson/Dave McCone P 0-3-343 0599 E jrobertson@srchch.co.nz W staplesrodway.com

Young Read Woudberg

Specialists in all business areas, with substantial experience in franchising. Our services include appraisals, structure review and planning, monitored business performance, mentoring and technology. We are committed to easily accessible, personal service focusing on client needs, building individual relationships and providing added value solutions.

Tauranga, Bay of Plenty

Eric Woudberg P 0-7-578 0069 M 027 570 1172 E accountants@yrw.co.nz W yrw.co.nz

Inspired Accountants

Small Business Accounting

87

75

FINANCE PROVIDERS ANZ

68

ANZ has a dedicated team of business specialists throughout New Zealand to provide support for franchisors and franchisees. They have also developed a range of tools and resources to make your franchising journey easier, including our free ANZ Franchise Guide.

National

Our Franchise Experts P 0800 39 40 41 E franchising@anz.com W anz.co.nz

ASB

70

ASB provides a comprehensive range of financial solutions for both franchisees and franchisors including finance, insurance, savings and investment options, everday banking and more. So if you are thinking of starting or buying a franchise, talk to our franchise specialists on 0800 272 476.

National

Craig McKenzie P 0800 272 476 M 021 805 425 E craig.mckenzie@asb.co.nz W asb.co.nz

BNZ

Talk to us about our wide range of specialist services that we can tailor to meet your needs as a franchisor or franchisee. We’ll use our 145 years experience in business banking, giving your business the support it needs to grow and succeed.

National

Mike Whitehead P 0800 ASK BNZ E mike_whitehead@bnz.co.nz W bnz.co.nz/franchise

Open For Business

Unsecured business loans up to $75,000. Partially secured loans up to $250,000. Hassle free online applications completed in minutes with a decision in seconds. Heartland Bank Limited’s lending criteria, fees and charges apply.

National

Ben Mune P 0800 809 191 E info@openforbusiness.co.nz W openforbusiness.co.nz

Silver Chef

Silver Chef is the only dedicated hospitality equipment funder in New Zealand and we have been providing flexible equipment National funding to the hospitality industry for 30 years. Preserve your working capital with Silver Chef, and fuel your growth through our various franchise funding solutions.

Trent Parkinson P 0800 443 334 E tparkinson@silverchef.co.nz W silverchef.co.nz

62, 92

Westpac is New Zealand’s most experienced bank in franchising and the only bank offering dedicated franchise only specialist managers throughout the country. Westpac has a high level of expertise in the franchise industry; this has been built up over the past two decades by working closely with franchisors, franchisees and industry specialists. The resulting depth of experience enables us to provide you with informed specialist advice regarding franchise funding and franchise specific transactional solutions. Specialists in franchise financing: Auckland/Northland - Dean Madsen, Riaan Wilson, Sujam Ratnayake Waikato – Emily Zhang Lower North Island – Mick Robinson Christchurch/South Island – Andy Higginson Otago/Southland - Graeme Wyllie

National

Daniel Cloete P 0800 177 007 E franchising@westpac.co.nz W westpac.co.nz

64

New franchise system set-up, franchise agreements, disclosure documents, brand name, trademarks, IP, master licensing, import/export, leasing sale and purchase structure compliance, disputes. Highly experienced team. Wide experience in all aspects of franchising. Extensive network of franchising contacts NZ and internationally.

National & Worldwide

Miles Agmen-Smith P 0-9-308 8070 M 0274 779 960 E miles.as@ascolegal.co.nz W ascolegal.co.nz

Baldwins

A patent attorney firm and associated law firm offering intellectual property services including patents, trade marks, copyright and registered designs. We help our clients achieve and maintain a commercial advantage in the marketplace by protecting, developing, commercialising and enforcing their intellectual property assets.

National

Sue Ironside P 0-9-373 3137 E sue.ironside@baldwins.com W baldwins.com

Botherway Legal

Commercial law firm specialising in franchising and related law. We work with you to give you the best possible legal support in your franchised or licensed business. Justina Knox is our specialist franchise lawyer and also has experience dealing with disputes and the successful negotiation of franchise exits.

National

Justina Knox P 0-7-839 1122 E justina@blegal.co.nz W blegal.co.nz

Westpac New Zealand Ltd

LAWYERS ASCO Legal

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company

description

Location

FANZ

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Franchise and commercial law specialists. We provide practical legal advice in plain English for both franchisees and franchisors at very competitive rates. Preparation and review of franchise documentation, advice on structuring and IP protection, franchise operation and dispute resolution.

National

Bradley Botting P 0-9-950 3880 E franchise@bottinglegal.com

Brookfields Lawyers

Expert franchise lawyers. Fixed price packages. Urgent advice is no problem.

National

P 0-9-979 2109 E law@brookfields.co.nz W brookfields.co.nz

Carson Fox Bradley

Carson Fox Bradley is a compact Auckland law firm. All 3 directors have significant experience in franchising. Chris Bradley is author of the ADLS standard franchise agreement. Matt Carson has completed an MBA thesis in franchising. We act for many national franchise systems.

National

Chris Bradley/Matt Carson/Linda Fox M 021 899 609 E chris.bradley@carsonfox.co.nz W carsonfox.co.nz

Cavell Leitch

Leading South Island law firm with offices in Christchurch and Queenstown. We are a full-service law firm and have the capacity and depth to offer comprehensive advice to both franchisors and franchisees. Get in touch with us today.

Christchurch & Queenstown

Rebecca Smith P 0-3-339 5620 M 022 674 4730 E rebecca.smith@cavell.co.nz W cavell.co.nz

Deirdre Watson Barrister

25 years’ experience in litigation, disputes, court cases and mediation. Franchise dispute specialist.

National

Deirdre Watson P 0-9-309 6988 E deirdre.a.watson@xtra.co.nz W deirdrewatson.co.nz

Duncan Cotterill

Duncan Cotterill is an enterprising full service law firm with offices in Auckland, Wellington, Nelson and Christchurch. We have expertise in specialist franchising, distribution and licensing in the retail, intellectual property, network growth and international expansion sectors.

National

Katrina Hammon P 0-9-374 7147 E katrina.hammon@duncancotterill.com W duncancotterill.com

Gaze Burt

40

Lawyers providing full legal services for franchisors and franchisees including advice and documents relating to franchise deNational velopment, franchise evaluation, risk management, transactional management and dispute resolution. Our experience is extensive over many years and we understand the important and significant fundamentals required for quality franchising.

Michael Bright P 0-9-414 9800 E michael.bright@gazeburt.co.nz W gazeburt.co.nz

Gibson Sheat Lawyers

88

Comprehensive legal advice for franchisors and franchisees. All franchise documentation. We’ll sort out issues at the outset, before they become problems. If things have already turned pear-shaped our mediation and franchise dispute specialists can assist.

Greater Wellington

Claire Byrne P 0-4-916 7483 M 029 916 7483 E claire.byrne@gibsonsheat.com W gibsonsheat.com

Goodwin Turner Commercial Lawyers

3

Goodwin Turner advise on all aspects of franchising including developing franchise systems, preparing franchise documents, reviewing franchise arrangements and advising on disputes and intellectual property protection. Team of leading law experts that are well-known in the franchise industry and who focus on making it possible.

National & Worldwide

Scott Goodwin P 0-9-973 7350 M 027 700 7396 E scott@goodwinturner.co.nz W goodwinturner.co.nz

Govett Quilliam

New franchise creation, franchise makeovers, problem solving for franchisees and franchisors, IP law and protections, advice on how to make money from IP via licensing, succession advice for franchise exits, advisor to intended immigrants seeking franchise businesses www.visaconnect.nz. Specialist in franchise networks and collaboration.

Taranaki Region & Wider

Maria Pozza P 0-6-768 3729 M 027 595 4769 E maria.pozza@gqlaw.nz W thelawyers.co.nz

Harmans Lawyers

Comprehensive legal service for both franchisors and franchisees including franchise and disclosure documentation, employment, leases, terms of trade, dispute resolution and business structures. Full service legal firm that prides itself on being solution driven. Franchise specialists with a proven track record.

National

Mark Sherry P 0-3-352 2293 E mark.sherry@harmans.co.nz W harmans.co.nz

The Bay of Plenty’s leading franchise lawyers, specialising in all aspects of franchising and business advice including dispute resolution. Advisors to franchisees and franchisors locally and nationally. Full commercial and property service.

National

David Foster/Michelle Carabine P 0-7-578 0059 E david@harristate.co.nz W harristate.co.nz

Izard Weston

Wellington and Lower North Island experts in the specialised field of franchising and licensing. We are practical, personable and professional. We can help both franchisor and franchisee clients with all their legal requirements.

National

Hamish Walker P 0-4-499 7809 E hamish.walker@izardweston.co.nz W izardweston.co.nz

Jackson Russell Lawyers

Your business needs specialist franchising advice and an experienced legal team that covers all areas of business law. National Jackson Russell is a full service law firm that will get to know your business, tailor advice to your business objectives and guide you through the process.

Darryl King P 0-9-300 6935 E dking@jacksonrussell.co.nz W jacksonrussell.co.nz

Kensington Swan

Commercial legal advice for franchising and purchase. We also assist with IP and dispute resolution.

Auckland & Wellington

Hayley Miller P 0-9-379 4196 E hayley.miller@kensingtonswan.com W kensingtonswan.com

Lane Neave

Lane Neave is a full service law firm with offices Auckland, Wellington, Christchurch and Queenstown. We have a dedicated franchising team experienced in advising both franchisors and franchisees on all their legal requirements. Our clients include large nationwide franchisor chains through to individuals.

National

Claire Evans P 0-3-353 8012 E claire.evans@laneneave.co.nz W laneneave.co.nz

National & Worldwide

Rory MacDonald/Tim Lewis P 0-9-307 3324 E info@mllaw.co.nz W mllaw.co.nz

Harris Tate

88

MacDonald Lewis Law

89

Expert franchise lawyers who specialise in fixed price packages for legal services. A specialist firm based in Parnell offering sound, practical and timely advice, we can assist with all business legal requirements.

Quantum Law

23

Specialists in franchise and business law. If you seek prompt and technically sound legal advice delivered to suit your commer- National & cial reality please contact us. With a wealth of franchise, business and corporate law experience, you will be in safe hands. Worldwide

Harshad Shiba P 0-9-302 0070 M 021 407 228 E contact@quantumlaw.co.nz W quantumlaw.co.nz

Sarah Pilcher The Franchise Lawyer

Over 15 years’ experience in franchising providing focused, cost-effective legal advice, plain English documents and commercially relevant solutions. Start-ups and existing businesses. Fixed price documents and legal advice for franchisees and franchisors. Converting franchise documents for use in other countries.

National

Sarah Pilcher P 0-9-579 3526 M 027 564 9942 E sarah@thefranchiselawyer.co.nz W thefranchiselawyer.co.nz

Simpson Grierson

Specialists in franchise systems including structuring, documentation, human resources, property, taxation and transactions.

National

Earl Gray P 0-9-358 2222 E earl.gray@simpsongrierson.com W simpsongrierson.com

Stace Hammond

Stace Hammond is a business law firm with offices in Hamilton and Auckland.

Auckland & Hamilton

Patrick Learmonth P 0-9-307 7909 E patrickw@shg.co.nz W stacehammond.co.nz

INSPIRED ACCOUNTANTS

We specialise in Franchising and love to help Franchisors and Franchisees with: • Due Diligence (should I buy this business?) • Budgets and Cashflow projections • Financial accounting and reporting systems • Benchmarking reports • Liaising with other advisors (banks, lawyers, consultants) • Tax Advice • Best structure for the business (company/trust etc) Call us for a no obligation chat on 09 969 7450 | 021 309 309 www.inspired.co.nz | craig.weston@inspired.co.nz

Inspiring You!

7 Reasons to Call Us First You get pre-purchase inspection reports - we leave no stone unturned You minimise risk & protect your assets with the best structures for your business You save time, money & tax with our proven accounting solutions & systems You benefit from specialist advice – we listen, we understand You work with award-winning service provider 2017/18 - Westpac Franchise Awards You get specialist franchise monitoring and ongoing support You’re using specialist franchise accountants with the tick of approval – accredited members of FANZ & CAANZ

Call Now 0800 555 80 20

Westpac New Zealand Franchise Awards Service Provider of the Year

2011–12 Winner 2015–16 Winner 2017–18 Winner

Find more info franchise.co.nz

Botting Legal

www.franchiseaccountants.co.nz

Search the Westpac Directory of Franchising at www.franchise.co.nz

87


company Stewart Germann Law Office, Lawyers and Notary Public

17

service

description

Location

FANZ

page number

specialist advisors get more information

Over 35 years’ franchising and licensing experience. New Zealand’s longest established specialised franchise law firm. Expert legal advice to franchisors and franchisees nationwide. Stewart Germann is a Past Chairman of FANZ and is passionate about franchising and small to medium businesses. Selected as Best Lawyers in New Zealand – Franchise for 2016. Winner of Global 100 – Law Firm of the Year – Franchise – New Zealand 2016.

National & Worldwide

Stewart Germann P 0-9-308 9925 M 021 276 9898 E stewart@germann.co.nz W germann.co.nz

Tavendale & Partners

We act for both franchisee and franchisor clients around the country, providing legal advice on all aspects of franchising from setting up a new franchise and drafting a full suite of franchise documents, to advising first time purchasers of a franchise business.

National

Jason Ray P 0-3-374 9999 E jason.ray@tp.co.nz W tp.co.nz

Turner Hopkins

A full service firm who can help you with all your legal needs. If you are a franchisor looking to develop a franchise system or a new franchisee looking to purchase a franchise business we can develop fixed price packages to suit your exact needs.

National

Lizandra Bailey P 0-9-487 0018 M 021 774 333 E lizandra@turnerhopkins.co.nz W turnerhopkins.co.nz

CONSULTANTS & OTHER SERVICES ABC Business Brokers

Franchise Consultants

Specialist business sales company selling franchises for 20 years with branches nationwide. At all times, we place the greatest value on confidentiality, professionalism and innovation. Your business is our business.

National

Steve Smith P 0-9-630 3004 E steves@abcbusiness.co.nz W businessesforsale.co.nz

Beans & Rice

Consultants

We elevate brands to their full potential and help business growth through our extensive design expertise; branding, graphic design, web design and development, collateral design, communications, copywriting, marketing and advertising. Build a better brand, attract better customers and build a better team culture.

National

Steve Goldie P 0-9-973 0438 E steve@beansandrice.co.nz W beansandrice.co.nz

BreakThrough Business Solutions

Business Growth

Business growth specialists working with franchisors and franchisees in 4 key areas: sales, marketing, systems and staff. We have developed a unique 3 step business growth process to generate more qualified leads, increase conversion, increase market share, and build the strength of the brand.

National & Worldwide

Fiona Clark M 021 991 917 E fionaclark@bbsolutions.co.nz W www.businessgrowthcoach.co.nz

Bright NZ

Talent, Culture & Training Development

Specialist recruitment, HR, training and development firm, with over 35 years’ combined experience in franchising. Bright NZ creates harmonious, high-functioning teams with a staggering post-recruitment stick rate of 99.7% supported by market-leading profiling tools and training including leadership legacy, sales performance and conflict competence.

National

Tracy Meyer M 021 911 790 E tracy@brightnz.co.nz W brightnz.co.nz

Crombie Lockwood

Insurance

Crombie Lockwood is NZ’s largest insurance broker. We guide master franchisors on the complex insurance and risk management programmes necessary for successful franchises and deliver faceto-face advice to individual members. Our SmartPAK solution provides: better business interruption protection; lower excesses; higher automatic cover limits.

National

David Rayner P 0-4-802 0166 E david.rayner@crombielockwood.co.nz W crombielockwood.co.nz

Cumulo9

Email Branding

Franchisors and franchisees send hundreds of emails every day, and every single one reflects the franchise brand. Every email also has the potential to generate more sales, up-sell, cross-sell or increase web traffic for your business.

New Zealand & Australia

Jason Roberts P 0-9-377 8885 M 021 222 7624 E jason.roberts@cumulo9.com W cumulo9.com

Deloitte

Business Advice

Working with you, we’ll deliver the financial knowledge, tax-savvy, strategic advice and connections, to help your business deliver outstanding performance in competitive markets. So, if you’re looking for a smarter solution, talk to the Deloitte Private team because we’re willing to do things differently.

National

Neel Singh/Jon Bradley P 0-9-303 0716 E nzdeloitteprivate@deloitte.co.nz W deloitteprivate.co.nz

Design for Marketers

Design Resources

Engage Design for Marketers to obtain design resources for you to market your franchise brand effectively and consistently. Planning, creation and supply of resources for branding, advertising, promotional, recruitment, point of sale etc. Over 20 years’ experience with leading franchise brands. Be seen, be bought, be recommended.

National

Paul Donovan M 021 64 45 45 E paul@cdq.co.nz W cdq.co.nz

HR Management Software

enableHR takes away the head ache of managing people so everyone knows what to do, when to do it and how to do it. Cloud-based HR software solution making it easy for franchisors and franchisees to stay compliant with the latest employment legislation.

New Zealand & Australia

Lisa Bell P 0800 236 2253 M 027 236 2253 E sales@enablehr.co.nz W enablehr.com

Payment Solutions

Eftco is a specialist payment terminal provider. We supply and support simple single site operations to complex integrated solutions. For large multi-site organisations requiring specialised fleet management and reporting, bespoke solutions are our specialty. Eftco, big enough to know, small enough to care.

National

Mark Chapman P 0800 180 180 M 021 073 0465 E mark@eftco.co.nz W eftco.co.nz

enableHR

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Eftco Ltd

Franchise Accountants

87, 90, 91

Franchise Consultants & Accountants

Specialist advice on franchise system development, feasibility studies, recruitment, documentation, manuals, ongoing mentoring, strategic planning and partnering to grow your business.

National

Hayden Cargo Philip Morrison P 0800 555 8020 E info@franchiseaccountants.co.nz W franchiseaccountants.co.nz

Franchise Association of New Zealand

34, 35

Franchise Association

The peak body representing the franchise community. Franchise members are required to submit their agreement and disclosure documents to ensure compliance with our codes of ethics and practice before being accepted into membership and biennially thereafter. Affiliate members are suppliers to the franchise sector.

National

Robyn Pickerill P 0-9-274 2901 E contact@franchise.org.nz W franchiseassociation.org.nz

Franchise Coach

89

Franchise Consultants & Recruitment

Comprehensive advice on franchise system development. Feasibility studies, manuals, documentation, legal briefs, franchisee recruitment, exporting and importing, mediation and ongoing mentoring to grow your business. The Franchise Coach has been a major contributor to the success of franchising in New Zealand since 1983. Consultants, trainers and speakers.

National & Worldwide

David McCulloch P 0800 4FRANCHISE M 021 943 776 E davidm@berkshire.co.nz W franchisecoach.co.nz

Franchise Infinity

4, 33

Software Management Tool

Franchise Infinity is a cloud-based software that combines a range of effective management tools which Worldwide enables you to manage all aspects of your franchise from one centralised operating system. These efficiencies are driven through a focus on communication, compliance and performance.

Shane Boulle P 0800 555 013 M 021 083 66253 E sales@franchiseinfinity.com W franchiseinfinity.com

Media Training

Franchise Media Training has two core services. It helps franchises grow their bottom lines by showing them how to generate their own news media publicity. Secondly it prepares franchises for possible negative media attention that can destroy entire brands overnight.

Pete Burdon P 0-3-420 0300 M 029 200 8555 E office@franchisemediatraining.com W franchisemediatraining.com

Find more info franchise.co.nz

Franchise Media Training

For Franchise Advice in the Wellington region

As the Bay of Plenty’s leading franchise lawyers, you can count on us for tailored and practical advice that adds value to your business.

National

?

? ?

Have a chat with our legal experts:

Claire Byrne Dave Robinson

04 916 7483 04 916 6307

www.gibsonsheat.com

With more than 20 years of experience in franchising, we know what works best. Our track record in providing comprehensive sound advice speaks for itself. Just ask…

07 571 3668 david@harristate.co.nz David Foster Michelle Carabine 07 571 3664 michellec@harristate.co.nz Harris Tate Limited

29 Brown Street, Tauranga

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harristate.co.nz


description

Location

Franchise Research & Development

Franchisee selection systems, satisfaction surveys, recruitment and training for franchise management. Assistance with organisational change and restructuring, conference presentations on managing the franchise relationship.

New Zealand & Australia

get more information Jewli Turier P 0061 457 846 675 E jewli@franchiserelationships.com W franchiserelationships.com

Franchize Consultants (NZ)

39

Franchise Consultants

Specialists in franchise development, strategic planning, legal briefs, systems and manuals, recruitment National & processes and documentation, ongoing mentoring and sound advice on franchising and licensing. Worldwide Recognised as New Zealand’s leading management consultancy specialising in franchise development. Experience with many of NZ’s top franchised companies.

Callum Floyd P 0-9-523 3858 E callum@franchize.co.nz W franchize.co.nz

Grand Millennium Auckland

42

Conferences

Featuring 452 elegant accommodation rooms and 16 versatile meeting and event spaces, Grand Millennium Auckland provides a range of venue options for partners, from small meetings to large conferences seating up to 800 delegates.

Greater Auckland Area

Adam Mansour P 0800 4 633 846 (+61 4 2117 3325) E meetings@millenniumhotels.com W meetingsnz.co.nz

In2HR

8

Human Resource Management

In2HR will give you peace of mind. Whether you are a franchisor or a franchisee, talk to us about how we can keep your business on the right side of the law. Specialising in HR management including employment relations disputes, employment agreements and more.

National

Thai-Anh Cooper M 027 222 2793 E thaianh@in2hr.co.nz W in2hr.co.nz

Sales Training

Inspired Learning Systems customises learning experiences for sales teams experiencing some bumps National in the road or those people who have to do sales but don’t want to. We help you find the business, open the door and connect for the sale all within your comfort zone.

Bill James P 0-9-441 2164 E info@inspiredlearning.co.nz W billjamesspeaker.com

Online Training

Intuto is a cloud based training platform which enables businesses to make, share and track training all from the one system. Intuto is easy to use and affordable. From $95 per month for unlimited users, free phone support and no minimum contract.

Adrian Sallis M 021 617 725 E support@intuto.com W intuto.com

Iridium Partners

Consultants

We’re people passionate about franchising! Experienced franchise, operational and HR professionals. National & We realise that success isn’t achieved alone, whether you’re a franchisee-to-be or a seasoned Worldwide franchisor we’re here to help with franchise recruitment and franchise buyer advocacy, franchise system growth, and human resources specialist support.

Nathan Bonney M 0275 393 022 E admin@iridium.net.nz W iridium.net.nz

Kakapo Business Sales

Business Brokers

Kakapo Business Sales are industry-leading business brokers with a wealth of experience within the franchise industry. We assist franchisees in selling their existing franchise businesses and assist franchisors with the sale of franchise systems and finding rock star franchisees for new stores.

National

James Ashwin P 0800 494 449 M 021 125 6898 E james@kakapobusiness.co.nz W kakapobusiness.co.nz

Franchisee Resales & Recruitment

LINK are the authority on selling businesses in NZ and the southern hemisphere. Franchised specialists National in business sales, franchise re-sales and recruitment and sales of franchise opportunities. We provide professional, practical franchise advice to our clients. LINK has more brokers than any other brokerage.

Nick Stevens/Laurel McCulloch P 0-9-579 9226 E link@linkbusiness.co.nz W linkbusiness.co.nz

IT Software

Microsoft provides organisations with software and services to help them run their business. Services like Office 365 can help franchises communicate, collaborate and be more productive, and our network of partners can work with you to understand your requirements and deploy the appropriate solution.

National

Paul Bowkett P 0-9-362 5598 E paul.bowkett@microsoft.com W aka.ms/franchiseblog

Inspired Learning Systems Intuto

50

LINK Business Brokers

20

Microsoft NZ

National

MYOB

36, 37

Accounting & Payroll Software

MYOB offers easy online accounting software that has everything you need to take care of your franchise business, including POS and payroll solutions. Whether you’re a small or large franchise, or a franchisor managing multiple franchise sites, MYOB has the solutions that provide you with real-time visibility of your finances, consistent accounting across your franchise network, and the ability to make informed business decisions faster. MYOB offers flexibility, capability and opportunity for growth.

National

Nick Fletcher P 0800 39 66 38 M 021 940 921 E nick.fletcher@myob.com W myob.co.nz/franchise

Parallel Directions

63

Commercial Property Industrial, office and retail space: Let us negotiate for you. It’s possibly the best business move you’ll Consultants ever make. We’re completely independent of the agency system, and provide innovative and strategic property solutions. We’re here to fight for you, not the landlord.

National

Peter Scott P 0-9-550 8500 M 021 896 649 E info@paralleldirections.co.nz W paralleldirections.co.nz

POD Consulting

Consultants

POD offers NZ franchisors and franchisees expertise in HR consultancy, business planning, coaching, workshops and recruitment. We are the ultimate one-stop shop aimed at helping NZ businesses grow sustainably and establish a winning culture amongst their people.

Auckland & Wellington

Rebecca Moxon P 0-9-948 2105 E rebecca@pod.co.nz W pod.co.nz

Salvitas Ltd

Health & Safety

Health and safety consultants, inspection and auditing specialists. Providing staff training in customer conflict and de-escalation, armed hold up and robbery training. Incident investigation and root cause analysis services conducted by former NZ Police detectives and licensed private investigators.

National

Gary Crook P 0800 723 396 E support@salvitas.nz W salvitas.nz

Selector

Franchisee Selection We identify ‘best-fit’ franchisees using psychometric testing and analysis to strengthen selection decision-making. We work with small through to very large private and public sector organisations. We also provide full consultation and interpretation services to clients and individual candidates.

National

Grant Amos P 0-9-379 5270 E info@selectorgroup.com W selectorgroup.com

Silk Design & Build

Commercial Fit-outs

Silk Design and Build specialise in complete commercial fit-out solutions. From site feasibility to concept National design and architectural plans. Every interior design is uniquely tailored and fine-tuned for you. The Silk experience ensures high quality results delivered on time and on budget.

Anand Doreswamy P 0-9-262 0527 M 021 520 038 E anand@silkimpex.co.nz W silkdesignandbuild.co.nz

Tork Professional Hygiene

Workplace Hygiene

Tork is the leading global brand in workplace hygiene. Manufacturing toilet tissue, hand towels, soap, cleaning and other products. Through global innovation Tork systems are designed to reduce consumption and save you money. Be confident you are making a responsible choice with market leading sustainability credentials.

National

Mark Stevens M 0275 991 627 E mark.stevens@asaleocare.com W tork.co.nz

The Mediator

Mediation

Mediating all types of disputes between franchisors and franchisees or between franchisees.

National

Trish Blyth P 0800 026 334 E trish@themediator.co.nz W themediator.co.nz

Waipuna Hotel & Conference Centre

Conferences

Hotel accommodation with fully integrated conference centre suitable for small meetings through to Greater international conventions. Full food, beverage and leisure facilities complete the offering. “World famous Auckland in New Zealand”, Waipuna Hotel and Conference Centre is an icon in the mid-range meetings and Area leisure market.

The award that spells confidence and trust

Shelley Trutsch P 0-9-526 3008 M 0274 992 412 E shelleyt@waipunahotel.co.nz W waipunahotel.co.nz

REACH THE BUYERS We have the expertise and the experience to find cost effective legal solutions for your franchising needs Let us help you make the right decision

Only Franchise New Zealand combines print, digital, online and social media to reach potential franchisees throughout New Zealand – and beyond. Contact us now to promote your opportunity or service.

• Over 25 years of experience • Fixed fee packages

Service Provider of the Year

Contact: Rory MacDonald (09) 307 3324 rory@mllaw.co.nz 92 Parnell Road, Auckland

Find more info franchise.co.nz

Franchise Relationships Institute

service

FANZ

company

page number

specialist advisors

NZ’s dedicated franchise media info@franchise.co.nz p 0-9-424 8236

If you’re just starting in franchising, talk to someone who isn’t. Search the Westpac Directory of Franchising at www.franchise.co.nz

89


buying a franchise

take the guesswork out of buying a franchise A new online pre-purchase evaluation tool from Franchise Accountants helps franchise buyers get it right

B

uying a franchise business is often a trek into the unknown. That’s especially true for first-time buyers and, even if you have some business experience, evaluating a new start-up location requires a lot of careful research. No matter how big or small the brand, every situation is different. On top of this, buying a business can be an emotional rollercoaster, with the highs that come from the excitement of being your own boss being balanced by the dips of anxiety that come from the financial risk involved if it doesn’t work out. It’s a big decision so, just like buying a house, it pays to get a professional pre-purchase assessment from an expert before you buy – and that’s exactly what a new online tool from the awardwinning specialists at Franchise Accountants provides. ‘This is an industry first which is designed to provide a potential franchise buyer with all they need to know about how any specific opportunity might suit their own circumstances,’ says Philip Morrison, the Principal of Franchise Accountants. ‘As one franchisor told me, there’s no other prepurchase report like this on the market – it will provide a franchisee with everything they need to know.’

tailored report Philip explains how the process works. ‘Starting with a simple online question and answer session, we collate and analyse your information, apply our insights and know-how and create a 25-30 page Pre-Purchase Report which is tailored to your specific circumstances. This addresses the viability, profitability and sustainability of the opportunity and its financial fit for you. ‘The service also includes a face-to-face or Skype meeting to allow you to discuss the report in person with one of our experts. We don’t make the decision whether you should buy any particular business or not, but we do ensure that you have the information you need to make an informed decision.’ The whole process is based on many years’ experience. During that time, Franchise Accountants has worked with over 1,000 ‘new to business’ franchise buyers and evaluated over 250 franchise systems. ‘Each of the buyers is unique, and each of the businesses is unique,’ says Philip. ‘What works for one franchise buyer may not work for another. That’s why we’ve developed a 7-step process which provides a structured approach to creating a road map for making informed decisions. It’s like a financial matching exercise for finding out if the numbers work for you.’

The award-winning team at Franchise Accountants

7-step process

The Pre-Purchase Report is designed to answer the following questions for prospective franchisees, master franchisees and franchisors: • Can I afford it? Will my financial position be strong enough to make this work? • Will it make money? When will it make money? How much money is it likely to make? • Can I get my money back when I sell it? Am I putting my capital at risk? • What do I need to know to make the numbers work so that there will be more money coming in than going out? • Am I being realistic with my expectations? • How does this opportunity measure up against other similar franchises? Philip says, ‘Any accountant will ask the questions like: Is this business opportunity affordable? Is it profitable? Is it viable? Is it sustainable? What makes Franchise Accountants different is our knowledge of franchising in general and individual franchises in particular. We carry out industry- and franchise-specific benchmarking around performance measures based on our enormous experience. It all goes to reducing the potential risk for you as a potential buyer.’

risk versus reward

Philip explains that there is always an element of risk when buying a business. ‘After all, if there were no risk, then everyone would be doing it!’ he points out. ‘However, it’s because of the risk that the rewards of business ownership should be greater than working for someone else. ‘Buying a franchise is about mitigating the risk. You should be mitigating it to some extent by joining an established brand and benefiting from the training, support, marketing and buying power that the franchise offers. But you still need to define what is an acceptable risk to take for your own individual circumstances. Our pre-purchase evaluation process helps you work that out.’ Philip emphasises that investing in a Pre-Purchase Report is not a substitute for doing your own homework into specific aspects of a business such as, for example, foot traffic or rental terms of a particular location, nor can it provide a guarantee of business success. ‘What it does do, though, is give you a framework to evaluate the franchise on the numbers that count, educate you in knowing what you need to know and reduce the risk by making informed decisions. Once you have that, you are in a better position to find a total package that works for you and the business alike. It helps you get it right.’

next steps

‘Getting access to this specialist knowledge takes just three steps: 1. Ring 0800 555 8020 from anywhere in New Zealand. We’ll advise which fixed price band suits you and register you for the online Pre-Purchase Report portal. 2. Log on, upload your information and answer some relevant questions. 3. Book in a meeting or Skype meeting to review the report and its findings.’

advertiser info Franchise Accountants www.franchiseaccountants.co.nz Contact Philip Morrison P 0800 555 80 20 M 021 22 99 657 pmorrison@franchiseaccountants.co.nz

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Franchise New Zealand

Autumn 2018

Year 27 Issue 01


Reduce the risk when buying a franchise. Use our new online pre-purchase evaluation platform to find out if buying a franchise is the right fit for you! Enter your details into our purpose-built platform and get a full, comprehensive report, including financial and lifestyle evaluations, that will tell you if buying a franchise is the right choice for you. Developed by Franchise Accountants, with specialised franchise experience, this platform is the only one of its kind that compares your data with like-for-like franchises and businesses, along with your personal expectations and financial position.

Know before you invest!

7 reasons to talk to us BEFORE you sign up Comprehensive pre-purchase evaluation reports Business structures to minimise risk, maximise protection Proven solutions and systems to save time, money and tax Specialist advice complete with listening and understanding Specialist franchise mentoring and ongoing support The knowledge and experience of New Zealand’s premier dedicated franchise specialist A New Zealand franchise industry award-winning service

Westpac New Zealand Franchise Awards Service Provider of the Year

2011–12 Winner 2015–16 Winner 2017–18 Winner

0800 555 8020

info@franchiseaccountants.co.nz www.franchiseaccountants.co.nz


Up to 100% finance available for your new vehicle or machinery. Talk to us today.

JN14194-FNZ

0800 177 007 westpac.co.nz/franchising

Up to 100% funding available on the GST exclusive price of the asset. All applications for finance are subject to Westpac’s current lending criteria. An establishment fee may apply. Terms, conditions, fees and charges apply. For details, please visit westpac.co.nz/business or call 0800 177 188. Westpac New Zealand Limited.

JN14194 EFL - ADVERT A4 - Franchise NZ.indd 1

4/03/16 10:48 AM

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