Franchise New Zealand - Year 27 Issue 02 – Winter 2018 by Franchise New Zealand

BUY YOUR OWN BUSINESS

Winter 2018

franchise.co.nz

Year 27 Issue 02 $8.95

GET THE BU ZZ 10 financial reasons to buy a franchise

PLUS | master franchises | questions to ask | mistakes to avoid | increasing sales endorsed by

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Westpac Directory of Franchising Over 275 different franchises

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Taking care of business Property Care and Commercial Cleaning franchises available

Right across our beautiful country, CrestClean has opportunities with new Commercial Cleaning and Property Care franchises. Many of CrestCleanâ&#x20AC;&#x2122;s 617 franchisees are regionally based and enjoy operating their own profitable businesses with the benefits of lifestyle, lower costs and cheaper housing. Crest PropertyCare is a new division of CrestClean, which offers a business suited to practical, hands-on folk who would enjoy looking after the grounds and outside areas of buildings. We provide contracted caretaking services to more than 25 schools around NZ, and that roll is growing. With industry-leading training and great local business support, a franchise with CrestClean is a rewarding long-term career. Call 0800 273 780 or visit www.crest.co.nz See opportunities in our prosperous regional towns: www.crest.co.nz/move-to-the-regions

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franchise.co.nz

One of the questions that people sometimes ask about franchising is, ‘Why would you pay all that money for a franchise when you could do it yourself?’ It’s a fair question, and one that I hope our cover story helps answer. From a financial point of view, buying a franchise can make a lot of sense – and that’s true from a personal point of view, too. As a franchisee, you always have people to talk to who understand your business inside out – people who care. I experienced a bit of that myself when I asked for input to our cover story. Franchisors, master franchisees, bankers, accountants and lawyers responded with such enthusiasm they gave me enough material for three articles. It’s typical of franchising people that they are keen to help and share the buzz in this way – and that thought also gave us the title for the 10 B’s story. This issue, we’re sharing the buzz in other areas, too. We look at the realities of taking up a regional or national master franchise (page 26). There’s advice on choosing advisors (page 34) and, if you’re thinking of life in the country, a look at the latest statistics on growth in the regions (page 40). We’ve updated our comprehensive list of questions to ask about buying a franchise (page 46), there’s advice on the habits of top-performing franchisees (page 54), and details of what your lawyer should tell you (page 58). Finally Philip Morrison shares eight common mistakes that franchise buyers make and how to avoid them (page 82). And if that’s not enough, you can get even more buzz on our website at www. franchise.co.nz, which had over 18,000 visits last month – a real ‘hive’ of activity! On another topic, if you’re one of our regular subscribers you’ll notice a change in our distribution method caused by everincreasing postal rates. The new system helps keep rates down while delivering your magazine in better condition. If you want to share it with others, give them a link to our digital edition at http:// franchise.co.nz/shunts/72 or direct them to our website. Share the buzz! 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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26 Master Plan

Get The Buzz

Thinking of buying or starting a business? We share 10 B’s on why buying a franchise makes sense from a financial point of view

46 Questions To Ask

Want a bigger opportunity? Taking up a regional or national master franchise could offer the rewards you seek

A comprehensive list of questions to help you find out what you need to know about a franchise

Winter 2018 year 27 issue 02

welcome to New Zealand's BUY YOUR OWN BUSINESS magazine 6 Get The Buzz We share 10 B’s on why buying a franchise makes sense from a financial point of view 11 Fresh Thinking Mexicali Fresh starts a new chapter for experienced entrepreneur 12 Place, Premises, Price Parallel Directions helps franchisors get the best outcomes for franchisees 13 Being Local After 10 years, The Coffee Club’s franchisees are still growing 15 The Business That Comes Highly Recommended V.I.P. Home Services franchisees value the support they receive 16 Updates Te Reo at McDonald’s, plastic straws and franchise confidence – some recent news stories from our website 19 A Name To Trust New franchisees discover Jim’s Cleaning opens doors to new business 20 Getting The Money Daniel Cloete explains how a specialist banker can help you get what you need to buy a franchise 23 Put A Ring On It Epiphany Café needs master franchisees with food sector experience

24 On The Road Again Top business opportunities with Touch Up Guys 25 Capital Business Fifo Capital enables franchisees to make good returns using their own money 26 Master Plan Taking up a regional or national master franchise could offer the rewards you seek 29 Love What You Do sKids franchisee follows her heart to open second centre 30 Lots Going On FANZ offers a don’t-miss conference and representation at home and abroad 32 Franchisor Benchmarking Franchize Consultants list five KPI measurements all franchisors should know 33 Taking Caretaking To The Next Level Nail a new career with a Crest PropertyCare franchise 34 Make The Right Choice When buying a franchise, using the right advisors is essential 37 Top Performers New franchisees take out major awards at Columbus Coffee 39 Giving Kids A Sporting Chance Kelly Sports provides ideal platform for enthusiastic family

40 Regions The Place To Be GDP estimates show NZ’s regions have grown strongly 41 Enjoy The Best Of Both Worlds Coffix combines low investment with high potential 43 Hunger Gains Dive full throttle into a modern franchise model with BurgerFuel 45 Think Global Eat Local Jamaica Blue franchisees match local cafés to local customers 46 Questions To Ask What do you need to know before you buy a franchise? Here’s a comprehensive list of questions to help you 51 Powering On Growing demand means Jim’s Test & Tag needs more franchisees right now 52 Opening Doors Dream Doors backs franchisees with winning technologies 53 People And Clients First Paramount veteran sad to retire; offers valuable tips to new franchisees 54 How Franchisees Can Increase Sales Greg Nathan reveals the seven habits of top franchisees 55 The Secret Lives Of Shoppers Shoppers Anon helps franchises understand the customer experience

57 Start Young Grow Fast Domino’s offers multiple opportunities to new entrepreneurs 58 7 Things Your Lawyer Should Tell You Scott Goodwin and Nicole Duncan outline the most important factors 61 Coffee Carts Doing The Numbers Streetwise Coffee franchisees prove there’s plenty of potential 63 Smooth Operators Zexx franchisees sell healthy iced drinks and mixes into schools and businesses 65 Serious Fun Scratchpad helps children take creative control of their futures 66 Getting On Board Michelle Bentham on applying corporate governance principles to franchises 82 8 Common Mistakes Franchise Buyers Make Philip Morrison explains how to avoid them 68 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

78 specialist advisors

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

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.

80 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: istockphoto.com/dvarg

68 franchise opportunities

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GET THE BUZZ

Thinking of buying or starting a business? Simon Lord shares ten B’s on why a franchise could be your best option People buy a business for all sorts of reasons: to take up a great opportunity; to be their own boss; to work with family or friends; to secure their future; because they’ve been made redundant; to move to a new area; to follow their passion; to buy a job; to create a new lifestyle. One thing is certain: everyone wants their business to make money, not lose it – and that’s why choosing a franchise can make sense. Here are 10 good financial reasons for buying a franchise rather than an independent business.

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Franchise New Zealand

Winter 2018

Year 27 Issue 02

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1 BUYING POWER

If you run an independent business in New Zealand, you’ll soon find that there are only a few suppliers of the products or services you need – and, as an individual customer, you don’t have much negotiating power with any of them. That applies whether you’re buying office equipment, insurance, paper cups or lawnmowers. As part of a franchise, though, you’ll be part of a bigger group of tens or hundreds of franchisees, and you’ll have someone negotiating with the suppliers on your behalf. Buying power is not all about getting the lowest possible price: it’s also about terms, marketing assistance and many other factors. A wise franchisor mixes all these elements to get the best possible outcome for the franchisee. That should result in better prices, better service and less stress for you. That applies to marketing, too – as an independent café, you’ll never be able to afford to advertise on television, but join Columbus Coffee and you’ll find your latest menu items on TV and all over social media. Which brings us to …

2 BRAND VALUE

Julie Evans was already a hugely-experienced hairdresser when she moved from the UK to live in Christchurch. Despite that, she bought a Rodney Wayne franchise – why? ‘The Rodney Wayne brand had huge longevity and respect, and I knew I couldn’t build “brand Julie Evans” to match that. It was a huge plus back then and I believe it still is,’ says Julie, who is now CEO of the franchise. The value of a brand is not just that it puts a well-known name above your door – although that certainly doesn’t hurt. A restaurant called McDonald’s is going to attract more customers from the moment it opens than one called ‘Fred’s Burgers’, for example. More importantly, it tells people what they can expect. If someone wants their home cleaned while they are out, they will have more confidence in a franchisee from V.I.P. or Jim’s Cleaning than from someone they’ve never heard of. They know the franchisee will have been through security checks and have proper training and insurance before being allowed into their home, and know that they will have standards to maintain. Cindy Buell of MRH, which owns the Mexicali Fresh and Burger Wisconsin franchises, puts it simply. ‘Joining a well-known brand enables you to ride the wave instead of trying to create the wave all by yourself.’

3 BANK FINANCE

For most people, buying or setting up a new business requires some sort of funding – and this is another area where buying a franchise can make things easy. Finance providers know that franchised businesses often involve lower risk than independent businesses in the same industry, and banks with specialist franchise divisions have a good understanding of the various different models. ‘A good franchised business involves known financial inputs, including costs and working capital requirements, and good systems to help franchisees control costs and manage business growth,’ says Daniel Cloete, National Franchising Manager for Westpac. ‘That means we can much more easily structure appropriate finance packages for franchises than for independent businesses. Of course, franchisees need some form of security, too, but in many cases where the franchise is a well-proven model, we can also fund against the projected business income – even for a brand new location.’ Specialist franchise bankers also build up expertise in different brands. That means they know what is realistic when it comes to buying a business and may be able to make suggestions based upon your own particular situation. It’s not just about the initial funding, either – having the right funding package in place from the start can make it easier as your business grows, requires new equipment or goes through seasonal variations.

4 BUDGETING

Good businesses don’t just happen. They take hard work and, if you want to be successful long-term, they also take planning. This is where buying a franchise can really pay off, because you aren’t on your own – you have the support of a franchise team who have probably been through this before with many other people. ‘Because they have a lot of data on how their business model works, franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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a franchisor should be able to provide you with practical assistance in all sorts of areas,’ says accountant Scott Travis of Hayes Knight. ‘These include market data, feasibility studies, budgets, cashflow forecasts and funding applications. If your franchise requires premises, they’ll also have detailed information on lease and management costs and percentages that can form an essential part of evaluating any particular location.’ Brian Mooney, who was formerly general manager with a well-known food franchise, says this is particularly valuable. ‘For example, if the franchisor knows from other locations the percentage of people entering a mall who will buy your product, then they can estimate the turnover of a new outlet pretty accurately. Some locations are never going to be profitable, so good franchisors don’t allow franchisees to go there – and you (and they) don’t lose a whole load of money working it out. It’s more risky for independents because they don’t have access to all those numbers.’

5 BREAK-EVEN

One of the financial concepts that is particularly important to any new business owner is that of break-even – the point at which your business starts paying for itself. The first break-even point is reached when your franchise is generating enough revenue to pay all the costs in the business, including servicing any debt, except paying yourself. The second comes when it can pay all the costs in the business plus pay you a reasonable market salary appropriate to the position that you hold within your business and the industry that you are operating in. Knowing these figures (and being able to manage the various sales and costs that go into them) is vital. After all, it might feel good to see $10,000 sales coming over the counter every week, but if your break-even point is $12,000, you need to do something about it now – not at the end of the year when your accountant breaks the bad news to you. The good news is that buying a franchise means you should not only be aware of your break-even points and have clear goals right from the start, but that you should reach them faster than you would in an independent business. After all, you’ll have all the benefits of the brand, buying power and efficient operating systems behind you to help you hit the ground running. Different types of businesses will have different break-even times, varying from a few weeks to six months or more, but if you know what you’re aiming for and how you are doing – and you have a franchisor helping you to understand what to do next – it reduces a lot of the stress for a new business owner.

6 BUSINESS SYSTEMS

Reaching break-even quickly is partly achieved by putting your effort into the things that work, rather than the things that don’t work – another advantage of a franchise, where others have been there before you. As Daniel Cloete mentioned above, good business systems are a massive part of franchising. A well-established franchise will have years of experience across many different outlets, and will have developed ways of doing things and ways of managing the business that are efficient, effective and, above all, profitable. It is these systems that you are paying to learn and use when you buy the franchise. ‘Mowing lawns or cleaning houses might seem pretty straightforward, but there’s an art to making money from it,’ says Estelle Logan of V.I.P. Home Services. ‘If it takes you all Saturday morning to do your housework or mow the lawns at home, could you run a profitable business from doing just 10 properties a week? But with the right systems, you could do 5 or 6 houses or 10-15 lawns a day. We show you how to quote the job to make a profit, what products to use and how to do a professional job every time. ‘We also show you how to avoid mistakes that will cost you time, money and business growth. If you use the wrong sprays, scratch tinted windows or ringbark trees because you aren’t experienced and don’t have the right knowledge, the cost of putting damage right can be huge.’ A good franchise will also help you manage better, too, with systems and software tailored to your particular business that minimise the time you need to put in to get timely, accurate information that helps you stay on top of things.

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GET THE BUZZ

7 BENCHMARKING

One of the biggest benefits of being a franchisee, as opposed to owning an independent business, is that you are part of a group using a common brand, products, services and systems to operate your businesses. Although you might all be using the same system, you won’t all be getting the same results but, by sharing information, you can learn what the normal range is, what you’re doing well and where you have room for improvement. Even better, by learning from those doing better, you can find out how to make improvements in your own business. In a food business, for example, you might compare not just margins on different products but the sales mix across the franchise. Who is doing the greatest volume of high price or high margin items, and how are they doing it? Who has the busiest breakfast or afternoon periods, and what are the drivers of that extra business? Can you do the same? Who has the highest staff productivity – are they motivating their staff through incentive schemes, or training them in sales skills, or paying extra to attract and retain good people? What is the average level of wastage across the franchise, and how are the top performers controlling it better? A good franchise will have systems in place to measure all these factors and ways of sharing reliable and highly relevant information that you can benefit from.

8 BACK-UP

10 financial reasons t

improvements can be made. Secondly, there’s identifying what needs to be done – training, marketing, equipment/system upgrades or whatever is required to achieve those improvements. Thirdly, there’s overall business planning and reviews to help keep you on track towards your medium and long-term goals. ‘The role of the field manager is to show franchisees where and how to develop,’ as Scott Travis points out. ‘It’s easy for business owners to focus on working in the business rather than on it – to get stuck behind the counter serving customers rather than be out developing new ones. Although staying in touch with your customers is essential, a franchisee who spends their time doing too much of the low-paid work won’t grow their business. Part of the role of the field manager is to encourage you to get out and grow.’ And the other good news about field support is that all of this personal advice and encouragement doesn’t cost you anything extra – you’re already paying for it in your franchise fees. (read more about the value of field visits at www.franchise.co.nz/article/2051)

9 BUDDY BONDING

Of course, your franchisor, your field managers and your suppliers aren’t your only source of support and guidance – a franchise also offers you a network of like-minded peers who are having exactly the same experiences as you – your fellow franchisees.

The good news is that while benchmarking might show you where you can improve your business – and ultimately your financial – performance, you don’t have to work out how to do it all by yourself. In addition to the franchise system and specialists at the franchisor’s office, most franchises also have personnel who visit and communicate with franchisees on a regular basis to help franchisees maximise their profitability and local market share, and ensure they’re maintaining the standards of the franchise and the brand.

They understand what it’s like to have a staff member not turn up for a busy shift after a late night out, or face a sudden rush of work, or have to put in extra hours to be able to take the time off for your child’s prizegiving. They understand the frustrations of suppliers missing deliveries and the joys of landing a big new client. They know this because they’ve been there themselves and have already found solutions or known who to call on for help. And they’re the people that you can call upon yourself and will sit up late with at the annual franchise conference sharing stories of things that went right, that went wrong, or made them feel like a total idiot!

This support can come in a number of ways. First, there’s the sharing of benchmarking information and analysis of your data to see where

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Winter 2018

Year 27 Issue 02

14/06/18 3:08 PM

ons to buy a franchise grow and manage a successful business. They are in the same franchise, with the same brand, same systems, same services, but theyâ&#x20AC;&#x2122;re not in competition with you â&#x20AC;&#x201C; theyâ&#x20AC;&#x2122;ll want you to succeed. Above all, you wonâ&#x20AC;&#x2122;t feel isolated, as independent business owner sometimes do. As Estelle Logan says, â&#x20AC;&#x2DC;As a franchisee you can have peace of mind that you are not in business alone â&#x20AC;&#x201C; thereâ&#x20AC;&#x2122;s always someone you can turn to for advice and help when things get tough, as they inevitably do sometimes.â&#x20AC;&#x2122;

10 BUILDING AN ASSET

Finally, we come back to the point we made at the beginning: whatever their reason for buying a business, everyone wants to make money. The way that they make money from the business, however, may differ. Buying a franchise as a way of buying yourself a job is quite common, and thereâ&#x20AC;&#x2122;s nothing wrong with that if it gives you the lifestyle, flexibility and control you seek. However, if youâ&#x20AC;&#x2122;re going to be investing your money, time and career in a business, thereâ&#x20AC;&#x2122;s an element of risk so you should look for it to pay you rather more than you could get by doing the same thing working for someone else. â&#x20AC;&#x2DC;In a lot of small businesses, thereâ&#x20AC;&#x2122;s no difference between a working ownerâ&#x20AC;&#x2122;s salary and the profit the business makes â&#x20AC;&#x201C; theyâ&#x20AC;&#x2122;re effectively the same thing,â&#x20AC;&#x2122; explains Scott Travis. â&#x20AC;&#x2DC;At the end of the year, the amount of profit you make is dependent on the amount of salary youâ&#x20AC;&#x2122;ve taken.â&#x20AC;&#x2122; Other factors, such as choosing to run a flasher car than the business really merits or overseas trips which combine business and holiday, may also impact upon apparent profitability. Thatâ&#x20AC;&#x2122;s why, when it comes to valuing a business for sale, accountants and business brokers do something called â&#x20AC;&#x2DC;normalising the accountsâ&#x20AC;&#x2122; to work out the true profitability. â&#x20AC;&#x2DC;This means working out what profit is left at the end of the year after removing all non-business expenses and a fair salary at market rates for the hours the owner actually does in the business (including directorâ&#x20AC;&#x2122;s responsibilities),â&#x20AC;&#x2122; explains Nick Stevens of Link Business Brokers. â&#x20AC;&#x2DC;This leaves us with a figure we call EBITDA: Earnings Before Interest, Tax, Depreciation and Amortisation. The value of the business is based on this figure and, depending on the industry and perceived risk, may be a multiple of twice to five times the value, although it is typically three to four times.â&#x20AC;&#x2122; So where do franchises sit on these measures? Well, as weâ&#x20AC;&#x2122;ve seen, wages and salary are interlinked, making it hard to judge return on investment. The rule of thumb is that the higher the risk, the higher return you would look for â&#x20AC;&#x201C; but franchises are generally regarded as low risk (which is why the banks like them, as we saw in point 3).

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This tends to mean returns are often at the conservative end of the spectrum until combined with other earnings. â&#x20AC;&#x2DC;On the other hand, the lower risk and the value of a being part of a well-known branded network often means a franchise is more attractive,â&#x20AC;&#x2122; says Philip Morrison of Franchise Accountants. â&#x20AC;&#x2DC;That makes it easier to sell at a higher multiple than you might achieve for an independent business.â&#x20AC;&#x2122; In fact, if youâ&#x20AC;&#x2122;ve taken advantage of the 10 Bâ&#x20AC;&#x2122;s on the way through, youâ&#x20AC;&#x2122;ve enjoyed the advantages of buying power, branding and bank finance deals; youâ&#x20AC;&#x2122;ve budgeted well and passed break-even quickly, youâ&#x20AC;&#x2122;ve used the business systems and benchmarking to maximise your profitability, enjoyed back-up and buddies and ended up building an asset which is worth selling. Thatâ&#x20AC;&#x2122;s why buying a franchise can make good financial sense. Get the buzz and you can fly higher, faster and further.

MORE INFO

To work out whether any particular franchise is the right one for you, youâ&#x20AC;&#x2122;ll need to do some research and ask lots of questions (see page 46). There are many helpful articles on the Franchise New Zealand website â&#x20AC;&#x201C; here are three of the most important: Your Buyers Guide â&#x20AC;&#x201C; Part-time, full-time, indoors, outdoors, retail or restaurant: whatever type of business youâ&#x20AC;&#x2122;re interested in, thereâ&#x20AC;&#x2122;s a franchise to suit. www.franchise.co.nz/article/2324 Find the Right Franchise â&#x20AC;&#x201C; A handy step-by-step guide to choosing the franchise that best suits your own needs. www.franchise.co.nz/article/639 The Beginners Guide to Understanding the Numbers â&#x20AC;&#x201C; Explaining what financial reports can tell you about the business youâ&#x20AC;&#x2122;re buying. www.franchise.co.nz/article/36 franchise.co.nz â&#x20AC;&#x201C; PUTTING PEOPLE IN BUSINESS

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FRESH THINKING

Maggie Donnelly

Mexicali Fresh starts a new chapter for experienced entrepreneur

aggie Donnelly cheerfully admits that she ‘had no interest in food other than eating it!’ before she started looking for a new business. Eight weeks after opening her Mexicali Fresh franchise in Napier, though, she says, ‘I’m very pleased with the choice I made.’ Maggie knows a good opportunity when she sees one. Having spent 25 years building an outdoor clothing brand from Nelson that exported round the world, when she sold up she decided to move to Hawkes Bay and seek a new challenge. ‘I wanted something that would interest me long term and that I could stand behind and promote with confidence. I know how hard it is to start from scratch so I also wanted something that was solid, well-supported and sustainable. ‘The food industry is notorious for being hard work, but I can assure you that nothing is as hard as trying to get fabrics from all round the world to create NZ-made clothing in the knowledge that everyone else is copying you! I looked very hard at a couple of options, and two things stood out for me about Mexicali Fresh: first, although it is a well-established franchise they had no outlet in Napier; second, my husband’s older children are big fans of the healthy food that Mexicali Fresh offers and are regulars at the restaurants in Auckland. That was the most valuable market research I could possibly get,’ she laughs. ‘You can’t spend 25 years developing a business without getting an instinct for how others are performing, and Mexicali Fresh are right up there. I wanted that branding, with those systems in place – the kind of things that can make all the difference to your chance of success.’ Having found the right brand, Maggie set out to find the ideal site with Mexicali’s help. They settled on a CBD location nearly opposite Napier’s Visitor Information Centre. ‘We had to wait six months for it to become available, but it was well worth it and we have been flat out ever since we opened.’

fresh, fast, flexible Mexicali Fresh first opened its doors in Auckland in 2005. A family business founded by experienced restaurateurs with their roots in 1970s California, it introduced New Zealanders to the fresh, crisp flavours of Mexican food. Today, there are 17 Mexicali Fresh franchises around the country with sister franchise Burger Wisconsin adding further buying power to the two companies. Both brands specialise in fast casual dining – the fastest-growing part of the eating-out sector. ‘People want restaurant quality food served quickly and in informal surroundings, and that’s exactly what we provide,’ explains Tyler Kerlin, the co-founder of Mexicali Fresh. ‘We offer fresh food, franchise.co.nz – PUTTING PEOPLE IN BUSINESS

Mexicali 11.indd 1

with local ingredients where possible and, unlike the fast food outlets, we prepare it fresh in store every day with a range of healthy choices. In some locations, regulars represent 80 percent of our business so we have a hugely loyal fan base who eat with us several times a week. That’s what Maggie saw, and we’re delighted to welcome her on board as she brings the kind of energy and brand awareness we look for.’ Napier represents the next stage of the Mexicali Fresh journey, with the traditional in-line counter service system being upgraded. ‘Customers order then sit down with a drink while their food is made fresh and brought out to them,’ Tyler explains. ‘It has worked very well in Napier, and gives us an alternative model that we can use in our future restaurants where that’s more suited to the local market.’

super-size my business There’s another attraction for people like Maggie, too – the opportunity to grow. Mexicali Fresh are keen to see franchisees develop multi-unit operations once they have proved themselves. Maggie says, ‘Ultimately, I plan to have three Mexicali Fresh outlets in the area, but such is demand that my immediate priority is to have a caravan which will allow us to cater for the massive demand for local weddings and events using the capacity from our CBD kitchen. It’s all about making the most of the brand’s reputation.’ For now, Maggie is putting in 14-hour days and thriving on the adrenaline rush that comes from seeing her new venture take off. ‘All the other franchisees told me that no matter how well-prepared I was, opening day would hit me like a rush because Mexicali Fresh is so popular, and they were right – it was overwhelming! But I had lots of the franchisor team there to help, and the support has continued ever since. Am I pleased I chose Mexicali Fresh? I have to say a resounding “Yes.”’ Mexicali Fresh is looking for enthusiastic, energetic people who are passionate about great food and customer service to open new outlets all around the country. ‘This advertiser info represents a great opportunity for ambitious owners to get into their Mexicali Fresh own restaurant business,’ says Tyler. www.mexicalifresh.co.nz ‘The investment required is around Contact $400,000 +gst and, as Maggie is Tyler Kerlin proving, business nous and lots P 0-9-973 4559 of energy are more important than M 021 411 144 hospitality experience. Contact us to tk@mrhltd.com find out more.’

11 14/06/18 9:04 AM

franchise development

PLACE, PREMISES, PRICE F

or Vaughan Moss, working with an independent property advisor and negotiator really makes a difference to his business. The Para Rubber boss firmly believes that franchisors have a duty of care to ensure the best possible location, fit-for-purpose premises and most advantageous lease agreement for franchisees. ‘You want your franchisees to succeed, so why wouldn’t you bring in an expert to give them every advantage possible?’ he asks. Vaughan’s philosophy is based on a long-term relationship with Parallel Directions which has benefitted many of his franchisees. Established by Peter Scott in 1988, Parallel Directions works for tenants to ensure they get the fairest deal from commission-driven real estate agents and rapacious landlords.

preparation pays dividends ‘When we started working with Peter, the first thing he did was to get to know all about Para Rubber’s products, services, customer demographics and psychographics. He also asked about the profiles of our preferred franchisees. Peter and his team consider this level of information a prerequisite for identifying appropriate locations and finding fit-forpurpose premises, before producing a comprehensive upfront analysis and recommendations. They also scope positive and negative influences such as proposed shopping centres, residential developments, road changes and so forth,’ explains Vaughan.

Parallel Directions helps franchisors get the best outcomes for franchisees

Peter Scott

location, premises, rent negotiation Although he much prefers to be involved right from the start of the process, as with Para Rubber, Peter can also provide a rescue service, as in the recent case of a small restaurant in an increasingly desirable area of Wellington. Unfair lease conditions were not only bringing the business to its knees but also preventing the owner from selling to new people keen to take the restaurant to the next level in a growing market. For a remarkably small fee, Parallel Directions took on the case and a fairer deal was struck. Parallel Directions works for tenants throughout New Zealand, finding and negotiating high street, destination, mall and office locations for business in all types of industries. ‘Franchisor, franchisee, independent business owner, it costs nothing to find out how we can help improve your business,’ invites Peter. ‘Call us today.’

advertiser info Parallel Directions Limited www.paralleldirections.co.nz Contact Peter Scott P 0-9-550 8501 M 021 896 649 pscott@paralleldirections.co.nz

www.ParallelDirections.co.nz

‘To be absolutely certain of achieving the best possible outcome for our franchisees, we involve Parallel Directions right from start to finish, including negotiating lease and renewal terms, liabilities and other risk issues. After all, premises and wages are the two biggest costs for most businesses, and with staffing costs on the rise you need to ensure you’ve got the right deal on property to make your business model work. ‘For us, Parallel Directions has proven to be an excellent investment every time – they have an understanding of franchising that is second to none.’

lower rent, faster profit One of the most rewarding projects to date for Peter Scott involves Anna Yule, Para Rubber franchisee in both Wairau Road and Henderson. ‘Vaughan originally got us on the case to find a location and premises that would be easily accessible for a key catchment area on Auckland’s North Shore. Our research and analysis pointed to Wairau Road in the vicinity of some big box retailers, then we located vacant premises with road frontage and ample customer parking. That agreed, it was then a matter of negotiating the best rental deal possible with the overseasbased landlord.’ The investment in professional help soon paid off. ‘Customer response to the location and premises was excellent, and with a motivated franchisee not burdened by an unfavourable lease, business was soon far ahead of projections,’ Peter says proudly, ‘and Anna and Vaughan were soon discussing a second store, this time in Henderson. Here again, Parallel Directions was involved all the way through, and Anna is already reporting plenty of customers attracted to the carefully-researched location near a busy intersection. ‘Obviously, the less rent a franchisee like Anna has to pay, the faster they can break even and move into profit, but using Parallel Directions also helps avoid franchisees being caught out further down the track with unreasonable renewal terms or maintenance costs. It helps franchisors and franchisees develop not just profitable businesses but sustainable ones, too.’

12 Parallel 12.indd 1

Find the best location AND secure a fair lease Commercial leasing is a specialist field, so use an expert and get it right. • Negotiate a fair deal • Handle renewal agreements • Discover strategies to improve profitability

Independent and trustworthy - we work for tenants! Phone: +64 9 550-8500 Email: info@ParallelDirections.co.nz Franchise New Zealand

Winter 2018

Year 27 Issue 02

14/06/18 9:03 AM

opportunity: food & beverage

BEING LOCAL After 10 years, The Coffee Club’s franchisees have made their café a community hub. No wonder they’re still growing

orking with your spouse could be a challenge for some, but Verne and Wendy Wilson have proven that, with The Coffee Club, it can also be a great recipe for success. The husband-and-wife team have just celebrated the 10th anniversary of their Manawatu café and are looking forward to many more. ‘We’ve learned to recognise where our own strengths lie and to encourage each other in those areas,’ says Wendy. Verne recalls, ‘Having worked as a tradesman for many years, I was ready to get into a less physically-demanding field. Wendy was ready to settle into a home-based lifestyle, too, after years travelling in a university job. We’d always been interested in hospitality but we had no experience, so we wanted to go into a franchise that would provide us with the tools and processes we needed to get into business properly. We looked around at a few different options, and really liked the processes that The Coffee Club had in place. The business model gave us good structure and right from the getgo Brad Jacobs and Andy Lucas (the New Zealand master franchisees) were very easy to deal with.’

proud to be part of it Founded in Australia in 1989, The Coffee Club had only been operating in New Zealand for two years when Verne and Wendy’s brand-new outlet opened on The Square in Palmerston North. Since then, Verne & Wendy have watched the franchise expand to 63 locations across the country and almost 400 around the world. ‘We’re proud to have been a part of The Coffee Club New Zealand from the early days,’ Verne says. ‘One of the things we really appreciate is having the strength of a major brand behind us, which has provided massive support from menus to marketing. And the group is so collaborative – if we have ideas to benefit the whole franchise, we can take them to Brad and he really listens and takes things on board.’ Wendy adds, ‘The systems were what attracted us to The Coffee Club in the first place, and they’ve been a constant help throughout the years. In hospitality, it’s not enough to just keep up with the trends – you have to be proactive. The way that The Coffee Club is always a step ahead in its technology and systems has allowed us to spend time on our business while they do the background work looking to the future.’

10 years and still growing 10 years is a fair while for a café to stay in the same site with the same owners and still be experiencing growth. ‘Actually, business has been steadily increasing throughout the time we’ve been here, and especially in the last five years,’ Wendy smiles. ‘We’ve always looked for ways to build our brand and success further.’ Those efforts were rewarded just three years franchise.co.nz – PUTTING PEOPLE IN BUSINESS

The Coffee Club 13.indd 1

Verne and Wendy Wilson

ago when Verne & Wendy were recognised as having had the largest annual growth of any of The Coffee Club outlets in New Zealand. The Wilsons attribute the longevity of their success not just to The Coffee Club’s systems and marketing, but to the way the franchise has helped them to establish themselves as a part of their community. ‘The Coffee Club is well-known for its brand of social responsibility, with campaigns such as the SPCA’s Cupcake Day and ongoing links with charity KidsCan, and right from the start they supported our local activities, too,’ says Verne. ‘We’ve been the main sponsors of Manawatu Netball Club since our early days, and are now also involved with the Central Pulse team and other areas of the sport. This has been a great link between us and our customers, and has allowed us to raise the profile of our business while getting involved in supporting the sport we love at a grassroots level. ‘Building communities is very important, especially in the regions. In a way, we run the place like an old-fashioned pub: we make sure that one of us is there every day during at least one of our peak periods and we sit and have a chat with the locals and regulars. It’s one of the little things we can do to make our customers feel valued, and it’s a part of the business we really enjoy,’ Verne says. ‘We want our customers to know our faces, and identify The Coffee Club with us.’

familiar space, great coffee ‘Verne and Wendy have learned to balance local presence with international standards while creating a space that feels familiar to its customers,’ says Brad Jacobs. ‘Our foundations are good food, great service and excellent coffee, and Wendy and Verne’s success shows that if you work our systems, they will work for you. ‘The Coffee Club is looking for more people like them to open new outlets throughout the country. Investment levels range from $350,000 to $400,000 depending on location and store model, and the potential rewards match the investment. A hospitality background is not necessary as long as, like these two, you have passion, commitment and the drive to succeed. If you have what it takes, please – get in touch!’

advertiser info The Coffee Club www.thecoffeeclub.co.nz Contact Brad Jacobs P 0-9-304 0008 M 0275 263 333 b.jacobs@thecoffeeclub.co.nz

13 14/06/18 9:05 AM

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Franchise New Zealand

Winter 2018

Year 27 Issue 02

14/06/18 9:05 AM

Melissa Tovgaard

Matt Tovgaard

the business that comes HIGHLY RECOMMENDED

V.I.P. Home Services franchisees value the support they receive

fter 11 years overseas, when Matt and Melissa Tovgaard returned to New Zealand they bought a house on a 10-acre section near Rangiora, a ute to help them maintain the property, and a V.I.P. Home Services franchise to give them a new source of income. ‘I’d always worked in event staging,’ says Matt, ‘but that market really didn’t exist here on the scale it had in Dubai or Melbourne – especially after the earthquakes. I’d always been a bit handy, though, and an outdoor business appealed.’ After looking into a few franchises, the couple settled on a V.I.P. lawn and garden business. ‘It was just me to start with,’ says Matt, ‘but after a couple of years, Melissa left her job as a legal secretary to join me.’ Melissa explains, ‘We came back to NZ for a change in lifestyle and while I took the office role to fulfil a financial need, I soon grew tired of the long hours, the commuting and not getting time to enjoy the home we had bought. Once Matt had plenty of work he said he could use some help, so why not go and work with him?’ A year and a half later, the pair have proven to be a great team. ‘Matt’s better with the power tools, so he’ll trim the edges of a lawn while I start on the mowing, or he’ll do hedges while I weed and clean up the mess he makes in the process of making things tidy,’ she laughs.

year-round business One of the most appealing things about V.I.P. for Matt and Melissa was the fee structure. ‘The monthly fees are fixed so, while the business has grown, the fees for the great service and support we get have stayed the same. The marketing of the brand is good, and being out on jobs a lot of the time with noisy gear, having a central message centre to pick up calls is invaluable. We’re not constantly missing calls because we can’t hear the phone ring; our clients can speak to a real person and we pick up the messages once we get back to the car.’ Having taken over an existing area, Matt and Melissa have grown a small business to a much larger one, more than doubling their turnover in four years. ‘It’s been important for us to find a happy medium,’ says Matt. ‘With an outdoor franchise, the work can vary from season to season, especially during particularly dry summers or wet winters. We’ve learned to find a good balance of work to sustain us year-round, with the occasional one-off job as well as our regular clients. You can’t pick up twice as much work over summer and expect to be able to keep it up all year – and you can’t spend all winter playing catch up because of a few rainy days.’ franchise.co.nz – PUTTING PEOPLE IN BUSINESS

VIP 15.indd 1

indoor and outdoor

As for many V.I.P. franchisees in both the lawn and cleaning services, one of the keys to success for the Tovgaards is focusing on their clients. ‘It’s not just about turning up reliably and doing a great job every time – we’ve built good relationships with our customers and a lot of them like to have a chat when we turn up,’ says Melissa. This personal service means that there is always strong demand for V.I.P. franchisees on both the outdoor (lawnmowing and gardening) and indoor (cleaning) sides, says Estelle Logan who, with husband John, is the national franchisor for New Zealand. ‘Unlike some franchises, V.I.P. customers meet the person who is actually going to do the job from the very beginning, so they know who is turning up to work on their property or inside their house. Many customers are so delighted with the service they receive that they recommend V.I.P. to their friends and family, and so the business grows.’

quality community But managing a growing business requires the right training, systems, guidance and support – also areas where the multiple award-winning V.I.P. franchise scores strongly, says Melissa. ‘Being a part of V.I.P. Home Services has given us our own community. Other franchisees are just a phone call away: we help each other out with advice on products, pricing, areas of expertise and even just moral support sometimes. We all have a good get-together locally with Estelle every month, and the franchise national conference where we got to meet others from around the country and share our ideas and knowledge was a highlight for us.’ V.I.P. offers new franchisees a flexible entry programme which allows them to select the initial level of income and investment they wish to make. The company provides thorough training in efficient operations and business management, and gives new franchisees four weeks’ paid training while getting established. ‘At a meeting in Auckland recently the franchisees in attendance agreed that V.I.P’s support and system is second-to-none,’ Estelle reports proudly. ‘They also agreed that their success is down to following the system, being proud of the brand advertiser info and having a commitment to quality, reliable service. If you’d V.I.P. Home Services like to join the team, we have www.viphomeservices.co.nz new and established businesses Contact ready and waiting in Christchurch, Nationwide Enquiries Wellington, Bay of Plenty/Waikato P 0800 84 74 96 and Auckland right now. Contact Estelle@viphomeservices.nz us now to find out more.’

15 14/06/18 11:59 AM

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.

BAKERS DELIGHT DELIGHTS KIDSCAN KIDS The Bakers Delight franchise has raised $45,156 for KidsCan with its nationwide Finger Bun fundraising campaign. During May, thousands of iced finger buns covered with red and blue sprinkles were sold throughout Bakers Delight bakeries, with $1 from every KidsCan Finger Bun and $2 from every KidsCan Mini Finger Bun 4-Pack donated to KidsCan. Bakers Delight had aimed to raise at least $30,000 towards providing Kiwi kids in need with essential basics like raincoats, shoes and socks. However, the bakeries have smashed that target by more than $15,000. ‘We are so proud of our bakeries,’ says James Morton, Bakers Delight New Zealand Country Manager. ‘They gave their all to this fundraising campaign and

were determined to raise as much money as possible for New Zealand children living in hardship. ‘Many of them have close relationships with schools in their area and know how difficult it is for kids and families that are struggling,’ he added. ‘It has meant a lot to our bakers to be able to give back to their local communities, and to be able to help some of the most vulnerable members of our society.’ KidsCan is a Charitable Trust that provides food, clothing and basic health care in schools to enable Kiwi kids living in hardship to reach their full potential. The organisation currently works with over 700 low decile schools across New Zealand.

According to the 2017 Survey of Franchising, almost a quarter of all franchises in New Zealand contribute over $100,000 each to charities every year. Eliza Tham, the franchisee of Bakers Delight Pinehill, with Rhianna, Mia and Inoke of Year 4 at Onepoto School in Northcote, North Shore

in brief • Our congratulations to Mike Riley, the McDonald’s manager who has received a New Zealand Bravery Decoration in the Queen’s Birthday Honours for his cool actions when a gunman walked into his Upper Hutt store. He kept many people from harm.

• The Government has announced that it will review the Holidays Act 2003 and make recommendations for change within the next 12 months. This will be welcome news for franchises who are battling with compliance issues under the scrutiny of a Labour Inspectorate which announced last year it would be specifically targeting the franchise sector.

McDonald’s embraces Te Reo A selection of McDonald’s bestloved items has been translated into Māori for customers in Hastings who choose to use the Māori names when ordering. Crew in the Hawkes Bay franchise – 60 percent of whom identify as Māori – are practising their pronunciation skills.

is a Koata Pauna. Some signage has also been made bilingual.

‘Some of them were a wee bit nervous but I hear in the staff room – we have menus in there – people are trying to get their pronunciation right and there’s giggles and laughter but everyone is actively trying to do their bit to make it work,’ operations manager Carmel Berghan told Māori Television.

The Hastings McDonald’s is operated by franchisees Marcus and Lynette Pohio, who also own restaurants in Napier, Havelock North and Taradale. Marcus worked for McDonald’s before becoming a franchisee in the early 2000s. The couple were approached by Ngati Kahaungunu to develop the menu and signage following the interest last year in a video which showed Hastings staff member Jershon Tatana talking to customers in Te Reo, which was credited with encouraging others to start placing their orders in Māori.

On the Te Reo menu card, a Big Mac is Makanui, a McChicken is Pākīheihei and a Quarter Pounder

The Pohios plan to roll out the menus in their other McDonald’s franchises in Hawkes Bay.

Maturing economy still offers growth The latest Quarterly Economic Overview from Westpac suggests New Zealand is on track for moderate growth over the next few years but there are uncertainties. Westpac Chief Economist Dominick Stephens says, ‘The housing market has cooled and consumer spending has slowed in response. The construction sector is also taking a breather, and population growth is slowing. But there are positives too – the terms of trade are strong and government spending is stimulatory. This mixture suggests the cycle will age gracefully rather than expire suddenly, with middling rates of GDP growth.’ In fact, Westpac’s latest forecasts of GDP growth over the next few years are slightly higher compared to the previous Overview in February, given the prospect of an extended period of growth in government spending. In addition, the high level of the terms of trade

and strong growth in tourism are set to provide an ongoing boost to national income. ‘However,’ the Overview points out, ‘Net migration is coming off its highs, reducing one of the sources of easy growth for businesses in recent years.’ The official statistics suggest while GDP grew by 4% in 2016 (the fastest pace in more than a decade), growth in 2017 was slower at 2.9% – still a positive figure and possibly a slightly pessimistic one, as statistics for previous years were all revised upwards recently. ‘To some degree, this slowdown is likely to be transitory,’ suggests the Overview. ‘Business confidence has remained low since the election, which in part reflects nervousness about the impact of the new Government. We are expecting a hiatus in business hiring and investment over this year, with growth resuming in the following years.’

Mixed sentiments as business confidence stays low Franchize Consultants’ latest quarterly Franchising Confidence Index reflects general caution about the potential impact of local and worldwide uncertainties, with particular concern about access to finance and potential staff shortages. However, there’s very positive sentiment toward franchisee sales levels and both franchisors and franchise service providers still see strong growth prospects ahead.

16 EDIT Web News 16.indd 1

Franchisor sentiment toward access to financing dipped to a net negative 21 percent but service providers didn’t agree, with sentiment increasing from a net 7 percent to a net 14 percent.

Daniel Cloete of Westpac says that the concern about access to finance is surprising, given the large number of franchise finance deals that the bank is currently approving. ‘I suspect the reason for the discrepancy is that many of the franchisors

responding to the survey were from the lower investment service sector. With house prices and personal debt at very high levels, their prospective franchisees may find it difficult to find finance because of debt servicing issues – ie, their personal debt could be too high to service from the projected business income. In general, as long as the numbers work, though, franchise finance is readily available.’ Both franchisors and service providers are concerned about the availability of suitable staff, though, with franchisors going from a net negative 16 percent

Franchise New Zealand

Winter 2018

Year 27 Issue 02

14/06/18 9:06 AM

www.facebook.com/FranchiseNewZealand

www.twitter.com/FranchiseNZ

SUPPLIERS STRUGGLE AS CONSUMERS DITCH PLASTIC After years of concern, the tide seems to be turning on the use of plastic straws. Wellington has banned them from its waterfront cafés and there are moves to make the whole city straw-free. But the speed of the trend is causing problems, with demand for non-plastic alternatives meaning suppliers are struggling to keep up.

The Coffee Club New Zealand is planning to phase out the use of plastic straws but hasn’t managed it yet because of supply issues. ‘We wanted to change to ecofriendly paper straws a few months back but due to the high demand and large size of The Coffee Club group, our supplier simply didn’t have sufficient stock for us to make this switch,’ says director Andy Lucas. ‘In fact, it has been postponed twice already as we wait for the supplier to advise to have sufficient stock on hand – early June is what we have been advised. The new straws will be made with paper sourced from managed plantations, are carbon neutral and commercially compostable and recyclable.’ McDonald’s shareholders in the US recently voted against a proposal to ban using plastic straws. The company says it already has a goal that by 2025, ‘All of McDonald’s guest packaging (including straws) will come from renewable, recycled or certified sources,’ and didn’t want a single issue to detract from its overall commitment. ‘In New Zealand, we already have a few restaurants where they’ve stopped giving out straws by default,’ says Simon Kenny, the Head of Communications for McDonald’s NZ. ‘The idea is that while our packaging suppliers work on new fibre-based straws, or other packaging that does not require a straw, we could reduce the number of straws used by customer behaviour change. Reports

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 back from the restaurants are that, after a few months, local customers are changing habits and there’s been a reduction in straw use. The trial is also being run in Rangiora, and we’re assessing next steps.’ But are consumers prepared to wait seven years to see change? Cindy Buell of Mariposa Restaurant Holdings, which owns the Mexicali Fresh and Burger Wisconsin franchise brands, says, ‘We have phased out the use of plastic straws in both brands. Each store is handling the transition on their own with the goal of being plasticfree this year. ‘At Burger Wisconsin we have paper straws behind the counter and we give them to people if they ask for them. At Mexicali Fresh, we don’t provide straws unless they are asked for. All stores are using coloured paper straws.’ The brand engages with its customers through energetic use of social media, which provides instant feedback on such initiatives. ‘When we announced this move several months ago on social media our customers were delighted and gave us lots of enthusiastic “thumbs-ups”,’ Cindy reports.

last quarter to negative 22 percent, and service providers from 0 percent to net negative 50 percent. Although franchisors in industries such as hospitality and retail have previously expressed concerns about the additional cost implications of the higher minimum wage, some franchisors have told Franchise New Zealand that they are already paying above minimum wage in order to attract and retain suitable staff and see the increases as less of an issue than immigration. This may be reflected in ongoing concerns about franchisee operating costs and franchisee profitability levels. Refinements of some franchises’ business models may be required if staffing costs continue to rise, with more reliance upon technology as is already evident in the supermarket space. franchise.co.nz – PUTTING PEOPLE IN BUSINESS

EDIT Web News 16.indd 2

Laws that can bite

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 14/06/18 9:06 AM

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opportunity: home & commercial services

a name to

TRUST

New franchisees discover Jim’s Cleaning opens doors to new business

ollowing up leads can be a nerve-racking part of building a business if you’ve never done it before. ‘But the moment you say you’re from Jim’s, it’s like you’ve waved a magic wand,’ says Ana Lien, the Jim’s Cleaning franchisee for Mangere East. ‘Any resistance or mistrust instantly disappears.’ Jenny Smith, the Jim’s Cleaning franchisee in Cambridge, agrees. ‘My husband Ian virtually had to drag me along to our first call but that’s when I experienced the power of the Jim’s brand. Everyone seems to know Jim’s and has a positive attitude towards us.’ This comes as no surprise to Brendon and Tracey Jones. With over 20 years’ experience in sales and marketing, the couple became the Auckland regional franchisors for Jim’s Tree & Stump Removal in 2014. They found the Jim’s franchise model so effective that last year they expanded by taking on the role of New Zealand regional franchisors for Jim’s Cleaning.

for hard-working go-getters ‘With some 4,000 franchisees, Jim’s is the biggest home services franchise in the world,’ explains Brendon. ‘In New Zealand alone, there are over 400 Jim’s franchisees across six divisions and the brand is recognised by 96 percent of the public. That means massive opportunities for people like Ana and Jenny who want to have their own business within a reputable framework. We currently have just 21 Jim’s Cleaning franchisees here but plan to grow to 300 over the next three years so we are looking for lots of honest, hard-working go-getters.

well rewarded Jenny and Ian escaped Auckland for the Waikato town of Cambridge in 2016, but even with a background in hospitality and administration Jenny found it hard to find employment. Ian found the same. ‘We’d been interested in franchises for quite some time, so we decided it was time to look seriously and came across Jim’s Cleaning,’ says Jenny. ‘We felt reassured that it was a member of the Franchise Association, liked the fact that it was a fixed royalty so you weren’t financially penalised for doing well, and were impressed by the Pay-for-Work Guarantee. ‘We learned that cleaning was more rewarding than you might expect if you were prepared to work at it. For us, Brendon and Tracey clinched the deal by being patient, giving us all the information we needed but never putting us under pressure. We started in January and have already employed a part-timer to help us handle demand. There’s tremendous potential and the Jim’s brand is opening doors for us advertiser info all the time.’ As Tracey says, ‘Franchising is all about working for yourself, but not by yourself. If you want a proven business model with a brand that really helps you, contact us at Jim’s Cleaning and find out more.’

Jim’s Cleaning Contact Tracey Jones M 021 343 445 tracey.jones@jimscleaning.co.nz

‘The total investment is a very reasonable $34-36,000 +gst depending on region and includes equipment, comprehensive training and ongoing support, customised accounting and time management apps, discounts with major suppliers, and powerful marketing packages with website and Facebook promotion to help generate new clients. ‘On top of all that is Jim’s famous Pay-for-Work Guarantee which ensures an income of up to $1100 per week while you’re getting established. After that, it’s not unknown for a Jim’s Cleaning franchisee to turn over $40,000 a month – an amazing return on investment.’

family first Ana and Jenny followed very different paths to Jim’s Cleaning. Samoan-born Ana remembers her early years involving crowded accommodation and little money but enduring optimism for the future. ‘I started studying nursing and then met my future husband Jacques and we had our two sons, Ryan (22) and Derek (17),’ explains Ana. ‘For me it has always been family first so I worked in various jobs while they were growing up. Talking over the dinner table one day about our dream of being in business for ourselves, Derek suggested that I look at a cleaning franchise – so I did. I thought Jim’s Cleaning was head and shoulders above the rest and there was an opportunity here in East Tamaki, so we started in June last year and haven’t looked back since. Jacques and my mum are a big help and when we get overloaded, I have two cousins to call on. The demand for Jim’s Cleaning is really big, so business is great!’

0800 454 654

Ana Lien: ‘It’s like you’ve waved a magic wand’ franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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19 14/06/18 3:13 PM

buying a franchise: financial matters

GETTING THE MONEY Daniel Cloete of Westpac explains how a specialist banker can help you get what you need to buy a franchise

s the cover story in this issue shows, there are lots of good financial reasons for choosing a franchise over other models, and that’s as true for existing businesses as it is for new ones. For prospective investors, though, one of the most important factors would be the ease of finding the necessary funding.

Choosing a franchise not only gives you access to proven figures when it comes to initial costs and the level of working capital required, but also enables you to benchmark the financial performance and KPIs of your chosen business against others in the same group (read more about this at www.franchise.co.nz/article/2719). Having all of that information available can really pay off when it comes to developing your business plan and funding application.

see your specialist franchise banker as an ally Obtaining bank finance might seem to be a big issue, especially for first-time buyers of small businesses. In fact, it could essentially be a straightforward process which uses the same information you need to assess the business anyway. One thing that the potential franchisee should remember is that he or she is the bank’s client – not the franchisor! It is therefore in the bank’s interest that its clients join a stable, profitable franchise system without

paying too much for the business. You should therefore consult a specialist franchise banker and see them as an ally that has your interests at heart. A good specialist already knows most of the franchises available and can quickly see if franchisors’ claims (like income or expenses) are realistic. They can also offer different funding structures, making the best use of your equity and the ability to partially fund against your franchise business’s cash flow. This can be the case even with a new outlet, if the franchise is a proven one.

Daniel Cloete

This does not mean you should not do a proper assessment yourself. Your bank is going to expect you to know the business that you are planning to buy and its financial position intimately. By doing your own research and using experts like franchise-experienced accountants and lawyers, you can save yourself time and money and identify the right business opportunity for you.

what will your banker require from you? So what information does a bank require to process a prospective franchisee’s application quickly and effectively? This is sometimes a source of great anxiety but it need not be a problem at all – most of the information will become available anyway in the process of assessing the business. Cashflow Projection. A bank typically needs a 12-month cashflow projection for the proposed business, including a list of the assumptions used to determine the figures. If the business is an existing one, the bank will also want to see the historic financial accounts for an existing business. In the case of a new franchise, the franchisor may provide cashflow projections based on expectations and on what other similar stores in the system are doing. These are not guarantees, of course, but in a solid system with a good track record they can give a good indication of possible performance. If done properly (with the assistance of your accountant),

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Franchise New Zealand

Winter 2018

Year 27 Issue 02

14/06/18 9:07 AM

cashflow projections will tell you about the real value of the business as well as how much bank finance you need to obtain. Information. The bank will want to see a breakdown of the purchase price of the franchise and factors like details of the franchise location and demographics of the area if applicable. It will also look at the buyer’s own financial position. Business Plan. Producing a business plan is a very worthwhile exercise and need not be elaborate in most cases. It will help you better understand the business you want to purchase, focus your thinking, and convince the franchisor and financier of your abilities. It should include aspects like an explanation of how you plan to run the business; who will be operating the business (yourself, manager, family members) and their abilities; working capital required; information on the market environment and background on the specific franchise under consideration. Finance Request. Getting the finance you need is not usually a question of just asking for a loan. You want to borrow the right amount of money only when you need it and on the best possible terms. Different needs can be financed in different ways: for example, short-term working capital via overdraft; medium-term business finance via a term loan; funding equipment or vehicles via equipment finance (this is usually preferable to leasing as you end up owning the item, enjoy the same tax benefits and can use the item itself as security). The bank would look at the term of your franchise agreement, the debt servicing capabilities of the business and the particular needs of the industry in determining the best mix for your individual needs.

how much will the bank be prepared to lend you?

As always, the question is not, ‘How much can you borrow?’ but rather, ‘How much can the business afford to repay while still allowing the owner a decent living?’ You (and your bank) would not want you to be unsuccessful because of being over-geared. The current historically low interest rates could easily lull you into taking on too much debt, so you want to look at what happens if interest rates increase? Remember also to consider any tax implications in making the calculations – this is another area where the advice of a franchise-experienced accountant is vital.

Specialist franchise law advice. Welcome to the team Hamish Walker.

Hamish Walker Partner, Wellington

Katrina Hammon Partner, Auckland

m +64 27 288 2339

m +64 27 348 4814

hamish.walker @duncancotterill.com

katrina.hammon @duncancotterill.com

We welcome Hamish Walker to the Wellington partnership and our national franchising and licensing law team. Hamish joins Auckland based partner Katrina Hammon. Both work nationally with leading franchise networks and well known brands.

Moving on tomorrow. Today.

duncancotterill.com

The bank will also look at how much money you are prepared to put in yourself; the security you can offer; your financial record of accomplishment and business acumen; and other factors if applicable. In certain exceptional cases with proven systems where the equipment or stock lends itself to that approach, they may also lend against the value of the business itself. This can reduce the total security required but, because of the many variables involved, it will be judged on a case-by-case basis.

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Before committing yourself to any purchase, you should determine how much finance you require and involve your banker in the decision-making process on the required amounts, terms, timing and mix of financial solutions that will best meet your needs. Remember: • Your bank values your custom and wants to make it as easy as possible to obtain finance for the right business. The good news is that, in the case of franchising, funding will be available for profitable businesses from strong brands.

• Look at the services and added value that your bank can offer over the longer term after obtaining finance. You are in this together for the long haul and informed relationship banking can make a huge difference to the eventual success of your business.

Daniel Cloete is the National Franchising Manager for Westpac. 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

Westpac 20.indd 2

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• In obtaining finance, you are entering into a long-term financial relationship with your franchise banker built on trust. This makes it important for the bank to look after your interests.

Make sure your franchisees and staff receive the same messages - messages you control

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21 14/06/18 9:07 AM

opportunity: food & beverage

put a ring on it T

he products served by the average café rarely match up to the carefullyarranged photographs designed to sell them. That’s why Epiphany Café made such an impression on us recently. Not only were their signature donuts beautifully decorated, but the iced tea looked even better than the picture. That sort of attention to detail comes as no surprise when you learn that Jeths Lacson, who developed the business with business partner Mark Epifanio, is an engineer by training. He’s put the same care into the development of the Epiphany Café franchise, working with an experienced franchise consultant to develop a business model that is fair, detailed, sustainable and profitable. As a result, the company has grown rapidly with seven outlets already open in the Upper North Island. Now Jeths and Mark are looking for two master franchisees to expand and support the brand in the Lower North Island and the South Island. As most of the items Epiphany franchisees sell are centrally-baked, master franchisees need their own bakery and warehouse facility, which could be combined with a full café to minimise costs and maximise profit. The process ensures consistently high standards of quality for Epiphany Cafe’s pillow-soft, artisanal gourmet donuts. There’s a range of around 30 flavours, including cookies & cream, hazelnut almond, raspberry custard, salted caramel, green tea and tiramisu, with different flavours on different days to keep customers discovering new favourites. Other baked products include muffins, quiches, slices and sausage rolls. The café menu is accompanied by beverages including coffees, teas, iced drinks, smoothies and frappés. ‘It’s been so popular that we already have a waiting list of people who want to buy franchises, and people offering us prime locations, which is why we need two master franchisees to take the brand into other areas,’ Jeths says.

good numbers, great products

Eddie Agnes

Eddie and Marisa Agnes opened their Epiphany Café in Auckland’s Northwest Mall just a few months ago. Eddie has his own small accounting business as well as working in corporate accounts departments, so had all the skills he needed to analyse the franchise as a business proposition before going ahead. While the numbers looked good, it was Epiphany Café’s ‘wow factor’ that really made him sit up.

franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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Epiphany Café needs master franchisees with food sector experience to take a winning local brand nationwide ‘Epiphany isn’t a typical café – it’s catchy and vibrant, with really creative presentation of its products,’ Eddie says. ‘Although people love donuts, there’s no established donut brand here in New Zealand and we offer a real quality product developed for this market – people always talk about our great taste and compare us favourably to anything else they’ve tried.’

The Epiphany Café model appealed to Eddie for several other reasons: with centralised baking, there’s no need for expensive equipment, specialised staff or early starts. ‘That made it affordable and enables me to go on working full-time as I build the business, appointing staff to run the café while I manage the financial side and paperwork. It’s a straightforward operation, you place an order and it is delivered the next day, so you just have to focus on delivering excellent customer service that keeps customers coming back. ‘Long term, once we’re making a good income from our first store I’d like to open another couple of Epiphany Café outlets and become a multi-unit franchisee. It’s very achievable. As with any new business, it takes time, commitment and effort to get where you want to be, but the business is very young so the opportunities are endless.’

serious opportunities That applies to the master franchise opportunities, too. With people like Eddie keen to open outlets around the country, Jeths is looking for individuals, entrepreneurs, companies or partnerships prepared to take up the master franchises and establish the bakeries. ‘The investment required to establish a production line is around $800,000 to $1 million,’ says Jeths, ‘and will require serious commitment. Candidates need to be: • Well-capitalised, able to build a highly profitable business over time. • Experienced in the food sector with strong business management skills. • Entrepreneurial spirit, while being able to follow and enforce proven systems. • Able to drive the aggressive growth of sub-franchisees in their region. • 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. • Positive leadership and motivational skills. ‘We have a fast-growing brand with a locally-developed product using local ingredients and a business model that has been designed specifically for the New Zealand market,’ says Jeths. ‘By taking the opportunity to expand nationally now, we can provide something different, and something massively popular in cities and towns throughout the country. ‘Epiphany Café is about quality food and quality coffee that meets the needs of New Zealanders. Our business model is proven in multiple formats including mall kiosks (cabinet food, no cooking) and full café (with advertiser info kitchen) and we offer take-home Epiphany Café boxes, catering options and even www.epiphanycafe.co.nz fundraising programmes to provide Contact multiple income streams. Master Jeths Lacson franchisees can cater to both formats M 021 337 329 – contact me today to find out more admin@epiphanycafe.co.nz about the opportunity.’

23 14/06/18 9:07 AM

opportunity: auto services

ON THE ROAD AGAIN Top business opportunities with Touch Up Guys

wo years ago, Sam Patten bought a Touch Up Guys franchise in central Auckland from Mike Harper, who was selling his successful business after 19 years. Now Sam himself is moving on, having been offered an opportunity back in the corporate world that is simply, ‘Too good to refuse.’ Does he regret his time as a franchisee? Not a bit of it. ‘It’s been a blast,’ says Sam. ‘I wanted to learn how to grow a business as an owner and Touch Up Guys has been everything I hoped and expected. With the experience and business acumen gained from running my own business, my confidence and skill set have taken a huge leap,’ he grins.

rock-solid, highly profitable The Touch Up Guys is a mobile service that repairs bumper scuffs, stone chip scratches and other damage. As Sam points out, the ever-increasing number of vehicles on New Zealand roads means the business is rock-solid and highly profitable, as Touch Up Guys has proved for more than 25 years. ‘Touch Up Guys gives you all the training and support you need, and if you have an eye for detail and follow the system, it’s pretty straightforward,’

Sam Patten

says Sam. ‘Mike had already established excellent relationships with many commercial and private customers, and because there’s no shortage of work, I built the business even more. If the next owner is enthusiastic and does the same, they will make great money and in a couple of years could even put a second van on the road.

‘Touch Up Guys franchisees pay only a set fee and not a percentage royalty, meaning the harder I’ve worked, the more I’ve earned. If you’re interested, I’d be happy to take you round.’

find out more The total investment for a Touch Up Guys package is between $88,000 and $120,000 +gst, depending on van leasing options. The fee includes the mobile workshop, all equipment, full training on the Gold Coast and an exclusive territory. ‘Touch Up Guys offers a very profitable opportunity for anyone prepared to put in the effort,’ says Martin Smith, the company’s NZ master franchisee. ‘Our ideal franchisee is someone who likes working with their hands and is a bit of a perfectionist to match up to our glowing reputation advertiser info among the car dealerships and the general public. Touch Up Guys Sam and Mike have built a really first-class business in Newmarket for some lucky person to step into, and we have opportunities in many other parts of New Zealand, too. Call me now to learn more.’

www.touchupguysfranchise.co.nz Contact Martin Smith P 0800 286 824 M 021 721 430 martin.smith@touchupguys.co.nz

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Franchise New Zealand

Winter 2018

Year 27 Issue 02

14/06/18 9:08 AM

opportunity: financial services

if you have a small network of bankers, accountants and lawyers who understand the value of what you can provide then it’s fairly straightforward.’

CAPITAL BUSINESS

Fifo Capital enables franchisees to make good returns using their own money, says Nigel Thomson

ith experience both as a banker and a business owner, Nigel Thomson understood exactly the sort of cashflow challenges that companies can face when he launched Fifo Capital in Auckland back in 2005. Since then, Fifo has established over 70 offices in New Zealand, Australia, England, Ireland and Canada, and its franchisees have helped provide more than $1 billion in growth capital (over $125 million to New Zealand clients alone) through invoice finance and business loans.

After establishing Fifo Capital very successfully in Australia, Nigel and his family returned to New Zealand. ‘We currently have seven franchisees here – who we call business partners – and we are aiming to double that number within the next couple of years,’ he says. ‘New Zealand businesses in all sorts of industries, from construction to manufacturing, certainly need our services, and we provide the immediate short-term finance that banks often can’t.’ Invoice finance is a way for businesses to gain immediate finance to help them through the problems caused by slow-paying clients, unexpected cashflow bumps or unforeseen business opportunities. ‘It’s quite simple,’ Nigel explains. ‘The company invoices their customer then talks to one of our franchisees. The franchisee can offer fast verification process through our Central Management System then provides funding based on the value of the invoice. The customer then settles payment of the invoice direct with the franchisee. ‘It’s simple, fast and flexible and, unlike a lot of bank finance, doesn’t require real estate as security. In fact, sometimes banks will pass their clients to us to help with short-term finance, and then we pass the client back to the bank once the problem has been overcome.’

sound system Fifo Capital franchisees don’t need a huge client base. ‘In New Zealand, the average client transacts $68,000 each month, so with just three clients using them each month a franchisee can have a very good business,’ Nigel explains. ‘Most clients remain with us for a year or two, so you do need to find new clients, but you only need a handful at any one time and

Franchisees invest their own finance, as well as accessing more from within the Fifo Capital network. Typically, a franchisee will invest $150,000 of their own funds to get started. ‘The more you have, the more you can earn,’ says Nigel, ‘although franchisees can also access finance from each other to fund larger projects and share the risk. Having said that, the great majority of our transactions are insured against bad debt, so the risk is minimal. Our system is actually very, very sound and bad debts represent less than 1 percent of everything we have written so far. The Fifo Capital franchise has genuinely made many millionaires among our business partners and several multi-millionaires too, with several New Zealand franchisees earning over $200,000 per year.’

understanding business

So what does Nigel look for in a new franchisee? ‘They need to be business literate, but don’t have to have worked in a bank. The best performers have often been business owners themselves or have worked at the right sort of level to understand the pressures and stress of cashflow management. They do need sales skills, as the early days will involve a lot of prospecting and meeting with potential clients, but it’s more of a consultation approach. They have to have good people and communication skills and be able to respond quickly to people’s needs, then stay in touch and maintain the relationship, dropping in sometimes or catching up over a coffee.’ The franchise itself costs $49,500 +gst for a turnkey operation, plus the working capital of course. ‘Our training takes you through all the systems we use to generate business, assess clients and manage workflow through to transaction, and we’ll provide on-the-spot support as you start meeting potential clients.

‘We have vacancies for new franchisee business partners in many parts of the country, including Northland, Waikato and the Central North Island, Bay of Plenty, Taranaki, and additional opportunities in Auckland and Wellington. Existing franchisees are also keen to see more partners come on board.’

answering questions Nigel says that the three biggest questions which are asked by potential franchisees are: How do I get leads? ‘Apart from those you develop through your own contacts, we operate a centralised lead generation programme and allocate them according to location or via rotation for franchisees to follow up.’ How do I know I’ll get repaid? ‘Transactions can be insured against nonpayment so it is very safe. Our systems are very thorough and pre-qualify suitable companies as clients. In addition, insurance effectively costs nothing as costs are passed on.’ How do I know I won’t blow it? ‘Fifo Capital has been doing this for over a decade and has developed first-class financial and business management and support systems. If you follow these, apply them and put in the work, then you have every chance of building a substantial and sustainable business.’ ‘This is a white collar, office hours, business-to-business opportunity,’ Nigel concludes. ‘It’s ideal for experienced business people who have the capital and commitment to succeed. If you’re interested and think you have what it takes, contact me today.’

franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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advertiser info

Fifo Capital www.fifocapital.co.nz Contact Nigel Thomson P 0-9-302 0949 M 027 434 6262 ask@fifocapital.co.nz

25 14/06/18 9:08 AM

buying a franchise

MASTER PLAN

Want a bigger opportunity? Taking up a regional or national master franchise could offer the challenges and rewards you seek, suggests Simon Lord

ome people think of ‘buying a franchise’ as being about buying a café or a cleaning business and working in it yourself – and for many people, that’s exactly what they do. If they want to expand beyond that, they buy a second or third outlet, or employ staff to handle more business. But there is another way to expand through franchising, and that’s to acquire a master franchise. A master franchisee takes on some of the responsibilities for developing the franchise in a particular region, or even on a national basis. They recruit, train and support individual franchisees and, in some cases, may also set up their own operations. In return, they generally receive a proportion of each new franchisee’s initial and ongoing fees – these arrangements vary from business to business. Some master franchisees at national level may not sub-franchise at all, retaining ownership of all their own outlets, like Starbucks and Wendy’s, for example. Some, like The Coffee Club, have no company-owned outlets, focusing totally on supporting franchises. And others may operate a mix of company-owned and franchised outlets, like Pizza Hut. Look through this magazine and you’ll find a number of master franchises available. These include national opportunities such as Hudsons Coffee, Hog’s Breath Café and Gloria Jean’s, and regional masters like Epiphany Café, Portermark, Jim’s and V.I.P. Home Services. Some are more suited to large companies with access to finance and an established infrastructure, while others may be taken on by individuals or couples looking to start small and grow big. Different franchises use different terms, which can get confusing: master franchisees may also be called master licensees, master franchisors, area franchisors, national franchisors, regional franchisees or almost any combination of the above. To keep things simple, in this article, we’ll stick to ‘master franchisee’, and call the individual operators ‘sub-franchisees’.

your own region Gary Turton is a regional master franchisee for Jim’s Mowing. His region covers Auckland’s North Shore, where he is responsible for 25 sub-franchisees, as well as having customers of his own. He bought the master franchise after having run his own successful IT business. ‘I saw that a strong, established brand like Jim’s provided the ability to leverage my skills to earn more and build a business more quickly than doing it myself,’ Gary says. ‘I had a long-term vision to create an ongoing income stream while doing minimal work – well, I was wrong about the minimal work part!’ he laughs. ‘My roles include business marketing and sales; subfranchisee selection; business and marketing trainer; technical trainer; brand guardian; coach; co-ordinator; adjudicator; motivator; counsellor; information hub; supplier deal maker and liaison. I’m also a forecaster – both of weather and potential personal or team issues – a backup mowing contractor and a lender of gear.’ As Gary’s list suggests, one of the prime requirements that master franchisees need at a regional level is people skills. ‘Learning to mow lawns and run a business is one thing, but learning to be a master franchisee is another thing entirely,’ says Gary. ‘When I joined Jim’s, I had to do a week-long master franchisee induction course before they would accept my payment and allow me to sign. Some potential master franchisees were rejected from the course as their attitude was wrong. This really impressed me.’ Gary says that there are many advantages to being a master franchisee. ‘The

26 EDIT Masters 26.indd 1

hard work has already been done for you: the system has been created and is proven to work. You have a lot of flexibility within your region and you are able to take time off and still keep earning. You also benefit directly from your successful efforts. I love seeing my sub-franchisees succeed, often beyond their wildest dreams, or hearing that my training advice has worked. Because I select, train and support them, their achievements are a direct result of what I do.’ Of course, there are downsides, too. ‘You have to work within the system and so decisions can be slower than you might like sometimes, and the other master franchisees I work with might not share my ideas,’ admits Gary. The biggest concern, however, is that shared by franchisors and sub-franchisees alike. ‘When you are recruiting, the consequences of a poor selection decision can be very long-lasting and damaging because you have to divert resources until the sub-franchisee either comes good or moves on. But the overwhelming majority of my team have been successful, which is why the business has more than tripled in my time.’

bringing in an overseas brand Jim’s was already a well-known brand in New Zealand before Gary took up his master franchise, but that’s not usually the case if you import a franchise from overseas. That means that, although a franchise system may be wellestablished in another country, its success is not assured in NZ where market conditions and competitor activity are different. In many instances the creation of brand recognition – so vital to attract both customers and sub-franchisees – will have to be established by you, the master franchisee. Of course, the franchisor will provide basic marketing material but the core effort must be made inside the territory itself. A national master franchisee therefore needs to be more entrepreneurial and have the skills and resources to develop the franchise locally. Wise buyers seek to reduce the risks as far as possible by carrying out their own thorough research into the local market for the product or service, and confirming that the price asked and the number of outlets proposed by the franchisor is realistic. Overseas companies often have little understanding of the local market or the dispersed nature of our population, so it pays to use local specialists to analyse any opportunity.

a different perspective One hugely-experienced US-based consultant who represents franchisor clients looking to expand internationally, says that New Zealand is an attractive destination for international brands because it’s an Englishspeaking, franchise-friendly country. However, he is also aware of two huge limitations: market size and investment ability. He told us last year that his clients fall into two broad categories: one is food, the other includes education, retail and service. Food franchises require a minimum unit commitment from a master franchisee in order to cover the costs of country start-up. All but one of the brands he represents require a 10-unit minimum commitment: any less and it is difficult for a franchisor to justify committing resources that could be utilised in bigger markets. His experience is that New Zealand entrepreneurs are frequently unwilling or unable to commit to a 10-unit minimum, whether on a companyowned or sub-franchised basis. For education, retail and service franchises, minimum numbers are less of an issue but the start-up costs are considerable. The minimum master franchise fee for any of his brands is US$150,000. From the franchisor’s point Franchise New Zealand

Winter 2018

Year 27 Issue 02

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Join the e-bike REVOLUTION

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of view, that figure just about covers the country start-up and support costs for the first two years of the master franchisee’s operations when number of units and royalties are very low. From the master franchisee point of view, however, it represents a huge commitment when added to the research and establishment costs of a pilot operation as well as the investment in recruitment and support of the first sub-franchisees. The result is that overseas franchises can find it difficult to attract New Zealand master franchisees with the requisite capital, and New Zealand individuals or companies often feel that it will be difficult to recoup the investment within the expected time frame. Informed discussion and careful negotiation may be needed.

learn all you can I recently met another international franchisor who was in the early stages of appointing a master franchisee for New Zealand for their US-based services company. They were quite unusual in that they had already made two visits to the country themselves. As experienced international franchisors, they had a very well-developed plan for the country with extensive market analysis and pre-mapping, but they knew that only by being on the ground and meeting local specialists could they hope to understand the potential of the market here. They were also relatively unusual in that they had a proper training programme in place for master franchisees: all too often, new international masters go through the standard franchisee operations training in the franchisor’s home country but are given little training in how to carry out their own recruitment, training and support roles for sub-franchisees when they get home. This is something else that has to be built into your research and planning.

it takes time If your aim in taking up a regional or national master franchise is to subfranchise, you will need to ensure that you are properly funded. Franchising takes time, and it’s best to establish a pilot operation first to test the local market, establish supply lines and make any necessary adjustments to products, services, systems or marketing techniques. This fine-tuning means that it will probably take longer than subsequent outlets to become profitable, but having 12 months or more of trading under your belt will expose any seasonal variations and give you real figures to show your first potential sub-franchisees. Profits from the pilot operation may then fund the initial subfranchising programme, or the pilot may be sold as an established business to a sub-franchisee.

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The pay-back period for a master franchisee is longer than for a subfranchisee. The master franchisee needs to do their research, learn the business, establish the brand and develop training and support structures before recruiting the first sub-franchisee. Even then, the level of support new sub-franchisees require usually means that it is not until several franchises are established that the investment starts to pay off. However, once successfully established, the payback from a master franchise can be very handsome indeed. If you have access to the necessary capital and have the skills to make it work, buying a regional or national master franchise can offer a truly valuable about the author business opportunity where you can Simon Lord is editor of Franchise use your own or your organisation’s New Zealand magazine & skills to the full with the backing of website and has worked in a proven business system. franchising for over 35 years. franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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Contact james@electrify.nz 021 644405 27 14/06/18 12:00 PM

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30/11/2017 12:05:01 PM

opportunity: leisure & education

LOVE

sKids franchisee follows her heart to open second centre

ash Kimber loves working with children – and why wouldn’t she? Having opened her first centre in Te Kuiti in October 2016, the sKids franchisee recently opened her second in Otorohanga. ‘After being at the new centre for a week, as soon as I walked back in the door at Te Kuiti all the kids ran up to me,’ says Tash. ‘It was very humbling: for me, this is what sKids is all about – making a difference to the lives of our tamariki, whanau, schools and the local community.’ Tash met her husband Graham at school in the Waikato. ‘I planned to be a hairdresser, but then I had the devastating news that I’d be unable ever to have children,’ she recalls. ‘I decided there and then that if I couldn’t have kids of my own I’d be a teacher instead. Then I fell pregnant, and every time I planned to return and complete my Bachelor of Education degree I became pregnant again! Graham and I now have five children from 18–8 and I decided to spend valuable time with them. ‘I have my B.Ed but with Graham on shifts and me working nine-to-five, afterschool care was complex. The local school did have an after-school programme but it was really just a baby-sitting club. After a great deal of research I found sKids and after looking at it very carefully I decided that it was what we needed – and I decided I was the one to put it into our community.’

programmes for success sKids (Safe Kids in Daily Supervision) provides before-school and after-school care for children with busy parents, as well as holiday, cooking, sports, music and intermediate programmes. Today there are around 70 franchisees operating over 170 centres based in local schools, and the franchise has gone international with its innovative programmes and determination to have a positive impact upon children’s lives.

Photo: Waitomo News

WHAT YOU DO

Tash Kimber (bottom left): ‘It’s about the welcome I get from the kids every day’

join the family ‘We want more franchisees to join the sKids family right now,’ says Chris Bartels. ‘We have opportunities for new centres and new franchisees in many parts of the country, especially Waikato, Tauranga, Rotorua, Christchurch and advertiser info Wellington. We use existing premises so there are no high establishment Safe Kids in costs: investment starts from around Daily Supervision $45,000 +gst. www.skids.co.nz ‘Whilst having the heart for children and giving back to the community are musts, business acumen, an abundance of initiative and well-rounded leadership skills are just as important. To find out more, contact me today.’

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.

As sKids director Chris Bartels says, ‘We are dedicated to growing awesome Kiwi kids. We want all kids to feel awesome about who they are; our programmes have been designed to grow core capabilities in kids so they flourish in life. Our programmes actually add to what schools can achieve in the community, which is one of the reason schools choose sKids. Increasing regulation and training requirements have made it even harder to operate after-school care on an informal basis. Also, because our programmes are approved by the Ministry of Social Development, parents can access Work & Income NZ OSCAR subsidies.

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

‘Our systems, training and support enable people like Tash to cope with the regulations, put professional programmes in place, recruit good staff and learn all they need to operate a successful sKids centre.’

supporting families, loving kids Since opening sKids Te Kuiti, Tash has gone from strength to strength. ‘We started with just 8 children and today we have between 45-55 for the afternoon programme alone,’ Tash continues. ‘We offer the entire range of sKids programmes from early mornings to early evenings, 7.30am to 6pm and holiday programmes, and now we have our second centre, too. ‘Of course I was scared at first,’ she admits, ‘but the training and systems were very reassuring and I obviously had business acumen from various jobs. sKids is a fantastically well-supported franchise and the financial rewards are there, too, although it’s not really about that for me – it’s about the families we support and the welcome I get from the kids every day. If you want to make a real difference in your local community, go for it 120 per cent. I did!’ franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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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

29 14/06/18 12:02 PM

franchise association news

LOTS GOING ON A don’t-miss conference, representation at home and abroad, and why membership matters

ne of the USA’s top franchisors has been announced as a keynote speaker for the National Franchise Conference being held in Taupo in August. Catherine Monson is a future Chair of the International Franchise Association (IFA) and has over 30 years’ experience of franchise management with several top-name brands. Catherine is CEO and President of Fastsigns International Inc which has systemwide sales of almost US$450 million with 650-plus franchisees in 9 countries. In 2009, she received the IFA Bonny LeVine Award in recognition of her mentoring others. In 2010, the Dallas Business Journal named her a top Women Industry Leader in the Dallas Metroplex and in 2012 she appeared on the Emmy Awardwinning series Undercover Boss to learn new ways to advance the Fastsigns brand.

Catherine currently serves on the Board of Directors of the IFA as 2nd Vice Chair and will be Chairperson in 2020. Additionally, she serves on

FANZ News 30.indd 1

The conference will also feature a focus on employment, one of the hottest issues in franchising right now, with presentations from the Labour Inspectorate and workshops on both legal and HR implications. Jason Gehrke will also be coming from Australia to offer some lessons from that country’s recent immigration and employment issues in some high profile brands which led to the introduction of joint employer liability and yet another Parliamentary enquiry into the franchise sector there.

Catherine Monson

She received the IFA’s first Franchise Action Network FAN of the Year award for her advocacy work in the franchising community and was also honoured with the 2016 Leadership Award from the Women That Soar organisation.

the Board of Directors for two other franchise companies: early learning specialists The Learning Experience and Brain Balance, which specialises in supplemental learning for children with behavioural issues.

‘The National Franchise Conference is a must-attend event for anyone wanting to learn about current trends and issues, looking to assist the performance of their franchisees and clients, or wanting to franchise their own business,’ says Robyn Pickerill, the CEO of FANZ. ‘Last year’s event was a sell-out and over 150 delegates have already registered for Taupo so book now.’

The Conference will also qualify for 400 points under the Australian CFE (Certified Franchise Executive) programme.

representing franchising As always, FANZ is keeping a keen eye on Government policy and legislation which could affect franchising, sometimes in unintended ways. Over recent years, the Association has met with representatives of all parties to represent the $27.6 billion franchise sector and has also

Franchise New Zealand

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engaged with the MBIE and the Labour Inspectorate. ‘Employment issues are of considerable concern to the Inspectorate, and we have worked with them to help educate our members and ensure franchisors and franchisees comply with the law,’ says FANZ Chairman Brad Jacobs. ‘Now the Government has announced a review of the Holidays Act (see page 16) with the intention of making it easier for employers to comply with their obligations. We welcome that review and look forward to the opportunity to contribute on behalf of the franchise sector. It’s in everyone’s interests that staff are treated fairly while reducing the burden of compliance where possible.’ FANZ is also talking to the IRD about issues relating to the introduction of payday filing, which will become compulsory in April 2019. ‘Franchising is such a major part of the economy these days that it’s important that franchisors and franchisees are represented at this level,’ says Brad. ‘That’s why we urge both franchises and specialist service providers to join FANZ and ensure your voice is heard.’ Membership of FANZ also gives export-minded franchises access to inside information and contacts from franchise associations in other countries through the World Franchise Council. ‘For example, did you know that 120,000 new franchise outlets opened in China last year? The latest WFC member is UAE – a fast-developing franchise region with massive opportunity for international brands.’

new members Association membership is open to those franchisors and service providers who agree to abide by the FANZ Code of Ethics and Code of Practice. ‘Members undergo a stringent examination of their documentation both when they join and on an ongoing basis,’ says Robyn. ‘This process helps them ensure they are meeting best practice standards, and reassures potential franchisees or clients. Only by dealing with FANZ members do buyers receive the protection of the Codes, so membership is a valuable differentiator. ‘Our membership scrutineer, Kevin Connell, is stepping down after many years of service and is handing over to our new appointee, Steve Barnett, who will be continuing to make the membership application and review process a friendly and helpful one.’ The latest members to join are: Franchises Breakers Restaurant Epiphany Café Harcourts Hire A Maid Rentronics Ltd

national franchise franchise 8—11 August Conference Conference 2018 8—11 August Wairakei Resort, Taupo 8—11 August 2018 2018 Wairakei Resort, Taupo

eaRly biRd eaRly Regis eaRly biRd ation biRd Regis $250 Regis ation before ation $250 ay 201 $250 before

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Associates Breakthrough Business Solutions Bright NZ Iridium Partners Quantum Law Salvitas Ltd Contact Robyn (details below) for more information on the benefits of membership

Event Calendar 27 June 17 July 30 July 8-11 August 16 August 19 September 28 September 17 October 10 November 15 November 20 November

national franchise national Conference

Auckland Wellington National Taupo Tauranga Auckland National Auckland Auckland Tauranga Wellington

After-4 Breakfast Awards entries close National Franchise Conference After-5 After-4 Awards finalists notified Breakfast Franchise Awards After-5 After-5

before ay 201 ay 201

and find out more at franchiseassociation.org.nz franchiseassociation.org.nz

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

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31 14/06/18 9:09 AM

franchise development

Franchising your business or improving an existing network?

Do it once, do it right.

FRANCHISOR BENCHMARKING Franchize Consultants list five KPI measurements all franchisors should know

anagement thinker Peter Drucker said that, ‘You can’t manage what you can’t measure.’ That’s the thinking behind franchisee benchmarking, which is one of the major benefits that franchising can offer. Benchmarking enables franchisees to compare their performance (eg. average transaction value, sales by department, cost of goods, labour percentages and dollar profit or percentage profit) over time or to a budget, against other franchisees, or to the industry generally. Benchmarking can also mean comparing business practices, such as sales scripts or operational processes. ‘The benefits of benchmarking are considerable, helping identify performance differences, gaps and opportunities,’ says Dr Callum Floyd of multi award-winning specialists Franchize Consultants. ‘And the same concept should also be grasped by franchisors. What you measure, though, might be different. Here are five KPI areas we believe all franchisors should consider on a regular basis: Franchisee satisfaction. Franchisee satisfaction has the power to build or destroy a franchise system. If franchisees are happy they will recommend the franchise, stay longer and seek more units. Franchisors should regularly survey multiple dimensions of franchisee satisfaction (ideally independently), perhaps most notably the extent to which existing franchisees would recommend the franchise system to someone looking to purchase a franchise. Customer satisfaction. Some argue this is a company’s most important KPI to monitor. Sam Walton, the late founder of Walmart, the world’s largest retailer, noted, ‘There is only one boss – the customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.’ Franchisee returns. Franchisees are making a substantial and concentrated investment when they buy a franchise. They also have choice both pre-purchase and after. It follows that profit and returns are a focus for the franchisee, as they should be for the franchisor. Here we suggest that a franchisor needs to have a solid and comparable handle on their franchisee profit and return metrics. Franchisors should also know how their franchisee metrics compare to their industry and similar strata (eg. level of investment) businesses.

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32 Franchize Consultants 32.indd 1

Staff engagement. Franchisor staff need to be happy, otherwise they will leave. Franchisees do not like change, particularly the loss of good franchise support office personnel. They also don’t like being around longer than all the franchisor team, which does happen sometimes. Franchisors need to survey their staff (ideally independently) to gauge their engagement and intentions. If you have a great field manager, what are you doing to engage and keep them? Group compliance. Compliance (whether brand, legal or best practice) is always important, but today’s environment has a heightened need for franchisors to monitor and report important areas, like safety and people. Other areas like brand compliance are also important metrics that franchisors and their boards should want to know.’ Callum says that the multiple award-winning team at Franchize Consultants can help franchisor businesses by conducting advertiser info independent measurement and Franchize Consultants building meaningful comparisons www.franchize.co.nz on multiple KPI measures. ‘Good Contact franchisors regularly consider Dr Callum Floyd such comparisons as part of their P 0-9-523 3858 long-term business planning, so M 021 669 519 contact us to find out how franchisor callum@franchize.co.nz benchmarking can help you.’ Franchise New Zealand

Winter 2018

Year 27 Issue 02

14/06/18 9:09 AM

If you have handyman skills, you could nail a new career with a Crest PropertyCare franchise

TAKING to the CARETAKING next level

ike Warnes couldn’t be happier with his new role as a caretaker: it’s given him a lifestyle that would be the envy of many. Being his own boss for the first time in his life has brought the 49-year-old a new freedom – a job he’s passionate about but one that still leaves plenty of time to go surfing. Mike, who lives in Mount Maunganui, has a background as a construction worker and driving heavy machinery, but when he got the opportunity to work for himself by buying a Crest PropertyCare franchise he jumped at it. He says gone are the times when he faced the start of each working day with a heavy heart. ‘Now when I get up in the morning I feel fantastic and look forward to my day. Being my own boss is something I’ve not experienced before. Sometimes I have to pinch myself.’

job satisfaction

blasting, no two days are ever the same, he says. ‘The school staff are really lovely, my work is always appreciated and I get really nice feedback.’

paid twice a month Manjinder says a caretaking role is ideal for anyone with basic DIY ability. ‘If you’ve got some handyman skills it’s a great job and it’s incredibly rewarding. What I really like is that Crest gives you some very good training to help you into the role and has a great support system – they are always there if you need any help. Crest PropertyCare teams provide caretaking and maintenance services to schools and to building owners, looking after their grounds, gardens and doing simple property maintenance duties. The business is part of the nationwide commercial cleaning company CrestClean.

One of Mike’s customers is nearby St Thomas More Catholic School. He works there for five hours each week and the difference he’s making to the school’s appearance is a hot topic of conversation among staff. Mike says he loves the role, and he’s treated as part of the school community.

Caretaking contracts are organised and administered by CrestClean, and the franchisee is inducted to the duties and supported to ensure that the job is performed well and the customer is happy. Franchisees are paid twice per month by CrestClean for the contracted services that they have performed.

‘The school was in need of a bit of tender loving care and I like a challenge. There was moss and mould to deal with and the boundary was completely overgrown. Within a couple of hours of starting work there, the difference was really noticeable.’

‘I know that every two weeks I’m going to get paid,’ says Manjinder. ‘It gives me peace of mind and having the regular income means you can just concentrate on your business.’

Mike says caretaking brings flexibility and he can plan his own day. ‘I’ve got jobs to do but I can be flexible about when I do them. I have time to fit in some surfing and spend time with the family. The work keeps me fit and there’s that satisfaction you get from doing a great job for your customers.’ Former telco technician Manjinder Sandhu knows the feeling. Another Crest PropertyCare franchisee, Manjinder is a caretaker at a large junior school in Auckland and thoroughly enjoys his role there. Whether he’s fixing a jammed lock, sweeping leaves, or getting stuck into some water

CrestClean also prepares and files GST returns, prepares annual accounts and files a franchisee’s tax return to keep their business compliant.

what skills do you need? Established in 1996, CrestClean has more than 600 franchised businesses involving 1800 personnel serving customers throughout New Zealand. ‘With Crest PropertyCare, franchisees enjoy being their own boss, but they also have the security of knowing they are being supported by a large company,’ says CrestClean Managing Director Grant McLauchlan. ‘Caretakers may have a trade background, or be a person with handyman skills. The franchise would also be ideal for a tradesperson seeking a hands-on business that is not physically demanding,’ he adds.

Kath Joblin, Principal of St Thomas More Catholic School, says Mike Warnes has made a huge impact in his role as caretaker franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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The image of the traditional school caretaker is changing fast, says Grant. ‘There is a growing trend for schools to outsource their caretaking requirements, which is providing franchise opportunities through Crest PropertyCare. That means opportunities for new franchisees to start right now in many parts advertiser info of New Zealand. ‘For an investment of as little as $35,000, plus a suitable vehicle, you can buy a business that will give you a good return and there’s always the potential to increase your turnover. Give Chris Barker a call at Crest PropertyCare to find out more.’

Crest PropertyCare www.crestpropertycare.co.nz Contact Chris Barker P 0800 273 780 M 021 939 204 chris.barker@crestclean.co.nz

33 14/06/18 12:03 PM

buying a franchise: taking professional advice

Buying a franchise can be a great way to get into your own business – but using the right advisors is essential, says Simon Lord

ust because a franchise is well-established doesn’t mean that it will suit everyone – and it doesn’t mean that every new outlet will be profitable, either. That’s why, if you’re looking at buying any business, you need to take good professional advice so that you can be sure you’ve made the right decision and free your brain up to focus on growing your new business. Strangely, many people don’t bother to do that when it comes to franchises. Why not? Well, having talked to many new franchisees, it seems that too many people: 1. Assume that everything will be okay because the franchise has a good reputation; 2. Think that by not using a lawyer or accountant they will save money on professional fees that they need to invest in the business; or 3. Use an inappropriate advisor – the family lawyer, for example – who might be great at conveyancing but have little experience and few contacts in the franchise world. Alas, the people who take these appealing shortcuts often learn an important lesson the hard way. Whether you’re investing $5,000 or $500,000, it pays to take proper advice to ensure that you know what you are getting into and that your chosen business can meet your needs.

spend and save For the franchise buyer, then, it’s vital to check out the differences between franchises to make sure that any opportunity really is as good as it seems to be. Here’s why it’s worth spending a little time and money on advisors: 1. You’ll save time (and maybe even money). Choose experienced advisors and they’ll probably have come across the franchise system you’re investigating before. Even if it’s new to New Zealand, the chances are they will be able to find out more about it from contacts overseas than you will. And if it’s a brand new system, they will at least know the characteristics to look for in a successful franchise. They might cost more per hour than non-specialist advisors, but they will give you better advice and take less time about it. 2. You’re less likely to make mistakes. You might not know what rents or margins are normal in a certain industry, but your advisors should. You might not know whether a sub-lease arrangement leaves you exposed, but your lawyer will. You might be new to business borrowing, but your banker will know what is and isn’t possible – and the fact that you are buying a franchise may mean special terms are available if you talk to the right people. 3. You’ll know what to expect. One of the most important tasks of your advisors is to ensure that you know exactly what the franchise entails and that you know what will be expected of you as a franchisee. That will not only help you to make the right choice of business but also enable you to settle into your new role faster. 4. You’ll be confident your chosen franchise will meet your needs. Whether your reasons for buying a franchise are short-term growth, longterm security or lifestyle, involving advisors and briefing them honestly about your goals will help ascertain whether the business will really meet your needs. 5. You’ll get impartial advice. If you find a business you love, it’s easy to focus on the positives and miss some of the warning signs. For all sorts of reasons, a good franchise may not actually be the right one for you. Advisors can help you see beyond the dream to the reality, and help you make the right decision.

what advice do I need? The three key people that you need to speak to are a lawyer, accountant and, if you are going to require finance, a banker.

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Franchise New Zealand

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make the RIGHT CHOICE When you buy a franchise, you are getting into a legal arrangement that involves rights and obligations on both the franchisee and the franchisor. It is therefore extremely important that you should have a clear understanding of what those will actually mean to you in practice. How about using an accountant? Well, one of the primary reasons for buying a business is to make money, so you want to ensure that the franchise you are considering is actually a sound proposition and that it can provide the financial returns that you are looking for. An experienced accountant can help you investigate this.

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35 14/06/18 9:10 AM

buying a franchise: taking professional advice

have to tell purchasers, ‘You are also required to have the Franchise Agreement explained to you by a solicitor experienced in franchising and you should seek financial advice on the franchise proposition from an accountant experienced in franchising.’ As for franchise bankers, the good news about them is that they have a huge amount of expertise and knowledge about different franchise systems but they aren’t actually going to charge you anything for sharing it. It’s therefore a simple matter to talk to them fairly early in your researches to find out what they know and start to build a relationship with them.

how do you choose the right advisor? So how do you ensure that your chosen advisors are the right ones for you? Here are some tips. 1. Don’t assume that your normal family lawyer or accountant has the skills to analyse a franchise opportunity. Franchising is a specialist field and it pays to use specialists. They may charge more per hour but they will know what is and isn’t acceptable. 2. Look for advisors who are demonstrably focusing on the world of franchising already. The Directory in the back of this magazine is a good place to start, as it lists those with specialist knowledge in this area. It also details which advisors are members of the Franchise Association of New Zealand. 3. Choose people who are able to demonstrate knowledge and experience of franchise systems in the field in which your chosen business is operating. Don’t be afraid to ask for a summary of their relevant experience. 4. Check the reputation of each advisor with your other advisors – some

may work particularly closely with other specialists and be able to recommend someone. 5. Make sure that you choose people with whom you can build a good rapport. You need to be honest with your advisors and trust that they will respect your confidences and give you good advice. In all likelihood, you will be working with them not just while you are buying your franchise but as your business grows, too. 6. Be prepared to pay reasonable fees for professional advice. It’s not worth saving a few dollars at the outset and getting poor advice. Most advisors charge on an hourly basis, so find out what this is and get a written estimate of the likely number of hours involved. Ask to be kept informed in writing of any extra hours incurred. 7. Accept that the advisor’s job is to advise. The ultimate decision whether to take up the franchise is just the first of many you will need to make in running your own business. Be prepared to take responsibility for your own future.

finally With the right team of advisors behind you, buying a franchise can be much less stressful – and less risky – than trying to do everything on your own. The trick is to choose the right advisors in the first place, be honest with them and listen carefully to what they have to say. At the end of the day, the decision whether to proceed about the author or not will be yours and yours alone, but if you have listened to the voices Simon Lord is editor of Franchise of experience then you stand the best New Zealand magazine & website and has worked in possible chance of making the right franchising for over 35 years. decision for your future success.

Ever thought of becoming your own boss?

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

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.

36 EDIT Choose 34.indd 3

Franchise New Zealand

Winter 2018

Year 27 Issue 02

14/06/18 9:10 AM

opportunity: food & beverage

New franchisees take out major awards at Columbus Coffee

hen Brent Wilson and his wife Vicki gave up their motel in Nelson to be closer to family, they searched for another business they could run together. Now, just a year after buying Columbus Coffee in the Palmerston North Plaza, they’ve been named the franchise’s New Franchisees of the Year. ‘Vicki had previously worked in customer service while I was in the army,’ Brent says. ‘We’d learned how hard it was going it alone so, for our first time in the food industry, having the support of a franchise appealed. We chose Columbus Coffee because it has such a good reputation and offered the chance to grow.’ Brent and Vicki quickly gained confidence. ‘After training, we spent a couple of weeks getting practical experience with another franchisee which was invaluable,’ says Brent. ‘We were then able to take over our own café and hit the ground running, with a good idea of how things should be done.’

TOP PERFORMERS

Vicki explains, ‘One of the things we really value is the focus on new ideas – staying fresh and relevant to new food trends. Columbus Coffee not only provided the support we needed as first-time owners in the industry; they also encouraged us to push the boundaries to build our business. If we were doing it alone, we might play it safe and avoid making changes that could really help us grow. Being a part of Columbus Coffee has allowed us to achieve a lot more things in a lot less time, and with fewer mistakes, too. As a result, we’ve seen roughly 10-15 percent sales growth already.’ Being named New Franchisees of the Year at the glitzy awards ceremony was a great surprise, and has encouraged Brent and Vicki to keep up the hard work. ‘We’re very hands-on so winning the award has given us a real boost, showing us that we’re on the right track.’ The next big step for the couple is a new fit-out of their café early next year to match the fresh look that Columbus Coffee has been rolling out across the country – another proven source of growth.

from newbies to number 1 Brent and Vicki are following in the footsteps of Cate Sutherland of Columbus Coffee Timaru. Cate won the New Franchisee award in 2017 – and this year she took out not just the overall Franchisee of the Year award but four other titles as well, including Customer Service and People’s Choice.

Brent and Vicki Wilson: ‘Columbus Coffee encouraged us to push the boundaries to build our business’

away so it wasn’t familiar to the locals,’ she says. ‘Timaru’s a small town, so building a reputation for great service and connecting with the customers was as important from the start as serving good food and coffee.’ For 19 years, Cate had worked as a high school catering manager. ‘I loved it, but felt that I had contributed everything I could and it was time for a new challenge – if I didn’t do it now, I might miss my chance. One of the best things Columbus Coffee did was make me do my own due diligence before committing. They gave me the push to start off with a business plan, financial plan and research on the area/demographic of my potential customers. Though I had worked in catering for most of my life, I had no café experience and the franchise gave me great training and support. It definitely wasn’t easy, but it has been so rewarding already.’ Like Vicki, Cate also values the brand’s commitment to evolving with food trends. ‘Every market is different. Columbus Coffee’s Lifestyle Favourites range of recipes caters for all sorts of diets, and as I get to know my customers, I learn what works for them.

It’s Cate’s focus on service that has really driven her success. Columbus Coffee was new to Timaru when she opened in March 2016, ‘And while the franchise has a national reputation, the closest Columbus Coffee is two hours

‘Having good systems in place is the backbone of a business, and Columbus Coffee gave me those tools so I could focus on my customers. We have a sign up in the back that says, “Be the reason someone smiles today.” That’s why the People’s Choice award maybe means the most to us – it’s not my award, it belongs to my staff and our customers, too.’

Peter Webster with Franchisee of the Year Cate Sutherland (centre) and Franchise Support Manager Rowena Cooper

opportunities available A home-grown franchise with over 70 cafés nationwide, Columbus Coffee can be found in a variety of high street and mall locations, as well as within Mitre10 MEGA stores as part of an exclusive deal with the retail giant. Investment levels range from $280,000 - $400,000, with existing cafés in proven locations also available from time to time. ‘Both new and existing outlets offer considerable growth potential, as Brent and Vicky have shown,’ says Peter Webster, general manager of Columbus Coffee. ‘They’ve also proved that you don’t need to have café advertiser info experience to be successful with us. If you want to be a part of an Columbus Coffee award-winning franchise with www.columbuscoffee.co.nz award-winning people, and you Contact are committed to providing great Angela Manihera service, give me a call. Who knows? P 0-9-520 1044 – you could be our next M 021 883 486 angela@columbuscoffee.co.nz New Franchisee of the Year!’

franchise.co.nz – PUTTING PEOPLE IN BUSINESS

Columbus 37.indd 1

37 14/06/18 3:08 PM

FRA AVA NCH ILAB ISE S L LE N OW NEW ZEA

LAN

THE OPPORTUNITY Portermark is Australia’s premier beer line cleaning company and is now seeking franchisees for their expansion into New Zealand with a high return franchise model that offers significant income potential working from just 15-20 hours per week. Each Portermark franchise has a dedicated exclusive territory covering multiple suburbs, allowing them to service the needs of the Pubs, Clubs, Hotels and sporting venues within the territory. No experience necessary – full training and operational support provided. A comprehensive training module covering every aspect of beer line cleaning, equipment maintenance, OH&S procedures and HACCP certified processes and procedures are delivered during an intensive four day workshop incorporating both theory and practical at a suitable training facility. Portmermark standard franchise agreements have a five year term with two additional renewal terms of five years each making this an outstanding long term investment. The business model works on one clean per business day for 5 days on a 3 weekly cycle making this a perfect business for low hours with high returns. Our HACCP accredited processes and procedures are highly effective ensuring the quality of the beer over a three week period

remains within food safety standards. The benefits to a venue are numerous • Increased yields – generates additional revenues by selling the beer traditionally disposed of during the cleaning process • Enhanced beer quality – superior cleaning systems enhance the taste, colour and aroma • Reduced cleaning frequency – the clean is now on a 3 weekly cycle rather than every week • Increased safety – significant reduction in accidents and incidents with cleans carried out by trained professionals • Environmentally friendly – reduced water wastage and CO2 usage • Food safety standard guaranteed – we analytically prove beer lines are cleaned to Food Safety Standards With dedicated expansion into the New Zealand market, as a franchise owner you will have the ability to own and build your business from the ground up. The ideal operator will have a strong work ethic and a solid commitment to business success. With limited territories available register your interest now for a given region.

INVESTMENT REQUIRED The investment required is $78,500 + legals + gst

Contact Kev Cochrane BDM | Phone +61 412 892 677 | kev@portermark.com www.portermark.com

giving kids a

opportunity: leisure & education

SPORTING CHANCE

Kelly Sports provides an ideal platform for enthusiastic families

t might be a business but it doesn’t feel like a job – we love what we do,’ says Kelly Sports franchisee Alan Peters. ‘Yes, you need to work on it, but if you have a passion for it as Natalie and I do, then the rewards will flow.’ Alan and Natalie are Kelly Sports franchisees, providing in-school and after-school sports programmes around the Mt Wellington area of Auckland. ‘I had always wanted to work in sport, but I didn’t have the right experience so I went into the retail trade for 20 years,’ Alan explains. ‘My first introduction to Kelly Sports was a flyer one of my children brought home. At the time Natalie and I had been helping to coach six junior touch rugby teams and missed doing it when the season ended, so we decided to investigate Kelly Sports further. ‘I had noticed a distinct pattern. ‘The biggest challenge with children starting sport is that if they do not enjoy their first experience then it becomes very hard to convince them to return. Kelly Sports gives them the confidence to try sport in a fun, safe environment.’

setting kids up for life Kelly Sports was founded in Australia in 1994. The franchise came to New Zealand in 2007 and now has nearly 40 franchisees here. ‘Kelly Sports encourages kids to have fun and give sport a go,’ says managing director Paul Jamieson. ‘Giving kids a sporting chance is our slogan, and teaching children fundamental skills such as running, jumping, throwing and catching can give them confidence and really set them up for life. So many children just haven’t had those basic opportunities –it’s really sad.’ The range of activities offered by Kelly Sports is considerable. ‘Each term, our franchisees offer after-school sports programmes at hundreds of schools around New Zealand,’ says Paul. ‘The most popular is the multisport, in which children participate in a broad range of activities, usually at the school’s own grounds to avoid additional travel. This programme usually runs one day a week from 3pm to 4pm, meaning parents have an extra hour before the collection run. Franchisees market and manage the programmes, as well as running them initially, but as the business grows they can employ as many coaches as needed.’

share the passion Alan and Natalie’s territory comprises 42 schools. ‘We only started in early 2017 and we’re already helping over half of them,’ he smiles. ‘Frankly I’d happily coach every day myself but you can’t build a business like that, so I aim to spend one day a week coaching and the remainder marketing, meeting schools and parents and developing new locations and franchise.co.nz – PUTTING PEOPLE IN BUSINESS

Kelly Sports 39.indd 1

programmes. The training and support from the franchisor is excellent. ‘Recruiting coaches can be a challenge; however there are many people out there who enjoy sport as much as I do and are happy to encourage children to get the best out of them. Currently I have a fantastic coaching team consisting of two part-time and two full-time staff, plus Natalie, who does much of the admin work and has our four children to handle, too. Having students in to coach works very well and we can always work their coaching round their academic activities. Alan says he has three basic questions for coaches, which apply to franchisees, too. ‘Do they enjoy working with kids? Are they passionate about sport? And are they reliable? If you are passionate about what you do then the enthusiasm – and the results – will flow from that passion.’ And that passion applies to all sorts of activities. ‘Natalie and I have been thinking strategically about our business and realised we wanted to deliver something special to our schools, so we are now closely involved in a traditional Maori game – Kī-o-rahi – which is a fun and complex ball game that predates rugby. On the other hand, we’re taking three basketball teams to a contest shortly. That’s what I love about the business – we’re giving children something they will remember for the rest of their lives.’

returns and rewards Kelly Sports is looking for enthusiastic people to run programmes in many areas nationwide, with investment levels from $35,000. Franchisees enjoy two different income streams, from both the schools and parents. ‘Annual returns can climb into six figures,’ says Paul Jamieson. ‘Visit our website or call us today and find out more.’ Alan Peters clearly doesn’t regret taking up the franchise for a moment. ‘Last year we coached over 7,000 children, and this year we have already coached 5,174 by the end of term one. There’s no shortage of demand – I’ve often helped schools find funding because they are so keen advertiser info to have certain programmes, and the feedback from teachers, kids Kelly Sports and parents is amazing. ‘I’ve really found something I love doing through Kelly Sports and Natalie and I have a great business, too. I think you could call that success!’

www.kellysports.co.nz Contact Daniel Gerrard P 0-9-427 9377 M 021 409 628 danielgerrard@kellysports.co.nz

39 14/06/18 3:16 PM

franchise development

REGIONS THE PLACE TO BE New GDP estimates show New Zealand’s regions have grown strongly over the past five years, with parts of the South Island standing out

he latest statistics from the Ministry of Business, Innovation and Employment (MBIE) show that many parts of the country have enjoyed good business growth over the past five years. The statistics provide food for thought for franchisors looking for new opportunities, and those seeking to move out of the major cities and enjoy a more relaxed lifestyle. Yes, Auckland might have enjoyed considerable growth as its population increased, but areas like Marlborough did even better. MBIE’s estimates show growth in 59 out of 66 territorial authorities over the past five years, and in an impressive 64 out of 66 in the latest year to March 2017. The experimental MTAGDP series is based on the earnings (wages and salaries) of people in employment by industry and territorial authority area. Over the five-year period, Queenstown-Lakes had by far the strongest growth, up +68.5 percent. Other regions that saw impressive growth over this period include Canterbury and Christchurch City, as you might expect with the post-earthquake reconstruction work. Tauranga, Whangarei and Kaipara were also very strong performers.

The territorial authorities with the lowest per capita GDP in the year ended March 2017 were Kapiti Coast ($22,200), Waimakariri ($26,400), South Wairarapa ($26,700) and Horowhenua ($27,700).

franchise buyers – where to go?

The MBIE statistics reinforce the appeal of the regions for franchise buyers, who are increasingly finding that some of the best business opportunities lie outside the main cities where good growth is not allied to high property prices and lower overheads can mean higher profitability. Westpac reports that in many franchise systems, some of the most profitable outlets in New Zealand are located in the regions rather than the major centres. The key word here is ‘profitable’ rather than ‘highest sales’. Regional centres might have a slower economy but they can produce better results. There are four main reasons for this: 1. Regional businesses often enjoy far better rent ratios than urban ones. The property market and rates in Auckland mean that many businesses need to have a significant level of sales before they even cover their costs. 2. While sales may be lower in the regions, so are staffing costs. Although minimum wage rates are national, the overall wage bill is often lower. Rent and staff are the two biggest costs for most businesses, so lower fixed costs mean greater profitability. 3. In many sectors, there is less competition both from other franchised brands and from independents. While some independent operators may be excellent, most will be average and none will enjoy the buying and marketing power of a franchise, or the operational support that goes with it.

As a combined Regional Council and Territorial Authority, Marlborough grew +34.9 percent over the five years. In this category, Carterton (+33.4 percent) was the stand-out district for the Wellington region, while Auckland grew +34.6 percent.

4. Because other costs, such as housing, are lower in most centres, franchisees don’t need to take as much out of the business to cover their everyday living costs. This means they can reduce debt faster and re-invest as required.

Looking at the single year ended March 2017, the figures estimate that GDP increased in 64 of the 66 territorial authority regions. Waipa and Kawerau had the strongest nominal annual GDP growth to the year ended March 2017 at +12.0 and +11.8 percent respectively, almost twice the New Zealand growth rate of +6.2 percent. Only Central Hawkes Bay had a small decline of -2.2 percent, while Wairoa was unchanged.

Read more about this, including some case studies, at www.franchise.co.nz/ article/2398

population growth impacts

While the overall growth figures are valuable, the statistics also include another measure, GDP per capita, which allows for population growth and enables a better comparison of GDP values between regions.

analysing the figures

The MBIE website offers interactive tools to help analyse the MTAGDP data. These enable franchisors and franchise buyers to explore the statistics by date range and industry, and compare the data for different regions. While the decision to develop any new outlet would require detailed on-thespot research and competitor analysis by both the franchisor and franchisee, the MBIE says its estimates provide robust, readily available regional economic data at the territorial authority level.

Over a five year period, 54 of the 66 regions experienced GDP per capita The MBIE website is at http://www.mbie.govt.nz. For convenience, growth. The strongest growth was seen in Queenstown (30.8 percent) and this abbreviated link will take you straight to the relevant page. Marlborough (30.2 percent). Queenstown’s overall GDP growth of +68.5 https://tinyurl.com/MBIE-MTAGDP percent was heavily offset by large population growth of +28.8 percent over the five years. Other regions growing robustly in GDP Fastest growing TA regions by nominal capital GDP per capita growth over 5 years (2012-17) per capita were Christchurch (+25.4 percent), Waitomo (+24.1 percent), Whangarei (+24.0 percent), Territorial GDP per capita growth GDP growth Population growth and Invercargill (+23.8 percent). authority regions

2012-2017

2016-2017

2012-2017

2016-2017

2012-2017

2016-2017

Queenstown-Lakes

30.8%

1.1%

68.5%

8.1%

28.8%

6.9%

Marlborough

30.2%

4.4%

34.9%

6.0%

3.6%

1.5%

Most recently, for the year ended March 2017, the strongest GDP per capita growth was experienced in Kawerau (+9.6 percent), Westland (+9.3 percent) and Waipa (+9.1 percent). Westland’s per capita growth was accentuated by nearly flat population growth. Invercargill and Gore also had strong per capita GDP growth rates (8.8 and 8.4 percent, respectively) accentuated by flat population growth.

Christchurch

25.4%

3.2%

34.7%

5.0%

7.4%

1.7%

Waitomo

24.1%

4.2%

27.2%

5.0%

2.5%

0.7%

Whangarei

24.0%

5.9%

34.3%

8.3%

2.3%

Invercargill

23.8%

8.8%

27.6%

9.0%

3.0%

0.2%

TImaru

23.3%

4.1%

28.7%

5.0%

4.4%

0.9%

Tauranga

22.8%

6.5%

36.5%

9.3%

11.2%

2.6%

Central Hawkes Bay had the largest fall for the year (-4.0 percent) while Wairoa (also in the wider Hawkes Bay region) fell -0.7 percent.

Carterton

22.5%

4.1%

33.4%

5.7%

8.9%

1.6%

Westland

22.4%

9.3%

26.0%

9.9%

2.9%

0.6%

40 EDIT Regions 40.indd 1

Franchise New Zealand

Winter 2018

Source: MBIE

At $112,700, Wellington City easily had the largest GDP per capita. It was followed by South Taranaki ($78,600) and New Plymouth ($72,900), and then by QueenstownLakes ($66,900) and Christchurch ($65,600).

Year 27 Issue 02

14/06/18 9:10 AM

ENJOY THE BEST OF BOTH WORLDS Coffix combines low investment with high potential

s every Kiwi who’s travelled around Europe knows, coffee is a way of life there even more than it is in New Zealand. You’ll find a kiosk on every second corner serving fresh, hot coffee, with just one difference from what we’re used to here – the price. In Europe, you’ll pay €1 to€€1.20 for a coffee – that’s about $1.60-$1.90, which is a lot less than you’ll be charged in most places here. Or it was, until Coffix came along.

Coffix was founded in 2014 and already has 19 stores around New Zealand, making it one of the fastest-growing chains in the coffee business. The secret to its success has been stripping out the big overheads that come with big premises, food preparation and table service, and offering a takeaway-only service from small, well-located kiosks. It means Coffix can charge just $2.50 for a regular-size coffee, and the price stays the same whether you want a long black, soy milk, a vanilla shot or even a hot chocolate.

a snack to grab and go. Hours are flexible too, depending on local traffic patterns. They might open at 6am and close late afternoon, or stay open late to catch the evening trade.

open door Ilya says, ‘The investment required is probably the lowest in the market – around $100,000, which includes everything: brand licensing, site location, shop fitting, equipment, system and full training. That makes it a very affordable franchise for someone with the right attitude and business skills. Our low cost and track record means we’re certainly not closing the door to good people because of money. ‘With the business model having been proven over four years in four different cities, it’s hard to fail if you are determined to give great service to your customers and prepared to put in the effort. We help find the location, build the outlet, provide training and supply the goods – the rest is up to you. Some of our franchisees have done so well they have already opened more outlets. ‘To be part of this great new trend in espresso bar affordable coffee and join the Coffix family, contact us quickly. We are currently planning 60 outlets around New Zealand and there could easily be more but, as always, the best locations will be the first to go. Coffix is the business opportunity that gives franchisees the best of both worlds.’

advertiser info Coffix www.coffix.co.nz Contact Tristen Won P 021 538 508 franchise@coffix.co.nz

affordable prices ‘We don’t skimp on service or quality,’ says one of the company’s founders, Natan Yehezkely. ‘It’s just that Coffix has 100 percent focus on coffee, serving our own freshly-roasted Fair Trade organic blend and making sure our franchisees and baristas are properly-trained. Although we offer snacks such as muffins, bliss balls, bagels and wraps, too, they are delivered every day from the bakery so there are no expensive kitchens or chefs either. ‘The result is affordable prices that bring in the numbers and give our franchisees the best of both worlds – low investment levels and high profitability.’ Franchisees also benefit from a highly sophisticated management and ordering system which keeps administration to a minimum. Now Coffix is gearing up for further growth with the arrival of new owners Ilya Pyzhanov, who has over 10 years’ experience in the manufacturing and FMCG sectors, including a successful start-up in the dairy industry, and Eyal Tur-Shalom, with over 25 years’ experience in retail, food and franchising.

popular everywhere The first Coffix opened as a small kiosk on Auckland’s Karangahape Road, and the franchise has since expanded to Hamilton, Tauranga and Wellington. ‘We are looking for new locations and new franchisees in all these areas and right throughout New Zealand, including key South Island regions such as Christchurch and Queenstown,’ says Ilya. ‘Because outlets require only a small footprint, we can find a suitable location almost anywhere. ‘Coffix can operate successfully from streetside kiosks, holes-in-the-wall or stores-within-stores – wherever people travel, work or shop and want fast, high quality coffee and franchise.co.nz – PUTTING PEOPLE IN BUSINESS

Coffix 41.indd 1

Minimal Investment Simple Business model Quick setup & comprehensive training Own & Operate or as Investment You choose the level of work Fair Trade, Organic coffee at fair price

41 14/06/18 12:04 PM

86 X GOURMET RESTAURANTS

7 X COUNTRIES AROUND THE WORLD

QUIT YOUR DAY JOB! THE TEAM REALLY KNOW THEIR MENU WELL, THEY COMMUNICATE WELL AND

CUSTOMER SERVICE IS NEXT LEVEL!

IT IS ALWAYS AWESOME SERVICE, GREAT STAFF, AND TOP NOTCH FOOD WE ALWAYS COME FOR ‘DATE NIGHT’ AND THE

NOT YOUR ORDINARY BURGER

A HEALTHY ALTERNATIVE

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

Ready to dive full throttle into a modern franchise model? BurgerFuel does things others can’t

f working hard and playing harder sounds like you, then buckle your seat belt and read on. BurgerFuel is currently seeking franchisees for exciting new opportunities throughout New Zealand, including Auckland, Nelson, Dunedin, Whangarei and Queenstown. BurgerFuel has stores across the globe, but its heart is in New Zealand where it first launched its fresh, natural, gourmet burgers backed by in-your-face marketing back in 1995. It’s never been a bland brand, and that’s still true of the BurgerFuel experience today.

HUNGER GAINS

‘When you buy a BurgerFuel franchise, you’re not just buying into a gourmet burger business with a supportive and innovative franchise model,’ says Jason Lowery, Country Manager for BurgerFuel NZ. ‘BurgerFuel is a 360-degree lifestyle experience where fast cars, street art, music and creativity reign supreme, and the unique culture is something other brands can’t emulate.’

drivers of success Having the right franchisees is integral to the success of the stores. With five busy Auckland-based stores, James Stevenson is the perfect example of a business owner who lives, eats and plays BurgerFuel. We asked him to explain how BurgerFuel has driven his success.

system. BurgerFuel has helped me to grow both personally and professionally. What are your greatest achievements as a BurgerFuel franchisee? Running multiple outlets has been a very steep learning curve for me, and I’ve certainly had my hiccups along the way. I think my proudest moment to date was being nominated for BurgerFuel’s Franchisee of the Year award last year – I don’t feel like I deserved it, but it was great to see that the progress I knew I had made was recognised.

How long have you been a BurgerFuel franchisee? 18 years

How would you describe the relationship between franchisee and franchisor? Excellent. BurgerFuel is the most supportive company in franchising I know. They really know their stuff, run a robust model and really are there to help you grow your business.

What attracted you to apply for a BurgerFuel franchise? I started out as a BurgerFuel customer. I loved the product and loved the atmosphere and experience even more. Even though there were only two BurgerFuel stores open at that point, it already felt like a brand that was clearly destined for much bigger things. When the opportunity presented itself, I jumped – and I’ve never regretted it.

What are the benefits you have found with working within a franchise system? Support. BurgerFuel has a team of people who are constantly refining and innovating to keep the brand at the front of our market. As a franchisee, I simply don’t have the time or the skills to do this so I value the operational support, systems, training and marketing programmes that BurgerFuel provide.

What is unique about the BurgerFuel brand? BurgerFuel is unique because there are so many layers to the brand. This creates a rich culture that drives a high level of loyalty with customers. Being a franchisee is more of a lifestyle – you don’t run the brand, you live it and this is something you can’t buy into elsewhere.

What is the key to running a successful BurgerFuel store and multi-unit operation? Belief, hard work and knowing your business inside out; sticking to the basics; change management and continuous improvement. BurgerFuel stores are incredibly dynamic businesses and require a lot of focus to maintain standards. Multi-site ownership is all about having a great management team who, in turn, have great staff. It’s all about people and talent development – a cliché, but totally true.

What personality traits do potential BurgerFuel franchisees need? To run a BurgerFuel store well, you need to be passionate about people and the brand – as well as have extremely high standards. Self-motivation is key – you’ve got to value and constantly strive towards development and growth for both your own business unit and the people who work for you.

James Stevenson franchise.co.nz – PUTTING PEOPLE IN BUSINESS

Burgerfuel 43.indd 1

What are the rewards of being a BurgerFuel franchisee? I love the opportunity to build a business of my own, but also the ability to rely on the experience and expertise of the BurgerFuel

keen to know more? With new opportunities now opening up in key markets, BurgerFuel are keen to hear from anyone with the right attitude who is ready to work hard and has the organisational and management skills necessary to run a busy gourmet burger business with passion and flair. ‘If you think you have what it takes to grow your own gourmet burger empire, head to our website, take a look around and see what we’re all about,’ says Jason Lowery. ‘Key locations like Auckland, Nelson, Dunedin, Whangarei and Queenstown will soon be snapped up, so do it now.’

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

43 14/06/18 9:11 AM

JOIN THE GARDEN RETAIL INNOVATOR Franchise opportunities available now

1912

Humble beginnings Mr AW Palmer opens a nursery in Glen Eden.

Family Business

2012

1958 Stanley Palmer opens NZ’s first retail garden store, revolutionising the way gardeners shopped forever.

2008 Celebrating 50 years of garden retail innovation.

Setting the standard in modern garden retail; Tauranga wins coveted NGINZ Garden Centre of the Year 2012/3 & 2014/5.

2018

Uniquely Kiwi

2012

Market Innovator Lifestyle Destination Petone store opening Q3 2018, includes a licensed cafe, florist, outdoor living and home décor set in a large and modern retail complex.

Marked our 100th year with a new era in garden retail – Albany store wins Red Award for excellence in Retail Store Design, Home Category

Join the brand which has been leading the way since 1912. Palmers and Cafe Botannix franchises for sale – buy one or buy both. Joint venture opportunity available for the right people. Learn more about our brand at palmers.co.nz

contact

Murray belcher united franchise systems murray.belcher@ufsltd.co.nz 021 483 500

opportunity: food & beverage

think global

EAT LOCAL

Jamaica Blue franchisees enjoy the freedom to match local cafés to local customers

amaica – home of reggae, history’s fastest runner, the underdog bobsled team who became darlings of the 1988 Winter Olympics, and a remarkable blue-green coffee bean. It’s the unique aroma and flavour of this bean that has inspired the founding values of Jamaica Blue, and today you’ll find the café franchise across Australasia, the UK, China, Singapore, Malaysia and the UAE. There are already 10 Jamaica Blue cafés in New Zealand and more opportunities in the pipeline through to 2020. The name comes from the Blue Mountains of Jamaica, one of the best coffee-growing regions in the world, and the special variety of bean grown there accounts for less than 0.1% of the world’s coffee production. It gives the brand a certain quality and exclusivity, which is enhanced by menus that use fresh, locally-sourced ingredients and a determination that each café should match its local market. ‘This philosophy has allowed our franchisees the freedom to develop cafés with their own personality and their own menu selection, responding to local tastes and the availability of seasonal produce in their area,’ explains Jon Hassall, the company’s New Zealand general manager. ‘It also means we can be flexible and creative with different concepts from fully licensed café restaurants to kiosks and hole-in-the-wall espresso bars; with thriving Jamaica Blue businesses in residential areas, malls, airports, hospitals and high streets.’

the world’s busiest Jamaica Blue This flexibility has certainly paid off – in fact, the world’s busiest Jamaica Blue is at Auckland Hospital where the franchisee is 36-year-old James Xu. After seeing friends succeed, the former motor mechanic followed them to Jamaica Blue in 2009. ‘I love coffee and with Jamaica Blue’s fantastic training and on-site support, I went from knowing zero about running a café and making coffee to owning the Jamaica Blue at Manukau City,’ explains James. ‘In 2013, I sold that and became manager of the company-owned Jamaica Blue at Auckland Airport, then when we opened at Auckland Hospital in November last year, I was appointed manager of both. I very quickly saw the potential of the hospital site so I became a franchisee again.’ James needed all his management and customer service skills, as well as his excellent team of staff and the support from the franchisor, because his café quickly became the busiest Jamaica Blue in the world. The café might be in a hospital but its contemporary fit-out highlighted by some quirky Jamaican touches provides a relaxed setting where customers can enjoy a world-class mix of unique coffee blends, mouth-watering cabinet food and freshly-cooked meals from the in-house kitchen. For many hospital visitors, it’s a ‘find’ that is helping to spread the news about Jamaica Blue – which means more opportunities for new franchisees throughout the country.

release your flair Jamaica Blue is a sister franchise to the well-established Muffin Break. Both brands are part of Foodco, which started on Australia’s Gold Coast before opening its first store in New Zealand in 2004. Foodco is a privatelyowned company with a major shareholding held by a New Zealand family, giving it real ‘skin in the game’ here. As part of Foodco’s commitment to support the existing New Zealand network and expand throughout the country, Jon Hassall, a café and hospitality executive with international experience ranging over 25 years, joined the company in April 2016. franchise.co.nz – PUTTING PEOPLE IN BUSINESS

Jamaica Blue 45.indd 1

James Xu went from knowing zero about running a café to owning the world’s busiest Jamaica Blue

The company has also established a fully-fledged training facility in New Zealand to help new franchisees and their staff learn the skills they need to run a successful cafe. ‘A Jamaica Blue franchisee is encouraged to challenge conventional wisdom and release their flair for innovation – the qualities that people enjoy in vibrant independent cafés,’ explains John. ‘We are not necessarily looking for people with hospitality experience – what we want is coffee and food lovers with inherent people skills that flow naturally. ‘Everyone brings different skill sets so, uniquely, we individualise training for each new franchisee to focus on what they don’t know. After this training, and shoulder-to-shoulder launch support, franchisees benefit from ongoing mentorship, expert marketing programmes and field support.’

a model to suit In addition to Auckland Hospital, over the past two years Jamaica Blue cafés have opened at Greenlane Hospital, Northlands Shopping Centre in Christchurch and a Jamaica Blue Grab-n-Go kiosk at the new Manukau Bus Station. More locations, including Queenstown, Ashburton, Tauranga and Auckland’s Long Bay are currently under development. With each café being uniquely designed to its market and location, there is no ‘one size fits all’ approach, explains Jon. ‘What we do is apply our expertise in such areas as fit-out, dietary considerations, costings and supply chains to create a model to suit the individual location and franchisee. The investment varies according to the type of Jamaica Blue you want – the turnkey cost for a high street café ranges from $320-$450,000 +gst, while a unique espresso bar can be considerably less.’ ‘Jamaica Blue is for those looking for something different from the standard cookie-cutter approach – a café where you can add your own touches while still benefitting from all the buying power, branding and expertise of a highly-experienced franchisor. If this sounds like the perfect recipe to you, contact us now to find out more.’

advertiser info Jamaica Blue www.jamaicablue.co.nz Contact Maree Keane P 0-9-377 1901 M 027 484 7301 maree@foodco.co.nz

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

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    

f you are looking at buying a business, it is vital to ensure that it is right for you and your own particular needs. Never, ever buy a business assuming ‘She’ll be right’ just because you have seen the name around or because other people have already bought in. What you want to find is a franchise that suits your own abilities, ambitions and lifestyle.

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

When you buy a franchise, you will be relying upon the value of the brand and the quality of the franchise system, product or service to achieve these goals. A lot therefore depends upon the fit between you and the business, and the quality of training and support you will receive.

www.appliancetaggingservices.com.au

Several years ago, we at Franchise New Zealand magazine & website set out to develop an exhaustive list of questions to help potential buyers evaluate both the franchise opportunity and the franchisor him or her self. The list has been updated annually ever since; established franchisors know it well and welcome enquiries from those who have used it to determine the information they need to know before they make their decision.

Invest in a Business That Delivers PACK & SEND is one of the fastest growing franchises in New Zealand providing a proven franchise opportunity at a great investment level.

BECOME A PACK & SEND FRANCHISEE

Although there is no franchise law in New Zealand to determine what information a franchisor must give you, most franchisors should provide a disclosure document that will include many of the answers. You should read this thoroughly and discuss it with your professional advisors. Depending on your own level of knowledge of, say, financial matters, you may prefer to get your advisors to ask some of these questions on your behalf.

• New Zealand’s Largest Range of Freight and Packaging Services under one roof • Solid New Zealand Brand and Reputation with Minimal Competition • Proven Business Template and Systems • Comprehensive Induction and Training • Unparallelled Franchise Support • Innovative New Online Ordering Platform • Unlimited Proﬁt Potential in the Lucrative Freight and Logistics Industry Be part of our “No Limits” culture and phone Matthew Everest on 03 982 7252 or 021 799 783 for opportunities available in your region. packsend.co.nz/own-a-franchise

Because franchising is so diverse, it is not possible to provide a list that would be applicable to everyone. There are over 250 suggested questions here, so put a mark against the questions that are most appropriate to your own situation and use them as a basis for creating your own checklist.

The areas that you will want to examine may be divided into: “Absolutely thrilled with their packaging, service and communication. Affordable and careful. Would I use Pack and Send again? You Bet!” – T Hopkins, Christchurch

• Business experience • Marketing • Support

• Research • Legal • Operations

• Financial/costs • Selection & training • Communications

business experience One of the most important things that a new franchisee buys is the experience of the franchisor. Every successful franchisor will admit that they made many mistakes in the early days, and it is the wisdom and experience they gained through these that they are able to pass on. The new franchisee pays to learn from someone else’s mistakes. It is therefore vital that the franchisor has experience of running the sort of business that he or she is now offering as a franchise. They may already have successful franchised operations up and running; if not, they should ideally have had a pilot operation running for at least twelve months. This applies equally to locally-developed systems and to franchises brought in from overseas. What works in Australia or the US does not necessarily work here without some adjustment. Look at the background of the franchisor company – and the people involved – too. Here are some of the questions to ask:

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Franchise New Zealand

Winter 2018

Year 27 Issue 02

14/06/18 9:12 AM

250 QUESTIONS

to ask about a franchise What do you need to know before you buy a franchise? Here’s a comprehensive list of over 250 vital questions that will help you make the right decision How many years of experience do you have in this industry? In this business? What is the previous relevant experience of the key people? How many franchised businesses do you have at the moment? How many company-owned outlets do you run? Did you run your own pilot operation in New Zealand before franchising? If not, why not? In the case of a new franchise, how long have you been running the pilot operation, and how successful is it? Can I see the figures? Do you intend to keep running a company-owned business as well as franchising? How many outlets? What guarantee is there that they will not compete with franchised outlets? What is the extent of your own cash involvement in the business? Has any franchised business of yours ever failed? Beware “hidden failures”. They may not count an ailing franchise that was sold just prior to going into liquidation, or was bought back by the franchisor and resold. What mistakes have you made and learned from? Are you a member of the Franchise Association of New Zealand? If not, there is no requirement that the franchisor must provide a disclosure document, offer a seven-day ‘cooling-off’ period or include mediation provisions in the franchise agreement. Many franchise systems are not FANZ members but good franchisors will often have similar arrangements.

research Although the franchisor should provide you with information about the company and the industry in which it operates, it is important that you check out the quality of this information for yourself. Use the internet (our article Researching Your Franchisor at www.franchise.co.nz/article/446 suggests some useful tips on how to do this) and ask the franchisor: What do you see as the future of the industry you are in? How is digital or other disruption affecting it? Where does this company stand in its industry? What do you do to keep up with developments? Is there a viable market for the franchise’s product/service? Is there still room for growth? What is its market positioning, eg. price, image, quality? How do you maintain margins? How dependent is the business on price competitiveness? How good is the competition? These questions apply in all industries, from retail to lawnmowing. What direction is the franchise company moving in? For example, is it adopting new technology as it becomes available/affordable? Is this important? How will new technology affect costs for franchisees?

HELP IN OTHER LANGUAGES Look on our website to find advice and questions in Traditional Chinese, Simplified Chinese, Korean and Hindi. Go to www.franchise.co.nz and search: Advice for New Residents

franchise.co.nz – PUTTING PEOPLE IN BUSINESS

EDIT 250 Questions 46.indd 2

What exclusive rights to a territory do I get? Can my territory be eroded by the franchisor? At a later stage can I sell off part of it if I choose to? How do you define a territory: eg, number of businesses, homes, geographical area, people, type of population? Do I get first option on an additional territory? What is the procedure if you plan to open a neighbouring territory? Could you outline the process and the likely timing from here to starting operations, eg, assessments/interviews, legal, financing, shop-fitting, training periods with the franchisor and in the territory? Who finds a site/conducts market research, etc? How is it done? What initial services do you offer? Can I have a complete list of your franchisees? Can I contact them by phone and visit them if appropriate? May I choose whom I interview? The franchisor may need to introduce you first – see 50 Questions to Ask Franchisees at www.franchise.co.nz/article/935 May I look at your bank reference? Can I see the Profit & Loss account for your existing operations? Your balance sheet? Please name other referees I may approach. It is important to get a feel for how ethical a franchisor is. Find out about the reputation of the company and its owners and key people from external sources, as well as asking the franchisees themselves. Always ask several sources, and don’t be afraid to take up references – that is what they are for.

financial/costs Buying a franchise involves various different costs: initial and ongoing fees, training fees, stock, shop-fitting or vehicles, and so on. If the franchisor provides a good disclosure document, all of these will be documented clearly to avoid any potential confusion or embarrassment at a later stage. However, it is a good idea to ensure you have all the following clearly laid down in writing. Ask the franchisor: What are the total costs? Are they paid all in one go, or in stages? What is the timing? What do the costs include? What capital costs will be incurred in addition to this price, and what for? How much working capital (ie, cash to run the business, cover wages and other overheads) do I need? Starting a business with insufficient capital can be fatal. Do you provide projections for my proposed business? What are these based on? For legal reasons, many franchisors will not produce specific projections but will provide actual figures for existing operations. May I see actual accounts which confirm (or otherwise) your projections? How relevant are these to my proposed territory or site? What makes you say that? Do you recommend that franchisees register for GST? Do these figures take my salary/drawings and depreciation into account? Is there any form of guarantee? How much? Does it vary with the amount I invest? How long does it apply for? When will it be paid? What are the conditions? Have you ever paid out on this guarantee? (see www. franchise.co.nz/article/2475) What assistance do you provide in obtaining finance? Have you already made special arrangements with any banks? Please outline what these are.

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buying a franchise: choosing wisely

What level of cash and/or equity will I need to qualify for finance? Do I buy or lease the necessary equipment? What are the options? If I buy, will I own all the equipment needed to run the business when I have cleared off the borrowing from the finance company? How do you, the franchisor, make your money? This may affect the way the franchisor takes care of franchisees – for example, a franchisor who makes his income from selling franchises is unlikely to be able to offer much in the way of ongoing support. What royalty (or ongoing fee) is charged, and how is it calculated? Do I have to buy all or just scheduled items from the franchisor? Are there any other fees? What levels of support or assistance do I get for the royalty? It is important here to assess value for money, not just percentage figures. How open are financial details within the franchise? For example, does the franchisor declare the level of any mark-ups or commissions/rebates paid by suppliers? Rebates are commonly used to help fund services, but can be a source of friction if not reasonably calculated and openly declared. Are the sales figures or financial results of other franchisees shared for purposes of comparison? Benchmarking is a valuable tool for franchisees. What are the profitability and cash flow projections for my market and others? Look at sales, cost of sales, overheads. Once you have the answers to the above, you should sit down with your financial advisor (see a list of franchise-experienced accountants on page 78) and, based on conservative assumptions in financial projections, ask yourself: What level of income can I make? How much can I take from the business, and when? Does this meet my needs or aspirations?

marketing Marketing is fundamental to the value of a franchise – it is the pulling power of the name above the door or written on the side of the vehicle that should more than justify the ongoing royalties the franchisee pays. Ask the franchisor: What kinds of marketing programmes do you run for the product or service offered by the franchisees? May I see examples? How are marketing programmes decided on? What kind of consultation is there with franchisees about what they want/need? What is the process for evaluating success? What dollar value is spent on marketing? How is marketing funded? How accountable is the franchisor for the funds? Am I required to spend additionally on promotions in my local area? How much? Is supplier support available? Do you have a launch package for a new franchised territory? What experience is this based on? What does it include? Who pays? What help will I receive in arranging local advertising and promotions? Are there standard promotions (eg, radio adverts) available for my use? How does the franchise use social media? Are there standard pages or can I manage my own? What assistance/policies are in place to control the use of social media by franchisees? Please show me examples of marketing material you provide, eg, point of sale material and promotional literature such as brochures, leaflets, sales presenters, digital advertisements, Adwords promotions. Who pays, and what is the cost? How do I make sales? How do I get leads? Do you provide an initial customer base? Do I need to cold-call? Do you provide training in this area? Do I need to have sales experience? Is there a centralised 0800 number for the franchise? How are leads allocated to individual franchisees? Is there a website promoting the franchise? Is it optimised for mobile phones? Is it GPS-enabled? How are leads allocated? Can customers buy direct from the website? If so, are franchisees recompensed for sales in their area? Online sales can be a cause of friction if not properly managed – see www.franchise.co.nz/article/1562 Does the franchise carry out database-related promotions to

48 EDIT 250 Questions 46.indd 3

customers? How is the database created and managed? Can franchisees choose which offers are made to which customers?

legal The franchise agreement is the basis not only of the purchase of the franchise, but also of the ongoing relationship that must exist between franchisor and franchisee. Because of this, it is not the same as a straight sale and purchase agreement and must be examined by a lawyer with franchising experience. A good franchising lawyer will know what is reasonable and what isn’t (see Directory page 78). The following questions are provided for guidance in the early stages, but do not replace a proper legal examination of the agreement. Ask the franchisor: How soon in my investigation of the franchise can I take away a franchise agreement for a legal opinion? Is the agreement negotiable? The usual answer to this is ‘no’, although some specific variation may be reasonable especially if it is a fairly new franchise. Is there a disclosure document that meets the requirements of the FANZ Code of Practice? Do I get this at least 14 days prior to signing the franchise agreement? Do you have minimum performance levels, or a minimum fee, or a minimum purchase level for goods? How achievable are they? What happens if I don’t meet them? Have franchisees ever failed to meet them? What happened? How secure is the franchise tenure? How is my compliance with the franchise system measured? What happens if I don’t comply? How long do I have to remedy any problems? What is the term (length) of the franchise agreement? What happens at the end? Do I have the automatic right of renewal? If not, what is the position? (see www.franchise.co.nz/article/1227) What if I want to sell my business? What is the procedure? Do I have to sell it back to you, or can I sell it externally? What approval do you need to give to a new owner? What restrictions are there affecting my right to sell the business? Do you help me to find a new owner? Do you charge any fee? Does a new owner get a new full term on the franchise agreement, or take over my existing one? Who would train any new owner? If the franchisor, is there a fee? What insurances am I required to have? Do you have an arrangement with a broker or company offering special rates? If premises are required, are they bought or leased? Do you take the head lease and sublet to me, or do I lease direct? Please clarify the arrangements for this. Do you use a specialist property negotiator? How does the length of the lease compare with the term of the franchise agreement? What happens if my lease is not renewed? What would happen if you misjudged the site or if circumstances changed – eg. new roading or shopping centres changing traffic flows? How can I be sure you will do what you promise? What will happen if I don’t like the business? On what basis can I terminate the agreement? On what basis can the franchisor terminate the agreement? Most franchise agreements will have a number of standard and sometimes frightening-looking clauses – see www.franchise.co.nz/article/41. Take advice to determine whether these are reasonable or not.

selection & training Selecting the right people is the single most important thing a franchisor can do. If a franchise consists of people who have little aptitude for the business, they will constantly under-perform, take up the franchisor’s resources and drag the whole system down. Choosing the right people and training them well, on the other hand, will help the franchise fly. Make sure that the franchisor has thought about the type of people who suit the business, and is careful to ensure prospective franchisees fit that profile. Ask the franchisor: How do you assess the suitability of individuals? Do you use any franchise-specific profiling tools tailored to your own business? On what basis do you choose your franchisees? How selective are you? Franchise New Zealand

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Year 27 Issue 02

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What are the most important attributes of a successful franchisee, and do they match mine? How well am I likely to fit with the organisation in terms of personal standards, aspirations and values? Assess this for yourself by looking at the company culture. This is very important – if you don’t fit, look for another franchise with a different culture. How long does the initial training last? Where does it take place? Who pays for transport, accommodation and meals during training? Who conducts it and how well-equipped are they to do so? What does it cover and in what depth? What is the balance of theoretical and practical training? Is there any practical experience in company outlets or with existing franchisees? Has anyone ever failed training? Would you stop the training at this stage if you felt I was not suitable after all? Would any money I had paid be refunded? What proportion? Do you provide on-going training in the form of courses, workshops, conferences, seminars, regional meetings, refresher or follow-on/ advanced courses? Who pays?

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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 www.stihlshop.co.nz/Become-a-STIHL-SHOP-Owner_404.aspx

Do you provide training for any staff I employ? Who pays?

support Getting the business up and running is one thing – keeping it growing and performing well is another. This is where the role of franchise support is crucial. Support is part of the reason for the ongoing royalty fee. Ask the franchisor: Where is your franchise support office based? What does it consist of? Exactly what level of support can I expect? In what areas? How many people are employed by the franchisor? What do they do? How many are in direct support roles, ie, not just in administrative roles? Is there any technical support, or on-going research and development? Do you have specialists in individual functions as well as generalists who understand the overall business? Can I meet some of your staff? Many franchises in their early stages have very few employees – however, as a franchise grows it requires additional support staff to ensure existing franchisees continue to receive service. What support would I receive during the opening period of my business? What on-going support services do you provide? Do you have a programme of visits and meetings to monitor progress and advise on improvements? How do you run the support function? What would happen if I had operational problems that I was unable to solve? What help would I get? How often would I see or hear from you? Is there any support system between franchisees? Would I receive feedback on my performance? How will I know how well I’m doing? Can you demonstrate your capacity to provide the follow-up services needed? What benchmarking systems do you use? Are comparisons of performance across key areas available to all franchisees? Is there help in analysing areas for improvement? This is a key advantage of franchises over independent businesses. Technology makes benchmarking easy nowadays and is part of most good franchise systems.

operations

LOVE YOUR LAND

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Exciting new franchise options available throughout New Zealand

There is no point in thinking about taking on a franchise unless you are convinced that you would enjoy working for yourself, enjoy the day-to-day running of the business, and have the skills or aptitude to do it extremely well. You owe it to yourself to find out: What would I actually be doing on a daily basis? What will the opening hours of the business be? How many hours will I need to work? What are the hours required outside official business hours, eg, for paperwork? Check out your own commitment level. What is the match between what is required and what you are prepared to do? Talk to existing franchisees as well as the franchisor. franchise.co.nz – PUTTING PEOPLE IN BUSINESS

EDIT 250 Questions 46.indd 4

0800 2GET HIGH

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

49 14/06/18 9:12 AM

DON’T

generalise DO check It's often said that buying a franchise is less risky than starting business on your own. This may be true – but it’s totally unhelpful.

The fact is that every franchise system has successes and failures – and some systems are better than others. So you need to dig deep with your questioning of franchisors and their franchisees. Don't settle for generalisations, superficial answers or marketing guff. And while we’re on that topic, please do put real effort, time and creativity into your assessment of any franchise opportunity. A good franchisor appreciates people who show business intelligence by being wellorganised and asking probing questions. But they don’t appreciate it if you take too long or if you don’t recognise that franchising is a two-way street, where you have just as much responsibility as the franchisor. So don’t just scratch the surface or believe sweeping statements – invest in yourself by investigating the franchise opportunity properly. And take advice from people who have spent a lot of time working LOOK BEFORE in the franchise sector. YOU LEAP They’ll help you read between the lines and get the real answers. Franchising is a powerful way of doing business, butMichael the same forces that make Bright franchising great also create vulnerability Specialist Franchise Lawyer and risk. We 021 know what works, what doesn’t, 2666 395 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

FRANCHISE LAWYERS Auckland Phone 09 303 3764

North Shore Phone 09 414 9800

www.gazeburt.co.nz

50 EDIT 250 Questions 46.indd 5

buying a franchise: choosing wisely

Is the business seasonal? When is the best time to start trading? Are there other income streams available out of season? What are the most important keys to success in the business? What are the most common pitfalls? Do I need to employ staff or do all the work myself? What type of people, at what cost? Are the right kind of people readily available in my area? Will the business support a family, or will my partner also need to work outside the business? Is there the potential for my partner to work in the business, too? Is it preferable to be on my own or to have someone else with me? Research shows that having the support and understanding of your family is a key factor in franchisee success. How do I run the business, and where from? What premises and equipment do I need? (eg, a full retail shop-fit or a home office, mobile workshop, vehicle and computer). Can I spend some time with an existing franchisee or in a company outlet to see if I like it? How long? At what stage in the buying process? What can I sell and not sell? Do you provide operational manuals and instructions? Are these regularly updated? Are they online? How will I do my bookkeeping and meet the legal requirements of running a business? Is any administration or bookkeeping included? How soon will I be required to spend money on redecorating the premises or replacing equipment? Do franchisees use a standard computerised accounting package? Is there any custom-designed software? What does it cover: quoting, ordering, invoicing, reporting? Is it integrated with other systems, eg. point-of-sale or stock control? Is it cloud-based so I can access it via the internet when away from the business? How often is it upgraded?

communications For a franchise to be responsive to customer needs, successful and, above all, a ‘happy family’, there must be constant two-way communication between franchisor and franchisee. Ask the franchisor: What systems do you have for keeping franchisees in touch with you and each other? Eg, mailings, e-mail, intranet, closed social media groups, text alerts, telephone support, personal visits, newsletters, seminars, regional meetings, conferences. How regular are these? Is there a formal system for franchisees to make suggestions? Test new ideas? What are relationships like between the franchisees? Between franchisor and franchisees? Do you have a Franchise Advisory Council and how does it work? How are disputes resolved? Is there an alternative disputes resolution procedure? Has it ever been used? What was the outcome?

finally If all the above seems a bit daunting, don’t be put off. Franchisors are used to answering questions about their businesses, and expect to have to satisfy enquirers and their professional advisors as to the integrity of their business. You owe it to yourself to be thorough. If you are thinking of buying a franchise, it will pay you to sit down and work out what you need to know before you meet with the franchisor. It will probably take several meetings, with increasing levels of detail, before you are in a position to make your decision, so be prepared for that. The step you are considering is a major one, so don’t try to do it without taking proper advice. And please don’t be tempted to think that a few hours’ surfing the net is any substitute for doing proper research. There’s some great information available – see www.franchise.co.nz for more advice and information – but there’s no substitute for asking hard questions and getting individual answers. Buying a business affects your family, your finances and your future. Do everything you can to ensure it will be the best decision you ever make. Franchise New Zealand

Winter 2018

Year 27 Issue 02

14/06/18 9:12 AM

opportunity: business & commercial

POWERING ON Growing demand means Jim’s Test & Tag needs more franchisees right now no experience needed Neville cheerfully admits he had little knowledge of workplace safety regulations or electronics before he bought the franchise, but he knew that the multi-service Jim’s franchise group had a good reputation and reckoned that it offered not just security but all the training necessary to fill the gaps. ‘I’d wanted to be self-employed for a very long time, and knew health and safety was a growing sector, but I simply couldn’t find the right opportunity until I came across Jim’s Test & Tag. Neville Phillips: ‘There’s no such thing as a typical day – I’m only surprised at how much demand there is’

ack in 2013, two men from very different backgrounds met on a Jim’s Test & Tag training course in Melbourne. Brian Martin had spent 25 years in the banking sector, while Neville Phillips had worked with horses all his life. Five years on, the pair are running highly successful businesses in New Zealand – Brian in Wellington and Neville in Pukekohe. ‘I think our experience shows that Jim’s Test & Tag is a great opportunity for anyone who has the attitude and ambition to get out there and just do it,’ says Brian. ‘You don’t need to be an electrician if you’ve got the drive – there’s abundant work available for additional franchisees right throughout the country, whatever their background.’ Jim’s Test & Tag provides testing and tagging services for electrical equipment in workplaces throughout the country, as well as fire extinguisher inspections and sales, and even first aid equipment. Health and Safety regulations mean that businesses must ensure their workplace is safe for everyone. Typically, electrical equipment on building sites needs to be checked every three months, while on-premises equipment in workshops needs six-monthly testing – even certain office machines need annual testing – all according to the appropriate mandatory standards. As Brian and Neville explain, all you have to do is turn up at the workplace, talk to customers, test their equipment and sign it off. The Jim’s systems ensure that customers’ equipment is tested and certified regularly – as well as making the process easy for franchisees. Franchisees benefit from multiple income streams and the regulations ensure repeat business. Brian Martin: ‘We could start new franchisees tomorrow’

‘Jim’s doesn’t do things by halves, and that initial training in Melbourne was conducted to highly exacting standards. It covers everything you need to know to get started, and with the support of the network here you’ll develop all the technical skills you need within the first year while building your business. ‘I was looking for variety and my Jim’s Test & Tag business certainly provides that – with all the different workplaces I visit, there is no such thing as a typical day. The only surprise has been how much demand there is. I’m also the Jim’s Test & Tag area franchisor for South Auckland and the Upper Waikato area, and as well as working five or six days a week myself our three franchisees here are also busy so I need more people on board right now.’

put the busy in business Brian Martin went straight from school into the banking industry, but redundancy after 25 years led to a dispiriting job search during which 200 applications only resulted in 3 interviews. ‘My wife Kristin and I discussed the options, including starting our own business, but having never run a business it all looked a bit scary. Franchised businesses looked much better, so we concentrated upon those and found Jim’s Test & Tag. ‘Having grown up on a farm, I’ve always been pretty hands-on and have always been interested in tinkering and electronics. With my banking and finance experience, Jim’s Test & Tag seemed to fill all my requirements,’ he says. ‘So we took the plunge and it was off to Melbourne to do the training. It covered pretty much everything, from the technical side – checking, passing or failing equipment – to the special software that helps customers keep track of compliance and stay up-to-date for legal purposes, as well as marketing, accounting and business management. And of course I met Neville there and we’ve supported each other ever since as our businesses have grown – even if it’s mostly been on the phone because we’re always so busy,’ he laughs. Like Neville, Brian and Kristin also became area franchisors. ‘Friends tell me my personality is as a natural helper, and I do enjoy seeing people succeed and helping them build their own businesses. That’s what the Jim’s model is built for.’ Jim’s Test & Tag franchises are available for around $67,500 +gst (and an approved vehicle), which includes full training and all the necessary equipment to provide a totally professional service, and workplace safety legislation means there are immediate opportunities throughout the country. ‘We could start new franchisees tomorrow if they were available,’ says Brian. ‘Give Jim’s Test & Tag a call. It’s a proven opportunity, a growth business, and you’ll be supported by the best systems and people around. It could be the best investment you’ll ever make.’

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advertiser info

Jim’s Test & Tag www.jimstestandtag.co.nz Contact Peter Mahon P 0800 454 654 peter.mahon@ jimstestandtag.co.nz

51 14/06/18 9:13 AM

opportunity: home & building

OPENING DOORS Dream Doors backs franchisees with winning technologies

ith all the talk about Artificial Intelligence (AI), virtual reality and online retail, you might be wondering whether there are any real business opportunities left for non-geeks. Well, people still need to eat and socialise, and those are exactly what kitchen renovation franchise Dream Doors provides. ‘The kitchen is where people come together not just to cook but to entertain and enjoy each other’s company,’ says Dream Doors founder Derek Lilly. ‘We turn tired old drab spaces into bright, modern places where people love to get together. We’ve built a huge fan base since launching in New Zealand ten years ago, with thousands of happy customers, and we’ve expanded into Australia and the USA too, with 118 franchisees around the world now.’ As well as making people happy, Derek is also a big fan of technology. ‘Because the kitchen is the heart of a home, buying or renovating one is often an emotional process for customers and a complex one to manage. At Dream Doors, we’ve developed unique technologies to help our franchisees get clients, manage their businesses efficiently and ensure customers are satisfied all the way through the process.’

support to succeed The first technology is a bespoke advertising management system that helps franchisees generate customer enquiries cost-effectively and enables them to grow in line with their business plan. ‘It tells them what to spend and where to

spend it in order to achieve their goals,’ Derek explains. ‘Those goals are tracked through our unique Franchise Derek Lilly Management System (FMS), which won the Digital Innovation category at the Westpac New Zealand Franchise Awards last year against some very stiff competition. This provides measures and controls that help franchisees manage their business with accurate information on a daily basis. It also includes customer relations management software that automatically checks satisfaction level at four key touchpoints during each project.’ And new Dream Doors franchisees also benefit from a third piece of technology – a new cloud-based training system which provides components and manuals covering every aspect of running their businesses. ‘But it’s not just about technology – we also provide personal support through our franchise management team, who conduct monthly reviews with every franchisee to help them stay on target.’

rewarding business and sales skills Derek says that to convert all this activity into income, franchisees need business and sales skills, and equity of around $200,000, which includes working capital. ‘In return, Dream Doors is a solid opportunity that offers real rewards,’ says Derek. ‘One franchisee is making $500,000 advertiser info profit on $2.5 million turnover Dream Doors (NZ) Ltd after just three years of hard work www.dreamdoorskitchenfranchise.com building his business. ‘We need more people like that for Auckland and in many parts of New Zealand, as well as for opportunities in Australia and the USA, so contact us today and find out more.’

Contact Derek Lilly P 0-3-443 5133 P 0800 437 326 M 027 213 5133 del@dreamdoors.co.nz

BUILDING SOMETHING IMPRESSIVE? GET THE RIGHT LEGAL ARCHITECT Superb quality, exceptional service.

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Franchise New Zealand

Winter 2018

Year 27 Issue 02

14/06/18 9:13 AM

opportunity: business & commercial

PEOPLE AND CLIENTS FIRST Paramount veteran is sad to retire, but has some valuable tips to offer to new franchisees

rnie Becker has had a colourful life, from truck driver to fireman to franchisee via the New Zealand Herald and the Royal New Zealand Navy. Now, at the age of 80, he has decided to sell the Paramount commercial cleaning franchise that he has owned for 16 years. ‘Not that I’m retiring,’ he laughs. ‘Selling the franchise simply enables me to concentrate on my passion for riding quarter horses with my family. I’m treasurer of the NZ Quarter Horse Association and I register all the stallions, so I intend to keep busy.’ In addition to his many careers, Ernie began a cleaning business in the 1970s, up at 4am each day to start work. ‘Being in the cleaning industry, I got to know Galvin and Suzanne Bartlett who had founded Paramount and developed a great friendship with them. I joined them during the early 80s when they only had around 40 staff. Today, they have more than ten times that number, both staff and franchisees, and thousands of clients across several countries. It was Galvin that persuaded me to become a franchisee after working with them for a few years and it was clearly the right move. ‘By the time I decided to sell, I was employing seven staff to do the cleaning while I managed the business and looked after my customers. I’d generally see all of them at least once a week and I built up a great rapport with them. Most of the new business came from personal referrals, on the basis that we did a great job and looked after our clients – in fact, it got to the point where many clients stopped tendering for the cleaning contracts because they knew they could trust us to see them right,’ Ernie says with some pride.

buying a job or owning a business? As a long-standing franchisee, Ernie helped with training for Paramount, teaching new entrants systems, techniques and, above all, the right attitude. ‘I’d always ask new franchisees why they wanted to buy a franchise, and generally they’d reply, “Because we want to get into Quarter horses are renowned for sprinting short distances – but Ernie Becker (pictured) was in his Paramount franchise for the long haul

business.” I’d then explain the difference between buying a job and owning a business. You might start with some contracts, but the only way to grow a business is to do a good job and then get out and chase more work. ‘Also, you need to be prepared to go on learning so that you have a thorough understanding of the requirements and the best solutions for each job. A bit of water and a rag doesn’t get a cleaning job done – you need to get regular training and stay up with the latest technologies and materials. ‘Commercial cleaning is a very competitive industry, with a relatively low cost of entry, so proving to your customers that you are up-to-date and aware of their needs and wishes is crucial. They have to know they can rely on you – totally.’

family feel Paramount Services is one of New Zealand’s largest commercial cleaning operations, servicing over 1,200 banks, cinemas, offices, industrial sites and all sorts of workplaces right around the country. ‘Despite that, the franchise still retains a family feel,’ says Paul Brown, the company’s general manager. ‘Galvin and Suzanne are still involved, and although Ernie’s now moved on, we have many franchisees and team members who have been with us for many years. ‘We’re an environmentally-conscious company that leads the way in areas such as re-cycling and non-chemical cleaning. And we believe in looking after our franchisees as much as our clients. Quite a few of our franchisees have been recommended to the business by their friends, and several former employees have been so impressed they’ve also bought into the system and are now running successful businesses. They know we care about our franchisees and will go the extra mile for them, just as they do for their customers.’

guaranteed contracts, guaranteed payment Paul says that Paramount is still growing and has new opportunities available in many parts of the country starting from around $30,000, including equipment. Franchisees can start small, enjoying flexible hours as they build the business, then employ teams as new clients come on board. ‘Commercial cleaning is an essential service, so there’s no shortage of work – in fact, we will find your first contracts for you and give you all the support needed to build your business to the level you want,’ Paul explains. ‘It’s a safe and rewarding system and we give you full training so you don’t need experience. We even handle the billing and collection so you don’t have to chase money – you get paid on the 25th of the month, no matter what. ‘We want people who are prepared to work hard and have the talent and ambition to succeed,’ says Paul. ‘Ernie is now enjoying a well-earned retirement, but his words will inspire Paramount’s next generation of business-building franchisees. If you share his attitude, you could be one of them. Call me and find out more.’

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advertiser info Paramount Services www.service-is-paramount.co.nz Contact Paul Brown P 0-9-376 7850 M 0275 430 233 pbrown@paraserve.com

53 14/06/18 9:13 AM

buying a franchise: relationships

istockphoto.com/olm26250

how franchisees can increase their sales Greg Nathan reveals the seven habits of top franchisee sales performers

s disruption in its various forms hits many industries, so franchise networks are responding. One particular area of interest is the fight against what is called ‘margin compression’, where costs are rising faster than sales. The Franchise Relationships Institute (FRI) has recently been conducting a research project on this topic to discover how franchisors and franchisees are meeting the challenges. We’ll be publishing a full report on our findings shortly; in the meantime, as part of the study we asked senior franchisor executives what their highest performing franchisees are doing that is enabling them to achieve superior sales performance. Here’s what we discovered about the seven habits of top franchisee sales performers.

5. They obsessively focus on understanding and staying connected to their existing customers. Top franchisees never take existing customers for granted. And they understand that some customers deserve extra attention because they are more valuable to the business. Maybe they spend more, buy more often, promote the business to friends or family, or are just a pleasure to deal with. Not only do these franchisees take the time to understand the profile of these customers and categorise them in their CRM, they put aside time regularly to stay in touch. 6. They use systems to measure sales related KPIs and respond quickly to new opportunities.

Rather than passively donating money or products, top franchisees find a way to extract value from their relationship with community groups. They turn up to football matches to present prizes. They find ways to encourage kids and parents to use their business. They also network vigorously with other local business owners, particularly those that share a similar type of customer.

Top franchisees collect and measure the indicators that predict sales performance. These include the behaviour of customers, such as the nature of their enquiry, and the behaviour of staff, such as how quickly they are getting back to customers. Top franchisees especially appreciate the direct correlation between the speed of response to a customer enquiry, and the likelihood this will convert into a sale. They also treat all leads with care, understanding that online leads can be just as lucrative if these are managed effectively.

2. They coach staff on the specific behaviours that drive sales and customer satisfaction.

7. They wisely invest in local area marketing and initiatives to keep their business fresh and relevant.

Top franchisees understand their customer journey intimately. They know the moments of truth that, if handled well, delight their customers and, if handled badly, alienate them. For instance, the warm welcome immediately as a customer enters their shop, as opposed to being ignored while staff are looking at their phone. Or the paraphrasing of what a customer needs, as opposed to assuming and getting it wrong. And they constantly reinforce these behaviours.

This is the only habit that involves a direct financial investment. This may include upgrading the appearance of their premises or using a paid marketing channel. It may also involve pilot testing innovations for the franchisor as a way of staying at the forefront of new trends. But before spending money, top franchisees always ask themselves what outcome they are wanting to achieve. More enquiries from new customers? More enquiries from existing customers? Existing customers to spend more? Or perhaps to boost their reputation as the best place to do business.

1. They actively engage with their local communities and collaborate with other local businesses.

3. They set challenging goals, and seek feedback and ideas from their field manager and peers. There is a thinking style called a Growth Mindset that enhances performance. Top franchisees have a Growth Mindset. They enjoy putting in the effort required to achieve success, and they enjoy setting goals that stretch them. They also adopt an attitude of genuine curiosity to learn from other franchisees who are achieving sales success, and they seek feedback from others on how they can improve. 4. They create a vibrant internal culture that inspires high levels of brand passion in their team. Every business has a culture – an accepted way of doing things. This includes how people approach problems, talk about customers, and work together. Top franchisees understand that the culture starts with them, and they model the behaviours they expect from their team. They understand that how they show up each day is probably the single most important factor for inspiring their team to do their best.

54 EDIT Sales 54.indd 1

recruit, coach, educate Yes, business is tough. But these seven habits clearly show there is much franchisees can do to improve their sales performance and reverse the margin compression that is dogging so many businesses. Smart franchisors will be paying attention to these habits in how they recruit, coach and educate their franchisees. The FRI team has developed some interactive conference presentations to help franchisors get these messages across to franchisees, which I look forward to sharing at the National Franchise Conference about the author in Taupo in August (see page 30). Thanks to the franchisors who assisted with this study, and we look forward to sharing more of the findings with you. Franchise New Zealand

Greg Nathan is founder of the Franchise Relationships Institute, a speaker at franchise events world-wide and author of several books on franchising.

Winter 2018

Year 27 Issue 02

14/06/18 3:08 PM

franchise management: customer service

the secret lives

OF SHOPPERS

Shoppers Anon helps franchises understand the customer experience to help build better businesses

good franchise combines the commitment of locally-based business owners with the brand, buying power and systems of a larger enterprise. But with independent ownership come potential compliance issues in areas from brand standards to hygiene and safety. Compliance is vital in a franchise, where the actions of one franchisee can damage the investments of all the others. And compliance isn’t just about protection – it’s also about ensuring good service, maximising sales and helping franchisees build the best possible businesses. That’s where Shoppers Anon comes in, providing secret shoppers to measure a business from a true customer perspective. ‘Franchisor teams have a massive job to do during field visits, and can’t spend all their time on compliance issues,’ says Nigel Burrows, the CEO of Shoppers Anon. ‘Also, staff know when they’re around so may modify their behaviour. Mystery shoppers can gather considerable data really quickly that will help franchisors and franchisees get real feedback on the customer experience and identify areas for training and improvement. That applies in any industry, from retail to transport, hospitality to childcare.’

Michelle Field and Ross Cohen of Shoppers Anon a mystery shopper, it can only be a good thing, and along the way you will increase compliance and improve everyone’s return on investment.’

dramatic improvements Shoppers Anon is keen to work with franchises in any industry to help them ensure compliance and build their businesses. ‘We’ve seen some dramatic improvements achieved,’ Nigel says. ‘In one franchise, non-compliance in an area with legal implications was in the region of 25 percent. By applying the test, advertiser info measure, train and re-measure approach, we reduced that to zero. The right Shoppers Anon programmes can have a massive www.shoppersanon.co.nz impact on sales, too. Contact ‘Shoppers Anon can give you clear, resultsoriented analysis on whatever aspects of your business are crucial to you. Contact Michelle to find out more.’

Michelle Field P 0-9-481 0156 M 021 032 9163 mfield@shoppersanon.co.nz

what’s really happening? Michelle Field, the company’s Mystery Shop Programme Manager, explains. ‘Take a supermarket, for example. One of our shoppers can visit and quickly assess whether brand standards are being met on everything from in-store signage to staff uniforms and customer service. They can test whether answers to questions are adequate, and check product labelling and whether out-of-date items are being displayed. Mystery shopping is part of a whole process – test, measure, train and re-measure – that can help businesses improve and grow, and helps discover whether the training that’s in place is really effective at customer level.’ Shoppers can also carry out mystery shopping by phone and test online enquiry systems and responses. ‘It’s all very well saying someone will come back to you within a certain time, but how do you know if that’s what really happens?’ Michelle asks. ‘And if something goes wrong on your website and a link goes down, people won’t usually take the trouble to tell you – they’ll just go elsewhere. Assuming everything is happening as it’s supposed to can kill any business quickly.’

maximising returns Shoppers Anon is an Auckland-based company that was founded some 15 years ago. Now part of the global NSF Group, it has access to experience gained working with some of the world’s best-known franchise brands. In New Zealand alone, it engages almost 3,000 shoppers of all ages throughout the country. ‘We send humans to interact with humans, to experience the business at the level of the customer – the one handing over the cash,’ Michelle says. ‘After all, they are what any business is all about. We can measure the feel-good and warm fuzzy factors as well as the facts. How was the customer made to feel? Were their needs met or their concerns addressed? How likely are they to come back?’ Nigel says that a good mystery shopping programme should be about maximising return for franchisees, although he accepts that some are hesitant to embrace the idea at first. ‘We recommend being completely open about the reasons for it and what it will be looking for – ways to improve service, increase staff’s skill sets and grow the business. We advocate using the reports in a positive way and incentivising people for a job well done. Build the excitement and reap the rewards – if every shopper gets treated as franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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55 14/06/18 9:13 AM

opportunity: food & beverage

start young GROW FAST Domino’s offers multiple opportunities to young entrepreneurs

atrick and Carmen Cheng were only in their mid-20s when they bought their first Domino’s store. ‘It was too good an opportunity to miss,’ says Carmen. ‘Patrick was a manager in a Domino’s store in Dunedin, and when the franchisee wanted to retire he suggested we should buy the business. I was working in a government department at the time – totally different, I know – but we knew the system inside and out so we didn’t think the risk was huge. ‘With Patrick handling operations and me doing the majority of the paperwork and payroll, you could say it’s been a pretty successful partnership, as we now own three stores.’ Carmen grew up in Oamaru and Patrick arrived in New Zealand when he was 16. The couple met as students while studying in Dunedin and Patrick started working at Domino’s to help pay the bills before buying the franchise in 2010.

hard work pays off ‘In the early days I sometimes worked over 80 hours a week, but now I have the children – seven and four – I’ve stopped that,’ Carmen laughs. ‘After a few years, we were very keen to open another Domino’s store in Alexandra and the franchisor was also keen for us to expand, but they very sensibly steered us towards opening a second store in Dunedin first. Two years ago, we did just that. The Domino’s team found us an excellent location in a much newer and more vibrant part of the city, and did all the work and shop fit-out. We were a bit concerned about what our regular customers would make of it, but both stores have thrived since we opened the second one. Now Patrick and Carmen have opened their third, taking Domino’s to Alexandra in May 2018. ‘We’ve had the great experience of buying an existing store, then opening two brand new ones,’ Carmen smiles. ‘The keys to the business are good staff, good management and good service, and we were able to offer our Dunedin store manager a promotion to Alexandra which he was delighted with. It’s been a great move all round and the new store has exceeded all our expectations so perhaps one day we might open another. We are very grateful for all the opportunities Domino’s has given us.’

embracing change There are over 110 Domino’s pizza stores in New Zealand, all of which benefit from the systems perfected in 2,200 stores across the 7 countries in which Domino’s Pizza Enterprises operates.

Patrick and Carmen Cheng with their young children

‘Over the years Domino’s has stayed number one in the pizza world by innovating and embracing new technology as soon as it reaches the market,’ says Scott Bush, general manager for Domino’s in New Zealand. ‘We have always been at the forefront of change, and our franchisees embrace that and reap the benefits. ‘We’ve made huge investments into digital technology over the years. Live Pizza Tracker was developed by us 11 years ago as a world-first project that allowed our customers to track their pizza all the way through make, bake and delivery in real time so they could ensure they knew when to expect it or arrive on site just as their fresh, hot pizza was pulled out of the oven. Now we offer mobile apps on all platforms, even on smart watches, with online ordering systems which enable customers to order their favourite pizza in just three clicks. Today, Domino’s accounts for 2.5 percent of all online transactions in New Zealand. ‘We’re delivering our pizza faster, too, with new stores all being equipped with ovens that cook pizzas to perfection in just four minutes,’ says Scott. ‘But it is not just the technical world that Domino’s is focusing on. At heart, we are dedicated to providing great food. We are continuously testing recipes and ingredients to ensure fresher, tastier and healthier products. And we take pride in our real brick and timber fit-outs which reinforce the quality behind all our products.’

turn energy into results Of course, delivering on customer expectations comes down to the franchisees and their teams in every store. ‘That takes good systems and good training, which we can provide,’ says Scott. ‘But on top of that, it also requires lots of energy and total commitment as demonstrated by Carmen and Patrick. They’ve turned Patrick’s original part-time job into a thriving multi-store business, and there are plenty of opportunities for others to do the same. ‘You don’t need food industry experience but you do need to be able to build and lead a team, manage a high-pressure business and apply Domino’s proven systems efficiently and effectively while looking for continual improvement. We love entrepreneurial folk who will challenge our systems in a positive and productive way – that’s one reason we have stayed number one for so long. If that sounds like you, we have new locations available right now in regional centres and fast-growing areas. The investment for new franchisees is from $500,000 depending on location, and the returns advertiser info can be considerable. ‘We’d love to hear from more people like Carmen and Patrick who are prepared to do what it takes to build a thriving business of their own. Contact us today and tell us if that’s you.’

franchise.co.nz – PUTTING PEOPLE IN BUSINESS

Dominos 57.indd 1

Domino’s www.dominosfranchise.co.nz Contact Franchising Team P 0508 4 FRANCHISE 0508 4 37262 franchise.recruitment@ dominos.co.nz

57 14/06/18 9:18 AM

buying a franchise

OWN A RODNEY WAYNE SALON

IT’S YOUR TIME TO SHINE

what your lawyer should tell you Scott Goodwin and Nicole Duncan outline the 7 most important points to know before you buy a franchise

aking up a franchised business can be a stressful yet exciting experience. Buying any business, franchised or not, can be risky, and entering into a franchise agreement is a serious undertaking. It’s a binding legal contract which sets the basis of your relationship with the franchisor for the next 5, 10 or even 20 years, so you shouldn’t take it lightly. Getting advice from an experienced franchise lawyer is therefore a must. Here’s a list of seven of the most important things your lawyer should tell you – and there are many more!

1 doing due diligence is important ‘Due diligence’ is like the pre-purchase inspection you might do on a house or car. Make sure you undertake thorough due diligence prior to entering into any franchise agreement. Some of this you will need to do yourself, but much should also be done by professional advisors who have specialist knowledge and have been here before. Apart from your lawyer, your research should include talking to an accountant experienced in franchising. This will help ensure the business is financially and operationally sustainable and viable; validate assumptions applicable to costs and forecasts provided by the franchisor; and compare debt-to-equity ratios. Also, don’t be scared to talk to other franchisees to evaluate their experiences with the franchisor and the system, and ask the franchisor questions about (among other things) the franchise system and the franchisor’s background and experience.

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.

There’s a list of Over 250 Questions to Ask on page 46, and specialist lawyers such as Goodwin Turner provide clients with a checklist of items to discuss with the franchisor. These include, for example, whether a franchisee has ever failed, the expected cost of fit-out, the level of ongoing support to be provided by the franchisor, and so on.

2 review the manual The manual, (or often a set of manuals), lays out the systems and tools which enable franchisees to operate their business on a day-to-day basis. Ask the franchisor for a copy of the manual which you can see and read before you sign the franchise agreement. Expect them to require you to sign a confidentiality agreement before they do so – after all, the manual contains their ‘trade secrets’. It is important that you are sure that you can comply with the manual from day one (as well as at all times during the operation of the business). Most franchise agreements will note that the terms of the manual are incorporated into (and form part of) the franchise agreement, and that a breach of the manual is deemed to be a breach of the franchise agreement. In other words, if you don’t comply with the manual then you will likely be in breach of your franchise agreement. This is never a good thing as it could expose you to risk of the franchise agreement being terminated.

3 ensure you can comply with the system

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.

58 EDIT Legal 58.indd 1

Many people buy franchises with a dream of ‘being their own boss’. While owning and operating a franchised business does allow this to a certain degree, you need to be prepared to follow the franchisor’s systems and rules strictly. Franchisors rarely tolerate any departure from their system and their rules because ‘rogue’ franchisees who deviate from the correct standards risk exposing the franchisor and other franchisees to significant loss and damage. Prior to buying any franchised business, then, you’ll need to ask yourself whether your long-term goals align with the franchisor’s. Are you prepared to work within the system, and are you certain that you are the right fit for this particular franchise? Franchise New Zealand

Winter 2018

Year 27 Issue 02

14/06/18 9:14 AM

4 don’t be scared to ask for amendments or clarifications to the franchise agreement It is fairly common for a franchisor to tell prospective franchisees that they won’t agree to any amendments to the franchise agreement and to effectively ‘take it or leave it’. However, while most franchisors are unwilling to make substantial/material changes to the franchise agreement, they often may agree to record clarifications or special conditions to the franchise agreement so long as those clarifications or variations are reasonable and don’t conflict with the operation of the system and the fundamental rights/obligations of the parties. We have seen this recently with service-related franchise systems. An experienced franchise lawyer will know what to look for and what is or isn’t reasonable.

5 know what you’re buying Consider all of the things that may expose your business to a loss of profits or put you at risk of losing your investment altogether. For example, is there a franchise territory? If so, is it exclusive (ie. limited to you only) or non-exclusive (ie. can/does it include other operators of the same system)? Can the franchisor operate any business within your franchise territory or online? Would you have first right of refusal on a new outlet in a neighbouring area? What restrictions and safeguards do you have? Are there any events that might trigger the termination of your franchise agreement by the franchisor? Common clauses might include not being up-to-date with ongoing franchise fees (royalties), not making payments to third parties (eg. suppliers) on time or not meeting minimum performance criteria such as hygiene, brand standards or sales volumes.

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6 don’t focus your inquiry solely on the franchise agreement

In addition to the franchise agreement, there are a number of other important documents that you should carefully review and seek legal advice on. For example, documents that deal with the occupation of premises from which the franchised business is or will be operated, and documents outlining the terms and conditions of supply/trade, etc. Leases generally are relational contracts (like franchise agreements).

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*Total number includes all LINK international website traffic. LINK New Zealand offices are Licensed REAA08.

selling businesses

linkbusiness.co.nz p.m. 18/01/2017 1:32:35

Buying a Franchise_NZ

2017.indd 1

The autho

rity on selling

businesses

Call us for a FREE business appraisal today,

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buying a franchise Entering into any lease often requires you to make a long-term commitment to relatively onerous obligations and usually requires personal guarantees to be provided to the landlord. Your lawyer should review all relevant occupation documents and provide you with advice on them. If you require a lease or sublease of premises from which to operate the business, then it is wise to ensure that the lease period(s) marry up with the franchise period(s)/term(s). This is because you will want to avoid the risk of having a franchised business with no premises to operate from, or the danger of having to pay rent after the franchise term is at an end.

7 have an exit strategy As with any business venture, it is important to consider at the outset what your exit strategy might be if your circumstances change and/or you become no longer willing or able to operate the business. This is no different in franchising; however, most franchise agreements prevent franchisees from being able to terminate the franchise agreement after any initial cooling-off period and prior to the end of the franchise period/ term (ie. due to a change of circumstance, change of mind or change of ability or willingness to work). That doesn’t mean you can’t sell the business – in fact, many people choose to buy a franchise precisely because the brand makes it a more valuable asset when the time comes to sell. However, simply ceasing to operate the franchised business would be likely to expose a franchisee to (among other things) a risk of the franchisor taking legal action against the franchisee, especially the case if the franchisor expected to receive royalties for the duration of the franchise period/terms. Prior to buying any franchised business, then, prospective franchisees should take advice on their potential exit strategy: that is, how they might be contractually entitled to exit the franchise prior to the end of the franchise period/term without causing the franchisee to be in breach of the franchise agreement. For example, does the franchise agreement allow the franchisee to terminate the arrangement at any time before the end of the franchise

period/term? Does the franchise agreement allow the franchisee to sell the business during the franchise term? If so, what is the process and the likely cost involved? Are there any fees associated with selling the business? Does the franchisor have a first right to purchase the business? Does the franchisor have to approve the purchaser? (this is a common requirement). What happens to the business and the franchisee’s rights under the franchise agreement if you become seriously ill (or die)? If the proposed exit strategy is achieving a sale of the franchised business, then the franchisee should be realistic about the sale price that the business could achieve. Franchisees often make their money while they are operating the business rather than upon sale, although this varies according to industry and brand. The sale price may also vary depending upon how near the sale is to the end of the franchise period/ term (although some franchisors will grant a new term to an incoming purchaser).

don’t make assumptions

Whatever type of franchise you are buying, it pays to get proper advice from an experienced franchise lawyer before you sign anything. Franchising can be a great way of getting into business, but there are no guarantees – you need to take care and take advice to protect yourself and your investment. It’s dangerous to assume that a business will succeed because it has a good name, or because it seems to be everywhere, or because your brother/cousin/friend/person you met at a party is doing OK. Every franchisee is different, every location is different and markets change over time.

about the author

The seven areas above are just some of the many things you need to get checked out by specialist advisors. It makes sense to get the experts to do some of the work for you before you make your final decision.

Scott Goodwin is Director and Principal, and Nicole Duncan an Associate, of Goodwin Turner, specialist franchise lawyers. Based on the North Shore, they service clients all over New Zealand.

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Franchise New Zealand

Winter 2018

Year 27 Issue 02

14/06/18 9:14 AM

opportunity: food & beverage

Long-established Streetwise Coffee franchisees prove there’s plenty of potential

coffee carts

Sharon McFadyen: ‘The franchisors have been brilliant’

DOING THE NUMBERS M

the carefully-designed carts offer a lower-investment entry point into the café business. They operate from fixed locations, ensuring regular business but, because the carts are relocatable, franchisees are less exposed to the whims of landlords and traffic flows.

ichael Tuttiett is a plain speaker. ‘No business is easy – everything requires hard work when you get started, and that’s why my partner Hamish and I chose to take up a franchise rather than trying to do everything ourselves. We knew we’d have a system to operate and guidance to fall back on. It was the right decision – buying a Streetwise Coffee cart was the best thing we could have done, and 18 months on we’ve done so well that we’ve invested in a second outlet.’ Michael Michael had been in real estate for 10 years and liked Tuttiett: the idea of being his own boss. ‘I was very familiar ‘The best with Streetwise Coffee’s eye-catching outlets, and couple of years the business had been on my radar for a long time. of my life’ It looked interesting, relatively simple to operate and had a very good following. This gave me a lot of confidence, and when the franchise in the Horowhenua town of Shannon came on the market, I leapt at it.’ In common with all Streetwise Coffee carts, the Shannon outlet was strategically sited to exploit foot traffic eager for first-class coffee and a simple range of snacks. Having opened ten years ago, it was already a solid business before Michael bought it in November 2016, but he has grown it considerably since. ‘That’s down to several factors, but the most important is building customer relations. When you remember a regular’s preferred coffee every time they turn up, it makes them feel good. Getting to know them and being completely committed to an excellent coffee every time is key.’ A coffee cart might sound like a ‘small’ business, but it certainly does the numbers. ‘We’re open from 5am until 5.30pm, seven days a week,’ says Michael. ‘I do at least forty hours a week myself, inherited two wonderful staff when I took over and have since had to add another. Enthusing staff is a major part of my role, and by looking after them and offering bonuses we get that loyalty returned – they are a great team.’ Michael and Hamish have recently decided to branch out by buying another Streetwise Coffee cart in the nearby town of Sanson. ‘Shannon was doing so well that there was some spare cash at the end of the year and it made sense to us to expand. I’m very pleased I bought into this franchise as it has been the best couple of years of my life. I won’t look back and wonder, “What would life be like if I hadn’t tried?” I have, I’m making money, and I have lots of happy customers.’

profitable model Streetwise Coffee has proved hugely attractive as a business proposition, with 14 franchisees operating 23 locations around the country. At around $155,000, franchise.co.nz – PUTTING PEOPLE IN BUSINESS

Streetwise 61.indd 1

‘This philosophy has worked well,’ explains Jol Glover, who owns the franchise with business partner Donna Ferrall. ‘It helps maintain profitability and, unlike mobile vans, means no additional overheads such as fuel, rego or WOF.’

inside knowledge Sharon and Mark McFadyen are another duo who realised a franchise would guide them into their own business rather than their learning through costly mistakes. ‘By good fortune, our local Streetwise Coffee cart in Kapiti was up for sale,’ says Sharon. ‘Good friends have owned another outlet in Tawa for some years so we had plenty of inside information and advice. We did a lot of homework, had many meetings with our friends and the franchisors, then decided to put our savings into the business.’ Sharon took over the business in January 2018 and has already built up the business ‘very satisfactorily’ using her retail skills from previous jobs to engage customers under the cart’s built-in awning and the barista skills she learned during training from Streetwise. ‘Comparing figures with last year, we are clearly showing good growth,’ she says. ‘Frankly, the franchisors have been brilliant and I’m clear now I wouldn’t have been able to do it without their help and support. Yes, it was scary when I started because all those little details of business seemed to be a bit overwhelming but the Streetwise team stayed with me until I was comfortable. Now we are seriously thinking about another cart for Mark to run.’

own your own business Jol and Donna are delighted with the success that Michael and Sharon have achieved and say that Streetwise Coffee has many more opportunities in cities and towns throughout New Zealand including Wellington, Auckland, Putaruru, Paihia and Rotorua. ‘Experience shows that franchisees can gross $90,000 for themselves after all costs, and many are doing even better – as well as building a great asset for the future. If you want to do something you love and grow a strong, secure business, we’d love to help you.’

advertiser info Streetwise Coffee www.streetwisecoffee.co.nz Contact Donna Ferrall Director/Franchisee Sales M 027 552 2055 donna@streetwisecoffee.co.nz

61 14/06/18 3:25 PM

GRAND CHRISTMAS PACKAGE

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Grand Millennium Auckland 71 Mayoral Drive, Auckland, 1010 T +64 366 5633 E sam.horsnell@millenniumhotels.com

opportunity: food & beverage

SMOOTH

operators Zexx franchisees sell their healthy iced drinks and cocktail mixes into schools and businesses

hat’s the best product to sell in the refreshment business these days? Sugary drinks are under fire, alcopops are past their peak and energy drinks are all about the marketing. What about something that’s healthy and delicious and can be served as a soft drink, sports drink or instant cocktail? Sounds interesting? If you have sales skills and want your own business, Zexx could be for you. Zexx was founded in 2006 after Derek Sampson and his family returned to New Zealand following a highly-successful career in sports management. ‘Back then I knew nothing about the food and beverage industry, but my wife was on the board of a local school and the problem of sugary drinks was becoming a major issue. The big guys were tackling it by developing flavoured waters, which met the requirements of providing healthier options in schools, but were uninteresting to kids – they just went off to the local dairy instead. I began to wonder if there was a really healthy, exciting alternative.’ With characteristic determination, Derek set about designing a formula. ‘The result was a top-quality range of low sugar, low fat, real fruit frozen juice products that are as healthy to consume as they are easy to produce and serve,’ says Derek. ‘The schools loved them and from there the potential market has simply blossomed to cover the retail, hospitality, event and party hire sectors. It’s a wholly Kiwi-owned and operated business, although we are now distributing throughout the Pacific Islands, Australia and Hong Kong as well.

‘Many bars and outlets suffer from part-time staff who over-pour or are too slow,’ Derek explains. ‘Zexx is especially popular among retailers because it is consistent, and direct delivery from manufacture to customer is completely reliable. And, of course, we can tailor-make products to a client’s specifications, too. The result is a big opportunity for a small investment.’ Zexx franchises are available from $5,000 to $25,000, depending on area, and there are no ongoing franchise fees. ‘Do a good job and the return on investment can be considerable,’ says Derek. ‘We are looking for people prepared to put in the leg-work and match our product excellence with the same level of customer service. If that’s you, contact us!’

advertiser info Zexx NZ www.zexx.co.nz Contact Derek Sampson P 0800 556 022 M 021 724 290 derek@zexxnz.co.nz

market leaders, room to grow Zexx produces a large range of premium quality drinks to suit many palates. Fruzo is the market leading fruit juice-based slushy, while Fruzo Sport is an isotonic thermo-regulation drink for high performing athletes. Fru-licious is a vanilla-based mixture designed for instant pure smoothies, which is incredibly popular – we sell hundreds of litres of concentrate a month at the Auckland Botanic Gardens,’ Derek says proudly. ‘Then we have Triple 3, which is a full fruit “slushy” cocktail with 7 percent alcohol in a wide range of flavours, and Triple 3 Zero, a full fruit, no preservative, alcohol-free cocktail,’ Derek explains. ‘They all come in concentrate form and we supply and maintain dispensing equipment that ices, chills and pours product to a standard consistency. We use the best equipment available in terms of reliability, ease of operation and cleaning, which reduces site preparation and staff training time to a minimum.’ Zexx currently has over 200 locations in New Zealand with 50 percent of these being in schools. ‘We’re now looking for additional franchisees to help develop more locations in all sorts of outlets,’ Derek says. ‘We handle distribution ourselves so it’s very much as sales and marketing role. The opportunity would suit someone looking for a two to four day a week commitment. They might be looking for an add-on to an existing mobile hospitality or distribution business, or be an experienced sales person looking for some flexibility after returning to the workforce. ‘Opportunities are available in every region other than Northland, and particularly in Wellington, Wanganui, Taupo, Rotorua and Tauranga.’

big opportunity, small investment Zexx is the chosen supplier to many top brands including restaurants, cinemas and event centres. Cobb & Co, Mexicali Fresh and the ASB Tennis Classic all use Zexx products to create frozen cocktails or fruit-based drinks quickly, easily and efficiently, and Zexx believes there is plenty more business out there. franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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opportunity: leisure & education

SERIOUS FUN Scratchpad Technology Learning Centres help children take creative control of their futures

n a world where we are becoming increasingly dependent upon technology, Vijesh Nangia believes we need to teach our children to become creators, not just consumers. In 2015, he opened Auckland’s first Scratchpad Technology Learning Centre to give kids a place where they could learn to control computers and phones rather than be controlled by them. That first centre in St Lukes took off rapidly, with after-school classes and weekend sessions being joined by a complete range of holiday programmes and parent/child sessions. After two years of development, Scratchpad opened a pilot operation in Botany with Lynette and Jaques Hefer at the helm, and now the franchise is ready to go national. It’s already running virtual sessions across NZ and proving demand exists everywhere. Lynette Hefer has been a developer, trainer and project manager within the IT field but she reached a point in her career where she wanted something more. ‘I was starting to think about what was next, and I was looking for an opportunity which would allow me to give back to the community and help where I could. ‘Vijesh is a director in a leading IT consultancy and Jaques knew him from that. We were excited to hear what he was doing with Scratchpad, so we took our two kids along to one of the centre’s open days to check it out,’ says Lynette. ‘We immediately recognised the potential opportunity in the business and fell in love with the concept.’

creating confidence With almost 45 years of IT industry experience between them in both New Zealand and South Africa, Lynette and Jaques have seen first-hand how computer skills are becoming just as important as many of the other life tools learned at school. ‘Scratchpad uses lessons in coding, robotics and 3D printing to help students develop collaboration, problem-solving and creative thinking skills,’ Lynette explains. ‘Every child who comes to us is assessed and assigned an appropriate coding course then they choose their own pathways – we keep them engaged by discussing their options and always looking forward to what they can do next. It’s serious fun and we even have our first individual The Hefer family and their first Scratchpad centre at Botany

adult learner. It’s never too late to learn, and it only shows how important these tools are becoming that the adults want to come, too.’ With no teaching experience themselves, Lynette and Jaques have a great team of staff tutoring the kids and getting them to work collaboratively on larger projects. ‘It’s a unique environment and everyone loves it – kids and staff alike. Going into it, we thought the biggest personal challenge would be keeping the kids happy, but they’re so focused and involved in their work, the biggest problem is telling them the session is over. Learning these skills – learning to create things – helps children blossom into confident human beings. Getting to know them and their families, we really see a change in them.’

fast-growing business Lynette says, ‘I went into this to give something back and it’s been even more fulfilling than I imagined. Our Botany centre opened in September last year. On opening day, there was just us and our staff in the centre taking phone calls; now, 8 months later, we have 180 students and are still growing! ‘We were told it can often be three years before any new business sees a profit in New Zealand, but the way our Scratchpad franchise has taken off we’re already near that goal within a year of opening. We’ve worked closely with Vijesh to help build and share the Scratchpad vision, and plan to open a few more centres locally in the next five years. The franchise has great processes in place and our experience so far shows us that, with the right well-trained staff, we will be able to manage multiple sites. ‘We would love to see more franchisees on board around the country to help spread the word and take the work we’re doing to kids in other parts of New Zealand.’

I love what i do With features on TVNZ’s Seven Sharp and effective social media marketing, demand for Scratchpad is already growing around the country. ‘Now we need franchisees who can meet that demand and grow their own businesses,’ says Vijesh. ‘We’ve worked with top specialists Franchize Consultants to develop a profitable business model with good training and support programmes. The total investment required, including all equipment, fit-out, training and 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 don’t need an IT background but need to enjoy working with kids. They will do some teaching themselves and employ part-time staff. Business and marketing experience is helpful; leadership, drive, commitment and passion are a must. If you’re interested in developing the next generation of creators and have the qualities we’re looking for, give advertiser info me a call.’ The last word goes to Lynette. ‘I can’t tell people enough how much I love what I do,’ she says. ‘Of course, not having to answer to a boss is nice, too, but above all I love what Scratchpad does. It’s an amazing business to be a part of!’

franchise.co.nz – PUTTING PEOPLE IN BUSINESS

Scratchpad 65.indd 1

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

65 14/06/18 9:18 AM

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

franchise management

Last year, Michelle Bentham completed an MBA with a particular focus on applying corporate governance principles to franchising. We asked her to share her findings. Michelle, what made you choose franchising as your topic?

We assist you to achieve your commercial objectives with practical and cost effective legal advice. Our team has many years’ experience in all aspects of franchising and includes a former Chairman of the Franchise Association of New Zealand Inc.

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66 EDIT Governance 66.indd 1

I’ve been in the franchise sector in New Zealand for over 25 years with my experience being predominantly in food franchising and telecommunications markets. Over the years I have held an array of positions including employee, multi-unit owner and consultant, primarily focused on designing and implementing business processes. I worked with McDonald’s and was a multi-unit franchisee with Subway for eight years. I currently own one restaurant and am also involved with Franchize Consultants, both consulting and running training courses. As a result, I’ve seen franchising from all sorts of differing perspectives and identified influences and constraints within franchise systems at both franchisee and franchisor levels, which can lead to barriers to growth and sustainability. The aim of my research was to understand how a franchise system’s structure can influence performance while minimising conflict. It was titled: Exploring opportunities for corporate governance within New Zealand franchises. What are the issues? The 2017 figures suggest that the franchise sector in New Zealand contributes $27.6 billion annually to the economy and employs over 100,000 people. While franchise agreements and relationships are governed by normal commercial law, New Zealand has no specific franchising legislation: instead, the sector has adopted self-regulatory principles. This research was undertaken initially to understand if some form of governance would provide parties in franchise networks with confidence that decisions are robustly examined and endorsed, resulting in better developed and more compliant systems. What is meant by governance? In companies, when ownership and control are separated, some form of corporate governance is required to protect investors and business performance. Governance should protect the company and its sustainability. Governance is complicated in a franchise, where franchisees are key stakeholders and have a financial investment in the company or its brand (as well as operational control of individual units) without having any direct board representation. This is further complicated as franchisees generally focus on their operational units rather than strategic direction. Most of what is commonly called franchise governance is really franchise management, and actually consists of relationship management. It is focused on compliance and operational management between franchisors and franchisees, as opposed to corporate governance which is strategic in orientation and ought to be focused on (mostly) the franchisor’s shareholders’ aspirations and sustainability (which won’t exclude franchise performance). Franchise New Zealand

Winter 2018

Year 27 Issue 02

14/06/18 12:04 PM

www.istockphoto.com/phototechno

getting on BOARD Why is governance needed? Governance boards and franchisees are commonly held at some distance from each other and a franchise agreement is not sufficient for ongoing alignment between franchisor and franchisee. The requirements and interests of the parties will inevitably change and separate over time and if the business objectives of the franchisor and franchisees are not as wellaligned as first intended, conflict will emerge. How can a corporate governance structure benefit franchises? It is important that franchisees have and continue to have faith that their franchisors will take the franchisees’ own needs into account in the management and development of the overall business. By doing so, the whole organisation becomes stronger. When considering the best governance structure, focus should be directed at business performance, weighing up the conflicting expectations of the stakeholders and the outcomes these realise, rather than a prescriptive process. A board can provide that governance, oversight and strategic direction. Although franchises without boards who were interviewed were sceptical towards the benefits of this type of governance, franchisor companies with boards say they have experienced improved franchisee satisfaction, growth and compliance. Should boards include independent directors? Franchises with corporate governance practices said that enhancing the formality of franchisor boards, particularly with independent directors, appears to be prudent and highly valued by franchisees and other respondents. Overseas, it is not uncommon for franchisor boards to include an independent director from another franchise company. One such example is Catherine Monson, who is speaking at the National Franchise Conference in Taupo in August (see page 30). The role of independent directors can also enhance oversight and strategic direction by ensuring that not just shareholders but all stakeholders are protected – franchisors and franchisees, and the investors in each, not to mention suppliers and staff. In the opinion of one participant in the research, ‘Having independent directors enhances critical thinking, which in turn forces the shareholder directors to focus on the business as directors rather than on individual factional needs.’

One model suggests the FAC should have an elected representative on the franchisor’s board, but if a role is more than advisory then the representative might have all the legal responsibilities of a director, which could create problems. Should franchisors engage with each other more? The franchise sector in New Zealand is traditionally inclusive, with franchisors in many sectors meeting to share information and experiences through Franchise Association (FANZ) and other events. Franchisee and supplier respondents to the research can see the benefit of governance boards and their franchisors engaging with others in the franchise sector on a formal (external directors) or informal basis, but respondents from mature (10 years or more) franchise systems are not currently doing this in a structured way. While some franchisees were slightly sceptical about the perceived danger of having the ‘secrets’ of their franchise exposed, most saw the advantage of sharing and benefiting from the discussion of franchise-related issues. How did you conduct your research? I interviewed 19 stakeholders across 5 very different New Zealanddeveloped franchise systems and was humbled by and appreciative of the openness, insightfulness and time of those in the franchise community who assisted me. It emerged that this issue was far more complex than anticipated. What became obvious was that when there is a separation of legal entities linked by a complex agreement, conflict is inevitable and the opportunity emerges for governance to resolve these tensions. It also highlighted that a contractual agreement alone is not sufficient for alignment between the franchisor and franchisee. The point where ownership and control diverge in a franchise is where the need for governance emerges. This culminated in the deduction that entire franchise systems could be enhanced by the adoption of governance best practices by franchisors. What’s next?

What about Franchise Advisory Councils?

I hope that the knowledge gained from this will be of value to the various stakeholders in the franchising community. Personally, I am still of the opinion that legislative regulation of the franchise sector is not necessary; however, I now believe that formal corporate governance is a vital mechanism to protect all stakeholders’ interests.

Many franchises have some form of Franchise Advisory Council (FAC). The research found that the development of a properly-constituted FAC with a direct link to the board in an advisory capacity is desirable and can help to reduce the disconnect between franchisees and the franchisor board of governance.

The unique dynamics of the franchising sector, coupled with the entrepreneurial members, provide an excellent platform for having conversations and working collaboratively to achieve the potential that franchising has to become an even more important economic driver for New Zealand.

franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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35 1300+

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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

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Baby On The Move Bakers Delight

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

17 17

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16 16

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

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Bin Inn Retail Group Co-operative

Retail

$110,000

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

36 36

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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

$100,000$200,000

Life is all about opportunities. Breakers surfing-themed family restaurants have grown over the last 20 years to become one of the most renowned, successful and innovative hospitality operations and have developed into an iconic leisure and lifestyle consumer brand network.

10 10

Jo Bradford M 022 043 5163 E jo@breakers.kiwi W breakers.kiwi

Brucies Lawnmowing & Garden Care

Home Services

$49,000

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

12 12

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.

6 6

P 0-9-390 8979

Body Audit NZ

Westpac Directory of Franchising and Advertiser Index Franchise New Zealand Winter 2018 Year 27 Issue 02

tory of Franchising 68 franchise and business opportunities

77 specialist advisors

78 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

FANZ

description

number in NZ, globally

industry

investment from

company

page number

franchise and business opportunities B-C get more information

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.

New New

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

Food & Beverage

$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

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

Business Buddy

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

Caci

Health & Beauty

$300,000

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.

50 50

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 retail premises.

36 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.

19 20

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

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.

19 19

Ilya Pyzhanov M 021 287 2220 E ilya@coffix.co.nz W coffix.co.nz

BurgerFuel

Cambridge Homes

Coffix

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

Colourplus

FANZ

description

number in NZ, globally

industry

investment from

company

page number

C-F franchise and business opportunities get more information

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

Columbus Coffee

Cookright Kitchen Services

CrestClean

Business & Commercial

$10,000

Full service franchise, all contracts provided. Guaranteed income paid twice monthly. 617 CrestClean prepares GST returns, accounts and tax returns. Full training programme provides 618 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.

23 23

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

28 28

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

Domino’s

56, Food & Beverage 57

$450,000

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

110 2200+

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

Dream Doors

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.

10 118

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

5 5

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

Driving Miss Daisy New Zealand Duo Photography

Eco Insulation

Ecomist

Home & Commercial $30,000

Electrify.nz

Retail

$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.

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

Jeths Lacson M 021 337 329 E admin@epiphanycafe.co.nz W epiphanycafe.co.nz

Epiphany Café

22, Food & Beverage 23

Essential Beauty

Health & Beauty

$197,000$350,000

Seeking franchisees to join the Essential Beauty team throughout NZ.

New 70

P 0061 8 8359 6622

Exceed Franchising

Home & Building

$60,000

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

23 5

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 Fastway Couriers

Fibrenew New Zealand

Fifo Capital

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

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/

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 70

Nigel Thomson P 0-9-302 0949 M 027 434 6262 E ask@fifocapital.co.nz W fifocapital.co.nz

Westpac Directory of Franchising and Advertiser Index Franchise New Zealand Winter 2018 Year 27 Issue 02

FANZ

description

number in NZ, globally

industry

investment from

company

page number

franchise and business opportunities F-J get more information

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.

12 12

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

Footloose Shoes Freedom Companion Driving Services

Fritz’s Wieners

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

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

Green Acres Franchise Group

Home Services

$24,000

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

550 550

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

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.

73 73

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

Hire-A-Hubby

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 35

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.

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

HomeTech Solatube

Home & Building

$25,000

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

19 19

P 0800 466 383

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.

3 200+

P 0-3-322 5634

Food & Beverage

$320,000$450,000

Release your food flair with the reassurance of a world-class Jamaica Blue franchise network behind you. Systems, ambience, support and innovation will set you apart from the crowd. Exciting opportunities nationwide with a brand you will be proud to call your own.

10 174

Maree Keane M 027 484 7301 E maree@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 providing full operational sales administration support for franchisees. There has only been one name to turn to for quality and value in the commercial cleaning services - Jani-King, the king of clean.

360 13K+

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

Jamaica Blue

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

FANZ

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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+

Mike Connell P 0-9-557 3057 E mike@number8rg.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

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

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.

21 400

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

Jim’s Dog Wash

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

Home Services

$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

Business & Commercial

$75,000

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

35 185

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

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

Jim’s Cleaning

Jim’s Test & Tag / Jim’s Fire Safety

Jim’s Trees & Stump Removal 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

Be your own boss and get all the support you need. You don’t have to be a hairdresser to own 24 a Just Cuts, but you do need a passion for people and the ability to follow a proven system that 205 has worked for over 27 years.

Luke Manning P 0800 100 114 E bdm@justcuts.com W justcuts.co.nz

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 danielgerrard@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 danielgerrard@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

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

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

Majestic Tea Bar Espresso & Chocolate

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

$900,000

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

Kelly Sports

Westpac Directory of Franchising and Advertiser Index Franchise New Zealand Winter 2018 Year 27 Issue 02

Mexicali Fresh

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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

Milestone Homes

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

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

Food & Beverage

$330,000

Muffin Break has been a household name since 1994. Contemporary and relevant in 2018, still a firm favourite. The training and support you can expect from Muffin Break is second to none. Systems are comprehensive, analytics thorough. Opportunities available nationwide. We are more than just muffins.

39 299

Maree Keane M 027 484 7301 E maree@foodco.co.nz W muffinbreak.co.nz

Muffin Break

Navigation Homes

Home & Building

$100,000 $350,000

Profitable house-building franchise. Proven systems, support and the best national supply prices.

12 12

P 0-9-298 5972

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

NumberWorks’n Words

NZ Floor Sanding Co NZ House Surveys

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

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

Pack & Send New Zealand

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 a retail store. This is an amazing opportunity for a business person looking for a new challenge.

3 3

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

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

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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.

Para Rubber

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

Business & Commercial

$30,000

General commercial cleaning plus specialised franchises: car park scrubbing, carpet cleaning, decontamination, office equipment sanitising, pest control, window cleaning. Established in 1979, Paramount Services has 160+ franchisees servicing 2,000 clients including 320 bank branches, retailers, shopping centres, ports, cinemas, rest-homes, student hostels and schools.

160+ 160+

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

Paramount Services

120 120

Andy Kean P 0-9-261 0705 E andy.kean@paperplusgroup.co.nz W paperplus.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 and repair franchise which specialises in vehicle servicing, brakes, exhausts, suspension, WOF checks and general auto repair.

45 45

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

Home & Building

$215,000$260,000

Plumb’In are a specialist bathroom-ware retail franchise with recognised branded and exclusive products, providing high quality at affordable prices. Offering great benefits and services to maximise your business opportunity including training programmes, business manuals, in-house marketing and point of sale and reporting systems.

4 4

Ting Hui P 0-9-448 1095 E franchising@plumbin.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

Business & Commercial

$78,500

Portermark is Australia’s premier beer line cleaning company and is now seeking franchisees for their expansion into New Zealand with a high-return franchise model that offers significant income potential working from just 15-20 hours per week.

New 17

Kev Cochrane P 00614 1289 2677 E kev@portermark.com W portermark.com

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

Platinum Homes

Plumb’In Bathrooms

Portermark

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

Rack n Roll Ribs

Food & Beverage

$250,000

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

2 2

P 0-9-555 1492

Rad Car Hire

Auto Services

$250,000

New Zealand’s longest standing, locally owned vehicle rental company. Operating since 1987.

21 24

P 0-7-574 1490

Rainaway Spouting on the Spot

Home & Building

$45,000

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

RE/MAX New Zealand currently have franchise opportunities available. You’ll start strong with the backing of the world’s most productive real estate brand in more than 100 countries. You’ll have all the tools you need provided, and you’ll be the priority. Contact us today.

25 7000+

Corinna Mansell P 0-9-309 8478 M 0274 995 467 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

Pukeko Rental Managers

Westpac Directory of Franchising and Advertiser Index Franchise New Zealand Winter 2018 Year 27 Issue 02

FANZ

description

number in NZ, globally

industry

investment from

company

page number

franchise and business opportunities R-S get more information

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

Rentronics Limited

Home Services

$75,000

Rentronics is an experienced franchisor providing a franchise system throughout New Zealand under the Rentronics trade mark. Franchisees rent or rent to own a range of home appliances, furniture and electronics to customers who have made product selections from the Rentronics website.

9 9

Aman Jain M 0061 406 556135 E franchise.enquiry@rentronics.co.nz W rentronics.co.nz

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

Innovative, home building company designing premium mid-end homes

7 7

P 0-9-846 5777

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 $450,000

Shingle Inn Café is a world-class café franchise now available in New Zealand.

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

Food & Beverage

$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

Signature Homes

Home & Building

$150,000

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

11 11

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.

170 170

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

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.

15 15

Chris Smith M 021 733 981 E chrismsmith@xtra.co.nz W smithssportsshoes.co.nz

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

Rodney Wayne

Scratchpad

Sierra Boutique Café

sKids

Slopemowing.com

Small Business Accounting

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

FANZ

description

number in NZ, globally

industry

investment from

company

page number

S-U franchise and business opportunities get more information

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

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

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 25 become symbols of coffee perfection. We’re seeking people nationwide who love the thought 25 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.

63 400

Brad Jacobs P 0-9-304 0008 M 0275 26 3333 E brad@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

$69,750

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.

12 12

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

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

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.

Stihl Shop

Streetwise Coffee

The Coffee Club

The Wheel Magician

Touch Up Guys

Graeme McPheat P 0-9-391 1339 M 021 736 733 E graeme@u-sell.co.nz W u-sell.co.nz

Westpac Directory of Franchising and Advertiser Index Franchise New Zealand Winter 2018 Year 27 Issue 02

description

FANZ

industry

number in NZ, globally

company

investment from

page number

franchise and business opportunities U-Z get more information

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 Queenstown and Dunedin. Versatile Homes and Buildings provides you with all the benefits of owning your own business, with the full 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 professionals.

15 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

Wide Span Sheds

Home & Building

$95,000

Custom design, supply and construction of pre-engineered buildings. Limited opportunities in the North Island.

3 450+

P 0-9-889 2044

Window Cleaning Plus

Home Services

$14,950

Built on more than 60 years of company history and perfected over the past 10 years.

New New

P 0800 000 309

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

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

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

V.I.P. Home Services

Zambrero

Food & Beverage

$300,000

Zambrero NZ launched in 2014 and has grown to 13 restaurants, with more to come in 2018. If you join the Zambrero family, you will be supported by a team with extensive experience in franchising, QSR operations, supply chain, finance, marketing, construction/fit-outs, commercial leasing and more.

13 189

Joshua Flack P 0-4-213 9594 E j.flack@zambrero.com W zambrero.com

Zexx NZ

Food & Beverage

$5,000 $25,000

Zexx NZ Ltd was established in 2006 and is 100% New Zealand owned. We produce a range of top quality frozen fruit juice beverages, smoothies and cocktails throughout NZ, Pacific Islands, Australia and Hong Kong. Due to continued growth, we can now offer new territories nationwide.

12 16

Derek Sampson P 0800 556 022 M 021 724 290 E derek@zexxnz.co.nz W zexxnz.co.nz

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

Zones Landscaping Specialists

company

get more information

industry

number globally

regional and national master licence opportunities - find more at www.franchise.co.nz description

investment required

Epiphany Café See page 22, 23

Jeths Lacson M 021 337 329 E admin@epiphanycafe.co.nz W epiphanycafe.co.nz

Food & Beverage

Looking for individuals, entrepreneurs or companies to take up master franchises and establish bakery and warehouse facilities in Lower North and South Islands. Candidates must be well-capitalised, experienced in food sector with strong business management skills, focussed on growth and have integrity in dealing with staff, subfranchisees, the franchisor and suppliers.

NZ$800,0001m

Gloria Jean’s Coffees

Tony Ward P 0061 7 5591 3242 M 0061 418 720 907 E rfginternational@rfg.com.au W rfgbrands.com/contact-us/

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.

Hog’s Breath Café

Geoff Hargreaves P 0061 4 34 111 985 E geoffhargreaves@hbca.com.au W hogsbreath.co.nz

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.

Hudsons Coffee See page 28

Tim Ryan P 0061 3 8631 7700 E tim.r@emirateslr.com.au W hudsonscoffee.com.au

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.

NZ$300,000

Portermark See page 38

Jeff Rankin M 0061 449 890 300 E jeff@portermark.com W portermark.com

Business & Commercial

Portermark is seeking master licensees. You must possess demonstrated business development and people management skills. A proven track record of success in hospitality or similar industry is a must. You will be required to meet a franchise development schedule and possess the capital to finance the acquisition of the master rights, along with back-up working capital to develop and expand the territory.

AU$ 275,000325,000

V.I.P. Home Services See page 15

Estelle Logan Home Services P 0800 847 496 E franchisemag@viphomeservices.nz W viphomeservices.co.nz

Regional master franchisees. Lawnmowing/gardening and home cleaning. Your desire to work with people and a commitment to quality and customer satisfaction will help you realise the potential of the business. A proven record of people management and sales experience together with sound work ethics honesty and integrity required. Suitable for couples or individuals.

1200

NZ$50,000200,000+

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

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ACCOUNTANTS 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.

National

Paul Manning P 0-7-571 6280 E paul.manning@bdo.co.nz W bdo.nz

Blackler Smith & Co

Blackler Smith & Co are relationship-based chartered accountants. For years, Ben Blackler has assisted franchisors and franchisees with advice, business purchases and all tax services. Ben can help you buy a business, set it up correctly and run it effectively. Award-winner – Professional Services.

Greater Wellington

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 to begin business and ongoing support and financial services needed to succeed. We offer accounting, computer software, taxation, administration and business planning services.

National

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 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.

National

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 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.

National

Paul Kane P 0-9-308 5270 E paul.kane@nz.gt.com W grantthornton.co.nz

Hayes Knight

Hayes Knight is an innovative chartered accountancy practice based in Albany and Newmarket that works beyond the numbers National to keep our clients’ businesses future-fit. Our primary role is to improve your life by helping you grow your wealth and protect your assets.

Franchise Accountants

Inspired Accountants

79, 82, 83

Scott Travis P 0-9-448 3232 M 021 414 569 E scott.travis@hayesknight.co.nz W hayesknight.co.nz

We are chartered accountants who specialise in franchising. Having a look under the bonnet (due diligence) is key when buying a business. We do this and set up robust reporting systems so you know how the business is performing. Inspired Accountants – Inspiring You.

National

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

Small Business Accounting

FINANCE PROVIDERS ANZ

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

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

Heartland Bank

Unsecured business loans up to $75,000. Partially secured loans up to $250,000. A great option for clients needing unsecured business finance. The online application only takes a few minutes and a decision within seconds. Heartland Bank Limited’s lending criteria, fees and charges apply.

National

Nicole du Plessis P 0800 809 191 E info@openforbusiness.co.nz W openforbusiness.co.nz

Silver Chef

National Silver Chef is the only dedicated hospitality equipment funder in New Zealand and we have been providing flexible equipment 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

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

Advising franchisors / franchisees on their rights and obligations, preparing and reviewing franchise & licence agreements, structuring and intellectual property protection, drafting and review of all relevant documentation.

National

Jullion Nelson Parker P 0-9-920 9272 M 021 0811 1608 E jullion.nelsonparker@ah.co.nz W anthonyharper.co.nz

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

Botting Legal

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

Westpac New Zealand Ltd

20, 21, 84

LAWYERS Anthony Harper

ASCO Legal

Westpac Directory of Franchising and Advertiser Index Franchise New Zealand Winter 2018 Year 27 Issue 02

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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

Enterprising full service law firm with offices nationwide. We have expertise in specialist franchising, distribution and licensing in the retail, intellectual property, network growth and international expansion sectors. Hamish Walker, Wellington and Katrina Hammon, Auckland.

National

Katrina Hammon/Hamish Walker P 0-9-374 7147 P 0-4-499 7809 W duncancotterill.com

Gaze Burt

Lawyers providing full legal services for franchisors and franchisees including advice and documents relating to franchise development, 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.

National

Michael Bright P 0-9-414 9800 E michael.bright@gazeburt.co.nz W gazeburt.co.nz

Gibson Sheat Lawyers

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

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

Harris Tate

Jackson Russell Lawyers

National Your business needs specialist franchising advice and an experienced legal team that covers all areas of business law. 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

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.

National & Worldwide

Rory MacDonald/Tim Lewis P 0-9-307 3324 E info@mllaw.co.nz W mllaw.co.nz

Christchurch-based franchise experts advising clients locally and nationwide. Specialist advice for franchisors and licensors wishing to set-up and operate, and for franchisees regarding all aspects of their franchise. Full range of associated commercially-focused and cost-effective legal services provided.

Canterbury & National

Kent Yeoman P 0-3-343 8453 M 021 517 601 E kent@mmlaw.co.nz W mortlock-mccormack.co.nz

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

MacDonald Lewis Law

Mortlock McCormack Law Quantum Law

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 0-9-306 6874 E pml@shg.co.nz W stacehammond.co.nz

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

Stewart Germann Law Office, Lawyers and Notary Public

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 www.franchiseaccountants.co.nz

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

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specialist advisors

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

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CONSULTANTS AND 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

Recruitment

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

Instantly boost your digital engagement with seamlessly branded and tracked business email, invoices or statements, pitch-perfect e-messaging campaigns and the latest in paperless forms technology.

New Zealand & Worldwide

Chris Hogg P 0-9-377 8885 M 021 345 690 E chris.hogg@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

Eftco Ltd

Franchise Accountants

79, 82, 83

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

30, 31

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

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

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

Franchise Media Training

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.

National

Pete Burdon P 0-3-420 0300 M 029 200 8555 E office@franchisemediatraining.com W franchisemediatraining.com

Franchise Relationships Institute

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

Jewli Turier P 0061 457 846 675 E jewli@franchiserelationships.com W franchiserelationships.com

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

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.

Adam Mansour P 0800 4 633 846 (+61 4 2117 3325) E meetings@millenniumhotels.com W meetingsnz.co.nz

Find more info franchise.co.nz

Franchize Consultants (NZ)

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.

Greater Auckland Area

? ?

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

Why learn from your mistakes when you can learn from our nationwide franchise banking specialists? 80

Westpac Directory of Franchising and Advertiser Index Franchise New Zealand Winter 2018 Year 27 Issue 02

harristate.co.nz

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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 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.

National

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.

National

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. We realise that success isn’t achieved alone, whether you’re a franchisee-to-be or a seasoned franchisor we’re here to help with franchise recruitment and franchise buyer advocacy, franchise system growth, and human resources specialist support.

National & Worldwide

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 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.

National

Nick Stevens/Laurel McCulloch P 0-9-579 9226 E link@linkbusiness.co.nz W linkbusiness.co.nz

Microsoft 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

MYOB

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.

National

Nick Fletcher P 0800 39 66 38 M 021 940 921 E nick.fletcher@myob.com W myob.co.nz/franchise

NAI Harcourts

Real Estate

Business brokerage and real estate company which is part of which is part of the wider Harcourts organisation. For franchised sales or leasing opportunities contact Jayson Hayde.

National

Jayson Hayde P 0-9-489 2104 M 027 443 9475 E jayson.hayde@naiharcourts.co.nz W www.northshore.naiharcourts.co.nz

Commercial Property Consultants

Industrial, office and retail space: Let us negotiate for you. It’s possibly the best business move you’ll 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

Mystery Shop, Auditing

Mystery shopping solutions, results orientated analysis, customer retention strategies. Identify nonconformance, what customers think, where to improve. Discreet approach, effective communication. Audit for legal compliance and consistency. Staff training, business process improvement. Customised real-time reporting identify strengths and weakness then leverage insights for opportunities.

National

Michelle Field P 0-9-4810156 M 021 032 9163 E mfield@shoppersanon.co.nz W shoppersanon.co.nz

Commercial Fit-outs

Silk Design and Build specialise in complete commercial fit-out solutions. From site feasibility to concept 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.

National

Anand Doreswamy P 0-9-262 0527 M 021 520 038 E anand@silkimpex.co.nz W silkdesignandbuild.co.nz

Retail Premises

Leasing now. Looking for Auckland CBD premises for your new franchise? Seeking gym, beauty, doctors, gift shop, dry-cleaner, stationers, restaurants, fast food, travel agent, optometrist, dentist and more. Don’t miss this opportunity to establish your presence amongst 11,000 customers within a three minute walk.

Auckland CBD

Julie Warbrick M 022 639 3028 E julie@sugartree.co.nz W sugartreelane.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

Conferences

Hotel accommodation with fully integrated conference centre suitable for small meetings through to international conventions. Full food, beverage and leisure facilities complete the offering. “World famous in New Zealand”, Waipuna Hotel and Conference Centre is an icon in the mid-range meetings and leisure market.

Greater Auckland Area

Shelley Trutsch P 0-9-526 3008 M 0274 992 412 E shelleyt@waipunahotel.co.nz W waipunahotel.co.nz

Inspired Learning Systems

Intuto

LINK Business Brokers

Parallel Directions

Shoppers Anon

Silk Design & Build

Sugartree Lane

Waipuna Hotel & Conference Centre

The award that spells confidence and trust

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 franchise buyers and franchisors Next print/digital issue published 14 SEPTEMBER 2018 Contact us now to be included

• 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 the right franchise by starting with the right people.

Find more info franchise.co.nz

In2HR

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FANZ

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specialist advisors

NZ’s dedicated franchise media info@franchise.co.nz p 0-9-424 8236

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

14/06/18 11:27 AM

buying a franchise

8 COMMON ...and how to MISTAKES avoid them BUYERS MAKE... Why learn from your own mistakes when you can learn from those of others? Philip Morrison of Franchise Accountants shares some lessons

5. Biting off more than you can chew

6. Too much debt

aving worked with over 1,000 different franchisees over the years, we see people making the same mistakes over and over again. These mistakes are often costly in time, incur financial pain and result in paying more tax. In most cases they can be avoided, so we thought we would share them here. 1. Rushed decision-making ‘Buyer’s remorse – regretting your decision when it’s too late – is often the result of buying a business based on feelings rather than facts. This typically stems from insufficient research, so do your homework thoroughly. Buying a franchise is like buying a house – it’s a significant financial decision; they’re not all the same and the contract is legally binding, so don’t be rushed. 2. Penny wise, pound foolish Not seeking independent financial and legal advice when buying a franchise is a common issue, especially with lower-priced franchises. The apparent benefit gained by saving money is soon outweighed by the cost of making avoidable mistakes. One piece of advice can save a franchise buyer thousands of dollars, so seek out advisors with relevant franchise knowledge and experience with the franchise brand you are seeking to purchase. 3. Ignoring advice Having got good advice, listen to it. Looking back, we all have examples of decisions we have made which, with the benefit of hindsight, we realise were wrong. The role of the advisor is to give you the information you need to make the right decision at the right time. Accept that, sometimes, the right advice may not be the advice you want to hear. 4. Not doing the sums We find that financial literacy around buying a business is often low, particularly for first-time buyers. If you don’t find out the numbers that really matter before you sign, how do you know if the business will work for you? At Franchise Accountants, we work around a robust seven-step financial process when evaluating a franchise which informs buyers about what they need to consider before investing. Franchise specialists will also have access to benchmarking information which helps evaluate any particular business.

Being under-funded – having insufficient capital either to fund the initial purchase of a franchise business or run it on an ongoing basis – is a common mistake. In fact, research tells us it’s the number one reason for business failure. Sometimes, if things go wrong, the franchisor gets the blame when in fact the franchise model is performing properly. It may be that the franchisee bit off more than they could chew. Over-gearing a business with too much debt is another common mistake, often fuelled by over-optimistic sales projections. Getting a loan to finance a business is normal, but note that while a bank may lend you money, the risk is yours. If you load the business with more debt than it can afford to service, it may fall over. Dynamics vary: one franchise business may support 100 percent debt financing while another requires just 20 percent. Take advice to help you get the right balance. 7. Tax matters Franchisees are all too often unaware of their tax obligations and use the money they’ll need to pay their taxes to fund their business instead. When the tax bills come in, they get a nasty shock, which is why failing to pay taxes is the second most common reason that business owners fail. This can relate to a number of tax types, including GST, NRWT, FBT, PAYE and Provisional taxes. Having the right knowledge, skills, software and systems in place to comply with your tax obligations right from the start is critical to any business. Ignorance is not an excuse as far as the Inland Revenue is concerned. A new provisional tax method called AIM (accounting income method) can help business owners to pay their tax as they go and not get behind, so ask your accountant if it is right for you. 8. Not following the system or business plan A franchise is often built around a proven business model, so one of the critical success factors for franchisees is following the processes, procedures and know-how that others have tried and tested for you. Thinking you know better, or seeking short-cuts, frequently leads to trouble – and may even lose you the franchise. So listen to the counsel of your franchisor and leverage their experience and that of your financial advisors to create a business plan that will enable you to get the most out of the opportunity and suit your own goals.

conclusion By avoiding these common mistakes, you’ll greatly increase your likelihood of building a successful and rewarding franchise business. Working through a robust process of evaluation with franchiseexperienced advisors can assist in preserving your capital, assessing risk versus reward and minimising borrowings and tax.

The award-winning team at Franchise Accountants

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

Winter 2018

Year 27 Issue 02

14/06/18 9:19 AM

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

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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 Westpacâ&#x20AC;&#x2122;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.

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4/03/16 10:48 AM