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Volume 23 Issue 01 Autumn 2014 $8.95

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the changing face of food new trends in food franchising

Over 250 food & other franchises

• How to Buy with Confidence • Funding a Franchise • Borne to the USA • Feeding Your Business PROUDLY SUPPORTED BY

Westpac Directory of Franchising


Health Care Offices Manufacturing Education Retail


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Having had our own website for Franchise New Zealand since 1997, I’m a big fan of the internet. While our print issue is still as popular as ever, we’ve more than doubled our reader numbers via our website, digital mag, email newsletter and Facebook page. We believe they all have their place so, no matter how you prefer to get your information, we’ve got it covered. It was Facebook, though, that recently had me thinking back to my days in the food industry. Someone posted a photo of the mascot of the burger franchise I used to work for, and it unleashed a flood of reminiscences from customers and staff of the chain. The whole episode reminded me of just how much fun the food business can be – a perception reinforced when I attended the Columbus Coffee awards dinner just a couple of days ago. Here was a group of hardworking people out to celebrate their success, and the energy and enthusiasm were almost tangible. But success in the food industry doesn’t come easily, even if you buy a franchise. As our cover story (page 6) shows, top franchises are constantly having to re-invent themselves and their menus in order to keep up with changing customer tastes. If you’re thinking of buying a food franchise, you need to be sure that the business you’re getting into can really deliver the results you want – no matter how much fun it is.

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Simon Lord Publisher Franchise New Zealand magazine & website By New Zealanders – For New Zealanders – About New Zealanders Proudly supported by

Franchise New Zealand is an independent magazine and website. The publishers are members of the Franchise Association of New Zealand.

Published by: Franchise NZ Marketing Limited PO Box 300 749, Albany 0752 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 CDQ Your Creative Director P 0508 CDQ CDQ info@CDQ.co.nz Principal: Paul Donovan


⇒ Buying With Confidence

McDonald’s are selling pies, school kids are buying sushi and you can eat like a caveman at your local café. What’s happening in food franchising?

Simple Guide To ⇒ AFeeding Your Business

David Campbell outlines some key ways to help you maximise return when running a food business

Food or fashion? Restoration or retail? Even if you know what industry you fancy, which franchise should you choose?

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28

54

⇒ Welcome to Franchise New Zealand – the buy your own business magazine

Volume 23 Issue 01 Autumn 2014

6 The Changing Face of Food McDonald’s are selling pies, school kids are buying sushi, and you can eat like a caveman at your local café. What’s happening in food franchising?

11 Making A Crust With The New Face In Town Pie Face is putting smiles on the faces of customers, franchisees – and pies

13 A Taste Of The Big Apple Wholly Bagels wants people across the country in a New York state of mind

15 Sales Measured In Smiles Per Hour The Cheesecake Shop has been making customers happy since 1991

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

19 Healthy Profits From New Water Business HRV Water is a new opportunity from one of NZ’s most trusted brands

21 Top People, Top Brand, Top Performers Corporate Cabs is looking for next-generation owner/drivers

22 Funding A Food Business Daniel Cloete of Westpac looks at the options and advantages for new franchisees

25 Good Clean Money Loven franchisees can make ‘a damn good living’ from eco-friendly oven service

26 Huge Demand For Renovation Specialists Refresh Renovations is half-way to filling its specialist national network

28 Buying With Confidence Food or fashion? Restoration or retail? Glenice Riley helps you narrow down the options

33 Don’t Worry, Be Happy Quick reactions and a cheerful smile are what you need for Muzz Buzz

35 No Joking, Humour Sells Giggle TV provides lifestyle opportunity with recurring income streams

37 Can You Build A Better Life? Paramount franchisees from all walks of life enjoy financial security and success

38 Join The Movers & Shakers Shaky Isles is seeking multi-site operators for its fun café brand

39 Borne To The USA The news of BurgerFuel’s big new deal is inspiring other New Zealand franchisors

41 Fresh Start With Café On Wheels Cafe2U’s unique offer proves attractive to career changers

43 Job Satisfaction The Coffee Guy franchisee signs on for another five years of the good life

45 Would You Like A Latte With That? Trade corporate life for being your own boss with Robert Harris Coffee Roasters

47 Changing Careers To Change Your Life V.I.P. franchisees are making the most of their opportunities

48 Questions To Ask About Support What support will you get as a franchisee? Here’s how to find out

49 Growing Market For Sushi On The Go Mr Woo Sushi finds extra markets boost sales

51 Big Opportunity To Make Big Improvements HRV Ventilation offers a rare chance to join a well-known brand improving Kiwi homes

53 Café Franchise Keeps Getting Better Columbus Coffee franchisee stays ahead of the trends to maximise returns

54 Feeding Your Business David Campbell outlines some key ways to help you maximise returns when running a food business

DIRECTORY ⇒ ⇒ of franchising ⇒ Editor Simon Lord Publication Manager Sally Knight Production Manager Eve Brown Business Development Manager June Pitman Writers Crispin Caldicott Ross Lindsay

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

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

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

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

57 Show And Tell Pays Off High street locations generate a regular flow of new business for SBA

59 Selling A Product Of Legend Snap-on Tools’ multi-awarded franchisee tells his story

60 Top Tips For Franchising Book offers thought-provoking tips on franchise leadership

61 Retailers' Triple Whammy Three very different brands stand out in a changing market

62 The Fuel In The Tank Philip Morrison of Franchise Accountants explains what you need to get your business started and keep it going

65 Sweet As United Sweets combines retail and online to offer franchisees a unique opportunity

67 Blueprint For Success Palazzo Kitchens and Appliances now on Auckland’s doorstep

68 Holding On To What’s Yours Stewart Germann and Harshad Shiba review three legal cases

70 Westpac Directory Of Franchising Comprehensive details and investment levels for over 250 franchise and master franchise opportunities. Also includes advisors and index to advertisers

Franchise Opportunities National Master Licences Specialist Advisors

70 79 80

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 membership of the FANZ. Persons entering into franchise agreements are strongly advised to seek their own professional advice. The publisher does not 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.

Find more info at www.franchise.co.nz - Franchise New Zealand online

Cover model: Sarah Primrose Photo: David St George

⇒ The Changing Face of Food


Franchise Opportunity: H

the chan McDonald’s are selling pies, school kids are buying sushi, you can eat like a caveman at your local café and Kiwis hold world sales records for two global burger chains. What’s happening in food franchising?

‘People always need to eat – it’s why food never goes out of fashion.’ That’s a common view that has made food the most popular sector in franchising for over 60 years. But while food itself may not go out of fashion, consumer tastes, menu ranges, delivery options and costs and margins certainly change. That makes choosing a food franchise quite a challenge for new entrants. Here’s our guide to current trends.

Healthy vs Unhealthy: What Sells? You can hardly turn on the TV or surf the newssites today without being aware of concerns about the obesity epidemic in western countries, the prevalence of Type 2 diabetes in New Zealand and scary stories about what’s really in our food. Given that the blame is usually put on the big brands (the most newsworthy targets), it’s no surprise that, in many cases, those same brands are publicising their healthy eating credentials. McDonald’s has made much of the reduced sugar and salt content in its products, and launched an entire website to answer consumer questions – strategically spending part of its advertising budget to promote the fact. New brands are also emerging which specialise in what are perceived as ‘healthy’ food styles: wraps, salads, baked-not-fried products, Asian and Mediterranean cuisines, fruit juices, smoothies, and frozen yoghurts. There’s an increasing emphasis on low-carb, gluten-free and free range ingredients as people remember, ‘You are what you eat.’ Fair Trade accreditation has also become important to many. It’s worth noting that many of these trends gained ground at the same time as the price wars among the major players which followed the Global Financial Crisis (see below). As well as being a genuine response to changing tastes, the emphasis on food quality also helped food retailers to justify prices and preserve margins. Yet at the same time, many brands – in some cases, the same ones – have also been promoting the sort of products that raise the blood pressure of healthy eating campaigners to dangerous levels. KFC’s Double Down Burger – two slices of deep-dried crumbed chicken with bacon, cheese and sauce – is the most notorious example here. Despite reports

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Franchise New Zealand Volume 23 Issue 01 Autumn 2014


anging face of food saying it would take ‘an hour of intense exercise’ to burn off its 1939kj, it became a best-seller for KFC during its original promotion and was later added to the menu on a long-term basis. Pizza franchises offered stuffed crusts, McDonald’s was criticised for bringing back Georgie Pie and two chains, Wendy’s and Carl’s Jr, set world records for first-week sales at their stores in Christchurch and Henderson. So are consumers really changing to healthy eating, or are they reacting against being told what’s good for them?

every quarter but two between September 2011 and December 2013.

Expanding The Menu

‘Growing sales is a positive sign, but of course it’s not the whole picture,’ says Daniel Cloete, Westpac’s National Franchise Manager. ‘Food businesses are dependent not just on sales but on sustaining good margins (see page 54). Happily, these have also shown signs of improvement over the last year or so. For those franchises which have the right mix of customer appeal and business model, and which have taken the opportunity to adjust their offering to meet changing tastes, the future is looking positive.’

Peter Webster says that it’s not a question of one or the other. As General Manager (Operations) of Columbus Coffee, he’s in a good position to see changing trends at first hand because cafés have been major players in the eating-out revolution in recent years. ‘When Columbus opened its first café in Auckland 20 years ago, the focus was all on coffee – you might have biscotti with your latte but that was about it,’ he says. ‘But now cafés have become the places to go for everything from breakfast to full lunch and, often, on into the evening. Some are licensed and many – like Columbus – have chefs on-site preparing fresh food in every store. In some ways, cafés have evolved in New Zealand to fill the gap between fast food and full-service restaurants.’

Dean Madsen, Daniel’s colleague, explains that although high-end restaurants suffered immediately when the Global Financial Crisis hit, there was a ‘down-sizing’ of the eating-out experience which meant that many middle-of-the-road and fast food franchises continued to do well for a couple of years. ‘Then the competition stiffened and you started to see a shift to price-based promotions,’ he says. ‘McDonald’s introduced its Loose Change menu and Pizza Hut launched $4.99 pizza. These were aimed at gaining more customers, although at lower margins. What the big boys do affects everyone else in the industry so that had a major impact for six to nine months – long enough for many people to say, “That was a lousy year!”

Part of that evolution has required Columbus to address the demands for healthy eating options in its increasingly-educated target market, and it has chosen to do so head-on. Last August, after a year-long project, it launched a collaboration with Healthy Food Guide magazine (readership: 400,000!) which saw a range of low-fat, low-sodium items added to the menu of its 50-plus stores around the country. In addition, the Healthy Food Guide team also helped Columbus review its existing menu items, adjusting ingredients, cooking techniques and portion sizes to improve results across the board while retaining the all-important margins. ‘The result has been very popular with our customers who like knowing they can get something that will fit in with their nutritional guidelines at Columbus, whether that’s a caveman-style paleo breakfast or a glutenfree cake,’ says Peter. ‘But they don’t necessarily do it all the time: one day a customer will have a healthy wrap, the next day they’ll feel like eating a sausage roll. Whichever they choose, they’ll know it’s been freshly-prepared on the premises and will have been made from good ingredients. I think that’s what we’re seeing – a trend to healthy food without abandoning the old favourites. People enjoy having the choice.’

‘But over the last year the focus has moved away from the discount model and back on to new products and flavours, so margins have recovered and franchisees are looking forward to better times ahead. The lesson for everyone, though, is that when they buy into a business, they do need to ensure they have enough capital to get through a rainy day.’

The Columbus approach has been mirrored by many food businesses in the past few years, with the 2013 Consumer Foodservice in NZ report from the Euromonitor research service finding that: ‘Fresh and high-quality ingredients became important, along with menu choices which offered both low-priced simple meals along with more premium higher-priced options. Those operators which expanded their menus to offer a wider choice performed well in 2012, as did operators which offered healthy food options such as low-fat, low-carb and gluten-free products.’ The report also noted the addition of items such as wraps to many menus, including those of McDonald’s and Burger King.

The Market Is Growing Again In fact, food sales generally are looking up: the good news for food franchisees and franchisors is that the eating-out market is growing again. The recent retail sales data from Datamine, which is based on electronic card transaction figures from Westpac, shows that spend in the café/ restaurant/bars category in February 2014 was up 6.6 percent over the same month last year, and 6.3 percent over the same quarter. Figures from Statistics New Zealand likewise show more than 5 percent growth for Find more info at franchise.co.nz

New Tastes, New Delivery With the food sector bouncing back, then, what new flavours should potential franchisees be looking for to tempt the Kiwi taste buds? The most obvious new segment to emerge in recent years is Mexican, with brands such as Mexicali Fresh and The Original California Burrito Company establishing Tex-Mex style food chains in New Zealand for the first time. The Original California Burrito Company has folded, seemingly brought down by financial issues largely unconnected with its trading, but Mexicali Fresh is going from strength to strength. The brand has advanced dramatically from the early days in 2005 when, before the staff at its first store could be trained in making a burrito, they first had to learn what a burrito actually was – a cultural divide that the American founders of the chain had not expected. The Mexicali Fresh experience is in stark contrast to that of Restaurant Brands, which for many years looked at importing the Taco Bell system to operate alongside its KFC and Pizza Hut brands. With Mexicali Fresh and others offering a perhaps less bland experience, it may be that Taco Bell’s time has now passed – if it ever existed. While Restaurant Brands’ CEO Russel Creedy still hasn’t ruled out the possibility, he has recently talked about looking for Asian brands instead. Currently, few such brands have taken hold in the franchise space in New Zealand, despite our increasing Asian demographic. To some extent, the ease with which independents can operate in this market makes it hard for franchise brands to gain traction and offer a significant

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the changing face of food

advantage. This lack of barriers to entry is also one of the reasons given for The Mad Butcher’s withdrawal from developing Yögg, its frozen yoghurt franchise. Where Restaurant Brands has scored a huge win is in the (non-franchised) Carl’s Jr. brand, which has found a lucrative niche in what many might have regarded as one of the most over-crowded markets of all – burgers. Carl’s Jr. fits neatly into the space between the family burger outlets like McDonald’s and the gourmet chains such as BurgerFuel – a grown-up experience for bigger appetites. The company has been criticised for targeting lower socio-economic groups with its store location policy but there is no doubting its success. Carl’s Jr. and Mexicali Fresh have one thing in common – they both operate in what is called the ‘fast-casual’ segment. Fast-casual restaurants are a more upmarket version of traditional quick service restaurants like McDonald’s which combine a counter service model with a more premium product and environment. Following the GFC, they became one of the fastest-growing parts of the food sector in the US, enabling customers to retain the eating-out experience while spending less money. Meanwhile, there’s considerable interest growing in the casual dining/ family restaurants segment, too. Old favourite Valentines has been remodelled, even older favourite Cobb & Co is under new ownership, while local chain Breakers has been joined by Australian franchise Hog’s Breath Café in the bar/café sector. US chain TGI Friday’s is also reportedly looking for sites. The casual dining sector is to some extent approaching the same market aspired to by cafés such as Columbus, Robert Harris and The Coffee Club, but is coming from the opposite direction as both segments seek to widen their appeal. The takeaway area is also seeing the development of new items as operators stake claims to their niche. We’re seeing the growth of bagels (baked not fried – after that, how healthy they are depends on your choice of filling), smaller premium pizzas, and specialist outlets like Pie Face that offer a wide range of baked products. Existing operators are offering snack size fast foods at one end of the spectrum and family dinner packs at the other. All have coffee and other drinks as an important (high margin) part of their offering. Finally, it’s worth noting that Entrepreneur magazine in the US has ranked a company called Fresh Healthy Vending among the fastest-growing franchises in its 2014 Franchise 500. Their machines feature such items as fresh fruit, juices, yoghurts and smoothies.

The Challenge of Change While expanding the menu might attract the broadest possible range of customers – or attract existing customers to return more often – it increases the challenge for operators. ‘Change is always a tricky thing to manage in a franchise group,’ admits Peter Webster of Columbus. ‘Franchisees need to be convinced of the benefits before they will come on board, especially if there are financial implications such as new equipment. When we launched the new menu we put a strong case to them for the changes and 80 percent of them came on board pretty much straight away. Feedback from them was fantastic and it’s now wellaccepted across the group. ‘Of course, training the chefs in new recipes and different cooking techniques was interesting – chefs are generally individualists and they are always under pressure to produce things quickly. But part of what we were doing was returning to more traditional techniques such as sweating vegetables to get the best out of them and preserve flavour rather than

Franchise New Zealand Volume 23 Issue 01 Autumn 2014


adding salt, fats or sugars. We produced some training videos and now we’re going into every store ensuring consistent implementation on the core products and finding ways to get the best out of the local favourites. It’s worth noting that in the latest cafés which have opened with the new menu right from the start, the food sales have generally been fantastic.’

Smaller Footprints & On The Road As always in the food business, costs are critical with food, labour and rent all under constant scrutiny. Of these, it’s probably rental costs that are creating the greatest changes. Retail spaces are getting smaller, with operators trying to achieve more sales from less space – something that puts the pressure on on-site cooking. In the major cities, we are increasingly seeing ‘hole-in-the-wall’ type businesses which have minimal frontage and, often, minimal space behind. Kiosks and ‘pop-up’ buildings are also proving popular, with The Coffee Guy and Muzz Buzz pioneering drive-thru kiosks on busy commuter routes. Such options minimise capital outlay and rents and can be prefabricated and fitted-out in advance to minimise the time between establishment and earning. They can even be moved to new locations if required. For ultimate mobility, of course, nothing beats the type of van-based operations which have been popular since the early days of Mr Whippy. In recent years, these have expanded both in the types of food they serve and the areas they service. A Cafe2U van, for example, might be sitting beside a main road in the early morning, driving round an industrial estate for midmorning tea, servicing an office park at lunchtime, and at a jazz festival on Saturday night or a sports event on Sunday morning. As Adam Parore of Mr Woo Sushi suggests elsewhere in this issue, there’s another ready market in delivering to schools (where ‘healthy’ products such as sushi and wraps are likely to be encouraged over, say, pies) and even in the take-home market for evening meals. But when it comes to sales, there’s nothing to beat foot traffic going past the door and this is a market where the big landlords and mall operators have shown little inclination to reduce rents despite the challenges of recent years. ‘In fact, most leases have “ratchet” clauses which enable rents to go up but not down,’ warns Daniel Cloete. ‘This makes it all the more important that tenants do their homework properly and ensure that the franchise business model they select is truly able to cope with the pressures imposed by sales or seasonal fluctuations.’ (see page 22).

The Multi-Unit Challenge A US franchise commentator recently suggested that the days of the single-unit food franchisee – the owner/operator who works in his own store – were over. According to him, food industry franchisors were now only interested in large franchisees who would own multiple units, as they required less training and less support on an ongoing basis. At a time when many franchisors have found it difficult to recruit new franchisees because of financial and confidence issues, granting units only to multiple operators has a lot of appeal. It’s an approach that’s already being taken by Pack & Co, promoters of the Shaky Isles café brand, and is being promoted to some extent in Australia. Can we expect to see it grow here, too? ‘I think you need to look at what they mean by “multi-unit franchisees” in the US,’ suggests Westpac’s Dean Madsen. ‘They have some massive operators there who have literally thousands of units; the franchisees are corporations in themselves with whole extra layers of management. In New Zealand, Restaurant Brands is the only company that really operates the same way – our concept of multi-unit tends to be a lot smaller.

Find more info at franchise.co.nz

‘Here, McDonald’s encourages multiple ownership but I think their average would be three to four restaurants per franchisee. A few might have 5 restaurants and 250 staff, but at that scale being a franchisee is a totally different matter from being a single-unit operator. The multi-unit franchisee’s role is managing their managers, rather than managing the detail of the restaurants themselves. ‘From a franchisee’s point of view, owning multiple units might seem very attractive. After all, if you buy a franchise and it’s successful, why not invest in another? You have trained managers and staff and can enjoy some flexibility and economies of scale. But while that might work for two or three outlets, after that it all gets a lot more difficult. You need different skills and you need to put some sort of corporate structure in place. You need to be a CEO, not just a good operator. If you have those skills or can develop them then yes, multi-unit could be a great way to grow, but if you don’t then you’re just increasing the risks and storing up trouble and stress for yourself.’ Dean says that he can see why franchisors would be tempted to grant multiple units to good operators. ‘They already know and trust the system, they can get new outlets up to profitability faster and it takes away some of the risks for the franchisor. But I’d suggest it works a lot better in a highlydeveloped system like McDonald’s, where it’s a proven route, than it would in a lot of other franchises. Until a franchise has really strong, well-proven systems in place, it’s a real challenge to have multi-unit franchisees. That’s probably why we’ve really only seen multi-unit operators here in the big international brands like McDonald’s, Subway and Domino’s so far.’ Peter Webster also makes some pertinent points. ‘In the café industry, customers appreciate being greeted by the owner, and staff respond better if the owner is on site. From my days in the pub industry in the UK, I can tell you that independently-owned pubs probably traded 10-15 percent better than managed pubs. If you have 1500 pubs then a few percent here or there aren’t an issue because of the economies of scale you’re achieving elsewhere, but in a small franchise in a small country, it’s a very different matter.’ So will multi-unit franchising take off in New Zealand or not? ‘To some extent, yes,’ suggests Dean. ‘We have some very strong locally-developed franchise systems here now, and some of them will have franchisees with the management experience and the hunger to grow. But I don’t see multiunit franchisees taking over the food industry – as Peter says, New Zealand just isn’t large enough to make that happen.’

Finding A Healthy Business For anyone looking to buy a food franchise, then, there is plenty to think about. It’s not just what’s hot and what’s not? Fashions change, so which franchises have shown that they are responsive to change and have proved they can roll with the economic punches? Which are affordable right now, and which offer the best long-term prospects? And if you dream big, which franchises might allow you to grow beyond a single unit to managing your own little empire? In the following pages, you’ll find plenty of advice on how to find the right franchise, how to fund it and how to make it profitable. There are also profiles of many different types of food (and other) franchises. About the Author One thing is certain – whether the trend for healthy food keeps Simon Lord is Editor of Franchise New Zealand magazine & website growing or not, there are plenty of and has a background in franchise opportunities out there to create a food marketing. healthy business of your own.

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Franchise Opportunity: Food & Beverage

making a crust with the

NEW FACE IN TOWN Pie Face is putting smiles on the faces of customers, franchisees – and pies

Smiling faces all round: Pie Face sells pies, croissants, bagels, lamingtons and coffee just the way you like it

‘From a franchisee’s perspective, the appeal of this business is that it’s not just a gourmet pie outlet. We offer first class pies, but we also sell bagels, croissants, lamingtons, mini pies, sweet pies and pastries and a very strong coffee menu. That gives the franchise multiple revenue streams.’

‘We make pies with funny little faces on them.’ That’s how Pie Face’s website sums up the appeal of their product but, as you’d expect from a company that has almost 80 stores in Australia, 8 in New York and has won a whole swathe of awards, there’s more to their success than just good looks.

This profitable mix is promoted in a memorable and imaginative way: if you like your caffeine to deliver a sudden punch to the senses then the strong, hard blend Kick My Arse! might be your preferred start to the day. Others go for the mellower stimulation of the soft and sensuous sounding Open My Eyes! The coffees, too, come with faces to match the titles. ‘Needless to say, this kind of cool branding really resonates with customers,’ continues Julian.

Clever Model To Maximise Potential

Now Kiwis have the chance to find out for themselves. Pie Face has been brought to New Zealand by master franchisees Julian Field and Jared Palmer, who plan up to 60 stores here. The first, in Auckland’s Shortland Street, opened in August 2013 and was quickly followed by a second store in Queen Street. ‘These first company-owned outlets generated a stream of serious enquiries when people saw how busy they were and we now have two franchised outlets up and running in Quay Street and Albany as well,’ says Julian. Pie Face originated in Australia ten years ago where founders Wayne Homschek and Betty Fong created a concept that brought pies into the 21st century. Today the brand is going global, with ten stores in New York and agreements being signed in Indonesia, the UK and the Middle East as well as New Zealand.

Experienced Eyes Spot Profitable Mix The New Zealand master franchisees already have a wealth of franchising experience. ‘I opened the first Subway franchise in Queenstown in 1997 and went on to open 16 more throughout Southland and Otago,’ says Julian. ‘I came across Pie Face in Australia and really liked the concept, so I studied it closely with my partners and we rapidly concluded it would fit here very well. We are a pie culture here, just like Australia – in fact, the statistics show we eat even more pies per capita here – so that means a big market for Pie Face.

The branding of Pie Face may draw the crowds, but it’s what goes on behind the scenes that really makes it so attractive to franchise buyers. ‘The business model has cut out much of the labour required in an “ordinary” cafe/bakery,’ Julian explains. ‘We supply all the pies and foodstuffs from a central location and deliver frozen. This considerably reduces the size – and therefore rent – of an outlet. For example, our Queen Street store is only 28 sqm yet it works perfectly. This means that although Pie Face is ideally suited to locations with high foot traffic, franchisees won’t be paying a huge premium for the privilege.’ And another secret to the success of Pie Face involves the manufacturing process. ‘All our pies are manufactured at a central kitchen so we can ensure absolute quality, and we freeze them immediately they are encased in our very own, French-chef-inspired pastry. They’re then baked fresh in each store so the flavours are far better than you get in a reheated pie. This eliminates the need for a big back room and keeps labour costs right down as well.’ As Julian points out, the Pie Face brand also lends itself to 24-hour, sevenday operation in the right locations. ‘Many of the Australian stores operate that way and because the concept can be accommodated in minimum space, we see things like stations as ideal locations for outlets. You don’t need chefs or expensive staff on duty, so the potential for added returns is considerable.’

Turn-Key Operation Makes Opening Easy Pie Face is looking to open stores all over New Zealand over the next few years. ‘We are offering a guaranteed turn-key operation,’ says Julian. ‘Every store will be fitted out exactly as you need it prior to your getting into business, and you’ll receive full training. The costs will vary according to location, but as a general rule somewhere between $250,000 and $400,000 should put a smile on your face.

Off-site preparation means Pie Face stores can handle high foot traffic from a small footprint Find more info at franchise.co.nz - Search: Pie Face

Find more info at franchise.co.nz - Search: Pie Face

Pie Face 11.indd 1

‘Of course, you’ll also get access to all the product development and support that Pie Face provides to keep you smiling for many years to come. So if you want a new, exciting and above all profitable business, call me and we’ll get you going as soon as possible. All areas are open and, judging by the enquiries we’ve had in Auckland, we expect to roll out quickly.’

Advertiser Info Pie Face PO Box 605, Wanaka 9343 www.pieface.co.nz Contact

Julian Field P 0-3-443 8092 M 021 281 7536 jfield@pieface.co.nz

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21/03/14 4:54 pm


Franchise Opportunity: Food & Beverage

have you the appetite for

A TASTE OF THE BIG APPLE Wholly Bagels & Pizza wants people across the country in a New York state of mind

You can’t watch a movie set in New York without noticing the popularity of bagels – those glazed buns-with-a-hole that come with an endless variety of toppings. They’re part of the way of life in the Big Apple, and they’ve been a big hit in Wellington since 1998, too. Now Wholly Bagels & Pizza is set to expand throughout the country, says franchisor Sam Rama. ‘We have the right products, the right image and the right systems in place to offer a unique opportunity to franchisees nationwide.’

really great coffee. ‘The mix means Wholly Bagels & Pizza has something to offer for every part of the day, seven days a week. We offer breakfast, lunch and dinner, late nights and in-between snacks. In addition to takeaway sales and function catering we also offer home delivery, so each store can really maximise its sales and profitability.’

Bagels are becoming a popular choice for casual eating in New Zealand – and Wholly Bagels & Pizza is leading the way

Founder Charlie Daily created Wholly Bagels after finding that, for all the delights that Queenstown offers, he couldn’t get his favourite food in Queenstown. ‘As an American, Charlie was appalled,’ laughs Sam, ‘so, having fallen in love with New Zealand, he set out on a mission to bring us bagels. He went to the States determined to learn everything about bagel production before returning to open the first Wholly Bagels store in Wellington.’ That store was a huge success and five more followed rapidly, all in the Wellington area. So why has it taken so long to take bagels – now accompanied by New York style pizza – to the rest of New Zealand? ‘Wholly Bagels & Pizza stores trade very profitably, but the brand never expanded outside the capital because the founders got distracted by other projects,’ Sam explains. ‘I’ve had over 25 years’ experience in the hospitality industry, having owned several cafés and retail food outlets, so I recognised the potential of a really good brand with a really good product. The food industry has plenty of pitfalls but having six stores over such a long period had proved Wholly Bagels & Pizza was sustainable and replicable.’

Authentic Taste Any Time, Anywhere Wholly Bagels come in a massive variety of flavours and combinations. For a start, there are 13 different types of bagels, from plain to cinnamon raisin, wholemeal to jalapeno cheddar. The bagels are prepared in the capital then delivered frozen to stores, where they are baked in a steam oven to give that perfect shine and unique texture. ‘It’s a very simple process which minimises the space, equipment and staff required by the franchisee while guaranteeing a great-tasting, fresh product,’ Sam says. Customers can choose from a wide range of gourmet and classic fillings including chicken schnitzel, pastrami, salmon and falafel. ‘And for those who want something different, we also offer a range of delicious pizzas with gourmet toppings,’ says Sam. ‘Have a look at our website – it’s all on there. And, of course, all this is topped off with a range of drinks including

Find more info at franchise.co.nz - Search: Wholly Bagels

And Wholly Bagels & Pizza’s slick and friendly image is supported by a full marketing programme, including a website that offers full on-line ordering either for delivery or collection at a given time.

Lots Of Opportunity For Those With Energy To Burn Wholly Bagels & Pizza is currently opening its first store outside Wellington, in Palmerston North, and intends to open up to 40 franchised stores nationwide. ‘We have been working with The Franchise Coach, one of New Zealand’s top consultancies, to develop processes that make the business easy to learn and manage, as well as truly profitable,’ Sam says. ‘As a result, we have created a very attractive proposition for our franchisees.’ Investment levels will vary considerably depending on location. ‘We estimate between $280,000 and $450,000 for a turnkey business, including fit-out, equipment, stock and everything else you need to get started,’ Sam says. ‘We provide four weeks’ comprehensive training in one of our Wellington stores, and then a further two weeks in your own brand new Wholly Bagels & Pizza outlet. After that, there’s ongoing help and support on a regular basis.’ So what do you need to succeed? Sam Rama is very clear: ‘You need to love bagels, pizza and healthy eating. You need energy and enthusiasm to burn. You need to be ready to invest and take on the challenge of being your own boss. And you need to be committed to maintaining the excellence that Wholly Bagels & Pizza is famous for. What you don’t need is a food background – although that’s good, too. In fact, I’d say anyone with the right attitude who is willing to learn the systems and work hard can create a thriving business with Wholly Bagels & Pizza. It’s all Advertiser Info up to you. ‘If you think you have what it takes and want the opportunity to make your mark selling New York-style bagels, pizzas and coffee in Auckland, Christchurch or any other city, give me a ring and discuss your future success.’

Wholly Bagels PO Box 33 234, Petone, Lower Hutt 5046 www.whollybagels.co.nz Contact

Sam Rama M 021 272 2422 franchise@whollybagels.co.nz

13


Franchise Opportunity: Food & Beverage

sales measured in

SMILES PER HOUR The Cheesecake Shop has been making customers happy since 1991

Carly Leddy and Paul Maguire (right) receive the 2013 New Zealand Franchisee of the Year award from Colin Mellar of The Cheesecake Shop

As Carly Leddy, franchisee of The Cheesecake Shop in Papatoetoe for the last eight years, says, ‘Nobody ever runs out of celebrations. People have birthdays every year and there is no end to the occasions at which you need a cake. That’s just one of the reasons why this is such a good and profitable franchise.’ The Cheesecake Shop was founded in Sydney in 1991 and today there are more than 200 stores throughout Australasia selling a wide variety of cheesecakes, mudcakes, tortes and desserts, celebration cakes and kids’ cakes, as well as little daily treats and a wide range of decorations. The franchise itself has been constantly developed and improved, with a brand refresh a few years ago renewing its appeal for a new generation of loyal customers.

From Hobby To Business Carly Leddy was a nurse from the age of 16, but after 30 years in the profession she decided a change was in order. ‘I’d always enjoyed baking and I used to do a lot of volunteer work for schools which involved making cakes and things, so it seemed sensible to look at a business which used the skills I enjoyed.’ Never having been in business before, Carly joined forces with her brotherin-law Paul and decided that a franchise would meet their needs. ‘We didn’t want to take on the risk of building a business and decided something wellestablished with proven systems would be the way to go. The Cheesecake Shop was well-known in New Zealand as a popular brand producing good quality products, and when our local store at Papatoetoe came on the market, it seemed like a very good fit. It had been the first Cheesecake Shop in the country so it was very popular with a strong local clientele.’ Even so, Paul and Carly didn’t rush into buying a business without careful consideration. ‘We did a lot of research into the franchise and the alternatives,’ she says. ‘We also spent a lot of time with the other franchisees, talking to them about the details, but our conclusion was pretty much the same: the business was solid, the shops were tidy, clean and attractive and the cakes tasted nice too!’ Despite having no business experience, Carly had no difficulty raising

No celebration is complete without a treat from The Cheesecake Shop Find more info at franchise.co.nz - Search: The Cheesecake Shop

Find more info at franchise.co.nz - Search: The Cheesecake Shop

The Cheesecake Shop 15.indd 1

finance. ‘The bank saw us as pretty low-risk as we had security, The Cheesecake Shop was well-known and the previous owners had been doing fine. We spent two weeks at the bakery learning the ropes, which was great training and we found the systems easy to operate and the recipes very easy to follow. We had two weeks’ full time support from the franchisor when we started in our own premises, and had the benefit of all the staff staying on, too.’

The Icing On The Cake After such a great start, Carly and Paul went from strength to strength. Eight years on, The Cheesecake Shop is a Papatoetoe institution and is flourishing under family control. ‘My son Jason is our baker and my daughter Claire is now a highly-skilled cake decorator,’ laughs Carly. ‘We employ one full-time assistant and some part-time girls after school. There are many things I love about this business and not the least is that it works very well as a family-run operation. We have the pleasure of making nice things every day that make people happy, and we always see a smile on the face of those collecting their cakes.’ Two years ago, the Leddy family extended their empire when they decided to purchase The Cheesecake Shop in Manukau, too. ‘It was a good way of enlarging our business and using our experience,’ Carly explains. ‘Now I manage Papatoetoe and Paul manages Manukau. We’re planning a third store in a few years’ time, too – the system makes it possible to manage multiple units and the franchise encourages established owners to expand. I suppose one day we may sell up and retire but in the meantime the family and I are all enjoying it too much to slow down.’

Keeping It Simple ‘Many of The Cheesecake Shop’s franchises are family-owned enterprises,’ says New Zealand general manager Colin Mellar, ‘and we’re looking for more franchisees to join them. To establish a new outlet will require capital of around $150,000 - $250,000, and baking experience is not essential. ‘Potential franchisees require people skills, customer focus and a strong desire to succeed in business. Generally, outlets have fewer transactions than other retail food shops but there is a relatively high spend per customer: this, combined with a long-proven operating system, means a franchisee generally needs Advertiser Info as few as two or three staff. Our award-winning system makes The The Cheesecake Shop Cheesecake Shop one of the simplest PO Box 301 857, Albany, businesses to operate and we provide Auckland 0632 a comprehensive four-week training www.thecheesecakeshop.co.nz course as well as full back-up in your Contact own store when you start trading. Nick Avgerinos ‘So whether you’d like to get into business with a new outlet or prefer to take over an established store, give us a ring. We’ll help you into business and you can start putting smiles on your own customers’ faces.’

P 0061 2 9723 1011 nicka@cheesecake.com.au Colin Mellar P 0-9-475 9634 M 021 802 811 colinm@thecheesecakeshop.co.nz

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21/03/14 4:57 pm


From Our Website

UPDATES

Franchise New Zealand is much more than a magazine - it’s a massive online resource, too. If you want to keep up-to-date with news about franchising in New Zealand and some of the more interesting stories from overseas, go to www.franchise.co.nz and follow us on Facebook or Twitter. Here’s our pick of recent news stories from our site.

Record confidence suggests strong year ahead for franchising in New Zealand The quarterly Franchising Confidence Index surveys have been running long enough now to provide a valuable record of expectations and trends in the sector in New Zealand. The latest survey, carried out in January 2014, shows that franchisors and service providers have high hopes for the year ahead – provided suitable franchisees come forward to take up the many opportunities now available. The survey measures ‘Net’ confidence – the difference between those reporting ‘better’ and ‘worse’. Franchisors were very positive in their outlook for general business conditions (net 79 percent), sales levels per franchisee (net 65 percent) and franchisor growth (net 62 percent) – a marked increase from the previous quarter.  By contrast, Franchisors on balance held a neutral to negative view on the availability of suitable franchisees and locations (both net 0 percent), availability of suitable staff (net 3 percent), and operating costs per franchisee (negative 18 percent), although there is a solid outlook for franchisee profitability (net 38 percent). The outlook for general business

conditions saw Franchisors’ responses jump to record levels (net 79 percent). Correspondingly, the majority of responding Service Providers also indicated substantial positivity for general business conditions (net 87 percent). This positivity is shared by other research involving general business, including the BNZ (net 68 percent in January), ANZ Business Outlook (64 percent in December) and NZIER (52 percent in December) business confidence surveys. Dr Callum Floyd of survey creators Franchize Consultants concludes, ‘Clearly, the current outlook is very positive compared to previous years. The sentiment contained within the results indicate 2014 could be a very strong year for franchising in New Zealand.’ Meanwhile, research from the US International Franchise Association predicts positive growth in 2014 and says statistics show that franchise businesses create jobs faster than other businesses. Read more – see link bottom right

Chicken ‘N’ Vegetable doubles Georgie Pie range

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

New face at Franchise New Zealand We’ve welcomed a new team member to Franchise New Zealand: June Pitman, who has joined us as business development manager. June has a background in advertising and events and has also owned her own small businesses. She’s already attended several franchise seminars and events to learn about the unique challenges faced by franchisors and franchisees and the very special relationships that develop. June looks forward to meeting clients, contributors and readers over the coming months. Read more – see link bottom right

Financial workout for franchisor staff and franchisees Franchise New Zealand is pleased to offer readers a substantial discount on the highly-regarded Franchise Field Financial Management Training course being run in New Zealand for the first time at the end of April. It is supported by Westpac and Franchise New Zealand magazine & website. The course has been developed by Griffith University’s AsiaPacific Centre for Franchising Excellence in conjunction with Avatar Consulting, which has specialised in financial literacy training for many years. The facilitator will be David Campbell, whose lively, practical and informative approach decodes financial data to make it easy to understand and provide practical guidance (see page 54 for his introduction to some of the concepts that will be covered). Franchise New Zealand readers can receive a $100 discount on the course fee. ‘In a busy, fast-paced environment, many businesses often don’t have the time, internal skills or reporting structure to recognise what or where performance is affecting business sustainability,’ says David. ‘One critical indicator is business financial health. Managers need to decipher financial statements to unlock hidden profits and drive business results.

Following the successful revival of the Georgie Pie brand with Steak Mince ‘N’ Cheese, McDonald’s has re-introduced another classic to the menu – the Chicken ‘N’ Vegetable.

‘This one-day course is an intensive financial intelligence workout focusing on the key areas of financial management to drive franchisee profitability.’ The intensive workout covers such essential skills as how to:

McDonald’s was inundated with requests from customers for other Georgie Pie favourites from the moment the re-launch was announced in May 2013. The company says that Chicken ‘N’ Vegetable was a common request and also ranked highest when McDonald’s Facebook fans were polled.

• Understand and analyse profit and loss statements, and balance sheets. • Identify the business drivers that impact on profit and cash flow. • Prepare a breakeven analysis and understand and master the many benefits of breakeven. • Identify the true business drivers and KPIs. • Establish best practice benchmarks. • Create meaningful targets and action plans. • Calculate ROI and other key ratios, and employ them in business decision-making. • Enable managers to anticipate business turning points and capitalise on opportunities. Read more – see link bottom right

‘With the national roll-out of Georgie Pie to the majority of McDonald’s restaurants all but complete, the timing for a new choice was right. McDonald’s will continue to look at bringing back more of the delicious flavours nostalgic Georgie Pie fans remember and even look at introducing some brand new ones.’ The Chicken ‘N’ Vegetable pie is slightly different to the original, which only came in the larger round shape and size. However McDonald’s has stayed true to the original recipe as far as possible, with the most significant change being that the new pie has no added MSG. As we reported last September, the introduction of pies into McDonald’s takes the brand into a whole new category – baked goods. With the corporation conceding that new competition and changing consumer habits have created ‘challenging industry dynamics’ that led to a recent drop in global same-store sales, the Georgie Pie experiment is being watched with interest by McDonald’s executives and franchisees around the world. Read more – see link bottom right

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And there’s more training available from five-times Westpac awardwinners Franchize Consultants, who are running three training programmes for franchise executives in May: Managing a Franchise System, Field Support Visit Training and Improving Franchisee Performance. The one- and two-day seminars will take place in Auckland. Read more – see link bottom right

Franchise New Zealand Volume 23 Issue 01 Autumn 2014


ROI!

www.facebook.com/FranchiseNewZealand

www.twitter.com/FranchiseNZ

Employment law proposal exempts some franchisees but still has hooks New recommendations on a controversial employment bill recognise the independence of franchisees but say it’s who generates the work that defines how franchisees will be treated. A new report from the Transport and Industrial Relations Select Committee on Part 6A of the Employment Relations Act specifically addresses franchise issues and recommends significant amendments to the contentious ‘Associated Persons’ clauses, but one franchisor is already expressing concern that further clarification will be needed. Part 6A requires that, in the event of, eg, a cleaning contract changing hands, employees of the outgoing contractor would have the right to transfer to the new contractor on the same terms and conditions of employment. This clearly affects the ability of the new contractor to bring in their own team of cleaners. Originally, the proposed changes suggested that businesses with fewer than 20 employees would be exempt from Part 6A when they took over a new contract. However, the Government proposed to create a new class of ‘Associated Persons’ to be taken into account when tallying up the number of employees. This stated that where the incoming contractor was a franchisee, both the franchisor and franchisee must employ fewer than 20 people between them in order to claim exemption. The new report recommends that franchisees should qualify as exempt employers if they themselves have 19 or fewer employees. FANZ Chairman Ian Robertson welcomed the news, saying, ‘We are pleased at the outcome, which puts franchisees on a level playing field with independent small businesses.’ But Grant McLauchlan, managing director of commercial cleaning franchise Crest Clean, still has concerns. ‘While the Bill has yet to be passed, if the recommendations are adopted then the customer will be happy that they won’t be stuck with the staff that they wanted a change from,’ he said. ‘It’s also great that the report recognises the sanctity of the franchisor/franchisee relationship and the independence of the franchisee. ‘However, we are concerned that the devil is in the detail of what is becoming an even more complicated piece of employment law, and small businesses will certainly need to seek legal advice on their obligations.’

The potential confusion arises over the fact that the 19-orfewer exemption applies where the franchisee bids for and manages contracts independently, but not if the franchisor bids for contracts then allocates the work to a franchisee – which has often been the case in many commercial cleaning franchises up until now. ‘The recommendation is better than the original suggestion, where it didn’t make any difference who generated the work, but it’s still very ambiguous,’ Grant McLauchlan said. ‘At Crest, we have regional managers around the country who are themselves franchisees, and they help generate business for cleaning franchisees. There’s more work to be done on clarifying how the recommendations will actually apply – if they are adopted.’ Crest has now published an open letter to Labour Minister Simon Bridges seeking clarification at the Second Reading of the Bill, as well as lobbying via the unusual medium of coffee mugs (above). Read more – see link below

In brief

Read more see link below

• The latest acquisition by Mad Butcher owners Veritas Investments means the company will add to its buying power and growth prospects while forming a key partnership with Burger King. • A new Wellington Pita Pit franchisee may have breached employment law by failing to follow proper procedures and telling staff they no longer had a job via Facebook. • The company which owns the master franchise for Nando’s, which was placed in receivership in November 2013, is close to being sold. • Christchurch-based Cookie Time has opened its first overseas outlet in Japan. The Japanese outlet will be operated under licence by a Japanese company.

Read more

Room2rent is a cabin rental business. It is a semi-passive investment that will give you stunning returns from 24% on your investment. Or, to put it another way, you could build a profitable cabin-empire while playing golf, fishing, spending time with the grandkids, surfing – or even reading a book! Of course you could also invest much more money into a rental property and be stuck with maintenance hassles, bad tenants and less ROI! Please read on...

So how does it work? We have carefully designed the Room2rent cabins so the parts the customer sees and uses are of the highest quality and usefulness. The expensive mechanical parts the customer doesn’t see or use are removed after delivery. This clever design feature keeps the manufacturing cost of each cabin lower. Our franchisees can therefore afford to buy and rent out more cabins, which provides more rental income and a higher ROI. Who uses Room2rent cabins? Huge numbers of people want an extra room, both around their home and around their workplace. They need extra bedrooms, home offices, hobby rooms, sleepouts, farm-worker accommodation – everyone has their own use for an extra room. But they want the comforts of home as well – so our cabins are fully kitted out with excellent insulation, lights, power, heater, curtains, carpets and more. Room2rent cabins are available in three sizes and have outstanding durability as well as being easy to clean and keep tidy. What does it all cost? Our franchise opportunity starts at $175,000 +gst. For this you receive 10 cabins plus everything you need to get under way, including: delivery equipment; a brilliant accounting package; uniforms; full training and support – not to mention your own exclusive territory! Building a cabin empire – I like the sound of that! Once you’re underway with a Room2rent franchise there is no limit to the number of cabins you can own and rent out. You’ll be part of an enthusiastic franchise team and can ask for assistance and guidance at any time. Room2rent cabins are built in our central facility so the costs are minimised through production efficiencies, whilst a high quality of build and fit-out is assured. What’s the next step? Check out our website – there's lots of detail plus photos of the cabins in use; we’re very proud to have it all on display. If you’re keen to take this further we would love to discuss our great franchise with you face to face. Give us a call and we can invite you to come and view our production facility. You can see the quality of the cabins themselves. We can take you through the Room2rent business model and show you how easy and enjoyable it is to operate. We currently have franchises available nationwide, so please carefully consider the Room2rent semi-passive income opportunity and the great ROI that could be yours.

MOBILE CABINS Call Bevan Billing TODAY! 0508 222 464

www.franchise.co.nz/updates

Find more info at: www.franchise.co.nz/updates

17


Licence Opportunity: Home & Building

HEALTHY PROFITS

from new water business HRV Water is a new opportunity from one of New Zealand’s most trusted brands

There are a few things that are absolutely vital to human life: the air we breathe; the food we eat; and the water we drink. New Zealanders have plenty of choice when it comes to food, but there’s less opportunity to shop around when it comes to the air and water in our homes.

www.iStock.com/000008978152

Or is there? 10 years ago, a company called HRV started installing purpose-built ventilation systems to create drier, healthier air in homes throughout the country, then introduced heating products, too. Since then, they have helped over 140,000 customers and, in the process, 20 franchisees have established large and successful businesses (see page 51). Now they are turning their attention to the third essential – water – and looking for new franchisees to make it happen all over again. ‘You might think water isn’t an issue in New Zealand,’ says Robert Bell, CFO of HRV Water. ‘But when the Ministry of Health Annual Report on Drinking Water Quality 2012-2013 shows that only 76.9 percent of New Zealanders received drinking water that met all requirements of the Drinking Water Standards for NZ, and in some areas 4 percent of water has faecal material in it, you may want to think again. Even WaterCare suggest you run the tap for a while before you start using the water each day. That’s a big concern for parents, householders, employers… everyone!’

A Complete Solution HRV’s new opportunity builds on its trusted name and proven systems to offer a complete water filtration system for the domestic and small business market. This system is installed on the customer’s town or tank water supply. ‘That means that not only can customers enjoy clean, healthy drinking water but they will also have that same filtered water throughout the house,’ explains Robert. ‘As approximately 70 percent of the water we ingest comes from activities like showering, eating prepared food and brushing teeth, that’s critical.’ The four-stage system specially developed for New Zealand conditions by HRV Water filters sediment, odour, chlorine and a range of heavy metals, as well as many bacteria and bugs such as giardia. In addition to sales and installation of the initial systems, licensees will also benefit from the recurring income generated by ongoing maintenance and replacement filters.

Build A Multi-Million Dollar Business From A Small Investment HRV Water offers an opportunity for new operators nationwide to join the business at an early stage from just $20,000 plus set-up costs. ‘Although it’s a low entry cost, licensees will receive some huge benefits,’ Robert The HRV water system filters out all sorts of nasties to provide clean, healthy water throughout the house

Find more info at franchise.co.nz - Search: HRV Water

says. ‘First, there’s the HRV name, which is already incredibly well-known through television, radio and online advertising, home shows and exhibitions, and sponsorship of events such as the HRV Cup Twenty20 cricket. Then there’s our reputation. We already have over 140,000 customers out there, with 86 percent saying in a recent survey that they would buy another product or service from HRV. Finally, there is our hugely-effective direct selling system, which has been proven to work throughout New Zealand, whatever the territory or demographic area.’ New licensees will need to have vision and leadership skills. ‘This is not a “man-and-a-van” type franchise,’ says Rudy Kokx of Link Business, who is managing enquiries on behalf of HRV. ‘While I expect many applicants to be couples with a good blend of practical and management skills, they will ultimately need to be able to manage 10 or more staff with a turnover of potentially $2 million or more – a lot more, in some areas. That means having owned or managed a business before, or worked at a senior level in a sales environment.’

Well-Proven Systems & Support ‘That might sound daunting, but we will show people exactly how to do it,’ Robert Bell explains. ‘There is a comprehensive four-week training and induction period learning about the product, sales systems, business management and financial management. There is strategic and comprehensive ongoing support to help you select and train the right staff. There’s a nationally-managed marketing campaign to generate enquiries, and a sophisticated CRM program to help your sales team create and convert more. And, of course, there’s bulk purchasing and continuous product development to ensure you can maximise profitability at every turn.’ So what sort of people does HRV want to hear from? ‘They need to be closely engaged with the business personally and highly motivated to succeed. They must be 100 percent committed to the HRV brand and systems. They must have the ability to inspire and coach staff and contractors to work together for everyone’s benefit, and they must be commercially-focused and results-oriented. The one thing you don’t need is experience in the home or building sector. ‘When the first franchisees joined HRV Ventilation from 2004 onwards, they couldn’t know how big their businesses were going to grow,’ Rudy points out. ‘Now, HRV Water is offering a rare chance for those with vision and determination to get in at the early stages of another major opportunity. It’s not your average licence – this business is very profitable with extremely high cash flows. Find out more by contacting me today for a full information pack.’

Advertiser Info HRV Water PO Box 12 324, Penrose, Auckland 1642 www.hrv.co.nz Contact

Rudy Kokx P 0-9-555 6042 M 021 421 346 rudyk@linkbusiness.co.nz

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Business Consulting

Business Consulting

MASTER FRANCHISEE OPPORTUNITY

FRANCHISEE/ CONSULTANT OPPORTUNITY

There are limited New Zealand Opportunities for motivated and passionate professionals to join our international consulting network.

There are limited New Zealand opportunities for motivated and passionate professionals to become a Franchisee/ Consultant in one of our New Zealand consulting firms.

Are you tired of the corporate grind?

Are you currently working in corporate and are looking for an opportunity to become a business consultant?

Do you want to change profession and learn a new set of skills as a business consultant? Do you want the opportunity to build a consulting firm in your local area? Do you have management skills and can demonstrate a successful work history?

Do you have good relationship building skills and enjoy working with business owners? Have you owned your own business and appreciate the plight of the small business owner? Do you want to be a part of the fastest growing business consulting brand in Australasia?

TERRITORIES

TERRITORIES

We have opportunities in Northland, Waikato, Bay of Plenty, Gisborne, Manawatu, Wellington, West Coast South Island, Queenstown and Timaru.

We have opportunities in Auckland, Northland, Central North Island and Christchurch.

For further details contact David Thexton 09-965-3861 david@thextonarmstrong.com.au www.thextonarmstrong.co.nz


Franchise Opportunity: Business & Commercial

top people, top brand,

TOP PERFORMERS Corporate Cabs is looking for next-generation owner/drivers

Are you looking for a stimulating, interesting and rewarding opportunity? Do you want long-term, full-time self-employment? Do you like meeting people and helping them? If so, then Corporate Cabs wants to hear from you. With over 400 owner/driver franchisees in Auckland, Wellington, Christchurch, Dunedin and Queenstown, Corporate Cabs has served the premium end of the taxi user market for 25 years. ‘Unlike other taxi companies, pre-bookings account for more than 80% of our business,’ says Colin Samson, Corporate Cabs CEO. ‘Our customers are mostly from the corporate and professional world, and we are a preferred cab service at many airports and the majority of high-end hotels. All this adds up to excellent regular business for our franchisee owner-drivers.’ And Corporate Cabs is more than just well-known – it’s officially a ‘Superbrand’, according to a programme which seeks to identify the best-known names in over 80 different countries. It’s the second year in a row that Corporate Cabs has been awarded this honour. ‘We’re obviously thrilled at being the only taxi company recognised,’ says Colin, ‘but what pleases us most is the reassurance it gives a potential franchisee about our brand, its values and its appeal.’

Turnover From $70,000 To Over $120,000 Colin is keen to encourage men and women in their 30s and 40s to look at Corporate Cabs as a viable long-term business option. ‘Historically, franchisees have often joined us as a part-time “twilight” career choice,’ he explains. ‘While we still want and welcome these people, Corporate Cabs also offers the younger generation the opportunity for stimulating, interesting and rewarding full-time self-employment with turnover ranging from $70,000 to over $120,000. That means your hard work can be rewarded with a very good standard of living for you and your family.’

Corporate Cabs’ owner/drivers provide the personal touch that makes all the difference

It’s clear that Corporate Cabs owner/drivers love what they do. Every day is different and they get the chance to meet some fascinating people from all over the world – although, as Auckland franchisee John Davies says, ‘When you have passengers such as Ministers of the Crown and MPs, you need to recognise there is a time for Advertiser Info talking and a time to be quiet!’ Corporate Cabs wants to hear from anyone keen to create their own future in Auckland, Wellington, Christchurch, Dunedin or Queenstown. ‘Call us and get yourself behind the wheel of rewarding selfemployment with Corporate Cabs – the Superbrand of taxis.’

Corporate Cabs PO Box 24 319, Royal Oak, Auckland 1345 www.jointhefleet.co.nz www.corporatecabs.co.nz Contact

Gary Bennett P 09-632 0600 info@jointhefleet.co.nz

Join the fleet and be your own boss

What does Colin look for in a franchisee? ‘Good driving skills, of course – our customers’ safety and comfort come first. Then they need to be able to speak English clearly, maintain a smart appearance, be a good conversationalist when required and have wide general knowledge. On top of that, they must also act as a chauffeur: open doors for passengers, carry their luggage and escort female and elderly passengers to their home or accommodation after dark.’ While the franchisee provides the personal touches that make all the difference, they are supported by a highly professional network. Corporate Cabs does everything from attracting new clients and arranging contracts with national and international organisations to managing bookings efficiently and getting the best deals for franchisees.

Two Roads Lead To New Future There are two roads to purchasing a Corporate Cabs franchise. One is to take over an existing car and contract, with the investment varying between $30,000 and $90,000 depending on such factors as the vehicle’s age. The second option is to start with a brand new longwheelbase Holden Caprice for around $110,000 including the contract and equipment. ‘And in a matter of weeks, after training you can start earning straight away,’ says Colin. ‘The hours you work are up to you but many do 50 to 60 hours in a 5 or 6 day week. It may sound a lot but many franchisees tell me it feels more like 20 hours. After all, what other career gives you an office as luxurious as a Holden Caprice?’ Find more info at franchise.co.nz - Search: Corporate Cabs

Corporate Cabs’ owner-drivers operate luxury vehicles, and have carved out an enviable reputation with many large corporate clients and regular casual taxi-users alike. People with the required skills and dedication should consider joining the fleet at an investment level of between $30,000 and $110,000. In return, being a member of the respected Corporate Cabs brand gives our owner-drivers the ability to turn over in excess of $120,000 per annum. Listen to our ‘Fleet Stories’ for yourself by going to www.jointhefleet.co.nz. Click the no-obligation APPLY NOW button and take the test to see if you have what it takes. Gary Bennett | P 09-632 0600 | E gary@corporatecabs.co.nz 400-strong fleet across Auckland, Wellington, Christchurch, Queenstown and Dunedin. Founded 25 years ago

21


Buying A Franchise: Financial Matters

FUNDING

a food business Daniel Cloete of Westpac looks at the options for new franchisees

The food sector has always offered some of the most attractive opportunities in franchising and, as the cover story in this issue shows, there is a huge variety of options available to potential buyers. When it comes to funding a food business, though, there are some unique aspects that franchisees – and their bank – need to consider. Let’s look first at some of the issues that affect a franchise’s ability to service its borrowing. The profitability of a food franchise is dependent on a number of factors: sales performance, gross profit (GP), food cost, wages and rent. This profitability in turn determines the ability of the business to obtain funding and reward its owners for the investment risk.

Sales Sales are influenced by such factors as the drawing power of the particular brand, location, price, availability of parking, service, atmosphere, etc. While recent statistics show growth for the food & beverage category as a whole, there is considerable variation between different sectors, and between individual brands in the same sector. Even if sales are good that’s not the whole picture, as generating sales is unlikely to lead to increased profitability unless you can also maintain or improve the Gross Profit margin.

Food Cost Understanding food cost and how to control it can be the key to success in

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the food industry. The fact that franchisees can compare their cost of food with others in the same franchise system (benchmarking) is a really important advantage when it comes to fine-tuning and getting it right. Lowering the food cost increases Gross Profit margin, which influences the bottom line and debt servicing ability of the business. Many franchise food brands have very sophisticated measurement tools and management information systems to assist with controlling food costs. These break sales down into categories or even specific items, so that the franchisee is aware of what contribution each category or item makes to their Gross Profit. GP is also influenced by factors like wastage and shrinkage (theft), which need to be carefully watched. Of course, the volume of food purchases of the larger franchises enables them to negotiate much better prices than individual businesses, lowering their food costs and increasing their competitiveness and profitability.

Wages Preparing and serving food is a relatively labour-intensive activity and the profitability of any business is damaged if the business is over-staffed. Getting the wages right compared to other similar food models is very important, which is another area where benchmarking is vital. When we look at funding the re-sale of existing businesses, we find that this is one of the components which franchisees have control over that they tend to get wrong very often. By simply fixing the overstaffing and/or working in the business as an owner/operator, it is sometimes possible to increase the profitability significantly.

Rent For fast food or fast casual dining options, lots of foot or vehicle traffic may be very important to drive sales. Where the business is a destination in itself, good parking matters more, while if the business is mobile or delivery-based, the location can be more flexible. This has a direct impact on the rent payable. Mall locations can present particular challenges because the high rents there, along with high operating and other expenses may push up the rent as a percentage of total turnover. This has to be carefully considered before purchase

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Franchise New Zealand Volume 23 Issue 01 Autumn 2014


because it creates a large fixed cost component which can have a direct impact on profitability and the ability of the business to weather downturns in sales.

Funding When considering buying a food franchise, then, all of the above factors need to be taken into account. It’s therefore important to work with your franchisor, accountant and banker to find out what is achievable, what is realistic, and to put together the best funding for your own specific needs. In all likelihood, this will not just be a simple loan but will involve a combination of two or more of the following options. Term loans can be used to fund the purchase of the business or the set-up, franchise fee, fit-out and equipment costs. Typically, three-to-five year term loans are used, secured against the business and cashflow. The funding term would be limited by the term of the franchise agreement or premises lease. A business term loan is often a good way to fund the business; by funding against cashflow, it also lowers the investment required by the owner. Equipment finance and leasing Most hospitality businesses require specialised equipment such as pizza ovens, coffee machines, display cabinets, vehicles or cool rooms which have a limited useful lifetime. Equipment finance is normally done using the equipment as security and over a term within the useful working life of the item being funded. Equipment finance funding has the advantage of lowering the equity/investment required, as funding could be up to 80-100 percent of value (if new). Leasing equipment such as computers may have some tax advantages as well. Some banks (like Westpac) offer equipment finance and there are specialist leasing and equipment finance companies in the hospitality industry. Some equipment manufacturers may also offer funding. When introducing new equipment, many franchisors negotiate a funding package for franchisees through their bank. One thing to remember is that total debt servicing doesn’t change and equipment funding rates can be somewhat higher than other forms of funding. It does, however, allow you to preserve your precious equity – always a consideration, as it’s important to have enough working capital to see you through the early days (see page 62). Equity can also come under pressure from the need to secure rental or purchase bonds; something that has become more common in recent years. Secured funding This is used extensively, particularly where long-term funding is required. It may require an owner’s contribution: for example, free equity in a property, or the total funding can be secured against property. Other forms of security or third party guarantees can also be considered. Secured lending would be the cheapest option and the part secured against property can be done over a longer term, which can lower monthly payments and ease cash flow pressures.

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Short term funding Where the restaurant or food outlet has a highly seasonal component – for example, where there is a large outdoor area that is only busy in summer, or the outlet is located in a holiday town that is only busy in season – sales will vary. Costs such as rents are fixed, though, so the business may require funding until the cash flow turns positive again. It’s wise to consider this at the start and plan accordingly. Other possible sources of funding for food businesses include fit-out contributions from landlords and, in the case of bars/restaurants, set-up contributions from the breweries. Ask your franchisor.

The Franchise Advantage In conclusion, the advantages that franchises offer in collective purchasing, marketing and benchmarking lower the business risk considerably for new entrants and support profitability. As a result, a bank with a specialist franchise unit like Westpac is often prepared to lend against the existing or even new franchised business itself, based on its Advertiser Info industry knowledge and the record of the Daniel Cloete is the National franchise system and the other existing Franchising Manager for Westpac. franchisees. You can contact Daniel or the In practice, this means that potential franchisees need less of their own money to get into business and can secure part of the investment against the assets and future cash flow of the business. If you are looking at getting into the hospitality sector, then, buying a franchise may enable you to afford a much larger food business than if you were setting up an independent outlet.

Westpac Franchise Team 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.

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23


Franchise Opportunity: Home Services

turning a chore into

GOOD CLEAN MONEY

Loven franchisees can make ‘a damn good living’ from eco-friendly oven service

Richard Lailey: ‘Although we have five regular guys out there all hours, we’re still not on top of demand – and that’s just one area!’

What’s the most unpopular chore in any home or commercial kitchen? Yes, it’s oven cleaning – and where there’s a problem, there’s an opportunity. The founders of Loven have turned that opportunity into big business and now they are looking for franchisees across the country to handle the massive demand for their services. ‘Believe it or not, we have commercial customers who insist on us cleaning once a week,’ says Tracy Lailey. ‘That’s good core business for anyone.’ Tracy owned a successful house cleaning company in the UK before moving to New Zealand with her husband Richard in 2007. ‘We quickly realised that there was no company here that specialised in oven cleaning,’ says Tracy. ‘I couldn’t find anyone to clean mine, so I had to go to the supermarket and get one of those horrid toxic sprays and do it myself. When we had our business we always used specialists who could clean ovens efficiently and above all safely, and we felt Kiwis deserved the same. So Richard went back to the UK to learn the ins-and-outs and then, in 2010, we created Loven – New Zealand’s first specialist oven cleaning service using a non-caustic and toxic-free system that has been proven for over 15 years.’ Right from the start, the biggest problem Loven faced was keeping up with demand. ‘As word got out so enquiries came flooding in, with regular bookings and referrals keeping us more than busy,’ Richard says. ‘We now have a call centre which handles dozens of enquiries every day and although we have five regular guys out there all hours, we’re still not on top of demand – and that’s in just one area! By franchising, we can meet the demand and maintain quality, as well as create opportunities for people to make money in their own businesses.’

Loven Makes It Easy The Loven system uses a combination of NZ-produced eco-friendly products and specially-tailored oven cleaning tools and techniques to create a business that is easy to operate while producing results that delight its customers. ‘We can bring most appliances back to looking as good as new,’ Tracy explains, ‘while the environmentally-friendly aspect is very appealing to our clients. Asthma and other conditions can be badly affected by spray-on oven cleaners, and we often hear comments such as, “Last time I cleaned my oven, it nearly killed me.” Loven is the solution. Loven founders Richard and ‘Some people clean their Tracy Lailey ovens more often than

Find more info at franchise.co.nz - Search: Loven

Find more info at franchise.co.nz - Search: Loven Limited

Loven 25.indd 1

others but generally most of our domestic clients call us every six to twelve months. The commercial sector is a whole other world, of course; in order to maintain their A-grade hygiene status they require regular and frequent cleaning, and we have the tools, methods and products to do it better than anyone. You’d be amazed how often we hear people say, “I’m never cleaning my oven again now I know about you!”’

Ready-Made Business The Loven franchise has been created with the help of highly-regarded consultants The Franchise Coach. With the first two franchisees starting in March 2014, the search for suitable people around the country has started in earnest. ‘We have opportunities everywhere, but we’d really, really like some applications from Wellington,’ Tracy laughs. ‘We get a huge number of calls from the capital, so there is a ready-made business there just waiting to fly.’ To restore an oven to ‘good-as-new’ condition takes a Loven-trained franchisee 60-90 minutes on average. ‘At that rate, it’s very easy to do at least four a day so you already have a good revenue base,’ says Richard. ‘But there are all sorts of additional services you can offer, too, such as cleaning barbecues, then there are ranges and big commercial kitchens… When you multiply all that by our impressive repeat business ratios, you can soon see how easy it is to turn over $120,000 a year, especially if you employ staff or take on sub-contractors. ‘Cleaning ovens may not sound glamorous, but we know from our experience just how big the market is here, and it’s clear from the UK growth that there is a lot more to come,’ says Richard. ‘For the right people, this is an opportunity to get in on the ground floor with a service that is very much in demand.’

A Damn Good Living The initial investment is from $35,000 +gst, which includes full training, all materials and equipment and business-set up costs. ‘There’s ongoing marketing and support, and we have an 0800 call centre that manages all bookings for our franchisees,’ Richard explains. ‘We also call every firsttime client back the day after cleaning to check they are happy and ensure repeat business. That makes the business easy for franchisees to manage and enables them to concentrate on maximising their time and managing Advertiser Info their growth. ‘We are looking for meticulous people who care about what they do, are good with people and want the excitement of building a successful business of their own. Loven is our baby, and we’d like to see others benefit from it too. There’s scope to make a damn good living, so call me now and find out more.’

Loven Limited PO Box 202 064, Southgate, Takanini 2246 www.loven.co.nz Contact

Richard Lailey P 0-9-296 5328 M 021 904 882 richardl@loven.co.nz

25

21/03/14 5:03 pm


Franchise Opportunity: Home & Building

huge demand for

RENOVATION SPECIALISTS Get in quick – Refresh Renovations is half-way to filling its specialist national network Greg Richardson: ‘The response from customers has been first class’

‘A good decision is one you don’t have any regrets about,’ says Greg Richardson. ‘I’ve certainly had no regrets about taking on the Refresh Renovations franchise – in fact, since I started in May 2013 it’s just got better and better.’ Greg’s decision to join the specialist home renovations franchise was what you might call an informed one. He has a corporate background and previously worked as an IT project manager for 15 years, as well as having done a lot of home renovations of his own, ‘So I was well aware of the problems that people face when restoring or remodelling existing homes. When I came across an advert for Refresh Renovations, it struck a chord and struck me as a good business model.’ Greg says that IT project managers tend to be cautious. ‘You always have to assess risk and plan accordingly so I spent a lot of time researching. I used the checklists in Franchise New Zealand magazine as a guide – if you go by that you’ll find a massive amount of research and background information to look into. And Refresh also encourage you to take professional advice, so when the time came to purchase I felt pretty wellprepared.’

Massive Market, Little Competition Refresh Renovations was launched in 2011 after five years of careful research and development by strategic marketing specialist Traffic. This established that the renovation market was actually much bigger than new building,’ explains Refresh Renovations franchise manager Graham Franks. ‘The latest data from BRANZ estimates the renovation market at $6.6 billion per year, and while new home building will flatten off, renovations will continue to rise to nearly $10 billion by 2017, and $11.5 billion by 2021. ‘And Traffic’s research showed something even more surprising. This was that renovations were mostly handled by amateurs or new home builders “filling in” between jobs with the result that some 40% of customers were unhappy or had a dispute over their work. Refresh was created to offer home owners a reliable, nationwide service that specialised in meeting this enormous market.’ With the support of many big name brands in the building industry, Refresh Renovations was launched in 2011 to immediate demand. Creative marketing including a very effective website, a fast-growing database and its own glossy magazine called Renovate (see www. renovatemagazine.co.nz), meant demand grew rapidly. ‘Our franchisees regularly find they are offered more work than they can handle,’ says Graham, ‘and many are working flat-out from the beginning. In addition, we are getting referrals from satisfied clients by the score.’

26

First Year Growth Proves Demand Greg Richardson became Refresh’s first franchisee in Wellington in May 2013. ‘I was quickly followed by three others and we rapidly formed our own support group,’ he smiles. ‘We think of it as a kind of “collegial” thing; by working together, we have the opportunity to share resources and learn off each other as well as build the brand faster.’ Despite his own background, Greg describes the thorough Refresh franchisee training as essential. ‘Refresh provide extensive manuals which lay out everything clearly in regard to processes, systems, quality etc. After all, as business people we are expected to be building businesses and employing staff, so having robust systems in place that enable proper accounting, purchasing and management are vital.’ With 30 franchisees now operating, Refresh is around halfway to its target of a network which covers the country. ‘The brand is very well-known and I often get calls from potential franchisees wanting to know what it’s really like,’ says Greg. ‘I point out that this kind of business is not like a coffee shop on the High Street where your customers come in from day one. Building always has a lead time so it takes time to generate income at first, but the franchise is very supportive and the centrally-generated leads provide a great deal of business. But you also need to work to build your local client and supplier base, and when you start you’re doing everything yourself! That passes as the work comes in, though, and I now employ both an administrator and project manager. If business keeps up this way, I’ll need more people, too – the response from customers has been first class.’

Good Managers Apply Here Graham Franks says that the key ingredients for success as a Refresh Renovations franchisee are a head for business, a genuine interest in property and a talent for working with people. You don’t need a building background – just the ability to communicate, make things happen on schedule and make clients happy,’ he smiles. ‘Your job is to take the stress out of renovating. ‘We are now looking to appoint more franchisees throughout the North and South Islands. Auckland is fully serviced, but there are plenty of other opportunities in many centres. Call me today and find out more – and talk to our franchisees, too. As Greg and his Wellington colleagues are finding, this is a huge and lucrative market for the right people!’

Advertiser Info

Refresh Renovations PO Box 37 941, Parnell, Auckland 1151 www.refresh.co.nz Contact

Jon Bridge P 0-9-301 0207 M 021 454 502 jon.bridge@refresh.co.nz

Franchise New Zealand Volume 23 Issue 01 Autumn 2014


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Buying A Franchise: Making The Right Choice

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With around 480 different franchise opportunities available here, New Zealand is the most franchised country in the world – and more are being created or imported every week. That means the potential business buyer is faced with a huge range to choose from. In addition, some 10% of the existing 20,000-plus franchise outlets may be for sale at any time, adding established businesses to the mix and making your decision even harder. But the truth is that of all these potential businesses, only a few will actually be right for you. Think of it like buying a car. When you start considering the car you are going to buy, there are various things you need to take into account: your budget; what sort of motoring you do; how many people you carry; reliability; safety; running costs, and so on. By the time you have listed all these factors, you will have reduced the possibilities from thousands to a realistic few models. You can do the same when you buy a franchise, only you will want to do it even more carefully. After all, a business is not only more expensive than a car – it is also going to take up your time and effort, and possibly represent a major change in your life’s direction. So let’s say that you have decided the time has come to buy a business of your own, or to move on from the business which you already have. You want a franchise but you’re not sure what to choose. The following six steps are designed to help you narrow down the opportunities from the hundreds available to the five or six which may be right for you. The trick is to be methodical – and honest.

Step One – Price Buy only what you can afford in today’s dollars Franchises, like cars, come in all shapes and sizes, and certainly in all sorts of prices. You can invest $20,000 in a business, or $1 million – it’s up to you. That is, assuming that you have the money. If you take a ‘blue sky’ approach to choosing a franchise, it can be very easy to get carried away. What happens if opportunity ‘A’ sounds just right for you and offers exactly the kind of work you have always wanted to do, but requires just a little bit more than you have to invest? It’s very tempting to persuade yourself that you can manage if you borrow a bit more, scrape by for a bit at first, and then make the additional payments from the growing profits which will undoubtedly follow. Wrong! You will already have quite enough challenges in front of you when you start a new franchise business: new responsibilities, new premises, new staff, new customers, perhaps a whole new industry. The last thing you will need is to give yourself constantly nagging worries about your finances. So buy only what you can afford in today’s dollars. I know this may sound harsh and yes, there are always examples of people who have managed to achieve success on a shoestring, but remember this – not having enough capital to support your business as it grows is the biggest single reason why new businesses fail. If your franchisor or your bank know that you are going to be taking on more debt than you can realistically handle, they will quite rightly prevent you from proceeding. They don’t want a failure on their hands any more than you do. So be honest with yourself and with them. Is there any way round this? Well yes, if you have patience and determination. If you really want the $150,000 franchise but can only afford the $50,000 one, then swallow your desires for now. Buy the smaller business, work hard, build it up over a couple of years then sell it and move on to the larger one. This is an increasingly common approach for people getting into their own business. In fact, I know of one person who started with a $7,000 franchise several years ago who used the cashflow from the first franchise to fund a second and so on. He eventually owned four franchises with a combined

28

Franchise New Zealand Volume 23 Issue 01 Autumn 2014


choosing with

www.istockphoto.com/stock-photo-15722758

CONFIDENCE turnover above $2 million. It is possible – but you have to be disciplined about it and start off with something you can afford. On the other hand, if you have the funds to support larger scale business then there are other options. The franchise sector has evolved. As well as attracting traditional single-unit franchisees, it is increasingly appealing to ‘super franchisees’ who own a number of outlets within one franchise or even in different franchises. Some franchises also offer Area Development Agreements which give you an umbrella contract with the right to open an agreed number of franchises in a geographic area in a set time frame. You then oversee management of a chain of franchise units operated by employed managers. Think outside the square. Financially, you also need to look at what return you must get from your new business in order to meet your other commitments. If you are used to a $70,000 salary, say, you might find it difficult to manage if you buy a business which is projected to earn you less than this. Of course, if you are using the franchise as a starter vehicle designed to give you a rapid capital gain so you can move on to something bigger then this may be a sensible strategy, but you would be very wise to discuss this with your financial advisors before making any decision. You also need to know what you can afford to borrow – ie. what level of repayments your preferred franchise will support.

age where technological advances have made industries disappear virtually overnight. Unless the franchise can clearly demonstrate that it can effectively harness technology in the future, I wouldn’t waste my time looking at it. Equally, in some new fields where technology is racing ahead I would be a little concerned about how the franchisor could keep me ahead of the race and, indeed, what the cost of such updates might be. The trend is for technology to become not just more affordable but so affordable that everyone who needs something can have it – think of computers and colour printers, for example. To maintain a saleable advantage in such an industry, the franchisor and franchisee must constantly re-invest. Consequently, the margins must be higher in direct proportion to the risk. Make sure that you research the industry very closely. Look for news stories on the internet (but make sure the source is reliable). Buy the trade magazines and read not just about the new products and the fantastic sales but about the long-term changes. Go back through several issues and look for news stories on the internet. Do you know anyone in the industry? Pump them for information and opinions. Look for trends (positive or negative) which could influence the business. If you are comfortable with a higher level of risk, fine - but make sure you do your research and are aware of the dangers. It’s your future.

My personal advice would be to pick an industry which offers a future but also offers some stability. It’s no surprise that modern franchising started So by taking a very simple step of working out what you can afford, which in the food & beverage industry. People will also give you the return you require will always need to eat and drink, just as to meet your commitments, you can houses will get dirty, cars will need repairs immediately knock out perhaps twoand grass will always grow. But there are thirds of the franchises available. If other strong sectors as well – two of the you look at the Franchise New Zealand fastest-growing right now are hair & beauty website at www.franchise.co.nz, a and building & renovation (see panel for More Help search function there will enable you What’s the Next Big Thing in Franchising?). to see what is available in each price To work out whether any particular franchise is the right range. The process works like a filter, In the same way we reduced our original one for you, you’ll need to do some research and ask lots of refining the choice of franchise for 480 possibilities to 100 by looking at questions. There are many helpful articles on the Franchise you. However, this is just the start. price, you can expect your choice of New Zealand website – here are five of the most important: You mustn’t assume that if you look industry to reduce the number even for a business which you can afford 250 Questions to Ask the Franchisor – A comprehensive list to further. Just by rejecting the industries then everything else will work out well. help you analyse any franchise opportunity and help you make you’re not sure of, in two well-researched Purchasing any business is a financial the right decision. steps you have narrowed your field from decision, but because it involves your www.franchise.co.nz/article/view/77 480 down to – where are you now – 30 life as well as your money, there are different franchises? We know what we can many other factors to consider. 50 Questions To Ask Franchisees – If you want to know what a afford and we know the industries to stay franchise is really like, you need to talk to the people who are away from. What’s next? Step Two – Industry already operating it. Choose stability www.franchise.co.nz/article/view/935 Step Three – Does It Fit? If you are looking at investing your Your new business has to suit you and Doing The Sums On Buying A Franchise – How do you savings and your future in a new your family evaluate a franchise from a financial point of view? A case business, you want to make sure that it study of a real-life business opportunity. The third step you have to take could be has a sound future – and that is partly www.franchise.co.nz/article/view/1124 the one which causes the most souldependent upon the industry in which searching. This is one which is often the business operates. I wouldn’t be What’s The Next Big Thing In Franchising? – Which types of overlooked, but I recommend you take the confident about opening a franchise franchise are most likely to show strong growth over the next most time over. The question is which, in an industry where there has been few years? Here are our tips for six sectors to watch. of those left, is really going to suit you? a reduction in sales or investment. www.franchise.co.nz/article/1682 What fits your inner desires, not just the The recent economic environment has financial ones? Do you have the skills and Is Your Job Too Small For You? – How can buying a franchise challenged businesses across most personality to do the work required? What change your life, and what changes will you need to make in industries. Look for franchises within is going to make you happy when you go to the way you think to enjoy self-employment? industries that have improved sales in work? What are you passionate about? www.franchise.co.nz/article/1827 this period. In addition, we live in an

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Buying A Franchise: Making The Right Choice

How much

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at work ?

sKids has been successfully operating for 18 years and currently provides programmes in over 100 locations throughout New Zealand sKids benefits to Franchisees:

• Outstanding Systems- Winners of the Westpac NZ Franchise Awards as Best Franchise System in the Lifestyle Services 2010/2011 & 2011/2012 • On-going training and support • A business that suits your life style Currently opportunities for Area Franchises in most areas throughout NZ from $45,000 plus GST

For franchise opportunities contact Chris 0800 754 372 or email chris@skids.co.nz ‘Without all the support and advice from the sKids Support Office I never would have made it this far’.

Franchisee, Claire Williams, sKids Willowbank

It is worth asking your friends and family what kind of business they believe you will be most successful in. They may have a different perception of your talents than you have yourself. One lady I know took years to convince that she had incredible sales skills – but the moment she moved into a sales role, she flew. You may have skills which you hardly use in your business life, but which your friends see all the time. It’s worth remembering that most small businesses involve some sales activity and require good communication skills. Are you the kind of person who likes dealing with the public? Even if your preferred franchise might allow you to work ‘out the back’ while your partner handles the retail side, you may still have staff to manage. Are you comfortable as a team leader? Do you have business management skills? If so, you may want to look for a franchise that allows you to build a team of employees. While all franchisors provide some degree of training, it makes sense to choose a franchise which makes use of any special skills or interests you might have – a Caci franchisee, for example, is likely to be passionate about the beauty industry. Leading franchises may provide a career ladder where there are opportunities for you to build on your industry skills and develop into managers, and ultimately owners, of your own franchise business. Be warned, however, that some franchisors are not always keen to take on people who have the belief that they know all about an industry and have limiting pre-conceptions or old habits that won’t die, to the detriment of their new business. Accordingly, many franchisors would prefer someone from outside the industry to join their team. How does your family feel about the businesses you are considering? What does your partner think? Are they enthusiastic about the business too? Will they be available to assist you when you really need them, if not in the business then through taking additional responsibility at home while you are working long hours? Are they absolutely supportive of your new direction? These are vital questions because you can be sure that if they do not support you totally right from the start there is every chance that you will not make a real success of the business. It’s because of that that most franchisors now interview both partners, whether both will be working in the business or not. They know how important it is that a hardworking individual needs the support of his or her family to be able to maintain the effort required to establish a successful and rewarding business – in fact, statistically the most successful partnerships are those between spouses or siblings. However, you should be asking yourselves these questions even before the interview stage: does this business fit me, my skills, my partner and my family? And there’s one last aspect to cover at this stage: does the business fit you socially? Do you just love to go to the rugby every Saturday? You might not be able to do that if you have a retail business. Does your service club meet every Thursday evening? If it does, how will that fit in with a business which requires you to be open for late night shopping? And will you really feel happy down at the golf club telling people that you are no longer sales director of a well-known national company but the owner of a fast fry chicken franchise? In other words, does the business fit you? So now we’ve used price to reduce the 480 to 100, industry to get down to 30, and suitability to reduce your options further. Now you’re looking at a manageable number – perhaps 5 franchises – and can start to get really detailed.

Step Four – Compare The Best Use a system of questions to select the best opportunities from your chosen few If I wanted to buy a franchised hamburger restaurant in Auckland, the first option that springs to mind might be McDonald’s – and why not? They have the world’s best-known brand, systems which have been refined over 60 years and a training regime second-to-none. In other words, consider the best first. But the obvious choice may still not be the right one for you. It may not be available in the area you want, or the culture may not suit you, or it may not have the growth potential. You need to use a logical system of questions to help you make a valid comparison between the five or so possibilities you have left. The questions you need to ask are likely to fall into the following general areas.

www.skids.co.nz 30

Business Experience How long has the company been operating, and how long has it been franchising? If there are already successful franchisees, it suggests that the system works and your risk is therefore lower. Franchise New Zealand Volume 23 Issue 01 Autumn 2014


Franchisor Experience Who are the franchisors? How long have the franchise’s directors and team been involved in franchising? Can you work with the decision makers? Apart from your life partner, this will be your next most significant long term relationship – make sure you can relate to them. Research Is the market right for the product or service? Is there a long-term future for the business? How will it be affected by the growth of internet marketing or the impact of new technology? Is it a fragmented market where the brand and systems of a franchise could create opportunities for rapid growth? Financial/Costs What is the real cost of the franchise – fees, set-up costs and working capital? How does the franchisor make money? Is there a large initial franchise fee, an ongoing royalty fee which is fixed or based on turnover, or a mark-up on products sold to you by the franchisor? Performance What figures can the franchisor produce to back up his claims? Are they based on fact? Are the sales levels realistic? Who is already achieving them - and can you talk to them? Marketing Does what the franchisor tells you about the product or service’s competitive advantage and the future of the industry match your own researches? Selection & Training What training will you receive initially? How long is it? Where does it take place? What does it cover? Is there a separate fee for initial training? Some franchisors split the franchise and training fee so franchisees can claim the training fee as a business expense immediately, rather than amortising it over the term of the franchise like the franchise fee. Is there an additional fee for ongoing training? Is ongoing training offered for both you as a franchisee, and for your team? Support What level of support can you expect? Will you have regular visits from a member of the franchisor’s team? Does somebody help you analyse your performance and suggest improvements? What benefits can the franchisor offer you through group purchasing? (see page 48 for more questions)

You need to get the answer to all these questions and more for any franchise which you are seriously considering. Many of the answers should be contained in the disclosure document which any good franchisor will have prepared, but Franchise New Zealand also publishes a helpful list of Over 250 Questions To Ask Your Franchisor (see panel). After you have done this, you need to take your list of questions along to the franchisor and write down the answers that you are given. There will be too much information for you to remember, particularly if you are talking to several franchises at the same time. Once you have the answers, review them in the cool hard light of another day. Sit down at home, perhaps with the family, and make some accurate comparisons with the information you have gathered. If you have asked the same questions of each franchisor, you will not be comparing chalk with cheese. It should be obvious exactly what each franchise offers, and therefore which one best suits your requirements. So from 480 we are now down to perhaps just a couple. What next?

Step Five – Get Professional Advice Ask for input from experienced financial and legal advisors Gut feel is often valuable in choosing something that you want to do and people who you really want to work with, but if you are making a major financial decision you would be foolish not to get as much good professional advice as you can. Franchising is about reducing risks, but you have to play your part too. The figures are hard to come by, but I would estimate that the majority of franchisees who have run into trouble have failed to do their homework properly and take sensible advice beforehand. You will need to see an accountant to verify any financial projections produced by the franchisor and to help formulate a business plan based upon your own individual financial position. This plan should allow for varying levels of sales in your business, and should give you an understanding of the impact that variations in borrowing levels, sales, costs and cashflow could have upon your new venture. It is worth using an accountant with experience of franchising, as they will have a better understanding of what is involved and the potential value of the brand, training and support offered.

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31


Buying A Franchise: Making The Right Choice

You can save yourself money by doing a lot of research and some of the number-crunching yourself. However, at the end of the day if you are thinking of investing your hard-earned money in a franchise then you must put those figures before an experienced accountant and heed the advice he or she gives you. The results could narrow your preferred choices even further. With the franchise agreement, like it or not you must see a solicitor. This is a binding legal document which will have an impact upon the way you run your business for the next five or ten years. A good franchise agreement will be basically fair to both parties, but remember that it was written by the franchisor’s solicitor with the aim of protecting the rights of the franchisor and all the other franchisees in the system as well as you. You need to make sure that the agreement gives the franchisor the ‘teeth’ to deal with other franchisees to protect your investment, and that in doing so it does not unreasonably restrict your rights. Take the agreement and go through it yourself with a fine-tooth comb. Pick out the points which are unclear, difficult to understand, or which appear to be biased against the franchisee. Then ask a solicitor to explain the agreement to you and give you guidance on these points especially. It is important that you are clear about the details of the business you are buying. Many franchise agreements are non-negotiable, so your lawyer’s primary role is to make you aware of the implications of entering into the agreement. As with accountants, it is best to use a specialist franchise lawyer – there is a list in the Directory on page 81 of this magazine. They will have a better understanding of what is and isn’t fair and reasonable within a franchise relationship, and can save time and even money through that knowledge. They may also have some ‘inside knowledge’ of the franchise you are considering which may be the last piece of the jigsaw for you. Costs can blow out when advisors are consulted who don’t specialise in franchising, as they have to put in extra time to learn about a whole new area – and even then, their advice may not be the best. Now is not the time to cut corners. An inexperienced advisor could end up costing you more than their fee. Don’t expect your lawyer or accountant to approve or endorse your choice of franchise; they are paid to be cautious on your behalf and to point out

potential pitfalls. Don’t be too discouraged or back out of a franchise if you are keen, until you’ve identified if the issues raised are real. Go back to the franchisor with any questions, or talk to other franchisees in the system – they know the business and can often provide the answer. When new franchisees do fail they often turn out to have taken a ‘she’ll be right’ attitude at the start. For this reason, many reputable franchisors now require new franchisees to certify that they have consulted a lawyer and/ or accountant prior to signing the franchise agreement. Nobody wants a franchisee to fail.

Step Six – Make Your Decision Invest only after due consideration If you have followed the steps this far, researching and carefully weighing up all the information which you have gathered, congratulations – you have probably spent more time investigating your requirements than 99 percent of business buyers. You will certainly have collected more information than most, and be better equipped to make a valid judgement on whether to take up the opportunity or not. Now we come down to you - how do you feel about this new opportunity? After all this work, you probably feel as though you have been squeezed through a filter yourself. Are you nervous, excited, scared, eager..? All of those emotions are perfectly natural. The important thing is that you are able to make your decision based on real knowledge and hard facts. From over 480 opportunities, you have selected the one for which you are best suited. You know what the business involves. You have your friends and family behind you. You have taken professional advice to minimise the risks and reduce the About the Author unknowns. You are now in a position to make a rational, informed decision. Is One of New Zealand’s most this your future? experienced franchise managers, Analysis can cause paralysis. There comes a time when you really have to back yourself. The choice is up to you. So go for it!

Glenice Riley has been a franchisee herself and is now managing director at FAB NZ Ltd, which owns the Caci and Toni&Guy franchises.

In national branding, we understand the requirement for consistency in quality and image. The difference is having the ability to deliver consistent results in varying local environments. Because you can’t always be there you need a signage partner that can. With 23 outlets nationwide, expect us to deliver a consistent image and message for your franchise group.

For your franchise branding requirements contact Business Development Manager Greg Longstaff on 021 677 992

speedysigns.co.nz

32

Franchise New Zealand Volume 23 Issue 01 Autumn 2014


Franchise Opportunity: Food & Beverage

don’t worry BE HAPPY Quick reactions and a cheerful smile are what you need for a drive-thru café with Muzz Buzz Muzz Buzz - putting a smile on the faces of busy travellers every day with a highly-efficient food & beverage service

When Harith Hakkak saw a crane come and plant a brightly-coloured box next to the vehicle testing station he owns in Manukau, he was impressed by the speed with which the new building turned into a busy drive-thru café. Within days, the store already had regular customers, and Harith (‘just call me Hari’) was watching his customers pop over to the green and purple box and return with first-class coffee and assorted treats.

frappés and fruit smoothies as well as bagels, croissants, muffins, cookies, pies and donuts. Muzz Buzz has fast service down to a fine art,’ says David. ‘Every single process has been fine-tuned over 12 years to make sure customers aren’t kept waiting.’

Making Money

It wasn’t just his customers, either – from 6am to 5pm Monday to Saturday (7am on Sundays), there was a constant stream of traffic using the drive-thru. Over the next year, Hari watched how the business grew, noted how the extra traffic was benefitting his own business, and struck up a friendship with owner/operator David Abetz. Eventually, he was so impressed he bought a half-share in ‘the box’. ‘I was going to open a second testing station, but Muzz Buzz is a concept I have seen grow and really believe in,’ says Hari. ‘People need a coffee sometimes but they’re also in a hurry. With Muzz Buzz, they can stay in the car, pick up what they want and be back on the road in no time.’ ‘Actually, our average customer turnaround time is one minute, fifteen seconds,’ says David Abetz. It’s no surprise David has the figure at his fingertips: as well as having the New Zealand master franchise for Muzz Buzz, he also owned and operated two highly successful stores in Perth. There are now 54 Muzz Buzz outlets in Australia and two in New Zealand, with the first franchised outlet here due to open in Hamilton in June 2014. So what makes Muzz Buzz different?

Focused On Speed

The system delivers not just speed but profits. ‘We did very well out of our two stores in Australia and things are taking off very nicely in New Zealand, too,’ says David. ‘Costs are lower here so profitability is higher, even after paying a full-time manager. ‘In many cases, of course, Muzz Buzz outlets are owner-operated which increases returns even further. But we also have several multi-unit operators in Australia who are doing very well indeed, and expect the same to happen here. In an area like Tauranga, for example, you could envisage a single operator growing from one to two to three outlets as his business builds.’ The investment required is around $250,000 – $300,000 depending on location and the level of site preparation required. As Hari saw, the business is a full turn-key operation, arriving fully-equipped and ready to start making money almost from the very beginning. ‘And unlike many franchises, you actually own the building,’ says David. ‘It’s classed as a portable structure, so you can depreciate it for tax purposes, but it’s a physical asset which is good for financing. Given our track record, the banks tend to look favourably at Muzz Buzz.’ And, as David points out, if a roading change or new shopping centre make the site less attractive, it’s not hard to pick it up and move it elsewhere. ‘Try doing that with a normal café,’ he laughs.

‘Right from the start, Muzz Buzz was set up to focus on take-away and drive-thru trade rather than being an add-on to a café or mobile operation,’ explains David. ‘Everything we do – building design, equipment, systems and layout of driveways – is specifically targeted at getting people in and out as quickly as possible. We have two service windows to reduce waiting time and although every drink is freshly-made to order, our customers know they’ll be in and out fast.’

Full Training (Bring Your Own Smile)

The 75-second service time is even more impressive when you consider that Muzz Buzz serves not just barista-made coffee but teas, hot chocolates,

Being a successful Muzz Buzz franchisee is more about personality than experience, David says. ‘We don’t expect people to have a coffee background, necessarily – we can teach them everything they need to know pretty quickly. But we do want people who have a cheerful personality and can communicate well. They also need to be able to put a smile on people’s faces early in the morning, Advertiser Info so if you usually wake up grumpy, Muzz Buzz isn’t for you! Muzz Buzz

Each Muzz Buzz arrives on site fully-equipped and ready to start serving customers Find more info at franchise.co.nz - Search: Muzz Buzz

Find more info at franchise.co.nz - Search: Muzz Buzz

Muzz Buzz 33.indd 1

Muzz Buzz manages every aspect of the start-up process including consents, site preparation and training. ‘We’ll help you with recruitment, training, marketing & promotions,’ promises David, ‘and provide an in-depth programme taking you and your staff through all facets of the business prior to your store opening.’

‘Seriously, I know from my own experience just how well the Muzz Buzz business model works. We got in early in Perth and want people ready to take the same opportunity and run with it here. Contact me to find out more.’

295 Penrose Road, Mt Wellington, Auckland 1060 www.muzzbuzz.co.nz Contact

David Abetz P 0-9-359 9068 M 021 112 7092 dabetz@muzzbuzz.co.nz

33

21/03/14 5:10 pm


Franchise Opportunity: Business & Commercial

no joking,

HUMOUR SELLS Giggle TV provides lifestyle opportunity with recurring income streams

Men who have pierced ears are better prepared for marriage. They’ve experienced pain and bought jewellery

Humour sells – just ask Tui’s advertising agency or any marketer anywhere in the world. And that single fact is the driver of a unique new franchise that’s home-grown in New Zealand. Del Shaw, the creator of Giggle TV, says that he’s spent a lot of money on traditional advertising over the years to promote various business ventures, ‘But I’ve always felt there must be a better, more cost-effective way to get in front of target audiences. Local advertisers need local media, but the falling readership of newspapers and fragmentation of radio mean these media are no longer delivering a bang for your buck.’ It was after one of his businesses became involved with digital screens that he started to explore the idea of using humour to engage viewers waiting in popular locations. Del teamed up with Jasmine (Jazz) Kiihfuss to develop the concept before launching Giggle TV in 2008. They installed LCD displays in cafés, convenience stores, takeaways, service stations, pharmacies, hairdressers, gyms ‘or any place where you may find yourself waiting,’ explains Jazz. ‘Rather than continuous adverts, Giggle TV silently displays regularlyupdated G-rated humour interspersed with advertisements. We call it “sticky content” – it’s impossible not to watch and it gives people a reason to keep watching every time they return to that location, which is what makes it so effective.

Profitable, Established, Recruiting Now As simple as Giggle TV might look, taking it from concept to reality required major investment to make it quick and easy to install, update and manage. Once up and running, the team realised that they had something unique. ‘We’ve searched the world and we’ve yet to find anything like Giggle TV,’ says Del. ‘It proved so popular that other people wanted to get involved, so we engaged Christchurch-based Mega Services Franchise Consultants to create a professional franchise system. We appointed our first franchisee in Palmerston North in December 2012 and now have five franchisees who together operate almost 400 sites across Taranaki, Hawkes Bay, Taupo, Bay of Plenty, Nelson and Timaru. The model is profitable, wellestablished and we’re ready to expand further.’

Rapid Pay-Back, Recurring Income Toni Dawson was a fan of Giggle TV in Palmerston North and, having a background in banking sales, could see the potential. When her husband

was transferred to Timaru last year, Toni decided to take Giggle TV with them and became a franchisee. Up and running since September last year, Toni is more than happy to share the benefits. ‘Everything Del says about the need for effective local marketing is true,’ says Toni. ‘Potential advertisers really do sit up and take notice when we tell them that for just $13 a day their advertisement will get up to 1500 exposures per day across a network of 40-plus screens. I started with 40 screen sites and have since added more, so that gives my clients a very effective communication tool. Is it effective? I have 35 advertisers already, many of whom came to me as enquiries from the screens or referrals from other advertisers. I think that proves Giggle TV gets results.’ And Toni is delighted with the returns she’s getting, too. ‘I’m currently on track for pay-back in 18 months, which is pretty good for a mother of a two-year-old working approximately 20 hours per week. I could then sit back to enjoy a great recurring income from repeat sales, but that’s not my plan – I want to achieve complete saturation in my area.’

Easy To Operate The Giggle TV investment is from $175,000, depending on territory, and the franchisors say a pay-back period of 12-18 months is ‘totally achievable.’ This figure includes a supply of screens and all necessary technology including a custom-designed, user-friendly control platform to manage your screens. Unlike many franchises, the ongoing fee is fixed so the more you sell, the more you keep. ‘Giggle TV’s strength is in its simplicity,’ says Del. ‘We might be forwardthinking and innovative, but we don’t over-complicate things. With all systems being cloud-based you can operate your business via a smart phone from anywhere you like – even a resort in Hawaii. ‘Our business model is that it is focused on keeping overheads low and margins high. By following the Giggle TV systems and philosophy, franchisees can easily build and maintain their client base with resulting recurring income.’ Full training is provided and Del accompanies each new franchisee to recruit the first 15 screen sites and 15 advertisers which get each new Giggle TV business off to a flying start. ‘The support from Del and Jazz is incredible,’ Toni enthuses. ‘I’m finding them true to their word about all aspects of Giggle TV.’

Toni Dawson: ‘Potential advertisers really sit up and take notice when we explain what they can get for just $13 a day’ Find more info at franchise.co.nz - Search: Giggle TV

Del concludes, ‘If you can use a smart phone, have a lively personality, and especially if you live in one of the main centres we haven’t reached yet, we’d love to tell you more about Giggle TV. Watch a sample on our website then get in touch.’

Advertiser Info Giggle TV www.giggletv.co.nz Contact

Jazz Kiihfuss M 027 603 9991 jazz@giggletv.co.nz

35


Franchise Opportunity: Business & Commercial

whatever your background...

CAN YOU BUILD A BETTER LIFE? Paramount franchisees come from all walks of life to enjoy financial security and success

The one thing Paramount Services franchisees have in common is that they have nothing in common – not before they joined this award-winning commercial cleaning business, anyway. Here are three franchisees from very different backgrounds who chose Paramount as a way to increase their incomes and change their lives.

The Hands-On Salesman Tired of selling and servicing milking machines, Bruce Mildon bought a Paramount Services franchise in Hawkes Bay. ‘My wife, Sara, and I had actually started in the cleaning business by clearing some gutters for the local council, but we realised there was no point struggling to build something from scratch when a good franchise has already done the hard work,’ Bruce explains. ‘The local Paramount franchisee wanted to move on so, like all good would-be franchisees, I got an expert to look at the figures. They weren’t actually that good, but I could see there was a lot of potential there so I went with my gut-instinct. I’m very glad I did because in only three years I’ve more than tripled the turnover, massively improved profitability and have 32 staff! Bruce and Sara also own a large orchard, together with an accommodation block for workers, and their Paramount business allows them time to operate this second business, too. ‘Some of my friends were originally pretty dubious about us buying a franchise,’ grins Bruce. ‘Their belief seemed to be that franchises only exist to line the franchisor’s pockets. Well, in just three years we’ve built up a portfolio of clients including schools, banks, department stores and a café that really value the service we give. All that has come from applying common-sense and having a very good franchise system behind me. They’re very supportive, it’s a great brand and I’ve never had a single complaint. The franchise fee is money well spent, if you ask me.’

The Taxi Driver Atul Patel owned a share in a taxi service until 2010, when he decided to examine possibilities in the cleaning sector. ‘I thoroughly checked out six cleaning franchises in Wellington and chose Paramount Services because I wanted to grow a business,’ he says. ‘The Paramount model gave me the

ability and the systems to grow and employ others, not just do everything myself.’ The franchise certainly did that – Atul started with 2 prestige customers and now has 20 staff servicing 18 clients. ‘It was important for me to build a substantial income not just for my own future but also to get my sons (now both accountants) through university,’ he explains. ‘That’s exactly what investing in Paramount gave me. They have excellent systems in place and if you do get stuck, the franchisor is always available and very supportive. Cleaning needs to be spot-on every time, and I keep in regular contact with my clients to ensure any mistakes are corrected immediately. It is very much about communication as well as cleaning and we need to be flexible around the needs of our clients. By doing that, I have never lost a client – only added more,’ Atul smiles. After more than three years with Paramount, Atul has found the franchise has delivered everything he wanted and is planning further growth. ‘It’s achieved my financial goals and, as a big bonus, has given me the freedom of a great lifestyle.’

The Student Spring Jiang was a chef in a Mission Bay restaurant until four years ago when she decided to go back to university. ‘Rather than get a job to see me through my studies, I decided to see if I could buy a parttime business. I found out about Paramount and discovered their opportunities were snapped up very quickly when they came on the market, which I thought was a good sign. I started with a very small annual turnover of around $15,000 in June 2009 and multiplied this several times in the first two years. By March 2011, with support from the franchisor, my business had reached an annual turnover of $155,000!’ Spring continues, ‘A major point of difference with Paramount is that they really care. They genuinely wanted me to succeed in business and helped me with the right contracts when they became available. Now my turnover is around $250,000 and the business still doesn’t interfere with my day job – I’ve completed my studies and am putting everything I’ve learned into practice as a business manager with a major bank.’

Family Feel, Flexible Opportunities The experiences shared by Bruce, Atul and Spring are not uncommon, according to Paul Brown, Paramount Services’ general manager. ‘Paramount Services has evolved over 30 years to create an industryleading franchise that still retains a family feel. We value our franchisees as much as the environmentally-conscious services they provide, and that’s Advertiser Info helped us go on growing. We now Paramount Services have over 1200 major clients PO Box 8939, Symonds Street, and an ongoing need for more Auckland franchisees to service them.

Spring Jiang

Bruce Mildon

Find more info at franchise.co.nz - Search: Paramount Services

Find more info at franchise.co.nz - Search: Paramount Services

Paramount 37.indd 1

Atul Patel (right) now employs 20 staff

‘We have flexible opportunities available in most areas starting from around $30,000 so if you’d like to tap into the lifestyle and growth that Paramount can provide, give us a call.’

www.service-is-paramount. co.nz Contact

Paul Brown P 0-9-376 7850 M 0275 430 233 pbrown@paraserv.co.nz

37

21/03/14 5:14 pm


Franchise Opportunity: Food & Beverage

join the

MOVERS & SHAKERS

Shaky Isles is seeking multi-site operators for its fun café brand

One of New Zealand’s largest hospitality groups is looking for major licensees to develop its exciting Shaky Isles café brand around the country. ‘Shaky Isles is a fun and irreverent concept that fills the gap between the formulaic mainstream chains like Starbucks and the one-off eccentrics,’ explains Simon Ansley of Pack & Company, the brand’s creators. ‘It’s a highlyversatile brand that covers everything from coffee and counter food to full dine-in café meals. ‘As well as our own-blend coffee beans, we offer really good food using free range and organic ingredients where possible. Some Shaky Isles outlets sell alcohol, generating additional revenue, and we also have a growing merchandise trade with beans and t-shirts available in-store now and further products to come.’ Pack & Company has a reputation for developing on-trend brands based on a strong profit model, including such well-known names as Northern Steamship in Auckland and Matterhorn in Wellington. ‘We opened the first Shaky Isles in Kingsland, Auckland, in 2007, then added outlets in Britomart and Newmarket,’ says Simon. ‘Now there’s also a large Shaky Isles café and bar at Auckland International Airport which is operated under licence by Spotless, who manage a lot of the airport’s catering outlets. The licence arrangement gives them access to a profitable, high-quality brand with proven systems and a unique flavour of Aotearoa. Shaky Isles is looking for additional partners to become multi-site licensees in key areas around the country. ‘They need to be established businesses

with the ability to open and operate multiple outlets,’ says Simon. ‘They also need to have some special expertise, either in local knowledge – areas such as Christchurch, Wellington and Dunedin – or in particular sectors such as stations, stadiums, retail chains or service stations. Shaky Isles offers licensees the ability to operate a successful and attractive café brand without needing to develop their own IP.

The new Shaky Isles cafe & bar at Auckland Airport

‘The Shaky Isles format can be very flexible, from grab-and-go kiosks to fully-licensed cafés, and can also offer off-site catering. The format also suits centralised preparation: in Auckland, for example, we have a bakery and prep kitchen that supplies all our outlets with counter food and baked goods.’ Initial and ongoing licence fees are negotiable on an exclusive basis depending on the nature of the area or sector. Café design and/or full-build packages incorporating the funky Shaky Isles branding are available, with kiosk costs starting from around $100,000. ‘We’ll support licensees with operating systems (menus, Advertiser Info recipes, systems, standards, audits, Shaky Isles etc), buying benefits and marketing PO Box 2183, Shortland including launch packages, ongoing Street, Auckland 1140 promotions, point-of-sale, Facebook www.shakyisles.co.nz and other online activity,’ says Contact Simon. ‘To find out more about adding Shaky Isles to your company’s catering or retail portfolio, contact me today.’

Simon Ansley P 0-9-929 2741 M 027 643 5279 simon@pack.co.nz

OUR BUSINESS SUCCESS FORMULA

Through the years Mexicali has been at the leading edge of the Mexican Evolution™ We are doubling in size this year and it’s only the beginning. We have put together an amazing team of professionals to negotiate your lease, design & build you a store, help hire and train your team, and launch and market your new restaurant. We will be with you every step of the way.

Our business success is due to our multifaceted focus on the wellbeing and motivation of our employees, and the high quality standards of food and service they deliver to our customers. The customer experience is equally important as the consistent, high quality authentic Mexican food itself. All of this is under-pinned by comprehensive but simple business management and operational systems that reflect years of tried and tested experience, both here and in the United States. We’re not looking for a lot of franchisees, we just want great ones who can help grow our brand. Candidates will need to provide the strategic and financial requirements to be part of our exclusive group. For more infomation,

CONTACT US NOW P: 021-750-070 E: INFO@MEXICALIFRESH.CO.NZ 38

Franchise New Zealand Volume 23 Issue 01 Autumn 2014


Franchise Development: Exporting

BurgerFuel’s new partnership opens the door to the world’s biggest franchise market – and other Kiwi franchisors are keen to follow

When the news broke in January that US company Franchise Brands had taken a stake in New Zealand’s very own BurgerFuel, the reaction of the financial markets was immediate and ecstatic. BurgerFuel’s share price immediately jumped from $1.50 to $2.70 and by the next day had more than doubled in value. The news impressed many in the franchise sector, especially the local franchisors who were about to set off for the US themselves on a visit to the International Franchise Association convention. We talked to BurgerFuel Worldwide’s CEO, Josef Roberts, and some of those on the latest trip to find out more about prospects for New Zealand companies in the world’s biggest franchise market.

Who are Franchise Brands? Franchise Brands LLC was created in 2005 as a vehicle for investing in emerging companies which are either already franchising or have the potential to do so. Its founders, Fred DeLuca and Dr Peter Buck, are better known as the creators and owners of Subway, the world’s largest restaurant franchise. The deal will give BurgerFuel, which has already established itself in the Middle East, access to the vast experience of the people behind the success of Subway in markets around the world. Franchise Brands has initially taken a 10 percent stake in BurgerFuel Worldwide, with the option to increase its stake to up to 50 percent.

Why are they interested in BurgerFuel? Josef Roberts and BurgerFuel founder Chris Mason connected with Fred DeLuca and Franchise Brands’ managing director Lisa Oak at the International Franchise Association’s (IFA’s) convention in Las Vegas in 2013. ‘They were looking for alternative concepts and we had one ready to show,’ Josef explains. ‘While the US food sector is saturated in many respects, the market for gourmet burgers is only just getting started there so it’s about being better than anyone else. BurgerFuel offers a high quality, healthier product and has always aimed to be ahead of the game with choices like gluten-free buns, low fat fries, vegetarian options and free range chicken. ‘The brand plays a key role, too – we’re a high energy business with a distinctive image and do things that other companies don’t. But, along with all that, we can also demonstrate that we’ve constantly invested in building a solid infrastructure behind the brand. We’ve not opened stores in a rush; instead we’ve steadily grown and demonstrated our ability to scale up our systems and marketing accordingly as we’ve entered new countries. And, of course, being a public company gives us a reassuring level of transparency and governance.’

What are the benefits? Although BurgerFuel has successfully established itself in the Middle East, an earlier excursion into Australia was less successful, demonstrating the difficulties facing franchises seeking to enter more established markets. The deal with Franchise Brands gives BurgerFuel a significant advantage by giving them access to Subway’s area developers and franchisees in the US and other countries. ‘There are a lot of very experienced operators and developers within Subway, and BurgerFuel could give them the opportunity to expand their empires in a whole new sector,’ says Josef. ‘From our point of view, we gain access not just to those people but to the expertise and contacts Subway has built up in so many areas: operations, systems, support and, vitally, assistance with real estate, leasing and Find more info at franchise.co.nz

BORNE

to the USA establishing supply chains. Those are huge challenges when entering new markets so it gives us a real head start. We’re now working with senior executives from Franchise Brands and Subway to put all the pieces in place. We’re not in a hurry – we’re taking the time to do our research and do it right.’ Josef says that while the new partnership has global possibilities, the immediate focus is on the US where there has been talk of opening 1,000 stores over 8 years. ‘That’s where we want to go – that’s the country to get scale,’ he says, firmly. ‘We’ll identify a region, a city or a state and establish ourselves there before rolling out nationally. That will enable us to test the market and the supply chains.’

Thinking Globally Articles in the New Zealand media raised concerns that US agricultural protectionism could make life difficult for BurgerFuel, but Josef says that was somewhat exaggerated. ‘Look, BurgerFuel sells grass-fed beef in New Zealand and our preference is for free range, hormone-free, sustainable products. We want to maintain those standards, but we sit outside the price-driven commodity market so it’s not such an issue. We’ll export some products from New Zealand, especially at first, but ultimately it comes down to economics and consumer taste. BurgerFuel has always wanted to be an international brand and that’s where we’re going now.’ It’s a statement that reminds me of something Josef said to Idealog magazine back in 2006: ‘To me as an entrepreneur you haven’t really made it until you can build a global brand. Take a brand from New Zealand and make it global! If I could achieve that, I would feel that I’ve made a contribution to New Zealand and also to myself.’

The Next Wave? Auckland lawyer Stewart Germann has been a regular visitor to the annual IFA Conventions and this year led a small group of New Zealanders eager to find out more about the realities of franchising there. ‘Until you’ve been, it’s hard to understand just what a massive industry franchising is in the US,’ he says. ‘At this year’s Convention, which was held in New Orleans, there were over 3,400 delegates and the accompanying expo featured over 200 stands from service providers. It’s pretty high powered, but at the same time people are friendly and approachable and eager to talk. ‘We joined the Australians for a 3-hour briefing session at the start of the Convention and it was fascinating to hear the experiences from some of those who had already been doing the groundwork for launching systems in the US. John O’Brien from Poolwerx, which is an award-winning system in Australia, said they were on their third attempt to find the right partners there, with previous efforts being stymied by timing issues of private equity pull-outs. Getting the right partners is clearly vital, so don’t give up!’

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Franchise Development: Exporting

In addition to the Convention itself, New Zealand delegates also enjoyed one-on-one meetings arranged by Stewart with a number of franchisors, consultants and lawyers as well as Steve Caldiera, the president and CEO of the International Franchise Association. ‘Stewart seemed to know everyone – he was awesome,’ chuckles Derek Lilly of Dream Doors. ‘I found the whole event extraordinarily valuable and if you’re thinking of taking a franchise to the US it’s great to have all the people you need to speak to there in one place. That’s not to say it would be easy: in fact, the US is clearly a minefield when it comes to legal and compliance issues and you need to build up a certain level of knowledge before you can even begin to know what you don’t know. ‘My impression is that if you can find the right partner to pair up with, as BurgerFuel have, you can save a lot of time and money and avoid a lot of the pitfalls. Attending the Convention has certainly changed my plans about how to approach the US and I’ve met some interested parties already. I couldn’t recommend it more highly.’

‘An initial plan to revamp the stores was rejected by franchisees as too complicated and too expensive. Rather than defend their plans, the franchisors listened and returned to the drawing board. It took them two years to come up with an alternative but, once implemented, the stores began turning around. Since then, Popeyes has increased sales and market share, franchisee profits have risen dramatically and the share value has followed. It all came down to listening to their key people – the franchisees.’

Huge Opportunities Stewart Germann believes that the US offers huge opportunities for New Zealand franchises ready to take the plunge. ‘From what I’ve seen, our better systems could more than hold their own in the US market, particularly if they find the right local partner.

A Lesson Learned

‘Of course, you have to do your homework with a proper competitive analysis and entry plan and, before you start making noises, ensure your intellectual property is properly registered – you don’t want to have your ideas stolen before you start.

Galvin Bartlett of Paramount Services agrees that America is a whole different world. ‘The size of operations in the US never ceases to amaze me. You know how it is – I was sitting with this really nice guy and explained we have 140-plus units in NZ. He sounded really impressed and then let it slip that he has 3,000 franchisees in his company!

‘The other big thing to consider is where you commence operations. The US not only has Federal disclosure documents but 15 states have their own legislation, too. There are heavy fines for non-compliance so you don’t want to get it wrong. Pick your starting point, take advice and take care.

‘For me, the most impressive speaker was Cheryl Bachelder, CEO of Popeyes Louisiana Restaurants which has over 2,200 stores. In 2007, the company was in trouble with unhappy franchisees, declining store sales and a low share price. She said that when she came on board, the most important challenge for her and her team was to identify whether the success of the business was reliant on satisfied customers, shareholders or franchisees. Ultimately, they resolved that franchisees were the key stakeholders: if they were satisfied and making money, they would look after their customers and the company would prosper. They then began to focus on listening to franchisees.

‘If you do all that, you have access to a market of over 300 million people and the opportunity to build a global brand. Companies like BurgerFuel are leading the way and it will be interesting to see who will follow in their footsteps over the next few years.’

40

Or, as Josef Roberts put it back in 2006 at the start of the BurgerFuel journey, ‘New Zealand is full of small businesses – it doesn’t need another one. Aim high!’

About the Author Simon Lord is Editor of Franchise New Zealand magazine & website

Franchise New Zealand Volume 23 Issue 01 Autumn 2014


Franchise Opportunity: Food & Beverage

Cafe2U’s unique offer proves attractive to career changers

fresh start with

Does what it says on the van: Cafe2U offers a range of seasonal items as well as great coffee and traditional favourites such as pies

CAFÉ ON WHEELS ⇒

When John Stanton boarded his flight to Australia just after Waitangi Day, he had every right to feel excited. The franchise recruitment manager for Cafe2U had run an information seminar in Auckland that attracted almost 40 people. Of the eight who applied for franchises, four eventually made it through the rigorous selection procedures before being invited to become Cafe2U franchisees. All in their 40s, the new franchisees will further increase the numbers of the 230-plus Cafe2U franchisees in Australia, England, the US and New Zealand who are making a fresh start. ‘We’ve found that from 40 onwards there’s a peak in interest from people who are choosing to make a career change or are spurred on by redundancy or the option of early retirement,’ says John. ‘They want to do their own thing as their own bosses, whether for the next 5 years or the next 20. Above all, they want to do it without the financial risks and emotional stresses of starting a business from scratch – and that’s what Cafe2U offers.’ John gets no argument from New Zealand franchisees like former fireman George Stephens (59) or former salesman Nick Rising (51), both of whom started their own businesses with Cafe2U last year. ‘The franchise is really like an extended family,’ George reports, while Nick overcame some pre-start nerves to the point where he’s ‘so happy with the business I’m considering operating a second unit.’

More Than Espresso Cafe2U started out in 2000 as a mobile coffee business on Sydney’s northern beaches and took five years to perfect a business model which saw not just a ‘coffee van’ but a full mobile café calling on an established round of customers. The Cafe2U franchise was launched in 2005 and by 2008 there were 100 Cafe2U franchisees in Australia with the respected BRW Fast Franchise survey naming Cafe2U the fastest-growing coffee franchise two years in a row. Launched in New Zealand in June 2012, John Stanton says growth here is tracking as well as – if not better than – Australia. ‘After all, the climate in New Zealand is more suited to hot drinks, and Kiwis do like their pies and savouries,’ smiles John. ‘Not that that’s all we serve – every franchisee can also offer a range of seasonal items including sandwiches, salads, muffins, bagels and paninis, as well as nuts, chips and cookies. These all come from Cafe2U-approved local suppliers, generating a large additional revenue stream for little extra work.’ Find more info at franchise.co.nz - Search: Cafe2U

Finite Opportunities Reflecting on the success of the Auckland seminar, John suggests anyone interested should contact him quickly as there are only a finite number of Cafe2U franchises available. ‘When we say we are looking for a franchisee in Auckland East or Dunedin North, these territories are not guesswork but based on science,’ explains John. ‘Using a range of research tools that measure working population and numbers and types of businesses, we’ve created a broad map of potential areas throughout New Zealand. Then, using more detailed analysis and on-the-ground research, we’ve mapped specific territories to give all Cafe2U franchisees an even chance of success. ‘We expect each area to be capable of generating a minimum of $2500 per week but that’s just the start – we also factor in the opportunity to grow by shedding low-return locations in favour of higher ones, and adding a second mobile café within the territory as demand builds. A very achievable aim is 25 to 30 calls per day at around $40 each. Working just a five-day-week, that’s $6000 turnover per unit. The low overheads of Cafe2U mean franchisees earn a very high profit margin on that, and of course have all the tax benefits of a home-based business, too.’ John is confident that by the time you’re reading this, only a few Auckland territories will be left. ‘Around the country, currently, Wellington has four territories on offer, Christchurch three, Dunedin two and Invercargill one. Regional centres with two franchise territories mapped are Tauranga, Rotorua and Nelson, while we’re looking for single franchisees each for Whangarei, Taupo, Palmerston North, Gisborne, Napier, Hastings, New Plymouth, Whanganui and Blenheim.’

Minimum Income Guarantee The $130,000 +gst investment (which can be substantially financed) secures a brand new Cafe2U Mercedes van equipped with a generator, espresso machine, fridge and hot food displays. New franchisees receive intensive barista and business training in Sydney, on-going mentoring and personal support from a business development manager who spends the first two weeks on the road building business with the franchisee. ‘It’s a well-proven system and is so effective that we give a $500 a day minimum income guarantee for those first two weeks,’ says John. ‘What we say to anyone interested in Cafe2U is this: you bring the smile and we’ll teach you how to do the rest. This is a relationship business where the franchisee is the barista, customer service manager and accountant all Advertiser Info rolled into one. We’re not just another coffee franchise, we’re Cafe2U (NZ) Pty Ltd the only true café on wheels. PO Box 158, Shortland Street, That’s a real point of difference Auckland 1140 which enables you to enjoy a www.cafe2u.co.nz fun and financially-rewarding Contact business and lifestyle, so if you John Stanton P 0508 004 388 have that smile, call me now – jstanton@cafe2u.com whatever your age!’

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Franchise Opportunity: Food & Beverage

JOB SATISFACTION makes the difference The Coffee Guy franchisee signs on for another five years of the good life

Michael Baxter enjoys his franchise so much he has just renewed his agreement for another five years. ‘It more than pays my mortgage and bills and I thoroughly enjoy the lifestyle it provides,’ grins The Coffee Guy franchisee. ‘I start work early and am free all afternoon to play golf or whatever.’ Made redundant by an Auckland software company five years ago, Michael decided to return to his Tauranga roots and find a business of his own. ‘I’d been a McDonald’s manager at one stage in my life, so I was very familiar with the hospitality business and the need for good service. What I needed was something affordable I could run myself, and when I looked at Franchise New Zealand magazine the opportunity that stood out for me was The Coffee Guy.’ Michael contacted the franchise and took up the invitation to phone all their existing franchisees before he made a decision. ‘I established there were no hidden costs or agendas, and asked all the franchisees: “Would you do it all again if you had the choice?” They all said “Yes,” which was enough for me.’ For Michael, a big advantage of The Coffee Guy is that franchisees pay a flat fee rather than a percentage of sales. ‘This means that the more you work, the more you get out of it. For my first two weeks after training I had The Coffee Guy business developers working with me to set up my initial round, and it’s been growing ever since. For the last two years, I’ve also

Find more info at franchise.co.nz - Search: The Coffee Guy

Michael Baxter: ‘Other franchisees told me they’d do it again – and I have’

had a regular Saturday morning fixture at Tauranga Farmers’ Market, which works really well for me.’ When Michael first started he had invaluable advice from another local franchisee. ‘We became really good friends and still play golf together,’ says Michael. ‘Now I really enjoy passing on the knowledge to the next generation of franchisees. This really is a fantastic little business – I’ve only put 50,000 kms on my van in five years, doing the GST takes me half an hour a month and I have regular clients who’ve been with me since I started. The appeal is simple – if you make good coffee, people will come back for that every time.’ The Coffee Guy offers a surprisingly affordable starting point for those wanting to get into the hospitality Advertiser Info industry, says franchise sales manager David Bernard. ‘It also has The Coffee Guy the bonus of being run by Retail 10F Morningside Drive Food Group - one of Australasia’s Morningside, Auckland 1025 most experienced franchisors. We www.thecoffeeguy.co.nz have a team of local experts to help Contact franchisees every step of the way David Bernard and franchisees like Michael happy P 0-9-973 4821 M 021 331 243 to share their experiences. To learn david.bernard@rfg.com.au more, give me a call today.’

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ASB4404/FM

As you’d expect BurgerFuel have amazing taste in banks. You don’t get anywhere by just doing the same thing as everyone else. So in the spirit of Kiwi ingenuity BurgerFuel said ‘no’ to serving up the standard burger and instead created something a whole lot fresher. Their signature gourmet burgers are built fresh to order, loaded with the most natural, wholesome ingredients available, and served up in an atmosphere as charged as their food.

They liked our innovative approach and how we got right in and did everything we could to understand their business. They were also into our banking technology like our unique 7-day settlement which puts the money from electronic transactions into their account the same day, even weekends and public holidays.

We’d say it’s no coincidence that their business is still growing. Their drive to find new ways of doing everything better means ASB is now BurgerFuel’s preferred supplier of finance and banking services.

If your banking relationship is getting a little stale or doesn’t satisfy you like it used to, why not do what BurgerFuel did and contact us for a taste of banking the better way.

“In a business like ours where we are constantly innovating, it’s important to work with a banking partner that ‘gets us’. At BurgerFuel we place great importance on quality and fantastic customer service, and we see the same in ASB.” Craig Notman BurgerFuel Australasia, General Manager. Find out how ASB can help your business: Glenn Tasker 09 337 2498 021 243 5660 Glenn.Tasker@asb.co.nz

asb.co.nz/businesstools

ASB4404 Client testimonial ad_v9B.indd 1

ASB Bank Limited

14/03/14 6:08 PM


Franchise Opportunity: Food & Beverage

would you like

A LATTE with that?

New franchisees trade the corporate life for being their own boss with Robert Harris Coffee Roasters

Steve and Korina Verkley know all about the arts of up-selling, cross-selling, customer service and creating retail that sparkles. Korina has extensive customer service experience, while Steve’s career has included senior roles at BP Oil New Zealand and McDonald’s Restaurants. In those companies, great quality and excellent service are the foundations of their respective success, which makes the Verkleys ideally suited to their new challenge as Robert Harris Coffee Roasters franchisees in the group’s newest café at Te Rapa, Hamilton. ‘Korina and I love the challenge of building something from scratch and being our own bosses,’ says Steve. ‘We wanted to use all our experience in our very own café but with the assistance and backup of a good franchise group. We chose Robert Harris as they understood what we wanted to achieve and the brand is a significant player in the local coffee market – it’s known as a haven for thirsty and hungry Kiwis.’ After meeting the Robert Harris team, the couple were convinced that it was a perfect fit for them and started searching for a good site within a short commute from their home in central Hamilton. It was timely that Rod de Lisle, the business development manager for Robert Harris, had recently been contacted by the landlord of an independent café in Te Rapa that was struggling. ‘The café owners were running the café remotely from Auckland and it was going downhill fast despite an expensive fit-out and good road position,’ says Rod. ‘We’ve seen these situations before, and know that the combination of the Robert Harris system with committed local franchisees can make a real difference.’

Steve & Korina Verkley: ‘It’s a great group to be part of’

both the North and South Islands. ‘We’d especially welcome corporate managers looking for a change,’ says Rod. ‘Many New Zealanders have great experience in the business world but lack the freedom and sense of success that their own business can provide. Having the backup of Advertiser Info a leading franchise means that you don’t need café experience – just Robert Harris Coffee Roasters a great attitude and an outgoing PO Box 58 095, Botany, nature.’ Auckland, 2141 And corporate escapee Steve has the last word. ‘I would highly recommend Robert Harris to others who want to do the same. It’s a great group to be part of, and a great business. I mean, who doesn’t love coffee?’

www.robertharriscafé.co.nz Contact

Rod de Lisle P 0-9-274 2643 M 0274 518 435 rodd@robertharriscafé.co.nz

The Foundations Of Success After securing the site, Rod engaged the services of the Robert Harris design and build consultants who worked with Steve and Korina to combine the best of the existing café with the unique Robert Harris look. This process included adding a deck, re-painting the café, building an internal wall and installing windows into the courtyard walls to let in more light. With the addition of new branded signage, coffee equipment and a decent clean, the process was complete. While the work was going on, Steve and Korina completed the Robert Harris training process in-store with Barney and Rose Hyde at Robert Harris Palmerston North. That really set them up for success,’ Rod says. ‘Then, with the assistance of their support manager, Eman Yu, they reopened the café in August 2013. A VIP evening showing off the new Robert Harris offering to local business owners was just the start of an intensive local marketing campaign to attract new customers.’ Did it pay off? ‘Well, the café is already doing double what the previous owners recorded, and it is fast becoming a favourite with many locals and travellers – proof of the value the Robert Harris brand can bring,’ Steve says proudly.

New Life, New Future The Verkleys share the running of their new business: Steve works fulltime managing operations while Korina balances her local store marketing duties with looking after two growing boys. ‘In time, Korina will join me full-time and we would love to open additional sites in and around the great city of Hamilton, where Robert Harris – the man himself – opened his first coffee shop,’ Steve says. Do you see yourself doing what Steve and Korina did? Robert Harris is keen to appoint new franchisees for new and conversion sites in

Find more info at franchise.co.nz - Search: Robert Harris Coffee Roasters

45


“I loved the skin treatment results so much, I bought my own Caci clinic.” Lena - Caci clinic owner

Over the last 20 years Caci has become a leading business within the beauty industry. Now is your opportunity to become part of this aspirational New Zealand brand. What can you expect as a Caci franchisee? • • • • •

Great brand awareness Marketing and business building support Group buying incentives Higher than industry average growth rates Comprehensive training

There are opportunities available nationwide.

If you have a passion for the beauty industry and are looking to own your own clinic with an established and professional brand, we would like to hear from you.

No experience within the beauty industry is necessary however sales skills and commitment to excellence is a must.

We are currently looking for franchisees in the following locations: • • • • •

Auckland Tauranga Wellington Gisborne Hamilton

• • • • •

Blenheim Queenstown Dunedin Christchurch Timaru

Other areas are available please contact us to enquire. Call today to discuss the potential of owning a franchise with NZ’s industry leading beauty brand. Lisa

Travis

|

09

847

9220

|

027

298

6077

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lisa.travis@fabgroup.co.nz

|

caci.co.nz


Franchise Opportunity: Home Services

changing careers to

CHANGE YOUR LIFE V.I.P. franchisees are making the most of their opportunities Richard Stewart: ‘This is a very profitable, tidy business’

winning franchisees with V.I.P. – and the rest is history.’

How does a workaholic learn to relax? ‘Simple!’ says Richard Stewart of Morrinsville: ‘Buy a V.I.P. business…’ Richard spent 26 years working for Fonterra where he frequently worked 12-16 hour shifts. ‘When I was offered redundancy three years ago, I thought it was a good opportunity to try something new.’ Richard had always liked the idea of working outside so made enquiries of various franchises offering lawn and garden care opportunities. ‘There were a number of options available in the Waikato,’ he says, ‘but by good luck V.I.P. had one local to me so, given V.I.P’s reputation. I jumped at it. ‘As well as spending time on the job with the outgoing franchisee, I had two weeks’ training from V.I.P. followed by a further two weeks with the master franchisee for my area. It was very thorough and worthwhile – a lawn may be a lawn, but there are all kinds of tricks you can learn from experienced professionals to keep your customers happy. I learned a lot about how to manage and grow my business, too. After so many years working for others it was a bit scary starting to work for myself, but V.I.P. were (and still are) very supportive and helpful when I needed it.’ The V.I.P. outdoor franchise allows Richard the flexibility to do all sorts of work, which ensures a steady stream of business all year round. ‘I started off with 60 lawns three years ago and have added another 15 clients since. Out of the main grass-growing season, which is very busy, I now have quite a few hedges and pruning jobs to do so this is a very profitable, tidy business. I thoroughly enjoy it and can do it all on my own apart from the books which my wife, Rachel, handles. I can work sitting down some of the time, too, as I have a ride-on mower which is very handy – particularly for the local school. ‘I’m kept busy for four solid days a week as a rule, but I tell you what – I’m out in the fresh air and it beats 16-hour shifts any day.’

Good Friends Give Good Advice Dawn and Godfrey van Boom, who arrived from South Africa in 2005, are V.I.P. indoor franchisees, which includes all types of home and window cleaning. ‘Godfrey was a food technologist, while I was a teacher but didn’t want to work while the children were young. A few years later, though, we met our friends Colin and Serena Davids, who are Westpac award-

Godfrey and Dawn van Boom: ‘We’re not wondering now – V.I.P. really works!’ Find more info at franchise.co.nz - Search: V.I.P. Home Services

Find more info at franchise.co.nz - Search: V.I.P. Home Services

VIP 47.indd 1

‘I’d always had a hankering to start my own business,’ Godfrey admits, ‘and I could see there was a big future in the cleaning industry. Talking to Colin and Serena, we were hugely impressed with what V.I.P. offered in terms of support, guaranteed income and work. It seemed a much better way into business than trying to do everything yourself. Colin and Serena gave us all the advice we needed to understand what the role actually involved, both in terms of day-to-day work and what you needed to do to keep customers happy and grow the business, so by the time we decided to join the franchise we were very well-prepared.’ In April 2012 the van Booms bought an existing franchisee’s business centred in Remuera in Auckland. ‘At first, we had one major commercial client who required cleaning seven days a week and just four others,’ Dawn smiles. ‘We intended to build it up gradually, but such is the strength and support of the V.I.P. system that we grew to ten clients within our first month. Since then, we’ve never looked back.’ Godfrey says that it’s the flexibility of the V.I.P. model which makes it so friendly to franchisees. ‘We can take on as much or as little extra work as we like, and as we gain more clients we can sell work on to another franchisee to reduce travelling time between jobs. That makes us more efficient and increases our earning power, as well as generating extra income. We also intend to expand a few years down the track, and V.I.P. allows us to employ people and take on bigger contracts. ‘With two expensive teenagers to raise, we did have concerns in the early days as to whether this would be a viable business. Well, we’re not wondering now – it’s a lot different from what we used to do in life, but it really works!’

Live How You Want To Live Estelle Logan, who is the national franchisor for V.I.P. with her husband John, says, ‘People like Richard and Rachel, and Dawn and Godfrey, are typical of V.I.P. franchisees. They have seized the opportunity and built an expanding business that suits how they want to live. ‘If you want to do the same, our flexible entry programme offers a variety of income levels with investment starting from $15,000 +gst and equipment. To make it even easier, Advertiser Info we will pay you during training and V.I.P. Home Services guarantee a minimum income during PO Box 276 186, Manukau, your induction period. ‘We have opportunities available throughout the country right now, so contact us today to find out more. A V.I.P. franchise could give you the future you want.’

2241 www.viphomeservices.co.nz Contact

Nationwide Enquiries P 0800 84 74 96 Estelle@viphomeservices.co.nz

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21/03/14 5:24 pm


Buying A Franchise: Support

questions to ask

ABOUT SUPPORT What support will you get as a franchisee? Lorraine Lord encourages you to find out

One of the benefits of buying a franchise is that you should receive ongoing guidance to help you get the best possible return for your efforts. That’s why it’s important to have good support from your franchisor, both from a distance and in your own area. So if you’re looking at an opportunity, what questions should you ask to make sure you’ll get the right support? Ask the franchisor: • Where is your franchise support office based? What does it consist of? How many people are employed by the franchisor? What do they do? How many are in direct support roles, rather than in administrative roles? 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. • Exactly what level of support can I expect? In what areas? 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? • 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 often would you visit me and for how long? What can I expect us to cover and achieve through your field visits?

How are the visits structured? Are they results-focussed? • What specific business planning tools and guidance can I expect throughout our relationship from start-up to exit? What would happen if I had operational or business problems that I was unable to solve? What help would I get? • What systems do you have in place to support key processes – eg, accounting, lead generation and management, benchmarking? How will I know how well I’m doing? Are comparisons of performance across key areas available to all franchisees? Is there help in analysing areas for improvement? This should be a key advantage of franchises over independent businesses (see page 54). Technology makes benchmarking easy and is part of most good franchise systems. • Is there any formal support system between franchisees? (eg. mentoring, a buddy system, franchise advisory council, intranet). Other franchisees can be a valuable source of help and support. • What topics are covered in the franchise manuals? What format are they in: paper, disc, online? How many pages? How regularly updated? • Do the manuals provide clear guidance and tools for local marketing? All franchises require the franchisee to be able to grow their business locally, so this is a critical area. Don’t be shy to ask these questions – support should be a major advantage of buying a franchise, so you want to be certain you will get what you need. After all, it’s one of the reasons why franchisees pay ongoing fees.

Ray Lindstrom

About the Author Lorraine Lord joined her first franchise in 1975 and has worked in both field support and training management roles.

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MEGA Franchise Consultants 48

Franchise New Zealand Volume 23 Issue 01 Autumn 2014


Franchise Opportunity: Food & Beverage

growing market for

SUSHI ON THE GO

Mobile food franchise Mr Woo Sushi finds extra markets boost sales

When Adam Parore launched Mr Woo Sushi in the spring of 2013, he didn’t reckon on the success of the mobile food franchise interfering with his wedding plans. ‘The interest in the new franchise means my honeymoon’s been put back to mid-year,’ he grins. Over the last few years, Adam, who combined his cricketing fame with a career in the financial markets, has built, bought and developed businesses that have had two factors in common – franchising and success. ‘I put a great deal of time into researching new opportunities,’ he says. ‘I knew the takeaway food sector in New Zealand was valued at more than $1.5 billion, but where was the concept that would offer something truly different – and truly profitable – for franchisees?’ Adam spent two years seeking a food business with the right ingredients before he discovered Mr Woo Sushi. ‘The more I investigated, the more the positives stacked up,’ he says. Mr Woo Sushi is a simple concept which delivers healthy sushi and other treats such as bento boxes and salads direct to workplaces via speciallyequipped mobile units, similar to coffee vans. ‘Unlike coffee vans, though, Mr Woo is a lot simpler for the operator,’ Adam suggests. ‘All the food is prepared in a central kitchen by our highly-qualified sushi chef, and franchisees don’t have to make drinks so they can serve people faster.’

Five Reasons Sushi Makes Sense And Adam uncovered some underlying trends which made him even more confident. ‘First, statistics show people are increasingly buying lunch out. Secondly, people are time-poor, especially at work, so having lunch come to you is a popular and efficient choice. Thirdly, businesses are increasingly moving away from central business districts to industrial parks that offer lower rent, better access and parking. Food and beverage options in those places tend to be limited, and you only need to look at the popularity of the mobile coffee vans to see proof of that. Fourthly, there is a general move away from traditional fast food to healthier, fresher options. Finally, not only does sushi fulfil all of those criteria, Kiwis love it – in New Zealand, sushi has one of the highest rates of penetration outside Japan.’

Adam knows from long experience that there’s only one way to learn what a business really involves, so he slipped on a Mr Woo uniform shirt and got behind the wheel himself to take sushi to the workplaces of Manukau in South Auckland. ‘Getting stuck in, rolling up your sleeves and walking the talk is the best way of finding out what your customers want. You learn far more about how to improve a system by working it yourself.’ And if his customers were surprised to find a world-class cricketer delivering their healthy lunches, it didn’t put them off. ‘The business built up nicely, and that first area has now been successfully franchised with a second area, East Tamaki, being added late last year,’ says Adam.

Potential ‘Even Greater Than Expected’ In fact, the potential has proved even greater than expected. ‘I’d always known there was extra money to be made from weekend events and catering for work functions, but I was surprised how popular sushi is at school – not just with staff but with pupils, too. Now we’re working on a specific schools menu for kids that parents will be able to order online the night before. All the franchisee has to do is collect the items from our kitchen the next morning and deliver them. Judging by the response, this could add substantial volume to their business as many schools have from four to eight hundred pupils.’ Another option now being trialled in Manukau is a second, afternoon run. ‘We expected to serve the lunchtime market, but we’ve discovered there’s demand later in the day, too, from stressed parents keen to take home healthy dinners after a late day at the office. I didn’t expect that but it makes a lot of sense – whenever I pick up my kids from school they usually greet me with, “Hey, Dad, what’s for tea?” They like sushi so if I have it in the car ready, maybe they’ll start saying, “Hi, Dad, how are you?”’

Low Risk, High Reward A Mr Woo Sushi mobile business is available for just $69,000 +gst with a variety of funding options possible. The investment includes a fully-fitted van and four weeks’ dedicated training. A revenue guarantee is in place for the first two weeks of business, and from his own time on the road Adam suggests a gross income of between $70,000 and $100,000 is easily achievable. ‘Mr Woo Sushi is very much a low-risk, high-reward opportunity for someone to get into a fast-growing sector of the food industry,’ he says. ‘We have a big marketing drive coming up so if you’d like to get into a successful concept early, and have the energy and enthusiasm to make it work, don’t hold back – call me today.’ Advertiser Info Mr Woo Sushi PO Box 47 818, Ponsonby, Auckland www.mrwoosushi.co.nz

Mr Woo Sushi franchisees deliver sushi, bento boxes and salads direct to the workplace and beyond

Find more info at franchise.co.nz - Search: Mr Woo Sushi

Contact

Adam Parore P 021 781 250 F 0-9-523 0355 adam@sba.co.nz

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If you’re serious about business, United Franchise Systems offer five well-known business opportunities loved by Kiwis across New Zealand. Choose one that suits your financial reach, your business goals and your lifestyle ambitions. Get the ball in play today: contact Murray Belcher 021 483 500 murray.belcher@ufsltd.co.nz

New Zealand’s largest garden centre chain established 1958

New generation of European inspired garden centre, includes a licensed café

Kiwis' most popular buffet restaurant

Boutique café and in-house roastery

Stylish and contemporary garden centre cafés

established 1989

established 1992

established 1958

Opportunities range from $150,000 upwards


Franchise Opportunity: Home & Building

HRV Ventilation franchisees have helped over 140,000 customers transform their lives through creating warmer, drier, healthier homes

big opportunity to make

BIG IMPROVEMENTS Buying an existing HRV Ventilation business offers a rare chance to join a well-known brand improving Kiwi homes

HRV is one of the most successful franchise networks in NZ. Founded in 2003 to create and install ventilation and heat exchange systems in New Zealand homes, the company has helped over 140,000 customers transform their living conditions. HRV’s marketleading products are often called a ‘must’ for any Kiwi household that experiences condensation or health issues such as asthma and allergies associated with New Zealand’s damp climate. ‘We frequently receive hand-written letters from people saying they can’t believe the change HRV has made to their lives,’ says Robert Bell, the company’s CFO. It’s that sort of reach and reputation – along with a marketing spend of several million dollars per annum – that has helped HRV achieve a massive 90 percent brand recognition among Kiwis. Now some rare opportunities have arisen for new franchisees to join the established HRV Ventilation network. ‘After 10 years, some of our original franchisees are ready to retire or move on to their next challenge,’ Robert explains. ‘As you can imagine, with the number of territories limited to 20 nationwide, these businesses do not come up for sale very often. Right now, though, we have a small number of regional locations available with proven revenues of between $1m and $4 million per annum, and strong underlying established income via the filter servicing business. ‘They offer the chance for mature, energetic business people to move into an existing business with established staff and drive it to a whole new level.’

More Investment, More Growth In recent years, new investment and management have taken the already successful HRV franchise to a new level. ‘Systemwide turnover is now over $65 million,’ says Robert. ‘We enjoy substantial marketing spend, a proven and comprehensive franchise support programme and have improved internal processes and invested heavily in a new CRM system that provides nearly one million homeowner contacts nationwide.’ And HRV has expanded its brand with the creation of new offerings such as HRV Water (see page 19), which will increase customer awareness even further. ‘Our new slogan is “HRV – for the world’s purest INvironments”,’ says Robert. ‘INvironments is a trademarked Robert Bell: ‘The HRV business model has been developed over many years and produces outstanding results’ Find more info at franchise.co.nz - Search: HRV Ventilation

HRV Ventilation 51.indd 1

phrase we’ve developed to reflect our commitment to improving Kiwi homes in all sorts of ways.’ ‘We’ve also been working on customer education. Increasingly, homeowners understand that a warmer and drier home is a healthier home. Using our buying power and expertise, HRV Ventilation can deliver exactly that to create safer environments for families. Our ventilation and heat exchange systems have the highest airflow available and our smart control systems and innovative filtration are unique in the world. ‘Depending on the size of house, systems can range from $3,500 to $10,000, and franchisees can offer customers finance through Q Card (a division of Fisher & Paykel Finance). That’s why the HRV Ventilation franchise works in all areas with all demographics.’

Proven Selling System Is The Key The HRV business model has been developed over many years and Robert says it produces outstanding results. ‘Each franchisee employs their own sales team using our proven selling system, and it is so effective that franchisees can select staff who match the company’s culture, drive and motivation, rather than on the basis of their sales experience.’ HRV uses a mix of door-to-door canvassing, direct telemarketing, advertising, sponsorships, referrals, home shows and similar events to generate leads, with most activity being managed at franchisee level. Franchisees also co-ordinate the ordering and installation process either through staff or contractors. ‘The new franchisees need to know how to attract and manage highlymotivated people. They must also be ethical operators with strong standards of compliance to the HRV systems. We provide full training in all the HRV products, processes and systems but, as with most franchises, your ultimate success depends on you – the more you put into your HRV business, the more you will get out of it.’

From Auckland To Southland HRV is looking for incoming franchisees to take over existing franchised or company-owned territories in Auckland, Manawatu, Hawkes Bay, Nelson/Marlborough and Otago/Southland. The investment varies according to area, but will be around $400,000 in some areas. ‘We may also be happy to assist with some form of vendor financing for the right people,’ suggests Robert. Advertiser Info ‘If you are interested, I suggest you contact me quickly,’ he invites. ‘These are rare opportunities to promote and sell NZ’s leading ventilation system and a full range of heating & cooling solutions as used by thousands of happy customers. HRV is still growing so be a part of it – call me now.’

HRV Ventilation PO Box 104 068, Lincoln North, Auckland 0654 www.hrv.co.nz Contact

Robert Bell P 0800 HRV 123 P 0-9-826 8210 M 0272 392 750 robertb@hrv.co.nz

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Franchise New Zealand Volume 23 Issue 01 Autumn 2014


Franchise Opportunity: Food & Beverage

café franchise

KEEPS GETTING BETTER Columbus Coffee franchisee stays ahead of the trends to maximise returns

Jayson Hayde has a long pedigree in the food industry and says that the one constant is change. ‘Tastes change, eating habits change, ingredients change and the economy changes, too,’ he points out. ‘A good franchise will both lead and respond to such changes, and that’s what Columbus Coffee has done. When I first became a Columbus franchisee in 2007, it was a 23-outlet chain of traditional cafés with a strong emphasis on first-class coffee. Today, there are over 60 outlets and a lot more focus on food.’ Jayson says he ‘grew up in the kitchens of McDonalds’, as his family owned eight outlets across Auckland at one time. ‘When that era came to an end, my wife Adriana and I were wondering what to do when we found Columbus Coffee was opening a store at Smales Farm on Auckland’s North Shore. I was already a regular at Columbus, and thought the site on a new office park just outside the Takapuna restaurant/café zone had real potential – especially with 5000 workers on site all day.’ The Haydes’ café opened in 2007 and was soon one of the franchise network’s leading stores. Given Jayson’s experience, it also played a major part in the Columbus training and development programme, helping the franchisor train new staff and testing new products and systems.

Healthy Food Builds Sales So what has really changed over the last seven years? ‘A great deal,’ Jayson responds. ‘Every Columbus Coffee café has its own chefs so the food is always freshly-made. But while we were famous for our coffee, the food side wasn’t so well-known, so there’s been a lot more emphasis on that recently to increase customer numbers and average order values. ‘And the food itself has changed. As the media keep reminding us, we have an obesity problem in this country and people are becoming more aware of what they eat. Columbus saw this as an opportunity for us to leap on board and do something meaningful, so they got together with the highly-successful Healthy Food Guide publication to create a whole new range of menu items as well as make our existing items healthier and give customers a greater choice. ‘Columbus has made a lot of subtle improvements so, for example, while our menus still include many tried-and-tested favourites, the ingredients have changed. As a result, we now offer low calorie, dairy-free, glutenfree, low sodium, high fibre and vegetarian options. The range changes throughout the year to use what’s in season, and the products aren’t just good for you – they are both delicious and nutritious, while retaining the all-important margins for franchisees. As we deliver more choice, customers are returning more often in the knowledge there will be fresh new offerings every time.’

Maximising Potential Promoting these improvements has meant more changes, with revised branding, new uniforms, upgraded fit-outs and new point of sale Find more info at franchise.co.nz - Search: Columbus Coffee

Columbus 53.indd 1

Jayson Hayde: ‘Customers are returning more often in the knowledge there will be fresh new offerings every time’

throughout the franchise. Jayson is a fan of continuous improvement, although he emphasises that any change must produce real results. ‘We’re a bit of a flagship store for Columbus: we support any new initiative that builds our business and we are very quick to adopt new opportunities, but we do scrutinise things and ask the hard questions sometimes,’ he says. ‘That’s how franchising works and how we all go on getting better.’ Another big change that Jayson and Columbus Coffee have benefited from is, ironically, the recession. ‘I call it the “trade-down” effect,’ Jayson explains. ‘We are seeing far more people on a regular basis than previously. They are not going out to dinner so often, because they correctly perceive having breakfast or lunch with us is much more affordable. It’s all about maximising the potential of your location.’ Of course, the ultimate measure of success is customer reaction, so Jayson spends a great deal of time talking to his customers. ‘Find out what they want and what they have enjoyed and you’ll quickly build a picture,’ he says. ‘By doing that, and changing with the market, we’ve continued to grow.’

Share Your Ambition Opening your own Columbus Coffee requires an investment of between $250,000 and $350,000 +gst, while a Columbus Coffee at Mitre 10 MEGA can be funded for $200,000 or even less. ‘Columbus has enjoyed unprecedented growth in recent years, as well as a significant number of awards for both the franchise system and its franchisees,’ says Graeme Tait, managing director of Columbus. ‘Our intention is to be the premium franchise café brand in New Zealand. If you’d like to be a part of that and share Jayson’s appetite for continuous improvement, give us a call.’

Advertiser Info Columbus Coffee PO Box 911 030, Victoria Street West, Auckland 1142 www.columbuscoffee.co.nz Contact

Graeme Tait Managing Director, CCNZ Ltd P 0-9-520 1044 M +64 21 988345 graeme@columbuscoffee.co.nz

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Food franchises are commonly signified as a ‘high margin’ style of business. However, while margins may be high (often 60 to 70 percent), the transaction value is usually low – say, $5 to $20. This means that for a business to be successful, it needs to generate sufficient volumes to cover the fixed costs such as labour and occupancy. As Philip Morrison points out in his article on working capital (page 62), these costs vary significantly according to the type of business, the time of day and even seasonality. Consequently, a new food franchisee is faced with learning not just the operational aspects of the business but also the demands of managing the staffing roster, the products and ingredients, menu quality and customer satisfaction while at the same time managing cashflow and developing profitability. The most crucial time for any new business is the first six to nine months. Our research indicates that while businesses which fail generally do so in their third or fourth year, in most cases the performance issues can be traced back to the first six months. This needn’t be the case if the business owners have a clear understanding of the targets and timelines they need to achieve in order to build a sustainable venture that will deliver an acceptable return on investment. Unfortunately, while new franchisees may receive comprehensive training on how to operate their new business, they don’t always get the same understanding of the key information they need to manage it. This article looks at the crucial management components to ensure viability in a food business. These can be summarised as follows:

• Return on investment • Breakeven • Spool-up rate

• Sales drivers • Margins • Expenses and productivity

Return On Investment Most franchisees have a reasonable expectation that the franchise investment will initially provide them a wage commensurate to the hours they work in the business and then, over time, a fair return on their investment. Many franchises are granted on the basis of a 5-year term plus one or more renewal periods of 5 years each. Because renewal is not a certainty, and other issues such as lease terms and re-fit costs may need to be considered, as a simple rule we suggest that franchisees should look to pay down the related business debt in the first term of the franchise. In order to accomplish this debt repayment, and additionally to redeem the owner’s equity, the business would need to return an average Return On Investment (ROI) of 30 percent over the first 5 years. The rationale behind this is that if you deduct the average company tax of 30 percent, the net ROI is 21 percent. 21 multiplied by 5 years equals 105 percent – sufficient to repay the initial capital investment, whether borrowed or provided by equity. However, in calculating this figure, it is important to factor in the true and full cost of the venture – in other words, the total funding requirements for the franchisee. As a guide, this could include: • Franchise fee • Training cost • Legals and accounting fees • Lending set-up costs

• • • •

Fit-out Equipment and furniture IT set up Initial marketing spend

Only once these costs are known can the initial working capital provisions be established. As Philip has commented, this reserve is often underestimated, causing cash flow pressures and management stress in the early days of the business. In these circumstances, it is not uncommon

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Franchise New Zealand Volume 23 Issue 01 Autumn 2014


to see franchisees make myopic decisions such as reducing labour and advertising which often exacerbate the situation, placing owners under even more strain as they have to work longer and longer hours in the business.

The two major drivers of sales growth are customer count and average yield (how much each customer spends). Using the breakeven formula, sales targets can be refined to calculate monthly, weekly and, in some cases, daily targets for customer count and average yield growth.

Effectively calculating working capital for a new venture involves:

If the franchisor has benchmarked these figures across the group (and every good franchise should), franchisees should have a clear picture of what is possible and therefore be able to set minimum targets for themselves, their managers and their staff to achieve. With these targets in place, franchises can better align staff effort with well-structured incentive programmes rewarding the correct behaviours and outcomes.

• Understanding what financial obligation the franchisees will depend on the business to meet: servicing business loans, lifestyle, personal debt. • The sales breakeven point. • Your model’s ‘spool-up’ rate.

Breakeven The breakeven formula is one of the most powerful management tools for any business. Unfortunately, in my experience, the majority of franchisees (and even many franchise support personnel) often lack a real understanding of the process and its many applications. While franchisees can generally tell you how much trading surplus they require to meet all their obligations, they usually struggle to then translate that number into business targets. The formula for breakeven is:

Fixed Costs = Breakeven Sales Contribution Margin %

From a customer point of view, loyalty or VIP programmes can be a powerful tool: our research shows that loyalty programme customers generally spend somewhere in the vicinity of a 30 percent premium above the average transaction yield. Building a loyalty club base can therefore make a strong contribution to achieving the original targets in a shorter time frame.

Margins With most food businesses requiring a high-margin model, any margin leakage can quickly unravel the impact of sales growth and cause significant problems. Margin is the outcome of a range of factors which mainly include:

Fixed Costs are all the costs that must be met every month – rent, labour, insurance, interest, etc. but not including variable costs such as Cost Of Goods (COG) and percentage-based royalty fees.

• Product/menu mix • Wastage/spoilage • Shrinkage/theft

Contribution Margin is, in simple terms, the gross margin percentage on sales less the percentage-based royalty and marketing fees.

Any menu will contain a range of products and meal options with varying margin returns. Margin distortion can occur when the balance of the product mix is skewed to the lower margin options, or when lower-margin products outsell higher-return products to an unacceptable degree. This can be further compounded by discounting the offers in a mistaken strategy of trying to improve cash flow, rather than addressing the distortion: eg, by changing the mix, better promotion of higher margin products or training staff in add-on sales.

Breakeven can also be very helpful in testing proposed strategies and tactics such as discounting or increasing the staff roster. For example, if the fixed costs in a given period are $1000 and the contribution margin is 42%, the breakeven sales required are $1000 ÷ 42% = $2380.95. But if discounting reduces the margin to 40%, the sales required go up to $2500.00. Will discounting bring in more than the difference? Alternatively, if you add more staff you will increase the fixed costs from, say $1000 to $1100. At 42% margin, that means that increasing staffing level has to generate an additional $238.09 over the original figure of $2380.95 to achieve break-even ($1100 ÷ 42% = $2619.04). The breakeven formula can also be used to calculate a specific range of targets in order to release the profit sought by the franchisee – the profit required to meet ROI targets and the franchisee’s personal obligations. Simply add the desired profit to fixed costs before dividing by the contribution margin.

Fixed Costs + Sought Profit = Target Sales Contribution Margin % Calculating a sales target based on desired franchisee return is a powerful tool for franchisors to help franchisees manage their businesses better and achieve higher levels of satisfaction. That’s why breakeven is proving to be one of the most popular sessions in the Franchise Field Financial Management Training Programme (see page 16).

Spool-up Rate Once you have worked out the breakeven sales target, the next step is to calculate the spool-up rate - in other words, how long will the business take to build sufficient volumes to achieve first the breakeven and then the profit target? The slower the spool-up time, the more working capital the business will require to fund its operations. Once the targets are achieved, however, the business should be soundly-based; the same calculations can be used to assess any new initiatives or expenditure and keep it on track.

Sales Drivers The first priority of any business is to generate sales and reach the breakeven point in the shortest possible time. Once this level is achieved, the next phase is continuing to grow sales to reach the ROI objectives. Sales generation is a combination of the following factors: a) b) c) d) e)

Customer count Average yield Customer satisfaction Repeat frequency Upselling

Find more info at franchise.co.nz

• Discounting • Add-on sales

While most operations can and do measure sales regularly, they find measuring the margin result more problematic. A true margin result should include wastage and shrinkage levels, and can only be obtained if regular (monthly) stocktakes are undertaken. However, this is not a discipline carried out by many franchisees – most rely only on an annual stocktake to complete the end-of-year accounts. It is worth doing, however, particularly in a new (or newly-bought) business when the new franchisee is first trying to measure their own performance against the benchmarks. On an ongoing basis, margin leakage can be an incipient factor that left unchecked could significantly reduce profitability.

Expenses & Productivity As a general rule, apart from Cost of Goods the two major expenses in a food operation are occupancy and labour costs. In some cases, these two expenses can represent 40 to 50 percent of sales. In a business which operates on 70 percent margins, after allowance for franchise royalties and marketing fees, that would only leave 10 to 20 percent of sales to meet all other expenses plus profit. Given this type of scenario, owners need to work to maintain high volumes and low costs as well as maintaining margins. To further highlight these conditions, it is often helpful to simplify analysis by breaking down the actual distribution of each dollar of sale. For example, a business’s performance could be represented as follows: Sales

$700,000

For each dollar: COG Margin

35 cents 65 cents

Margin needs to cover: Occupancy 15 cents 25 cents Labour Franchise fees 8 cents Other costs 12 cents Profit 5 cents per dollar, or $35,000 on sales of $700,000. We’ve already looked at sales and margins, so let’s look at the third largest factor that a franchisee needs to control: productivity. This is probably one of the biggest issues facing most businesses in today’s environment.

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Financial Matters

Managing staff costs can be as simple as measuring three ratios: 1. Productivity 2. Unit cost 3. Cost per hour 1. Productivity is the measure of labour efficiency. What return am I getting for the cost I am paying? Most businesses try to relate this measure back to volume or activity; however, we actually pay our staff not only to generate sales but to do so at a target margin. In essence, we want our staff to: • make the sale • upsell the sales value • generate the order quickly • get the order right first time without wasting product. The productivity ratio is calculated as:

Gross Margin Dollars = Productivity ratio Full Labour Costs Taking the figures in the example above (which have already been reduced down to a per dollar rate), the margin of 65 cents is divided by the labour costs of 25 cents to give a productivity ratio of 2.6. Each business is slightly different, but the average business seems to produce a result of between 2 and 3. Around 4 is generally peak productivity, while fewer than 2 can indicate efficiency issues. Does it really matter? Well, yes – a recent project we carried out showed that every 0.1 movement in this ratio equated to a profit movement of $10,000. 2. Unit Cost is the average cost of each rostered labour hour. The formula is:

Full Labour Costs = Unit Labour Costs Total Rostered Hours This is a good way to test if the labour rate is increasing or decreasing. A recent trend we have witnessed is that some businesses are effectively

56

reducing the unit costs by employing, for example, more junior staff. They may be paying their staff less, but often productivity suffers as a result. So how do you tell? This can be tested by the next ratio. 3. Cost Per Hour is the average hourly cost of the roster. The formula is:

Full Labour Costs = Average Hourly Labour Cost Total Trading hours This ratio allows you to test whether the week-to-week roster is costing more or less. In the previous example, where more junior staff were engaged, you would expect to see the average hourly rate reduce. However, often the reverse is true and you see an increase in the hourly rate as more junior hours are required to achieve the same level of activity, or junior staff are less effective at selling. By working out these ratios, franchisees can determine the optimum staffing levels and mix for their business.

Summary Food franchises, perhaps more than any other type of business, require owners to pay close attention to the everyday details of sales, margins and costs. By using the simple tools outlined above to set clear and simple targets and measure results, franchisees can extract the full value from their investment and stay on top of their businesses as they grow. For franchisors, there is considerable value in assisting franchisees to understand these issues and in providing them with the information About the Author necessary to benchmark their own David Campbell is director of performance against others in the Avatar Consulting and specialises system. By doing so, franchisees will in practical financial education be more profitable, more in control for business owners. He will be and more satisfied. They will also delivering more detail on the above be in a better position to contribute areas in the one-day Financial more to the system and their fellow Intelligence Workout to be held in Auckland on 28 April 2014 – see franchisees, and to build brand value page 16 for more details. for the good of all concerned.

Franchise New Zealand Volume 23 Issue 01 Autumn 2014


Franchise Opportunity: Business & Commercial

SHOW AND TELL

pays off for accounting franchise High street locations generate a regular flow of new business for SBA franchisees

If you are a small business owner in New Zealand, where on earth do you go to ensure you stay on top of your business finances – and keep on the right side of the taxman? In recent years, the answer for many people has been Small Business Accounting (SBA), whose outlets have popped up on high streets around the country. Today, the network has 40 franchised outlets and around 20,000 customers, with more of both to come.

No Qualifications Required SBA franchisees come from a wide variety of backgrounds. Although some have accounting qualifications, this isn’t essential. ‘The SBA systems have been carefully developed over time and if you have book-keeping, administration, small business or financial experience, you probably have all the skills you need,’ says Adam. ‘In addition, we have an internet-based support and advice forum which allows franchisees to share questions and experiences on a daily basis.’

The walk-in shops are friendly and approachable, as SBA franchisee Roopa Patel explains. ‘People spot us Roopa Patel (right) with accountant Heather Seong when they go to the bank or outside the easily-seen SBA office in Ellerslie go shopping, walk in to make enquiries and end up as ‘That’s another great benefit regular clients. It is so much of the franchise,’ says Roopa. ‘I have a lot of accounting experience, but simpler than having to make an appointment with an accountant in an I wouldn’t claim to have instant answers to every question. With SBA, office somewhere, and far less forbidding, too.’ though, we are not just one small high street shop – we have considerable With a long and successful career in business, Roopa joined SBA when experience across the franchise in all sorts of industries and that can be very valuable to our clients. In addition, as franchisees we can assist each she was made redundant during the downturn after a long corporate other and grow our businesses by utilising all our collective strengths.’ career as a financial manager with some major names. ‘Right from the start, SBA stood out as a very attractive option for me,’ she says. ‘I knew And Roopa also enjoys the enthusiastic support of her family. ‘My I could help small businesses and landlords, and I liked the people – husband, Sunil looks after all my IT and my daughter Pearl works with me franchisor Adam Parore is a fantastic guy, and he and franchise manager on the admin side to help her through her studies as an architect. But Angelina McCraith make a splendid team.’ even with their support it would be very difficult to build up this kind of business so quickly without a solid, dependable model behind you, and Roopa initially went into partnership with another franchisee at SBA that’s what SBA provides. A good brand, backed by good advertising and Mount Roskill, but when the relatively new Ellerslie outlet came on the good operating systems. Of course I’ve also put a great deal of effort into market she decided to seize the opportunity. ‘At Ellerslie I only had 12 building up my clientele and making sure they get what they need, but clients to start with, but that soon changed. In just over 2 years I’ve built if you’re prepared to work hard and stay up with the constantly-shifting that up to over 250, and the best part is that no less than 80 percent of requirements, an SBA franchise is a really good business.’ those are referrals through satisfied customers.’ The walk-in side of the business has received another boost recently with the opening of a new Opportunities Nationwide market close by, generating more passers-by and more enquiries. Adam Parore says that the success of SBA’s convenient and low-cost Help People Focus On Business accounting model means there is still growing demand for the services franchisees offer. ‘Small businesses of all types are continuing to switch Adam Parore bought the franchise in 2007, the serial entrepreneur to SBA, meaning we have opportunities in cities and towns nationwide,’ and former Black Cap using his financial expertise to take the alreadyhe says. successful company to a new level. Franchisees and their customers benefitted from new leading-edge software and integration with Banklink Advertiser Info ‘It’s not an expensive business to get and Xero – then in their early stages. into – the investment is just $38,000 Small Business Accounting +GST, with an additional $15,000 ‘This approach has allowed us to develop really valuable support services PO Box 47 818, Ponsonby, for shop fit-out. In return, you get full Auckland for busy people who don’t want to get bogged down in book-work – they training in the SBA systems and help www.sba.co.nz just want to get on with what they are good at,’ says Adam. ‘SBA offers a with getting started, as well as access Contact variety of monthly accounting packages at very reasonable rates which Adam Parore to the whole SBA support network. ensure that customers stay on top of their business and never miss a P 0-9-378 0934 We want to hear from people like financial deadline. Knowing that SBA is looking after their interests F 0-9-523 0355 Roopa so if that’s you, call me today behind the scenes enables them to stop worrying and get on with adam@sba.co.nz to find out more.’ growing their business.’ Find more info at franchise.co.nz - Search: Small Business Accounting

Find more info at franchise.co.nz - Search: Small Business Accounting

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Franchise Opportunity: Automotive

selling a

PRODUCT OF LEGEND Snap-on Tools’ multi-awarded franchisee tells his story

Paul Woosnam still vividly remembers as a 16-year-old picking up a shiny pair of Snap-on Tools pliers among some old tools he’d bought. At the time, he had no inkling he was holding his future in his hands – a future that was to bring him to New Zealand, where he has won multiple awards as a Snap-on Tools franchisee. But first, Paul spent 19 years with the Debenhams retail chain in England where he worked his way up from the counter to head office, ultimately heading the company’s profit protection team charged with preventing internal and external fraud. It meant long periods away from his wife, Nikki, so they decided it was time to go on their OE – to Australia.

‘After travelling extensively, we decided to stay down under,’ Paul recalls. ‘But I didn’t fancy working for a company again. We had friends who were Snap-on franchisees and I remembered those pliers. We’d renovated a couple of houses in England and I’d abused those tools to death – only they didn’t die. It spoke volumes for the quality of the product so I investigated the Snap-on Tools franchise. The more I learned, the more I liked.’ Proven for over 90 years, Snap-on is one of the world’s first, most successful and simple franchise systems. Franchisees like Paul buy product at wholesale prices and on-sell at a mark-up to customers. There are no royalty payments and no advertising fees, just a small monthly fee for the brand, systems and franchisor support. The company also manages a competitive finance scheme to give franchisees the ability to offer their customers credit.

Making The Most Of The Opportunity Having chosen Snap-on, Paul and Nikki decided not to stay in Australia but move across the Tasman. ‘We’d been to New Zealand several times and really enjoyed the Christchurch area, especially the easy access to snowboarding and great mountain biking. Although this was just after September 2010, we could see Christchurch had huge potential from a business point of view. Having once gone through an earthquake in England, we weren’t put off so we signed up.’ Paul was impressed right from the start. ‘The training at the Snap-on University in Dallas, Texas, is the best I have ever experienced, and I’ve been to many, many training courses during my time at Debenhams,’ explains Paul. ‘Snap-on’s training is so thorough that, no matter what your background, it will equip you with a high level of selling skills, the ability to answer customer questions and to overcome any obstacles.’

Paul Woosnam: ‘The more I learned, the more I liked’ Find more info at franchise.co.nz - Search: Snap-on Tools

Training complete, and with the support of his sales development manager, Paul took to the road in his very own Snap-on mobile store, offering a huge range of top quality equipment to local garages and workshops. ‘I’d only been going a few weeks when the February 2011 earthquake hit.’ But although it was a terrible time, it didn’t mean a shaky start for Paul. ‘Having the roads in such a mess and being so hard on vehicles meant an increased need for tools to help repairs, so I was having huge weeks straight away. It’s not just about tools, either – Snap-on offers over 19,000 products including complex computer-based vehicle diagnostic systems. With the wide range of vehicle makes and models on the road in New Zealand, diagnostics have become a big part of my business.’ Paul works hard to make the most of the opportunities the franchise affords and has always put in the hours and the miles to make his business succeed. Usually at his desk by 5.30am preparing for the day ahead, Paul generally makes his first call at around 7. He returns home around 6pm to restock his mobile store, then works with Nikki on customer follow-ups. Besides generating a very healthy income for the couple, this approach has made Paul one of the top performers among more than 4200 Snap-on franchisees worldwide. In his first year he was awarded the title of 2011 Snap-on Tools Franchisee of the Year for both New Zealand and Australia, and was New Zealand Franchisee of the Year again in both 2012 and 2013.

Snap-on. Snap it up Snap-on recognises that securing access to funds to invest in a franchise can be a significant barrier to those who genuinely want to become part of the network, so they created an innovative finance programme which enables a new franchisee to get up and running for a minimum downpayment of $50,000. Snap-on Tools fund loans to cover new franchisees’ initial inventory, their fully-optioned custom-built vehicle and establishing their customer credit accounts. ‘We don’t charge royalties and don’t charge advertising fees,’ explains Steve Jones, Snap-on Tools’ national sales & marketing manager. ‘The result is that franchisees can get into their own business at an affordable level then pay it off as fast as they feel comfortable with. After that, it’s all theirs.’ Paul Woosnam says, ‘I love my business and get a real buzz from it. Snap-on Tools are products of legend – they even supply the toolkit that comes with the F-18 Super Hornet Advertiser Info jet fighter. If you’re interested in the Snap-on Tools opportunity and are PO Box 6077, Blacktown NSW 2148. Australia prepared to work at it, www.snapontools.com.au take the free Franchise Contact Discovery Tour on the Les Coppin Snap-on website. Then P 0800 762 766 maybe you’ll do what I les.coppin@snapon.com did – snap it up!’

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Franchise Management: Relationships

TOP TIPS

for franchising

Greg Nathan’s new book features plane trips, road accidents, nuns, bicycles and guitars, but above all it contains practcal advice for franchise leaders

A new book contains brief but thought-provoking tips on franchise leadership

Every couple of weeks or so, an email from Greg Nathan arrives in the Franchise New Zealand inbox containing his latest 2-Minute Tip. Greg is a former franchisee and franchisor who is also an internationally-respected psychologist. For over 20 years, he has been focusing his perceptive vision on the franchise sector and some years ago founded the Franchise Relationships Institute. Now he has compiled 79 of his most popular tips in a book designed to inspire those who work in the franchising sector to lead with clarity and integrity. Greg’s Tips are always interesting, relevant, thought-provoking and, often, ‘laugh out loud’ funny – my personal favourite, the tale of his irritation and subsequent embarrassment on a long plane trip, opens the book. Greg has a humorist’s eye for the absurdities of everyday life, a psychologist’s understanding of what creates such situations, and an expert’s knowledge of how they relate to franchising and the lessons to be learned.

While the diversions into plane trips, road accidents, nuns, bicycles and (frequently) guitars are amusing, the lessons they lead to are based upon the huge amount of research the Franchise Relationships Institute has conducted over the years, much of it in Australia and New Zealand, as well as a great deal of inter-disciplinary study. The result is a series of brief (500 words or so), memorable and, above all, valuable tips for everyone involved in the franchise sector. Titles include: What makes franchisees go berserk;

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Be cautious of the multi-unit love affair; Taking the pain from change; How to set goals that work; and The good decision checklist, as well as other, lessobvious topics such as Life lessons from a Las Vegas taxi driver and What dogs can teach us about leadership. Above all, the tips contain practical wisdom. ‘I’ve been in franchising for over 30 years and Greg’s Tips are the only thing I stop to read every time,’ says award-winning franchisor John O’Brien of Poolwerx. ‘They nearly always remind me of something important or give me a new angle of thinking.’ And former Franchise Council of Australia chairman Stephen Giles comments, ‘There is an analytical depth to each tip which is important in this era of superficial information.’ These days, Greg Nathan is much in demand at franchise and other conferences all around the world, but will be returning to New Zealand in July to speak at the Franchise Association conference in Queenstown. In the meantime, The About the Author Franchise Relationships Book of Tips costs A$34 and is available from Simon Lord is Editor of Franchise New Zealand and has worked in www.franchiserelationships.com. franchising since 1983. I recommend it highly.

Franchise New Zealand Volume 23 Issue 01 Autumn 2014


Franchise Opportunity: Retail

retailers offer a

TRIPLE WHAMMY

Three very different brands all have what it takes to stand out in a changing market

Online shopping has made life difficult for many retailers. That’s why any retail business that has thrived in the years after the GFC is worth a close look – and when it’s not just one brand but three, any serious entrepreneur really needs to sit up and take notice. Sporting goods specialist Frontrunner, high fashion shoe store Issimo, and streetwear chain Fridge@fridgefreezericebox have been created by Laurie Blyth, who has years of experience in both retail and franchising. ‘To succeed in retail these days, you need to find the right niche, stay flexible and be really responsive to the needs of your customers,’ says Laurie. ‘That’s why franchising is such a good business model: it enables you to put power in the hands of local owner/operators who really understand their local markets while creating an identity that has national recognition.’

Frontrunner Laurie’s first success story was Frontrunner which, true to his philosophy, started out specialising in running shoes but built on that base to offer a range of sporting goods. ‘Sport is about passion, energy and challenge so our franchise encourages it. All nine Frontrunner stores are free to choose the products that sell well in their specific area. For example, our Bush Inn store is run by a professional tennis coach who excels in rackets, while Queenstown caters to adventure tourists across two very different seasons; Ashburton does the AvantiPro bike system and there are many other such strategic adjustments Three very different retail in each store.’ opportunities: Frontrunner (top), Issimo (above), and Fridge@ Frontrunner currently has a fridgefreezericebox (below) mix of company-owned and franchised stores, but Laurie wants to move to a fullyfranchised model. ‘We have five company-owned stores with established cashflow and profitability available in a variety of locations and investment levels, and we’re also looking to open new stores around the country. New stores would require capital of $150$250,000. We offer a proven, profitable formula with full training and support, as well as unique buying and marketing strengths.’ And Laurie is looking for a master franchisee to grow Frontrunner throughout the North Island. ‘We have a store

Find more info at franchise.co.nz - Search: Frontrunner

in New Plymouth already, but the opportunity is there to establish new stores – or convert independent outlets – in many centres. If you have a retail background and a passion for sport, we’d love to talk to you.’

Issimo Issimo is a very different proposition: a high-end fashion shoe shop which first launched in Merivale in September 2012. The first franchised outlet opened in Queenstown six months later and the brand is now being franchised throughout New Zealand. ‘Shoe shopping is a very personal experience, and not something most women would want to do online,’ says Laurie. ‘But there’s not a lot of choice in New Zealand; most shoe stores carry much the same stuff, mostly of very average quality. To find something different, we started researching brands and suppliers in Italy, Spain, France, Portugal and North Africa. The result is that 70-80 percent of our product comes in from Europe and the quality is very good – as well as staple brands like Clarks and Timberland, we have access to exclusive European and other designs such as LK Bennett, Vivienne Westwood and Officine 904. In some cases we are the only supplier in the whole of Australasia – that offers franchisees huge advantages in marketing terms.’ The first Issimo franchisee is Paul Garvie, who has a lot of faith in the abilities of the franchise team to create profitable business opportunities, having been a Frontrunner franchisee in Queenstown for the past eight years. Issimo is now seeking people equally passionate about retail and fashion to open stores in all main centres around New Zealand. The investment required is around $150,000.

Fridge@fridgefreezericebox Operating in a completely different part of the fashion market, Fridge@ fridgefreezericebox sells the brands which make up some of the hottest streetwear in the world. The unusual – and memorable name comes from the original three-storey Christchurch store which sadly didn’t survive the earthquake of 2011. The replacement store opened in Northlands Mall, where it focuses on footwear, clothing, headgear and accessories, all at very affordable levels. ‘There is not much over $200 and our tee shirts are under $60 so we have good middle-of-the-road pricing,’ says Laurie. ‘Streetwear is very immediate; if movie stars and hip hop artists are seen in Nike hi-tops and flat caps, that’s what people will want and that’s what we will sell. If it’s in fashion, people want it immediately, not online, and they come to us to try it and buy it. It is endlessly fascinating, and profitable, too. Moving to the mall actually turned out to be a great way of honing the concept down and because Fridge is cool but not aggressive, we attract all ages.’ Once again, the capital investment is around $150,000.

Have You The Passion? So there you have it: three completely different concepts, all from a retailer who knows what it takes to succeed. ‘If you want a business that suits your passion, I want to hear from you,’ says Laurie. ‘Contact me now and find out more.’

Advertiser Info

Frontrunner PO Box 22 446, High Street, Christchurch www.thefrontrunner.co.nz Contact

Laurie Blyth P 0-3-348 4768 M 027 664 9557 laurie@thefrontrunner.co.nz

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Buying A Franchise: Finance

working capital

THE FUEL IN THE TANK Philip Morrison of Franchise Accountants explains what you need to get your business started and keep it going

People will tell you that lack of working capital is one of the most common reasons that businesses fail. Buying a franchise and trying to run it without sufficient working capital is like going on a road trip without enough fuel to reach the next petrol station. So what exactly is working capital, and how do you work out what you need?

What Is Working Capital? When you purchase a franchised business, you’ll first consider the initial capital outlay you’ll need to spend on items such as building fit-out, vehicles, signage, equipment, uniforms and, of course, the initial fee that will give you the right to use the franchise’s system and brand. This is the cost of getting into the business – but it’s not the money you’ll need to run the business. Working capital is the money that you will need on a day-to-day basis to buy supplies or stock, pay your power bill, meet staff wages and all the other

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things that a business has to do. When you first open your doors, you are likely to have more money going out than coming in, so you need to have enough funds available to make up the difference. As your business grows, you may have more money coming in than going out but you’ll still need working capital because you’ll need to buy more supplies or stock – in fact, if your business is growing fast, you’ll need more working capital than before to fund the time difference.

How Much Do You Need? The amount you need depends on a number of factors. For example, is your business premises-based or mobile? Do you mainly make cash sales or do you give customers time to pay? Is it a new start-up or have you taken over an existing business? In a typical food and beverage business, such as a café, customers pay on the spot whereas the wages and suppliers are usually paid weekly. This type of business is often called a cash business which is defined as having no debtors (customers who pay on credit terms) and little or no stock. Contrast this to a service business such as building which pays its workers weekly while providing credit to customers who may take six to eight weeks to pay from the time the service is provided. Or a retail business which has to hold stock on the shelves as well as paying rent and wages although its customers pay on invoice. The diagram (right) shows how the cash outlaid to deliver the product or service is finally recovered. As the examples given above show, the amount of time it takes to complete the cycle will vary but whether it’s 20 days or 90 days, the principle is the same. Cash introduced at the start of the cycle is the working capital. Once a full trading cycle has occurred, the cash will be replenished when the product or service is paid for. Stock purchased. To make sales, you need something to sell. Stock will need to be purchased and suppliers paid, often before you can start to trade. Lead times for restocking and minimum buying quantities are factors to be considered. Franchisors may be able to negotiate better prices and payment terms than independent operators but these still need to be factored in.

Franchise New Zealand Volume 23 Issue 01 Autumn 2014


Cash introduced

Customer invoiced

Stock purchased

working capital wheel Product or service created

Wages paid

If you are a franchisor, you’ll know that the success of your business relies heavily on the quality of your franchisees. The right person in the right place, at the right time, is crucial. Wages paid. Staffing levels of franchises vary enormously from one-manand-a-van type businesses to food outlets with 10 or more people on the roster. You need to be able to pay them on time, every time. Product or service created. Capital required will vary according to the type of business you operate. With product business you will need to have stock or ingredients on hand; with service businesses, you may need to hold basic parts, pay maintenance costs, invoice customers, etc. Customer invoiced. Do customers pay on the spot or on the 20th of the month following invoice? How many pay even later? Many factors need to be looked at – your franchisor should be able to give you representative figures for this particular business. Remember, it’s not until the money has come in from your customers that you have the cash introduced to fund the next cycle – which is why, if your new restaurant is fantastically successful, then you will need more working capital to fund the purchases for the next cycle, not less. You might be profitable, but profit is not the same thing as cashflow. Even a profitable business can fail if there is insufficient cash to fund its growth.

Being New Zealand’s leading business brokerage we have a constant number of people contacting our company looking to buy a business. Your franchise opportunity is promoted to thousands of buyers who come in contact with our company. Get in contact with a LINK Broker: Nick Stevens 021 641 978 I 09 555 6040 Laurel McCulloch 021 786 813 I 09 555 6034 The authority on selling businesses

linkbusiness.co.nz

All LINK offices are licensed REAA08

Auckland Waikato Tauranga Wellington Christchurch Australia South Africa

Finding The Money Now you have established the amount of working capital you require, how do you source it? That’s up to you, of course, but here are four of the most common techniques: 1 The owner introducing more cash to the business. This is only possible if the owner hasn’t unwisely committed all his funds to buy the business in the first place. 2 Borrowing from banks, eg. loan, overdraft or other option (see page 22). 3 Using cash generated from the profits of the business. 4 Releasing funds locked-up in the trading cycle; eg. by reducing money tied up in stock or collecting accounts receivable (debtors) more quickly.

Taking Advice It’s clear from the above that when you buy a franchise you need to find not just the money to fund the business purchase but to fund its ongoing operation and growth, too. This requires some planning: we strongly recommend every franchisee prepare not just a budget but also a cashflow forecast to determine how much working capital they require, and when. Preparing these is often a specialised skill and will require engaging a financial adviser or chartered accountant – preferably one with franchise experience who can provide specific insights that are unique to your chosen business. Using a specialist franchise banker will also help and the franchisor should have some helpful input, but at the end of the day it is up to you to make sure you have enough fuel in the tank to complete your journey to business success. Find more info at franchise.co.nz

Advertiser Info Franchise Accountants PO Box 230 153, Botany, Auckland 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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Be your own boss and enjoy the benefits of being part of a quality national brand. Build your skills into a business that is a saleable asset not just a job. As a result of increased demand, opportunities are available to own a Landmark Homes Franchise in various locations throughout New Zealand. Why own a Landmark Franchise? • Be a part of a recognised high quality national brand and members of Franchise Assn NZ • Own a business you can grow into a valuable saleable asset • Enjoy the team support of a nationwide network of likeminded business people • Training and support to establish new Franchise and ongoing support from Franchisor • Your own exclusive marketing and building territory • Training and use of leading estimating, accounting, drafting and project management software • Benefit from national marketing and website including your own local webpage on site • Enjoy the satisfaction of completing superb homes of exceptional quality for your homeowners The ideal Landmark Homes franchisee will be success-oriented, motivated and enthusiastic. While the majority of our franchisees come from building or industry-associated backgrounds, this isn’t essential as all the trade skills are contracted out. That leaves the franchisee free to work on their business rather than in it, to maximise its potential and expand it into a valuable asset.

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www.landmarkhomes.co.nz

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Visit our website for more information on Franchise opportunities

0800 477110


Franchise Opportunity: Retail

the business that’s

SWEET AS

United Sweets combines retail and online to offer franchisees a unique opportunity New franchisee Sanil Singh (left) with Finn Puklowski: ‘I’m already thinking about a second store’

In two short years, United Sweets became the largest imported confectionery retailer in New Zealand – but that’s old news. Now, it’s becoming one of the country’s fastest-growing franchises as well. Since launch in September last year, the company has franchised three of its seven stores, with two more to open in April/May 2014. Leases have also been secured to open United Sweets outlets at Auckland and Christchurch Airports. What’s fuelling the growth? ‘We have a number of unique advantages over other retailers,’ explains Finn Puklowski, CEO of United Sweets. ‘First, we offer a wide and unique range of quality confectionery products imported from the US, the UK and other countries. This is an exciting market with limited competition, and we have exclusivity over many of the biggest confectionery brands in the world. Our range also extends into drinks, cereals, sauces and more. ‘Second, we have successfully harnessed the power of the internet to drive sales. We have 67,000 followers on Facebook with 15,000 people talking about us and 150,000 interactions every week. That’s five or ten times more than anyone else in the market. We also use promotional tools such as GrabOne to bring people to our stores. ‘Third, we convert our customers and contacts into loyal fans. In the first two months after opening our LynnMall store in Auckland, our loyalty scheme had collected email addresses for over 3,000 customers. Our national database is growing by some 1,000 customers per week. ‘Fourth, our 15sqm kiosks maximise sales in a small space, which makes them ideal for high traffic locations – we have mall operators coming to us offering fantastic locations. ‘Fifth, our product inventory systems have been designed to be as simple as possible, with fully-automated re-ordering minimising the time franchisees need to spend on admin. ‘And, finally, our in-store range of some 300 products is supported by a huge online catalogue of 1600 products. Rather than competing with our franchisees, the United Sweets website generates additional revenue for them – they receive a percentage of every sale made to an address in their exclusive territory.’

The Best Of Both Worlds It’s a combination that appealed to Sanil Singh, who became franchisee for the new LynnMall store in February 2014. ‘I was looking for a business opportunity that would allow me more time to look after my son after my wife passed away last year,’ says the former telecomms engineer. ‘I found out about United Sweets in November and was immediately interested. In retail, there is a definite trend to online sales, but United Sweets gives you the best of both worlds. The GrabOne vouchers bring additional people Find more info at franchise.co.nz - Search: United Sweets

Find more info at franchise.co.nz - Search: United Sweets of New Zealand

United Sweets 65.indd 1

in and the website makes money for me with very little effort. ‘At the same time, it’s all about people in the store. Passers-by can’t help stopping and looking at this vast range of confectionery that they haven’t seen before or only know from overseas trips. How you talk to them can make all the difference between a $6 sale and a $60 sale. It’s up to you.’ Sanil was careful to research the opportunity before taking the plunge. ‘This is a family business so my wife’s sister, who works for an accounting company which specialises in investigations, checked all the numbers out thoroughly. I also spoke to the first two franchisees in Hamilton and Palmerston North, and got positive feedback from them both. Then it was on to training and into my own store, with the help of my son who joins me here after school. It’s still early days, of course, but United Sweets have done everything they said they would so I’m very pleased. I’m already thinking about a second store…’

Your Own Store In Four Months Finn Puklowski says that United Sweets welcomes enquiries from prospective single- and multi-unit franchisees. ‘You do need to work hands-on in the business some of the time to ensure that you are seizing every opportunity and your staff are maximising sales, but we provide full training and support to get you up to speed,’ he says. ‘You need to register your interest early, though, as we have significant interest in many areas. Our territories are large – for example, there are only 13 planned in Auckland – and investment levels range from $99,000 Advertiser Info plus stock in the smaller malls to $199,000 plus stock (SAV $15United Sweets of New Zealand 20,000) in the larger areas. We have 100 Duke Street, Frankton, Hamilton 3200 sites available throughout the country www.unitedsweets.co.nz and can have you up and running in your own store in around four months. Contact ‘We’re looking for inspiring people with the personality to project the intense, fun, young culture of United Sweets and make us stand out in every mall. You’ll also need to be able to develop the same enthusiasm in your staff. If that sounds like you, and you want to join a truly unique and fast-growing franchise that combines the best of retail and online for the benefit of everyone – contact us now!’

Auckland James Sheppard

P 029 770 4576 jamess@abcbusiness.co.nz James Ashwin

P 021 125 6898 jamesa@abcbusiness.co.nz National

Garrick Smart, Franchise Manager P 0800 223 696 M 027 522 5259 garrick@unitedsweets.co.nz

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Franchise Opportunity: Home & Building

kitchen designers

BLUEPRINT FOR SUCCESS Palazzo Kitchens and Appliances now on Auckland’s doorstep

Ray Pullar talks so enthusiastically about the Palazzo Kitchens & Appliances franchise, it’s hard to believe that he’s already enjoyed a 17-year career in kitchen sales and design in Europe, North America and North Africa before returning to New Zealand. But when he read about the success of Palazzo Kitchens & Appliances, he couldn’t resist finding out more. Now he’s using his vast experience to help new Palazzo franchisees develop their own businesses.

technology and joinery equipment. With Palazzo, the investment is at the front end with a large showroom in the CBD rather than an industrial park.

Palazzo brings European quality to New Zealand homes at affordable prices

Palazzo Kitchens & Appliances was established in Christchurch in 2003 and made its reputation by importing fully-assembled kitchens from two of Germany’s most reputable kitchen manufacturers. Now there are company-owned and franchised showrooms in Timaru, Dunedin, Wellington and Tauranga providing home owners and property developers with locally-designed, European-made kitchens at a price competitive with chain store flat-packs. At the other end of the market, Palazzo can also meet the demands of kitchen buyers in the $60,000-plus range, while the showrooms also stock appliances from 35 top brands including Sub Zero, Ilve, Leisure, Asko, Scholtes, Delonghi and Wolf.

Unique Approach Provides Competitive Advantage Palazzo’s unique approach really impressed Ray. ‘Each showroom has its own experienced kitchen designers who work with the clients to create something that exactly matches their tastes, space and budget, then the units are built in Germany. The manufacturers used, Nobilia and Rational, are very highly-regarded in the industry and when I visited the Nobilia factory while working in Germany I saw why. The company has spent millions on things like lacquering technologies and produces more than 2,600 kitchens each day; every single one must pass very thorough Germanic inspections before it’s allowed out of the factory. To offer that sort of quality in New Zealand and be able to compete with locally-made kitchens across a broad price range gives Palazzo a real advantage.’ Wanting to learn more, Ray emailed Palazzo’s founder, Ron Neale, who himself has years of experience in the kitchen business. ‘20 minutes later he was on the phone and quickly convinced me to join the franchisor team. My first job was to set up the new 670 sqm Palazzo Kitchens & Appliances showroom in Tauranga, which has given me great insight into the Palazzo system, the business opportunity and the experiences that new franchisees will have.’

See For Yourself Having experienced the financial and emotional pitfalls of going it alone in business, Ray is a firm believer in the benefits of the Palazzo Kitchens & Appliances franchise model. ‘It’s a proven and meticulously-structured blueprint for business success,’ he says. ‘Palazzo is the opposite to the majority of kitchen businesses in New Zealand where the showroom is a small add-on to the huge capital investment in computer cutting

Find more info at franchise.co.nz - Search: Palazzo Kitchens & Appliances

‘In Tauranga, our showroom occupies a high profile position in Elizabeth Street that attracted enquiries even while we were building it. Just weeks after opening, our designers had over 100 projects on the go for customers in Auckland, Whangarei and the Coromandel. Most are kitchens in the middle-market price range of $15,000 to $20,000. ‘We have brilliant sales staff, but really the 18 Nobilia and Rational kitchens in our showroom speak for themselves. Potential customers love the quality, design and innovative labour-saving features and hardware behind the cupboard and drawer fronts. And it’s not just customers the kitchens talk to; they speak volumes to potential franchisees, too. Come and visit a Palazzo showroom and see for yourself!’

Excellent Rates Of Return Palazzo Kitchens & Appliances is looking to appoint franchisees throughout New Zealand, including key markets such as Auckland. ‘The housing and renovation market there has already responded to our offer and we don’t even have a single showroom there yet,’ Ray points out. ‘Our target for Auckland is three franchisees who can capitalise on the Palazzo model to build substantial businesses with excellent on-going rates of return. And our South Island experience proves that a Palazzo franchisee doesn’t need a city the size of Auckland to be very profitable. Because you’re not manufacturing on-site, most of your costs – rent, rates, staff, etc – are variable. The investment required to establish a Palazzo Kitchens & Appliances franchise generally ranges between $350,000 and $450,000, much of which can be financed. This covers establishment and initial operating costs for a showroom of at least 450 sqm, leading-edge 3D design software, administration systems and manuals, training, setting up approved benchtop and splashback suppliers and contract installers, staff recruitment, help with finding suitable premises and ongoing operational and marketing support. Advertiser Info ‘You don’t need to have industry experience,’ Ray affirms. ‘With the right systems, the right location and right staff, this is an opportunity anyone with a good business background should investigate. Call Ron Neale now and find out more – it’s an amazing story, and an amazing opportunity.’

Palazzo Kitchens & Appliances PO Box 10 120, Phillipstown, Christchurch 8145 www.palazzodesign.co.nz Contact

Ron Neale P 0-3-366 6948 M 021 978 348 ron@palazzodesign.co.nz

67


Franchise Matters: Legal Briefs

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For your franchise uniform requirements contact Business Development Manager Greg Longstaff on 021 667 992

Stewart Germann and Harshad Shiba review three legal cases which protected the value of a franchisor’s intellectual property

The incidence of disputes in franchising is remarkably low given the size of the sector – surveys suggest they involve just 1-2 percent of franchisees each year. But when disputes arise, they can sometimes have special significance for franchisors and franchisees. Here is a brief review of three such cases which demonstrated how franchisors can use the Courts to protect their intellectual property.

Poaching Customers

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Our first case involved a franchisor seeking a restraint of trade against a party not actually connected to a franchise agreement. What it showed was that the Court will not stand by and let a third party who has collaborated with an outgoing franchisee poach the customers of that business. Brief Background A franchisee entered into an agreement to operate a Cookright franchise in Invercargill, Southland and Central Otago. The franchise system is one where the individual franchisees provide kitchen cleaning services such as the cleaning of vats, removal and replacement of oils and fats, etc. Various issues arose between the franchisor and the franchisee including a dispute about what products the franchisee could sell. The franchise agreement provided that the franchisee could not sell competing products, yet the franchisee was allegedly selling competing products through a separate business. In the end, it was agreed that the franchisor would buy the franchisee’s operation for $70,000 on the basis (amongst other things) that there would be a smooth transition of the business operation, that the franchisee would send letters to assist in transferring customers to the franchisor and that the terms of the settlement agreement would be kept confidential. Notwithstanding the settlement agreement, the Court found on the evidence that the franchisee consorted with a third party (who were the defendants in this case) to enable the defendants to poach the customers of the business prior to the agreed assignment date when the franchisor would take over the franchisee’s business. The Issue & The Law While there were several claims made by the franchisor in this case, the most significant question to be tried was whether the third party – which was not a signatory to the franchise agreement – could be stopped from dealing with the old customers of the outgoing franchisee.

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The Relief The Court found that the defendants acted deliberately to interfere with the settlement agreement between the franchisor and the franchisee and in a manner which caused loss to the franchisor. The loss of the customers who should have been transferred to the franchisor under the settlement agreement impacted severely on the franchisor. In the circumstances, the defendants were injuncted from being directly or indirectly engaged or involved with any business that competes with the franchisor’s business in the franchised territories (Invercargill, Southland and Central Otago) for a period of one month following the date of the Court’s orders. Conclusion This case sends a very clear signal that the Courts will not permit unscrupulous conduct by a party who wilfully interferes in the contractual relations of a franchisor knowing that such interference will cause a loss to the franchisor. Franchise New Zealand Volume 23 Issue 01 Autumn 2014


Using Materials The third case went all the way to the Court of Appeal before being resolved – a lengthy and expensive process for both parties. It hinged on issues of restraints of trade, breach of confidence and breach of copyright, although here we’ll focus on the first two elements only. Brief Background

holding on to

WHAT’S YOURS Copying Designs In our second case, an Australian franchise was granted protection against its image being copied in New Zealand. Muzz Buzz found that a local operator here was using a strikingly similar design to the one it has developed over many years in Australia. They considered this misleading and deceptive conduct, and a breach of their intellectual property rights which could affect their ability to establish their business here. The Court agreed. Brief Background Muzz Buzz has numerous franchised drive-through coffee businesses in Australia and launched into New Zealand in 2013. Prior to Muzz Buzz opening its first store here, a New Zealand couple had set-up a drive-through coffee business on Auckland’s North Shore called Jitta Buzz. This used a strikingly similar image to that used for many years by Muzz Buzz in Western Australia including fonts, colours, kiosk designs, etc. A second Jitta Buzz outlet was established in Botany Downs (Auckland). Muzz Buzz claimed that Jitta Buzz was a copy of its model and intellectual property. The Issue & The Law There were several causes of action pleaded by Muzz Buzz against Jitta Buzz and its directors, including a breach of Muzz Buzz’s trademark, passing off of Muzz Buzz’s intellectual property in the design features of their outlets and materials, and misleading and deceptive conduct. The Court had to determine whether or not Jitta Buzz copied Muzz Buzz’s image and whether it marketed itself in such a way as to pass off Jitta Buzz outlets as Muzz Buzz outlets – with the effect of confusing consumers into believing that Jitta Buzz and Muzz Buzz were one and the same. The evidence showing that Jitta Buzz had indeed copied Muzz Buzz was so clear to the Court that the Judge said: I was led to the firm conclusion that when they were establishing their business, the defendants saw what they believed was an opportunity to capitalise on the success of the Muzz Buzz brand in Western Australia. I am satisfied that they decided to appropriate it to themselves for use in New Zealand by copying the essential elements of the brand, while stopping short of creating complete identicality, in the belief that being the first to brand drive-through coffee outlets in New Zealand in that manner entitled them to do so. The Relief Muzz Buzz won and obtained a permanent injunction preventing Jitta Buzz and its directors from using the words Jitta Buzz or any similar name, and from displaying or otherwise using any text or images that are similar in appearance to text and images used by Muzz Buzz. Conclusion Be sure to come up with your own designs, look and feel and ensure that you investigate with the Intellectual Property Office and via internet search that you are not infringing someone else’s intellectual property before you brand your business and its assets. And franchisors: ensure you have properly registered your trademarks and other intellectual property. Find more info at franchise.co.nz

The defendant, Mrs McNeill, was a Safe Kids In Daily Supervision (SKIDS) master franchisee for a particular area. She assisted her daughter (who previously worked as an employee in one of Mrs McNeill’s SKIDS franchisee companies) in establishing a new company unconnected to SKIDS. The new company, Kids Choice Limited, operated an after-school childcare business from a site that was previously run by Mrs McNeill’s daughter as a SKIDS site. Mrs McNeill was a 50 percent shareholder in the new company. The High Court ruled that because the level of knowledge and expertise required to run an after-school childcare programme was minimal, the restraint of trade in the SKIDS franchise agreement should not apply to Mrs McNeill. In short, its view was that the franchisor did not have a reasonable interest to protect because of the type of business being carried out by the franchisees and the relatively low barriers to entry into such a business. The franchisor appealed the decision on several grounds, including a claim that the restraint of trade claim against Mrs McNeill should be enforced and a claim for damages owing to Mrs McNeill’s copying of SKIDS materials that were used by the new company. The intention in respect to the restraint issue was to prevent her and Kids Choice Limited from operating the competing business. The Issue & The Law In respect to the claim for the restraint of trade to be enforceable against Mrs McNeill, the Court of Appeal, in contradiction to the High Court, found that the franchisor did have reasonable interests to protect owing to the work they put into developing the system and the materials used by franchisees. The High Court had earlier found that even if it had accepted that the restraint of trade was enforceable, it considered that the restraint period of two years was excessive and concluded that the appropriate restraint period would have to be three months. In this particular situation, the restraint period had expired and the Court of Appeal did not need to then examine whether the restraint period and radius were acceptable. They did, however, make the observation that, in their view, the restraint in the franchise agreement of 15km from any other SKIDS operation was possibly excessive and they would expect a radius akin to a reasonable area surrounding the franchisee’s area would be more appropriate. They also agreed with the High Court that a period of three months (albeit noted as being the bare minimum) was an appropriate restraint period. In respect to the breach of confidence by Mrs McNeill of using SKIDS documentation to assist the new company in setting up its operations, the Court of Appeal found that Mrs McNeill did owe a duty of confidence in respect to those documents and that she breached that duty. The Court said that the materials took time to prepare and they did have a quality of confidence to them that should have been observed by Mrs McNeill. The Relief Mrs McNeill and the new company were collectively ordered to pay damages to the franchisor of $22,000 owing to the breach of confidence by Mrs McNeill in unlawfully using the SKIDS material to assist the new company and, in respect of the new company, for it using that material knowing it to have been obtained without authorisation from the franchisor. Conclusion There is recognition by the Courts that where a franchisor has spent time and effort in creating systems and documents for its franchise system, those rights should be protected. No matter the type of work a franchise system may carry out, a restraint of trade against an outgoing franchisee will be enforceable if it is reasonable.

About the Author Stewart Germann is a specialist franchising lawyer at Auckland with over 30 years of experience. Harshad Shiba is an Associate with Stewart Germann Law Office.

69


westpac

• Over 250 franchises & master licences • Essential details • Investment levels • Specialist lawyers, accountants, bankers & consultants • Index to advertisers

DIRECTORY of franchising

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Investment Description from

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Page No.

National Master Licence Opportunities

70 79 80

⇒ Franchise and Business Opportunities

A-B Company Contact

Franchise & Business Opportunities

Get more information

0800 2 Fix It

Home & Building

$30,000

NZ’s leading trade services franchise system. Seeking plumbers, mechanics and electricians.

6 6

N

M 029 202 2500 franchise.co.nz – search: 0800 2 fix it

0800 Sunshade

Home & Building

$25,000

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

7 7

N

P 0-6-876 9675 franchise.co.nz – search: Sunshade

AA Auto Centre

Auto Services

$150,000

NZ’s premier provider in the auto service and repair market.

30 30

N

P 0-9-966 8800 franchise.co.nz – search: AA Auto

Accessman

Home & Building

$250,000+

Specialist hire company supplying access equipment to the construction and maintenance industry.

8 8

Y

P 0-3-341 6333 franchise.co.nz – search: Accessman

ActionCOACH

Business & Commercial

$80,000

ActionCOACH is the world’s #1 global network of business coaches and trainers.

30+ 1200

Y

P 0800 228 466 franchise.co.nz – search: Actioncoach

AGATHA Paris

Retail

$300,000

AGATHA Paris – iconic French fashion jewellery that fuses the fashionable with the affordable. Founded in Paris in 1974, now running 340 successful boutiques in 25 countries. Open your own boutique or kiosk, no previous experience required, full support from an award-winning, well-run local team.

11 340

N

P 0800 AGATHA M 021 989 895 E mitchell@agatha.co.nz W agatha.co.nz franchise.co.nz – search: Agatha

AluRestore

Home & Building

$49,000

Fully mobile aluminium joinery re-coating franchise.

1 1

N

P 0508 737 867 franchise.co.nz search: Alurestore

Amazing Clean New Zealand

Home & Commercial

$100,000$150,000

Ultrasonic blind cleaning & repairs and curtain, upholstery/mattress cleaning.

1 70+

N

P 0800 2 AMAZE franchise.co.nz –search: Amazing

Food & Beverage

$300,000

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

80 80

Y

P 0-9-295 2742 E rebecca.muir@fonterra.com W anchor.co.nz franchise.co.nz – search: Anchor

Anytime Fitness

Health & Fitness

$280,000

Anytime Fitness is a convenient 24-hour international fitness club franchise.

4

N

P 0-7-839 0209 franchise.co.nz – search: anytime

Archgola

Home & Building

$10,000

Provider of all-weather permanent outdoor canopies. Seeking clever DIY people or tradesmen.

19 19

N

P 0-9-426 0033 franchise.co.nz – search: Archgola

Armstrong Smarter Security

Business & Commercial

$150,000

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

14 14

Y

P 0-9-415 0585 franchise.co.nz – search: Armstrong

At Your Request Franchise Group

Home & Commercial

$14,000

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

200+ 200+

N

P 0800 297 297 franchise.co.nz – search: Your Request

Baby-on-the-Move

Retail

$35,000

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

26 26

N

P 0-9-422 2285 franchise.co.nz – search: Baby

Bakers Delight

Food & Beverage

$295,000

Bakers Delight is the world’s largest franchise bakery with 700+ bakeries across 4 countries, serving 2 36 million customers each week. Trading for 29 years. Proven business formula, with over 90% success 700+ rate. Full training including baking and ongoing operational assistance. Turnkey operation.

Y

P 0800 225 388 E franchiserecruitment@bakersdelight. com.au W bakersdelight.co.nz franchise.co.nz – search: Bakers

Bark Busters

Leisure & Education

$20,000 $40,000

Bark Busters is the world’s largest, most trusted dog training company.

2 450+

N

P 0800 167 710 franchise.co.nz – search: Bark

Base7

Home & Building

$120,000

Mobile flooring franchise. Lower overheads, higher returns. Experience not essential, full training provided.

9 9

N

P 0508 356 677 franchise.co.nz – search: Base7

Bathroom Direct

Home & Building

$150,000$250,000

Franchised bathroom renovation business. Supply and installation of bathroom products.

4 4

N

P 0-9-913 3110 M 021 959 796 franchise.co.nz – search: Bathroom

bb’s Café

Food & Beverage

$300,000

One of NZ’s most proven and trustworthy franchises. No previous experience required. Full training and support given. Seeking people with drive and a passion for coffee, fresh food and exceptional customer service.

21 60

Y

P 0-9-973 4821 M 021 331 243 E david.bernard@rfg.com.au W bbscafe.com.au franchise.co.nz – search: bb’s

Retail

$50,000

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

16 16

Y

P 0-9-278 1010 M 021 665 923 E graeme@bedpost.co.nz W bedpost.co.nz franchise.co.nz – search: Bedpost

Big Paddle Company

Business & Commercial

$42,500 $54,500

We provide a business-consulting model. Seeking experienced successful business people.

1 2

N

P 0-9-630 7710 franchise.co.nz – search: Paddle

Bin Inn Retail Group Co-operative

Retail

$110,000

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

34 34

N

P 0-7-575 6939 franchise.co.nz – search: Bin Inn

Bookends

Education

$30,000

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

18 18

Y

P 0-3-377 9555 franchise.co.nz – search: Bookends

Industry

Mitchell Grant

Anchor Franchise Rebecca Muir

8

David Bernard

Bedpost

54

Graeme Doak

70

Westpac Directory of Franchising and Advertiser Index Franchise New Zealand Volume 23 Issue 01 Autumn 2014


Looking for a business opportunity but don’t know where to start? 1 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 franchise.co.nz.

2 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.

3 Choose by Type 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 - use the search word in the right hand column to find it easily.

Please Note

What Does It Cost? What’s Available?

How Many Are There?

Who Do I Contact?

B-C

Industry

Investment Description from

FANZ

⇒ Franchise and Business Opportunities No in NZ Globally

Page No.

Each listing contains information as supplied by that particular entity. However, you should confirm the accuracy of the information in each particular case. The FANZ column advises you which are members of the Franchise Association of New Zealand. You are advised to confirm the membership status of any entity. Neither the sponsors of this Directory nor the publisher accept liability for any omissions or errors.

GULP!

Get more information

Breakers Café & Bar

Food & Beverage

$300,000$500,000

NZ’s favourite surf/beach themed café & bar, focused on good old-fashioned service.

7 7

N

P 0-6-834 0537 franchise.co.nz – search: Breakers

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

N

P 0-9-267 7244 M 027 273 4992 E bjrea@xtra.co.nz W thebruciegroup.co.nz franchise.co.nz – search: Brucies

Food & Beverage

$400,000$450,000

Australia’s longest running and very successful bread franchise. The Brumby’s system and procedures have been developed to help you run your business. Every facet of running a Brumby’s store has been standardised to promote efficiency. Estimated turnkey price, depending on size and location.

18 329

Y

P 0-9-973 4821 M 021 331 243 E david.bernard@rfg.com.au W brumbys.com.au franchise.co.nz – search: Brumby’s

Food & Beverage

$323,000$505,000

Brumby’s GO! is a new evolution of the tried and tested Brumby’s Bakery concept – using Brumby’s freshly baked bread. Ready to eat, freshly prepared healthy snacks on the run. Kiosk or stand-alone options. Baking experience not essential. Estimated turnkey price, depending on size and location.

New 12

Y

P 0-9-973 4821 M 021 331 243 E david.bernard@rfg.com.au W brumbysgo.com.au franchise.co.nz – search: Brumby’s GO

Food & Beverage

$300,000+

The ultimate experience in gourmet burgers. 100% pure NZ grass-fed beef, butterfly-cut chicken breast and fresh ingredients. New Zealand operated since 1995. Seeking hardworking and dedicated people with great attitude, sound financial backing, affinity with food, customer service and a desire to develop and innovate.

30 41

Y

P 0-9-376 6007 E franchise@burgerfuel.co.nz W burgerfuel.com franchise.co.nz – search: Burger Fuel

Food & Beverage

$140,000

“Home of the world’s best burgers.” Gourmet opportunity for operators with good taste.

24 24

N

P 0-4-384 9000 franchise.co.nz – search: Wisconsin

46

Health & Beauty

$250,000+

Caci is a highly sought-after, well-recognised household name. Our clinics are a profitable business in 29 a growing industry. Successful Caci franchisees come from all walks of life – from nursing through to 29 corporate executives and beauty therapists wanting to go to the next level.

Y

P 0-9-847 9220 M 027 298 6077 E lisa.travis@fabgroup.co.nz W franchise.micromode.co.nz franchise.co.nz –search: Caci

50

Food & Beverage

$150,000

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

4 4

N

P 0-9-444 4369 E murray.belcher@ufsltd.co.nz franchise.co.nz – search: Botannix

41

Food & Beverage

$129,410

Cafe2U is the world’s largest mobile coffee van franchise. Cafe2U’s success is based on the unique “Acceleration Package” that guarantees and fast-tracks income. Intensive four-week training programme and ongoing support is provided. All you need to do is bring your smile.

8 230+

Y

P 0508 004 388 E jstanton@nz.cafe2u.com W cafe2u.co.nz franchise.co.nz – search: Cafe2U

4

Financial Services

$90,000

Turnkey operation. Set up and run a finance company from home. No finance experience required. Exclusive training, support, documentation and custom-built software provided. 37 years’ experience and proven success.

30 30

N

P 0-4-293 6899 E iancharman444@hotmail.com W calsystems.co.nz franchise.co.nz – search: CAL

31

Computer

$100,000$125,000

The largest, most experienced cartridge refilling company worldwide. Franchisees operate from retail premises, refilling cartridges, retailing new cartridges and other printer consumables. Operating worldwide. Easily learned, full training provided. Includes stock, plant, training and licence fee.

36 1650

N

P 0-3-446 8600 M 0274 339 829 E geoff.smith@cartridgeworld.co.nz W cartridgeworld.co.nz franchise.co.nz – search: Cartridge

Cash Converters

Retail

P.O.A.

World leaders in the retailing of quality second-hand goods. Franchises available New Zealand wide.

13

Y

P 0-9-414 1960 franchise.co.nz – search: Converters

Ceiling Master

Home & Commercial

$62,500

Specialist cleaning system designed for ceilings, walls and exterior house washing.

3 3

N

P 0-3-365 5111 franchise.co.nz – search: Ceiling

Home & Building

$200,000

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

Y

P 0-9-273 5352 M 0275 764 507 E info@centrallandscapes.co.nz W centrallandscapes.co.nz franchise.co.nz – search: Landscapes

Civic Video

Retail

$150,000

Home entertainment stores specialising in the rental and sale of DVDs and games.

56 300

Y

P 0-9-523 6322 franchise.co.nz – search: Civic

Cleancorp Auckland

Home & Commercial

$25,000

Cleancorp offers a range of franchise opportunities including home cleaning and commercial cleaning. 105 105

Y

P 0-9-304 1570 franchise.co.nz – search: Cleancorp

Company Contact

Bruce Rea Brumby’s Bakeries

18

David Bernard

Brumby’s GO! David Bernard

BurgerFuel

62

Craig Notman

Burger Wisconsin Caci Lisa Travis

Café Botannix Murray Belcher Cafe2U John Stanton

CAL Systems Ian Charman

Cartridge World Geoff Smith

Central Landscape & Garden Supplies

31

Paul Brinkman

Are you seeing this opportunity as CLEARLY as you should? SEE PAGE 83 Search the Westpac Directory of Franchising at www.franchise.co.nz

Financial peace of mind starts here 0800 555 8020 www.franchiseaccountants.co.nz/coffee info@franchiseaccountants.co.nz

71


Investment Description from

FANZ

Page No.

Company Contact

No in NZ Globally

⇒ Franchise and Business Opportunities

C-E

Get more information

Cleancorp Wellington

Home & Commercial

$25,000

Join the Cleancorp team in Wellington before 31 January 2014 and you will receive a 20% discount, saving you $5000! Due to overwhelming success in the Auckland region we are now operating in the Wellington area and we need you to join our team.

105 105

Y

P 0-9-304 1571 M 021 811 229 E yo@cleancorp.co.nz W cleancorp.co.nz

Clean Planet

Business & Commercial

$20,000

Commercial cleaners the environment loves. The first 100% eco-friendly commercial cleaning franchise.

90+ 90+

Y

P 0-9-622 0828 franchise.co.nz – search: Planet

Cleantastic Commercial Cleaning

Business & Commercial

$13,800

A business of your own with a guaranteed income and lifestyle opportunities.

280 1000

Y

P 0-6-843 3320 franchise.co.nz – search: Cleantastic

Club Physical

Health & Fitness

$200,000

Club Physical is a health club. Our vision is to become New Zealand’s first choice in wellness.

14 14

N

P 0-9-417 0071 franchise.co.nz – search: Physical

Cobb & Co

Food & Beverage

$200,000

The iconic kiwi family restaurant operating successfully throughout New Zealand since 1970.

8 8

N

P 0204 1007 007 franchise.co.nz – search: Cobb

Coffee Culture

Food & Beverage

$350,000+

Creating luxurious environments for our guests to enjoy the finest espresso coffee since 1996.

14 17

Y

P 0-3-377 2605 franchise.co.nz – search: Culture

ColorGlo International

Auto Services

$47,000

Colour restoration and repair of leather, vinyl, plastic, cloth, carpet.

4 315

N

P 0-9-524 6214 franchise.co.nz – search: Color Glo

Colourplus

Retail

$250,000

New Zealand’s fastest growing décor franchise. No industry experience required.

30 30

Y

P 0-9-818 9215 franchise.co.nz – search: Colourplus

Food & Beverage

$250,000$350,000

NZ’s premium café franchise. A highly recognised and trusted brand offering customers exceptional coffee and chef-prepared food. Awarded both Food and Beverage Franchise System of the Year and Supreme Franchise System of the Year 2009/10 and 2010/11. Suit owners with passion for coffee, food and the value of customer relationships.

58 58

Y

Graeme Tait

P 0-9-520 1044 M 021 988 345 E graeme@columbuscoffee.co.nz W columbuscoffee.co.nz franchise.co.nz – search: Columbus

Complete First Aid Supplies

Business & Commercial

$55,000

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

4 4

Y

P 0-9-827 7726 franchise.co.nz – search: First Aid

Computer Troubleshooters

Computer

$27,500

On-site and remote ITC support through to total managed services, targeting small to medium businesses and SOHO. Operating in over twenty-five countries. National brand, full training and support. Ideal for those with corporate backgrounds and management skills or technician/IT specialists able to work hands-on.

28 500

N

P 0800 728 768 P 0800PCTROUBLE E dave@comptroub.co.nz W comptroub.co.nz franchise.co.nz – search: Troubleshooters

Health & Fitness

$95,000

Contours is a nationwide chain of health and fitness clubs exclusively for women.

13 13

Y

P 0-9-577 4223 M 021 662 239 E enquiry@businessfranchise.co.nz W contours.co.nz franchise.co.nz – search: Contours

Food & Beverage

$65,000 +

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

42 44

N

P 0-3-349 6161 franchise.co.nz – search: Cookie

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

Y

P 0800 804 104 E headoffice@cookright.co.nz W cookright.co.nz franchise.co.nz – search: Cookright

Cooltime

Home & Building

$30,000

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

7 7

Y

M 0275 973 737 franchise.co.nz – search: Cooltime

Coresteel Buildings

Home & Building

$75,000

Specialises in the design and construction of rural, commercial and industrial buildings.

22 22

N

P 0-9-438 1562 franchise.co.nz – search: Coresteel

21

Business & Commercial

$35,000+

Corporate Cabs is proud to be New Zealand’s premier cab operator with a fleet of cabs in Auckland, Wellington, Christchurch, Dunedin and Queenstown. Our brand is built on the professionalism of our franchise owners and we invite you to consider joining our fleet.

400 400

N

P 0-9-632 0600 E info@jointhefleet.co.nz W jointhefleet.co.nz franchise.co.nz – search: Cabs

2

Business & Commercial

$10,000

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

385 385+

Y

P 0800 273 780 E info@crestclean.co.nz W crest.co.nz franchise.co.nz – search: Crest

Crewcut

Home Services

$8,800 + equip

Quality home service franchise providing property maintenance requirements to the domestic market.

260 260

Y

P 0-9-481 0004 franchise.co.nz – search: Crewcut

Crust Gourmet Pizza

Food & Beverage

$200,000

Crust Gourmet Pizza is ideally suited to today’s fast-paced lifestyle, providing excellence in service and high-quality product to customers. Seeking business-minded people with financial management experience, committed, willing to take advice and direction to achieve results. Need to be entrepreneurial with an appetite for success.

2 134

N

M 021 655 149 E parnell@crustpizza.co.nz W crustpizza.co.nz franchise.co.nz – search: Crust

Cutshop

Home & Building

$800,000

Cutting, edging and drilling of sheet materials for the DIY, cabinet making and commercial shop fitting industry.

1 1

Y

P 0-9-527 2856 franchise.co.nz – search: Cutshop

Deck & Fence Pro

Home Services

$24,950

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

Y

P: 0-7-552 5311 M 0274 108 940 E joe.h@theprogroup.co.nz W deckandfencepro.co.nz franchise.co.nz – search: Deck

Diamond Fusion

Home & Building

$50,000

Easy clean glass. Seeking passionate, trustworthy people, sales & marketing an advantage.

5 5

N

M 0274 666 785 franchise.co.nz – search: Diamond

Dollar Value

Retail

$160,000

Retail stores providing great product and service value to all customers.

4 4

N

M 029 289 6149 franchise.co.nz – search: Dollar

Domino’s Pizza

Food & Beverage

$350,000

Specialist quick service pizza franchise. Over 1 million pizzas a day worldwide.

77 8600

N

P: 0061 7 3633 3333 franchise.co.nz – search: Domino’s

Donut King

Food & Beverage

$250,000$330,000

3 Donut King is a speciality donut and coffee chain which has been growing steadily in Australia since 1981. Now available in NZ. Full training and support given. Seeking self-motivated, energetic, positive 350 people with good communication skills. Estimated turnkey price, depending on size and location.

N

P 0061 4 1836 0392 E watsoncraig@me.com W donutking.com.au franchise.co.nz – search: Donut King

Home & Building

$30,000 +

Design, manufacture and supply of made-to-measure kitchens, bathrooms and bedrooms for retail 10 and trade customers. Seeking hard-working, sales-driven, computer literate go-getters who are willing 35+ to follow a proven dynamic international business model.

Y

P 0-3-443 5133 E del@dreamdoors.co.nz W dreamdoors.co.nz franchise.co.nz – search: Dream

Home Services

$20,000

Driving Miss Daisy is a safe, friendly and reliable companion driving service.

29 50

Y

P 0800 948 432 franchise.co.nz – search: Daisy

4

Home & Commercial

$30,000

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.

19 30

N

P 0-7-345 1226 M 027 543 2627 E nicholas.schnell@damarindustries.co.nz W ecomistsystems.com franchise.co.nz – search: Ecomist

68

Business & Commercial

$95,000

World’s largest embroidery, screen printing and promotional products franchise. One stop shop for business needs. Highly visible retail stores, modern showrooms, latest embroidery technology. Operating since 2000. No experience required although management and sales abilities would be highly regarded. Financial assistance possible.

7 350

Y

P 0-9-577 4223 M 021 662 239 E enquiry@businessfranchise.co.nz W embroidme.co.nz franchise.co.nz – search: EmbroidMe

Industry

franchise.co.nz – search: Cleancorp

Columbus Coffee

53

Dave Mudford Lyn Aikman Contours

60

Grant Archibald

Cookie Time Cookright Kitchen Services

63

Robyn Broughton

Corporate Cabs Gary Bennett

CrestClean Grant McLauchlan

Jeff Moss

Joe Hesmondhalgh

Craig Watson

Dream Doors Derek Lilly

Driving Miss Daisy Ecomist Nicholas Schnell

EmbroidMe Grant Archibald

If you’re just starting in franchising, talk to someone who isn’t. 72

Westpac Directory of Franchising and Advertiser Index Franchise New Zealand Volume 23 Issue 01 Autumn 2014

Westpac New Zealand Limited


42

Industry

Investment Description from

FANZ

Page No.

Esquires Coffee Houses

E-H

No in NZ Globally

Company Contact

⇒ Franchise and Business Opportunities Get more information

Food & Beverage

$350,000$450,000

Award-winning international café brand offering 100% Fair Trade coffee in stylish comfortable surroundings. NZ’s fastest-growing café franchise. Twice winners of NZ’s Franchise System of the Year Award for the Food & Beverage category (2005 & 2006). Estimated turnkey price, depending on size and location.

42 100+

Y

P 0-9-973 4821 M 021 331 243 E david.bernard@rfg.com.au W esquirescoffee.co.nz franchise.co.nz – search: Esquires

Exceed Home Network

Home & Building

$25,000 $50,000

Exceed Home Network provide home delivered services for home and property owners.

27 27

Y

P 0800 25 27 36 franchise.co.nz – search: Exceed

Expense Reduction Analysts

Business & Commercial

$45,500

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+

N

P 0-4-566 6615 M 0274 487 089 E dstevens@expensereduction.com W expensereduction.com franchise.co.nz – search: Expense

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

Y

P 0-6 833 6333 E recruitment@fastway.co.nz W fastway.co.nz franchise.co.nz – search: Fastway

Fifo Capital

Financial Services

$49,500 +

Invoice discounting and factoring services designed to assist clients’ cashflow needs.

12 16

Y

P 0-9-447 1999 franchise.co.nz – search: Fifo

Fix It Building Services

Home & Building

$5,000 +

New Zealand’s only nationwide trade-based building repair and renovation franchise.

11 11

Y

P 0-9-566 0297 franchise.co.nz – search: Fix It

Footloose

Retail

$160,000

New Zealand’s largest franchised ladies fashion footwear group. Ideal for motivated owner-operator.

22 22

N

P 0-9-298 5228 franchise.co.nz – search: Footloose

63

Home Services

$24,900

Freedom Companion Driving Services provide a highly personalised companion driving service for those who can’t drive themselves. Based on award-winning systems with great ongoing support. Seeking caring individuals wanting a great lifestyle business helping people in their community.

12 12

Y

P 0800 956 956 E franchises@freedomdrivers.co.nz W freedomdrivers.co.nz franchise.co.nz – search: Freedom Driving

61

Retail

$150,000

Affordable on-trend street-wear in cool, individual, retail outlets. Benefit from our buying power, systems and training to create a truly profitable business. We are looking for people with enthusiasm for building bright, creative, highly-branded and customer-focused businesses. Opportunities in New Zealand cities nationwide.

2 2

N

P 0-3-348 4768 M 027 664 9557 E laurie@thefrontrunner.co.nz W fridgefreezericebox.co.nz franchise.co.nz – search: Fridge

Food & Beverage

$40,000

Fritz’s Wieners offer award-winning German bratwurst sausages with a variety of condiments.

6 6

N

P 0800 437 489 franchise.co.nz – search: Fritz’s

Retail

$160,000$250,000

9 Well-established (1976) retailer of technical sports and athletic footwear, clothing and accessories, focusing on range, service and knowledge of product. Seeking adaptable, focused and reliable people 9 who want to learn in-depth the systems and methods we use to become successful.

N

P 0-3-348 4768 M 027 664 9557 E laurie@thefrontrunner.co.nz W thefrontrunner.co.nz franchise.co.nz – search: Frontrunner

Furniture Court

Retail

$250,000

Specialist furniture retailer in lounge, dining, bedroom, occasional and accessories.

20 20

N

P 0-9-277 5465 franchise.co.nz – search: Furniture

Geeks on Wheels

Computer

$25,000

Mobile computer technical support service, offering friendly and efficient on-site assistance.

4 4

N

P 0-4-920 0990 franchise.co.nz – search: Geeks

Generation Homes

Home & Building

P.O.A.

We build houses for a fixed price and on a time guarantee.

14 14

N

M 0274 908 399 franchise.co.nz – search: generation

$140,000$300,000

New Zealand’s largest digital signage network which uses a unique formula to entertain viewers and promote small business. Seeking forward-thinking, self-driven, focused people with pizzazz who want a business with lifestyle and repetitive income.

8 8

N

P 0-6-355 3480 M 027 603 9991 E info@giggletv.co.nz W giggletv.co.nz franchise.co.nz – search: Giggle

David Bernard

Denis Stevens Fastway Couriers

Freedom Companion Driving Services

52

Richard Bright fridgefreezericebox Laurie Blyth

Fritz’s Wieners Frontrunner

61

Laurie Blyth

Giggle TV Jazz Kiihfuss

34, Business & 35 Commercial Services

Gloria Jean’s Coffees

Food & Beverage

$300,000

Gourmet speciality coffee franchise. Seeking people passionate about coffee.

25 925

N

P 0-9-520 6477 franchise.co.nz – search: Gloria

Golden Nuts

Food & Beverage

$70,000 $100,000

“The best nut roasting retail kiosk in the world” state-of-the-art design kiosk.

6 6

N

P 0-9-622 0333 franchise.co.nz – search: Golden

Home Services

$24,000

Green Acres, the largest and most successful home services group in New Zealand started in 1991 and is still growing. Franchises available: home cleaning, commercial cleaning, lawn & garden care, car valet, pool valet or home maintenance services with Hire a Hubby, our sister company.

1000 1000

Y

P 0800 692 643 E mitchell@greenacres.co.nz W greenacres.co.nz franchise.co.nz – search: Green Acres

GroutPro

Home & Building

$39,950

Earn $2,000+ per week in one of the hottest sectors in the home improvement industry.

42 75

Y

P 0-7-552 5311 franchise.co.nz – search: GroutPro

Guthrie Bowron

Retail

$250,000$300,000

Decorating specialists focusing on paint, wallpaper, fabric and tiles.

56 56

Y

P 0-9-306 1040 franchise.co.nz – search: Guthrie

Habitual Fix

Food & Beverage

$150,000

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

10 10

N

M 021 428 970 franchise.co.nz – search: Habitual

Hardy’s Health Stores

Health & Beauty

$300,000

New Zealand’s premium group of retail natural health stores.

31 31

Y

P 0-7-838 3274 franchise.co.nz – search: Hardy’s

Harrisons Carpet One

Home & Building

$80,000

Unique opportunity to purchase one of New Zealand’s best franchise systems, earn a high income and build an extremely saleable business of significant value. If you are outgoing, motivated, enjoy selling and results-focused, contact us for more information. Flooring experience not needed.

46 1800

Y

Mike Simpson

P 021 283 8040 E mike.simpson@harrisonsathome.co.nz W carpetone.co.nz franchise.co.nz – search: Carpet

Harvey World Travel

Retail

$100,000

High profile award-winning retail travel agency.

54 350+

N

P 0-9-307 1860 franchise.co.nz – search: Harvey

Healthy Homes

Home & Building

$60,000

Installation of PinkBatts into new and existing residential properties.

19 19

Y

P 0-9-414 2725 franchise.co.nz – search: Healthy Homes

Hell

Food & Beverage

$200,000

64 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 70 with a passion for our brand and a willingness to learn. Opportunities available nationwide.

N

M 027 364 2431 E franchise@hell.co.nz W hellpizza.com/nz franchise.co.nz – search: Hell

40

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.

Y

P 0-9-845 2640 E mitchell@hireahubby.co.nz W hireahubby.co.nz franchise.co.nz – search: Hubby

10

Food & Beverage

$750,000

2 Opportunity to own and operate a licensed family restaurant as part of a very successful brand. Offering outstanding training and support in all areas of restaurant business. Be part of our successful 82 franchise system with distinctive culture and philosophy. Sites available across New Zealand.

Y

Peter Josefski

P 0800 HOGSTER M 0061 4176 16897 E hbcsupport@hogsbreath.co.nz W hogsbreath.co.nz franchise.co.nz – search: Hogs

Home Instead Senior Care

Home Services

$155,000

Provides caregiving support to seniors and their families at home. No experience required.

4 900+

Y

P 0800 694 472 franchise.co.nz – search: Home Instead

Home & Building

$350,000

Become part of the change at HRV. Certified HRV ventilation franchise opportunities available. You must be a hands-on operator with willingness for direct sales and in-home selling. With a first class brand and market leading products, this opportunity is one not to be missed.

20

N

P 0800 HRV 123 M 027 239 2750 E robertb@hrv.co.nz W hrv.co.nz franchise.co.nz – search: HRV Ventilation

Home & Building

$25,000

19 HRV is one of New Zealand’s most recognisable brands. Opportunity to leverage on the branding, existing database, proven systems and industry-leading sales strategies. Would suit driven, motivated 20 people with a basic understanding of direct sales.

N

P 0-9-555 6042 M 021 421 346 E rudyk@linkbusiness.co.nz W hrv.co.nz/water-licensee.aspx franchise.co.nz – search: HRV Water

Business & Commercial

$90,825

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

N

P 0800 486 434 franchise.co.nz – search: Humitech

Green Acres Franchise Group

52

Mitchell Cooper

Ben Cumming

Hire A Hubby Mitchell Cooper

Hog’s Breath Café

HRV Ventilation

51

Robert Bell

HRV Water Rudy Kokx

Humitech

19

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

100 100

23

12 12

73


⇒ Franchise and Business Opportunities Industry

Investment Description from

No in NZ Globally

FANZ

Page No.

I-L

Get more information

Home & Building

$80,000 $125,000

Supply, install & advise on full range of insulation materials for new & existing properties.

5 5

N

P 0-9-263 9770 franchise.co.nz – search: Insultech

Retail

$150,000

Issimo is the fashion shoe franchise where exclusive doesn’t mean expensive. A destination store. You need a passion for retail fashion, the ability to run a great business with great customer service. Issimo offers good margins and opportunities in all main centres around New Zealand.

2 2

N

P 0-3-348 4768 M 027 664 9557 E laurie@thefrontrunner.co.nz W issimo.co.nz franchise.co.nz – search: Issimo

Jamaica Blue

Food & Beverage

$300,000

Contemporary café concept built on the foundations of fine coffees and fabulous food.

5 94

Y

P 0-9-377 1901 franchise.co.nz – search: Jamaica

Jani-King

Business & Commercial

$22,200+

World’s number one commercial cleaning franchise company. Full support for franchisees.

300 13K+

Y

P 0-9-441 9996 franchise.co.nz – search: Jani

Jellybeans Music

Leisure & Education

$25,000

Jellybeans Music provides curriculum based music programmes for schools.

New 30+

Y

P 0800 754 372 franchise.co.nz – search: Jellybeans

Jesters Pies

Food & Beverage

$220,000

Award-winning gourmet pie franchise. An extensive range of quality pies and associated products freshly baked on premises daily. Iconic Kiwi business. Easy business model to operate. Loads of external revenue opportunities for franchisees who want to be business owners not shopkeepers.

18 50+

Y

P 0-9-442 4680 M 021 274 4050 E grant@jesters-pies.co.nz W jesters-pies.co.nz franchise.co.nz – search: Jesters

Jim’s Mowing

Home Services

$15,000

Jim’s are the largest lawnmowing franchise in the world. Master franchises available all services.

282 2015

Y

P 0-9-522 2265 franchise.co.nz – search: Jim’s Mowing

Jim’s Test & Tag

Business & Commercial

$75,000+ vehicle

NZ’s number one choice for mobile electrical testing and tagging of in-service equipment.

20+ 120+

Y

P 0800 454 654 franchise.co.nz – search: Jim’s Test

Jim’s Trees & Stump Removal

Home Services

$55,000+

Progressive and professional services – pruning, removal and climbing. Highest standards of training.

3 40

N

P 0-6-843 2848 franchise.co.nz – search: Jim’s Trees

Jumping Beans International

Leisure & Education

$40,000 $45,000

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

6 7

N

P 0-9-475 9204 franchise.co.nz – search: Jumping

Just Cabins

Home & Building

$250,000

Just Cabins provides portable cabins for rent which are just perfect as sleep-outs, extra room, portable office or 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.

39 39

Y

P 0800 587 822 M 021 716 776 E fenton@justcabins.co.nz W justcabins.co.nz franchise.co.nz – search: Cabins

Just Cuts

Health & Beauty

$100,000$200,000

Just Cuts franchise. You don’t need to be a hairdresser to join.

24 174

N

M 027 277 7071 franchise.co.nz – search: Justcuts

Just Loans

Financial Services

$100,000+

Just Loans is a finance company providing personal loans. Turnkey money-lending system.

5 5

N

P 0800 333 455 franchise.co.nz – search: Just-loans

Leisure & Education

$25,000

Giving kids a sporting chance. In-school curriculum, after school academy programmes, school sports 27 days. Education outside of the classroom. Before and after-school care holiday programmes. We are 58 looking for people who have a passion for kids and sport.

N

P 0-9-427 9377 M 021 409 241 E paul@kellysports.co.nz W kellysports.co.nz franchise.co.nz – search: kelly

Kinetic Electrical

Home & Building

P.O.A.

Electricians, electrical contractors – become more successful as part of the Kinetic team.

9 9

Y

M 0274 852 010 franchise.co.nz – search: Kinetic

Kitchen Studio

Home & Building

$100,000+

Kitchen Studio is a full-service kitchen provider seeking applicants with sound commercial acumen.

17 17

N

P 0-3-964 4580 franchise.co.nz – search: Kitchen Studio

KiwiHost

Business & Commercial

$50,000

Turn your B2B sales skills into profit with an iconic brand.

18 18

Y

P 0-3-343 5007 franchise.co.nz – search: KiwiHost

Kiwikrane

Leisure

$50,000 +

Kiwikrane is a national franchise. Franchisees own and operate amusement machine routes.

51 51

Y

P 0-9-846 2800 franchise.co.nz – search: Kiwikrane

KiwiYo

Food & Beverage

$150,000$600,000

Self-serve frozen yoghurt business. Fastest-growing international hospitality sector.

3 5

N

P 021 339 644 franchise.co.nz – search: Kiwiyo

Kwik Kerb

Home & Building

P.O.A.

Market leaders in domestic and commercial continuous concrete kerbing.

42 800

N

P 0800 865 945 franchise.co.nz – search: Kwik Kerb

Home & Building

$50,000

A growing building franchise with a well-established brand offering stylish designs, high-quality homes, excellent systems – providing homeowners with a first-class experience. Seeking committed individuals or couples with knowledge of the building industry who want to build a business into a valuable asset.

10 10

Y

P 0-7-578 2295 M 0274 751 311 E paul.Clarke@landmarkhomes.co.nz W landmarkhomes.co.nz franchise.co.nz – search: Landmark

Home & Building

$30,000+

56 Multi award winning Laser Group assists electrical contracting companies become more successful. Become part of NZ’s largest electrical contracting network. Unique model suits existing successful 131 electrical contracting business owners. Westpac Supreme Award (2005 & 2006) for Franchise System of the Year.

Y

P 0-9-820 3800 M 0274 822 306 E j.worsley@lasergroup.co.nz W laserelectrical.co.nz franchise.co.nz – search: Laser

Home & Building

$30,000+

Multi award winning Laser Group assists plumbing contracting companies become more successful. Become part of NZ’s largest and fastest growing plumbing contracting network. Unique model suits existing successful plumbing, gasfitting, roofing and drainlaying business owners. Westpac Supreme Award (2005 & 2006) for Franchise System of the Year.

36 69

Y

P 0-9-820 3800 M 0274 822 306 E j.worsley@lasergroup.co.nz W laserplumbing.co.nz franchise.co.nz – search: Laser

LawnFix

Home Services

$85,000

Lawn care – everything except mowing them. We are the qualified pros.

2 2

Y

P 0-7-548 0008 franchise.co.nz – search: LawnFix

Leadership Management

Business & Commercial

$75,000

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

6 44+

N

P 0800 333 270 franchise.co.nz – search: LMA

Lifetime Distributors

Business & Commercial

$20,000

Display marketing company that delivers the convenience of shopping in the workplace.

23 150+

N

P 0-9-574 6695 franchise.co.nz – search: Lifetime

Lime Juice Bar

Food & Beverage

$25,000

NZ’s largest mobile juice and smoothie bar. Easy to operate business in the growing healthy food sector. Turnkey operation with full franchisor training and support. Great lifestyle business, you choose when you work. Suits fun loving people who are good communicators and enjoy healthy eating.

1 1

Y

M 027 222 7487 E franchise@limejuicebar.co.nz W limejuicebar.co.nz franchise.co.nz – search: lime

Business & Commercial

$50,000

LINK are franchised specialists in business sales, franchise re-sales and recruitment and sales of franchise opportunities. We provide professional, practical franchise advice to our clients. Seeking new LINK franchisees to join those in New Zealand, Australia and South Africa. Some business sales franchise opportunities available.

6 9

Y

Kevin Atkinson

P 0800 546 528 E link@linkbusiness.co.nz W linkbusiness.co.nz franchise.co.nz – search: Link

Liquorland

Retail

$250,000+

Specialist retailer of liquor and associated products. A member of FlyBuys nationally.

75 75

N

P 0-9-621 0875 franchise.co.nz – search: Liquorland

Little Dribblers

Leisure & Education

$44,000

An easily run part- or full-time business. Kids football for ages 1 – 7 years.

4 4

N

P 0-4-586 6006 franchise.co.nz – search: Dribblers

Little Kickers

Leisure & Education

$8,000+

Fun football (soccer) training for children aged 18 months – 7 years.

4 120+

N

P 0-9-815 8607 franchise.co.nz – search: Kickers

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

N

P 0-9-530 8090 franchise.co.nz – search: LJS Seafood

Lollipop’s Playland & Café

Leisure

$400,000$450,000

New Zealand’s most progressive childrens’ indoor playland. Offering unlimited parent supervised play. 6 23

Y

P 0-3 322 4549 franchise.co.nz – search: Lollipop’s

Company Contact Insultech Group Issimo

61

Laurie Blyth

Grant Rawlinson

Fenton Peterken

Kelly Sports

24

Paul Jamieson

Landmark Homes Paul Clarke

Laser Electrical Justin Worsley

Laser Plumbing Justin Worsley

Les Seiler

LINK

64

無憂的財務管理從 第83頁開始 74

讓您省時,省錢,省稅 Call Sophia Lin, 09 973 5245 www.franchiseaccountants.co.nz/chinese info@franchiseaccountants.co.nz

Westpac Directory of Franchising and Advertiser Index Franchise New Zealand Volume 23 Issue 01 Autumn 2014


L-P

FANZ

Investment Description from

No in NZ Globally

Page No.

Company Contact

⇒ Franchise and Business Opportunities Get more information

Lollypotz

Food & Beverage

$40,000

Lollypotz make and deliver chocolates beautifully presented like a bouquet of flowers.

3 43

N

P 0061 2 6280 9159 franchise.co.nz – search: Lollypotz

Lone Star

Food & Beverage

$600,000+

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

23 23

N

P 0-3-374 3208 franchise.co.nz – search: Lone Star

Home Services

$35,000

The Loven franchise offers eco-friendly oven, BBQ and range hood cleaning to the domestic and commercial sectors. Due to overwhelming success in the Auckland region we are now actively seeking franchisees nationwide. No experience necessary. Full training and ongoing support.

1 1

Y

P 0-9-296 5322 M 021 904 882 E richardl@loven.co.nz W loven.co.nz franchise.co.nz – search: Loven

Lush Lashes

Health & Beauty

$12,500

NZ specialist in eyelash extensions since 2008. Home-based or salon.

14 14

N

P 0800 Lush Lashes franchise.co.nz – search: Lush

Mad Butcher

Food & Beverage

$350,000$450,000

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

36 38

N

P 0-9-531 5910 franchise.co.nz – search: Butcher

MathZwise

Leisure & Education

$25,000+

Quality maths tutoring programme following NZ maths curriculum. Suits people with teaching background.

8 8

Y

P 0800 120 965 E kathy@mathzwise.co.nz W mathzwise.co.nz franchise.co.nz – search: MathZwise

McDonald’s

Food & Beverage

$750,000+

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

150

N

P 0-9-539 4300 franchise.co.nz – search: McDonald’s

Mediterranean Food Warehouse

Food & Beverage

$250,000$380,000

Specialist Mediterranean food store and wood-fired pizzeria and café.

3 3

Y

P 0-4-939 8100 franchise.co.nz – search: Mediterranean

Meticulous Home Services

Home Services

$13,000

New Zealand’s premier home services franchise offering a range of professional services.

35 35

Y

P 0-9-449 2004 franchise.co.nz – search: Meticulous

Food & Beverage

$300,000+

Mexicali Fresh has led the Mexican evolution in NZ since 2005. With giant American-style burritos and 5 Mexican beer in a colourful, casual atmosphere. We are recruiting energetic, enthusiastic franchisees 5 with a passion for great food and excellent customer service for our turnkey restaurants.

Y

M 021 750 070 E info@mexicalifresh.co.nz W mexicalifresh.co.nz franchise.co.nz – search: Mexicali

Midas Car Care

Auto Services

P.O.A.

New Zealand’s premier specialist automotive servicing franchise.

27 3000

Y

P 0-9-415 0234 franchise.co.nz – search: Midas

Mike Pero Mortgages

Financial Services

$50,000

Mortgage broker service representing major lending organisations.

42 42

Y

P 027 255 7090 franchise.co.nz – search: Mike Pero

Mini Tankers

Business & Commercial

$75,000 $150,000

On-site diesel refuelling service.

19 124

Y

P 0-9-622 2671 franchise.co.nz – search: Mini

Mobile Hand Car & Marine Grooming

Auto Services

$10,000 $39,000

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

17 17

N

P 0800 803 737 franchise.co.nz – search: Mobile Hand

Mr Fencer

Home & Building

$50,000+

Mr Fencer supplies and installs a wide range of residential and commercial fencing.

3 3

Y

P 0800 673 362 franchise.co.nz – search: Mr Fencer

Mr Plumber

Home & Building

$35,000

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

10 10

N

P 0800 677 586 franchise.co.nz – search: Mr Plumber

Mr Rental

Home & Building

$250,000+

Home appliance renting. Phone to learn about the magic of recurring revenue.

18 60

Y

M 027 839 8577 franchise.co.nz – search: Mr Rental

Mr Whippy

Food & Beverage

$120,000

One of New Zealand’s oldest and established franchises is seeking new franchisees.

50 50

N

P 021 333 333 franchise.co.nz – search: Mr Whippy

Food & Beverage

$69,000

New Zealand’s first mobile sushi franchise. Mr Woo is your chance to get ahead and control your lifestyle. Full training and support, low overheads, great margins. Franchises available throughout the upper North Island. Finance available.

2 2

N

M 021 781 250 E adam@sba.co.nz W mrwoosushi.co.nz franchise.co.nz – search: Mr Woo

Food & Beverage

$280,000

A speciality bakery café concept with a proven and established system.

36 259

Y

P 0-9-377 1901 franchise.co.nz – search: Muffin

Food & Beverage

$270,000

Muzz Buzz is a drive thru outlet serving quick, convenient, sensational coffee. We have a proven business model, designed to be simple and fun for owner-operators. Offering a turnkey operation with full training and business back up, excellent ROI.

2 56

N

P 0-9- 359 9068 M 021 112 7092 E dabetz@muzzbuzz.co.nz W muzzbuzz.co.nz franchise.co.nz – search: Muzz

New York Deli

Food & Beverage

$250,000

New York Deli is a themed sandwich bar that uses wholesome ingredients.

2 2

N

M 021 707 758 franchise.co.nz – search: New York

New Zealand Home Loans

Financial Services

$10,000 $100,000

Seeking confident self-starters with sales expertise and excellent communications skills.

52 52

N

P 0-7-839 0998 franchise.co.nz – search: Home Loans

New Zealand Letting Agents

Business & Commercial

$7,500

Property management services with full training and support for your business success. Wellestablished company providing on-going revenue in a thriving industry. Attributes required; excellent time management, passionate about property and business growth, experience in sales or business, good judgement and ability to think on your feet.

3 3

N

P 0800 103 203 E info@nzletting.co.nz W nzletting.co.nz franchise.co.nz – search: Letting

New Zealand Natural Ice Cream

Food & Beverage

$250,000

International ice cream parlour brand operating in 20 countries.

13 500+

Y

P 0-9-274 6168 franchise.co.nz – search: New Zealand Natural

Night ’n Day Foodstores

Retail

$300,000+

Night ‘n Day are the NZ grocery store market leaders. Seeking energetic operators.

45 45

Y

P 0-3-471 7660 franchise.co.nz – search: Night’n

NumberWorks’n Words

Education

$50,000

Specialist maths and English tuition company, fun learning experience, instruction from specialist tutors.

23 54

Y

P 0-9-522 0800 franchise.co.nz – search: Number

NZ Floor Sanding Co

Home & Building

$95,000 inc. vehicle

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

7 7

N

P 0800 272 888 franchise.co.nz – search: NZ Floor

Office Products Depot

Business & Commercial

P.O.A.

NZ’s leading independent business-to-business supplier of stationery supplies since 1989.

39 74

N

P 0-9-915 4544 franchise.co.nz – search: Office Products

Oil Changers

Auto Services

$150,000$250,000

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

8 29

N

P 0-3-343 6080 franchise.co.nz – search: Oil

56

Food & Beverage

$350,000

Oporto chicken and burgers are big on taste and even bigger on value. With 20 years in Australia and 11 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

Y

P 0-9-538 0006 M 021 301 648 E john@oporto.co.nz W oporto.co.nz franchise.co.nz – search: Oporto

24

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.

13 120

Y

P 0-3-982 7252 M 021 799 783 E matthew.everest@packsend.co.nz W packsend.co.nz franchise.co.nz – search: Pack Send

Loven

25

Richard Lailey

Kathy Redwood

Mexicali Fresh

38

Cindy Buell

Mr Woo Sushi

49

Adam Parore

Muffin Break Muzz Buzz

33

David Abetz

Industry

Vanessa Neale

Oporto New Zealand John Hyde

Pack & Send New Zealand Matthew Everest

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

Westpac New Zealand Limited

75


⇒ Franchise and Business Opportunities

Palazzo Kitchens & Applicances

67

Home & Building

$200,000

Palazzo are the largest retailer of German kitchens in New Zealand. Exclusive agents for Nobilia and 5 Rational, Germany’s largest manufacturers. Seeking entrepreneurial people with good business and 5 retail acumen, willing to provide exceptional service with quality showrooms to discerning professional clientele.

50

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.

50

Retail

$1m

Paper Plus

Retail

Para Rubber

No in NZ Globally

Company Contact

Page No.

P-R

FANZ

Investment Description from

Get more information

N

P 0-3-365 0751 M 021 978 348 E ron@palazzodesign.co.nz W palazzodesign.co.nz franchise.co.nz - Palazzo

N

P 0-9-451 9102 M 021 483 500 E murray.belcher@ufsltd.co.nz W palmers.co.nz franchise.co.nz – search: Palmers

Like the truly successful garden centres of Europe, Palmers Planet is as much a destination as a retail 1 store. This is an amazing opportunity for a business person looking for a new challenge. 1

N

P 0-9-451 9102 M 021 483 500 E murray.belcher@ufsltd.co.nz W palmers.co.nz franchise.co.nz – search: Palmers

$400,000

The Paper Plus Group is New Zealand’s largest franchised book and stationery retailer.

110 110

Y

P 0-9-261 0871 franchise.co.nz – search: Paper

Retail

$150,000$250,000

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

9 9

Y

P 0-9-532 8794 M 021 921 976 E vmoss@pararubber.co.nz W pararubber.co.nz franchise.co.nz – search: Para

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 140 franchisees servicing 1,240 clients including 320 bank branches, retailers, shopping centres, ports, cinemas, rest-homes, student hostels and schools.

140+ 140+

Y

P 0-9-376 7850 M 027 543 0233 E pbrown@paraserv.co.nz W service-is-paramount.co.nz franchise.co.nz – search: Paramount

Leisure Transport

P.O.A.

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

24 24

N

P 0-9-378 7940 franchise.co.nz – search: Pegasus

Food & Beverage

$250,000

Bakery café concept. Premium gourmet pies baked fresh daily with funny faces on them. Premium coffee and other bakery products. Easy business model. Strong support and training provided. Franchise system growing fast globally. Motivated, hard-working franchisees needed.

3 80+

N

M 021 281 7536 E franchise@pieface.co.nz W pieface.co.nz franchise.co.nz – search: Pie Face

Auto Services

$100,000+

New Zealand’s leading automotive repair franchise. Specialising in vehicle servicing, brakes, exhaust, 49 suspension and tyres. Well-recognised brand, established over 30 years ago. Full franchisor training 49 and support. We’re looking for owner-operators with automotive repair experience (essential), great communicators with a fantastic customer service ethic.

Y

P 0-9-634 3666 M 027 222 7487 E franchise@pitstop.co.nz W pitstop.co.nz franchise.co.nz – search: Pit Stop

Pizza Hut

Food & Beverage

$100,000

Established pizza chain with occasional resale opportunities available.

91

N

P 0-9-525 8700 franchise.co.nz – search: Pizza Hut

Plumb’In

Home & Building

$215,000$260,000

Plumb’In is the largest bathroom specialist bulk retail franchise in New Zealand.

6 6

Y

P 0-9-448 0280 franchise.co.nz – search: Plumb

PoolWerx Corporation

Home Services

$85,800

Recognised innovator, operating in the mobile pool and spa aftermarket.

1 300+

Y

P 0800 888 031 franchise.co.nz – search: PoolWerx

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+

Y

P 0-9-336 8284 E kayleen.smith@nzpost.co.nz W nzpost.co.nz franchise.co.nz – search: Postshop

Property InDepth

Home & Building

$45,000

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

10 10

N

M 021 477 673 franchise.co.nz – search: Property

Provender NZ

Food & Beverage

$65,000

Affordable upfront fees, great return on investment, easy to run and grow.

90+ 140+

N

P 0800 661 663 franchise.co.nz – search: Provender

Provista Balustrade Systems

Home & Building

$25,000

18 Provista Balustrade Systems – the choice is clear. New Zealand’s leading independent balustrade and pool fencing specialist. NZ developed for NZ conditions. Seeking motivated people with a sales 18 and marketing, or technical building or engineering, background to join our successful franchise team.

N

M 0275 961 264 E noel@provista.co.nz W provista.co.nz franchise.co.nz – search: Provista

Quest Serviced Apartments

Business & Commercial

$150,000$600,000

Serviced apartment accommodation facilities. Operating in New Zealand since 1997.

28 80

Y

P 0-9-366 9680 franchise.co.nz – search: Quest

Quinovic Property Management

Business & Commercial

$140,000 +

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

28 28

Y

P 0-4-801 7880 franchise.co.nz – search: Quinovic

Rainaway Spouting on the Spot

Home & Building

$45,000

Proven award-winning continuous spouting company selling to commercial and residential clients.

12 12

Y

P 0-9-265 2147 franchise.co.nz – search: Rainaway

Raincatcher Systems

Home & Building

$20,000 $60,000

Triple filter system. Sales, installation & servicing. Suitable as add-on or stand-alone business.

3 3

N

P 0800 724 622 franchise.co.nz – search: Raincatcher

Rapid Lawn

Home & Building

$40,000

Hydro-seeding and erosion control franchise servicing domestic and commercial sectors.

10 10

N

M 021 365 296 franchise.co.nz – search: Rapid

Realsure The House Inspectors

Home & Building

$65,000

Respected, strongly branded business providing trusted property reports for buyers and sellers. Proven systems, training and very clever technology makes it simply smart business. Suit motivated individual wanting remarkable business opportunity and lifestyle. Relevant technical qualification required for New Zealand inspection standard compliance.

3 3

N

P 0508 732 578 M 0275 455 045 E bruce@realsure.co.nz W realsure.co.nz franchise.co.nz – search: Realsure

Home & Building

$55,000+

Renovation agency specialising in arranging and managing residential renovation projects.

3 3

N

P 0800 780 790 M 021 919 844 franchise.co.nz – search: realtyReturns

$75,000

New Zealand’s leading renovation business. Limited franchise opportunities available throughout New Zealand. Seeking business-minded individuals who want to grow themselves a large profitable business. No building experience necessary.

26 26

Y

M 021 454 502 E jon.bridge@refresh.co.nz W refreshrenovations.co.nz franchise.co.nz – search: Refresh

Industry

Ron Neale Palmers Murray Belcher

Palmers Planet Murray Belcher

Vaughan Moss

Paramount Services

37

Paul Brown Bill Wu Pegasus Rental Cars Pie Face

11

Julian Field

Pit Stop Les Seiler

Kayleen Smith

Noel Priestley

Bruce Symon realtyRETURNS The Property Improvers Refresh Renovations Jon Bridge

26, Home & 27 Building

18 18

Re/Max New Zealand

Other

$20,000

Global real estate network.

50 6500

N

P 0-9-309 8478 franchise.co.nz – search: Remax

Rent a Dent

Rental Vehicles

$100,000

Rent a Dent are one of the largest rental vehicle networks in New Zealand.

24 25

N

P 0-9-275 2914 franchise.co.nz – search: Rent Dent

Food & Beverage

$150,000 min equity

Robert Harris Coffee Roasters is 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

Y

P 0800 426 333 M 021 518 435 E rodd@robertharriscafe.co.nz W robertharriscafe.co.nz franchise.co.nz – search: Robert Harris

Health & Beauty

$200,000

NZ’s biggest and most successful hairdressing franchise group.

50+ 50+

Y

P 0-9-358 4644 franchise.co.nz – search: Rodney Wayne

Home & Building

$175,000

Room2rent is a mobile cabin rental business which uses a unique chassis system to deliver and level cabins. Semi-passive investment offering great returns. Opportunities available throughout New Zealand. Full training provided.

2 2

N

P 0508 222 464 M 027 445 5528 E franchise@room2rent.net.nz W room2rent.net.nz franchise.co.nz – search: Room2rent

Robert Harris Coffee Roasters

45

Rod De Lisle Rodney Wayne Room2rent Bevan Billing

17

There are 7 reasons to talk to us BEFORE you sign up... SEE PAGE 83 76

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Westpac Directory of Franchising and Advertiser Index Franchise New Zealand Volume 23 Issue 01 Autumn 2014


R-T

FANZ

Investment Description from

No in NZ Globally

Page No.

Company Contact

⇒ Franchise and Business Opportunities Get more information

Leisure & Education

$7,500

Seeking active and passionate people to run their own Rugbytots franchise, NZ’s first rugby-specific 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.

1 50+

N

Annalie Marks

M 021 878 335 E annalie@rugbytots.co.nz W rugbytots.co.nz franchise.co.nz – search: Rugbytots

Saddlery Warehouse

Retail

$230,000$460,000

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

7 7

N

P 0-9-970 1058 franchise.co.nz – search: Saddlery

Select Cleaning

Home Services

$13,300

Home cleaning services franchise offering cleaning and lawn mowing businesses. Award winning system.

70+ 70+

Y

P 0-9-278 4930 franchise.co.nz – search: Select

Food & Beverage

$150,000

Shaky Isles Coffee Co. have been operating since 2007. It is a versatile café brand that offers coffee, 4 counter-food for lunch-on-the-run and café meals. Seeking high quality and savvy licensees for sector 4 and/or geographic licence territories on a multi-site basis.

N

P 0-9-529 9177 M 027 6435 279 E simon@pack.co.nz W shakyisles.co.nz franchise.co.nz – search: Shaky

Shed Boss

Home & Building

$95,000 +

ShedBoss are suppliers of high quality steel frame buildings.

12 37

N

P 0-7-579 1525 franchise.co.nz – search: ShedBoss

Shoe Clinic

Retail

$200,000$250,000

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

12 12

N

P 0-4-499 4495 franchise.co.nz – search: Shoe Clinic

Food & Beverage

$120,000$280,000

Network of premium cafes specialising in gourmet coffee and freshly prepared food.

32 32

N

P 0-9-444 4369 E murray.belcher@ufsltd.co.nz W sierracoffee.co.nz franchise.co.nz – search: Sierra

Signature Homes

Home & Building

$75,000 +

New Zealand’s leading branded custom home builders, established 1983.

19 19

Y

P 0-9-415 2468 franchise.co.nz – search: Signature

SimpliFood

Retail

$150,000

Strongly-branded food retail store franchise. Sells quality food ingredients and specialised food products. Full training and support provided. Suitable as an owner-operator business. We work with you on budget, timescale and skill base.

6 6

N

M 021 997 722 E rachael@simplifood.co.nz W simplifood.co.nz franchise.co.nz – search: SimpliFood

Food & Beverage

$80,000

Sell and distribute NZ’s favourite range of chilled juice and beverage products.

40+ 40+

Y

M 021 747 643 franchise.co.nz – search: Squeezed

30

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 enjoy the company of children.

100 100+

Y

P 0-9-576 6602 M 027 291 9904 E info@skids.co.nz W skids.co.nz franchise.co.nz – search: sKids

57

Business & Commercial

$38,000

44 A monthly accounting service specifically designed to provide regular support for the self-employed and small business operators. Retail locations accelerate client base growth. Accounting qualifications 44 not necessarily an advantage. Would suit someone with business experience and / or with sound bookkeeping knowledge, and good communication skills.

Y

P 0-9-378 0934 P 0800 114 SBA E adam@sba.co.nz W sba.co.nz franchise.co.nz – search: SBA

Other

$40,000

Work from home business making pure silver jewellery that captures loved ones’ finger, hand and foot prints. Exclusive territory. Seeking self-motivated, business savvy, customer service focused, computer literate people. You should be well presented with a flair for art/craft and like working with children.

3 140+

N

P 0061 1 800 762 557 M 0061 4881 05096 E franchising@smallp.net.nz W smallprint.com franchise.co.nz – search: Smallprint

Retail

$150,000$400,000

National sporting footwear retailer, specialising in top brand performance footwear.

14 14

Y

M 021 2424 515 franchise.co.nz – search: Smith’s

Auto Services

$52,000 +

Snap-on Tools franchisees sell the world’s best tools via mobile stores to professional tool users.

14 5000

Y

P 0800 SNAP ON E loretta.jones@snapon.com W snapontools.com.au franchise.co.nz – search: Snap-on

Snap Printing

Business & Commercial

$220,000 +

Australasia’s leading and most successful ‘on demand’ printing and copying franchise.

5 180

Y

P 0-9-379 0822 franchise.co.nz – search: Snap Print

Spagalimis Italian Pizzeria

Food & Beverage

$250,000

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

5 5

N

P 0800 113 113 franchise.co.nz – search: Spagalimis

Business & Commercial

$95,000

New Zealand’s and the world’s largest signs and graphics franchise. Our full service sign centres use the latest computerised technology to produce high quality custom signage. Operating since 1986. Now in 40 countries. Established locations may be available. No previous experience required. Financial assistance possible.

23 850

Y

P 0-9-577 4223 M 021 662 239 E enquiry@businessfranchise.co.nz W speedysigns.co.nz franchise.co.nz – search: Speedy

Spiderman

Home Services

P.O.A.

Pest control offering good opportunities to trade within the Spiderman network.

4 4

N

P 0-3-455 3793 franchise.co.nz – search: Spiderman

Step into Life

Health & Fitness

$34,995

Step into Life are the undisputed leaders in group outdoor personal training.

4 161

N

P 0800 134 136 franchise.co.nz – search: Step into Life

Stihl Shop

Retail

$100,000+

Looking for individuals with good business acumen and great customer service.

61 61

N

P 0-9-262 4000 franchise.co.nz – search: Stihl

Stirling Sports

Retail

$340,000

Established in 1964, Stirling Sports is New Zealand’s most trusted name in sports retail.

43 43

Y

M 021 748 144 franchise.co.nz – search: Stirling

Storage Box

Retail

$100,000

The preferred storage specialists in New Zealand, providing storage solutions to customers,

20 20

N

P 0-9-271 1025 franchise.co.nz – search: Storage

Streetwise Coffee

Food & Beverage

$110,000

Serving thousands of coffee-loving customers every day from designer coffee outlets.

16 16

Y

P 0-6-364 5733 franchise.co.nz – search: Streetwise

Stretch-n-Grow

Health & Fitness

$30,000

The Stretch-n-Grow programme promotes exercise and wellness for pre-schoolers.

1 250+

N

P 0-9-447 1827 franchise.co.nz – search: Stretch

Subway

Food & Beverage

$200,000

The world’s largest quick service submarine sandwich and salad franchise.

212 32K+

N

P: 0-9-415 3091 franchise.co.nz – search: Subway

SumoSalad

Food & Beverage

$450,000

The healthy fast food alternative. Join Australia’s fastest growing franchise.

2 80+

N

P: 0061 4 0105 5437 franchise.co.nz – search: SumoSalad

Super Liquor

Food & Beverage

$300,000

New Zealand’s largest retail liquor group offering convenience, value and exceptional service.

102 102

Y

P 0-9-523 4064 franchise.co.nz – search: Super Liquor

Super Shuttle

Business & Commercial

$90,000

New Zealand’s No. 1 nationwide airport passenger transport system. Owner-driver franchises.

120 120

N

P 0-9-522 5710 franchise.co.nz – search: Super Shuttle

Swimart Pool & Spa Services

Retail

$175,000

Retail store franchise providing all the needs for pool & spa owners.

4 63

Y

P 0800 928 373 franchise.co.nz – search: Swimart

TACA NZ

Business & Commercial

$65,000

Tungsten coating specialists. Supplier of hard facing services to a range of industries.

5 13

N

P 0061 3 8727 5000 franchise.co.nz – search: TACA

Tacklebox

Retail

$90,000

Tacklebox provides a shop in a box. Good business acumen needed.

2 2

N

M 021 231 2914 franchise.co.nz – search: tackle-box

Take Note

Retail

$300,000

Over 60 stores throughout New Zealand, all of which are locally owned and operated.

60+ 60+

N

P 0-9-261 0871 franchise.co.nz – search: Take Note

Temporary Protective Solutions

Home & Building

$25,000

Provides temporary protection to surfaces in construction and related industries.

4 4

N

P 0-9-528 5274 franchise.co.nz – search: Temporary Protective

The 2n’5 Franchise

Retail

$70,000

The 2n’5 Franchise is a proven retail concept that has successfully run since 1994. We are looking for 17 franchisees who will enjoy both a challenge and working with people on a daily basis. 17

N

P 0-6-757 2702 E rebekah@2dollarshop.co.nz W 2dollarshop.co.nz franchise.co.nz – search: 2n’5

Rugbytots NZ

Shaky Isles Coffee Co

38

Simon Ansley

Sierra Coffee

50

Murray Belcher

Industry

Rachael Marshall

Simply Squeezed sKids Dawn Engelbrecht

Small Business Accounting Adam Parore Smallprint NZ Ian Peebles

Smith’s Sports Shoes Snap-on Tools

59

Loretta Jones Les Coppin

Speedy Signs Grant Archibald

Rebekah Savage

32

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

77


Investment Description from

FANZ

Page No.

Company Contact

No in NZ Globally

⇒ Franchise and Business Opportunities

T-Y

Get more information

Business & Commercial

$100,000

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 or business owner, you will help businesses achieve more profitability, productivity and personal fulfilment.

3 150+

Y

Stephen James

P 0-9-446 0963 M 021 606 934 E sjames@thealternativeboard.co.nz W thealternativeboard.co.nz franchise.co.nz – search: Alternative Board

The Athlete’s Foot

Retail

$250,000

World’s leading sports footwear retailer. Exclusive fitprint technology and proven training.

9 600+

N

P 0-9-426 0000 franchise.co.nz – search: Athlete’s

16 200

N

P 0-9-475 9634 M 021 802 811 E nicka@cheesecake.com.au W thecheesecakeshop.co.nz franchise.co.nz – search: Cheesecake

Y

P 0-9-304 0008 M 027 526 3333 E b.jacobs@thecoffeeclub.co.nz W thecoffeeclub.co.nz franchise.co.nz – search: Coffee Club

The Alternative Board

The Cheesecake Shop

Industry

14, Food & 15 Beverage

$200,000 +

Colin Mellar

The Cheesecake Shop was established in 1991 and has developed into a network of 200 cake shops operating across Australia, New Zealand, Poland and the United Kingdom. With The Cheesecake Shop franchise, you don’t need to be a baker. Our excellent training course teaches you how to make our wonderful desserts in just 4 weeks.

The Coffee Club

58

Food & Beverage

$300,000$450,000

One of NZ’s fastest growing café and restaurant franchises, with a comprehensive menu and relaxed 50 dining experience. Proven track record with further expansion planned. Take advantage of a proven 330+ track record, great training and ongoing support. Ideal if you are passionate about people and building customer loyalty.

43

Food & Beverage

$98,500

New Zealand’s number one mobile coffee company. The Coffee Guy franchise opportunity is simple, fun and flexible.With full training and support, a stand-out brand, and minimum sales guaranteed, you can’t go wrong. We have franchises available throughout the country.

56 56

N

P 0-9-973 4821 M 021 331 243 E david.bernard@rfg.com.au W thecoffeeguy.co.nz franchise.co.nz – search: Coffee Guy

The Pita Pit

Food & Beverage

$225,000$380,000

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

7 300+

N

P: 0-9-486 4664 franchise.co.nz – search: Pita Pit

The Sweetest Little Chocolate Shop

Retail

$230,000$290,000

The leading retailer of quality NZ-made chocolate and confectionery.

2 2

N

P 0-9-521 6062 franchise.co.nz – search: Sweetest

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

N

P 0061 3 9480 1030 franchise.co.nz – search: Theobroma

Business & Commercial

$59,000

This is a long-term extremely profitable opportunity where you are fully trained and supported to grow 5 your own successful consulting business. Seeking business-consulting franchisees. Would suit CEOs, 31 CFOs, professionals, directors, ex-corporates ex-business owners and others wanting more lucrative, fulfilling and less stressful career alternatives.

N

M 027 509 3385 E david@thextonarmstrong.com.au W thextonarmstrong.com.au franchise.co.nz – search: Thexton

Health & Beauty

$200,000

A Toni&Guy franchise offers a unique opportunity to join hairdressing’s only worldwide super brand. Toni&Guy are looking for people with a passion for excellence and desire to be at the forefront of NZ hairdressing.

1 425

Y

P 0-9-847 9219 E franchise@toniandguy.co.nz W toniandguy.co.nz franchise.co.nz – search: Toni

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.

24 130

Y

Martin Smith

P 0800 759 363 M 021 721 430 E info@touchupguys.co.nz W touchupguysfranchise.co.nz franchise.co.nz – search: Touch Up

Toyworld

Retail

$200,000$500,000

Join New Zealand’s largest independent toy retailing group. Toyworld are an iconic and respected brand operating for over 36 years. Opportunities exist for driven, experienced individuals who are passionate about retailing and want to own and operate their own business.

34 200

N

P 027 283 2222 E geoffmoth@arnz.co.nz W toyworld.co.nz franchise.co.nz – search: Toyworld

Agriculture

$80,000 +

Ultra-Sonic animal pregnancy scanning. Mobile rural lifestyle working with animals.

19 19

Y

P 0-7-889 3395 franchise.co.nz – search: Ultra Scan

Retail

$200,000

United Sweets is the biggest and best American and international confectionery retailer in New Zealand. Join the revolutionary new franchise system sharing online revenue. If you’re looking for a great investment, or to take control of your own future, look no further.

5 5

N

M 027 522 5259 E garrick@unitedsweets.co.nz W unitedsweets.co.nz franchise.co.nz – search: United Sweets

Retail

$250,000

NZ’s leading video rental retailer. National coverage. New and existing franchises available.

100+ 100+

Y

P 0-7-853 7035 franchise.co.nz – search: United

Food & Beverage

$400,000

Value for money buffet restaurants, great for the special occasion or groups. Established in 1989. Proven model. Suitable for metropolitan location. Solid business opportunity for person/s with energy and preferably hospitality background. Full training and ongoing support provided.

11 11

N

Murray Belcher

P 0-9-451 9102 M 021 483 500 E murray.belcher@ufsltd.co.nz W valentines.co.nz franchise.co.nz – search: Valentines

Versatile Homes and Buildings

Home & Building

P.O.A.

Own your own business and build your wealth with our support. Versatile Homes and Buildings are one of NZ’s biggest building companies. As a franchisee you’ll have Versatile backing you all the way, with a strong support system and quantifiable financial benefits.

35 35

N

M 0274 970 128 E franchise@versatile.co.nz W versatile.co.nz franchise.co.nz – search: Versatile

Retail

$200,000$1m

Operation of home entertainment centres specialising in rental and sale of videos, games, DVDs. In operation since 1991. New locations and existing stores currently available.

125 1010

N

P 0-9-302 2229 M 021 955 834 E kevinp@videoezy.co.nz W videoezy.co.nz franchise.co.nz – search: Video Ezy

Home Services

$15,000 +

Professional home services franchise providing flexible, multi-serviced businesses. Work either indoors or outdoors. Exclusive territories with established customers. Providing a lifestyle choice for over 30 years. Actively seeking area master franchisees for both lawnmowing and cleaning throughout NZ. Comprehensive training and support provided.

120+ 1200

Y

P 0-9-263 0544 M 021 489 861 E estelle@viphomeservices.co.nz W viphomeservices.co.nz franchise.co.nz – search: VIP

Waxnlaser

Health & Beauty

$35,000+ clinic

Specialist beauty business. Become the market leader by focusing on doing one thing really well.

3 3

N

P 0-4-565 0353 franchise.co.nz – search: WaxnLaser

Wet-seal

Home & Building

$50,000

Wet-seal waterproofing and underfloor heating provides leading products. Full training and support.

8 47

Y

P 0800 436 000 franchise.co.nz – search: Wet-seal

Food & Beverage

$250,000$400,000

Turn-key opportunities available nationwide with this iconic bagel and pizza franchise. Seeking people 6 committed to maintaining a high level of excellence. Enjoy consistent growth on your investment. Full 6 training, operational and marketing support offered.

N

M 021 272 2422 E sam.rama@whollybagels.co.nz W whollybagels.co.nz franchise.co.nz – search: Bagels

Home & Building

$100,000

Window Treatments manufacture and supply blinds, awnings, shutters, insect screens. Franchise opportunities exist in Gisborne, Invercargill and the West Coast of New Zealand. If you are enthusiastic, well-presented, practical and want to be your own boss we want to talk to you.

21 21

N

M 021 338 031 E Graeme.rose@window-treatments.co.nz W window-treatments.co.nz franchise.co.nz – search: Window Treatments

Food & Beverage

$64,950

We transplant the café experience into the workplace using state-of-the-art commercial grade automatic bean-to-cup espresso machines providing quality coffee. We provide a semi-passive income based on one day of work but equivalent to a week’s salary with lifestyle benefits.

17 183

Y

Allan Parker

M 021 875 431 E allan.parker@xpressodelight.co.nz W xpressodelight.co.nz franchise.co.nz – search: Xpresso

YB12 - Best Year of Your Life

Business & Commercial

$1,950 $3,950

Individual, business and corporate coaching - YB 12 Your Best 12 Months Ever programme.

22 120

N

P 021 0291 8397 franchise.co.nz – search: YB12

Yard Art & KiwiMoulds

Home & Building

$5,000

Make your own quality concrete garden ornaments. Licensed or unlicensed package options.

12+ 40+

N

P 0-9-473 3175 franchise.co.nz – search: Yard Art

Brad Jacobs

The Coffee Guy David Bernard

Thexton Armstrong

20

David Thexton

Toni&Guy

Touch Up Guys

68

Geoff Moth

Ultra-Scan United Sweets

65

Garrick Smart

United Video Valentines Restaurants

50

Andrew Walker Video Ezy Kevin Peterson Chris Osborne V.I.P. Home Services

47

John & Estelle Logan

Wholly Bagels & Pizza

13

Sam Rama

Window Treatments Graeme Rose

Xpresso Delight

8

Find the right franchise by starting with the right people. 78

Westpac Directory of Franchising and Advertiser Index Franchise New Zealand Volume 23 Issue 01 Autumn 2014

Westpac New Zealand Limited


Website Contact Email

Angel Berry Jeff Boxen

⇒ National Master Licence Opportunities

No Globally

Company Name Contact Name

Investment Required

Description

P: 0044 1619 800 586 M: 0044 7983 452 859 jffbxn@aol.com www.angelberry.me

Food & Beverage

Angel Berry have brought a new dimension to the frozen yogurt market as their ground-breaking selfservice experience puts them in a league of their own. Seeking NZ master developer. With each Angel Berry parlour expected to bring in profits of £150,000 to £200,000 a year, there should be an income stream to satisfy even the most demanding of business entrepreneurs.

2

UK£ 25,000

By Nature Dimtsas Vasileios

P: 0030 2414 05207 M: 0030 69322 15994 info@bynature.gr www.bynature.gr/en

Retail

By Nature was founded in 2008 to market natural cosmetics, wooden toys and handcrafted products. The company’s philosophy is based on the contribution to environmental improvement and raising awareness by promoting ecological consciousness. The total investment fee is €50,000. A small investment that ensures a quick return on investment and strong performance.

5

Euros 50,000

Cookie Man David Newport

P: 0-9-377 7735 M: 021 304 414 info@switchbusiness.co.nz www.switchbusiness.co.nz

Food & Beverage

Cookie Man is a premier fresh cookie retailer selling delicious baked cookies, coffee and other speciality goods. Cookie Man offers a “recessionary-proof” sweet-treat menu. Cookie Man offers complete initial training, updated tools and resources, ongoing marketing and operational support but no ongoing royalties.

70+

NZ$ 245,000

Cub Karts Jeff Boxen

P: 0044 1619 800 586 M: 0044 7983 452 859 jffbxn@aol.com www.pacerleisure.co.uk

Leisure

After 16 years of UK success, and as a result of ever-increasing enquiries for our leisure karts, we are now seeking to appoint carefully selected master distributors for all countries. Additional income steams include merchandising, operating venues, sale of regional licenses, royalties, sale of Cub Kart packages and rental.

New

UK£ 47,500

FranNet William Edwards

P: 001 949 224 3896 M: 001 949 375 1896 bedwards@egs-intl.com www.frannet.com

Business Services

FranNet provides guidance, information, systems, training and support to individuals who are interested in purchasing a franchised business through our exclusive matchmaking process. Master licence available for New Zealand. Business service sector experience preferred.

60

US$ 200,000

Fresh Healthy Vending David Newport

P: 0-9-377 7735 M: 021 304 414 info@switchbusiness.co.nz www.switchbusiness.co.nz

Food & Beverage

Fresh Healthy Vending is the world’s leading healthy vending franchisor. They pioneered the concept of healthy vending machines stocked with fresh, tasty and natural snacks. Looking for a joint venture partner/master franchisor in NZ. Offering state-of-the-art machines, nutritious product choices and ongoing training and support.

2,300

US$ 150,000

Geeks on Call Aaron Kernbach

M: 0061 4 0884 7524 aaron@geeksoncall.com.au www.geeksoncall.com.au

Computer

Geeks on Call is Australia’s leading trusted advisor for computer repair and IT support to small business and residential clients. If you have excellent communication and business development skills, are passionate about managing teams to achieve their best we would love to hear from you.

27

NZ$75,000

Get Threaded Liz See

P: 0061 4 1300 4127 M: 0061 4 1300 4127 franchise@getthreaded.com.au www.getthreadednow.com

Health & Beauty

Get Threaded is an exciting international business leading the industry in the ancient art of hair removal by the technique known as threading. Popular all over the world. We are looking for entrepreneurs who want to be part of a cutting-edge niche concept for Get Threaded b row & beauty bars and salons, offering threading and other beauty services.

30+

AU$ 100,000+

Golf Etc. Robert Shaw

P: 001 949 224 3896 M: 001 949 419 7429 rshaw@egs-intl.com www.golfetc.com

Retail

Golf Etc., the fastest-growing golf retail franchise in America, provides golf enthusiasts with personalised service, performance club fittings, professional repairs and club evaluations. Master licence available for New Zealand. Sports and/or retail sector experience preferred.

60

US$ 400,000

Lolita S.A. Michel Cohen

P: 00598 2309 0890 mcohen@lolitavirtual.com www.lolita.com.uy

Retail

Fashion franchise system. Most successful Latin American chain of ladies’ fashion stores already operating in 12 countries. Seeking master franchisees for the New Zealand and Australian markets.

75

US$ 150,000250,000

Magnetite Ian Harkin

P: 0061 2 9565 4070 M: 0061 410 684 093 ian.harkin@magnetite.com.au www.magnetite.com.au

Home & Building

Distribution of retrofit double-glazing and associated products. Seeking NZ master licensee. Key roles will include marketing, recruitment, supplier management, fabrication, installation, system compliance and customer service.

12

AUD$ 150,000

Medichem International Jeff Boxen

P: 0044 1619 800 586 M: 0044 7983 452 859 jffbxn@aol.com www.medichem-int.co.uk

Health & Beauty

Regional distributors required for exclusive range of hair and beauty products. Best selling products in company’s 20 year history. Opportunity to get in at the beginning of a future international brand.

6

P.O.A.

Memento Frames Jeff Boxen

P: 0044 1619 800 586 M: 0044 7983 452 859 jffbxn@aol.com www.mementoframes.co.uk

Retail

Memento Frames is a business that boasts repeat order customers in every business and private sector. Looking to appoint an exclusive country distributor. This business is not seasonal and never goes out of fashion. The potential markets are only limited by the boundaries of your own imagination.

New

UK£ 55,000

Microwave Safety Systems Jason Crosson

P: 0061 2 9716 5024 M: 0061 411 536 519 jasonc@microwavesafe.net www.microwafesafe.net

Business & Commercial Services

MSS is a specialist microwave oven radiation-testing organisation. Our 3-point analysis ensures workplaces are compliant with permissible radiation emission limits outlined in Australian/New Zealand standards and NZ regulations. After 17 years servicing clients in Australia, MSS now seeks a master franchisee for New Zealand, with good business and communication skills and a drive for success.

4

AU$ 85,000

Ready Steady Go Kids Stuart Derbyshire

P: 0061 1 300 766 892 M: 0061 411 837 163 franchise@readysteadygokids. com.au www.readysteadygokids.com.au

Leisure & Education

Australia’s leading multi-sport and exercise programme for pre-school aged children (2.5 – 6 years). More than 90 locations in Australia, Singapore and the UK. Fun, flexible and rewarding. Love working with kids? Passionate about sports and physical activity? Understand the importance of customer service? If you answered yes, Ready Steady Go Kids would love to hear from you.

90+

AU$ 55,000

Right At Home Robert Shaw

P: 001 949 224 3896 M: 001 949 419 7429 rshaw@egs-intl.com www.rightathome.net

Health

Right At Home provides certified, trained home care for aging or disabled persons as well as temporary staffing solutions for health care facilities. Master licence available for New Zealand. Experience in the health care sector is not required.

60

US$ 300,000

StreetStadia Jeff Boxen

P: 0044 1619 800 586 M: 0044 7983 452 859 jffbxn@aol.com www.streetstadia.co.uk

Leisure

StreetStadia transforms an open space into a dynamic sports and activity arena in a matter of minutes. As a master distributor you will have sole distribution rights for this amazing product as used by some of the biggest names in football.

New

UK£ 48,000

The Melting Pot William Gabbard

P: 001 949 224 3896 M: 001 303 829 4227 bgabbard@edwardsglobal.com www.themeltingpot.com

Food & Beverage

The Melting Pot has defined the fondue restaurant niche across the US for more than three decades. Fondue is a fun and interactive dining experience at almost 150 locations in the US. Restaurant experience not required.

150

US$1m

See page 10

See page 10

Winter issue 27 June 2014

Focus on:

⇒ Home ⇒ Building ⇒ Renovation If it’s time to sell your existing franchise, list it on-line at www.franchise.co.nz New Zealand’s leading franchise website.

BDS Chartered Accountants Chartered Accountants and Business Advisors Innovative solutions to enhance your wealth and lifestyle • • • • • •

Annual Accounts & Tax Management Accounts Xero Setup & Training Payroll & Accounts Due Diligence Trust Administration

For print & online advertising contact June on 0-9-473 4444 june@franchise.co.nz www.franchise.co.nz

New Zealand

The buy your own business magazine

NZ’s best-read franchise recruitment media

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

• • • • • •

Forecasts & Cashflows Tax Planning & Structures Rental Accounts Sale & Purchase of Business Company Formations Loan Applications

Phone now for free initial consultation! (09) 366 1822 Level 12, 17 Albert Street Auckland CBD www.taxmaster.co.nz petert@taxmaster.co.nz

Find more info franchise.co.nz

Industry

79


Service

Description

Location

FANZ

Page No

Company Name

⇒ Specialist Advisors

Get more information

New Zealand & Australia

N

P 0-9-366 1822 M 021 882 430 E petert@taxmaster.co.nz W taxmaster.co.nz franchise.co.nz – search: BDS

Y

P 0-4-569 9069 E liz.leprou@crowehorwath.co.nz W crowehorwath.co.nz franchise.co.nz – search: Crowe

ACCOUNTANTS BDS Chartered Accountants Peter Taylor

79

Services include preparation of tax returns and GST for franchisees and franchisors, tax planning and structure advice. Over 20 years’ experience in accounting and tax, serving small to medium sized businesses.

Crowe Horwath Liz Le Prou

80

Crowe Horwath (previously WHK) provides specialist accounting and business advisory services to the New National Zealand franchise industry. Specialist franchise team with vast experience. Proud members and gold sponsors of the Franchise Association of New Zealand events.

Franchise Accountants Philip Morrison

62, Save time, money and tax by benefiting from our specialist franchise advice and proven accounting solutions. 83 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

Y

P 0800 555 8020 M 021 229 9657 E pmorrison@franchiseaccountants.co.nz W franchiseaccountants.co.nz franchise.co.nz – search: Franchise Accountants

Inspired Accountants Craig Weston

80

As CA’s we do the numbers, but we do much more. We take a holistic goal-orientated approach and help develop strategies to achieve those goals. We will work to get the best outcome for you. We will be upfront with costs and you will see the benefits.

National

Y

P 0-9-309 2561 E craig.weston@inspired.co.nz W inspired.co.nz franchise.co.nz – search: Inspired

Markhams Clarke Craw Barry O’Donnell

With 65 years’ experience in the Otago community, being locally owned and operated we offer practical and solution-oriented accounting services for franchisees. Our focus is on our clients and the welfare of their business and financial interests. First meeting free.

Dunedin & Otago

Y

P 0-3-477 0032 E barry.odonnell@markhams.co.nz W markhams.co.nz franchise.co.nz – search: Markhams

Staples Rodway Christchurch Jon Robertson Dave McCone

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

Y

P 0-3-343 0599 E jrobertson@srchch.co.nz W staplesrodway.com franchise.co.nz – search: Staples

Young Read Woudberg Eric Woudberg Raimarie Pointon Steve Read

Tauranga, 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 Bay of Plenty to easily accessible, personal service focusing on client needs, building individual relationships and providing added value solutions.

Y

P 0-7-578 0069 M 027 570 1172 E accountants@yrw.co.nz W yrw.co.nz franchise.co.nz - Woudberg

FINANCE PROVIDERS 66

ANZ is dedicated to being the leader in the provision of financial services to the New Zealand franchise sector. We deliver this through a nationwide team of Business Managers in all major centres throughout New Zealand. Our Business Managers assist existing and start-up franchise business owners achieve their shortterm and future business needs.

National

Y

P 0800 39 40 41 M 027 232 1505 E franchising@anz.com W anz.co.nz franchise.co.nz – search: ANZ

ASB Craig McKenzie

44

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

Y

P 0800 272 476 M 021 805 425 E craig.mckenzie@asb.co.nz W asb.co.nz franchise.co.nz – search: ASB

BNZ Warren Sare

12

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

Y

P 0800 ASK BNZ M 029 222 0430 E warren_Sare@bnz.co.nz W bnz.co.nz/franchise franchise.co.nz – search: BNZ

Silver Chef Trent Parkinson

36

Silver Chef is a hospitality equipment finance company that offers a unique Rent-Try-Buy solution which allows New customers flexibility whilst conserving their capital. With almost 30 years in the industry, Silver Chef has helped Zealand & over 20,000 customers grow their business, with their Rent-Try-Buy solution. Australia

Y

P 0800 453 010 M 0275 123 063 E tparkinson@silverchef.co.nz W silverchef.co.nz franchise.co.nz – search: Silver Chef

Westpac New Zealand Ltd Daniel Cloete

22, Westpac is New Zealand’s most experienced bank in franchising and the only bank offering dedicated 84 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, Chris Gavin Waikato – Connie Short Lower North Island – Nick Virtue, Mick Robinson Christchurch/South Island – Mark Schrader Otago/Southland - Graeme Wyllie

Y

P 0800 177 007 E franchising@westpac.co.nz W westpac.co.nz franchise.co.nz – search: Westpac

Find more info franchise.co.nz

ANZ Sean Dwyer

Crowe Horwath knows the franchise business from all angles Liz Le Prou Whether you’re a franchisor or franchisee, or looking for a way to bring both sides together, our New Zealand network of offices together with 04 587 0826 the New Zealand Specialist Franchise Team has your business covered. 021 529 759 liz.leprou@crowehorwath.co.nz Proud to be Members and Gold Sponsors of www.crowehorwath.co.nz the Franchise Association of New Zealand.

Your one stop franchise shop

Crowe Horwath NZ (formerly WHK)

Award-winning SERVICE Award-winning RESULTS SEE PAGE 83

80

National

Chartered Accountants specialising in franchising As members of the Franchise Association of New Zealand we assist franchisors and franchisees with: Benchmarking reports Due diligence reports Liaison with other advisors Budget and (banks, lawyers, consultants) cashflow projections Tax advice Financial accounting Best structure for the business and reporting systems (company/trust etc.)

Craig.Weston@inspired.co.nz Phone 0-9-309 2561 Fax: 0-9-309 7798 Mobile: 021 309 309

Financial peace of mind starts here 0800 555 8020 www.franchiseaccountants.co.nz/coffee info@franchiseaccountants.co.nz

Westpac Directory of Franchising and Advertiser Index Franchise New Zealand Volume 23 Issue 01 Autumn 2014


Description

Location

FANZ

Page No

Company Name

⇒ Specialist Advisors

Get more information

Y

P 0-9-308 8070 M 0274 779960 E miles.as@ascolegal.co.nz W ascolegal.co.nz franchise.co.nz – search: ASCO

LAWYERS ASCO: Agmen-Smith Lawyers Miles Agmen-Smith

48

National & 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 Worldwide team. Wide experience in all aspects of franchising. Extensive network of franchising contacts NZ and internationally. 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

Y

P 0-9-950 3880 E franchise@bottinglegal.com franchise.co.nz – search: Botting

Deirdre Watson - Barrister

25 years’ experience in litigation, disputes, court cases and mediation. Franchise dispute specialist.

National

Y

P 0-9-309 6988 M 021 791 740 E deirdre.a.watson@xtra.co.nz W deirdrewatson.co.nz franchise.co.nz – search: Deirdre

Gaze Burt Michael Bright

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

Y

P 0-9-414 9800 E michael.bright@gazeburt.co.nz W gazeburt.co.nz franchise.co.nz – search: Gaze

Gibson Sheat Lawyers Claire Byrne Dave Robinson

81

We provide comprehensive advice on the legal aspects of franchising to both franchisors and franchisees. For details see our website. We can quickly establish the issues each party is likely to encounter and address these at the outset before they become problems.

Greater Wellington

Y

P 0-4-916 7483 M 029 916 7483 E claire.Byrne@gibsonsheat.com W gibsonsheat.com franchise.co.nz – search: Gibson

Goodwin Turner Commercial Lawyers Scott Goodwin

3

National & 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 Worldwide protection. Team of leading law experts that are well-known in the franchise industry and who focus on making it possible.

Y

P 0-9-973 7350 M 027 700 7396 E scott@goodwinturner.co.nz W goodwinturner.co.nz franchise.co.nz – search: Goodwin

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.

South Island and National

Y

P 0-3-352 2293 M 021 524 890 E mark.sherry@harmans.co.nz W harmans.co.nz franchise.co.nz – search: Harmans

All aspects of franchising and business advice including disputes resolution. Advisors to franchisees and franchisors locally and nationally. Experienced in advising the franchise industry. Franchisor and franchisee advice. Full commercial advice.

Bay of Plenty and National

Y

P 0-7-578 0059 E david@harris-tate.co.nz W harristate.co.nz franchise.co.nz – search: Harris

Wellington and lower North Island experts in the specialised field of franchising and licensing. We are practical, personable and professional. We can help both franchisor and franchisee clients with all their legal requirements.

Wellington and National

Y

P 0-4-499 7809 M 0272 882 339 E hamish.walker@izardweston.co.nz W izardweston.co.nz franchise.co.nz – search: Izard

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 & Overseas

Y

P 0-9-307 3324 E info@mblaw.co.nz W mblaw.co.nz franchise.co.nz – search: MacDonald

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.

Auckland & Y National

P 0-9-579 3526 M 027 564 9942 E sarah@thefranchiselawyer.co.nz W thefranchiselawyer.co.nz franchise.co.nz – search: Pilcher

Over 30 years’ franchising and licensing experience. 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. Awarded Franchise Law Firm of the Year for New Zealand – Dealmakers Law Awards 2012 – Winner.

National & Worldwide

Y

P 0-9-308 9925 M 021 276 9898 E stewart@germann.co.nz W germann.co.nz franchise.co.nz – search: Stewart

Description

Location

FANZ

Botting Legal Bradley Botting

Get more information

Visual design Project management Implementation

Engage CDQ as Your Creative Director to obtain effective visual leadership and quality materials for your franchise brand. Brief writing, planning, creative and implementation for advertising, promotional, recruitment and operations materials. Over 20 years’ experience with leading franchise brands..

National

N

P 0508 CDQ CDQ M 021 64 45 45 E paul@cdq.co.nz W cdq.co.nz franchise.co.nz – search: CDQ

Commercial Property Consultants

An authority on retail developments and project leasing throughout New Zealand. Our national reach ensures an unsurpassed record in successfully leasing and selling a range of retail offerings from large format, trade-based retail, to supermarket/convenience centres, small format lifestyle, to high street speciality/ fashion.

National

N

P 0-9-488 4784 M 021 248 0060 E deborah.dowling@colliers.co.nz W colliers.com franchise.co.nz – search: Colliers

Email Branding

We deliver standardised, professionally branded, business email signatures by applying a feature-rich consistent template to every company email communication. Standardise your most popular business communication tool. Unlock the rich sales potential on every email with tracked promotional messaging.

National

N

M 027 938 0840 E jason@cumulo9.com W cumulo9.com franchise.co.nz – search: Cumulo9

Harmans Lawyers Mark Sherry

Harris Tate David Foster Katrina Hulsebosch Oliver Moorcroft

81

Izard Weston Hamish Walker

MacDonald Bailey Law Rory MacDonald

82

Sarah Pilcher The Franchise Lawyer Sarah Pilcher 24

Page No

Stewart Germann Law Office, Lawyers and Notary Public Stewart Germann Harshad Shiba

Company Name

Service

⇒ Specialist Advisors

CDQ Your Creative Director Paul Donovan

Colliers International Deborah Dowling Jessica Martin

Cumulo9 Jason Simons

54

Find more info franchise.co.nz

CONSULTANTS AND OTHER SERVICES

For Franchise Advice in the Wellington region

Have a chat with our legal experts:

Claire Byrne Dave Robinson

04 916 7483 04 916 6307

www.gibsonsheat.com

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

81


Service

Description

Location

FANZ

Page No

Company Name

⇒ Specialist Advisors

Get more information

Y

P 0-9-265 2657 M 021 229 9657 E pmorrison@franchiseaccountants.co.nz W franchiseaccountants.co.nz franchise.co.nz – search: Franchise Accountants

Franchise Accountants Philip Morrison

62, Franchise 83 Consultants & Accountants

Specialist advice on franchise system development, feasibility studies, recruitment, documentation, manuals, ongoing mentoring, strategic planning and partnering to grow your business.

National

Franchise Association of New Zealand Graham Billings

23

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

P 0-9-274 2901 E contact@franchise.org.nz W franchiseassociation.org.nz franchise.co.nz- search: Franchise Association

Franchise Coach David McCulloch Fiona Macky

82

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 & Y Worldwide Australia 1800 834 440

P 0800 4FRANCHIS M 021 943 776 P 0-9-580 1556 M 021 616 519 E davidm@berkshire.co.nz E fionam@berkshire.co.nz franchise.co.nz – search: Coach

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. “The Franchise Coach” has been awarded the agency for the Franchise Relationship Institute’s products, including Greg Nathan’s popular books.

Australia & New Zealand

N

P 0800 4FRANCHIS M 021 943 776 P 0-9-580 1556 M 021 616 519 E davidm@berkshire.co.nz E fionam@berkshire.co.nz W franchiserelationships.com franchise.co.nz – search: Relationships

Y

P 0-9 578 2318 M 0274 966 901 E info@franchisesolutions.co.nz W franchisesolutions.co.nz franchise.co.nz – search: Franchise Solutions

Franchise Relationships Institute David McCulloch Fiona Macky

Franchise Solutions Peter Montgomery JP Thomas Grube

82

Consultant

Innovative and effective solutions from international skilled franchise advisors. National We have been franchisors/franchisees/franchise support managers so we really understand franchising. Quality advice without obligation. Leading mentors, coaches, facilitators, advisors, and mediators with over 15 years’ experience in franchising.

Franchize Consultants (NZ) Win Robinson Callum Floyd

32

Franchise Consultants

Specialists in franchise development, strategic planning, legal briefs, systems and manuals, recruitment processes and documentation, ongoing mentoring and sound advice on franchising and licensing. Recognised as New Zealand’s leading management consultancy specialising in franchise development. Experience with many of NZ’s top franchised companies.

National & Y Worldwide

P 0-9-523 3858 E win@franchize.co.nz W franchize.co.nz franchise.co.nz – search: Franchize

Retail Real Estate

We specialise in finding suitable retail premises for franchisors and franchisees in New Zealand. We also manage a number of shopping centres throughout New Zealand.

National

N

P 0-9-363 0286 M 021 597 856 E chris.beasleigh@ap.jll.com W joneslanglasalle.co.nz franchise.co.nz – search: Jones Lang

Y

P 0-9-579 9226 E kevin@linkbusiness.co.nz W linkbusiness.co.nz franchise.co.nz – search: Link

LINK Business Franchising Kevin Atkinson

22, Franchisee 63 Resales & Recruitment

LINK are 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, in more locations, and has more businesses for sale than any other brokerage.

National

MEGA Services Franchise Consultants Ray Lindstrom

48

Franchise Consultants

MEGA Services Franchise Consultants are the most professional and cost effective way of developing your franchise documents and recruiting franchisees to expand your business world wide. Expand your business with MEGA Services Franchise Consultants now! Check out our free Feasibility Report – can you franchise your business? (normal value $1,500).

National & N Worldwide

Switch Business David Newport

10

Business Brokers

Business broker with 15 years’ experience. Able to provide information and advice on National both buying and selling franchises. Our comprehensive service managing the entire sales process is essential to completing a successful transaction on your behalf.

N

P 0-9-377 7735 M 021 304 414 E info@switchbusiness.co.nz W switchbusiness.co.nz franchise.co.nz – search: Switch Business

The Business Engine Chris Reid

60

Business Growth Specialists

Business growth specialists with franchisor experience. If your business is not reaching its potential we can help — take our free 6-cylinder diagnostic review. We have recent hands-on experience in franchising retail, financial services and branding. Use our knowledge to help your business grow.

Greater Auckland

N

P 0800 100 059 M 0274 937 492 E info@thebusinessengine.co.nz W thebusinessengine.co.nz franchise.co.nz – search: Business Engine

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

Y

P 0-9-526 3024 M 0274 992 413 E wayne@waipunahotel.co.nz W waipunahotel.co.nz franchise.co.nz – search: Waipuna

Waipuna Hotel & Conference Centre Wayne Billings

• Mentoring • Innovative Innovative • Coaching from solutions solutions • Facilitating from franchise franchise experts • Advising experts

P 0800 006 444 M 027 2525 334 E ray@megaservices.co.nz W megafranchise.co.nz franchise.co.nz – search: Mega Services

The award that spells confidence and trust

Phone 09 578 2318 Email info@FranchiseSolutions.biz Web www.FranchiseSolutions.biz

Success comes from passionate people

Service Provider of the Year

We’ve had franchise specialists longer than most NZ franchisees have been in business.

Find more info franchise.co.nz

Jones Lang LaSalle Chris Beasleigh

Westpac New Zealand Limited

82

Westpac Directory of Franchising and Advertiser Index Franchise New Zealand Volume 23 Issue 01 Autumn 2014


Are you seeing this opportunity as clearly as you should?

Here are 7 reasons to talk to us BEFORE you sign up Financial peace of mind starts here 1 Comprehensive due diligence reports

2 Business structures to minimise risk, maximise protection

3 Proven solutions and systems to save time, money and tax

4 Specialist advice complete with listening and understanding 5 Specialist franchise mentoring and ongoing support

We provide friendly, professional services to business purchasers and franchisees at all levels. From checking out your first low-investment franchise to operating the largest multi-unit business — we can help.

6 The knowledge and experience of New Zealand's premier dedicated franchise specialist

7 A New Zealand franchise industry award-winning service

0800 555 8020 info@franchiseaccountants.co.nz www.franchiseaccountants.co.nz/coffee

SERVICE PROVIDER OF THE YEAR

New Zealand

Franchise Awards 2011/2012


Franchise New Zealand - Vol 23 Iss 01 - Autumn 2014  

Food is one of the most popular options for franchise business buyers, but what’s hot and what’s not? The latest issue of Franchise New Zeal...