Franchise New Zealand - Year 25 Issue 01 - Autumn 2016

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BUY YOUR OWN BUSINESS

Autumn 2016

franchise.co.nz

Year 25 Issue 01 $8.95

YOUR BUYER’S GUIDE Home-based Man-and-a-van Eco-friendly Food and drink

White collar Premises-based Part-time Multi-unit

PLUS | questions to ask | become a high achiever | building your brand proudly supported by

Westpac Directory of Franchising Over 275 different franchises

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500 Franchises and going strong CrestClean has reached a milestone of 500 Franchises….a great achievement for a home grown, Kiwi owned franchise system. CrestClean is NZ’s leading cleaning company, involving more than 1685 people servicing over 3600 customers. With comprehensive training and great local business support, a franchise with Crest is a rewarding long-term career. Now covering NZ nationwide, CrestClean has immediate start business opportunities in the regions.

CrestClean's 500th Franchise team Danial Prasad and Arishma Singh relocated from Auckland to Nelson under CrestClean's ‘Move to the Regions’ Programme. “To be the 500th franchise was a big surprise. We are very happy. Nelson is a very nice place. The scenery is beautiful. Everyone is friendly. It has been a great lifestyle change for us.” Call now 0800 273 780 or visit www.crest.co.nz To see more about ‘Move to the Regions’ visit www.crest.co.nz/move-to-the-regions


PRACTICE AWARDS WINNER

“Setting up our business for growth”

“SkySolar is a growing business involved with the marketing, supply and installation of Solar Power Systems across New Zealand and the Pacific. Goodwin Turner have been fantastic in their responses to our needs and have covered all manner of transactions and business needs including providing advice on all things legal. Questions have been covered expertly and efficiently and we really appreciate the proactive approach taken by Scott and Paul to understand our businesses and where they can add value. Excellence all round from a great team” Marcus & Nick, Directors, Skysolar As franchise specialists with a team of industry leading legal experts, you can be assured of receiving practical commercial advice and tailored solutions that add value to your business. Specialist advice in all areas of commercial law including: Property | Intellectual Property | Employment | Commercial & Contract

Scott Goodwin

Paul Turner

Nicole Duncan

Contact us today or scan the QR code to view our website for more information: P: (09) 973 7350 E: info@goodwinturner.co.nz www.goodwinturner.co.nz

Brendon Ng

Lance Hargreaves


franchise.co.nz

LOVE accounting… Looking for the freedom of running your own business and having a great lifestyle, then an SBA franchise is the ideal solution. Franchising since 1999, SBA is a market-leading brand that will provide maximum support and enormous potential to grow. • Well-known brand with 50 branches nationwide & 20,000 clients • Proven business model • Low entry cost and low overheads • Own your own local territory • Xero Platinum Partner • Ongoing training and support Email franchisesales@sba.co.nz for a free info pack.

TM

The sale of Fastway Couriers to a Dubai-based company earlier this year marks something of a milestone for franchising in New Zealand. Should we be sad that one of New Zealand’s founding franchises is now overseas-owned? Perhaps a little – but we should also be proud that a locally-developed brand has proved so good that it has attracted an offshore buyer interested not just in the existing business but in the potential of the franchise itself (see page 16). Fastway has proved that it is possible not just to export intellectual property through franchising, but that a Kiwi company can develop a truly world-class franchise system. That’s inspiring – and it’s something worth shouting about. Fastway is one of the best-known franchises in the country, but it’s far from the only one. As we say in our cover story, New Zealand has more franchises than most people realise, and that means plenty of choice for anyone looking for a business opportunity. With high demand for franchisees and record low interest rates, there’s never been a better time to start looking. But what sort of business do you want? You can find out more about what’s available on page 6, and in our directory starting on page 78. Of course, if you want to have the best possible chance of success, you have to take care when choosing a franchise. That’s why we’ve updated our list of 250 Questions to Ask on page 52. It’s quite a famous list among franchisors and is welcomed by many because they know that, if you’ve taken the time to read it, you’re serious about their opportunity. Shoddy operators, on the other hand, hate it – and, sadly, there are still a few of those out there. On page 32, Glenice Riley shows you how to make the most of your business once you’ve bought it and on page 44 Jason Gehrke describes the reasons that franchisees sometimes fail. Both are essential reading for new franchisees. And franchisors and franchisees alike should appreciate the insight into managing the new health and safety requirements (page 38) and the upcoming Franchise Conference (page 27). There are profiles of all sorts of new and established opportunities and services, too. We’re sure you’ll find more than you expect in the following pages. Happy hunting!

Simon Lord Publisher Franchise New Zealand magazine & website

PUTTING PEOPLE in BUSINESS 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 308 089, Manly 0952 New Zealand P 0800 FRANCHISE (0800 372 624) info@franchise.co.nz www.franchise.co.nz ISSN 1172-059X (Print) ISSN 2324-5204 (Digital) Designed and produced by Design for Marketers P 021 64 45 45 paul@designformarketers.co.nz Principal: Paul Donovan Graphic Design: Abi Donovan

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6

Your Buyer’s Guide To Franchises

32 Become A High Achiever

Whatever type of business you’re interested in, there’s a franchise to suit. Here’s our guide

52 250 Questions to Ask Vital questions to help you make the right decision about any particular opportunity

Glenice Riley on how to make the most of a franchise opportunity

autumn 2016 year 25 issue 01

welcome to New Zealand's BUY YOUR OWN BUSINESS magazine 6 Your Buyer’s Guide To Franchises Whatever type of business you’re interested in, there’s a franchise to suit. Here’s our guide to some of the most popular 11 Life After Auckland Paramount franchisees are thriving after moving to the regions 13 A Million-Plus Good Reasons Franchisees and customers explain why they love Streetwise Coffee 15 Protect And Serve NZ House Surveys need franchisees to meet national demand 16 Updates Our pick of the top news stories from www.franchise.co.nz 19 First Choice For Conferences Holiday Inn Rotorua is tailormade for franchises 21 More Than Just Pizza Domino’s has changed its name. What’s coming next? 22 Franchisees Are Not Alone Westpac’s specialists look at how franchisees can work on their businesses 25 The Wit To Woo Mr Woo Sushi franchisees choose high demand and low overheads 26 Bottom Line Benefits All About People improves franchise businesses by keeping them safe

27 Building Your Brand The 2016 Franchise Conference in Tauranga promises a great line-up 29 Growing Their Own Futures The V.I.P. Home Services franchise proves its value time and time again 31 A Business With Staying Power Touch Up Guys franchisee still in the same profitable business after 21 years 32 Become A High Achieving Franchisee Glenice Riley on how to make the most of a franchise opportunity 35 Seeking Star Salespeople New roles offer exciting opportunities nationwide with Expense Reduction Analysts 37 Get Your Teeth Into This Burger Wisconsin ramps up with new owners, new franchisees and new ideas 38 Caught In The Act Why new safety legislation can be a bonus for franchisee and franchisors 41 Franchising In The Right Order Successful franchising takes logical planning, say Franchize Consultants 43 Flower Power Palmers offers two levels of franchise opportunity in a massive market

67 Switch On To Opportunity 44 10 Reasons Why Appliance Tagging Services Franchisees Fail has clients ready and waiting Jason Gehrke on what makes for Kiwi franchisees the difference between success and failure 68 The Value Of Guarantees What importance should 49 Growing Beyond All Bounds you place on a work or Jim’s Tree & Stump Removal income guarantee? has customers queuing up around Auckland and beyond 69 Addicted To Perfection Columbus Coffee franchisees 51 Why Wouldn’t You Use Us? have support from a team that’s You don’t know what you don’t fanatical about getting it right know – so find out before you 70 What Can I Claim? buy, says Philip Morrison Home-based businesses offer 52 Questions to Ask numerous tax advantages. Philip A comprehensive list of over Morrison provides a guide 250 vital questions to help you 73 Beyond The Big Four make the right decision about SBA’s reputation draws any particular opportunity accountants seeking real 57 Arresting Good Looks career satisfaction Former police officer finds a new life and a new business with Caci 74 Stop Dreaming – Start Doing Dream Doors franchisee 59 Enhancing Floors, is going on growing Enhancing Futures 75 Cutting Through The Jargon The potential for Mr Sandless Franchise lawyer David Foster and Dr DecknFence may floor you provides a guide to common 60 While You Are Sleeping … clauses in franchise agreements … Social media could be 90 Salon Success damaging your brand Rodney Wayne franchisees 63 What Do You Want celebrate 16 years by From Your Business? opening third outlet RightWay helps you make the most of your franchise 78 Westpac Directory 64 Where Fashion Meets Sport Of Franchising ­ irection Stirling Sports’ new d Comprehensive details and continues to bring success investment levels for over 65 Sharing Experience 275 franchise and master franchise opportunities. The Pro Group franchisees Also includes advisors and work together to build index to advertisers additional income streams

Westpac Directory of Franchising Over 275 different franchises

Editor Simon Lord Production Manager Eve Brown Business Development Vicky Bennett Misty Boswell Writers Crispin Caldicott Ross Lindsay

87 national master licences

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.

87 specialist advisors

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.

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78 franchise opportunities

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YOUR BUYER’S GUIDE Home-based Man-and-a-van Premises-based Part-time

Eco-friendly Food and drink Multi-unit White collar

Part-time, full-time, indoors, outdoors, retail or restaurant: whatever type of business you’re interested in, there’s a franchise to suit. If you’re looking for a bright idea, read on

P

eople who pick up this magazine in an office, café or waiting room often tell us, ‘I didn’t realise just how many businesses were franchised,’ or ‘I didn’t realise that xyz company was a franchise.’ In fact, New Zealand is the most franchised country per capita in the world, with over 480 different franchised brands and around 20,000 franchised outlets or operators.

Next time you’re driving through town, see how many franchises you can spot among the shops, cafés, food outlets and the commercial vehicles on the road. I guarantee there will be more than you expected – and I also guarantee you won’t have spotted them all. We still come across new ones almost every week! That’s not too surprising because franchises cover all types of industries from retail to plumbing, from fast food to finance. So how does franchising work? Well, the basic idea is that the initial creator (the franchisor) develops a business format and an operating system which has some advantages over other existing businesses in the market. The franchisor then replicates the business in other geographic areas by granting the right to another person or company (the franchisee) to operate the same business system under the same name. This right is usually granted for a fixed term. The franchisor gains his or her income from initial and ongoing fees paid by the franchisee. In return, the franchisor must provide a variety of services to encourage the continuing profitability and growth of the franchisee’s business. The franchisee receives their income from marketing a desirable product or service under a desirable brand name. This basic approach – which is called business format franchising – has proved to be one of the most dynamic forms of marketing and distribution ever invented. While Apple and Google have become global leaders through developing new inventions, McDonald’s and Subway have managed it through applying the franchise model in traditional markets. The model offers obvious benefits for franchisees: proper and highly-specific training when you first start your business; ongoing support to help you manage it well; the buying power that comes from a lot of small businesses

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banding together; marketing and advertising muscle; having a franchisor to research and develop profitable new products and services rather than having to work it all out for yourself; and so on. But with so many different types of franchise around, how do you choose between them all? Here’s our guide to some of the types of franchise available today. Which will light up your life?

Home-based While mobile franchisees usually work from a home base, they’re not the only ones. There are management-style businesses such as Expense Reduction Analysts and The Alternative Board which are usually operated from home offices, design franchises like YardArt and education franchises like MathZwise, and many more. In fact, nearly all small business owners will find that they are working from home at least part of the time. Cloud-based accounting means it’s often easier to handle some tasks away from work, and online monitoring technology makes it possible even for multi-unit business owners to keep an eye on what’s happening at their various sites. If you don’t need retail premises or staff, if you have space for the stock or equipment you’ll need, and if you are able to visit clients or have a suitable space for them to visit you, there are many advantages in being homebased. The major ones include no rent, flexibility of hours, the possibility of working with a spouse or partner and the ability to offset a fair proportion of your home costs against the business for tax purposes (see page 70). The downside is that you’ll need proper office space, you’ll want to be able to ensure freedom from interruptions sometimes and you may find it hard to get away from thinking about work. If you’re attracted by the idea of a home-based business, it’s worth looking for a good franchise. But beware: there are plenty of dubious ‘Make $$$$ working from home’ adverts on the internet with no real substance behind them. Use our list of questions on page 52 to help you sort the genuine from the scams.

Man-and-a-van If you don’t like being stuck in the same spot all day, think about buying a mobile franchise. Although mobile franchises are often called ‘man-anda-van’ businesses, they can just as easily suit women – and many mobile franchises allow you to work together with your spouse or another family member. They come in two forms: those that are mobile because they have to be (providing cleaning, courier, or building services to homes and workplaces), and those that are mobile businesses because they can take a traditional product or service such as coffee, car tuning, bookkeeping or carpet retailing to new customers. Mobile franchises tend to have lower costs than those which operate from fixed premises, and they have the advantage that you can go to where the customers are, rather than having to wait for customers to come to you. In many cases, they can provide a very satisfactory income depending on the hours you put in. However, opportunities for growth can be restricted unless you can leverage your time by employing others and operating more than one vehicle. In some cases – for example with taxis or mobile food outlets – you may be able to employ or sub-contract others to use your vehicle when you are not working yourself. Franchise New Zealand

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In most man-and-a-van type franchises, you are only earning when you are working. A franchise can increase your work time by handling many of the routine tasks for you such as advertising, answering the phone, dealing with suppliers and even, in some cases, invoicing and debt collection.

Premises-based Having business premises makes it easier to keep work and home separate. If you’re in retail, the right premises will also deliver a steady stream of potential customers to your door, while if your business is office-based or more industrial, it will enable you to employ staff or house the specialist equipment you need. If you want to have a larger business, then you’ll need premises to work from. Taking on a lease is a major commitment, but a good franchisor will guide you through the process to help get you the right size of premises in the right location and on the right terms. In retail, not all new shopping centres attract the numbers they expect, and even in successful malls not all sites are created equal. Premises will probably be your biggest cost after staff, so it pays to get it right at the beginning – especially as the cost of shopfitting means it’s more expensive to move than would be the case for, say, an office or workshop. Some franchises like Just Cuts and Stirling Sports operate very successfully in malls where the high customer numbers more than justify the high lease costs. Equally, many successful retail franchises operate outside the malls where they make a big point of being destination outlets serving local communities – The Cheesecake Shop, Burger Wisconsin and Stihl Shop being three very different examples. It all depends on the business model of the franchise in question.

Part-time If you’re looking for a way of making some extra money, or don’t want to give up the day job yet, a part-time franchise can be a great way to get into your own business. Although some opportunities suggest you can earn a full-time income from a part-time job, to be successful you always have to work hard and put in the additional hours. Part-time franchises have their good points and bad points, but you can enjoy flexible hours that allow you to work around childcare, school days or school holidays, while many people enjoy being able to start early or late and have the rest of the day free. They can also suit people taking early retirement or redundancy. Most part-time franchises require less money to start up than full-time ones, or will allow you to start small and increase your investment later. Having a regular source of income apart from the franchise may make it easier to find funding.

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Many home services franchises can initially be run part-time, including home cleaning and lawnmowing. Some food and beverage franchises, such as coffee carts or food stalls, can operate part-time during the week with additional days at weekends – you can even employ staff to make the most of these opportunities. These are a good example of the type of business that can be grown as you become more comfortable with the routine. One of the most popular part-time franchises is commercial cleaning, which allows new franchisees to keep their day job and do an additional four or five hours in their own business every evening. As you grow more confident, you can take on more customers and start employing staff. That increases your earning power without increasing your hours, and paves the way for a move into a full-time business. franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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More help To work out whether any particular franchise is the right one to help you make the leap into business ownership, you’ll need to do some research and ask lots of questions. There are many helpful articles on the Franchise New Zealand website – here are three to help you take the next step: Find the Right Franchise For You – Our guide to finding a franchise that suits your pocket and your dreams. www.franchise.co.nz/article/639 Doing The Sums On Buying A Franchise – How do you evaluate a franchise from a financial point of view? A case study of a real-life business opportunity. www.franchise.co.nz/article/1124 50 Questions To Ask Franchisees – If you want to know what a franchise is really like, you need to talk to the people who are already operating it. www.franchise.co.nz/article/935

Eco-friendly In the last few years, environmentally-friendly products and services have moved into the mainstream. Consumers are actively looking to make better choices, and companies want to be ‘seen to be green’. The tipping point has been reached and franchises have responded to the opportunity. Eco-friendly franchises fall into three main categories: 1. Existing companies that have worked to make their service more environmentally-friendly in order to appeal to customers, companies and corporates with ‘green’ policies. Commercial cleaning companies have been particularly active in this area, especially with increasing sensitivity around the use of chemicals in the home and workplace. 2. Those that have established new companies based on green products or services. In some cases, these may prove to have immediate appeal; in other cases, consumers may require education and conversion to the benefits. Buyers need to be careful to confirm the market for these in New Zealand where our niches are smaller and our environmental concerns different from those in other countries. Services that work overseas, such as waterless car washing, may not find an obvious market here despite the environmental advantages. 3. Franchises that specialise in home and building improvements to make

them more healthy and/or energy efficient. These include companies that specialise in supply and/or retro-fitting or double glazing, wall and roofing insulation, solar energy and heating products. If you are looking at an eco-friendly franchise, it’s important to do your homework to differentiate between a real benefit and a fake one, and between a long-term trend and a short-term fad. After all, you may want to do your bit for the planet – but you want your business to be sustainable, too.

Food and drink The same applies to the food business. Food and beverage is one of those sectors that has the great advantage that no-one has yet been able to deliver its products via the internet, although Domino’s has perhaps brought that closer with its trial of robot-delivered pizzas (see page 16). Promoting food over the net, though, has become big business and the top food franchises all have sophisticated apps and social media strategies to keep their customers loyal so if you’re choosing a food franchise, you need to make sure they’re staying up with the play. Eating out is perhaps one of the most trend-conscious sectors of all. In recent years, we’ve seen massive media attention paid to obesity and diabetes statistics, children’s diets and the occasional excesses of products such as KFC’s Double Down Burger. McDonald’s has regularly been singled out as the biggest offender yet has done more than most to reduce harmful ingredients in its everyday products while offering customers a wider choice of healthier products. Meanwhile, restaurants and cafés have seen their menus explode as they’ve tried to keep up with the demands for low fat, gluten-free, sugar-free, fair trade, organic, paleo or whatever. Again, it’s important for the potential franchisee to distinguish between a franchise that can move with the times to meet changing markets and one that might just be focussed on the latest fashion. Just as today’s McDonald’s is a very different place from 10 years ago, so are most of the other successful franchises, too – and the pace of change will only increase. The cheapest way to get into the food and drink business is via mobile coffee or sushi franchises that can take their products to workplaces, high-traffic sites or events. Vending franchises require more investment but can often be worked part-time once established. Beyond that, opportunities vary from

Create a successful future Fastway Couriers has a number of exciting franchise opportunities available Join an established company and enjoy: • Ongoing business support and training • An award winning system for over 30 years • Perpetual franchise agreement • Recognised brand

To find out more contact us:

p. 0800 4FASTWAY w. fastway.co.nz e. recruitment@fastway.co.nz Fastway Couriers (NZ) Ltd T/A Fastway Couriers New Zealand. Fastway Couriers is a franchised courier network and its businesses are independently owned.

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Franchise New Zealand

Autumn 2016

Year 25 Issue 01

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hole-in-the-wall or kiosk locations to high streets, food courts, malls and stand-alone outlets with a hundred or more seats. If you choose a food franchise, be prepared for long hours particularly in the early days. Larger units will require a team of full- and part-time staff, meaning leadership skills are vital, and you’ll need good financial and management skills to stay on top of those all-important food costs. But if you can do that, food franchises can be very rewarding – and many are ideal for those seeking to build a larger business by owning multiple units.

Multi-unit Although many people might think of franchising as consisting of owneroperator businesses, multiple-unit (or ‘multi-unit’) franchising is increasingly popular. It’s what happens when a franchisee runs two or more outlets, and it’s surprisingly common. For example, several McDonald’s franchisees own four or more restaurants, and many petrol stations are now operated by multiple franchisees who might own 10 or 20 outlets in the same region. Even in the service sector, it’s not uncommon for franchisees to own multiple territories, while in retail the same franchisee might own two or three outlets in neighbouring areas. It’s not necessarily restricted to a single brand, either; some multi-unit franchisees own outlets of more than one brand. As long as the brands aren’t in competition, and the franchisors are happy, this can work very well. In fact, some franchisors actually operate ‘sister brands’ like Speedy Signs and EmbroidMe, or Mexicali Fresh and Burger Wisconsin. Becoming a multi-unit franchisee is a very different proposition from operating a single unit. One or two units may come naturally; managing four or five takes a different level of hands-off management skills. Read more about this at www.franchise.co.nz/article/2142. But if you have those skills, franchising can help you build a bigger business faster than you would ever achieve on your own.

White collar Talking of management skills, one of the advantages of franchising is that it offers business opportunities of many different types. Experienced executives, managers and sales-people can find a franchise suited to their skills just as easily as someone who wants to mow a lawn or own their own café - although those can be options, too, if you want a change of direction. There are opportunities in business coaching, logistics management, telecommunications, property management, home building, finance and plenty of other areas. For someone used to working in a larger company, buying a franchise can make the transition to self-employment much easier by providing proven systems to follow as well as colleagues to discuss issues and ideas with. Many white collar franchises offer the chance to work from home and enjoy flexible hours, so they can suit people taking early retirement or redundancy as well as those who just feel ready to sack the boss. You might also consider developing your own business as a regional or master licensee, developing a national chain and helping others grow their own businesses. This will be a much larger challenge, especially if you are importing an established franchise system from overseas. In this case, it’s important not to pay too much – many international franchisors over-estimate the potential of their systems in New Zealand or under-estimate the time it will take to become established. It’s therefore important to carry out a proper feasibility study and create an entry plan with the help of locally-based experts before committing yourself.

Invest in yourself In fact, no matter what type of franchise you’re considering, it’s important to do more than ask ‘How much does it cost?’ and ‘What experience do I need?’ Do your research – we recommend putting in an hour of research for every $1000 that you plan to invest. Talk to the franchisor and ask lots of questions (there are 250 suggestions to get you going on page 52), and talk to other franchisees who are already running the same business. But don’t try to do it all yourself: above all, take proper legal and professional advice from a franchise-experienced lawyer and accountant who can help you make the right decision. As we said at the beginning, there are around 480 franchises in New Zealand operating in almost any industry you can imagine. Whether you’re looking for something home-based or office-based, retail or restaurant, part-time or fulltime, there’s certain to be something to suit your abilities and your goals. You might not even know it exists yet, about the author but once you start looking, you’ll find more bright ideas than you expected Simon Lord is Editor of Franchise – and at least one to light up your New Zealand and has worked in franchising in New Zealand and life. Just take your time to find the the UK for over 30 years. perfect opportunity for you. franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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Novus Auto Glass are

seeking expressions of interest from: • Existing auto glass companies wishing to join NOVUS • Automotive companies wishing to add NOVUS to their business • Individuals wishing to purchase an existing NOVUS location The NOVUS Auto Glass opportunity offers: • • • • • • • • • •

A proven business model A nationally recognised brand Instant credibility National accounts and referrals Superior ongoing training and support The highest quality products Full-time research and development department National advertising 24/7 call centre Annual conference

Email: opportunities@novus.co.nz

West Auckland needed NOW

Give your customers the best lawn in their street Easy to sell, easy to install Build a sustainable and enjoyable business

• Innovative, lightweight & efficient – Woolgro lawn mat • Carefully developed systems for sales, preparation, laying, aftercare and accounting • Proven results with a unique customer guarantee • Manage your own business and be part of the new revolution in lawn establishment • Full training given – no landscaping experience needed – just a desire to provide excellent results, great customer service and enjoy happy clients Contact Geoff Luke TODAY 021 957 600, 09 570 1985 www.woolgro.co.nz 9 23/03/16 4:40 PM


“I’ve seen 100% growth per year” Jim Gleeson, Refresh Franchisee

Join Refresh and grow a multi-million dollar franchise

You don’t need to be a builder, so talk to Jon Bridge today: Ph (09) 303 0670, jonb@traffic.net.nz www.refreshfranchise.co.nz

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opportunity: business & commercial

Paramount franchisees are thriving after moving to the regions

LIFE AFTER AUCKLAND

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very day, the news is full of stories about the cost and congestion of living in Auckland. Owning a home is now beyond the reach of many; rents have become unaffordable, and traffic is constantly eating into family and leisure time. Why live in the city when there are delightful places like Taranaki, Oamaru or Blenheim where you can afford a house of your own, rush hour lasts a few minutes and you can probably park right outside the shop you’re visiting?

‘All that’s stopping many people from moving somewhere that offers a better lifestyle is the dilemma of how to earn a living,’ says Paul Brown of Paramount Services. ‘But we can help – we have commercial cleaning businesses ready to go in regional towns and cities across New Zealand. Paramount’s national contracts with major clients such as banks and retailers means it is able to create businesses that will support you right from day one. From that foundation, you can grow the business to whatever size you want. Some franchisees employ over 30 people!’

smaller costs, bigger business

Tim and Cassie Gao had been Paramount franchisees in Auckland for three years before moving to Hamilton last year. Originally from China, Tim was attracted to Paramount because of its ISO9001 certification. ‘In China only large companies have that, so I knew that Paramount had to have good systems to get it,’ Tim says. However, it was only after joining the franchise that they discovered just how good the training, franchise support and admin teams really are. ‘The support is reliable and professional,’ says Cassie. ‘We get exactly what we need whenever we need it.’ And Cassie credits Paramount with helping them make the biggest change of all. ‘We had built up our business in Auckland until we were servicing 20 small sites. We had a couple of part-time employees and handled the rest of the work ourselves so it was a busy life: we had two small children, owned a small house in West Auckland and were spending a lot of time and money on travelling between sites. Tim had been keeping an eye on property in areas outside Auckland and was interested in moving, but we didn’t know how to achieve this. When we met with Paul to discuss growing our business in Auckland, he saw an opportunity for us to move to Hamilton and transform our lives. ‘By making the choice to move we gained both business and lifestyle benefits. The financial side worked out well: we split and sold our Auckland sites to two new franchisees, then we released capital from our house. Knowing the franchise, we felt confident enough to buy a bigger business in Hamilton servicing four large sites in two retail stores and two cinemas. We now employ 15 part-time and full-time people and although we are still hands-on ourselves, our focus now is managing our staff and ensuring quality. ‘On the lifestyle side, we have bought a nice home at a much lower price, with a bigger back yard where the children enjoy jumping on the trampoline and riding their bikes. We’re close to a good kindy, good schools, and spend more time with the children and less time on the road. We have good neighbours, too. franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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‘We didn’t know Hamilton well before we moved here, but it’s actually a lovely place to live. The expressway makes it easy to get round the city, and we really enjoy relaxing in Hamilton Gardens. We’ve been really lucky – thanks to Paramount.’

flying start

While Tim and Cassie went south, Auckland business graduates Sandeep Kathiriya and Riddhi Dhakecha went north. The recently-engaged couple have just taken up a new Paramount franchise in Dargaville which already has two bank cleaning contracts in place. Sandeep is no stranger to hard work or small business: whilst studying, he worked part-time at Auckland Council and had a home-based business repairing computers. After graduating he worked in a service station in Northland and enjoyed the lifestyle and the friendly people: ‘Now whenever I go to Auckland I feel very stressed,’ he smiles. Riddhi has just joined him in Dargaville, and has found her business offers her the time and income she needs to train as a pilot at Dargaville Aero Club. Sandeep and Riddhi are excited about the prospects for their affordable new business and their new life. ‘When we started looking for a business, friends recommended Paramount and, even more importantly, so did existing Paramount franchisees. The company was named Westpac Supreme Franchise System of the Year last year for the quality of its services and support. There are many commercial offices and businesses in Dargaville so we are confident our business is off to a great start.’

opportunities ready to go Paul Brown says, ‘Paramount Services has regional franchise businesses ready to go right now in Greymouth, Kerikeri, Wanganui, Palmerston North, Wellington, Taranaki and Gisborne, as well as other locations.

‘Tim and Cassie, and Sandeep and Riddhi have no doubt they’ve made the right choice. If you’d also like to enjoy a better lifestyle in one of New Zealand’s many beautiful regions, don’t hesitate – contact me now.’

advertiser info Paramount Services PO Box 8939, Symonds Street, Auckland www.service-is-paramount.co.nz Contact Paul Brown P 0-9-376 7850 M 0275 430 233 pbrown@paraserv.com

11 22/03/16 4:33 PM



opportunity: food & beverage

A MILLION-PLUS GOOD REASONS Franchisees and customers explain why they love Streetwise Coffee

S

treetwise Coffee has a stylish look, a catchy brand name and the unique advantage that if a location isn’t working out, its plumbed-in cart design can be moved to greener pastures. Those are all great benefits for franchisees, but what is it that makes Streetwise so popular that it serves well over a million coffees a year from its 18 outlets? The answer is simple: the franchisees themselves. Take Brenda Pakau-Timoti, for example, who opened Streetwise Coffee Feilding five years ago with her husband Ricci.

hole in the wall One Streetwise fan who took things further is Dave Palmer, who was a regular at the original Streetwise Coffee outlet in Otaki. Dave liked the concept so much that, seven years ago, he opened his own Streetwise outlet in what had been a storage area between two shops on Taupo’s main shopping street. Although the location forced a departure from the standard design, his hole-in-the-wall kiosk replicated the Streetwise layout. Three years later, Dave formed a partnership with staff member Guy Johnson to open a second outlet, this time a standard ‘stay-put designer cart’ on a main arterial route in the business area of Taupo. ‘Both units encourage real rapport with our customers,’ says Dave. ‘Through Streetwise, I reckon I know half of Taupo!’

‘Each Streetwise outlet is designed to encourage chat between barista and customers, and I love it,’ explains Brenda. ‘With every new customer we ask their name and favourite coffee. On their next visit, it really blows them away to be greeted by name and asked if they would like their favourite. But it’s not just a sales tool; we genuinely like meeting new people and we’ve made some amazing friends among our customers. I recently went to a wedding and a christening, but one of the most moving experiences was being asked by a customer to speak at her funeral.’

That’s evident in the comments from a couple of their customers:

And Brenda’s customers return the favour, loving every aspect of the Streetwise experience, from the friendliness factor to the special blend that’s roasted exclusively for Streetwise by Wellington’s Havana Coffee Works.

Bindie: ‘The smell of complete happiness greets me as I take my first sip of my morning Streetwise coffee from the vivacious team at Streetwise. Perfect every time, and all I do is just toot as I drive past for my order! The past seven years have been yum.’

Brenda’s regulars confirm this.

Mike: ‘Have been a loyally-addicted customer of Streetwise Coffee since they first arrived in Heuheu Street. The standard and consistency of the coffee is excellent, as are the team that brew it. I only have one coffee a day so it needs to be spot on, and Streetwise deliver on that every day.’

Amy: ‘Being new to Feilding I tried every place in town. Streetwise was the best for coffee and they remembered my name and my coffee preference. Soon, going to Streetwise was more than just getting a coffee fix: it was also about friendship.’ Peter: ‘In April 2014, I visited New Zealand and Feilding for a wedding. I went to various coffee places before tasting Streetwise and I was immediately hooked. Now living in Feilding, I affectionately call Brenda my “dealer” and consider her the first friend I made in New Zealand. So what do I love about Streetwise? The coffee, the amazing, friendly and personal service, the chocolates with each coffee, the loyalty card, Brenda, Ricci and their staff.’ Teresa: ‘I love the way Brenda, Ricci and their staff know you, know your order and are so friendly. It’s great to have somewhere like Streetwise where you can just pop in, grab a coffee and continue on your way. It’s part of my morning routine and a great way to start my day.’ Brenda and Ricci put in the hours, starting at 5.30am Monday to Friday and allowing themselves a lie-in on the weekend when they open at 7am. ‘But we finish early, when the staff take over, and have the rest of the day to ourselves,’ Brenda says. The financial reward for their hard work is annual growth that has exceeded projections every year so far, says Ricci. ‘It only goes to show that, even in a small town like Feilding, Streetwise is a big opportunity.’ franchise.co.nz – PUTTING PEOPLE IN BUSINESS

Streetwise Coffee 13.indd 1

six figures per annum Dave says that Streetwise franchisees and their staff must have outgoing personalities, be genuinely interested in their communities, love coffee and take pride in delivering quality consistently. ‘That’s how we turn customers into friends.’ New franchisees require around $150,000 capital for a turnkey package which includes site selection and preparation, training, advertising, ongoing support and the designer cart, which is fully-equipped with everything from espresso machines and grinders to climate control and touchscreen POS systems. Franchisors Graeme Harris and Jol Glover say franchisees can advertiser info achieve around 55 percent gross profit and earn six figures within 3–5 years. Streetwise Coffee ‘Having had a taste of what customers and franchisees think, we hope you’re keen to find out more,’ says Jol. ‘Wise up about opportunities all over New Zealand by contacting us today.’

www.streetwisecoffee.co.nz Contact Donna Ferrall Franchise Sales Consultant M 027 552 2055

donna@streetwisecoffee.co.nz

13 24/03/16 12:40 PM


Be part of the fast growing success story: • • • •

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To find out more and register your expression of interest contact Cindy on 027 525 1424 or cindy@bedsrus.co.nz


opportunity: home & building

protect and serve

NZ House Surveys need franchisees to meet national demand

T

he leaky homes debacle cost home-owners millions but if anything good came out of it, it was that it made property buyers more careful. Up to 95 percent of buyers now request a pre-purchase inspection and banks and insurance companies are increasingly requiring them. ‘With all that, and lawyers recommending tests for methamphetamine use, too, it’s no longer enough just to have someone crawl under the house and have a look at the roof,’ says Jeff Twigge. ‘The demand for thorough inspections and quality reporting is growing every day.’

Jeff should know. He set up NZ House Surveys in 2007 after 30 years in the building trade because he was unhappy with the lack of regulation in the home inspection industry. ‘Potential home owners were not being wellserved,’ he says. ‘Anyone can call themselves an inspector, charge what they like and not necessarily pick up the faults. They often don’t carry insurance, either, placing the buyer at risk if anything is missed. A home is usually the biggest investment people make so they are entitled to the best information they can obtain. At NZ House Surveys we set out to raise the bar.’ Jeff designed a system to provide a thorough service that people can rely on – and it worked. ‘In our eight years of operation we’ve had thousands of satisfied customers and have never once had to call upon our indemnity insurance.’

Jeff Twigge with Diana Parker of NZ House Surveys

inspection systems and customised report-writing processes, as well as specialist tools, website access, 0800 number and ongoing support including an annual conference. ‘This is an opportunity for builders to get off the tools, or could suit semi-retired professionals – particularly in some of the smaller territories. The franchise fee depends on area and ranges from $19,000 to $35,000 +gst. The only advertiser info extra is a suitable late model sign-written vehicle. NZ House Surveys ‘Apart from that, all that is required is attention to detail and a “can-do” attitude,’ Jeff says. ‘Call me if you’d like to join our family, build a business with a partner or family member and help home buyers get the information they deserve.’

15 Walding Street, Palmerston North 4410 www.nzhousesurveys.co.nz Contact Jeff Twigge P 0800 4 TRUTH P 0-6-354 9194 M 027 222 4328 inspector@nzhousesurveys.co.nz

now franchising nationwide Over the years, NZ House Surveys has grown rapidly as the team’s services have come under increasing demand and now Jeff is franchising the operation to maintain service and standards nationwide. ‘We get calls from all round the country every day from people wanting pre-purchase inspections, and we want franchisees as passionate as we are to help them. ‘We are looking for honest people who have appropriate experience in the building industry,’ he says. ‘This could be building, designing or project management, but the ability to work well under pressure is essential. And there’s one unusual requirement – anyone taking up the franchise must have a partner with whom to undertake A good buy? NZ House Surveys our exacting surveys. give buyers peace of mind ‘Four eyes are better than two,’ says Jeff, firmly. ‘Different people see different things and we discovered early on that was the best way of ensuring we don’t miss anything vital. We take longer than other inspectors and we offer an after-sales service so we can meet with our clients and take them through our report in detail. We know just how competitive the housing market is, so we offer a 24-hour turnaround on all our inspections which allows would-be purchasers to make an informed decision quickly. Needless to say, we are members of Standards NZ and the NZ Institute of Building Inspectors and all our reports include the NZS 4306 Certificate of Inspection.’

get in quick ‘We’ve identified 34 franchise opportunities nationwide and already have enquiries for some areas so if you’re interested, contact me quick,’ says Jeff. ‘All franchisees will receive full training in NZ House Surveys’ proven franchise.co.nz – PUTTING PEOPLE IN BUSINESS

NZ House Surveys 15.indd 1

Seeks expressions of interest for Nationwide Franchises To see if you qualify, go to:

www.nzhousesurveys.co.nz/franchise call: 027 222 4328 or email:

inspector@nzhousesurveys.co.nz Calling the Building Industry to ACTION! Proven business model. Complete training. Ongoing support. Annual conferences. 15 22/03/16 4:33 PM


updates from our website

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

NZ FRANCHISE APP TAKING OFF

A tablet-based franchise management system designed in New Zealand is catching the eye of some well-known franchises. Launched in 2015, Franchise Infinity was designed to bring together every aspect of a franchise’s daily operation routine in one easy-to-use app. Operations manuals, employment documents, health & safety processes, marketing tools, margin calculators, training content, order forms and other functions could be accessed from a single location, making it easier for franchisors, field staff and franchisees to access up-to-date information on everything they need.

Now the company has launched a new version in response to customer feedback. Version 2.0 includes: • Enhanced analytics and reports, including exception reporting; • Better client interaction and navigation of the system; • Integration with Xero (and others to come); • Higher levels of customisation to individual brands; • Learning management system with

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

Good times ahead for franchisees

reporting and traceability; • Franchise recruitment system with tailored prospect recruitment journeys to ensure proper compliance; • New multiple-user access through layered security. This ensures ease of access for the entire team without compromising confidential documentation; • A comprehensive franchise management ecosystem. According to director Philip Morrison, Franchise Infinity 2.0 is already being evaluated and installed by a number of premium franchise brands in New Zealand and is about to be installed in its first Australian franchise, too.

Franchise expertise valued as Fastway sold overseas Fastway Couriers, one of New Zealand’s best-known home-grown franchises, has been sold to a global company based in Dubai. The $125 million deal will see Aramex acquire 100 percent of Fastway Limited’s operations in Australia and New Zealand. Aramex employs more than 13,900 people in 354 locations across 60 countries and has a track record of expansion through acquisition in many countries, including Mail Call Couriers in Australia in 2014. According to Bruce Speers, Group Managing Director of Fastway Limited, ‘Fastway is very proud that from humble beginnings, we’ve grown into a globally-franchised courier company. The acquisition of our company by a major multi-national of the calibre of Aramex is a clear demonstration of the success that New Zealand businesses can achieve on a global stage. It’s a major endorsement for New Zealand know-how.’ Following the announcement, Franchise New Zealand interviewed the CEO of Aramex, Hussein Hachem, who told us that Aramex is particularly interested in replicating Fastway’s courier franchise system in other regions as it is well-suited to the company’s agile, asset-light business model. The full interview is online at www.franchise.co.nz/article/2259

The latest quarterly Franchising Confidence Index survey from Franchize Consultants has found that franchisors are positive in their outlook for general business conditions (net 33 percent), sales levels per franchisee (net 52 percent) and franchisor growth (net 56 percent). Their outlook for franchisee profitability increased from 26 percent to 44 percent, and this was reflected in responses from Service Providers such as bankers and accountants, who have experience of a broad range of franchises. 33 percent of Service Providers expected franchisee profitability to improve, with none at all expecting a decline. On sales, many franchisors noted that they were experiencing improvements in demand, with positive expectations for the next 12 months. Franchisor sentiment toward access to financing increased from 21 percent to 30 percent and Service Providers were also very positive in this area, reporting

There’s more good news, too. GDP forecasts have been revised, and they’ve gone up from growth of 2.4 percent in the 2015 calendar year to a predicted

16 EDIT Web News 2501 16.indd 1

However, both franchisors and Service Providers were less optimistic in their outlook for access to suitable locations and suitable staff. 50 percent of responding franchisors identified finding franchisees as the top challenge to their development. This is good news for business buyers, who can expect to find franchisors keen to engage with and assist potential new franchisees. They can also expect to find a wider range of opportunities in areas of high potential. However, it does mean franchisors need to work harder on promoting their opportunities and attracting the right buyers.

KIWI TAKES OVER BIG COFFEE BRANDS Retail Food Group has appointed a company owned by Andrew Morgan, its former general manager in New Zealand, as the master franchisee for Esquires, BB’s café, The Coffee Guy, Cafe2U and Brumby’s Bakeries.

The move marks a new era for the brands in New Zealand, which have previously been controlled from Australia. ‘The past few years have been challenging for everyone in the food retail sector,’ says Andrew. ‘RFG recognised that New Zealand customers and franchisees would best be served by having a national master franchisee who could focus solely on the growth of the brands in the local market, rather than just adapting what was happening in Australia. ‘We started to apply that approach over the last year with the launch of our new-look Esquires outlets, which have really hit the spot with our customers

ECONOMY ‘HUMMING ALONG NICELY’ The New Zealand economy is humming along quite nicely at present, and the low-point in fixed interest rates has not yet arrived. That’s the opinion of Dominick Stephens, the Chief Economist of Westpac, in the bank’s latest Economic Overview.

53 percent – an increase from 27 percent in the last quarter. Franchisors were asked for qualitative responses on how things were looking in their sector, and many noted that they were experiencing improvements in demand, with positive expectations for the next 12 months.

2.6 percent in 2016 and 2.9 percent in 2017. ‘That’s mainly because New Zealand dodged the feared El Niño drought,’ writes Dominick. ‘But we’ve also seen very impressive growth in tourism and Auckland construction. Overall confidence has held up better than anticipated, perhaps aided by low interest rates, cheap petrol and strong population growth.’ Looking further ahead, the forecast for 2018

and provided a bright, fresh look in the café space. That’s continuing to roll out across the network, and soon we’ll be launching a new evolution of the popular Brumby’s brand, too. Andrew Morgan has a long history in franchising, having started with McDonald’s in Hamilton in 1990. He rose to become first store manager then regional manager with the brand, before becoming a pioneer franchisee with Noel Leeming for five years. He was then recruited by Fastway Global to restructure the company’s operations in the Waikato then Brisbane and improve profitability for more than 100 franchisees. Following spells in convenience store and auto retailing, he returned to New Zealand in 2014 to head RFG’s operations here.

suggests GDP growth will continue, albeit at the lower level of 1.5 percent. However, one of the factors identified in the overview is that GDP growth is becoming increasingly dependent upon population growth. If population growth is running at 2 percent a year, that means per capita growth will be only a whisker above zero, it suggests. Recent variations in labour statistics don’t necessarily mean there will be further meaningful growth in the near future.

Franchise New Zealand

Autumn 2016

Year 25 Issue 01

22/03/16 4:35 PM


www.facebook.com/FranchiseNewZealand

www.twitter.com/FranchiseNZ

Driverless pizza delivery excites minister

Having your piping hot pizza delivered by a driverless vehicle might not be as far off as you think, and the Transport Minister is all in favour. Domino’s has unveiled plans for an autonomous delivery vehicle named DRU (Domino’s Robotic Unit) and New Zealand is one of the possible test sites. While DRU won’t be taking to our streets tomorrow, Domino’s says it has revealed its plans to demonstrate just how serious it is about informing regulation in this space. The news has been welcomed by Transport Minister Simon Bridges, who said, ‘This is an exciting opportunity for New Zealand. DRU is an early prototype, but the fact that New Zealand is being considered as a test site shows we have the right settings to attract innovation. DRU is a four-wheeled vehicle with compartments built to keep the customer’s order piping hot and drinks cold whilst travelling on the footpath at a safe speed from the store to the customer’s door. The prototype has been purpose-built with sleek, refined forms combined with a friendly persona and lighting to help customers identify and interact with it. Domino’s Group CEO and Managing Director, Don Meij said that autonomous vehicles are set to open up new opportunities and create an impetus for innovation for Domino’s globally and in New Zealand. ‘This highlights what can happen when disruptive thinking is fostered – it turns into a commercially viable and revolutionary product. It allows Domino’s to explore new concepts and push the boundaries of what is possible for our customers. The DRU prototype is only the first step in our research and development as we continue to develop a range of innovations set to revolutionise the entire pizza-ordering experience.’

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in brief • The troubled Stonewood Homes franchisor business has reportedly been sold to the Chow brothers, the property magnates who have made a fortune from strip clubs, hotels and commercial property deals.

• Congratulations to Rod Te Whatu of Streetwise Coffee of Palmerston North, who proved even more popular than Sonny Bill Williams on our Facebook page. What was Sonny Bill doing there? Visit www.facebook.com/ FranchiseNewZealand/ to find out.

• Restaurant Brands is to return to the Australian market by purchasing a multiunit franchisee with 42 KFC stores in New South Wales. KFC has been a strong performer in New Zealand recently after Restaurant Brands re-invested heavily in its company-operated stores here.

• The problems international franchises face when trying to apply local laws have been highlighted by the social media uproar over a Starbucks in Saudi Arabia which temporarily banned women during refurbishments.

• A financial advisor has criticised the decision to list Veritas, the owner of Mad Butcher and Nosh, after the company’s share price plunged from almost 50c to less than 30c last week. The drop followed a reduced profit estimate and the announcement that Veritas would not deliver a first-half dividend.

• McDonald’s New Zealand is to invest millions of dollars in a nutritional improvement programme that will see reductions in sugar, saturated fat and sodium across its product range. McDonald’s has spent over a year consulting with experts regarding its role in improving Kiwis’ meal choices.

We are passionate about Franchising! CALL US NOW 09 308-9925

read more on all these at www.franchise.co.nz/updates franchise.co.nz – PUTTING PEOPLE IN BUSINESS

EDIT Web News 2501 16.indd 2

17 22/03/16 4:35 PM


Fastest growing retail or consumer products business — New Zealand


franchise management: conferences

Holiday Inn Rotorua is tailor-made for franchises

FIRST CHOICE

for conferences T

he annual conference is the highpoint of the year for many franchises. It’s the one time when everyone gets together, when new plans are announced and new directions are discussed. It’s a time for training, for upskilling, for feedback and, above all, for networking – meeting new members of the team, sharing ideas, experiences, triumphs and disasters. Conferences are important in creating the culture of any franchise and setting the tone for the next year. It’s vital to attract as many franchisees as possible, and that’s why the choice of venue is so important. In New Zealand, Rotorua has established itself as a firm favourite. It’s easily accessible from all major centres, and offers a huge range of activities for delegates and their families – and if you have delegates from overseas, where better to take them than a thermal wonderland?

But within Rotorua, where do you choose? ‘The Holiday Inn, of course,’ says Julie Caracaterra. ‘It’s ideally located right on the edge of the Redwood Forest overlooking Whakarewarewa. That puts you out of the town centre, with all its distractions at break times, but close enough to all the major attractions to make arranging events and activities a breeze.’ Julie is Business Development Director for Holiday Inn Rotorua, and aims to make it the number one choice of conference venue for franchises. Since being appointed to her role, Julie has been working alongside general manager Kent Breeze to bring the personal touch to the hotel’s conference facilities. ‘At the same time, we’re part of the international IHG group so we can leverage off our global power. My aim is to make life easy for franchisors and delegates so they feel welcome at all times and want to come back for regional, national and even international events.’

state-of-the-art Top of the facilities available at the Rotorua Holiday Inn is the renowned Pohutu Cultural Theatre. ‘It’s a unique room filled with Maori carvings and artwork, with five water fountains at the back giving a wonderful ambience,’ Julie says. ‘It is also naturally lit – a big advantage for daytime events which helps conference delegates stay alert and connected. It can take 600

people in cocktail style, or 300 for dinner. It works exceptionally well for larger conferences as a plenary room, and in theatre style it can comfortably seat 500. Break-out facilities are extensive, and at any one time we have a range of rooms available for almost any size of gathering.’ Holiday Inn Rotorua has just completed a major refurbishment of many facilities. ‘All our conference rooms have been equipped with brand new, state-of-the-art AV, wi-fi compatible systems and surround sound. The system is so clever that delegates can link into the system with iPads, connect to the projector and even split the screen with up to four inputs.’ Julie is well aware that franchise groups come in all sizes, so she can tailor conference packages to suit. ‘Although we can handle large numbers, we’re becoming the “go-to” place for smaller groups, too,’ she explains. ‘Our normal day delegate rate is from $49-$52 per person but we are very happy to lay on special low-cost packages. One group with a lot of work to get through asked for lighter, healthier catering – as they pointed out, over-thetop catering tends to make people lethargic and unengaged, so we reduced food input and included lots of fruit. That way, we got the cost down to only $29.50 per head, and both we and the organisers got terrific feedback.’

kids stay for free Of course, it’s the additional facilities that make conferences particularly attractive, especially to partners and families who might choose to make a holiday of their stay. ‘More and more delegates are staying on for a few extra nights after their event with their families, and we encourage that – in fact, delegates’ children stay for free,’ Julie says. ‘Delegates and their families have access to our magnificent thermally-heated outdoor swimming pool, two outdoor spa pools, a newly-refurbished 24-hour gymnasium and the award-winning Chapman’s restaurant, while our Very Important Kids programme gives our youngest guests discounts at popular activities around town. ‘All the experiences Rotorua can offer are a short hop away, and with mountain biking being so popular now we even have an extensive bike storage facility with washing station. Or if you want a quiet day in, our Press Reader app enables guests to download any newspaper or magazine in the world for free. ‘All in all, our location, our facilities and our friendly and helpful staff make Holiday Inn Rotorua the ideal place for your next franchise conference,’ Julie concludes.

rewards for booking now For franchisors and conference organisers, Holiday Inn Rotorua offers a unique rewards programme. ‘It’s designed to recognise those people who do all the hard work behind the scenes and choose to book us as their venue,’ Julie explains. ‘They will receive redeemable points from the IHG international rewards programme which offers free accommodation or gifts based on the value of the event. And if they book a advertiser info conference before 31 July 2016, they’ll earn double Holiday Inn Rotorua points! www.holidayinnrotorua.co.nz ‘Call me now and let me help you make your conference at Rotorua Holiday Inn a really memorable event.’

Contact Julie Carcaterra P 0-7-349 9710 M 0274 740 619 julie.carcaterra@ihg.com

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SUCCESS?

Domino's is not just Australia and New Zealand's leading pizza brand – it's also one of the world's most advanced digital retailers. So if you're looking for a franchise that delivers on your goals, you can't go past Domino's.

Undisputed leaders in online ordering. Australia and NZ's first and most advanced mobile ordering apps.

State of the art digital store management tools in the hands of every franchisee.

Australia and NZ's only pizza creation app and only real-time pizza tracker.

Ongoing training and support for franchisees and their teams.

Innovative digital marketing with millions of customers assessable via email and social media.

A proven and trusted brand that's passionate about pizza and people.

Call 0508 437 262 or visit: dominosfranchise.co.nz


opportunity: food & beverage

Scott Bush: ‘We love looking outside the box’

MORE THAN just pizza Domino’s has changed its name. What’s coming next?

S

mall things can make a big difference. Recently, the company formerly known as Domino’s Pizza changed its name slightly, removing the word ‘Pizza’ altogether. This subtle name change reveals a great deal about the company and the breadth of their focus.

the results speak for themselves

While delivering hot, fresh pizzas has always been Domino’s core business, the company recognises that it’s important to offer the highest level of service to customers. They use technology and innovation to ensure their customers are satisfied with their entire experience while maximising each store’s efficiency by providing key tools to franchisees.

‘Our focus on “more than just pizza” is adding a direct benefit to our franchisees not only from a profit point of view, but also operationally,’ says Scott. ‘When you are a franchisee, there’s a lot to think about. It isn’t a walk in the park but we have so much available to help you every step of the way. We make sure everything we put into the market is easy-to-use, we help you learn the systems and processes, and we support you to ensure that you are using them to best effect. That way, we also ensure the only impact on your customers is a positive one and your business will go on growing.’

‘Domino’s believe in ensuring that franchisees have all the tools required to understand their business inside and out,’ explains Scott Bush, the company’s New Zealand General Manager. ‘That’s why we’ve invested heavily in processes and reporting, as well as marketing and delivery systems, too. We have been the first to market with so many of our innovations and technologies – if there is an idea that our stores and our customers could benefit from, we will research it. ‘We love looking outside the box, and that little name change emphasises the fact. Our business is about more than pizza.’

all about collaboration Domino’s prides itself on producing some of the most cutting-edge innovations in the retail and consumer world, with an in-house Design & Innovation Lab that allows thorough testing of new ideas and a quicker time to market to ensure Domino’s franchisees continue to enjoy their competitive advantage. ‘The results are often as much the brainchild of franchisees as the franchisor team,’ explains Scott. ‘It’s about identifying areas that will directly add value to franchisees’ businesses and finding solutions produced by people who ‘get it’. ‘I used to be a franchisee myself with 18 Domino’s stores, and like all the others I would suggest ideas that would offer a direct benefit to my business and those of my fellow franchisees. It’s all about collaboration.’

So does this constant innovation pay off? Well, Domino’s has enjoyed three years of double-digit growth with no signs of slowing.

run your business at a higher level Timothy Miller confirms everything Scott says. Timothy recently took over the Domino’s franchise in Bethlehem, Tauranga, and says that the company’s focus on all areas of the business enables him to run a better business. ‘I know the product is great, as customers are always telling me that, and my sales also prove that they like what they are eating! But it’s the technology and tools we are offered to allow franchisees to run a strong business model that really stand out. ‘The level of information we have about our stores is amazing. There seems to be a report for every area of performance, and they are very easy to read. If we need to know more about any particular area, then we have access to the team to create a new report or a new tool, or point us to one that already shows that information. ‘We also have some outstanding technology, such as GPS Driver Tracker, that really helps us to get our operations right within the store. Having visibility of our delivery staff at all times means we can run a tighter ship in terms of delivery times; we can tell exactly when the driver will be back to ensure their next order is ready to go straight away. This level of knowledge is gold to a franchisee – in a business that has such high levels at peak times it is paramount we get it right. The customers also really benefit from this technology because they know exactly where their order is and it is piping hot when it arrives. ‘I like the fact that before something new is released to the Domino’s market it has been well thought through to ensure that franchisees, store staff and customers all benefit. There’s no point releasing something that doesn’t add value. The subtle name change reflects what Domino’s is about as a company. It really is ‘more than pizza’.’

joining domino’s Timothy Miller: ‘We have some outstanding technology that really helps us to get our operations right within the store.’ franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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The investment required to become a Domino’s franchisee is around $400,000-$600,000. Scott Bush says the company wants people with the drive to succeed, good leadership skills and entrepreneurial flair. ‘If you want to work hard while having fun in a young, energetic and vibrant organisation, contact us today for more details,’ Scott invites.

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

21 22/03/16 4:35 PM


buying a franchise: financial matters

FRANCHISEES ARE NOT ALONE Daniel Cloete & Steve Seddon from Westpac look at how franchisees can work on their businesses

A

s the owner of a franchised business, you’ll experience your fair share of challenges. But whether you’ve been a franchisee for one month or 10 years, you should always take time away from the daily routine in your business and invest it in working on your business. By this we mean look at the big picture, identify any threats and opportunities to your business and develop a detailed action plan. This plan will become a ‘living’ document to be regularly reviewed, analysed and adjusted. But you don’t have to do it all yourself. This is where you will benefit from the combined knowledge and experience of your support network, including your franchisor and their support staff, fellow franchisees, your accountant, lawyer and business banker. You may also have a business coach, mentor or a trusted friend to provide feedback. Almost any challenge you face will benefit from the support these people can provide. Then at least once a year, you should undertake a complete review of your business and yourself with input from your ‘team’. Here are some of the areas to consider.

financial position How has the business performed and what are your financial objectives

for the next 12 months? Review the Key Performance Indicators with your franchisor and benchmark them against other franchisees in similar situations. Seek input from your accountant and other advisors. Consider your personal financial position. Are you getting a sufficient return for your efforts?

cash flow Are you making the best use of your business cash flow? In our experience, an increasing number of businesses Daniel Cloete find themselves falling behind in their obligations to the IRD. Talk to your business banker about setting up a separate business taxation account to provide for your GST and other taxation obligations. This will keep the money separate from your general business trading account and reduce the risk of it being used elsewhere in your business.

insurances Review your personal and business insurances. Don’t forget to include personal, temporary disablement, permanent disablement and trauma insurance. All too often, people moving from paid employment into business ownership don’t cover themselves for the unexpected. A broken ankle from a fall could put you off work for six weeks and destroy your business if you don’t have sufficient insurance cover in place. Speak to your insurance broker or business banker, who can tailor a policy to meet your requirements.

education Knowledge is power, so we all need to develop ourselves continually. Look at your weaknesses and develop a plan to build your knowledge and skills. For example, an understanding of financial statements will assist you in the business planning process. Can you calculate the break-even point for a business decision? Consider enrolling in some management courses at your local Chamber of Commerce or financial institution or attend one of

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• existing restauranteurs who have a commercial kitchen, or people who can lease one, require access to around $20,000 capital plus two vans • territories available throughout New Zealand.

contact Jason on 027 442 4140 jason@spitroast.com spitroast.com/franchises

We get invited to all the best Parties 22 Westpac 22.indd 1

Want to be Up and Running Straight Away? Franchisee territories with established customer bases available right now! Well established customer bases - start immediately High quality products for pest, insect and odour control Commercial and domestic customers Join the team today to enjoy full training and support, multiple revenue streams and great growth potential. 'RQpW GHOD\ FDOO &UDLJ WR ĂŽQG out about the successful franchisee territories that are available now! Phone 027-565-6418 ecomist.co.nz Franchise New Zealand

Autumn 2016

Year 25 Issue 01

22/03/16 4:30 PM


0 N N2A.LITY O I S IO T ER UNC

Westpac’s Managing Your Money workshops to build the skills you need. Your franchisor or fellow franchisees may be able to assist in pointing you in the right direction.

VNCED F A NITOHW ENH W

industry groups and associations

ENSURE YOUR FRANCHISEES ARE ON THE SAME PAGE

In addition to your own franchise, look outside. Joining a local business or industry group is a good way to network with others. Most meetings are held outside business hours and give you the opportunity to meet with like-minded people who may be experiencing the same issues and challenges. Meeting with people from outside your business circle can provide reciprocal business opportunities. Female franchisees may consider joining a specialist women’s group such as Westpac’s Women in Business initiative, the Venus Network or Professionelle.

community involvement

Stay on top of your franchise network easily and effectively with Franchise Infinity.

Businesses and their owners can benefit from targetted community involvement. A number of franchisors will assist in identifying an appropriate charity or sports team, or even insist their franchisees get involved in the local community. There is nothing more satisfying and rewarding than to see a tangible benefit to your community. This will also provide an opportunity for involving your staff members, which adds to team camaraderie.

Franchise Infinity is an all-in-one software application that combines a range of effective management tools into one place, allowing you to manage all the critical aspects of your franchise – compliance, communication, and ultimately the performance of the business.

work/life balance

Call us today to arrange a demo on 0800 555 8020, or email us at sales@franchiseinfinity.com. Visit franchiseinfinity.com for more information.

The risk of personal burn-out and relationship issues is high in the business sector. We all understand the need to concentrate your time and effort when establishing or learning your business, but there comes a time to step back and look at your work/life balance. Set some goals and take time away from your business – you (and it) will be all the better for it. Catch up with friends and family, play some sport or take a family holiday.

SOFTWARE TO RUN YOUR FRANCHISE

succession plan or exit strategy

PERFORMANCE

Look at your goals for when you eventually leave the business. Will you pass the business on to your children (if they want it) or sell? Look at the current value of your business and determine the best time to sell. If your business is in a retail environment, the term remaining on your lease will impact the business value, as well as the length of the franchise agreement.

COMMUNICATION COMPLIANCE

Take control and look for ways to maximise your sale value when the time comes. Speak to a business broker who specialises in selling franchise businesses and consult your accountant about preparing the business for sale up to three years ahead.

Before

stay on top of the business The above headings offer you the basis for a formal review process, but your business will run much more smoothly if you arrange regular meetings throughout the year with members of your support group.

After

The obvious place to start is with your franchisor and fellow franchisees – they’ll understand the challenges you face better than anyone. Then there’s your accountant, your lawyer and your banker – meeting with them regularly will help you address issues before they become problems. Has anything changed since your last meeting? Are property leases and franchise agreements coming up for renewal? Does the franchisor or landlord have an expectation for you to spend money on a store refurbishment or equipment upgrade? Your franchise business banker is well placed to assist you in reviewing your bank accounts and loan structures. They will be able to refer you to a range of other financial specialists: financial planners, equipment finance specialists, transaction specialists, etc. New and improved financial products and services are being continuously developed and may save you time and money. If you have a business coach or mentor, ensure that you have regular meetings with an agenda. Agree actions and outcomes – and ensure they hold you advertiser info to them. In this way, you will continue to make progress towards your agreed goals. Daniel Cloete is the National And don’t forget to involve your staff and Franchising Manager for Westpac. You can contact share goals with them where appropriate. Daniel or the Westpac Franchise After all, they are in the best place of all to Team on 0800 177 007 or email: make things happen. franchising@westpac.co.nz Successful businesses continually improve and evolve. As a franchisee, you have a huge amount of support and information available to you. Make the most of those around you to help you make the most of your business.

The information contained in this article is intended as a guide only and is not intended as an exhaustive list of matters to be considered. Persons entering into franchise agreements should seek their own professional legal, accounting and other advice.

franchise.co.nz – PUTTING PEOPLE IN BUSINESS

Westpac 22.indd 2

Huge, never-ending market and repeat business! We have developed a system which provides alloy wheel repairs to a very high standard in a short space of time. This means you have delighted customers and get to lots of jobs in a day. Enjoy: • • • • •

Fantastic technical training Great sales training and marketing Devoted franchise support team Low overheads High potential income

Exclusive territories across New Zealand. Price on application (includes equipment and training). You also need a suitable van, computer and a mobile. Alan Thomas – Franchisor/Owner 021 537 311 Head office: 04 477 0284 alanthomas@wheelmagician.co.nz www.wheelmagician.co.nz

23 22/03/16 4:30 PM


Some of the biggest Brands in NZ have leased premises at the Grange Warkworth

What do they know? That you don’t ? Auckland City Council has nominated Warkworth as the next satellite town of Auckland Growth over the next 5+ years is likely to see the population in the area exceed 20,000 The Grange is the only service centre on SH1 between Silverdale and Whangarei * 5.2M vehicles pass The Grange yearly – that’s 14,000+ per day The Grange services popular Matakana, Snells Beach, Leigh, Wellsford and the wider Kaipara and Rodney areas The Grange is a significant retail centre with over 30 retail stores - over 70% leased Limited number of retail stores still remaining from 60m2 – 500m2

Lease and purchase options available Contact Jan to find out what opportunities would suit you

*NZTA

Jan Hutcheson MASTER AGENT

M: 021 655 558

jan.hutcheson@bayleys.co.nz

Mackys Real Estate Ltd, Licensed under REA Act 2008


opportunity: food & beverage

THE WIT TO WOO Vincent Chan and Remi Bertlesen: Taking healthy sushi to schools, workplaces and anywhere else where people appreciate a healthy option

Mr Woo Sushi franchisees choose high demand and low overheads with simple operation

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he big advantage of Mr Woo Sushi for me was that I’d be selling healthy food,’ says Remi Bertlesen. ‘There is a lot of competition in the food business, but the product gives me an edge in the market place.’ Remi is the latest franchisee for Mr Woo Sushi in Auckland, launching his mobile business just six weeks ago. ‘Obviously it’s early days but the franchise team and my fellow franchisees have been very encouraging and supportive. They explained that you need to be positive and patient to build relationships with your clients, so communication skills are an important part of this job.’ Remi came to New Zealand from Norway a dozen years ago. ‘I had a student placement from university where I was studying social work. I met someone here, as they say, and although Norway is wonderful, New Zealand is much warmer! So after completing my degree I returned six years ago and I’ve been here ever since. ‘Deep down I’ve always wanted to start something on my own. Food has been a long-term interest and I was reading Franchise New Zealand magazine when I found Mr Woo Sushi. I had limited funds to commit and I reckoned a coffee van would be very hard work with so much competition, but Mr Woo looked interesting and is pretty new on the scene. Also, it has tapped into an essential element, which is healthy food. This really expands the marketing opportunities and I’ve had a lot of success at both businesses and schools where healthy options are rare. I have a large area to cover – much of West Auckland – so I’m very confident I’ll be able to build up a big business here.’

simple concept Mr Woo Sushi is a simple concept – taking healthy sushi to the workplace. The brain child of franchisor Adam Parore, the bright green vans are beginning to make a splash in urban areas around New Zealand. ‘People have less time today, so they are increasingly buying lunch out,’ says Adam. ‘At the same time, though, they are becoming more conscious of what they eat and there is a strong move towards healthier options. Sushi fits this bill perfectly, and Kiwis love it – in fact, our sushi consumption is among the highest per capita outside Japan, so taking it into workplaces and schools makes a great deal of sense. ‘The Mr Woo business model means franchisees don’t have to make their own sushi – it is all produced by highly-qualified sushi chefs in centralised kitchens, so all franchisees have to do is place their order and pick it up each morning. This means they don’t spend hours on preparation and don’t waste time making product on the spot, like other food or beverage sellers. That leaves them free to concentrate on serving customers and maximising sales.’ franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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big potential It was this simplicity that attracted new Auckland East franchisee Vincent Chan. ‘I’ve been in the IT industry for ten years,’ he explains. ‘I worked up the ladder and had reached project manager by the time I decided to leave last year because I was finding it increasingly hard to balance my young family with the hours required.’ ‘It had always been an ambition of mine to have my own business and we looked very seriously at a number of café options. However, they were far more than we could afford and, as my parents owned a takeaway, I knew just how much hard work the food business could be.’ Vincent had frequently bought lunch from a local sushi bar and noted that ‘the queues at lunch time frequently went round the block. It was very clear there was strong demand for a healthy option, and how much better could it be if you didn’t have expensive premises but delivered to people’s doors?’ Vincent has taken a large area of East Auckland and is convinced the area will allow him to build a strong business in a relatively short time. ‘Mr Woo Sushi is a very strong brand already,’ he says. ‘I spent two days training with Nick Eschenbach, the franchisee in Christchurch, and he had an almost explosive start!’ Vincent is prepared to follow Nick’s lead. ‘He worked hard to establish his business and so will I, but I’m also looking forward to starting and finishing early and having more time with my family. In the corporate world it was pretty much work, chores, dinner, bed, but with an eight-month-old and a three-year-old, my wife is going to appreciate having me around the house a bit more!’

opportunities everywhere Territories are still available for Mr Woo Sushi in towns and cities throughout New Zealand. ‘The investment of just $49,000 +gst includes all fees, a fully-fitted van and four weeks’ dedicated training,’ Adam says. advertiser info ‘Funding options are available to the right people and we have a revenue guarantee in place for the first two weeks of business. A gross income of between $70,000 and $100,000 is easily achievable, so if you enjoy getting out and about and can build relationships, give me a call.’

Mr Woo Sushi PO Box 47 818, Ponsonby, Auckland www.mrwoosushi.co.nz Contact Adam Parore P 021 781 250 F 0-9-523 0355 adam@sba.co.nz

25 22/03/16 4:38 PM


franchise development

understanding franchising

bottom line benefits

All About People understands franchising, too, having worked with organisations such as Laser Group, Palmers, Flooring Xtra and SNAP Fitness. ‘We know about the need to come up with practical everyday plans for franchisees and their staff, and how to provide specialist training for support managers so that they can include it in their field visits and audits and help avoid issues before they happen.’

Michelle Macdonald

All About People improves franchise businesses by keeping them safe

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here are a lot of misconceptions about Health and Safety. It’s not something you bolt on to a business because you’re scared of legislation – it’s something you build into your business to make it perform better. Once you think of it that way, it’s a benefit, not a threat.’ Michelle Macdonald is passionate about her topic and, with the new Health & Safety At Work Act coming into force (see page 38), she says that franchises should be grasping the opportunities now. ‘We have franchise clients who have been winning contracts because they have Safety Management Plans in place, and clients with increased productivity, greater efficiency and less wastage because of it. They are upskilling their franchisees, attracting better staff and retaining them. ‘All those benefits go straight on the bottom line for franchisors and franchisees alike. Health and Safety isn’t about hard hats and hi-vis vests – it’s all about people.’ It’s no coincidence that All About People is the name of the company of which Michelle is Managing Director. ‘We have over 30 years’ experience of providing practical solutions to help embed a health and safety culture in companies,’ she says. ‘Our staff work right across the country to analyse issues, devise plans and solutions, and train people to keep them safe from accidents, slips and trips, stress, fatigue and security risks.’

All About People uses a straightforward process to help franchises protect their people and their brand. ‘We look at what they have in place and what they need. We work with franchisees on site to put together a risk register, then create a customised template for a Safety Management System and a step-by-step guide to follow. Then we arrange workshops in as many centres as necessary to explain how to use the system – and why. Ongoing, there’s a monthly email checklist and 24-hour phone and email support for franchisees and field managers.’ Michelle sees this as an area where franchises can offer a huge advantage. ‘Look, every small business has to comply with the new Act, and that can be a big ask. Franchises have the buying power to bring costs down for everyone. ‘It’s up to you what you do, but doing nothing is not an option. If you’d like some help from franchise-experienced experts, give us a call.’

advertiser info All About People PO Box 730 Whangaparaoa 0943 www.allaboutpeople.co.nz Contact Michelle Macdonald P 0800 023 789 M 021 736 752 michelle@allaboutpeople.co.nz

From Lawn Mowing To Bookkeeping, There’s A Service To Suit You! Business Group

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expressbusinessgroup.co.nz 26 All About People 26.indd 1

Franchise New Zealand

Autumn 2016

Year 25 Issue 01

22/03/16 4:40 PM


franchise association news

Team

Vision

Growth

B

YOUILD UR IN BR G Motivation AN D Training Inspiration

2016 conference

August 4 – 5th 2016 – Tauranga

BUILDING YOUR BRAND

This year’s Franchise Conference is in Tauranga and promises to be better than ever

T

he annual Franchise Conference takes place in Tauranga this year on Thursday 4th and Friday 5th August. The conference is open to everyone with an interest in franchising: intending and established franchisors, single and multi-unit franchisees and anyone with an interest in New Zealand’s flourishing franchise sector. With franchising contributing over 10 percent of the country’s GDP, the conference is a must-attend for anyone wanting to grow their business.

learn from the experts The theme of this year’s conference is Building Your Brand, and it’s attracted a first-class line-up of speakers and presenters. In the franchise world there’s no bigger name than McDonald’s, and delegates can look forward to hearing from Chris Brown. McDonald’s Director of Marketing, who has been part of the team that has re-invented the business across Australia and New Zealand. His presentation will touch on the implications of the digital age, empowered consumers and the need to be fast or last. He will also reflect on the role of leadership from both head office and franchisees. Another key presenter is Jewli Turier of the globally-recognised Franchise Relationships Institute. Jewli will share five strategies, based on cutting-edge psychological research, on how franchisors can better engage franchisees at crucial stages of their business journey. Learn how to get new franchisees off on the right foot; how to adjust your support to meet the needs of mature franchisees; how to create a collaborative culture; how to bring your brand values to life; and how to better engage franchisees during times of change. Jewli will also be presenting a highly interactive workshop on how to put these strategies to work in a franchise network. There’s also another session followed by a practical workshop on Switch Thinking. Presented by Bruce Ross, this workshop combines tough-minded practicality with an understanding of how to tap inherent capability to help you find breakthrough solutions on pressing business issues. From the UK, Michael Eyre, the franchisor of

Warning: franchise conferences can be Hobbit-forming. Hobbiton is one of the social venues in 2016. franchise.co.nz – PUTTING PEOPLE IN BUSINESS

EDIT Conference 27.indd 1

eco-lighting specialist Blazes Renewable, chairman of the BFA and board member of the European Franchise Federation, will provide an insight on the latest trends in franchise development and legislative issues. And for anyone looking at expanding overseas, there will be a special panel session featuring some of New Zealand’s most successful international franchisors – people who have taken local brands to China, Europe, the US and the Middle East. Meanwhile, new and established franchises alike will benefit from Gaylene Anderson’s session on ‘Building a marketing campaign that fits your budget’. What works and what doesn’t? Using her vast experience in advertising, Gaylene will focus on devising clever campaigns that drive return on the bottom line.

sharing ideas ‘All these events and more will take place in the atmosphere of sharing and collaboration that characterises the franchise community in New Zealand,’ says Brad Jacobs, chairman of the Franchise Association of New Zealand which is organising the conference. ‘In addition to a full programme of speakers, workshops and round-table sessions, there will also be the chance to network with industry leaders from all sectors of franchising, and to pick the brains of people who are facing the same issues as you.’ Nathan Bonney of Mexicali Fresh and Burger Wisconsin has been in franchising for more than a decade and regards attending the annual conference as a must. For him, ‘It’s a fantastic opportunity to meet with a bunch of franchisors and have some conversations and networking. It’s only once a year and it’s great.’ And David Steytler, managing director of sKids, agrees, saying, ‘If you’ve got a problem, chances are someone else has the solution and vice versa. It’s a great way to share information on what’s most relevant in the industry at the moment.’

mixing business and pleasure To help people meet, make connections and share opportunities and issues, there’s a full programme of social events, including a night of fun and games at Hobbiton, a gala dinner at Mills Reef Winery and meet-and-greets and breaks throughout the conference. The full conference package includes two nights’ accommodation, two full days of conference and two unforgettable social events, and no-accommodation packages are also available. ‘If you’re a first-time attendee, we can promise you a warm welcome,’ says Brad. ‘You’ll be amazed at just how friendly the franchise community is and how easy it is to meet exactly the people you can most learn from. I know – I was new myself 11 years ago!’

more info To find out more about this year’s Franchise Conference, go to www. franchiseassociation.org, email Sarah Watene at sarah@franchise.org.nz or phone 0-9-274 2901. The conference is open to both members and nonmembers of FANZ.

27 22/03/16 4:39 PM


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

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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


opportunity: home services

growing their own

futures The V.I.P. Home Services franchise proves its value time and time again

L

inda Halliday is astonished to realise she has been running her own V.I.P. Home Services business for nearly 10 years. ‘It’s gone really quickly and I definitely made the right choice. I have a profitable business that has allowed my daughter and me to lead the life we want – including an overseas trip every year.’

Jason Sycamore: ‘I decided to take charge of my own destiny.’ Linda spent 16 years on the other side of the Tasman, mainly working in the seafood industry in Sydney. ‘When I decided to come home, I knew an ordinary job wasn’t going to get me ahead so I started risk or reward? to look for a business. Once I found V.I.P. I rejected everything else. With a name like his, Jason Sycamore was always destined to work in the The local area master franchisees in Wellington, Sandra and Rodney Foote, great outdoors but it wasn’t until he joined V.I.P. that it actually happened. were just so helpful and obliging. They encouraged me to speak to other ‘I’d been in the print industry all my working life, but when I was 45 the franchisees and I discovered V.I.P. has a great reputation with company closed the local works and offered me a six-figure sum, and a franchisees and customers alike.’ relocation package to take a role in Auckland. Well, I’ve been in the Bay choose your business of Plenty all my life and I figured if the job didn’t last I’d never get back to Tauranga on a decent salary. I decided it was as good a time as any to V.I.P. offers two types of franchises: indoor, which includes all types of change careers and take charge of my own destiny.’ cleaning, and outdoor, which includes lawnmowing, gardening and other outside jobs. Linda bought an indoor business covering both Lower and Upper Hutt and felt confident right from the start. ‘Sandra and Rodney had trained me well in how to run the business as well as how to do the work, and I’d been out with three local franchisees,’ she says. ‘And because V.I.P. pays you during the four weeks’ training and provides an income guarantee during the induction period, I felt pretty secure. Once you’re established, the ongoing support is invaluable: we have regular meetings and training sessions, and Sandra and Rodney always seem to have solutions for everything from carpet stains to awkward customers.’ After 10 years, Linda’s business is bigger – and smaller. ‘Bigger in terms of income and smaller in terms of geography,’ she explains. ‘The V.I.P. system allowed me to build up my customer base very quickly then sell the more distant clients on to other franchisees. In addition to the financial benefit, it also enabled me to spend less time travelling and more time earning.

Linda Halliday: ‘I definitely made the right choice’

‘Apart from occasional one-off special cleans, I now enjoy a standard working week and have a full-time employee to give me a lot more flexibility. I think the business is very much what you want to make of it – if you take pride in your work then you’ll be in demand. It’s a great franchise.’

franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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Jason admits he knew little about V.I.P. ‘other than seeing the trailers around,’ and his previous experience of gardening was confined to mowing his own lawn. ‘But I’d lost a lot of weight and I thought an active franchise would help me keep it all off. I looked at some other options but my final choice was V.I.P. because they are such regular winners at the Westpac New Zealand Franchise Awards.’ So three years ago, Jason threw himself into a new career and hasn’t looked back since. ‘My Tauranga business has built up quickly and neatly, and within a year I was making the same as, or better than, the offer I’d had in Auckland! Mind you, I worked hard but I’m used to that and the V.I.P. training really equipped me for the job. And you learn to think outside the square. The lawnmowing might slow down in winter but there are plenty of other jobs to do such as water blasting or cleaning out the gutters. It’s worked very well and I’m so busy I’m glad V.I.P. gives me the option of employing someone when I’m ready.’

flexible entry ‘Our flexible entry programme is designed to provide you with the level of income you choose from day one,’ says Estelle Logan who, with husband John, is V.I.P’s national franchisor in New Zealand. ‘Investment starts from as little as $15,000 +gst and equipment, including the four-week paid training period and our induction income guarantee. ‘People like Jason and Linda choose V.I.P. because it allows them to build successful, growing businesses. Some have returned from overseas, others are new to New Zealand; some are facing job insecurity; others just want to make a fresh start. Whatever your reason, give us a call and find out how we can help you to build a business that will suit your needs.’

advertiser info V.I.P. Home Services PO Box 276 186, Manukau, 2241 www.viphomeservices.co.nz Contact Nationwide Enquiries P 0800 84 74 96 Estelle@viphomeservices.co.nz

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opportunity: auto services

a business with staying power Touch Up Guys franchisee still in the same profitable business after 21 years

Andy Guest: ‘It makes a great business’

A

so it’s always there if a customer comes along. The only downside is that dealers don’t always pass your name round to their competitors,’ he chuckles.

Andy was one of the first three Touch Up Guys franchisees in New Zealand back in 1994. ‘I have a very mixed background,’ he explains. ‘I’d been a baker, publican, truck driver and courier but I really wanted to do something for myself. I found Touch Up Guys at a franchise expo. I’d always had an interest in cars and the guys on the stand were really helpful and genuine. I thought, “That’s for me,” and I haven’t looked back since.’

Andy’s business thrived so much that within five years he had more work than he could handle. ‘I decided to sell 75 percent of the business on to a new franchisee. That allowed me to recoup most of my original investment and then I started working with a large wholesaler so I never even had a drop in turnover! I reckon there’s room for a lot more Touch Up Guys around and we have a great franchisee spirit – five of us get together for breakfast every month and have a hell of a giggle and a chat.’

ndy Guest has owned his Touch Up Guys franchise for 21 years and still loves what he does. ‘Touch Up Guys makes a great business,’ he says. ‘It’s given me a good living all these years and generated enough income to allow me to invest in property, so in a sense I’ve had two businesses all the time.’

Touch Up Guys is a mobile service that repairs bumper scuffs, stone chips, scratches and other damage to virtually any vehicle. ‘Whether the economy is up or down, the number of cars on the road continues to increase so we’ve found there’s always demand for our services,’ says Martin Smith, the master franchisee for New Zealand. Andy bought a central Auckland territory where the majority of his work has been at car dealerships. ‘Frankly, I’ve had to do very little selling over the years,’ he admits. ‘I went into all the yards and when the owners realised I could save them a great deal of money, time and effort, it just snowballed. We do same-day repairs and the car never leaves the yard,

• The largest Franchise Operation Refilling & Remanufacturing Inkjet and Laser Cartridges in the world

A complete Touch Up Guys franchise package costs between $88,000 and $120,000 +gst, depending on van leasing options, and includes full training on the Gold Coast. ‘If you are good with your hands and are a bit of a perfectionist, this franchise offers a thriving business to the right people – male or female,’ says Martin. ‘Call me now.’

• New store areas and resales available • Turn Key operation • Full training & support provided

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FOR A LIMITED TIME AT THE

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Tel: 03 446 8600 Mob: 0274 339 829 Email: geoff.smith@cartridgeworld.co.nz Cartridge World stores are independently owned and operated

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franchise.co.nz – PUTTING PEOPLE IN BUSINESS

Touch Up Guys 31.indd 1

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Health Smart Heat Pumps is a unique opportunity to own and operate your own heat pump servicing and cleaning business, while playing a significant part in shaping a quality brand and concept. Health Smart Heat Pumps Head Office and support centre is based in Christchurch, with franchises currently operating in Christchurch and Auckland. We are seeking individuals who share our same vision, passion and enthusiasm, who are quality conscious and service driven. To find out more about the Health Smart Heat Pumps franchise opportunity visit our website or contact us for an application form.

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Touch Up Guys 444B Beach Road, Murrays Bay, Auckland www.touchupguysfranchise. co.nz Contact Martin Smith P 0800 286 824 M 021 721 430 martin.smith@touchupguys.co.nz

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running a franchise: improving performance

Want a Franchise that really Delivers? Choose PACK & SEND™ – buy a business not a job! Awarded Emerging Franchise System at the Westpac New Zealand Franchise Awards, PACK & SEND is one of the fastest growing franchise systems in New Zealand. Be part of a growing international franchise network which is becoming a leader in the freight, packaging and logistics sector, providing “No Limits” to your customers and your earning potential. The PACK & SEND offer includes: • Unique Business Model • Award Winning Franchise System • Be Your Own Boss • Low Staffing Levels • High Gross Profit Margin • Low Entry Level Costs

BECOME A PACK & SEND FRANCHISEE Opportunities available in a town that you know and love! There are real opportunities for you to become an owner of one of the franchises available right now in key metropolitan markets and provincial main centres throughout New Zealand. For further information about the ‘Pack & Send Franchise Opportunity’ visit our website

PACK & SEND DELIVERS DREAM LIFESTYLE Bill and Jo Lawrence have stepped out of their corporate lifestyle and have opened a Pack & Send outlet in Nelson City.

Glenice Riley offers advice on how to make the most of a franchise opportunity

or call Matthew Everest at Pack & Send New Zealand on (03) 982 7252

“We liked Pack & Send’s business model, customer focus and its overall customer proposition” says Bill. “We’ve worked hard over the years and wanted to get back to a more balanced family lifestyle. Pack & Send offered us the opportunity to do something exciting and build a business that has customer service as one of its cornerstones.”

S

o you’ve made your mind up. You’ve done your homework, you’ve found a franchise that fits both your pocket and your ambitions and you’re ready to take the plunge. You’re about to get very busy, so take a few minutes now to think about what you can do to make the most of the opportunity before you. I’ve worked in franchising for over 20 years as a franchisee, franchisor, broker and consultant, and I’ve seen all sorts of people find great success in their chosen franchise. I’ve also seen some who never quite achieved everything they could – or should – have. What are the factors that made the difference?

passion Successful people need qualities such as focus, self-reliance, direction and determination, but in many ways the single biggest predictor of success as a franchisee can be summed up in one word – passion. If you are absolutely passionate about your business then you are far more likely to succeed. You need to truly love the brand, the business and what you do. If you are passionate, you’ll give your customers the result they’re looking for because you care and because it’s important to you – whether it’s the best haircut, glowing skin, a weed-free garden or a fantastic cup of coffee. Passion for your business gives you a clearer vision about the brand and how you can leverage it to build your business. If you are doing something that you love, then you won’t feel as much of the stress and strain as many business owners. It takes hard work and long hours to make a business work, especially in the early days, but if you love it then you’ll have a more positive approach. Your passion and commitment to excellence will rub off on your customers and staff; people will want to work with you and customers will want to spend money with you. Passion focuses you on delivering the best service and looking after your customers. That’s what generates sales, and without sales you don’t have a business. Everything else follows.

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Contact Wayne Billings - Conference Business Development Manager Ph 09 526 3024 or email wayne@waipunahotel.co.nz www.waipunahotel.co.nz

32 EDIT High Achiever 32.indd 1

Passion comes before money. If your decision to invest in a particular franchise is driven more by the thought of making money than by a passion for that industry, you won’t achieve the same results as someone driven by passion. Passionate franchisees do much better – and have a whole lot more fun – because they are working at something they love in a business that matters to them. They are excited and proud of what they do, proud of their brand and comfortable talking about it to anyone and everyone. It pushes their buttons.

resilience Sometimes, when we try something new, it is more difficult than expected. In any business, getting started and getting up to speed takes time. A major miscalculation that new franchisees often make is expecting to be operating at peak capacity and efficiency on day one, with all systems in place and everything firing on all cylinders. Even with all the training and support you’ll get in a franchise, that probably won’t happen, so don’t set yourself unrealistic expectations. You need to allow time for customers to get to know your business and products or services. You need to build awareness of your business in your local community and grow your customer database. It takes time for staff training to kick in, for certain tasks to be become instinctive and for your team to gel. You may be new to the industry, to managing people and to running a business so give yourself time to find your feet. It doesn’t happen instantly but don’t get downhearted - persist. Franchise New Zealand

Autumn 2016

Year 25 Issue 01

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how to become a

HIGH-ACHIEVING FRANCHISEE Nothing worthwhile was ever achieved overnight or without effort. Don’t expect there to be no hiccups along the way – they are inevitable. Expect the unexpected. Can you persevere when the going gets tough? Remember, it’s not what happens; it’s what you do about it that counts. What will determine your success is your ability to think on your feet, to pick yourself up and keep going when things happen that you didn’t foresee.

positivity Be prepared for the reality of the small business lifestyle. Are you anticipating business days filled with serving customers, meaningful meetings, business wheeling and dealing and money rolling in? Dream on – in reality, you’ll often find yourself up to your neck in all the other things that have to be done. You’ll be wearing many hats: marketing, dealing with suppliers, doing paperwork, managing the business and your team if you have staff, putting out fires (not literally, I hope), making your own tea and working long, unsociable hours. You’re it – the buck stops with you. Can you remain positive throughout the ups and downs of business ownership? The bad days, the grouchy customers, the mistakes and the constant interruptions? Your outlook and attitude will impact all those around you, your staff, customers and the franchisor, and your success will be a reflection of your outlook. Is your glass half full or half empty? Will you look for ways to make things work, or look for someone to blame for things not working? When you are facing issues in your business, you need to be able to look at the reason for them and take ownership of them. Things go wrong sometimes: accept that, learn from it and move on. That’s what the high achievers do.

focus on what matters Apply the 80/20 rule – spend 80% of your time on the 20% of the tasks that are going to produce the biggest results. As a business owner, you’re like the conductor of an orchestra. To make beautiful music you need to be focussed on marketing, sales, providing fantastic service, looking after your customers, inspiring your team and inspecting what they’re doing to ensure your standards are maintained. It’s easy to become bogged down with bookwork and administration, but this is not an area that makes you money (although it can cost you money if it goes wrong). Can you entrust these tasks to someone else? Being in the back office won’t build your business as much as being on the front line and driving sales.

istockphoto.com/PhonlamaiPhoto

Manage your business by walking around. Check what’s happening and keep your team accountable. Pay attention to every aspect of your business, maintain high standards in everything and insist on delivering only the best that you and your team are capable of. Don’t expect what you don’t inspect.

follow the system It seems really obvious, but follow the system you’ve paid for. Would you pay to lease a building then not use it? When you invest in a franchise business you are buying a tried and tested system that has been proven to work in other successful businesses. Others have already done the hard work for you to find out which systems and processes work and which don’t. You’ve invested in learning from their mistakes – don’t invent new ones of your own. Accept that being a franchisee limits what you can and cannot do in your business. You must be willing to provide the product or service at

franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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a standard that is consistent throughout the whole franchise. Don’t cut corners or change ingredients. If you are not willing to work within the boundaries that are provided by the franchisor, then there is little point in buying a franchise. The most successful franchisees are the ones who execute the system best. They focus on putting it into practice rather than wasting their time and energy trying to change it – in other words, they follow the recipe. They still think about what they are doing constantly and contribute new ideas to the franchise, but they don’t re-invent the wheel.

look for continuous improvement A franchise is an exclusive club – a club full of members who have exactly the same type of business as you. When you become a franchisee, you become part of a group using the same brand, products, services and systems to operate your businesses. Despite this, you won’t all be getting the same results. By sharing information, you can learn what you are doing well and where you have room for improvement. Even better, by learning from those franchisees who are doing well in areas you’re not, you can find out how to make those improvements in your own business. Some of the most successful franchisees I’ve seen are those who constantly seek out ‘best practice’ information. Regularly review your business’s actual performance against your own goals and against Key Performance Indicators (KPIs) across the group. Identify the areas of your business to improve and talk to the franchisees who are doing best in those areas. Set aside time every week to talk with high-performing franchisees in your system.

have a personal/professional line Most New Zealand businesses employ fewer than five people and when you’re working with the same few people day in and day out, it’s easy to get very close to your team. One of the things many franchisees struggle with is being friendly with their team but not actually becoming their friend. That can cause problems when someone lets you down or disciplinary issues arise. Employees will have their own standards and agenda, and they won’t necessarily be the same as yours. Always remember, it’s your business and you need to be able to take the actions necessary to keep it running properly and profitably – to protect their livelihood as well as yours.

be realistic You are less likely to fail if you have realistic expectations from the start. In my experience, franchisees often have unrealistic expectations as to how much money they will make (and how quickly it will happen), and how much the franchisor will do to build the business for them. The more you talk with the franchisor before you start to ensure that your expectations are aligned with reality, the less likely you are to have conflict with your franchisor later on. This is another area where talking to other franchisees in the system, both before and after buying the franchise, can be helpful.

understand the money There is plenty of advice available regarding the financial resources that you’ll need for your business; needless to say, having sufficient capital to purchase and set up your business is essential. So is having enough money to live on until you break even, but people don’t always allow for this. No business will make money on day one and it may be some time before it is actually able to pay the bills, let alone a salary for you. Don’t let this put you off, though – plan for it.

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When you start your business, understand that there are three different levels of break-even and set yourself targets for each. These targets will be the number of dollars you need to be making and the date by which to be making them. Break-even No.1 This is when your franchise is generating enough revenue to pay all the costs in the business except paying yourself. Break-even No.2 Your franchise is able to pay all the costs in the business plus pay you a reasonable market salary appropriate to the position that you hold within your business and the industry that you are operating in. Break-even No.3 Your franchise pays all the costs for your business, plus an appropriate salary for yourself, plus a return on the capital you have invested in setting up the business. By knowing these three targets, you’ll have a better understanding of exactly how your business is progressing. It also helps you be disciplined: don’t expect to pay yourself until your business reaches the required level. Taking money out of the business too early will cripple it. Franchisees who haven’t previously owned a business can run into problems when they’ve been in the business for a year or two, see money in the bank and spend it on a holiday, a car or a boat, rather than applying caution and re-investing money in the business to keep it going. Cash in your bank account isn’t profit, and profit isn’t cash to pay the bills. Understand what money your business needs and where it is going – and if you don’t, get expert help.

know who does what Although the franchise brand will have value and any national marketing will help to bring customers to your door, your franchisor is not solely responsible for your success. Think of it this way: when you buy a franchise, the franchisor provides you with a toolbox containing the brand, systems and procedures for you to run your business. However, you’ll be the person on-site actually operating the business on a day-to-day basis. They can’t do it for you, so don’t expect the franchisor to run your business. You need to open the toolbox, pull out the tools, roll up your sleeves and use them.

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Don’t expect to open your doors, sit back and wait for your till to magically start ringing. The franchisor is not solely responsible for your success, and you need to realise that. It’s a business partnership with different roles and responsibilities for each partner. Be clear about the franchisor’s obligations and your own. Both of you have a vested interest in your building the most successful business possible. Working with them produces the best results.

have family and friends behind you Even if you’re working hard and having fun, you’ll still need the support of your family and friends to help you keep up the effort involved in starting your own business. Your family needs to believe in what you are doing and be prepared to provide the support you need, whether by working in the business themselves or by taking on more responsibility at home. If they are not fully supportive of what you are doing, or not appreciative of the effort that is required by you to get the business off the ground, it will be detrimental to your success.

how high will you fly? Nobody said creating a successful business was easy – if it was, everyone would be doing it. But by buying a good franchise, you are giving yourself the best possible chance of success. You start with a known brand, proven products or services, well-developed systems, marketing and business support, a peer group of like-minded people to discuss issues and ideas with, and all sorts of other advantages. All franchisees start with these same tools in their toolbox, but some use them better than others. By identifying the factors that high achievers have in common, I hope I’ve helped you work out how you can join them. You’ve bought the franchise – now make it work for you and get the maximum return.

Franchise New Zealand

about the author One of New Zealand’s most experienced franchise managers, Glenice Riley has been a franchisee in two different franchise systems and worked alongside new franchisees and franchisors. She is now Managing Director of FAB NZ, which owns the Caci franchise.

Autumn 2016

Year 25 Issue 01

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opportunity: business & commercial

seeking star salespeople New roles offer exciting opportunities nationwide with Expense Reduction Analysts

Denis Stevens: ‘This is a win-win for all parties. Great sales people want to focus on what they’re good at... selling!’

I

f you’re an experienced senior sales person, and you want to earn what you’re worth rather than what someone is willing to pay you, then Denis Stevens wants to hear from you. Denis is managing director of Expense Reduction Analysts (ERA), a multiaward winning cost reduction franchise which is the biggest of its type in the world. ‘We help our clients improve profitability by reducing the costs of their overhead expenses,’ Denis explains. ‘Those savings go straight on the bottom line, making managers look good and keeping owners and shareholders happy. Since commencing operations in New Zealand in 1994, we’ve helped hundreds of clients achieve literally tens of millions of dollars in savings. ‘Right now, we’re seeking a number of experienced sales people nationwide to increase our sales and to support our franchised network of industry specialists. You might currently be a sales director, sales manager or simply an extraordinary sales person. As we’re dealing with senior managers, you’ll need to be comfortable dealing at the top level. You’ll be ambitious and dedicated, able to hunt out prospects, meet with them, explain our “no savings-no fee” USP and importantly, close the deals. ‘You’ll earn half of all the savings that you achieve for your clients over our 24-month contract period. With our current average savings of over 20 percent, you won’t need too many clients and projects to generate a handsome six-figure income. And you’ll do this from home, on your own terms, enabling you to spend more time with family – not to mention kissing goodbye to all those long commutes!’

satisfying and lucrative Denis has recently celebrated 20 years with ERA, having started as a franchisee himself back in 1996 and quickly built up a very lucrative consulting business. ‘Back in 1997-98, I was earning over $200k which is still very good today and was nothing short of extraordinary back then,’ says Denis. He purchased the master franchise in 1999 and has since spent his time improving processes, systems and building up an impressive specialist network. ‘I also keep my hand in with selling because I just love meeting with prospective clients, discussing their business needs and how we might be able to help them. There is nothing more satisfying than delivering significant savings to an initially sceptical client.’ The level of wastage in large companies means that the ‘no savings, no fee’ offer is rarely called upon. ‘Over the years, we’ve found that clients are simply too busy doing what they do and don’t have the time, expertise or industry benchmarks to know whether they’re paying market rates for their goods and services. We do, and our results show that 80 percent franchise.co.nz – PUTTING PEOPLE IN BUSINESS

Expense Reduction 35.indd 1

of companies are inadvertently overpaying – often by as much as 30-50 percent or more. Our client base reads like the Who’s Who of New Zealand business from the services, retail, manufacturing, import/export and distribution sectors.’ As an example, Denis mentions a client in the financial services industry. ‘They’d recently undertaken a review of their $1.3million telecommunications expenses and come up with nothing. Because of ERA’s ‘no savings-no fees’ mantra, they were happy to pass the project to us to see if our telco specialist could do any better. You can imagine their surprise and delight when, just 90 days later, we delivered them an impressive 44 percent saving – a saving that they thought just wasn’t there!’

do what you’re good at Currently, ERA has 14 franchisees in New Zealand including Greg Lim, who joined the franchise 18 years ago. ‘I had found the corporate world a bit stifling and I only spent two-three years in each job, so my longevity at ERA is testament to the stimulation and satisfaction I’ve had since I joined. To be successful in sales, you need empathy, persistence, discipline and must enjoy working with people. Selling anything requires confidence in the service, and ERA works so well that it is easy to demonstrate.’ With many franchisees like Greg so long-established in their businesses, Denis says it’s time to bring in some new blood on the sales side. ‘To help attract the right people, we’ve created a special “sales only” franchise for just $39,750 +gst, which is half of our normal entry level. Sales-only franchisees don’t do the analysis and delivery of projects themselves, working instead with the industry specialists in the network. Most great sales people hate doing any backroom or analytical work anyway, so I see this as a “winwin” for all parties,’ Denis smiles. advertiser info ‘After all, they want to focus on Expense Reduction what they’re good at…selling. ‘Age is not a concern as long as you have the necessary experience, drive and commitment. If this sounds like the opportunity you’ve been waiting for, and you have the sales skills we’ve been waiting for, then pick up the phone and call me for a no-obligation chat.’

Analysts PO Box 31 226, Lower Hutt, Wellington 5040 www.expensereduction.com Contact Denis Stevens P 0-4-566 6615 M 0274 487 089 dstevens@ expensereduction.com

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FOR LEASE ENQUIRE NOW!

Lynmore Junction

Final design to be confirmed

346-352 Te Ngae Road, Rotorua WANTED

CONVENIENCE / SERVICE / FOOD RETAILERS CAFE TENANT FOR ENTERTAINMENT CENTRE

Lynmore Junction

346-352 Te Ngae Road, Rotorua •

Brand new convenience retail development plus entertainment centre, ‘Motion Entertainment’

Motion Entertainment currently under construction as Stage 1 and scheduled to open in Spring 2016

Motion Entertainment, at over 6,000m2, will be New Zealand’s largest indoor all-weather entertainment centre

Lynmore Junction has fantastic profile and signage opportunities

Traffic lights controlled access to Lynmore Junction

Flexible tenancy size options available to suit (between 80m2 to 200m2 and 400m2 to 1800m2)

Excellent customer car parking

Te Ngae Road (State Highway 30) carries around 23,000 cars per day (Source: NZTA)

Motion Entertainment confirmed tenants: Strike Zone Ten Pin Bowling, Megazone Laser Tag, TimeZone Coin Cascade and Dialled Indoor Tramp Park

Seeking expressions of interest from convenience, service and food retailers

Seeking cafe tenant for Motion Entertainment

LEROY WOLLAND 021 537 697 leroy.wolland@colliers.com

colliers.co.nz/53402

Final design to be confirmed

Final design to be confirmed

CHLOE FRANKLIN-HALL 021 797 424 chloe.franklin-hall@colliers.com Licensed REAA 2008


opportunity: food & beverage

get your teeth INTO THIS Burger Wisconsin ramps up for growth with new owners, new franchisees and new ideas boosting a New Zealand favourite

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on Kharbanda has done business with plenty of restaurants and cafés, but when the time came to buy a business of his own, there was only one choice for him – Burger Wisconsin. The original gourmet burger brand has been a quiet achiever in the New Zealand hospitality scene since 1989 with 22 franchised outlets around the country, but it’s recently been revitalised following its purchase by Mariposa Restaurant Holdings, the group behind Mexicali Fresh. It was this new ownership – and the people behind it – that attracted Ron’s eye. In his late twenties, Ron has an impressive CV. He self-funded, launched and eventually sold a business putting advertising screens into restaurants, cafés and retail spaces before taking on a position as national sales manager with the Karajoz Coffee Company, one of Auckland’s longest-established coffee roasters. ‘I was in contact with so many cafés, restaurants and bars through these roles that I gained a real insight into the hospitality industry,’ says Ron. ‘Owners would talk to me about experiences good and bad, changing tastes and even about the people in the sector. Obviously the trend to fresh food and healthy eating was one of the things that came up often, along with the growth of fast casual dining – all areas in which Mexicali Fresh excels. When I was told Mariposa had bought Burger Wisconsin and Nathan Bonney (who had helped grow Columbus Coffee into a market leader) had joined them as general manager, I reckoned they must all see a big future in the gourmet burger market. ‘Conor Kerlin of Mariposa described gourmet burgers as a “hot, highgrowth category”, so when it came to getting serious about working for myself again, I contacted them.’

new look, more sales What Ron found was a company which now had the investment and expertise to capitalise on its reputation. Burger Wisconsin was using 100 percent pure beef, lamb, fish and chicken combined with fresh, local ingredients long before it was fashionable, but the outlets themselves were looking a little tired. That’s something you could never say of Mexicali

Ron Kharbanda’s new-look Burger Wisconsin in Auckland’s Remuera Road has proved a real hit franchise.co.nz – PUTTING PEOPLE IN BUSINESS

Burger Wisconsin 37.indd 1

Fresh, and the new owners promptly set about a refreshment programme. One of the first outlets to feature the smart new look is the Remuera Road restaurant in Auckland that Ron and his wife Nancy purchased in January this year. ‘A new franchisee, a new-look Burger Wisconsin – it was quite a change for the regular customers, but the response has been fantastic,’ says Ron. ‘I’d describe the style as simple in a modern sort of way with a mix of wood and white which makes us look bigger and brighter. Our seven work stations – prep, grill, assembly, sauces, sides, packaging and cashier – are now better laid out, bringing a noticeable improvement in delivery and service. In the past, only a few customers took advantage of our tables and seating but now at least 15% of our customers are eating in and enjoying the ambience and good vibes. All these changes have paid off and we’re seeing a real uplift in sales across the board, especially lunchtime trade.’

massive following Nathan Bonney says that one of the keys to success in refreshing the Burger Wisconsin brand has been not to mess about with the products themselves. ‘They are wonderful and have a massive following, which you can understand when you taste them,’ he says. ‘But what we can bring to the franchise is a fresh look, better systems, better support and more buying power. Add all those together and you make a big difference to franchisee profitability. ‘Ron’s Remuera restaurant and Brooklyn in Wellington are the first with the new look. Others are currently being refurbished while at the same time we are fitting out and opening new Burger Wisconsin sites in Auckland and around the country. What that means is real opportunities for people like Ron: people who don’t necessarily have a food service background but who have a business head, a genuine passion for Burger Wisconsin and the energy and ambition to succeed. ‘Our new look keeps the investment level down to around $180-250,000 depending on location and you can make a very fair return on that. New franchisees get thorough training that includes three weeks in a Burger Wisconsin restaurant working at every station so they really understand their business from the inside out, and there’s non-stop support from an experienced, dedicated franchisor team.’

very rewarding Ron adds, ‘Nathan’s not wrong about support, and it doesn’t just come from the franchise team, either. As franchisees, we even have our own private intranet which is a well-utilised advertiser info and engaging forum where you can discuss opportunities and ideas, share Burger Wisconsin experiences and ask for help when you PO Box 109 255, Newmarket need it. It’s actually fun! Auckland 1149 ‘I know it’s still early days for me and I’m putting in the long hours but it’s very rewarding, both financially and emotionally. Burger Wisconsin rocks, so if you want an opportunity you can get your teeth into, give Nathan a call.’

www.burgerwisconsin.co.nz Contact Nathan Bonney P 0-9-973 4559 M 021 758 299 nathan@mrhltd.com

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franchise management

CAUGHT IN THE ACT Simon Lord finds new safety legislation can be a bonus for franchisors and franchisees – if you do it right

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ranchisors and franchisees can’t afford to ignore a new piece of legislation that becomes law from April 4 2016. The Health and Safety at Work Act 2015 will change the way all businesses and organisations in New Zealand think and operate. The Act introduces more specific duties and regulations, key among which is the introduction of a new category of duty holder, called the Person Conducting a Business or Undertaking, or PCBU for short. This could be the franchisor, the franchisee, or even both – making it essential that franchises review their processes and manuals if they want to stay the right side of the law. We reviewed the implications last year (see www.franchise.co.nz/ article/2091) but now that it’s law, what does it mean? Franchisor Grant McLauchlan of CrestClean and Michelle Macdonald, managing director of health and safety specialists All About People, share some thoughts.

more responsibilities, more advantages? ‘At CrestClean, we’ve always been concerned about the well-being of our people,’ says Grant. ‘In the commercial cleaning industry, you are working in different premises all the time, each of which can have their own particular risks, and you are working with chemicals and equipment which have to be properly used. That’s why we have an internationally-recognised training programme for franchisees and staff which covers safe working practices. ‘The new legislation places more responsibility on people across all levels of any business to show how their safety system is deployed and communicated across the entire organisation. It is no longer acceptable to have your Health and Safety manual gathering dust. You will be asked by your customers for proof that your people know and understand their new responsibilities.’ Michelle Macdonald comments that enquiries like this from customers should be seen as a positive. ‘If you or your franchisees can demonstrate that you have actually got the necessary processes in place, then it can give you a competitive advantage. We have had clients win new business because of it.’

not just lip service Grant says that, just as businesses have had to address environmental concerns and sustainability issues in recent years, business leaders also need to embrace safety. ‘It’s not something you just pay lip service to – having a fully-deployed safety system actually makes business better for both our customers and our franchisees. ‘With over 500 franchisees, many of whom employ staff themselves, CrestClean is a large training organisation in itself. Fortunately, safety has always been part of our culture, which has made our preparation for compliance under the new safety legislation a stepping stone rather than

LOVE A GREAT DEAL? WANT AN EXCEPTIONAL RETURN? Then you should join the world’s largest second-hand dealer and market leader in short-term credit. Cash Converters has over 700 stores in 21 countries worldwide so you’ll be part of a proven system with multiple income streams. Across New Zealand there are 27 new-look stores, comprising 12 franchised stores and 15 company owned and operated stores in Auckland where we have tested, refined and proven the franchise system. If this sounds like a great deal and you would like to find out more please visit us online at cashconverters.co.nz or call Colin Mahoney on 09 281 7334.

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Franchise New Zealand

Autumn 2016

Year 25 Issue 01

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buying, selling, or setting up a franchise? a long jump. Crest has had to formalise and document our SafeClean® Health, Safety, Environmental Management System (HSEMS). SafeClean is an IT-based management process within our CRM system that tracks any incidents or accidents, immediately notifying the appropriate people within the organisation and setting out workflows that manage the investigation and resulting recommendations.

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‘SafeClean HSEMS ensures all activities are closed off and reported to our customers. It enables reporting to the directors and gives a bird’s-eye view of how safely we are operating. Health & Safety is an important agenda item at all board meetings and we are continually looking at how we can improve how we operate in this regard.’

franchises ideally placed to capitalise

Michelle says this is a sensible approach. ‘Anyone who has any power over the decision-making of a franchise group is a PCBU under the Act, as are their franchisees. It’s become a core business function – you can’t avoid it, so you just have to get on and do it. Sadly, there’s a lot of passive resistance and many organisations have done little to date, but franchises are actually ideally placed to capitalise. They already have the training systems and support in place to help their franchisees upskill, and better processes lead to increased productivity and effectiveness. It’s another advantage of being a franchisee rather than an independent. ‘Franchisees are also highly aware of the value of the brand they have invested in, so they won’t want to see that brand damaged by bad publicity about accidents or litigation.’

customers appreciate communication

So how has a company like Crest gone about implementing its Health and Safety systems? According to Grant, it’s all about training and communication. ‘Without training you cannot have a viable safety programme and culture,’ he says firmly. ‘It’s important to have a clear and transparent communication channel as safety, while directed from the top, is largely played out at the operational coal face. Having our operational team trained and upskilled in safety not only protects our people but gives our clients alternative eyes and ears into how their own business operates.

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‘Our franchisees and their staff are trained to look for any new site-specific hazards, to report near misses and any broken equipment. Most importantly, they are encouraged to come forward with any new ideas on how to improve the way we operate. This requires an inclusive business environment where people feel free to speak. ‘While I like to think we have always had a very good customer care programme, SafeClean has improved the number of customer touchpoints, which are now captured, documented and made available to all stakeholders. These include scheduled site audits, documented task observations, toolbox meetings and, of course, six-monthly franchise performance reviews, which are complemented with ongoing upskilling. All of these are recorded within SafeClean and are very good for maintaining customer relationships – feedback shows they appreciate the increased activity and transparency.’

payback time

‘While there has been a large and ongoing investment in developing SafeClean, it is proving to be exactly that – an “investment”. We are seeing strong enquiry from corporates, schools and government departments as they review their entire supply chain. They are all seeking contractor prequalification to ensure safety compliance and our recognised and auditable safety system is making CrestClean more attractive in the marketplace.’ Michelle Macdonald says that although CrestClean operates in a sector where health and safety have always been a recognised concern, the new Act applies to every business in every industry. ‘It doesn’t matter whether you’re talking about issues created by wet floors or boxes piled up in retail outlets or baristas suffering RSI from spending too long at the espresso machine without breaks, you have to about the author identify the issues and manage the risk. The Act means doing nothing is Simon Lord is Editor of Franchise not an option – so can you make life New Zealand and has worked in the franchise sector for over better for your people, your clients 30 years. and your business because of it?’ franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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franchise development

franchising in the

right order Franchising your business successfully takes logical planning, say Franchize Consultants

Franchising your business or improving an existing network?

Do it once, do it right.

T

here are many areas in life where proper planning, preparation and training make all the difference. Building a skyscraper, completing successful surgery or winning a Formula One race all involve logical planning and step-by-step actions to ensure the right outcome. According to Dr Callum Floyd, the managing director of Franchize Consultants, franchising is the same in that there is a clear path to performance for both franchisors and franchisees. Good planning leads to positive outcomes while reducing the challenges along the way. ‘For franchisees, carrying out comprehensive due diligence both of the franchise and their own resources is critical prior to signing any agreement. Completing the Franchise Association of New Zealand’s free Online Pre-Entry Programme and taking experienced legal and business advice should be mandatory for prospective franchisees, I believe, along with talking to existing franchisees. You can never be too prepared. ‘It’s the same for franchisors. Prior to franchising a business, there must be a dedicated planning, assessment and preparation stage. This is essential to help structure the franchise system properly, assess likely returns to the franchisor and franchisees, establish a proper franchising infrastructure and train the franchisor in how to be a successful franchisor. ‘Yet, sadly, some new franchisors and licensors elect to skip this planning phase,’ says Callum. ‘Even worse, some advisors are happy to let them, thereby increasing the chances that both the new franchisor and any unfortunate franchisees who invest in the franchise system will be sadly disappointed.’ He lists some typical problems that happen when vital stages are missed: • The company doesn’t know if the franchise royalty, other income streams and fees are structured appropriately, or are even sufficient for their particular circumstances. • The company has problems with roles and responsibilities: what do they do as a franchisor; what do they expect from their franchisees; what do their franchisees expect from them? • The company lacks a solid franchise manual, training systems and tools to help franchisors and franchisees understand and perform their roles – and protect the brand. • The company has a franchise agreement that is not optimal for their necessary growth strategy. • The company does not understand or deliver key franchisor management processes. ‘Franchising is an exciting concept and has great potential for many companies, but it needs to be approached correctly to maximise performance and minimise risk for all involved,’ Callum concludes. ‘At Franchize Consultants we understand how important that is. My own researches – published internationally – go back 20 years and Franchize Consultants has over 26 years’ experience in evaluating, developing and upskilling franchise systems. That’s why we encourage new franchisors to learn from the mistakes we’ve seen others make. If you’re going to franchise, do it once – and do it right.’

Brilliant Commercial Cleaners

advertiser info Franchize Consultants PO Box 9538, Newmarket, Auckland 1149 www.franchize.co.nz Contact Dr Callum Floyd P 0-9-523 3858 M 021 669 519 callum@franchize.co.nz

franchise.co.nz – PUTTING PEOPLE IN BUSINESS

Franchize Consultants 41.indd 1

Talk first with New Zealand’s longest established, largest and most award winning team. Work with a company engaged on major projects with many of the biggest and best emerging names in the franchise sector.

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

Six times winner service provider of the year

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Advertisement

Jitesh’s Four Square is outgrowing its four walls, with ASB. Ten years ago Jitesh Ravla and his wife Ila made a brave decision. They took over the lease of a failed local supermarket in Mangapapa, Gisborne. “It was very sobering. There were four bare walls and no customers, as they had started shopping elsewhere. We needed to build the business from scratch.” The Ravla’s poured huge amounts of energy into their business. They set up the new store to the highest standards. They reconnected with the community by helping at school fund raisers, sports clubs and other community events. They made their store attractive and open. The customers returned, and with a lot of hard work their business doubled its turnover in the first 18 months.

Jitesh and Ila Ravla, Mangapapa Four Square

Buying into the franchise meant another loan. Foodstuffs suggested they talk to ASB as well as their current bank, to make sure they worked out the best deal.

and expand it to include a bakery and butchery. Fresher products, better service for our customers and more profitability – and it looks like ASB will help us there, too.”

Better finances fuel ambition

Other benefits included ASB’s unique 7-Day Settlement. “Weekends and holidays are our busiest days. Our old bank deposited those sales into our account on Monday. Growth is a challenge Now we see them every night. ASB gave us a slightly “It was good to have strong turnover, but our cashflow gave us many sleepless nights. Then we were approached better rate on credit card sales too – it adds up with our high number of transactions.” by Foodstuffs with the offer of a Four Square franchise. And of course they’ve taken to ASB’s online banking. We could see the benefits would be huge. It would bring “It’s very secure and simple. I haven’t tried the mobile app in more customers, because the brand is so strong. It yet, but it’s next on my list.” would also give us access to reliable stock deliveries, on better terms – something we had struggled with as an With their finances under control, the Ravla’s can focus on independent.” their next ambition. “Our next step is to buy this building,

They took the time to understand our business and what we needed. “Moving to ASB a year ago has made a real difference. The ASB Franchise Specialist came to see us and showed us a better way to structure our business lending. They gave us a working capital facility to solve our cashflow issues, and consolidated our old loan with the new one. They knew Foodstuffs, and took the time to understand our business and what we needed.”

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opportunity: retail

FLOWER

power Palmers offers two levels of exciting franchise opportunity in a massive market

F

lower power lives! Not the hippie kind of 50 years ago, but the power of flowers and gardening to drive a thoroughly modern business opportunity. According to Statistics New Zealand, households spent about $440 million on plants, flowers, and gardening supplies in the year to June 2013, and a good proportion of that vast amount was spent at Palmers – a major player in the specialist garden category with steady growth in market share.

‘In addition to traditional garden centre products and services, Palmers works with franchisees to develop appropriate additional income streams. These can include areas such as indoor décor and giftware, furniture and spa pools and, of course, a café, all of which help to boost year-round income.’

Ever since Mr A. W. Palmer opened his first store in Auckland’s Glen Eden in 1958, Palmers has been synonymous with gardening. After a spell in corporate ownership, the company is now a family-style business again with many of the 16 Palmers and Palmers Planet franchises operated by husband-and-wife teams. Palmers itself is owned by United Franchise Systems, the group behind such iconic Kiwi brands as Sierra Cafés, Valentines Buffet Restaurants and Café Botannix.

palmers planet

There are two distinct Palmers franchise operations: Palmers ‘Outside Thinking’ stores and Palmers Planet. Both benefit from a highly sophisticated franchise support structure that works with the franchisees across all aspects of the operation, from marketing and visual merchandising through to buying and financial planning. General Manager Garry Stone says, ‘Behind the scenes, franchisees benefit from all sorts of business management expertise, as well as our business development programme Accumen. This is unique to Palmers and provides franchisees with a wide range of tools covering everything from long-term strategy development, stock investment and health & safety to diagnostic tools to measure and monitor performance. ‘Our marketing programme is conducted on a national level and utilises a multi-channel approach that an independent operator could simply not afford on their own, encompassing TV, radio, print, magazines, social media, website, loyalty programme and in-store activation. Franchisees also benefit from a full team of support staff who are professionals in retail operations, visual merchandising, category development and café management, covering every aspect of running their businesses.’

palmers Palmers is an ideal opportunity for an individual or couple with some business experience who enjoy gardening and can use their knowledge to generate a very good income. franchise.co.nz – PUTTING PEOPLE IN BUSINESS

Palmers 43.indd 1

At an investment of between $350-$800,000, has existing sites available in cities and provincial centres throughout the North Island.

Meanwhile, Palmers Planet has taken its lead from Europe, where garden centres have evolved by uprooting the traditional format and creating a year-round destination store. Each 3000-4000 sqm Palmers Planet outlet is a 21st century lifestyle precinct. The pilot store opened in Albany in 2012 and immediately won two top retail design awards in the New Zealand Retail Interior Association’s prestigious Red Awards, winning the Best Retail Design award in the Furniture, Lighting & Hardware category and the coveted Overall Best Retail Design in the wide-ranging and fiercely-contested Home Group category. ‘These awards recognise how Palmers Planet’s unique mix of lifestyle and garden products has created a true retail destination for the whole family to enjoy and keep coming back for time and time again,’ says Garry. ‘By including a licensed café with seasonal menu and dry delicatessen, gifts, books and magazines, a professional florist, children’s playground and free WiFi, Palmers Planet has made it easy for families to get almost everything they need for their home in one place.’ As Garry points out, Palmers Planet is a format not seen in New Zealand before: a big business that requires franchisees to have an extensive and successful business background. ‘This is a brilliant, highly rewarding opportunity calling for franchisees with access to capital over and above the 1 to 1.3 million dollars initial investment (plus stock). As a business leader with experience in running multi-operational departments, you will be able to recruit and lead a strong management team to ensure every department runs successfully. ‘With Palmers Planet firmly established in Albany and more recently at Westgate and Hamilton too, we’re fully committed to increasing the pace of the brand’s development and success. We want to hear from entrepreneurs in Auckland, Wellington and Christchurch who recognise the huge potential in Palmers Planet and are committed to taking the brand to the next generation and beyond.’

opportunities nationwide ‘So whether you’re a keen gardener with business know-how who wants to turn your passion into your income, or an experienced executive or entrepreneur who can see the big picture, don’t let the grass grow under your feet – contact Murray Belcher, our business development manager, today.’

advertiser info Palmers Franchise Systems PO Box 331 586, Takapuna, Auckland. www.palmers.co.nz Contact Murray Belcher P 0-9-451 9102 M 021 483 500 murray.belcher@ufsltd.co.nz

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buying a franchise

10 reasons why franchisees fail BUYING A FRANCHISE? SIGN WITH CONFIDENCE A franchise displaying our member logo signifies: Ÿ Credibility Ÿ Adherence to: Ÿ Code of Prac ce Ÿ Code of Ethics Ÿ 7 day cooling off period Ÿ Commi ed to best prac ce franchising Ÿ Simple dispute resolu on process

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Jason Gehrke has seen some franchisees achieve spectacular success, while others have lost it all. What makes the difference?

A

lthough there is no such thing as a sure bet in business, franchising should help reduce the risks of small business by providing a supported environment utilising both the resources of the franchisor and the community of franchisees operating under the same brand. Choose the right franchise, operate it well, re-invest when required and follow good advice and the results can be very good indeed. Get any of these wrong and the outcome can be less happy. Of course, franchisees don’t invest in businesses to lose money but, by the same token, they don’t always do enough to mitigate their risks either. If their business fails, the obvious target for the franchisee to blame is the franchisor. On occasion, this is justified; however, franchisees are often the architects of their own misfortune for a variety of reasons that they can’t or won’t acknowledge in time to save the business.

Having been involved in franchising for over 25 years, here’s my top 10 list of causes of franchisee failure. These can occur in any order, depending on the business.

franchisor causes Franchisors aren’t perfect. They do get things wrong sometimes, and experienced franchisors are quick to admit it and make the necessary changes to put things right. But sometimes things go so badly wrong that the franchisees really suffer. What should an intending franchise buyer look out for?

1 bad business model The franchisor’s business model might be the first thing that franchisees would like to blame for their failure, but this is not always the case. Underdeveloped business models are most likely to be found in new, start-up networks, and this should be factored into a potential franchisee’s assessment of the risks of joining. The risk may be mitigated if the franchisor has used an experienced and reputable franchise consultant, although much depends on how the franchisor actually applies their work. While the business model risk may be greatest for a new franchisor, it can also re-emerge as a potential cause of failure in mature networks unable to match the pace of change set by nimble competitors, or which have otherwise failed to evolve with their market.

2 inadequate training & support Failure caused by poor training or subsequent levels of support is also more likely to occur in newer, start-up systems compared to mature brands. Training and support is typically limited to operational matters in new franchises, with little or no general business training provided. Franchisees can better protect themselves from training and support problems by determining in advance the nature, content, frequency and assessment of training and support provided by the franchisor (see page 52). If it doesn’t seem adequate, either ask for more, look for additional training outside the franchise (eg. in bookkeeping or business management) or look for another franchise system altogether.

3 insolvency When franchisors go broke, often their franchisees will be unable to survive because functions such as marketing, supply chain logistics, IT and other core activities that hold the network together may be wound back or cease altogether. Again, the greatest risk of franchisor failure is among newer,

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Franchise New Zealand

Autumn 2016

Year 25 Issue 01

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Even if the business is profitable, it can still fail if its customers have not paid on time and it runs out of money to pay its own bills when they fall due. Understanding the difference between cash flow and profit can mean the difference between surviving and failing. Likewise with reinvesting in the business – a failure to do so progressively could eventually result in massive reinvestment works that can send a franchisee broke.

7 unrealistic expectations The best way to test whether or not a franchisee has unrealistic expectations about the future of their business is to examine their business plan. This will provide an essential insight into their financial expectations (and when they expect to achieve them), but there may be other unrealistic expectations based around training, support and the flexibility of the business model, among other things. The problem with assessing expectations in advance is that they are rarely articulated to the franchisor until after the expectations have failed to be met. Franchisees can help protect themselves against themselves by consulting a franchise-experienced accountant from the start – and going on using them.

8 other distractions

start-up franchisors, but even mature brands can fail on occasion, such as Kleins in 2008. In New Zealand, many big brand franchises operate under master franchise agreements, and franchisees can similarly be affected if the local master franchisee fails, as happened with Nando’s in 2013. In that case, as often happens, the overseas franchisor took back the New Zealand master franchise and continued to support the franchisees here; however, this is not always possible.

franchisee causes Franchisees aren’t perfect either: in fact, they are more likely to be the cause of their own failure than the franchisors. Different challenges arise during the start-up, growth and mature stages of any business, and franchisees need to understand the dangers that each phase brings.

4 wrong fit A potential franchisee may experience a franchise from a customer’s point of view and decide that they would like to run a similar business themselves because they love the products or services so much. Unfortunately, there is a big difference between loving the products or services, and managing the challenge of running a business that sells them.

Where this occurs, franchisees effectively steal from themselves by taking valuable capital and human resources from one business to support another. When the left hand robs the right hand, both hands risk losing the lot.

9 complacency, or failure to evolve The market in which any franchisee’s business operates is constantly changing. If a franchisee doesn’t change with that market, they will ultimately become irrelevant. Fortunately for franchisees, they are not alone on this journey of constant change as the franchisor must also evolve to keep up with the market. This should be one of the primary advantages of being part of a franchise system. However, if the franchisee is too complacent about their business or too lazy to adapt to change, their business will inevitably suffer.

10 failure to follow the system Despite investing in a franchise with a prescribed and proven way of doing things, some franchisees think they can do it better. Instead of following the systems as used by other franchisees, they try to do their own thing, cut corners or go off at tangents.

Sometimes, no matter how passionate franchisees may be about the product, the brand or the industry, they are just not suited to the business. They may not be dynamic enough to evolve with the business over time, or may be incapable of managing or retaining staff, or there may be a whole bunch of other reasons why they are simply the wrong fit. Good recruitment and assessment procedures by the franchisor should reduce the risk of being a poor fit, but ultimately it’s not until the franchisee is facing the ongoing challenges of managing their business that their true nature is revealed.

Good franchisors are the first to admit that franchisees can come up with excellent ideas to improve a whole system, but if the ideas are completely at odds with the brand offer and values then the franchisee may as well have bought an independent small business instead.

5 insufficient planning

This is not an exhaustive list of reasons why franchisees fail, nor are these reasons independent of each other. Sometimes, if a franchisee’s business collapses, it’s easy to identify two or more of the above which combined with deadly results.

A failure to plan is a plan to fail. Despite the obvious wisdom of this saying, many franchisees still fail to prepare a business plan before commencing their franchise (on the flip side, many franchisors fail to insist on one either). A business plan should be a road map that shows the way to achieve profits by setting certain milestones. The franchisor should be involved in the planning process and should analyse and constantly monitor business plans submitted by franchisees to ensure that the franchisee operates their business according to the plan. stockphoto.com/BarbraFord

Sometimes the cause of business failure is not related to the franchise at all, but to something else altogether. If a franchisee is comfortable with the performance of their business, they may look elsewhere for a challenge and find another business or interest to keep them occupied. Often, this will take too much of the franchisee’s time (and their money) away from the franchised business to suit the new venture.

6 insufficient working capital & reinvestment A lack of working capital and a lack of reinvestment are among the most common causes of all business failure – not just in franchising. Franchisees who start operating businesses without adequate working capital will be unable to pay their bills when they fall due if the amount of cash coming into the business is not greater than the amount of cash going out. franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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Not only do franchisees who fail to follow the system risk censure and even termination by their franchisor, but they often sabotage their own business in doing so, causing sales and profits to decline.

it’s up to you

So now that you’ve read my top 10 reasons for a franchisee’s business to fail, what are you going to do differently to make sure that none about the author of these happen to you? If you’re buying a franchise, a good place to Jason Gehrke is a director of the Franchise Advisory Centre and start is with the list of 250 questions has been involved in franchising to ask a franchisor on page 52. If for 25 years at franchisee, you already own one, read Glenice franchisor and advisor level. Riley’s article on page 32. And He provides consulting services to both franchisors whatever you’re doing, always bear and franchisees, and conducts this top 10 list in mind. Because you franchise education programmes don’t buy a franchise to fail – you throughout Australia. buy one to succeed.

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opportunity: home & building

Jim’s Tree & Stump Removal has customers queuing up around Auckland and beyond

growing beyond all bounds

A

head for heights and arborist qualifications would seem prerequisites for a Jim’s Tree & Stump Removal franchisee. ‘Not so,’ says Auckland region franchisor Brendon Jones. ‘I welcome interest from arborists, but if you want to build a successful business then it’s equally valuable to have worked at a corporate management level, have a logistics background or have project management experience.’ Brendon speaks from experience. After working ridiculously long hours in IT management, a change in family circumstances and a love of the outdoors brought him to Jim’s Trees in 2014 and he hasn’t looked back since. ‘Aside from administration, my primary role is prospecting for business, quoting, customer relations and scheduling my on-staff three man crew,’ he explains. ‘Although my main guy is an experienced arborist, we have so much work I’m forever calling on the wealth of contract arborists in my region. We need more franchisees to develop their own crews and take the Jim’s service throughout the whole Auckland region.’ Brendon currently has 13 new ten-thousand-home territories available with customers queuing up from Pukekohe north. Territory rights are just $12,500 +gst, which includes full business and systems training at the Australian headquarters of Jim’s Group. No matter how large your business grows, there’s a flat monthly fee and an ongoing advertising contribution, and full assistance from Brendon and the Jim’s support team. The franchisee also purchases or leases their own vehicle and an equipment package including chainsaws, wood chipper and stump grinder.

Jim’s Mowing guys in our area can’t work above single-storey gutter height by contract, they pass a lot of work on to us and we do the same for them.’ While Brendon is urgently seeking franchisees for the ever-growing Auckland region, there are also Jim’s Tree & Stump Removal franchise opportunities throughout the rest of the country. Hawkes Bay couple Wayne and Kelly Gear are regional franchisors for Pukekohe South to the Cook Strait, and Christchurch-based Tony Wylie has the trees and stumps of the advertiser info South Island in his sights. ‘This is a fantastic opportunity for anyone with the skills to manage a professional service business in a growing market,’ Brendon says. ‘We’ll provide the systems, the training and the brand – you get out there and make it happen for you. Give me a call and let’s talk about your future with Jim’s Trees.’

Jim’s Trees & Stump Removal www.jimstrees.co.nz Contact Brendon Jones P 0800 248 733 M 021 818 926 brendon@jimstrees.co.nz

pay-to-work guarantee With over 3500 franchisees in Australia alone, Jim’s is the world’s largest home services franchise. It has 44 services from bookkeeping to pest control, and Jim’s Tree & Stump Removal was one of the first divisions created after Jim’s Mowing, the one that started it all. ‘That means every new Jim’s franchisee benefits from a huge amount of experience in establishing and managing businesses,’ says Brendon. As part of this, there’s a proven “Payto-Work” guarantee’ which sees new franchisees paid up to $1500 per week for 8 weeks for the time put into customer prospecting. ‘I’m more than happy to pay for the time a franchisee spends with a property manager, or doing a job free for a worthwhile customer in return for their referral letter, because we know how those things build business. Millions of dollars-worth of marketing have gone into our famous logo of the man with the beard and the floppy hat, so just getting your sign-written truck outside a job will get enquiries coming in. It means the guarantee isn’t a hand-out – it’s a payment for actively making business happen.’

tailor-made businesses As a regional franchisor, Brendon has the flexibility to tailor-make business models that can allow a franchisee to, for example, set up purely as a stump grinder and develop from there. ‘That’s the beauty of Jim’s Tree & Stump Removal,’ says Brendon. ‘There are so many income generation opportunities, many of them recurring: tree removals, tree pruning, hedge trimming, stump grinding, chipping services and palm tree cleaning. And because the 55 franchise.co.nz – PUTTING PEOPLE IN BUSINESS

Jims Trees 49.indd 1

A SPECIAL OPPORTUNITY For a short time we will offer some lucky people the chance to become a part of the nationally recognised Jim’s brand

only

$12,500* plus GST

As a Jim's Tree and Stump Removal franchisee you can receive referrals from over 260 Jim’s Mowing franchisees. This enables you to provide *You’ll also need to Jim’s quality customer service, whilst profiting from: • • • •

purchase, hire or lease

Quality training, both initial and ongoing a suitable truck, chipper, grinder and a range of gear Highly developed business operating procedures Reduced rates: insurance; leases; financing and supplies A comprehensive manual

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

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

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Are you seeing this opportunity as clearly as you should?

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buying a franchise: financial matters

You don’t know what you don’t know – so find out before you buy a franchise, says Philip Morrison of Franchise Accountants

Philip Morrison of Franchise Accountants accepting the award for Service Provider of the Year 2015-2016

why wouldn’t you use us? P

hilip Morrison is both sad and angry. He’s sad because he’s just come from seeing a franchisee who has run into financial trouble. He’s angry because it could so easily have been avoided. ‘He said, “If only I’d talked to you first.” Those are words I hate to hear,’ says Philip. ‘In this case, the franchise was a realistic business proposition that has worked for many people. But, for a few key reasons, it was never going to work for this particular person’s financial circumstances. If they had been told that at the beginning, they could have saved themselves tens of thousands of dollars and a lot of heartache. So why didn’t their accountant tell them? Well, they sought advice from a local accountant who didn’t really understand the ins and outs of franchising. The accountant didn’t know what they didn’t know, so their advice was lacking. Sadly, it’s not the first time I’ve come across this scenario. It’s important to use an accountant who understands your business – would you use a GP to perform neurosurgery?’

pay no more Philip is the founder and managing director of Franchise Accountants, an award-winning firm that specialises in providing financial advice to franchise buyers, franchisees and new and existing franchisors throughout the country. The company has worked with and evaluated hundreds of franchises, from new start-ups to the best-known brands in New Zealand. ‘You pay no more for our service, but you’ll receive a lot more useable advice because we understand franchising,’ Philip explains. ‘We are 100 percent franchise-focused and 97 percent of our clients are franchisees or franchisors. We know what are the norms for each type of business and industry, whether it be commercial cleaning, home services, retail, café, business-to-business or man-and-a-van operations. We know what makes one franchise perform better than another; what finances you need to succeed and how to get them; what are the pitfalls – all the things you absolutely must know before you buy into any franchise. Even if it’s a brand-new franchise we haven’t worked with before, we’ll have the specialist knowledge you need to maximise profits and minimise risk.’

personal service Buying a business, especially your first, can be a scary time, ‘Which is why we treat everyone as if we were advising a member of our own families,’ says Philip. ‘You’re not just a name on a client list: we really want to help you find the right business and make a success of it on an ongoing basis. For example, we provide insights into: • What key numbers must every franchisee know before buying a franchise? • Do the numbers work for this particular business? • What are the key drivers of this business? • What looks right and what looks wrong? franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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• What is realistic and what is not? • Are you paying too much? • Is the royalty rate so high that you can’t make a reasonable return? • Is the royalty rate so low that the franchisor won’t care about you? • How does this business compare to similar franchises? • What would be a realistic income for this type of franchise to earn? • What will you get for this business when you sell it? • Plus seven killer questions you must ask before you sign.

specialist franchise buyer service - nationwide Franchise Accountants’ start-to-finish franchise buyer service has been perfected over a number of years from working with franchise business owners, listening to feedback and continually improving systems. This was recognised last year when Franchise Accountants was named Service Provider of the Year in the 2015/2016 Westpac New Zealand Franchise Awards. The judges said that, ‘The identification of client requirements, service delivery and engagement is a significant strength of Franchise Accountants.’ ‘That same service is available whether you are in Auckland, Dunedin, Christchurch, Wellington or anywhere else in New Zealand,’ promises Philip. ‘Because we use cloud-based accounting, we see what you see. That means we can not only give you the right advice upfront, but also provide outstanding value service plans for your ongoing tax accounting.’ And it’s not just about accounting, either – the company also offers a range of advisory services to help clients grow their franchise businesses, and has worked with a number of franchisees who have won national awards in their own right. With all these benefits to offer, Philip has just one question to ask anyone buying or running a franchise: ‘Why wouldn’t you use us? We offer specialist knowledge and advice that can reduce risk, increase profits and save tax. It costs no more to use the franchise specialists than a local accountant. And it could advertiser info save you making a horrible Franchise Accountants mistake. I never want to hear www.franchiseaccountants.co.nz someone say, “If only I’d talked to you first” again – so don’t let Contact Philip Morrison me hear it from you. Whatever P 0800 555 80 20 franchise you’re looking at, M 021 22 99 657 large or small, contact us now pmorrison@ and go into business with real franchiseaccountants.co.nz peace of mind.’

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f you are looking at buying a business, it is vital to ensure that it is right for you and your own particular needs. Never, ever buy a business assuming ‘She’ll be right’ just because you have seen the name around or because other people have already bought in. What you want to find is a franchise that suits your own abilities, ambitions and lifestyle. When you buy a franchise, you will be relying upon the value of the brand and the quality of the franchise system, product or service to achieve these goals. A lot therefore depends upon the fit between you and the business, and the quality of training and support you will receive. Several years ago, we at Franchise New Zealand magazine & website set out to develop an exhaustive list of questions to help potential buyers evaluate both the franchise opportunity and the franchisor him or her self. The list has been updated annually ever since; established franchisors know it well and welcome enquiries from those who have used it to determine the information they need to know before they make their decision.

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

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• Financial/costs • Marketing • Selection & training • Support • Operations • Communications

business experience One of the most important things that a new franchisee buys is the experience of the franchisor. Every successful franchisor will admit that they made many mistakes in the early days, and it is the wisdom and experience they gained through these that they are able to pass on. The new franchisee pays to learn from someone else’s mistakes. It is therefore vital that the franchisor has experience of running the sort

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Autumn 2016

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SOMETHING TASTY!

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

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250 QUESTIONS

to ask about a franchise What do you need to know before you buy a franchise? Here’s a comprehensive list of over 250 vital questions that will help you make the right decision of business that he or she is now offering as a franchise. They may already have successful franchised operations up and running; if not, they should ideally have had a pilot operation running for at least twelve months. This applies equally to locally-developed systems and to franchises brought in from overseas. What works in Australia or the US does not necessarily work here without some adjustment. Look at the background of the franchisor company – and the people involved – too. Here are some of the questions to ask: How many years of experience do you have in this industry? In this business? What is the previous relevant experience of the key people? How many franchised businesses do you have at the moment? How many company-owned outlets do you run? Did you run your own pilot operation in New Zealand before franchising? If not, why not? In the case of a new franchise, how long have you been running the pilot operation, and how successful is it? Can I see the figures? Do you intend to keep running a company-owned business as well as franchising? How many outlets? What guarantee is there that they will not compete with franchised outlets? What is the extent of your own cash involvement in the business? Has any franchised business of yours ever failed? Beware “hidden failures”. They may not count an ailing franchise that was sold just prior to going into liquidation, or was bought back by the franchisor and resold. What mistakes have you made and learned from? Are you a member of the Franchise Association of New Zealand? If not, there is no requirement that the franchisor must provide a disclosure document, offer a seven-day ‘cooling-off’ period or include mediation provisions in the franchise agreement. Many franchise systems are not FANZ members but good franchisors will often have similar arrangements.

research

istockphoto.com/NiroDesign

Although the franchisor should provide you with information about the company and the industry in which it operates, it is important that you check the quality of this information out for yourself. Use the internet (our article Researching Your Franchisor at www.franchise.co.nz suggests some useful tips on how to do this) and ask the franchisor:

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

financial/costs Buying a franchise involves various different costs: initial and ongoing fees, training fees, stock, shop-fitting or vehicles, and so on. If the franchisor provides a good disclosure document, all of these will be documented clearly to avoid any potential confusion or embarrassment at a later stage. However, it is a good idea to ensure you have all the following clearly laid down in writing. Ask the franchisor: What are the total costs? Are they paid all in one go, or in stages? What is the timing? What do the costs include? What capital costs will be incurred in addition to this price, and what for? How much working capital (ie, cash to run the business, cover wages and other overheads) do I need? Starting a business with insufficient capital can be fatal. Do you provide projections for my proposed business? What are these based on? For legal reasons, many franchisors will not produce specific projections but will provide actual figures for existing operations. May I see actual accounts which confirm (or otherwise) your projections? How relevant are these to my proposed territory or site? What makes you say that?

What do you see as the future of the industry you are in? Where does this company stand in its industry? What do you do to keep up with developments?

Do you recommend that franchisees register for GST?

Is there a viable market for the franchise’s product/service? Is there still room for growth? What is its market positioning, eg. price, image, quality? How do you maintain margins? How dependent is the business on price competitiveness? How good is the competition? These questions apply in all industries, from retail to lawnmowing.

Is there any form of guarantee? How much? Does it vary with the amount I invest? How long does it apply for? When will it be paid? What are the conditions? Have you ever paid out on this guarantee? (see page 68)

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Do these figures take my salary/drawings and depreciation into account?

What assistance do you provide in obtaining finance?

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buying a franchise: choosing wisely

Want to know how to finance your franchise purchase? Looking to expand? Eightfold Financial Services can help. • We are franchise experts. • We know how banks work. • We offer free and friendly advice on the best way to finance your business.

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Have you already made special arrangements with any banks? Please outline what these are. What level of cash and/or equity will I need to qualify for finance? Do I buy or lease the necessary equipment? What are the options? If I buy, will I own all the equipment needed to run the business when I have cleared off the borrowing from the finance company? How do you, the franchisor, make your money? This may affect the way the franchisor takes care of franchisees – for example, a franchisor who makes his income from selling franchises is unlikely to be able to offer much in the way of ongoing support. What royalty is charged, and how is it calculated? Do I have to buy all or just scheduled items from the franchisor? Are there any other fees? What levels of support or assistance do I get for the royalty? It is important here to assess value for money, not just percentage figures. How open are financial details within the franchise? For example, does the franchisor declare the level of any mark-ups or commissions/rebates paid by suppliers? Are the sales figures or financial results of other franchisees shared for purposes of comparison? What are the profitability and cash flow projections for my market and others? Look at sales, cost of sales, overheads. Once you have the answers to the above, you should sit down with your financial advisor (see a list of franchise-experienced accountants on page 87) and, based on conservative assumptions in financial projections, ask yourself: What level of income can I make? How much can I take from the business, and when? Does this meet my needs or aspirations?

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

LOVE YOUR LAND 54 EDIT 250 Questions.indd 3

legal The franchise agreement is the basis not only of the purchase of the franchise, but also of the ongoing relationship that must exist between Franchise New Zealand

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franchisor and franchisee. Because of this, it is not the same as a straight sale and purchase agreement and must be examined by a lawyer with franchising experience. A good franchising lawyer will know what is reasonable and what isn’t (see Directory page 88). The following questions are provided for guidance in the early stages, but do not replace a proper legal examination of the agreement. Ask the franchisor: How soon in my investigation of the franchise can I take away a franchise agreement for a legal opinion? Is the agreement negotiable? The usual answer to this is ‘no’, although some specific variation may be reasonable especially if it is a fairly new franchise. Is there a disclosure document that meets the requirements of the FANZ Code of Practice? Do I get this at least 14 days prior to signing the franchise agreement? Do you have minimum performance levels, or a minimum fee, or a minimum purchase level for goods? How achievable are they? What happens if I don’t meet them? Have franchisees ever failed to meet them? What happened? How secure is the franchise tenure? How is my compliance with the franchise system measured? What happens if I don’t comply? How long do I have to remedy any problems? What is the term (length) of the franchise agreement? What happens at the end? Do I have the automatic right of renewal? If not, what is the position? What if I want to sell my business? What is the procedure? Do I have to sell it back to you, or can I sell it externally? What approval do you need to give to a new owner? What restrictions are there affecting my right to sell the business? Do you help me to find a new owner? Do you charge any fee? Does a new owner get a new full term on the franchise agreement, or take over my existing one? Who would train any new owner? If the franchisor, is there a fee? What insurances am I required to have? Do you have an arrangement with a broker or company offering special rates? If premises are required, are they bought or leased? Do you take the head lease and sublet to me, or do I lease direct? Please clarify the arrangements for this. How does the length of the lease compare with the term of the franchise agreement? What happens if my lease is not renewed? What would happen if you misjudged the site? How can I be sure you will do what you promise? What will happen if I don’t like the business? On what basis can I terminate the agreement? On what basis can the franchisor terminate the agreement? Most franchise agreements will have a number of standard and sometimes frightening-looking clauses – see page 75. Take advice to determine whether these are reasonable or not.

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

pays for transport, accommodation and meals during training? Who conducts it and how well-equipped are they to do so? What does it cover and in what depth? What is the balance of theoretical and practical training? Is there any practical experience in company outlets or with existing franchisees? Has anyone ever failed training? Would you stop the training at this stage if you felt I was not suitable after all? Would any money I had paid be refunded? What proportion? Do you provide on-going training in the form of courses, workshops, conferences, seminars, regional meetings, refresher or follow-on/ advanced courses? Who pays? Do you provide training for any staff I employ? Who pays?

support

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

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

On what basis do you choose your franchisees? How selective are you?

Is the business seasonal? When is the best time to start trading? Are there other income streams available out of season?

What are the most important attributes of a successful franchisee, and do they match mine?

What are the most important keys to success in the business? What are the most common pitfalls?

How well am I likely to fit with the organisation in terms of personal standards, aspirations and values? Assess this for yourself by looking at the company culture. This is very important – if you don’t fit, look for another franchise with a different culture.

Do I need to employ staff or do all the work myself? What type of people, at what cost? Are the right kind of people readily available in my area?

How long does the initial training last? Where does it take place? Who franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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Will the business support a family, or will my partner also need to work outside the business? Is there the potential for my partner to work in the business, too? Is it preferable to be on my own or to have someone else

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buying a franchise: choosing wisely

with me? Research shows that having the support and understanding of your family is a key factor in franchisee success.

Is there a formal system for franchisees to make suggestions? Test new ideas?

How do I run the business, and where from? What premises and equipment do I need? (eg, a full retail shop-fit or a home office, mobile workshop, vehicle and computer).

What are relationships like between the franchisees? Between franchisor and franchisees?

Can I spend some time with an existing franchisee or in a company outlet to see if I like it? How long? At what stage in the buying process? What can I sell and not sell? Do you provide operational manuals and instructions? Are these regularly updated? Are they online? How will I do my bookkeeping and meet the legal requirements of running a business? Is any administration or bookkeeping included? How soon will I be required to spend money on redecorating the premises or replacing equipment? Do franchisees use a standard computerised accounting package? Is there any custom-designed software? What does it cover: quoting, ordering, invoicing, reporting? Is it integrated with other systems, eg. tills or stock control? Is it cloud-based so I can access it via the internet when away from the business? How often is it upgraded?

communications For a franchise to be responsive to customer needs, successful and, above all, a ‘happy family’, there must be constant two-way communication between franchisor and franchisee. Ask the franchisor: What systems do you have for keeping franchisees in touch with you and each other? Eg, mailings, e-mail, intranet, telephone support, personal visits, newsletters, seminars, regional meetings, conferences. How regular are these?

Do you have a Franchise Advisory Council and how does it work? How are disputes resolved? Is there an alternative disputes resolution procedure? Has it ever been used? What was the outcome?

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

and questions in Traditional Chinese, Simplified Chinese, Korean and Hindi. Just go to www.franchise.co.nz Search: Advice for New Residents

FRANCHISE FOR SALE! Help us build Hamilton!

Versatile Homes and Buildings Hamilton provides you with all the benefits of owning your own business, with the full support and resources of a nationwide organisation. Versatile have built their remarkable reputation by providing New Zealanders with great homes, garages, farm buildings, sleepouts and carports for nearly 40 years. We are looking for a high calibre franchise owner to capitalise on the opportunities in the Hamilton area, and who is capable of growing with us as the business expands. If you have experience in the building industry, or have managed a small to medium sized business, please get in touch.

For more information on the application process please contact Digby on 027 838 7160 or at digby.seales@versatile.co.nz Alternatively visit our website at www.versatile.co.nz/about-us/franchise-opportunities 56 EDIT 250 Questions.indd 5

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opportunity: health & beauty

arresting

GOOD LOOKS

Former police officer finds a new life and a new business with Caci

Donna Rider

A

s much as Donna Rider loved her police career, a medical issue brought her work/lifestyle balance into sharp focus. ‘It was a wake-up call to break out and do something more gentle on the body,’ she says. ‘But I still wanted to help people and make a difference to their lives.’ So, after 22 years, Senior Sergeant Donna became a rookie self-employed businesswoman in the beauty business. In October 2015, she and husband Steve opened the doors of Caci Kapiti at the Coastlands Shoppingtown in Paraparaumu. With over 35 clinics nationwide, Caci remain at the forefront of the skincare and appearance industry, delivering real results within a trusted and accessible environment. Caci’s core purpose is to give women the confidence to look and feel their best with results-based treatments including laser hair removal, skin rejuvenation, appearance medicine, body shaping and traditional beauty therapy treatments.

the caring hands of caci ‘My career had involved long hours and not getting enough sleep, so I was used to putting myself in the caring hands of Caci to deal with the ravages of police work,’ says Donna with a chuckle. ‘That meant that when I started thinking about a franchise, Caci was an obvious choice.’ Donna says that as a child she had always wanted to be a ballet dancer with the glamour, the hair and the makeup being part of the appeal. ‘With a mother who was a part-time model, I had always been encouraged to look after my skin, but when an injury put paid to ballet I followed my older brother into the New Zealand police force. I don’t regret that decision for a moment. ‘My police career gave me plenty of management, decision-making and leadership experience. Steve is also a former police officer and has business know-how as a builder and dog trainer. The moment we decided to investigate a Caci franchise in May last year, we took all the steps anyone considering a franchise should. We found the right business advisors, we involved an experienced franchise accountant and we talked to Caci franchisees. We also researched the market, examining Kapiti Council growth projections and suggesting to the franchisor that a Kapiti presence would nicely fill in the gap between Caci Palmerston North and Caci Johnsonville. ‘From there on, everything was very serendipitous. Right from the start, we enjoyed instant rapport with the Caci team, and that was a deciding factor in joining the franchise. Caci agreed The team at Caci Kapiti to Kapiti, we found a house in Paraparaumu, and we secured our ideal premises at Coastlands.’

strong values and ethics ‘Even as a client I thought there were similarities between Caci and the police force: strong values and ethics, professionalism franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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and the genuine desire to help people and make a real difference,’ Donna says. ‘As a franchisee going through the very thorough training, I discovered just how true that was. ‘Many clients come to Caci with very personal concerns and what my wonderful staff can achieve with Caci’s treatments and technology is quite remarkable. It’s not just physical, it’s emotional, too: there’s nothing more rewarding than seeing clients receive great results and go out the door much more relaxed, confident and happy.’ Donna was already well aware of Caci’s treatment packages and easy payment options. ‘Although many of my clients can afford to pay upfront they prefer the easy payment, no-interest option. I was the same as I felt it encouraged me to keep coming back on a regular basis, almost like a gym membership. Regular facials were my best form of relaxation!’

performing above expectations Donna and Steve’s new business is already performing well above their expectations, having achieved its targets for the first three months after just two. They attribute their success to date to making the most of Caci’s systems, training and support services – including recruitment. With the assistance of Caci regional franchise manager Tanya Deichert, Donna employed long-time registered nurse Charleen Toes, experienced beauty therapist Adrienne Smith and treatment coordinator Helen Tangira to ensure that clients receive the level of service they expect. ‘Me? I’m the general dogsbody and Steve is the fix-it man,’ laughs Donna. By running pop-up promotions in Coastlands Shoppingtown, Donna ensured that Caci Kapiti had the first two weeks solidly booked even before it opened, and now she’s heavily involved in networking organisations like BNI and Venus, a women’s business network. ‘We’re also getting involved with a hospice. It’s all about helping people.’ Existing and new Caci franchise opportunities are available throughout the country. The investment starts from $250,000 depending on area and, as Donna has proved, beauty industry experience is not necessary. ‘My advice would be that if you can manage and lead a team, are committed to the brand and the service, and like going out and meeting people, Caci is a great opportunity,’ Donna says. ‘If you have a genuine desire to make a difference to people’s lives, give them a call.’

advertiser info Caci PO Box 41 395, St Lukes, Auckland 1346 www.caci.co.nz Contact Fleur Evans Franchise Development Manager P 0-9-847 9220 M 021 369 615 franchisesales@fabgroup.co.nz

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Xpresso Delights 2, 3 or 4 day a week business offers genuine semi-passive income. How? Let our premium fully automatic coffee machines do the work for you, they make the coffees while you earn the income. Plus you get to choose the days and hours you would like to work.

FCA Magazine NZ.indd 1

At Xpresso Delight, we are in the corporate workplace coffee market. We offer a business opportunity like no other, operating within a market that loves and accepts our unique product and service. Plus you benefit from over 12 years experience with our proven systems, training and support.

Xpresso Delight provides a cafe quality experience right inside the workplace. Our client Locations enjoy all their favourite coffees and even hot chocolate all at the press of a button. Plus they enjoy our 5 Star Concierge Coffee Service that only Xpresso Delight can deliver.

7/02/16 5:50 PM


opportunity: home & building

ENHANCING FLOORS

enhancing futures

Before

The potential for Mr. Sandless® and Dr. DecknFence® may floor you

E

nhance is a word I use every day. It’s what I do: enhance hard surface floors.’ That’s how long-time Mr. Sandless franchisee Luke Anastasio describes his business, and Lianne Walker says he couldn’t have put it better.

‘There are few hard floor surfaces that we can’t refinish and enhance, and what house or business doesn’t have a hard floor surface?’ asks Lianne who, along with her husband Barry is the New Zealand master franchisee for Mr. Sandless. ‘We can bring out the colour and texture of hard floor surfaces such as native woods, parquet, chipboard, bamboo, laminate, engineered, vinyl, tile or concrete, and our surface sealer-finisher is the only one in the world with 100 percent adhesion. What that means is amazing durability and a five-year guarantee.’ But there are more advantages to Mr. Sandless than a great finish, as Lianne explains. ‘Mr. Sandless ticks all the boxes for franchisees and customers. We use a certified green process which doesn’t create dust, so it’s clean and doesn’t spread potentially carcinogenic material around the atmosphere. In addition, our proprietary non-toxic and odourless water-based sealerfinisher dries ready for recoating in 20 to 30 minutes. That means we’re in and out within hours, rather than the days it would take for traditional sanding and polyurethane application. All this results in minimal disruption, faster service and lower costs for customers, and the ability to turn round more work every day for franchisees.’

it’s a game-changer Mr. Sandless was created by floor refinisher Dan Praz. In 2006, Luke Anastasio of Northern Pennsylvania became one of the first franchisees after seeing the results Mr. Sandless achieved on the floors of a friend’s father’s house. Today, he is in the top 10 of hundreds of franchisees in the US for sales and doesn’t regret walking away from his retail career for one moment. ‘There’s always plenty of interest in the service and I reckon to close 9 out of 10 enquiries,’ Luke says. He shares his recipe for success as a Mr. Sandless franchisee. ‘Always be accessible to customers; I make a point of always answering my phone or responding quickly to voice messages. Be totally honest about what you can do and when something else is needed. Never over-promise and always aim to over-deliver. And be prepared to put in the hours when people want you: my philosophy is work hard now, play hard later.’ Another experienced franchisee, Don Blackwell of Louisiana, agrees that the business potential with Mr. Sandless is huge. ‘The first time I saw a floor refinished by Mr. Sandless I immediately knew it was a game changer – I had no idea it was possible to make a hard surface floor look so good without sanding. I bought my franchise in December 2010 and it came with a list of local realtors as part of the marketing package. I contacted them straight away and to this day, agents and property managers provide us with a big part of our business – they literally become a Mr. Sandless sales force! ‘Personally, I love it – I’m 68 now and plan to be out there working Mr. Sandless until I’m at least 72.’ franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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After

year-round income Barry and Lianne say that after five years running the franchise themselves in the Bay of Plenty, they’ve had similar experiences to Luke and Don. ‘Although we’re thousands of kilometres away from the US, we’re only ever seconds away from advice and support, and not just from franchisor staff or Dan Praz himself, but from the hundreds of Mr. Sandless franchisees around the country. Between them they’ve seen it all and have solutions for everything.’ At just $34,999 +gst, Mr. Sandless is a low investment, high potential business. In addition to marketing and advertising support, equipment, start-up supplies and more, the fee includes Dr. DecknFence – an add-on income stream that uses Mr. Sandless non-toxic formulations on decks and other outdoor areas. ‘During spring, requests for home calls by Dr. DecknFence flood in,’ says Lianne. ‘It’s particularly suited to the New Zealand lifestyle and represents a real asset for building year-round income.’

enormous market Barry and Lianne are looking for people ready to take the Mr. Sandless and Dr. DecknFence services to cities and towns around New Zealand. ‘The market is enormous with no other refinisher able to compete on time, quality and price. It’s remarkably cost-effective to reach potential customers, and once referrals kick in, franchisees won’t know what’s hit them!’ Barry says the ideal franchisee needs basic common sense and the ability to work with others as their business grows. ‘They also need excellent English and communication skills to work with customers at all levels from householders to corporate managers. They need to know their area well and have good local contacts, and must show total integrity, including passing police checks.’ ‘If you have all that and you can follow the processes to give a first-class result every time, your business will soon take off,’ says Lianne. ‘Mr. Sandless has enhanced our lives in so many ways and can do the same for you. Call me now and let’s discuss enhancing your future.’

advertiser info

Mr. Sandless www.mrsandless.co.nz Dr. DecknFence www.drdeck.co.nz Contact Lianne Walker M 027 652 8908 nz@mrsandless.co.nz

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franchise management

WHILE YOU ARE SLEEPING… A

ccording to Forbes magazine, in 2015 the top five most valuable brands in the world were Apple, Microsoft, Google, Coca-Cola and IBM. The sixth was the world’s best-known franchise, McDonald’s, and franchises like Starbucks and Subway make the top 100.

be considered as an important asset. Brands and logos should be protected by registered trademarks as far as possible. After all, they are an important part of a franchise’s intellectual property, just as much as its operating system, products and manuals.

Many of our top brands in New Zealand are franchised, too, with Fonterra’s Anchor reaching the shelves through franchised distributors and Pak’n’Save, New World and Four Square all operating through franchise arrangements. The value of a franchised brand was made apparent recently when Fastway was sold for a massive $125 million (see page 16) despite the fact that many of its assets and operations are owned not by the company itself but by its network of regional and local franchisees.

For that reason, franchisors tend to be very careful with how they and their franchisees use their brand in the professional media: print, billboards, television, radio, websites and so on. But social media is a different matter. It’s much more informal, much more immediate and a damaging message can be posted by anyone and go viral in minutes. As the old saying goes, ‘A lie can travel half-way round the world while the truth is putting its boots on.’

It’s the brand that attracts customers and the brand that attracts franchisees, so a company’s brand and the logo that represents it should

Franchisors therefore need to monitor the impact of social media on their brands on a daily basis. Facebook is a useful tool but it can be very

istockphoto.com/hocus-focus

Stewart Germann says social media can pose a major threat to brand values

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Franchise New Zealand

Autumn 2016

Year 25 Issue 01

22/03/16 5:51 PM


BNZS 4887

damaging to a brand and its franchisees. So, from a legal and practical point of view, how do you deal with it?

put policies in place The term ‘social media’ is often defined to mean web-based technologies used to turn communication into interactive dialogue including internet forums, web blogs, social blogs, microblogging, wikis, podcasts, photographs or pictures, video, rating and social bookmarking; for example, Google, Facebook, Twitter, LinkedIn, Wikipedia, YouTube. Franchisors need to manage, update and control the content of all electronic communication. Of course, the same comment equally applies to all other businesses, but franchises have an additional exposure because it is not just the franchisor who has an investment in the brand but the franchisees too. In the online world the lines between public and private, personal and professional are blurred. By identifying themselves as franchisees or as employees of franchisees, people far removed from the brand’s management are creating perceptions in the minds of customers and the public at large.

istockphoto.com/hocus-focus

It is therefore important to have a social media policy in place for everyone in the network. This should include the following: • Staff are personally responsible for the content they publish on blogs, wikis or any other form of user-generated media. Be mindful that what you publish will be public for a long time so you must protect your privacy.

Working for yourself doesn’t have to mean working by yourself.

• Avoid posting work issues or frustrations in public forums. • Always ask permission to publish or report on conversations that are meant to be private or internal. • Don’t provide confidential or other proprietary information to third parties. • Always respect and adhere to copyright, privacy, fair use and other information disclosure laws if any. • Never quote or reference customers or suppliers without their approval. • Always respect your audience and don’t use words that can be considered as racist or discriminatory. Franchisors and other business owners should be aware that all social media postings have the potential to impact the brand, both positively and negatively, so all social media content and posts must be frequently checked and updated. There are numerous media monitoring tools available to make this easy, starting with the free Google Alert service and extending to more sophisticated tools such as Mention and Brandwatch.

If you’re considering a franchise, our specialists are here to help. 0800 269 018 bnz.co.nz/franchise

taking legal action While many social media comments are made anonymously, Facebook and blog posts are identifiable. In the recent Australian case of Seafolly v. Madden, social media and brand damage were discussed. The owner of a small swimwear business posted on her Facebook page a number of extracts from the Seafolly catalogue of the Seafolly designs with the question: ‘The most sincere form of flattery?’ and the equivalent names of her designs. The owner also contacted various media outlets and the story quickly spread. Seafolly sued the owner for misleading and deceptive conduct in breach of Australian consumer law. Madden maintained that her comments were personal in nature and not businessrelated but the Court disagreed and found Madden liable for misleading and deceptive conduct. Because Madden had posted comments on her Facebook page, there was also brand damage. Social media poses a significant reputational risk to companies, so it is crucial for every franchisor to have policies and procedures in place to deal with any about the author attack on its brand. People Stewart Germann is principal of are quick to complain when Stewart Germann Law Office and they have a bad experience has over 35 years’ experience and very slow to compliment, in franchising, licensing and if at all. The danger of social commercial law. He is one of only two New Zealand lawyers media is that while you are included in the International sleeping, your brand could Who’s Who of Franchise Lawyers be destroyed. franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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running a franchise: finance

WHAT DO YOU WANT from your business? RightWay helps you make the most of your franchise to create the future you want

Darren Eagle: ‘Success in business isn’t just about numbers. We help business owners earn more and stress less’

T

here are plenty of reasons why people go into business for themselves: they might want to improve their financial position, be the master of their own future, stop working for others, follow a passion or want a different lifestyle. ‘But if you buy a business with visions of fancy cars, long holidays on tropical islands and 30 hour weeks, you’re in for a nasty shock,’ says Darren Eagle of RightWay. ‘All of those things are achievable, eventually, but merely owning a business doesn’t make you successful. Good planning and good management do – and that means taking the right advice at every step of the journey. That’s where RightWay comes in. As accountants and business advisors, we help New Zealand’s business owners earn more and stress less. And that means understanding what you really want and helping you get there.’ Darren suggests that many small business owners have a poor understanding of what they actually need to do compared with what they want to do. ‘Let’s take a highly-skilled handyman who is great at doing the work and loves being on the tools helping people do small repairs and generally being out and about… it’s a great life, right? The problem is that they need customers to make their business work and these customers are not going to come knocking on their door without some marketing. ‘Now, if they’re a franchisee they’ll get a level of marketing support that might be a business card and a few thousand flyers right up to a highly visible TV and online campaign that generates a wealth of leads. But the handyman still needs to “sell” – they still need to build a relationship with each potential client and convince them of their ability (and trustworthiness) to ensure they get the job. After all, each new client is a potential advocate and if they are satisfied could be a fantastic source of more work. So every business owner actually has to be constantly on the lookout for opportunities, and available when they present themselves. ‘Many small business owners find sales and marketing comes a long way down their “to-do” list, and that’s why they fail to get where they dreamed of being.’

how to grow your business Darren offers six ideas for growing your business. ‘These are ideas that we teach our clients at RightWay all the time, because they’re simple and effective,’ he says. ‘Then we can help you develop the systems to make them happen so that you can achieve the goals you started out with.’ 1. Know your market. Who uses your business and what influences their decision-making? How can you be seen by them? Where do they hang out? franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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How can you get them to be your advocates and refer business your way? 2. Do research on competitors in your area. How can you differentiate yourself from them? (within the franchise guidelines) 3. Charge more. Do not cut your price to match a competitor’s – ever! This is one of the biggest mistakes I see in business: once you start discounting, it’s a race to the bottom. Instead, add some value to the service you are offering: an extra (edges trimmed free), a loyalty bonus or a guarantee on your work – something that has little cost to you but offers a great benefit or perceived value to the client. 4. Smile! How can you expect prospective clients to want to use you if you don’t look as if you enjoy what you do? Ever had a grumpy waiter? Did you enjoy the experience? This is a low-cost and highly infectious way to build your business clientele. 5. Have down time. Working hard is a necessary part of owning your own business and sometimes you just have to put in the hours. But you also need to step away sometimes to gain some perspective from a distance. Time with family or friends is important – studies show that family support is a key predictor of franchisee success. 6. Sell your service. The best salespeople are the ones who love what they do and believe in the quality of their product or service. But you don’t have to think of it as ‘sales’ if you’re uncomfortable with that. It’s more problem solving: asking loads of questions, finding out what your prospective client is looking for then deciding if you have a solution to offer them. People buy from people they like and trust.

flexible packages

It might seem odd to get sales advice from an accounting company, but RightWay isn’t just any company – it’s one of the country’s fastest growing accountancy and business advisory firms with 13 offices from Whangarei to Invercargill. To make life easier for franchisees, RightWay offers six flexible packages starting from $95 per month. ‘Success in business isn’t just about numbers,’ Darren says. ‘It’s about personal satisfaction, people and lifestyle. It’s about preparing for the future you want, whether that includes a European holiday, a new boat or a comfortable retirement. You can do it – but you need to plan. Contact us today to find out how to make the most of your franchise.’

advertiser info RightWay Level1, 182 Vivian Street, Wellington 6011 www.rightway.co.nz Contact Darren Eagle M 021 791 971 darren.eagle@rightway.co.nz

63 22/03/16 5:03 PM


opportunity: retail

WHERE FASHION MEETS SPORT Stirling Sports’ new direction continues to bring success

S

tirling Sports is one of New Zealand’s most recognisable brands, with a rich history dating back over 50 years. Retail has gone through massive changes in that time and Stirling Sports has changed, too. Today, the brand is clearly focused on being ‘Where Fashion Meets Sport’ and has strong distribution throughout key high-profile retail locations in New Zealand. Now the franchise is undergoing further expansion with the launch of Stirling Women. ‘Stirling Sports stores offer product that is innovative, on-trend and highly desirable,’ explains Geoff Young, the company’s Franchise Manager. ‘We stock exclusive ranges from top brands such as Nike, adidas, Converse and Lorna Jane, to name but a few. It’s a fast-moving market and our experienced buying team are continually striving to improve and evolve the product mix for the benefit of our franchisees. Their product philosophy of “elevate to separate” means always looking to provide something better and different to make Stirling Sports the sports fashion leader.’

inspiring vision The philosophy is clearly paying off, as Stirling Sports is experiencing significant growth throughout New Zealand. ‘We have a real emphasis on casual apparel and footwear, women’s gym and activewear, while retaining our position in running, performance sport and football,’ Geoff says. ‘But there’s more to it than product – our vision is to provide a worldclass retail experience inspired by sport and executed with style.’ That vision is clear in the first Stirling Women store which has just opened in Auckland’s Sylvia Park – a women-only environment offering premium

A business with heart

sportswear brands and elevated product lines. ‘We believe there’s a significant opportunity in the ever-expanding women’s fitness/leisure market, so Stirling Women offers an attractive multi-brand assortment,’ Geoff says. ‘Ranges will be curated to represent the best from the best to establish Stirling Women as the place to shop.’

franchise opportunities Stirling Sports is continually looking to grow and is now seeking quality new franchisees across the country for both Stirling Sports and Stirling Women. Current opportunities exist in Auckland, Bay of Plenty, Wellington, Marlborough, Canterbury, South Canterbury, Otago and Southland. ‘Our ideal franchisee would be enthusiastic, motivated and businessorientated with a real desire to succeed,’ says Geoff. ‘The one-off franchise and territory fee is $40,000 +gst with additional capital required for store leasing, fit-out and initial stock. ‘Stirling Sports provides a comprehensive training and support package with designated buying, marketing and operational support to each advertiser info individual franchisee. There are quarterly buying meetings, regular Stirling Sports store visits by merchandisers and PO Box 35 374, Shirley, Christchurch 8640 operations managers as well as an www.stirlingsports.co.nz extensive IT back office support structure to help you focus on Contact growing your business. Geoff Young

Franchise Manager M 022 417 3127 geoff.young@stirlingsports.co.nz

‘If you think you have what it takes to deliver retail with style, contact us today.’

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Phone: +64 9 550-8500 Email: info@ParallelDirections.co.nz Franchise New Zealand

Autumn 2016

Year 25 Issue 01

24/03/16 11:13 AM


opportunity: home & building

The Pro Group franchisees work together to build additional income streams

sharing

EXPERIENCE F

ranchisors spend years developing systems that form the basis of many successful franchise businesses – but they don’t have a monopoly on bright ideas. After all, the Big Mac was invented by a franchisee. That’s why wise franchisors like Joe Hesmondhalgh and Rob Howard of The Pro Group encourage clever initiatives from franchisees. At last year’s annual franchise conference, Joe and Rob sowed the germ of an idea that immediately resonated with Charlie and Heena Chhagan. ‘The Pro Group covers a number of different specialist services in the home and building sector,’ explains Joe. ‘There’s GroutPro, which offers a tile and grout restoration and after-installation service; Deck & Fence Pro restores and maintains decks, fences and garden furniture; Prep & Paint Pro manages indoor and outdoor painting projects; Garage Carpet Pro is an add-on franchise that transforms garages into multi-purpose spaces; and the latest, Grass Pro, combines artificial turf supply and installation with real lawn maintenance. ‘Altogether, we service over 12,000 customers per year and have almost 90 franchisees, with room for many more. What we talked about at the conference was how franchisees could promote each other’s services and the additional commission-based income stream this creates. The Chhagans took the idea and ran with it.’

it’s a no-brainer Husband and wife team Charlie and Heena have been GroutPro franchisees since September 2014. ‘To us, cross-selling was a no brainer,’ says Charlie. ‘ It was hugely beneficial for customers for us to be able to spot issues and recommend people we knew they could rely upon, and it created an additional income stream for us – money for jam! ‘Since buying our GroutPro tile and grout restoration franchise, we’ve developed excellent relationships with our fellow franchisees, especially those in the West and Central Auckland area we service: Zane and Jaimi Scott of Deck & Fence Pro, and Panga Teta and Meredith Laufiso of Prep & Paint Pro. We recommended each other to customers before, of course, but now with the blessing of Joe and Rob we have formalised our relationship into The Pro Group Experience. What this means is that we consciously and consistently promote each other’s services. When I pull out information from our sales and marketing pack I don’t just talk about GroutPro and Garage Carpet Pro, but also Deck & Fence Pro and Prep & Paint Pro.

The nine-metre stand showcases two of The Pro Group’s services – and promotes them all franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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Heena and Charlie Chhagan

‘Personally, we view commission income from cross-selling other Pro Group services as a real benefit for any potential franchisee of The Pro Group. It provides extra work and extra income opportunity so it’s worth getting out and about to make your own Pro Group Experience happen.’

a little gold mine Charlie and Heena say that although following the franchise’s processes and systems to the letter is at the heart of their success, it doesn’t stop them applying their own entrepreneurial flair. ‘After 10 years on the selling side of the print industry, I feel I’m putting my commerce degree in communication management and marketing to good use at last,’ Charlie grins. Heena’s experience as a former immigration officer and independent immigration consultant is also invaluable in dealing with many new clients. In addition to using The Pro Group’s proven marketing material and benefitting from the company’s television advertising, the couple put their heads together to see what other business building ideas they could come up with. Top of the list was a stand in a local home ideas centre so, having discussed it with Joe and Rob, the couple built a nine-metre long stand showcasing their services. They haven’t looked back since, with leads coming in daily for their own Grout Pro and Garage Carpet Pro as well as the other services provided by The Pro Group Experience. ‘It’s a little gold mine for all of us,’ Charlie says.

six-figure turnover in first year GroutPro and Deck & Fence Pro franchises (both of which can include Garage Carpet Pro) are now available in new areas for just $29,500 +gst, with Prep & Paint Pro the same price. These figures include an extensive package of tools, sales and marketing material, uniforms, vehicle signwriting and cloud-based technology for immediate quoting and contract management. Charlie and Heena were typical of most Pro Group franchisees in having no previous experience apart from DIY renovation projects, but say their training quickly addressed that. ‘In Duayne Moul we had the guru of all gurus,’ laughs Heena. ‘What an amazing trainer – he covered all the bases so well we went away feeling like seasoned pros. And Joe and Rob’s ongoing support is a key asset in itself.’ Riding high on success, and with one staff member already and another starting soon, did the Chhagans reach the six-figure high-margin turnover quoted by Joe Hesmondhalgh as achievable in the first year? ‘Very definitely,’ Charlie and Heena advertiser info chorus. ‘It did take a lot of work and some six-day weeks, but The Pro Group we did it. 26 Taonui Street, Palmerston ‘Investing in The Pro Group is the best thing we’ve ever done, other than getting married. We don’t just go to work – we’re building a business and an asset for our future together. Talk with Joe and see if you can do it too.’

North 4410 theprogroup.co.nz Contact Duane Moul P 0-4-904 3366 M 022 477 6477 duane.m@theprogroup.co.nz

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ANZ2452 - Franchise_FP v5.indd 1

4/06/15 10:38 am


opportunity: business & commercial

Appliance Tagging Services has clients ready and waiting for Kiwi franchisees

C

Tim MacKinley: ‘ATS has a lot going for it: flexible working hours; a growth industry; and no experience required’

ome on Kiwis, where the bloody hell are ya?’ That’s what Brisbane’s Tim MacKinley is wondering – and he says that unless someone takes up the Appliance Tagging Services franchise for Auckland soon, he’ll be crossing the Tasman himself to make the most of a major opportunity.

SWITCH ON TO OPPORTUNITY

Standards New Zealand and Standards Australia require mandatory testing and tagging of plug-in appliances and electrical devices in business and commercial premises, schools and colleges – in fact, everywhere but private dwellings. That’s created a big opportunity for anyone looking for a business that provides regular, recurring income, and Appliance Tagging Services (ATS) is the market leader. Established in 2006 by Sarah Allen and her husband Ainslie, ATS has 47 franchisees and some 13,000 client sites.

‘Our client list is a who’s who of Australasian banking, retail and other major corporates,’ explains Tim, who bought his Brisbane franchise in 2009. ‘The vast majority have a strong presence in New Zealand, and especially Auckland. As a result, we are contacted literally daily by companies asking when ATS will be up and running in New Zealand. ‘What our clients want isn’t just on-site tagging and testing – that’s not exactly brain surgery – but the convenience of centralised compliance reporting, one-point accounting and other back-end services. That keeps their employees safe and their businesses compliant with the law with no fuss. This is a huge competitive benefit, so we need franchisees in major cities and towns across New Zealand.’

ready market, no experience needed Tim says ATS has a lot going for it: flexible working hours; a growth industry; and no experience required. ‘Best of all, it provides multiple income streams from testing and tagging to fire extinguisher inspection and maintenance; exit and emergency light testing; safety switch (RCD) testing; microwave leakage testing; and replacing faulty power leads, plugs and powerboards. Ultimately, ATS is an though, it’s very much a people opportunity for everyone business, and if you can communicate well then you can build a great income. ‘I’ve proved all that many times over. I had no business experience before buying my franchise – I was in IT for 15 years, first as a technician and then in HR, and my wife Sandra was in strategic management for property development. She still does that but together we’ve created a business that turns over more than AU$300,000 with very healthy margins in just five years. ‘These days we have two employees and I’m spending just 25 hours a week on the job, which gives me plenty of time to pick up Max (6) from school and Molly (3) from child care, as well as being part of the coaching franchise.co.nz – PUTTING PEOPLE IN BUSINESS

Appliance Tagging Services 67.indd 1

team of the Brisbane Lions AFL team.’ But on a scorching hot Brisbane day, Tim confesses that Auckland, with its cooler climate and red hot opportunities, is tempting. As he explains, ‘The first franchisee up and running anywhere in New Zealand has immediate access to all the Designated Marketing Areas that ATS has identified in their area. That’s a huge opportunity for the first people to get on board, and if no Kiwis want it, I couldn’t resist. But I’d rather see someone already in Auckland with the local knowledge get in first. I’m more than happy to help and with the support of the ATS training team I know they’ll hit the ground running – even if the only electrical experience they have is pushing plugs into sockets and changing light bulbs.’

making it easy ‘From my own experience, the key attributes an ATS franchisee needs is to be able to engage their clients and actively build their client base,’ says Tim. ‘ATS provides the training, the systems and the resources, and you can take it from there. ‘To be honest, they make it easy for you. ATS does all the invoicing and debt collection for franchisees, and we get paid on a monthly basis regardless of whether a client has paid them or not. The franchisor team also manage our data management, report preparation and job scheduling. To keep you up to speed there’s ongoing sales training and they adopt constantly-evolving technology which has doubled the speed of testing since I joined. As my revenue is calculated on a charge per test rate, that’s doubled my income potential too. I think it’s easy for many potential franchisees to get hung up on fees and royalties, but let me tell you – what we pay ATS is more than offset by what we get in return.’ New ATS franchisees invest $69,000 +gst for a package which includes that massive initial marketing area, all the necessary equipment, training in Melbourne, marketing and lead generation, and everything else you need to get up and running apart from a vehicle – which can be leased. ‘Factor in all that business ready and waiting advertiser info to be serviced and it’s a great opportunity to get into your Appliance Tagging Services own business at minimal risk,’ www.appliancetaggingservices. Tim suggests. ‘Having been there and done it myself, I know the possibilities so if you’re interested, contact ATS’s franchise sales manager Steve Wren. Because if you don’t, I will!’

com.au/franchise Contact Steve Wren P 0061 3 8520 9750 M 0061 438 043 900 steve@ats.com.au

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buying a franchise: finance

the value of GUARANTEES What importance should you place on a work or income guarantee?

to confirm exactly how any guarantee operates before making their decision. Here are some questions that may help: • What is the purpose behind the guarantee being offered? • Is it a guarantee of work to an agreed value or of income to a set level?

A

number of franchises offer some sort of work or income guarantee, especially in the home services and commercial cleaning sectors. If you are leaving a regular pay cheque behind for the first time, the idea of a guarantee can be an attractive one because it reduces some of the risks of setting up your own business. However, having a guarantee is still not the same as being employed. The amount guaranteed is likely to be enough to see you through difficult times or the initial start-up period, but to get a real return on the time and investment you put in, you will need to make the business work. If you do not believe that you will be able to exceed the guaranteed amount and achieve your real goals, don’t buy the franchise. On the other hand, if you just want some reassurance while you get your business-building skills up to speed, a guarantee offers a safety net. If the guarantee is important to you, it’s important to know what it is and what it covers. In general, guarantees are divided into two types: work guarantees, where the franchisee is guaranteed a certain value of work that they must go out and do in order to generate income, and, less commonly, income guarantees, where the franchisee is guaranteed a minimum income. Whichever type of guarantee is offered, there are certain to be a number of conditions that have to be fulfilled before the franchisee can collect upon it. For this reason, franchise buyers need to be careful

• What is the guaranteed amount? • Under what circumstances will it be paid? • How long will it be paid for? • What special conditions apply (eg. must I accept any work given anywhere? Must I contact the franchise office every day for work?) • When is the guaranteed amount payable? • What happens if the franchisor cannot afford to pay the guarantee for the specified period? • What evidence is there that the guarantee has actually been paid out? • If you take the guarantee out of the package, does the franchise still appear to be attractive and viable? This last question is perhaps the most important of all. Franchising is generally a very low-risk way to go into business, but if you want to lower the risk even further, don’t rely solely on guarantees. Choose wisely, do your research and above all take advice from a franchise-experienced lawyer and accountant. True success depends not only on the training, support, and systems provided by the franchisor but on the commitment and hard work more about guarantees you put in – and no-one can Go to www.franchise.co.nz guarantee those. In the end, Search: Guarantees your success is up to you.

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68 EDIT Gurantees 68.indd 1

Franchise New Zealand

Autumn 2016

Year 25 Issue 01

22/03/16 5:18 PM


opportunity: food & beverage

addicted to PERFECTION Columbus Coffee franchisees enjoy the support of a team that’s fanatical about getting it right

I

n recent years, more and more customers and franchisees have been attracted to Columbus Coffee, and Sarah Primrose thinks she knows why. ‘We are addicted to perfection,’ smiles Sarah, who is Menu Development Manager for the franchise. ‘We are a genuine Kiwi born-and-bred brand and have developed values, systems, training and support to help everyone live up to this philosophy.’ It’s an approach that runs throughout Columbus Coffee, as one of its founding directors, David Burton, explains. ‘The quality of our coffee is hugely important to us,’ says David. ‘We have very stringent parameters around all aspects of handling our beans from purchase to roasting, storage to café delivery, to ensure our coffee is in peak condition every step of the way. For example, we did an experiment by roasting 90 kilos of coffee and then bagging it in 45 bags. Every day for 45 days we’d taste each bag and analyse the results until we had a chart which showed exactly when the coffee was at its best. Then we worked back through the delivery cycle to ensure we could get it to our cafés in the best condition for them to use at the optimum time. It means our franchisees are always working with the perfect beans at the perfect time.’

bean there, done that Once the beans are in store, delivering the perfect cup of coffee is down to the skill of the barista – which is where Pavel Zhuravlyov, the Group Barista Trainer for Columbus, comes in. ‘I am passionate about coffee,’ he says, ‘and I’ve been working with it for seven years. I originally trained in one of the best cafés in Australia where a very strict head barista pushed me hard. I thank him for that because it made me very good at my trade and I got my passion for training others from him.’ Today, Pavel visits Columbus stores regularly to assist baristas in their extensive pursuit Columbus Coffee’s 2015 barista champion of perfection. ‘In Brittany Cox with the Columbus team addition to our one-on-one training, we use software to track the progress of each individual. We carry out theory and practical assessments, and challenge them to enter our annual Columbus Barista Championships. This is a real incentive: the competition is judged to international standards, promotes healthy internal competition between Columbus staff and offers cash prizes. This year’s winner also made it to the semi-finals of the NZ Barista Championship.’ franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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David Burton: ‘The quality of our coffee is hugely important to us’

more customers, more often Columbus Coffee has carried its addiction to perfection into its food, too. Sarah Primrose has spearheaded the brand’s transformation of its menu over recent years to meet the demands of a modern, quality and health conscious market. ‘People these days are as likely to want a paleo salad as a sausage roll, but they like to have the option,’ she explains. With our in-store kitchens, Columbus franchisees can deliver both in a fresh and healthy way.’ Sarah’s CV makes her ideal for the role. A qualified chef, she has worked in a variety of high-end restaurants and hotels and represented NZ in a number of culinary competitions. She joined Columbus to tackle the challenge of delivering popular, healthy and profitable menus across a national franchise. A key initiative to keep evolving with changing customer needs has been to launch the Lifestyle Favourites range. ‘This menu innovation includes refined sugar-free, dairy-free, gluten-free, paleo, raw and vegan options, all of which still allow people to enjoy tasty, flavoursome food. We’ve launched new products and revised existing ones to make them healthier, and this has encouraged our customers to visit more often. ‘At the same time as launching new menus throughout the network, we also encourage franchisees to develop their own recipes to suit local tastes. Coupled with our digital rewards programme, our food is attracting more customers, more often, to franchisees’ cafés nationwide. As people are discovering, we pride ourselves on our coffee but we take our food just as seriously.’

considerable rewards Columbus Coffee is continuing to expand, with new cafés opening in both high street and Mitre 10 MEGA locations around the country. ‘The investment required varies between $280,000 and $380,000 for high street sites, while cafés in Mitre 10 MEGA can be funded for $220,000 or less depending on the model,’ says Columbus Coffee general manager Peter Webster. ‘It’s a sizeable investment, but the rewards can be advertiser info considerable. You don’t need hospitality experience so, if you have good people Columbus Coffee and management skills, give me a call.’ PO Box 911 030, Victoria And co-founder David Burton has a word of reassurance for those who have always dreamed of owning their own business but have never been in hospitality. ‘We have a great team here to guide and support you every step of the way. If you share our addiction, contact us today.’

Street West, Auckland 1142 www.columbuscoffee.co.nz Contact Peter Webster General Manager P 0-9-520 1044 M 021 883 852 peter@columbuscoffee.co.nz

69 22/03/16 5:27 PM


running a franchise: financial matters

home-based businesses WHAT C Many homebased franchises are advertised as offering tax advantages. What does this mean, and what can you claim? Philip Morrison offers a guide. f you’re looking at buying a home-based business, it is likely that your business vehicle will be parked or garaged at your home; that any stock will be stored in your home; and that you’ll use a dedicated office in the house or certain areas to meet clients, do the paperwork, the accounts, the ordering and scheduling and the 101 other tasks that go with running a small business. That might sound like a big ask but, as any franchisor will tell you, it has advantages too. Being home-based means that you don’t need expensive premises, which keeps overheads down. Even better, the IRD recognises that if you are using the family home for business purposes, a

portion of certain expenses is deductible for tax purposes. These can include, for example, rent, rates, mortgage, maintenance or power bills. For many, the idea that you can put part of the mortgage and other costs through the business is an attractive one. However, you have to be careful to ensure that you only claim what are fair and reasonable costs of working from home. It’s an area where taking proper professional advice from an accountant is essential if you want to avoid getting yourself into trouble with the IRD – and, believe me, getting into trouble with the IRD is the last thing any small business needs.

istockphoto.com/natianis

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“I love the systems and the professionalism of Just Cuts, and to me, it is Just Cuts all the way.” Aroha from Queensgate, Wellington

“After being a stylist at Just Cuts, Hamilton for 5 years, I jumped at the opportunity to become my own boss by taking on a Just Cuts in Tauranga. Even though I had no business experience, I trusted the Just Cuts business model and the support provided.” Jenni from Bethlehem, Tauranga

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70 EDIT Working from Home 70.indd 1

Contact NZ Master Franchisor, Scott Wallace, today for a confidential discussion on how you can be a part of this long standing successful franchise. Opportunities exist in all areas of New Zealand and come with leading support systems as well as a motivated management team that is New Zealand based. Just Cuts offers you guidance at every step. The systems and Just Cuts business model have been developed to ensure that owners

do not need to have any experience in hairdressing; just a motivation to succeed. With over 20 years of franchise experience, purchasing a Just Cuts franchise can help you to create a business that can grow to any size you wish. Many of our owners now own multiple stores. Contact Scott Wallace on 027 277 7071 or scott@justcuts.co.nz

Franchise New Zealand

Autumn 2016

Year 25 Issue 01

22/03/16 5:17 PM


AT CAN I CLAIM? Here are some of the areas that you’ll want to consider when planning to work from home. Please remember that this is a general outline only, and you’ll need to consider your own specific situation with your accountant.

what constitutes a home office? Where there is an area specifically set aside in the family home which is used principally for the business as an office, workshop or for storage, a portion of some household expenses are permitted to be claimed as a tax deduction by the business. Expenses claimed must relate to the area set aside for business use.

what types of expenses can be claimed? Typical examples would include a reasonable proportion of mortgage interest, rent, rates, insurance and power bills. The exact apportionment between what can be claimed will vary based on your individual circumstances.

istockphoto.com/natianis

Telephone and internet charges can also be claimed. As a rule of thumb, if the telephone and internet are used for both business and private purposes, a business claim is permitted for 50% of the rental only. For toll calls, a business claim is available for the full cost of business calls.

what records need to be kept? The requirements in relation to record keeping are the same as for any other business expense, so it is essential that documentation be kept in support of any claim made. These need to be kept to support the claims made and need to be reasonable. Aggressive claims with no reasonable justification could be deemed as personal and not business-related and therefore rejected by the IRD.

gst implications Not all home office expenses will attract GST – for example, there is no GST component in the interest on mortgages. On the other hand, rates, insurance and power do have a GST component, so if the taxpayer is GST-registered 3/23 of the calculated business amount can be claimed as GST input tax (see our article on GST for Beginners at www.franchise. co.nz). This calculation is best left to your accountant to determine, as the apportionment can require some detailed calculations. You need to keep GST invoices to be able to claim the expenses, so a good filing system is recommended. These records need to be kept for seven years.

when can you claim home office expenses? These are usually claimed once a year and form part of your year-end financial statements.

summary Keeping good records and having a good filing system is recommended. Consider using a spreadsheet or accounting software such as MYOB where you tally the amounts of each expense type so you have a running record. Some franchises may recommend particular software packages which tie in with their own management software and make it easier for them to assist you. Remember, if challenged you need to be able to show that your claims are reasonable and sustainable, so claiming 100% of your rent, power etc as business-related would be rejected. Take advice from your accountant on these matters – don’t rely on a friend or family advice to guide you. There are boundaries which are acceptable and sustainable within the IRD guidelines, so it’s best to do it right from day one. Aggressive claims may trigger a ‘please explain’ letter from the IRD or, about the author worse, a full investigation. This would almost certainly be very disruptive Philip Morrison is principal of Franchise Accountants, an awardto your business. Working from home certainly does offer some advantages but take care to stay within the rules. Your accountant will help you stay safe.

winning specialist accounting practice which has worked with franchisees of over 200 different franchise brands throughout New Zealand.

franchise.co.nz – PUTTING PEOPLE IN BUSINESS

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71 22/03/16 5:17 PM


“I’ve seen fantastic growth!” Matt Gillespie, Zones Franchisee

Join Zones and grow a multi-million dollar franchise

You don’t need to be a landscaper, so talk to Matt Steele today: Ph (09) 303 0670, matt.steele@zones.co.nz www.zonesfranchiseopportunities.co.nz

ES W IS NO CH LE AN B FR AILA AV


opportunity: business & commercial

SBA’s reputation draws accountants seeking real career satisfaction

Real opportunities beyond the big four S

BA’s reputation as the specialist accountants for small business means that the moment a new franchisee opens their doors, clients start pouring in. ‘That can be a steep learning curve for some, but for anyone with accounting experience it means growth can be very rapid,’ says Craig Gardiner, SBA’s Business Development Manager. ‘This is a fast-changing industry with massive opportunities opening up all around the country, and increasingly it’s appealing to qualified individuals who are ready to move out of a ‘big four’ accounting environment to own their own business in the location of their choice.’ That would be people like Gary Ng, who owns the SBA office in Hornby. ‘I’d worked in Pricewaterhouse and Deloitte in both NZ and the US before moving into the corporate sector,’ he explains. ‘Returning to accounting, I didn’t want the big four life but equally I didn’t want to be just another “Gary & Associates” – I was keen to step into something that was established in the marketplace. SBA fits the bill from every angle. The brand is very well-established and the existing infrastructure and systems are in place meaning I can concentrate on clients. I didn’t want to spend time sorting out software or design marketing material – that’s all done for me. ‘After a decade away, it was great to come straight in to state-of-the-art software, with first class accounting packages from Xero and CCH, and knowledge on tap from fifty other offices via our intranet. It gave me many of the advantages of a large organisation with none of the drawbacks!’ Gary admits that starting from scratch with no client list or network of contacts was a leap of faith, ‘but we achieved the projected number of clients in our first 12 months and have gone on growing ever since.’

an effective way to financial freedom Stephen Goddard was another Chartered Accountant working in a multi-national. ‘Promotions don’t tend to happen after 50 and I was facing years of career stagnation or even redundancy as more of our functions were moved offshore. So I decided to be proactive and look for my own business. My wife Jules and I considered buying a restaurant, but as we are both accountants it made more sense for us to start a business that used our skills and experience. Besides,’ he adds, ‘it’s where my passion lies!’ Steve and Jules quickly realised the SBA franchise model was an effective way to financial freedom. ‘SBA offers the support and experience of a business specifically focused on supporting the one business model, but you also get to stand on the shoulders of people who have gone before you and know how to make it work,’ says Steve. ‘It really helps to have that support during your initial training curve.’ franchise.co.nz – PUTTING PEOPLE IN BUSINESS

Small Business Accounting 73.indd 1

Steve and Jules opened their first branch in December 2012 and now run three SBA outlets on Auckland’s North Shore. ‘Our clients know who we are, what we do and how we work. People seek us out because they know SBA is a strong, convenient brand dedicated to customer service.’

walk-in approachability ‘One of SBA’s greatest strengths has always been its walk-in approachability,’ says Craig Gardiner. ‘Franchisees locate their branches in high-traffic, high-visibility locations, and new and existing clients come in for a chat about a particular problem, or to solve an on-going accounting issue. The culture of the franchise encourages building relationships rather than a “one sale fix,” and it has paid dividends. In a nation of small/medium sized businesses, SBA has thrived in the 17 years of its existence. ‘Few businesses under around $2 million turnover per year need an expensive firm of accountants – they just need timely financial information that allows them to get on with managing their enterprise. SBA runs a fixed-fee system which provides exactly that without them worrying they’ll be charged mega-bucks every time they pick up the phone to ask a question!’

satisfaction and contentment SBA continues to expand in line with national demand, and branches can be opened for $42,000 +gst plus around $15,000 for shop fit out. As far as Stuart Lowe, another Christchurch SBA franchisee was concerned, the relatively low cost of entry was a big draw. ‘We bought an existing business with over 300 customers on the books, and SBA’s strong brand name has been worth every penny. The operating model is pretty efficient, which creates strong margins even on the lower monthly fee rates. ‘It’s also attractive as it provides freedom from the confines of the traditional accounting model: high rent offices, snobby inner city buildings and loads of expensive staff. Those are exactly the kinds of things that put small business owners off!’ Craig says SBA wants to hear from qualified professionals who may have hit the ceiling in their big firms and would enjoy building their own future. As Gary Ng says, ‘At the end of the day, we have the satisfaction of running our own profitable business and the contentment of knowing we’ve done a bloody great job.’

advertiser info

Small Business Accounting PO Box 47 818, Ponsonby, Auckland www.sba.co.nz Contact Adam Parore P 0-9-378 0934 F 0-9-523 0355 adam@sba.co.nz

73 22/03/16 5:09 PM


opportunity: home & building

Dream Doors franchisee is going on growing

Josh and Brett Campbell: ‘We’ve only just started’

stop dreaming – start doing 15

months ago, Brett Campbell described his Dream Doors franchise as ‘The most lucrative business I’ve ever been involved in.’ He clearly meant it, as he’s since sold his car dealership to focus on the franchise and bought the neighbouring Dream Doors territories, too.

Doors can transform their house. Tracey and Rebecca run the project management and admin side and we’re doing about five or six installs a week. The keys are communication, service and quality. We get raves about our quality!’

His family – children Josh and Rebecca and partner Tracey – have come into the business, and he employs four installers and a full-time apprentice. This year, he’s expecting to turn over more than $3 million at a healthy 40 percent profit margin, ‘and we’ve only just started,’ he says.

The other factor in Brett’s success, he says, is the franchise system itself. ‘I would say almost anyone who can sell could do this, because the initial Dream Doors training was very good and the ongoing support is extremely professional. There are systems to help us monitor and measure every aspect of the business and the franchise team keep an eye on things, too. It’s like having mentors who really understand your business. They’re always there if we need them.’

Dream Doors supplies and fits replacement doors, surfaces and fittings to restore a home’s looks and value for a fraction of the cost and wastage of building new units. Franchisees offer a fast, efficient service with a huge range of finishes and fittings. The company was brought here from the UK in 2007 by co-founder Derek Lilly and has found a ready market among cost-conscious Kiwis. Brett says he knew nothing about the renovation business when he first came across Dream Doors, but he could immediately see the appeal. ‘You are providing a product that makes a real difference to people’s homes. Quite often, they’re expecting to have to spend tens of thousands of dollars so they’re shocked and delighted when they find out what we can do. That makes for a fantastic business. ‘Josh and I know how to sell but, to be honest, the quality of the product almost sells itself. We have our own showroom and we travel all over Auckland to follow up leads, meet new clients and show them how Dream

Dream Doors has territories available in many parts of New Zealand, and now in Australia too, says franchisor Derek Lilly. ‘The advertiser info investment required is just $75,000 for a 10-year term, Dream Doors (NZ) Ltd renewable for a further 10 PO Box 31, Lake Hawea 9345 www.dreamdoorskitchenfranchise.com years at no extra cost. A fixed monthly fee means Contact franchisees have unlimited Derek Lilly P 0-3-443 5133 earnings potential. So if P 0800 437 326 you’re looking for a business M 027 213 5133 with real value, do what Brett del@dreamdoors.co.nz did and call me today.’

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74 Dream Doors 74.indd 1

Franchise New Zealand

Autumn 2016

Year 25 Issue 01

22/03/16 5:26 PM


buying a franchise: legal matters

CUTTING THROUGH

the jargon Franchise lawyer David Foster provides a guide to common clauses in franchise agreements

W

hen you buy a franchise, you enter into a business relationship with the franchisor which is governed by a legal contract. That contract is called a franchise agreement, and for as long as you own the business it will control how you and your franchisor must act. Franchise agreements are generally quite lengthy documents. While some parts may be in plain English and can be readily understood, there will be others that require some explanation. The following is intended to give you a brief introduction to some of the clauses that you will often find in franchise agreements and what they actually mean. If you don’t have a proper understanding of what every clause means, and how it might be interpreted in a Court, that can be dangerous. For this reason, it’s important that you consult a specialist franchise lawyer before signing anything. When it comes to the clauses in any particular agreement, you must get specific advice as to: • What they mean • What risk they might present to you • Whether any perceived risk can be reduced or removed through negotiation Bear in mind that a franchisor is unlikely to consider any variations to the franchise agreement (especially if there are already other franchisees on the same agreement) unless: a) It is a new agreement that may be going through its ‘teething’ stages; or b) The suggested change clarifies a provision that doesn’t otherwise make sense; or c) You can demonstrate that the provision is completely unreasonable and without commercial justification.

general clauses Most franchise agreements will start with a section headed Background which is intended to record the history and purpose of the arrangement the franchisor and franchisee will be entering into. Is this accurate from your point of view? There will also be a section headed Definitions. This sets down the meanings of words and phrases that are frequently used in the agreement so that it can be clearly understood and correctly interpreted. It is important that these definitions make sense; they are a most important part of the agreement.

The franchise agreement should also contain a provision that the franchisor has the right to use the intellectual property (including the franchise’s name, processes and systems) and grant franchises during the term. This is most important: if the franchisor does not own the intellectual property, then the whole franchise – and your own investment – could be endangered.

clauses specific to your franchise When you buy a franchise, you don’t buy the business outright – you buy the right to operate it for a specific term, which will be detailed in the franchise agreement. In New Zealand, the term is usually defined in the agreement as a prescribed number of years which may range anywhere from three to ten years. There may be a right of renewal for one or two more terms. Once the agreement expires, you will have no further rights in respect of the business system at all. It is most important that the conditions upon which any renewal is granted are understood. The financial and timing aspects of the renewal, whilst critical, are only two of the most important factors to be considered. There will also probably be requirements as to franchisee performance, renewal fees and the new agreement to be signed. If the franchise is ‘premises critical’ – for example, if it is a business which is dependent upon having adequate premises – then there will probably be an obligation to bring the premises up to standard (if they are not already) or to refurbish to the image required by the franchise at the time of renewal. This may include a new fit-out and signage. It will also be a requirement that you have an acceptable lease of those premises for the renewed term. Many (although not all) franchise agreements will specify a territory within which the franchisee may operate. Some territories apply to the franchisee’s premises only, but most include a ‘marketing territory’ within which the franchisee may promote their own business or call on potential clients. This may be defined by a map included in the schedule (see below). There can be provisions for the territory to be changed if you don’t perform, or on renewal and in some other instances. By the way, if the franchisor talks about an ‘exclusive’ territory, check what ‘exclusive’ means. Does it mean that no other franchisee will be appointed within this area, or no other franchisee may market within this area? Does the restriction extend to the franchisors having company-owned outlets or selling to customers in the territory via the internet? Another common clause relates to Commencement of Business. Once the franchise has been granted, you will need to start operating by a certain time and do all of the things necessary to enable that to happen. If you fail to meet your obligations, the franchisor will have the ability to terminate the agreement.

obligations & responsibilities Franchise agreements contain obligations on both parties – both franchisors and franchisees. Check the franchisor’s obligations: some franchisors specify in reasonable detail what they will do for you, but more often than not the franchisor’s obligations are recorded in quite broad and non-specific terms tempered by the words ‘at the franchisor’s discretion’ or ‘if the franchisor deems necessary.’ On the other hand, the franchisee’s responsibilities tend to be more detailed. These should be read through thoroughly and understood by you. In particular, look out for obligations preventing you from operating or possibly being involved in any other business. In the list of your obligations you can also expect provisions relating to: Personal Property Securities Act. This allows the franchisor to register a charge over your business to secure monies due to it; General conduct. You have to act in such a way as not to damage the reputation of the franchise brand. For example, if you are convicted of a criminal offence or don’t pay your bills on time, your agreement can be terminated;

There may also be a section on Acknowledgments which requires you to confirm that you have carried out due diligence. If the franchisor is a member of the Franchise Association of New Zealand (FANZ), these will include at least the following statements:

Financial records. You have to keep appropriate records of accounts and may have to disclose certain information to the franchisor. Check this obligation with your accountant;

• That you have read and understood the terms of the agreement

Intellectual property. Although you are acquiring the right to operate the franchise, the brand, operating system and so on will remain the property of the franchisor. This may have implications for what you can do after you leave the franchise.

• That you have taken (or declined to take, if you are stupid) independent legal and accounting advice in respect of the agreement • That you have received no warranty or inducement or relied on any statement other than those contained in the franchise agreement • That there is no guarantee as to rate of return, profit, success of the business and that those things depend upon you It’s worth noting that FANZ members’ agreements (and some non-members’ agreements) also provide a compulsory seven-day cooling off period which allows the buyer to withdraw from the agreement – great if you suffer from ‘buyer remorse’ after you have signed up or if new information comes to light. franchise.co.nz – PUTTING PEOPLE IN BUSINESS

EDIT Cutting the Jargon 75.indd 1

Confidentiality. To protect the intellectual property, you will also be obliged to keep the secrets of the system and the manuals confidential; Minimum performance. Many franchises set minimum performance requirements for their franchisees to ensure that the business is properly run. You may have obligations to achieve certain sales and other targets. Approved suppliers. It is highly likely that you will be obliged to purchase some or all product and/or materials through approved suppliers. This requirement is

75 24/03/16 12:43 PM


Ray Lindstrom

We won’t be beaten on Quality or Price

Founder and Director

"We stand behind the best" MEGA Franchise Consultants are the most professional and cost effective way of developing your franchise documents and recruiting franchisees to expand your business worldwide... Check out our FREE Feasibility Report – can you franchise your business? (normal value $1500).

0800 006 444 www.megafranchise.co.nz

MEGA Franchise Consultants

buying a franchise: legal matters important for a number of franchises as it ensures that: a) The products are of a quality approved by the franchisor and meeting its standards; and b) The purchasing power that bulk purchases can obtain means large discounts which should largely be passed on to you with a rebate of some type made available to the franchisor. You need to read and understand all the obligations in advance of signing a franchise agreement so you are aware of the implications if you let things slip. The agreement will contain a termination mechanism whereby franchisees who do not meet the required standards of performance and conduct may be removed from the system. Such mechanisms are necessary to protect the investment that every franchisee, as well as the franchisor, has made in the system. As with all other parts of the agreement, have an experienced franchise lawyer explain the termination provisions to you. At first glance they may appear harsh but, once considered, you should understand the need for them. By using a specialist, he or she will also know if the provisions are unreasonable and be able to steer you away from a bad investment.

when the time comes to move on When you buy your franchise, it’s important to understand exactly what you are getting into so that you can enjoy the benefits, challenges and rewards that it brings. However, you also need to be aware of the restrictions that apply when the term comes to an end or the time comes to sell. Your ability to sell your business is very important to the overall return you will receive on your investment. In order to maintain the standard of franchisees in the system, the franchisor will need to approve your purchaser; this is a standard clause in most agreements. Any proposed purchaser will go through the same process for franchisor approval as you did. It is also not uncommon for the franchisor to have a right of first refusal to purchase your business. Once again, a franchise-experienced lawyer will be able to look at such clauses and tell you whether they (and any formulae for setting the purchase price) are reasonable. Other issues to be considered on the sale of your business are: Who owns

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76 EDIT Cutting the Jargon 75.indd 2

Franchise New Zealand

Autumn 2016

Year 25 Issue 01

24/03/16 12:43 PM


the goodwill? Who owns the customers? What is the relevance of these things? If these items are specified in the agreement as belonging to the franchisor, ask your lawyer what effect that may have on your ability to sell the business and the possible sale price. You should note that the franchisor’s ability to sell his business – including his rights in respect of your franchise agreement – is unrestricted. Your next franchisor could be anyone – a competitor, a corporate or an overseas-based business. The agreement will also contain a provision entitled something like Action on Termination. This will specify what you will need to do when your term ends or if the franchise agreement is terminated earlier for any other reason. These clauses can be quite lengthy and will include restraints of trade which will prevent you operating a business similar or competitive to the franchise and/ or doing anything else that may affect the franchise for a certain time and within a certain area. Restraints of trade are commonly found in franchise agreements; in fact, if there were not a restraint provision I would be more than a little concerned (although finance broker franchises do not have them as a rule). Whilst restraints of trade are expected and will restrain you from competing there is some debate as to their effectiveness – much depends on the wording, the terms and the intent. Again, it is better to be aware of the implications before buying the franchise, rather than after.

the schedule The agreement should, for easy reading, contain a schedule which will specify all of the things that are unique to your agreement – and a few other things, too. The things a schedule will specify will include: • Commencement date • Term renewals – terms and costs • Payments – franchise fee, royalties, marketing, initial stock charge, initial equipment charge and others where applicable • Initial training • Manager (where not managed by the franchisee) • Restraints • Addresses, phone numbers, fax, email addresses • Trade marks/trade names • Assignment fee There will be further schedules too which are likely to detail: • Initial equipment required • Initial products/stock required • Employee confidentiality covenant • Guarantee (see below) • Lawyer’s and accountant’s certificates. It is likely that you will want to create a company to be the franchisee to take advantage of the various benefits such an entity offers. In that case, the franchisor will want you to personally guarantee the company’s obligations to the franchisor. A guarantee may also be required in respect of payment of suppliers and the various taxes involved in the business. It will also require that you personally are subject to the restraint of trade and confidentiality obligations. Such requirements may be expected in any franchise arrangement. As franchise terms can run for many years, good franchisors will include in their franchise agreements a procedure for resolving any disputes that may arise (this is a requirement for FANZ members). Such a procedure usually involves mediation. Mediation provides a faster and more cost-effective method than litigation of resolving any disputes that may arise during the term of your agreement. However, in certain extreme circumstances – for example, where health and safety or intellectual property ownership is under threat – immediate legal action may be allowed for in the agreement.

take professional advice

Finally, although the above should give you some of the background you need to understand a franchise agreement, it cannot be over-stressed how important it is to take advice from a lawyer who specialises in franchising. Those with experience of acting for both franchisors and franchisees will know which provisions are reasonable, which are unreasonable, what should be expected and what is missing! A about the author specialist will also be much more costeffective than a general commercial David Foster is a specialist franchise lawyer with lawyer. See page 88 of this magazine to Harris Tate of Tauranga. find a suitable lawyer near you. franchise.co.nz – PUTTING PEOPLE IN BUSINESS

EDIT Cutting the Jargon 75.indd 3

77 24/03/16 12:43 PM


Westpac Directo what’s available?

what does it cost?

what do they do?

how many are there?

who do I contact?

number in NZ and globally

Over 275 different franchises

get more information

description

FANZ

industry

investment from

company

page number

A-B franchise and business opportunities

0800 2 Fix It

Home & Building

$30,000

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

6 6

N

M 022 0177 889

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

AA Auto Centre

Auto Services

$150,000

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

29 29

N

P 0-9-966 8800

A Buyer’s Choice Home Inspections

Home & Building

$65,000+

A Buyer’s Choice Home Inspections are the largest home inspection franchise in Canada and are rapidly expanding in USA, South America, Europe and New Zealand. This is your chance to start your new career with your own home-based business.

13 200

N

John Goodrum P 0800 863 636 M 021 945 140 E john.goodrum@abuyerschoice.com W nz.abuyerschoice.com

Accessman

Home & Building

$500,000+

As leading specialists within the hire industry, the Accessman Group has a fleet of 600+ machines throughout the South Island. With over 20 years in the business, the Accessman brand represents quality, service and reliability.

6 6

Y

Lena Harrington P 0-3-341 6333 M 021 361 622 E lena@accessman.co.nz W accessman.co.nz

ActionCOACH

Business & Commercial

$80,000

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

30+ 1200

N

P 0800 228 466

AGATHA Paris

Retail

$300,000

Iconic French fashion jewellery that fuses the fashionable with the affordable.

11 340

N

P 0800 AGATHA

Airify

Home Services

$48,000+

Airify is New Zealand’s leading heat pump cleaning and service company.

3 3

Y

P 0-9-377 7735

AluRestore

Home & Building

$49,500

Mobile aluminium joinery repainting business. Great profit margins, huge potential for growth.

1 1

N

P 0508 737 937

Anchor Franchise

71

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, De Winkel, Country Goodness, Mainland, Kapiti, CalciYum and Eon. National franchise structure operating since 1992 offering exclusive territories.

65 65

Y

Shannon Davidson P 0-9-573 7050 E franchiseopportunities@fonterra.com W anchor.co.nz

Appliance Tagging Services

67

Business & Commercial

$69,000+

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

New 40

N

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

Armstrong Smarter Security

Business & Commercial

$150,000

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

18 18

N

P 0-9-415 0585

At Your Request Franchise Group

Home & Commercial

$14,000

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

200+ 200+

N

P 0800 297 297

Baby On The Move

Retail

$120,000

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

17 17

N

P 0-9-422 2285

Bakers Delight

Food & Beverage

$295,000

With over 30 years of experience, Bakers Delight is a successful franchise business with a growing 36 network of over 700 bakeries spanning across four countries. Bakers Delight has a proven business 700+ formula which provides comprehensive training and on-going support.

Y

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

Bark Busters

Leisure & Education

$20,000 $40,000

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

2 350

N

P 0800 167 710

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

Bedpost

Retail

$50,000

New Zealand’s premium specialist bedding and bedroom furniture retailer seeking motivated owner- 16 operators. 16

Y

P 0-9-278 1010

Retail

$POA

Join New Zealand’s largest independent bedding group. Franchise opportunities available with full training and support. Very competitive fee structure, co-ordinated national advertising program and great supplier partnerships. Looking for motivated and skilled operators with passion and drive.

48 48

N

Cindy Lui M 027 525 1424 E cindy@bedsrus.co.nz

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

Bin Inn Retail Group Co-operative

Retail

$110,000

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

36 36

N

P 0-7-575 6939

Bookends

Education

$30,000

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

18 18

Y

P 0-3-377 9555

Breakers Café & Bar

Food & Beverage

$25,000$200,000

Proven franchise model providing Kiwi fare at affordable prices.

7 7

N

P 0-6-834 0537

Brucies Lawnmowing & Garden Care

Home Services

$49,000

Brucies Lawnmowing and Garden Care has grown dramatically since launching. We have a 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

Y

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

Brumby’s Bakeries

Food & Beverage

$300,000$450,000

Brumby’s has been a part of the New Zealand bakery market for over 15 years and is a refreshing offer from your standard independent or the local supermarket. Thanks to extensive market research our new model is a vast improvement with fresher branding.

8 200+

N

David Bernard P 0-9-973 4821 E david @ccbs.co.nz W brumbys.co.nz

Beds R Us

78 EDIT_DIR_2501.indd 1

14

Westpac Directory of Franchising and Advertiser Index Franchise New Zealand Autumn 2016 Year 25 Issue 01

24/03/16 12:05 PM


ctory of Franchising 78 franchise and business opportunities

87 national master licence opportunities

87 specialist advisors

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

choose by investment

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

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.

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

note

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

FANZ

description

number in NZ and globally

industry

investment from

company

page number

franchise and business opportunities B-C get more information

Budding Ideas

Business & Commercial

$25,000

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

6 6

Y

P 0-9-837 1219

Bugger Café

Food & Beverage

$250,000+

The Bugger concept is different from other cafés. We focus on an uplifting, entertaining food and coffee experience.

1 1

N

M 027 551 0963

BurgerFuel

Food & Beverage

$300,000+

The ultimate experience in gourmet burgers. Seeking hardworking people with great attitude.

30 41

Y

P 0-9-376 6007

Burger Wisconsin

37

Food & Beverage

$200,000$280,000

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

22 22

Y

Nathan Bonney P 0-9-973 4559 M 021 758 299 E franchise@wisconsin.co.nz W burgerwisconsin.co.nz

Caci

57

Health & Beauty

$250,000+

Caci is a highly sought-after, well-recognised household name. Our clinics are a profitable business 34 in a growing industry. Successful Caci franchisees come from all walks of life – from nursing through 34 to corporate executives and beauty therapists wanting to go to the next level.

Y

Fleur Evans P 0-9-320 2610 M 021 369 615 E fleur.evans@fabgroup.co.nz W caci.co.nz

Café Botannix

43

Food & Beverage

$150,000

Contemporary deli cafés serving organic coffee and organic food options in Palmers garden centres. 4 4

N

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

Cafe2U

46

Food & Beverage

$100,000$120,000

Follow your dream of business ownership with the support of the world’s largest mobile coffee van franchise in the fast growth coffee industry. Cafe2U provides opportunities for small business entrepreneurs to deliver great coffee and food to businesses, events and functions.

11 230+

N

Adrian Brown M 027 937 0894 E adrian@ccbs.co.nz W cafe2u.com

CAL Systems

Financial Services

$90,000

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

30 30

N

P 0-4-293 6899

Carl’s Jr.

Food & Beverage

$1,000,000

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

18

N

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

Cartridge World

31

Computer

$100,000$125,000

36 The largest, most experienced cartridge refilling company worldwide. Franchisees operate from retail premises, refilling cartridges, retailing new cartridges and other printer consumables. 1650 Operating worldwide. Easily learned, full training provided. Includes stock, plant, training and licence fee.

N

Geoff Smith P 0-3-446 8600 M 0274 339 829 E geoff.smith@cartridgeworld.co.nz W cartridgeworld.co.nz

Cash Converters

38

Retail

$650,000

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

27 700+

Y

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

Home & Commercial

$62,500

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

3 3

N

P 0-3-365 5111

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

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

City Cake Company

Food & Beverage

$300,000

Boutique bakery selling cakes and desserts. Franchisees must have business experience.

1 1

N

M 022 042 8824

Civic Video

Retail

$150,000

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

56 300

N

P 0-9-523 6322

Cleancorp

Home & Commercial

$25,000

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

105 105

Y

Rose Dunn P 0-9-304 0599 M 021 507 293 E rose@cleancorp.co.nz W cleancorp.co.nz

Clean Planet

Business & Commercial

P.O.A.

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

100 100

Y

Tony Pattison P 0-9-622 0828 M 021 244 1709 E tony.pattison@cleanplanet.co.nz W cleanplanet.co.nz

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

Cobb & Co

Food & Beverage

$200,000

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

8 8

N

M 0204 1007 007

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

ColorGlo International

Auto Services

$47,000

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

4 315

N

P 0-9-524 6214

Colourplus

Retail

$200,000+

A wonderful opportunity for someone with a passion for decorating and design.

29 29

Y

P 0-9-818 9215

Ceiling Master Central Landscape & Garden Supplies

74

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

EDIT_DIR_2501.indd 2

79 24/03/16 12:05 PM


FANZ

69

description

number in NZ and globally

Columbus Coffee

industry

investment from

company

page number

C-G franchise and business opportunities get more information

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 Supreme Franchisee of the year and Food and Beverage Franchise System of the Year 2015/16. Suit owners with passion for coffee, food and the value of customer relationships.

58 58

Y

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

Complete First Aid Supplies

Business & Commercial

$55,000

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

4 4

Y

P 0-9-827 7726

Computer Troubleshooters

Computer

$27,500

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

15 300+

N

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

Contours

Health & Fitness

$95,000

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

10 10

Y

P 0-9-577 4223

Cookie Time

Food & Beverage

$75,000+

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

43 43

N

P 0-3-349 6161

Food & Beverage

$70,000

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

31 31

Y

Robyn Broughton P 0800 804 104 E headoffice@cookright.co.nz W cookright.co.nz

Cooltime

Home & Building

$30,000

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

7 7

Y

M 0275 973 737

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

Corporate Cabs

Business & Commercial

$35,000+

Founded more than 25 years ago, Corporate Cabs is New Zealand’s premier national cab operator, with a 400 strong fleet in Auckland, Wellington, Christchurch, Queenstown and Dunedin. The strength of our respected brand is in the professionalism and dedication of our owner operators.

400 400

N

Jeff Coyle P 0-9-632 0602 M 0274 570 986 E jeff@corporatecabs.co.nz W corporatecabs.co.nz

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.

519 519

Y

Grant McLauchlan P 0800 273 780 E info@crestclean.co.nz W crest.co.nz

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

Cutshop

Home & Building

$800,000

Cutting, edging and drilling of sheet materials. Cut to any shape or size. With increased demand and a proven business concept we are seeking for experienced individuals prepared to employ and manage a production and marketing team to achieve above average return on investment.

2 2

Y

André Hofer P 0-9-527 2856 M 021 879 413 E franchise@cutshop.com W cutshop.com

Home Services

$49,950+

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

28 28

Y

Duane Moul P 0-4-904 3366 M 022 477 6477 E duane.m@theprogroup.co.nz W deckandfencepro.co.nz

$250,000

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

85 1404

N

P 0508 437 262 E info@dominosfranchise.com.au W dominosfranchise.co.nz

Food & Beverage

$250,000$330,000

Donut King is a speciality donut and coffee chain now available in NZ.

3 350

N

P 0061 7 5591 3242

Home & Building

$75,000+

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

10 75

Y

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

Home Services

$30,000

Driving Miss Daisy is New Zealand’s number one reliable companion driving service.

58 65

Y

P 0800 948 432

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.

18 30

Y

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

Business & Commercial

$95,000

World’s largest embroidery, screen printing and promotional products franchise. No experience required but good communication skills essential.

8 350

Y

P 0-9-577 4223

Food & Beverage

$300,000$450,000

Esquires has differentiated itself from other café franchises with a bold new look, an expanded menu to increase value in every sale and a whole new level of support for our franchisees. We can help you bring your café dream to life.

26 100+

N

David Bernard P 0-9-973 4821 E david@ccbs.co.nz W esquirescoffee.co.nz

Cookright Kitchen Services

CrestClean

52

2

Deck & Fence Pro

65

Domino’s

20, Food & 21 Beverage

Donut King Dream Doors

74

Driving Miss Daisy New Zealand Ecomist

22

EmbroidMe Esquires

46

Exceed Franchising

Home & Building

$60,000

Exceed specialise in fixing windows and doors, enhancing and extending the life of joinery.

21 21

Y

P 0800 25 27 36

Expense Reduction Analysts

35

Business & Commercial

$79,500

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

26 700+

N

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

Express Business Group

26

Home Services

$5,950+

Join one of the fastest growing businesses in New Zealand. Don’t pay anywhere from $20,000 to $85,000+ gst when from just $5,950+gst you can own your own home services franchise which includes all initial equipment, training and great back-up and support.

15+ 2500

N

P 0800 397 737 E enquiries@expressbusinessgroup.com.au W expressbusinessgroup.co.nz

Fastway Couriers

8

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

Fifo Capital

Financial Services

$39,500+

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

12 16

Y

P 0-9-447 1999

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

Flip Out New Zealand

Leisure & Education

$500,000

Flip Out is one of the world’s largest and most successful trampoline arenas. The thriving international business is now heading to New Zealand. We are seeking active individuals to join the hugely successful franchise and enjoy the benefits of a proven and effective business model.

New 30

Y

Adam Hetherington M 0417 422 897 E franchise@flipout.co.nz W flipout.co.nz

FMK Keratin Hair Straightening Salon

Health & Beauty

$120,000$150,000

Offering you a fantastic opportunity to own your own FMK salon.

New New

N

P 0-9-636 2227

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

Home Services

$19,900

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

Richard Bright P 0800 956 956 E franchises@freedomdrivers.co.nz W freedomdrivers.co.nz

fridgefreezericebox

Retail

$150,000

Affordable on-trend street-wear in cool, individual, retail outlets. Benefit from our buying power.

2 2

N

P 0-3-348 4768

Fritz’s Wieners

Food & Beverage

$75,000

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

16 17

N

P 0800 437 489

Frontrunner

Retail

$160,000$250,000

Well-established retailer of technical sports and athletic footwear, clothing and accessories.

9 9

N

P 0-3-348 4768

Generation Homes

Home & Building

P.O.A.

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

14 14

N

M 0274 908 399

Giggle TV

Business & Commercial

$175,000$350,000

New Zealand’s largest digital signage network which uses a unique formula to entertain viewers and 12 promote small business. Seeking forward-thinking, self-driven, focused people with pizzazz who 12 want a business with lifestyle and repetitive income.

N

Jazz Kiihfuss P 0-6-355 3480 M 027 603 9991 E info@giggletv.co.nz W giggletvfranchise.co.nz

Gloria Jean’s Coffees

Food & Beverage

$300,000

Gourmet speciality coffee franchise. Seeking people passionate about coffee.

N

P 0061 7 5591 3242

Freedom Companion Driving Services

80 EDIT_DIR_2501.indd 3

64

25 925

Westpac Directory of Franchising and Advertiser Index Franchise New Zealand Autumn 2016 Year 25 Issue 01

24/03/16 12:05 PM


Golden Nuts GrassPro

65

Green Acres Franchise Group

FANZ

description

number in NZ and globally

industry

investment from

company

page number

franchise and business opportunities G-J get more information

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

Home & Building

$19,950

GrassPro are lawn care and artificial grass specialists. Seeking franchisees for all areas of NZ. Customers ready and waiting. Full training, tools, uniforms included and financing options available for the right person.

5 5

Y

Duane Moul P 0-4-904 3366 M 022 477 6477 E duane.m@theprogroup.co.nz W grasspro.co.nz

Home Services

$24,000

Green Acres, the largest and most successful home services group in New Zealand.

550 550

Y

P 0800 692 643

Grime Off Now

34

Home Services

$40,000 $50,000

Grime Off now provide residential and commercial washing and insect control This unique opportunity will enable you to start a business with minimal overheads and quickly grow to build an established business. Easy to use software and support. One of the best value NZ franchises.

2 2

N

Ryan Hamilton M 027 278 8813 E ryan@grimeoff.co.nz W grimeoff.co.nz

GroutPro

65

Home & Building

$49,950+

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

42 75

Y

Duane Moul P 0-4-904 3366 M 022 477 6477 E duane.m@theprogroup.co.nz W deckandfencepro.co.nz

Retail

$250,000$300,000

Decorating specialists retailing paint, wallpaper, accessories, floor coverings, custom-made curtains, 44 and blinds. 44

Y

P 0-9-306 1040

Food & Beverage

$180,000$200,000

New Zealand’s freshest food fix – salads, sandwiches, wraps and smoothies. Seeking outgoing people who take pride in what they do and can relate to customers. Hospitality experience not required, extensive training provided.

15 15

N

Tim Benest P 0-9-378 4158 M 021 755 947 E tim@habitualfix.co.nz W habitualfix.co.nz

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

Harrisons Carpet One

Home & Building

$80,000

Earn a high income and build an extremely saleable business of significant value.

50 1800

Y

M 021 283 8040

Harrisons Curtains & Blinds

Home & Building

$60,000

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

3 3

Y

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

Harvey World Travel

Retail

$100,000

High profile award-winning retail travel agency.

54 350+

N

P 0-9-307 1860

Home Services

$13,000

Specialist heat pump cleaning and sanitising system. No experience required, full training and support provided. Offered for a limited time at a discounted price, including a $6,000 start-up kit. If you want value for money this is it.

2 2

N

Peter Wyatt P 0-3-377 5441 E info@hshp.co.nz W hshp.co.nz

Healthy Air

Home Services

$30,000+

Healthy Air is the recognised leader in the heat pump service, cleaning and sanitising industry.

New New

N

P 0-3-352 6986

Hell

Food & Beverage

$200,000

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

64 70

N

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

helloworld

Retail

$100,000

High profile award-winning retail travel agency. Formerly Harvey World Travel.

54 350+

N

P 0-9-307 1860

Home & Building

$75,000

We are looking for licensed qualified builders who are ready to take their business to the next level. Establishing a Highmark Homes in your local area provides you with access to our proven systems, central office business support and our team of designers and quantity surveyors.

6 6

N

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

Hire-A-Hubby

Home & Building

$32,000

New Zealand’s first choice for professional home maintenance, building and renovation services.

60 60

Y

P 0-9-845 2640

Hog’s Breath Café

Food & Beverage

$750,000

Opportunity to own and operate a licensed family restaurant with a very successful brand.

2 82

Y

P 0800 HOGSTER

HRV Ventilation

Home & Building

$350,000

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

20 23

N

P 0800 HRV 123

Humitech

Business & Commercial

$90,825

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

12 12

N

P 0800 486 434

Illy EspressoBar

Food & Beverage

$180,000

Illy EspressoBar is the latest in exciting café opportunities. Full training provided.

2 2

N

M 021 707 758

Insultech Group

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

InXpress

Business & Commercial

$29,500

Global courier and freight sales consulting franchise. As an authorised global sales partner for DHL we offer competitive rates to SME markets for international and domestic freight. Start building your future with the right company and business model: Contact us now for more information.

200 2

N

Graeme Rees P 0-3-322 5634 M 021 364 616 E Info.nz@inxpress.com W inxpress.com/nz/

Issimo

Retail

$150,000

Issimo is the fashion shoe franchise where exclusive doesn’t mean expensive. A destination store.

2 2

N

P 0-3-348 4768

Jamaica Blue

Food & Beverage

$370,000

Grow from strength to strength with your very own Jamaica Blue franchise.

6 134

Y

P 0-9-377 1901

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

Jellybeans Music

Leisure & Education

$25,000

Jellybeans Music provides curriculum based music programmes for schools.

New 30+

Y

P 0800 754 372

Jesters Pies

Food & Beverage

$220,000

Award-winning gourmet pie franchise. Easy business model to operate.

18 50+

Y

P 0-9-442 4680

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

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

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

Home Services

$12,500+

Becoming your own boss is easier than you might think. For a short time we’re offering the chance 2 to become part of the nationally recognised Jim’s brand for only $12,500 +gst plus equipment costs. 2 13 Auckland territories available. Includes full business and systems training.

N

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

Jumping Beans International

Leisure & Education

$40,000 $45,000

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

6 7

N

P 0-9-475 9204

Just Cabins

Home & Building

$185,000

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

46 46

Y

Fenton Peterken M 021 716 776 E fenton@justcabins.co.nz W justcabins.co.nz

Health & Beauty

$100,000$200,000

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

24 174

N

Scott Wallace M 027 277 7071 E scott@justcuts.co.nz W justcuts.co.nz

Guthrie Bowron Habitual Fix

Health Smart Heat Pumps

Highmark Homes

Jim’s Trees & Stump Removal – Auckland

Just Cuts

18

31

68

49

70

Getting started? If you’re just starting in franchising, talk to someone who isn’t. Westpac New Zealand Limited

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

EDIT_DIR_2501.indd 4

81 24/03/16 12:05 PM


Kelly Sports

71

FANZ

description

number in NZ and globally

industry

investment from

company

page number

K-N franchise and business opportunities get more information

Leisure & Education

$25,000

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

33 65

N

Paul Jamieson P 0-9-427 9377 M 021 409 241 E paul@kellysports.co.nz W kellysports.co.nz

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

Kitchen Studio

Home & Building

$150,000+

Kitchen Studio is New Zealand’s best-known kitchen design and installation specialist.

16 16

Y

P 0-9-815 3000

KiwiHost

Business & Commercial

$50,000

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

18 18

N

P 0-3-343 5007

Kiwikrane

Leisure

$50,000+

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

51 163

Y

M 021 410 009

KiwiYo

Food & Beverage

$150,000$600,000

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

3 5

N

M 021 339 644

Kwik Kerb

Home & Building

P.O.A.

Market leaders in domestic and commercial continuous concrete kerbing.

42 800

N

P 0800 865 945

Landmark Homes

Home & Building

$50,000

A growing building franchise with a well-established brand offering stylish designs.

14 14

Y

P 0-7-578 2295

Laser Electrical

Home & Building

$30,000+

Multi award winning Laser Group assists electrical contracting companies become more successful. 56 131

Y

P 0-9-820 3800

Laser Plumbing

Home & Building

$30,000+

Multi award winning Laser Group assists plumbing contracting companies become more successful. 36 69

Y

P 0-9-820 3800

Latitude Homes

Home & Building

$50,000$150,000

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

7 7

N

P 0-9-238 7661

LawnFix

Home Services

$85,000

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

2 2

N

P 0-7-548 0008

Leadership Management

Business & Commercial

$75,000

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

6 44+

N

P 0800 333 270

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

Lime Juice Bar

Food & Beverage

$25,000

Mobile juice and smoothie bar. Easy to operate business in healthy food sector.

1 1

N

M 027 222 7487

Liquorland

Retail

$250,000+

Specialist retailer of liquor and associated products. A member of Fly Buys nationally.

85 85

N

P 0-9-621 0357

Little Dribblers

Leisure & Education

$12,500

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

7 7

N

P 0-4-586 6006

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

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

Y

P 0-9-530 8090

Lollipop’s Playland & Café

Leisure

$400,000$450,000

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

3 30

N

P 0061 3 9579 7493

Lone Star

Food & Beverage

$600,000+

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

26 26

N

P 0-3-374 3208

Loven

Home Services

$25,000

Eco-friendly oven, BBQ and range hood cleaning. Full training and ongoing support.

3 3

N

P 0-9-294 9319

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

MathZwise

Leisure & Education

$32,000+

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

8 8

Y

Kathy Redwood P 0800 120 965 E kathy@mathzwise.co.nz W mathzwise.co.nz

McDonald’s

Food & Beverage

$750,000+

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

165

N

P 0-9-539 4300

Home Services

$13,000

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

35 35

Y

P 0-9-442 2004

Food & Beverage

$375,000+

Mexicali Fresh has led the Mexican evolution in NZ since 2005. With giant American-style burritos 13 and Mexican beer in a colourful, casual atmosphere. We are recruiting energetic, enthusiastic 13 franchisees with a passion for great food and excellent customer service for our turnkey restaurants.

Y

Cindy Buell P 0800 EAT MEX M 021 750 070 E info@mexicalifresh.co.nz W mexicalifresh.co.nz

Midas Car Care

Auto Services

P.O.A.

New Zealand’s premier specialist automotive servicing franchise.

26 3000

N

P 0-9-415 0234

Mike Pero Mortgages

Financial Services

$20,000

Leading mortgage broking brand committed to future growth.

42 42

Y

P 0800 500 123

Mini Tankers

Business & Commercial

$75,000 $150,000

On-site diesel refuelling service.

19 124

Y

P 0-9-622 2671

Mobile Car Valet

Auto Services

$25,000

Mobile car valet at your place or ours covering all your valet needs. Very high potential income, very 2 low overheads perfectly suited for two people working together. Enjoy a great lifestyle with financial 2 freedom and flexible hours.

N

Pete Jordan M 0274 973 955 E info@mobilecarvalet.co.nz W mobilecarvalet.co.nz

Mobile Hand Car & Marine Grooming

Auto Services

$10,000 $39,000

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

N

P 0800 803 737

Mr Green Auckland

Home Services

$20,000+

Commercial Cleaning has new franchise opportunities in the Auckland area.

22 22

N

P 0-9-414 6949

Mr Plumber

Home & Building

$35,000

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

10 10

N

P 0800 677 586

Mr Rental

Home & Building

$600,000+

Mr Rental can train passionate, enthusiastic, people with the drive to be successful.

17 89

Y

P 0-9-950 4145

Home & Building

$34,999+

Mr Sandless, the world’s number 1 floor re-finisher, offer new franchisees with excellent people skills and communication full training, fixed royalties and great margins. Plus exclusive offer - get Dr DecknFence franchise free when you purchase a Mr Sandless territory. T&Cs apply.

2 300+

N

Lianne Walker P 0800 744 693 M 027 652 8908 E nz@mrsandless.co.nz W mrsandlessfranchise.co.nz

Food & Beverage

$120,000

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

50 50

N

P 021 333 333

$49,000

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

Adam Parore M 021 781 250 E adam@sba.co.nz W mrwoosushi.co.nz

Meticulous Home Services Mexicali Fresh

Mr Sandless NZ

Mr Whippy Mr Woo Sushi

60

59

25, Food & 52 Beverage

17 17

Muffin Break

Food & Beverage

$340,000

Proven systems, our world class training and commitment to field support.

39 284

Y

P 0-9-377 1901

Muzz Buzz

Food & Beverage

$270,000

Drive thru-outlet serving quick, convenient, sensational coffee. We have a proven business model.

2 56

N

P 0-9-359 9068

Navigation Homes

Home & Building

$75,000 $175,000

Navigation Homes are offering an opportunity to own and drive a profitable house building franchise. 12 12

N

P 0-9-298 5972

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

New Zealand Home Loans

Financial Services

P.O.A.

Seeking confident self-starters with financial services expertise and excellent communication skills.

80 80

N

P 0-7-839 0998

82 EDIT_DIR_2501.indd 5

Westpac Directory of Franchising and Advertiser Index Franchise New Zealand Autumn 2016 Year 25 Issue 01

24/03/16 12:05 PM


FANZ

description

number in NZ and globally

industry

investment from

company

page number

franchise and business opportunities N-Q get more information

New Zealand Letting Agents

Business & Commercial

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

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

Auto Services

P.O.A.

The Novus auto glass opportunity offers a proven business model with a nationally recognised brand. Seeking expressions of interest from existing auto glass companies as well as individuals wishing to purchase an existing Novus location. Highest quality products. Full training and ongoing support.

58 2100

N

Mike James P 0-3-366 0870 M 021 228 7395 E opportunities@novus.co.nz W novus.co.nz

NumberWorks’n Words

Education

$62,000

Specialist maths and English tuition company, boosting confidence and academic results.

27 70

Y

P 0-9-522 0800

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

Home & Building

$19,900$69,000

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

1 1

N

Jeff Twigge P 0-6-353 5990 M 027 222 4328 E inspector@nzhousesurveys.co.nz W nzhousesurveys.co.nz/franchise

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

Oil Changers

Auto Services

$150,000$250,000

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

11 29

N

P 0-3-343 6080

Oporto New Zealand

Food & Beverage

$350,000

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

11 160

Y

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

Retail

$210,000

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

13 120

Y

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

Food & Beverage

$400,000$500,000

Paleo Café is a revolutionary health food café and store. High energy, a love for people and a sense of fun are all essential to running a successful business. Contact us about this exciting new business opportunity. Check out our Facebook page and website.

1 12

N

Gary Mellsop M 027 634 7500 E gary@hosea.co.nz W paleo-café.co.nz

Novus

NZ House Surveys

Pack & Send New Zealand

9

15

32

Paleo Café

$12,500

Property management services with full training and support for your business success.

6 6

N

P 0800 103 203

Palmers

43

Retail

$350,000

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

18 18

N

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

Palmers Planet

43

Retail

$1m+

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

3 3

N

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

Paper Plus

Retail

$400,000

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

100 100

Y

P 0-9-261 0871

Para Rubber

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

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

Business & Commercial

$30,000

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

140+ 140+

Y

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

Paramount Services

11

Pegasus Rental Cars

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

Pit Stop

Auto Services

$100,000+

New Zealand’s leading automotive repair franchise. Specialising in vehicle servicing, brakes, exhaust, suspension and tyres.

49 49

Y

P 0-9-634 3666

Pita Pit

Food & Beverage

$300,000$500,000

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

75 534

N

M 021 669 290

Pizza Hut

Food & Beverage

P.O.A.

Established pizza chain with occasional resale opportunities available.

84

N

P 0-9-525 8700

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

Poolwerx Corporation

Home Services

$88,800+

Pool and spa maintenance. A strong business model available to the NZ franchise market.

2 250+

Y

P 0800 888 031

PostShop Kiwibank Prep & Paint Pro

65

Printing.com

Retail

P.O.A.

One of NZ’s largest retail networks.

300+

Y

P 0-9-336 8284

Home & Building

$39,950+

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

5 5

Y

Duane Moul P 0-4-904 3366 M 022 477 6477 E duane.m@theprogroup.co.nz W prepandpaintpro.co.nz

Business & Commercial

$25,000+

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

40 300

Y

Dave Bell P 0-4-232-7653 M 027 436 5545 E partnerships@printing.com W printing.com

Property InDepth

Home & Building

$45,000

Residential valuation franchise, customised technology, fantastic business systems, awesome team, 10 nationwide aspirations. 10

N

M 021 477 673

Propertyscouts Property Management

Business & Commercial

$22,000

Become part of the nationwide Propertyscouts property management team. This opportunity provides great returns in a growing industry, combined with unparalleled business support including onsite training, a comprehensive operations manual and ongoing coaching. Enjoy a flexible lifestyle working for yourself but not by yourself.

5 5

N

Jessica Down P 0-3-477 9228 M 027 222 7209 E info@propertyscouts.co.nz W propertyscouts.co.nz

Provender NZ

Food & Beverage

$125,000$240,000

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

80+ 80+

N

P 0800 661 663

Provista Balustrade Systems

Home & Building

$25,000

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

18 18

N

M 0275 961 264

Pukeko Rental Managers

Business & Commercial

$12,500

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

7 7

N

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

Quest Serviced Apartments

Business & Commercial

$150,000$600,000

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

33 150

Y

P 0-9-366 9680

Business & Commercial

$140,000 +

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

27 27

Y

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

Quinovic Property Management

76

Experienced hand? We’ve had franchise specialists longer than most NZ franchisees have been in business. Westpac New Zealand Limited

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

EDIT_DIR_2501.indd 6

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FANZ

description

number in NZ and globally

industry

investment from

company

page number

R-S franchise and business opportunities get more information

Rack n Roll Ribs

Food & Beverage

$250,000

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

1 1

N

P 0-9-555 1492

Rainaway Spouting on the Spot

Home & Building

$45,000

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

10 10

Y

P 0-9-265 2147

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

Home & Building

$45,000+

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

5 5

Y

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

Realsure The House Inspectors

Home & Building

$65,000

Respected, strongly branded business providing trusted property reports for buyers and sellers.

5 5

N

P 0508 732 578

realtyRETURNS The Property Improvers

Home & Building

$55,000+

Renovation agency specialising in arranging and managing residential renovation projects.

5 5

N

P 0-9-213 7993

Business & Commercial

$150,000

30 Refresh is New Zealand’s leading renovation business. Refresh is primarily a sales and marketing oriented franchise. We’re looking for business oriented people to join Refresh as franchisees, not 37 builders. If you’re thinking about your next career move or business opportunity, you should consider Refresh.

Y

Jon Bridge P 0-9-303 0670 M 021 454 502 E jon.bridge@refresh.co.nz W refresh.co.nz

RE/MAX New Zealand

Other

$20,000

Global real estate network.

20 6500

N

P 0-9-309 8478

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 0-7-574 1490

Rented.org.nz

Business & Commercial

$22,500

‘Any time, any place, 100% property management’ systemised property management licensed model.

7 7

N

P 0800 562 3733

Resin Weld

Auto Services

$10,000

Resin Weld offers a range of services in auto glazing which include windscreen repair and replacement. The franchise is 100% New Zealand owned supported by imported US technology under an exclusive distributor agreement. Good financial rewards are on offer with training and marketing support.

4 4

N

Peter Callendar P 0800 858 888 M 021 533 761 E resinweld@vodafone.co.nz W resinweld.co.nz

Robert Harris Coffee Roasters

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

Rod De Lisle P 0800 426 333 M 0274 518 435 E rodd@robertharriscafe.co.nz W robertharriscafe.co.nz

Health & Beauty

$100,000+

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

51+ 51+

Y

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

Room2rent

Home & Building

$200,000$250,000

Mobile cabin rental business which uses a unique chassis system to deliver and level cabins.

2 2

N

P 0508 222 464

Rugbytots NZ

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

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

SafeTSupplies

Business & Commercial

$120,000

Custom-fitted safety supplies retail outlet on wheels.

New New

N

P 0-9-525 2767

Seal A Fridge

Home Services

$30,000 $50,000

Seal-A-Fridge has been operating in Australia and New Zealand since 1988, and is the market leader in the replacement of commercial and domestic refrigeration seals. Refrigeration experience is not necessary, just a can-do attitude and a determination to build a successful business.

4 31

N

Craig Foxwell P 0061 4 0847 1950 E info@sealafridge.com.au W sealafridge.co.nz

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

Sew Know How

Leisure & Education

$14,000

Sewing school offering quality teaching of all aspects of home sewing to people aged 8 years to adults. Operate from your own home. Must be a confident sewer.

2 2

N

Jane Gilder M 0275 346 163 E jane@sewknowhow.co.nz W sewknowhow.co.nz

Shaky Isles Coffee Co

Food & Beverage

$150,000

Shaky Isles Coffee Co. is a versatile café brand seeking savvy multi-site licensees.

4 4

N

P 0-9-529 9177

Shed Boss

Home & Building

$95,000+

ShedBoss are suppliers of high quality steel frame buildings.

12 37

N

P 0-7-579 1525

Shingle Inn Café

Food & Beverage

$290,000 $450,000

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

New 40

N

P 0061 7 3399 3000

Shoe Clinic

Retail

$200,000$250,000

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

12 12

N

P 0-4-499 4495

Food & Beverage

$120,000$280,000

Network of premium cafés specialising in gourmet coffee and freshly prepared food.

32 32

N

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

Signature Homes

Home & Building

$500,000

New Zealand’s leading branded custom home builders, established 1983.

19 19

Y

P 0-9-415 2468

SimpliFood

Retail

$150,000

Strongly-branded food retail store franchise. Sells quality food ingredients and specialised products.

6 6

N

M 021 997 722

Simply Squeezed

Food & Beverage

$80,000

Sell and distribute NZ’s favourite range of chilled juice and beverage products.

40+ 40+

Y

M 021 747 643

Rapid Lawn

Refresh Renovations

Rodney Wayne

Sierra Boutique Café

4

10

90

43

sKids

77

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

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

Small Business Accounting

4, 73

Business & Commercial

$42,000

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

48 48

Y

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

Smallprint NZ

Other

$40,000

Work from home business making jewellery that captures loved ones’ hand and foot prints.

3 140+

N

P 0061 1 800 762 557

Smith’s Sports Shoes

Retail

$200,000

Smith’s Sports Shoes’ biggest strength is the relationship between franchisor, franchisee and suppliers.

15 15

Y

M 021 733 981

Snap-on Tools

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

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

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

Speedy Signs

Business & Commercial

$95,000

New Zealand’s and the world’s largest signs and graphics franchise. No previous experience required. 24 850

Y

P 0-9-577 4223

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

Food & Beverage

$25,000$50,000

We get invited to all the best parties and due to huge demand – you’re invited too! Spitroast.com; New Zealand’s iconic catering business is looking for franchisees to join our growing group, with existing franchisees already located in Christchurch, Dunedin, Mid Canterbury, and Auckland.

4 4

N

Jason Olliver M 027 442 4140 E jason@spitroast.com W spitroast.com/franchises

Spitroast.com

84 EDIT_DIR_2501.indd 7

22

Westpac Directory of Franchising and Advertiser Index Franchise New Zealand Autumn 2016 Year 25 Issue 01

24/03/16 12:05 PM


54

Retail

$200,000

Stihl Shop is a nationwide network of independent, locally owned specialist outdoor power equipment retailers. Every Stihl Shop is operated by friendly approachable people who are passionate about outdoor power equipment. Full training and on-going support. Sites with real growth potential available across NZ.

64 64

N

Francis Scordino P 0800 864 264 M 021 543 582 E careers@stihlshop.co.nz W careers.stihlshop.co.nz

Stirling Sports

64

Retail

$340,000

We play to win by delivering world-class retail experiences, inspired by sport, executed with style. Stirling Sports will provide all the training and support to build and sustain your business. Opportunities available throughout New Zealand. Retail experience is an advantage but not essential.

44 44

Y

Geoff Young M 022 417 3127 E geoff.young@stirlingsports.co.nz W stirlingsports.co.nz

Retail

$100,000

The preferred storage specialists in New Zealand, providing storage solutions to customers.

20 20

N

P 0-9-271 1025

12, Food & 13 Beverage

$145,000

Every day thousands of coffee lovers buy a Streetwise coffee. Our designer coffee outlets have become symbols of coffee perfection. We’re seeking people nationwide who love the thought of selling fantastic coffees to appreciative customers. Site selection assistance, training and support is given.

18 18

Y

Donna Ferrall M 027 552 2055 E donna@streetwisecoffee.co.nz W streetwisecoffee.co.nz

Subway

Food & Beverage

$250,000

The world’s largest quick service submarine sandwich and salad franchise. Opportunities for new and existing restaurants available.

266 46K+

N

W subway.co.nz/about-us/own-a-franchise

SumoSalad

Food & Beverage

$450,000

The healthy fast food alternative. Join Australia’s fastest growing franchise.

2 80+

N

P 0061 4 0105 5437

Sunbright Lamp Distributors

Home & Building

$26,000

Sunbright provides a mobile lighting maintenance and installation service.

13 13

N

P 0-9-478 9824

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

Super Shuttle

Business & Commercial

$25,000$78,000

Super Shuttle is New Zealand’s No. 1 nationwide airport passenger transport system.

120 120

N

P 0-9-522 5710

Superbuild

Home & Building

$50,000

Superbuild is one of New Zealand’s largest suppliers of construction and coating systems.

9 9

N

P 0800 GO 4 SUPER

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

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

Take Note

Retail

$300,000

Over 60 stores throughout New Zealand, all of which are locally owned and operated.

20+ 20+

N

P 0-9-261 0871

Tall Poppy Real Estate

Business & Commercial

$100,000

With strong business focus you’ll be capable of high quality recruitment.

11 11

N

M 027 4432 897

Tasman Insulation

Home & Building

$30,000

Installation of PinkBatts into new and existing residential properties.

19 19

Y

P 0-9-525 9563

The 2n’5 Franchise

Retail

$70,000

A proven retail concept that has successfully run since 1994.

17 17

N

P 0-6-757 2702

The Alternative Board

Business & Commercial

$83,000

Seeking franchisees to facilitate peer board meetings and offer executive coaching

7 150+

Y

P 0-9-446 0963

The Athlete’s Foot

Retail

$250,000

World’s leading sports footwear retailer. Exclusive fitprint technology and proven training.

9 600+

N

P 0-6-875 1479

Food & Beverage

$200,000+

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.

17 200

N

David Reid P 0-9-475 9634 M 021 625 555 E davidr@thecheesecakeshop.co.nz W thecheesecakeshop.co.nz

Retail

$60,000

Providing high quality, luxurious Christmas decorations. A profitable seasonable business.

11 11

N

P 0-7-839 6209

58 350+

Y

Brad Jacobs P 0-9-304 0008 M 027 526 3333 E b.jacobs@thecoffeeclub.co.nz W thecoffeeclub.co.nz

Storage Box Streetwise Coffee

The Cheesecake Shop

91

The Christmas Heirloom Company

description

FANZ

Stihl Shop

number in NZ and globally

industry

company

investment from

page number

franchise and business opportunities S-T get more information

40

Food & Beverage

$300,000$450,000

One of NZ’s fastest growing café and restaurant franchises, with a comprehensive menu and relaxed dining experience. Proven track record with further expansion planned. Take advantage of a proven track record, great training and ongoing support. Ideal if you are passionate about people and building customer loyalty.

The Coffee Guy

46

Food & Beverage

$98,500

The Coffee Guy is New Zealand’s largest mobile coffee franchise. One of the secrets of our success 48 is ensuring our franchisees have the support that they need to operate a successful franchise. We 48 have new and existing franchise territories available nationwide. Join our team today.

N

Ruby Gibson P 0-9-973 4819 E ruby@ccbs.co.nz W thecoffeeguy.co.nz

The Interface Financial Group

Financial Services

$39,000+

The Interface Financial Group is a world-class franchising operation which provides a debtor 9 financing service to the SME business market. Interface has been operating worldwide for over 40 150+ years and in NZ for 10 years. Full training and support provided. $100,000 minimum working capital.

N

Gary Wong P 0-9-302 7704 M 021 801 710 E ifgnz@interfacefinancial.co.nz W interfacefinancial.co.nz

The NZ Manuka Egg Company

Food & Beverage

P.O.A

A taste sensation - manuka smoked bacon and egg franchise business opportunity.

3 3

N

P 0-3-485 9660

Auto Services

$44,500

Mobile alloy wheel repair service providing an affordable and convenient solution to the problem of repairing kerb-damaged wheels. No previous experience required. The power franchising has is in gaining a competitive edge through the sharing of knowledge and resources. We have that edge.

7 7

Y

Alan Thomas P 0-4-477 0284 M 027 253 7311 E wheelmagician@xtra.co.nz W wheelmagician.co.nz

The Wheel Magician

23

Reach the buyers Only Franchise New Zealand combines print, digital and on-line media to reach potential franchisees throughout New Zealand – and beyond.

The help you need when • • • •

Contact us now to promote your opportunity or service. Eve Brown Misty Boswell

NZ’s best-read franchise media

0-9-424 8236

Simon Lord Vicky Bennett

sales@franchise.co.nz

buying a franchise franchising a business improving systems importing or exporting your franchise system

More than 22 years’ industry experience. Franchisee and Franchise Management; I’ve worked both sides.

Find more info franchise.co.nz

The Coffee Club

ian@franchise101.co.nz 027 433 4513

Like shortcuts?

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

EDIT_DIR_2501.indd 8

Westpac New Zealand Limited

85 24/03/16 12:05 PM


Theobroma Cafés, Lounges and Bars

description

FANZ

industry

number in NZ and globally

company

investment from

page number

T-Z franchise and business opportunities get more information

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

N

M 027 509 3385 E thextonhq@thextonarmstrong.co.nz W thextonarmstrong.com.au

Y

Martin Smith P 0800 759 363 M 021 721 430 E info@touchupguys.co.nz W touchupguysfranchise.co.nz

Thexton Armstrong

28

Business & Commercial

$25,000$50,000

30 This is a long-term extremely profitable opportunity where you are fully trained and supported to grow your own successful consulting business. Seeking business-consulting franchisees. Would suit 80 CEOs, CFOs, professionals, directors, ex-corporates ex-business owners and others wanting more lucrative, fulfilling and less stressful career alternatives.

Touch Up Guys

31

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.

Toyhire

Retail

$5,000+

Toyhire rents baby equipment, slides, climbers, playhouses, bouncy castles and birthday party gear. 3 3

N

P 0-9-573 6124

Toyworld

Retail

$200,000$500,000

Join New Zealand’s largest independent toy retailing group.

29 180

N

M 021 390 954

Ultra-Scan

Agriculture

$80,000+

Ultra-Sonic animal pregnancy scanning. Mobile rural lifestyle working with animals.

19 19

Y

P 0508 858 727

United Video

Retail

$250,000

NZ’s leading video rental retailer. National coverage. New and existing franchises available.

78 78

N

P 0-7-853 7035

Urban Turban

Food & Beverage

$250,000

It is never too late to transform your passion for Indian cuisine into a profitable business.

1 1

N

P 0-9-538 0006

Valentines Restaurants 43

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

Venluree

Home & Building

$40,000

A unique opportunity to be part of an iconic New Zealand company and build a real business of value.

16 16

N

P 0-9-913 4185

N

Robin Howison P 0800 VERSATILE. M 021 519 569 E franchise@versatile.co.nz W versatile.co.nz

26 200

Versatile Homes and Buildings

56

Home & Building

P.O.A.

Versatile Homes and Buildings provides you with all the benefits of owning your own business, with 35 the full support and resources of a nationwide organisation. We are looking for high calibre franchise 35 owners that are capable of significant future growth as the business expands.

V.I.P. Home Services

29

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

John & Estelle Logan P 0800 847 496 E estelle@viphomeservices.co.nz W viphomeservices.co.nz

Warmup New Zealand

Home & Building

$20,000

Warmup has become the heating product of choice for the majority of property and construction professionals.

15 30

N

P 0-9-820.3850

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

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

Window Cleaning Plus

Home Services

$14,950+

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

New New

N

P 0800 000 309

Whats Up House Inspections

Home & Building

$69,995

New Zealand’s leading pre-purchase home inspection company providing reports you can rely on. Work from home with the latest systems and full support. Excellent opportunities available throughout New Zealand. This is an amazing opportunity for builders wanting a new challenge with excellent returns.

6 6

N

Karl Papa M 021 952 397 E karl@wuhi.co.nz W wuhi.co.nz

Wholly Bagels & Pizza

Food & Beverage

$250,000$400,000

Turn-key opportunities available nationwide with this iconic bagel and pizza franchise.

6 6

Y

M 021 272 2422

Window Dressings

Home & Building

$25,000

We offer quality window treatments in the comfort of the client’s home.

1 1

N

M 021 345 109

Window Treatments

Home & Building

$30,000

Window Treatments manufacture and supply blinds, awnings, shutters, insect screens as well as provide onsite blind cleaning and repair services to some regions. Franchises available on the West Coast of the South Island, New Plymouth, Gisborne and Hawkes Bay.

21 21

N

Graeme Rose P 0-3-343 1876 M 021 338 031 E Graeme.rose@window-treatments.co.nz W window-treatments.co.nz

Woolgro

9

Home & Building

$25,000 $50,000

Woolgro is a unique and proven system to establish premium lawns using our innovative preseeded lawn mats. You don’t have to have a landscaping background - just be customer-focused and enjoy working outside building a business based on excellent service.

3 3

N

Geoff Luke P 0-9-570 1985 M 021 957 600 E geoff.luke@woolgro.co.nz W woolgro.co.nz

Xpresso Delight

58

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

Yard Art & Moulds International

Home & Building

$6,000 $40,000

Established garden ornament manufacturers and distributors of quality moulds for concrete.

15+ 20+

N

P 0-9-431 3176

Z Energy

Retail

$350,000

Z has over 200 retail service stations offering customers fantastic service, world class fuels and great convenience stores. Our self-employed retailers operate clusters of 7-16 Z service stations. We are now looking for a new retailer to join us in the Wellington region.

213 213

N

Julie Fitzgerald P 0800 474 355 E zretailer@z.co.nz W z.co.nz/retailer

Zexx NZ

Food & Beverage

$25,000 $50,000

Zexx NZ offers a range of better-for-you fruit juice slushy and smoothie products that meet the ‘Fuelled 4 Life’ criteria. This represents an exciting opportunity for someone who is motivated and looking to capitalise on an existing business success.

12 16

N

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

Home & Building

$50,000

Zones is New Zealand’s only franchise specialising in design and build landscaping services. We are looking for people with experience in managing people, processes and sales. Franchises available in all cities and towns in New Zealand.

3 3

N

Matt Steele P 0-9-303 0670 M 021 118 5810 E matt.steele@refresh.co.nz W zonesfranchiseopportunities.co.nz

Find more info franchise.co.nz

Zones Landscaping Specialists

72

For Franchise Advice in the Wellington region

BDS Call us first! -

Due diligence Benchmarking Structuring advice Loan applications Trust administration

-

Budgets and cashflow Coaching and mentoring Accounting & taxation Company formations Monthly reporting & GST

BDS Chartered Accountants Limited Call (09) 366 1822 | 021 882 430 info@bdsaccountants.co.nz | www.bdsaccountants.co.nz

Turning Vision into Value

86 EDIT_DIR_2501.indd 9

Have a chat with our legal experts:

Claire Byrne Dave Robinson

04 916 7483 04 916 6307

www.gibsonsheat.com

www.thefranchiselawyer.co.nz sarah@thefranchiselawyer.co.nz 027 564 9942

Westpac Directory of Franchising and Advertiser Index Franchise New Zealand Autumn 2016 Year 25 Issue 01

24/03/16 12:05 PM


national master licence opportunities get more information

industry

description

number globally

company

A selection of master licence opportunities from our website – find more at www.franchise.co.nz

investment required

Cambridge Weight Plan See page 39

Barbara Harris P 0-9-303 5018 E Barbara.Harris@fco.gov.uk

Fitness, Health & Beauty

Globally successful British direct sales company seeks entrepreneurial partner to represent and deliver high quality brand in New Zealand. Growth market, exclusivity available and flexible business model. Over 30 years’ trading. Existing partners in 28 countries. Holder of The Queen’s Award in Enterprise: International Trade.

28

P.O.A

Coolertech

Brendon Hosken M 021 222 4040 E brendon@coolertech.co.nz W coolertech.co.nz

Business & Commercial

Ideal master franchise opportunity, or run it as an independent operator business. Complete business package ready for roll out. Refrigeration filter distribution – both commercial and domestic products. Huge potential market and easily scale-able for growth. Extremely profitable recurring revenue business model.

1

NZ$ 68,000

Get Threaded

Liz See P 0061 4 1300 4127 E franchise@getthreaded.com.au W 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 brow & beauty bars and salons, offering threading and other beauty services.

30+

AU$ 100,000+

Magnetite

Ian Harkin P 0061 2 9565 4070 E ian.harkin@magnetite.com.au W magnetite.com.au

Home & Building

Magnetite retrofit double glazing - your window of opportunity. Do you “get” double glazing? Are you “handson?” Can you motivate a team? Do you want variety, including marketing, installation & customer service? Our mantra is assess, design and deliver comfort. We aim to provide trusted advice. If you connect with that, contact us about a master licence today.

12

AU$ 150,000

Ready Steady Go Kids

Stuart Derbyshire P 0061 1 300 766 892 E franchise@readysteadygokids. com.au W readysteadygokids.com.au

Leisure & Education

Australia’s leading multi-sport and exercise programme for pre-school aged children (2.5 – 6 years). More than 200+ 200 locations in Australia, Singapore, UK, India, Indonesia and Vietnam. 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.

AU$ 55,000

The Source Bulk Foods

Jurgen Kernbach P 0061 411 422 228 E jurgen@thesourcebulkfoods. com.au

Retail

Providing an old-fashioned personal service in a fun, no waste, shopping experience. Huge range of bulk whole 22+ foods and health foods. Seeking a national franchisor for New Zealand who is passionate about customer experience, The Source brand and principles. You should be a great communicator with well-developed management and leadership skills, energy, focus and persistent commitment to hard work.

NZ$ 800,000

service

description

Location

FANZ

company

page number

specialist advisors get more information

ACCOUNTANTS BDS Chartered Accountants

86

Taxation specialists. Accounting and taxation services, business advisory, business and strategic planning, cashflows, budgeting, loan application support, due diligence, feasibility studies, coaching, structuring advice, company formations, trust administration, rentals and property development advice, Xero Platinum Partners. Partner with us to ensure your business success.

National

N

Peter Taylor P 0-9-366 1822 M 021 882 430 E petert@taxmaster.co.nz W bdsaccountants.co.nz

Blackler Smith & Co

Blackler Smith & Co is a relationship-based chartered accounting firm. For years, Ben Blackler has assisted franchisors and franchisees with structures, business advice and annual tax accounting. Ben can help you buy a business, set it up correctly, run it effectively and protect your investment.

Greater Wellington

N

Ben Blackler P 0-4-555 9090 E ben@bsco.co.nz W bsco.co.nz

Crowe Horwath

Crowe Horwath (previously WHK) provides specialist accounting and business advisory services to the New Zealand National franchise industry. Your one-stop franchise shop.

Y

Liz Le Prou P 0-4-569 9069 M 021 529 759 E wellington@crowehorwath.co.nz W crowehorwath.co.nz

Franchise Accountants

50, 51, 87

Save time, money and tax by benefiting from our specialist franchise advice and proven accounting solutions. Your National 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.

Y

Philip Morrison P 0800 555 8020 M 021 229 9657 E pmorrison@franchiseaccountants.co.nz W franchiseaccountants.co.nz

Inspired Accountants

87

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

National

Y

Craig Weston P 0-9-309 2561 M 021 309 309 E craig.weston@inspired.co.nz W inspired.co.nz

RightWay

62, 63

Small business advisory and accounting. We offer regular client site visits and fixed monthly pricing packages. Our core focus is on small businesses, especially hospitality, trades, retail and professional services. Regional partners are able to help with advice without getting bogged down with number crunching.

National

N

P 0800 555 024 E info@rightway.co.nz W rightway.co.nz

Staples Rodway Christchurch

Assistance with franchise purchases and ongoing accountancy and I.T. support in the franchise area. Over 15 years’ South experience in franchising in the SME market, acting for both franchisors and franchisees. Island

Y

Jon Robertson Dave McCone P 0-3-343 0599 E jrobertson@srchch.co.nz W staplesrodway.com

Young Read Woudberg

Specialists in all business areas, with substantial experience in franchising. Our services include appraisals, structure review and planning, monitored business performance, mentoring and technology. We are committed to easily accessible, personal service focusing on client needs, building individual relationships and providing added value solutions.

Y

Eric Woudberg Raimarie Pointon Steve Read Natalie Milne P 0-7-578 0069 M 027 570 1172 E accountants@yrw.co.nz W yrw.co.nz

Zebra Accounting

Tauranga, Bay of Plenty

89

Zebra helps Kiwi businesses and individuals by looking after their accounting for a low price. Zebra is an easy to use National and stress free accounting service made to save you time so you can spend it on the more important things in life.

N

Christopher Stent P 0800 110 160 M 021 873 692 E christopher.stent@zebratax.nz W zebratax.nz

ANZ

66

ANZ is dedicated to providing financial services to the New Zealand franchise sector. We deliver this through local business bankers in all major towns and centres throughout New Zealand. As part of our commitment to franchising in New Zealand, ANZ is an affiliate member of the Franchise Association of New Zealand.

National

Y

Karpal Singh P 0800 39 40 41 M 021 815 605 E franchising@anz.com W anz.co.nz

ASB

42

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

Craig McKenzie P 0800 272 476 M 021 805 425 E craig.mckenzie@asb.co.nz W asb.co.nz

BNZ

61

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

Warren Sare P 0800 ASK BNZ M 029 222 0430 E warren_sare@bnz.co.nz W bnz.co.nz/franchise

7 Reasons To Call Us First

☑ You get comprehensive due diligence reports – we leave no stone unturned ☑ You minimise risk & protect your assets with the best structures for your business ☑ You save time, money and tax with our proven accounting solutions and systems ☑ You benefit from specialist advice – we listen, we understand ☑ You work with the award-winning service provider 2015/16 - Westpac Franchise Awards ☑ You can get specialist franchise mentoring and ongoing support ☑ You’re using specialist franchise accountants with the tick of approval – accredited members of FANZ & NZICA

CALL NOW 0800 555 80 20 www.franchiseaccountants.co.nz

SERVICE PROVIDER OF THE YEAR

INSPIRED ACCOUNTANTS

We specialise in Franchising and love to help Franchisors and Franchisees with: • Due Diligence (should I buy this business?) • Budgets and Cashflow projections • Financial accounting and reporting systems • Benchmarking reports • Liaising with other advisors (banks, lawyers, consultants) • Tax Advice • Best structure for the business (company/trust etc) Call us for a no obligation chat on 09 969 7450 | 021 309 309 www.inspired.co.nz | craig.weston@inspired.co.nz

Inspiring You!

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

EDIT_DIR_2501.indd 10

Find more info franchise.co.nz

FINANCE PROVIDERS

87 24/03/16 12:05 PM


company

service

description

Location

FANZ

page number

specialist advisors

Eightfold

54

Looking to finance your franchise or expand? We know banks and can assist you in getting the best deal to suit your National needs. Let us help you take the stress and hassle out of this process. For efficient, friendly service give Sean a call.

N

Westpac New Zealand Ltd

22, 92

Westpac is New Zealand’s most experienced bank in franchising and the only bank offering dedicated franchise only National 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, Sujam Ratnayake; Waikato – Emily Zhang; Lower North Island – Mick Robinson; Christchurch/South Island – Mark Schrader; Otago/Southland - Graeme Wyllie

Y

39

New franchise system set-up, franchise agreements, disclosure documents, brand name, trademarks, IP, master licensing, import/export, leasing sale and purchase structure compliance, disputes. Highly experienced team. Wide experience in all aspects of franchising. Extensive network of franchising contacts NZ and internationally.

National & Worldwide

Y

Baldwins

A patent attorney firm and associated law firm offering intellectual property services including patents, trade marks, copyright and registered designs. We help our clients achieve and maintain a commercial advantage in the marketplace by protecting, developing, commercialising and enforcing their intellectual property assets.

National

Y

Botting Legal

Franchise and commercial law specialists. We provide practical legal advice in plain English for both franchisees and franchisors at very competitive rates. Preparation and review of franchise documentation, advice on structuring and IP protection, franchise operation and dispute resolution. Carson Fox Bradley is a compact Auckland law firm. All 3 directors have significant experience in franchising. Chris Bradley is author of the ADLS standard franchise agreement. Matt Carson has completed an MBA thesis in franchising. We act for many national franchise systems.

National

Y

National

Y

National

Y

LAWYERS ASCO Legal

Carson Fox Bradley

Deirdre Watson - Barrister

25 years’ experience in litigation, disputes, court cases and mediation. Franchise dispute specialist.

Gaze Burt

Lawyers providing full legal services for franchisors and franchisees including advice and documents relating to fran- National chise 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. We provide comprehensive advice on the legal aspects of franchising to both franchisors and franchisees. For Greater details see our website. We can quickly establish the issues each party is likely to encounter and address these at Wellington the outset before they become problems.

Gibson Sheat Lawyers

86

Goodwin Turner Commercial Lawyers

3

Y

Y

Goodwin Turner advise on all aspects of franchising including developing franchise systems, preparing franchise National & documents, reviewing franchise arrangements and advising on disputes and intellectual property protection. Team of Worldwide leading law experts that are well-known in the franchise industry and who focus on making it possible.

Y

Govett Quilliam

New franchise creation, franchise makeovers, problem solving for franchisees and franchisors, IP law and protections, advice on how to make money from IP via licensing, succession advice for franchise exits, advisor to intended immigrants seeking franchise businesses www.visaconnect.nz. Specialist in franchise networks and collaboration.

Y

Harmans Lawyers

Comprehensive legal service for both franchisors and franchisees including franchise and disclosure documentation, South employment, leases, terms of trade, dispute resolution and business structures. Full service legal firm that prides Island itself on being solution driven. Franchise specialists with a proven track record. and National All aspects of franchising and business advice including disputes resolution. Advisors to franchisees and franchisors Bay of locally and nationally. Experienced in advising the franchise industry. Franchisor and franchisee advice. Full comPlenty and mercial advice. National

Harris Tate

88

Izard Weston

Taranaki Region & Wider

Y

Y

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

get more information Sean Dwyer M 021 115 7730 E sean@eightfold.co.nz W eightfold.co.nz Daniel Cloete P 0800 177 007 E franchising@westpac.co.nz W westpac.co.nz

Miles Agmen-Smith P 0-9-308 8070 M 027 477 9960 E miles.as@ascolegal.co.nz W ascolegal.co.nz Rachel McDonald P 0-9-359 7738 M 027 645 3198 E rachel.mcdonald@baldwins.com W baldwins.com Bradley Botting P 0-9-950 3880 E franchise@bottinglegal.com Chris Bradley Matt Carson Linda Fox M 021 899 609 E chris.bradley@carsonfox.co.nz W carsonfox.co.nz Deirdre Watson P 0-9-309 6988 M 021 791 740 E deirdre.a.watson@xtra.co.nz W deirdrewatson.co.nz Michael Bright P 0-9-414 9800 E michael.bright@gazeburt.co.nz W gazeburt.co.nz Claire Byrne Dave Robinson P 0-4-916 7483 M 029 916 7483 E Claire.Byrne@gibsonsheat.com W gibsonsheat.com Scott Goodwin P 0-9-973 7350 M 027 700 7396 E scott@goodwinturner.co.nz W goodwinturner.co.nz Ross Fanthorpe P 0-6-768 3729 M 021 757 6229 E ross.fanthorpe@gqlaw.nz W thelawyers.co.nz Mark Sherry P 0-3-352 2293 M 021 524 890 E mark.sherry@harmans.co.nz W harmans.co.nz David Foster Katrina Hulsebosch Oliver Moorcroft P 0-7-578 0059 E david@harris-tate.co.nz W harristate.co.nz Hamish Walker P 0-4-499 7809 M 027 288 2339 E hamish.walker@izardweston.co.nz W izardweston.co.nz Rory MacDonald Tim Lewis P 0-9-307 3324 E info@mllaw.co.nz W mllaw.co.nz Sarah Pilcher P 0-9-579 3526 M 027 564 9942 E sarah@thefranchiselawyer.co.nz W thefranchiselawyer.co.nz Stewart Germann Harshad Shiba P 0-9-308 9925 M 021 276 9898 E stewart@germann.co.nz W germann.co.nz

MacDonald Lewis Law

88

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

Sarah Pilcher The Franchise Lawyer

86

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 & National

Y

Stewart Germann Law Office, Lawyers and Notary Public

17

Over 30 years’ franchising and licensing experience. Expert legal advice to franchisors and franchisees nationwide. National & Stewart Germann is a Past Chairman of FANZ and is passionate about franchising and small to medium businesses. Worldwide Selected as Best Lawyers in New Zealand – Franchise for 2014-2015. Winner of Global 100 – Law Firm of the Year – Franchise – New Zealand 2014.

Y

N

Cath Copley P 0800 023 789 M 027 499 3118 E cath@allaboutpeople.co.nz W allaboutpeople.co.nz

N

Chloe Franklin-Hall M 021 797 424 E chloe.franklin-hall@colliers.com W colliers.co.nz

CONSULTANTS & OTHER SERVICES 26

Health & Safety

Colliers International

36

Commercial Property Brand new motion entertainment centre in Rotorua - New Zealand’s largest indoor allConsultants weather entertainment centre. Stage 1 completion due spring 2016. Convenience, service and food tenancies available - flexible size options from 80m2 to 1800m2.

Find more info franchise.co.nz

All About People

SE F R AN C H I OU ADVICE Y RU S T CAN –T ––––

Specialists in the core business function of health and safety and fire safety with over 30 National years’ experience. We provide practical solutions to help embed a culture of workplace health and safety that becomes ingrained in the organisation culture and has the confidence of workers.

As the Bay of Plenty’s leading franchise lawyers, you can count on us for tailored and practical advice that adds value to your business. With more than 20 years of experience in franchising, we know what works best. Our track record in providing comprehensive sound advice speaks for itself. Just ask.

Contact: David Foster | david@harristate.co.nz Tel. 07 578 0059 | 29 Brown Street, Tauranga | harristate.co.nz

88 EDIT_DIR_2501.indd 11

Rotorua

We have the expertise and the experience to find cost effective legal solutions for your franchising needs Let us help you make the right decision • Free initial 30 minute consultation • Fixed fee packages Contact: Rory MacDonald (09) 307 3324 rory@mllaw.co.nz 92 Parnell Road, Auckland

Westpac Directory of Franchising and Advertiser Index Franchise New Zealand Autumn 2016 Year 25 Issue 01

24/03/16 12:05 PM


service

description

Location

FANZ

company

page number

specialist advisors get more information

Cumulo9

Email Branding

Franchisors and franchisees send hundreds of emails every day, and every single one reNational flects the franchise brand. Every email also has the potential to generate more sales, up-sell, cross-sell or increase web traffic for your business.

N

Chris Hogg P 0-9-889 3458 M 021 345 690 E chris@cumulo9.com W cumulo9.com

Design for Marketers

Design Resources

Engage Design for Marketers to obtain design resources for you to market your franchise brand effectively and consistently. Planning, creation and supply of resources for branding, advertising, promotional, recruitment, point of sale etc. Over 20 years’ experience with leading franchise brands. Be seen, be bought, be recommended.

National

N

Paul Donovan M 021 64 45 45 E paul@cdq.co.nz W cdq.co.nz

Franchise Consultants

Offering services tailored to franchisors and franchisees. Guidance for franchise buyers. Sup- National port for people establishing and running franchised businesses. Areas of expertise include system development, recruitment, franchise sales processes, documentation assistance etc. Network of contacts in WFC member countries to help with any franchisor or franchisee problem.

Y

Ian Robertson M 0274 334 513 E ian@franchise101.co.nz

Franchise Consultants & Accountants

Specialist advice on franchise system development, feasibility studies, recruitment, documen- National tation, manuals, ongoing mentoring, strategic planning and partnering to grow your business.

Y

Philip Morrison P 0-9-265 2657 M 021 229 9657 E pmorrison@franchiseaccountants.co.nz W franchiseaccountants.co.nz

Franchise 101

85

Franchise Accountants

Franchise Association of New Zealand

44

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.

Franchise Coach

89

Franchise Consultants & Recruitment

Comprehensive advice on franchise system development. Feasibility studies, manuals, docu- National & mentation, legal briefs, franchisee recruitment, exporting and importing, mediation and ongo- Worldwide ing 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.

Franchise Infinity

23

Software Management Tool

Franchise Infinity is a cloud-based software that combines a range of effective management International Y tools which enables you to manage all aspects of your franchise from one centralised operating system. These efficiencies are driven through a focus on communication, compliance and performance.

Shane Boulle P 0800 555 8020 M 021 836 6253 E sales@franchiseinfinity.com W franchiseinfinity.com

Franchise Research & Development

Franchisee selection systems, satisfaction surveys, recruitment and training for franchise Australia & management. Assistance with organisational change and restructuring, conference presenta- New Zeations on managing the franchise relationship. “The Franchise Coach” has been awarded the land agency for the Franchise Relationship Institute’s products, including Greg Nathan’s popular books.

N

David McCulloch P 0800 4FRANCHISE M 021 943 776 E davidm@berkshire.co.nz W franchiserelationships.com

Specialists in franchise development, strategic planning, legal briefs, systems and manuals, National & recruitment processes and documentation, ongoing mentoring and sound advice on franchis- Worldwide ing and licensing. Recognised as New Zealand’s leading management consultancy specialising in franchise development. Experience with many of NZ’s top franchised companies.

Y

Callum Floyd P 0-9-523 3858 E callum@franchize.co.nz W franchize.co.nz

Y

David McCulloch P 0800 4FRANCHISE M 021 943 776 E davidm@berkshire.co.nz W franchisecoach.co.nz

Franchize Consultants (NZ)

41

Franchise Consultants

Holiday Inn Rotorua

19

Rotorua Conference Facilities Holiday Inn Rotorua offers flexible and varied spaces to hold meetings and conferences for between 2 – 600 people. It is the ideal choice for an energising conference/event. Enjoy peace and quiet right in the heart of the thermal wonderland. We can arrange themed events.

N

Julie Carcaterra P 0-7-349 9710 M 0274 740 619 E juliec@holidayinnrotorua.co.nz W holidayinnrotorua.co.nz

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

Chris Beasleigh P 0-9-363 0286 M 021 597 856 E chris.beasleigh@ap.jll.com W jll.nz

JLL (Jones Lang LaSalle)

LearningWorks

74

Training & Education

Learning, education, eLearning and training solutions. LearningWorks provides a range of services focused on the development and delivery of learning and training solutions to businesses and organisations.

National

N

Peter Shergold P 0-7-923 4063 M 021 372 343 E info@learningworks.co.nz W learningworks.co.nz

LINK Business Brokers

48

Franchisee Resales & Recruitment

LINK are the authority on selling businesses in New Zealand & the Southern Hemisphere National and 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 than any other brokerage.

Y

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

MEGA Services Franchise Consultants

76

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 & Worldwide

N

Ray Lindstrom P 0800 006 444 M 027 252 5334 E ray@megaservices.co.nz W megafranchise.co.nz

MYOB

30

Accounting & Payroll Software

MYOB is New Zealand’s largest provider of business management solutions including accounting and payroll software.

National

Y

Emma McMulkin P 0800 606 962 M 029 201 4366 E grow@myob.com W myob.co.nz/franchise

Parallel Directions

64

National Commercial Property Parallel Directions are independent commercial property advisors working exclusively for Consultants tenants, never landlords so you know we are always working for your benefit. Set up in 1998, we offer commercial property advice including search, lease negotiation, design and build, and relocation.

Y

Peter Scott P 0-9-550 8500 M 021 896 649 E info@paralleldirections.co.nz W paralleldirections.co.nz

The Grange Warkworth

24

Retail Real Estate

The Grange is a significant retail centre with over 30 retail stores. Over 70% leased with a limited number of retail stores still remaining from 60m2 – 500m2. Lease and purchase options available.

N

Jan Hutcheson P 021 655 558 E jan.hutcheson@bayleys.co.nz

Waipuna Hotel & Conference Centre

32

Conferences

Greater Hotel accommodation with fully integrated conference centre suitable for small meetings Auckland 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 Area the mid-range meetings and leisure market.

Y

Wayne Billings P 0-9-526 3024 M 0274 992 413 E wayne@waipunahotel.co.nz W waipunahotel.co.nz

The award that spells confidence and trust

Warkworth

New Zealand’s Best Accounting Offer Financial statements completed for a low cost by NZ Accountants We’ll save you time, money and stress. Why pay for business advice when all you want to know is how much GST do I pay and how much is my tax bill! Call us for free – 0800 110 160

www.zebratax.nz

Find more info franchise.co.nz

Franchise Relationships Institute

Sarah Watene P 0-9-274 2901 E contact@franchise.org.nz W franchiseassociation.org.nz

National

Service Provider of the Year

Smart buy? Find the right franchise by starting with the right people. Westpac New Zealand Limited

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

EDIT_DIR_2501.indd 12

89 24/03/16 12:05 PM


opportunity: health & beauty

SALON SUCCESS Rodney Wayne franchisees celebrate 16 years by opening third outlet

W

hen asked what advice he’d give anyone looking into a Rodney Wayne franchise, Pradeep Chauhan replies, ‘It’s very simple – believe in the brand and it will deliver!’ Having been a franchisee for 16 years and owning not one but three highly-successful salons, Pradeep’s advice is worth listening to. Rodney Wayne is a serious business opportunity for good business people like Pradeep. The brand has been a market leader in New Zealand for 40 years and currently has over 50 salons and specialist Pradeep and Kanan Chauhan: ‘We owe our success to buying into a top-notch franchise’ retail outlets in New Zealand. As one of the pioneers of franchising here, the company took the opportunity to open a salon in the new complex at Northwest. So has a wealth of experience to draw upon and offers franchisees proven every five years we’ve made a move and built our business every time.’ and perfected operating systems, comprehensive training, huge buying power and a culture of ongoing support from everyone in the group. According to Julie Evans, the company’s straight-talking CEO, ‘Good operators can achieve a very satisfactory return on investment, and our track record means that banks are keen to fund the right people. Currently we have opportunities round the country for people with the right skills, so whether you are interested in an established salon with instant cash flow, or creating a new business in a prime location, contact me.’

effective combination So what are the right skills for a Rodney Wayne franchisee? According to Julie, one of the most effective combinations is a team with business and styling experience – just like Pradeep and his wife Kanan, in fact. Pradeep originally came to New Zealand to study, then returned to Fiji ‘where I got married, had a family, and opened a commercial school. But at the time Fiji wasn’t very stable so we decided we’d have a better future for our family in New Zealand.’ The couple opened a restaurant which they ran successfully for five years before selling it and wondering what to do next. ‘Kanan had trained as a hairdresser and came home one day with the idea we should buy a Rodney Wayne salon. Well, I was a bit hesitant, and we looked at other opportunities, but when we went to meet Rodney himself we were sold on the business within fifteen minutes. Although we’d been in business as independents we felt the support of the franchise was very attractive – the brand was so well known and offered very good purchasing power, which is always valuable when you are starting up.’ Pradeep and Kanan opened their first outlet in Birkenhead in 2000. ‘I agreed to be involved for 6 months as it got established and 16 years later I’m still here,’ says Pradeep. ‘We’ve seen a lot of changes in those years, though: we opened a brand new salon in Westgate in 2005 and bought Manukau in 2010. Having three so spread out was a bit much, so we sold Birkenhead and concentrated on building the other two. Then last year we

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strong, profitable and recession-proof

‘Rodney Wayne is a strong, profitable business and we’ve found it is pretty much recession-proof,’ says Kanan. ‘Hair just keeps growing and we fulfil people’s dreams of looking good. That is what makes our business so different from others. Once you have a good customer they keep coming back every few weeks, so having a good team, managing them well and giving good service every time is the key to the business.’ And franchisees are given every assistance to build good teams with regular training and unique performance incentives for staff, as well as the kudos of being part of a world-class fashion brand promoting global trends through its twice-yearly campaigns. All the salons also benefit from Rodney Wayne’s technological support, including online and social media promotions, booking tools and text reminders to ensure that clients never miss an appointment. But the success of the business ultimately depends on the franchisee making the most of all these tools, as Pradeep says. ‘You need a business head and the franchise is always there to support you, but personality is very important, too. Hairdressing is an intimate business and you’ll be dealing with people all the time. It’s important to enjoy the younger generation, and if you understand the hair and fashion industries it will help you to create a advertiser info successful, enjoyable and above all profitable business. ‘We came to New Zealand emptyhanded and owe our success to buying into a top-notch franchise. After 16 years, I can say it has been worthwhile from every angle. We couldn’t have made a better choice.’ Franchise New Zealand

Rodney Wayne PO Box 825, Shortland Street, Auckland www.rodneywayne.co.nz Contact Stephanie Alexander P 0-9-358 4644 ext 0 stephanie@rodneywayne.com

Autumn 2016

Year 25 Issue 01

22/03/16 5:10 PM



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Up to 100% funding available on the GST exclusive price of the asset. All applications for finance are subject to Westpac’s current lending criteria. An establishment fee may apply. Terms, conditions, fees and charges apply. For details, please visit westpac.co.nz/business or call 0800 177 188. Westpac New Zealand Limited.

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