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OPTIONS IN VENDING

PLUS FREE MAGAZINE

THE PROFILER

Franchising www.franchise.net.au

Jan/Feb 2012 VOL.25/No.1

Your essential guide to buying a franchise

Shining a light on

multiple units An essential luxury THE HAIR CARE SECTOR

AUS $6.95 NZ $7.95

Can you afford

Flying high WHY FRANCHISING WORKS

that franchise? ZARRAFFA’S COFFEE: TEN YEARS OF FRANCHISING


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Everything you need to succeed in franchising on a single page. You might as well throw the rest of this magazine away. At Hairhouse Warehouse, we’re all about serious growth. Not only were we named ‘FCA Established Franchisor of the Year 2011’ but we’ve been listed in BRW’s ‘Fastest Growing Franchises’ 6 years in a row. In fact, our complete list of business awards wouldn’t fit on one page. And as all our current franchisees know, our support team’s expertise will help you keep customers coming through the door. No wonder Hairhouse Warehouse is Australia’s fastest growing brand in the haircare and beauty industry. With opportunities in NSW, QLD, SA and WA available, give Dean a call today on 0451 370 060, or email franchising@hairhousewarehouse.com.au

WINN NNER Established Franchisor of the Year 2011 - WINNER Franchisor Social Responsibility 2011 - WINNER WINN NNER RUNNER UP Excellence in Marketing 2011 - RUNNER

WINN NNER Most Successful Private Business of the Year 2011 - WINNER


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Contents JANUARY–FEBRUARY 2012 |YOUR ESSENTIAL GUIDE TO BUYING A FRANCHISE

Issues Cover story

85

Inspire Up in the cloud How IT is helping Kwik Kopy help franchisees

23

I spy a watchful eye Selling security and surveillance

26

Hands on, hard work that cleans up StayClean Hands launches

Opportunities

40 6

News

10

Interview

125 Checklist 142 Company listings

80

Is social media the best communication tool? Franchise businesses and social media

85

Making dollars and cents of your disclosure document Reading the disclosure document

90

Support team in tow Dispense with opening-day blues when you invest in a franchise

96

Mums know best Mothers take charge of their future through franchising

101 Safety is your concern New regulations in health and safety 106 Stamped duty Making it easy to promote the brand

40

An essential luxury The challenges of the hair and beauty market

109 7 tips for business success Follow simple rules to make your business life easier

49

Building your future Do you need technical skills to start up in the building services sector?

112 Can I afford this franchise? New regular financial advice

54

The convenience career How easy is it to operate a vending business?

60

Driving force Match a passion for cars with a franchise opportunity

120 People 122 Coffee break

Can franchising fly above the storm? What makes this an optimistic sector?

A better bite of business What are the healthier options in fast food dining?

117 Legal 118 Sketch

74

30

REGULARS Editorial

Lighting up your portfolio Why multi-unit franchising is increasingly popular

How to... 18

5

66

WWW.FRANCHISE.NET.AU

49 JAN/FEB 2012 FRANCHISING | 3


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Welcome

Franchising Publisher Michelle Graves michelle.graves@reedbusiness.com.au Editor Sarah Stowe sarah.stowe@reedbusiness.com.au Direct: 02 9422 8900 Journalist Danielle Bowling danielle.bowling@reedbusiness.com.au Direct: 02 9422 2667

What will 2012 hold for you?

Sub Editor Richie Kenzie richie.kenzie@reedbusiness.com.au Direct: 02 9422 8851

T

National Sales and Marketing Manager David Strong david.strong@reedbusiness.com.au Direct: 02 9422 2905 Contributing Journalists Domini Stuart Donna Bennett Columnists Greg Nathan Andrew Terry Raynia Theodore Production Co-ordinator Eryk Koziol eryk.koziol@reedbusiness.com.au Direct: 02 9422 2379 Creative Art Director Julie Coughlan julie.coughlan@reedbusiness.com.au Designer Louis Santos louis.santos@reedbusiness.com.au Managing Director Jeremy Knibbs jeremy.knibbs@reedbusiness.com.au Editorial Inquiries Tel: 02 9422 8900 Advertising Inquiries Tel: 02 9422 2905 Fax: 02 9422 2722 Subscription Inquiries Tel: 1300 360 126 Fax: 02 9422 2633 Franchising is a publication of Reed Business Information ABN 132 719 861

SYDNEY OFFICE Tower 2, 475 Victoria Ave Chatswood NSW 2067 Tel: (+612) 9422 2999 Fax: (+612) 9422 2722 www.reedbusiness.com.au

SARAH STOWE Editor

his year could be the start of something exciting if you are considering investing in a franchise. As our feature on p74 shows, there are some excellent reasons why the franchising sector will keep thriving, even in the face of economic uncertainty. This is a business method that brings fledgling business owners together with experienced operators, support teams, an existing marketing campaign and an established brand. Franchising works best when everyone is working in unity: staff members, franchisees and franchisor teams. Choosing the right franchise isn’t always easy however. Dr Michael Schafer, deputy commissioner of Australian Competition and Consumer Commission, writes on p85 about the disclosure document that every franchisee must receive before signing up to a system – what the content reveals, and how to find out more. It’s tempting in the emotionally-charged time prior to sign-up to want to hurry the process along – good franchisees are naturally keen to get started in their new business – but taking shortcuts can prove financially damaging later on. It’s a point that regular contributor Professor Andrew Terry takes up in his column on p119: breaking up is hard to do, he says, so look deeper than the system’s glossy surface to pick a solid franchise opportunity that will suit you. Where do you see your future? There are opportunities in every business sector you can imagine and in this issue we look at building services, the haircare arena, healthy fast food, vending and automotive services. For inspiration, check out our franchisor stories, and our cover feature unveiling how multi-unit franchisees have built their mini empires. And don’t forget to keep up to date with our daily online news at www.franchise.net.au. If you’ve got an opinion to share, why not join our Facebook community? Your franchise future starts here so let us know how you go. Good luck!

Franchising works best when everyone is working in unity

Sarah Stowe Editor Average Net Distribution Period ending Sep ‘11 7,018 FACEBOOK.COM/FRANCHISINGMAGAZINE TWITTER.COM/FRANCHISINGAU

All Franchising material is copyright. Reproduction in whole or in part is not allowed without written permission from the Editor. © 2011. Opinions expressed in Franchising are not necessarily those of Franchising or Reed Business Information.

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News ONLINE NEWS | WWW.FRANCHISE.NET.AU

New Healthy Habits MD to boost menu and brand HEALTHY Habits has a new managing director following the departure of sandwich bar founder Katherine Sampson, who left the business as planned three years after the Victoria based company was acquired by the Dymocks Group. Merrill Pereyra, previously with McDonalds, has taken on the healthy food franchise and in a restructure of the reporting process is directly answerable to the Dymocks chairman. Pereyra told Franchising, “I’m looking to take the brand to another level. It’s been around 19 years so maybe it’s time to refresh the brand. I’m planning a new look for June 2012, a modernised fresh version. The board is very

Habits is not in Tasmania, Western Australia and South Australia. There are so many options in Australia, and we could take it overseas.” But the first priority for Pereyra is to get the model right. “My vision is soup, salads, smoothies and sandwiches. I’m still trying out the idea of soup. I don’t know how it would work in summer in Australia.” Pereyra has appointed a new chef, Leslie Bailey, who comes to Healthy Habits with experience at Cathay Pacific

Merrill Pereyra

supportive of what I want to do. I have grown a brand, that’s what I’ve done for 16 years, in new territories. “I think that more and more people are increasingly aware of healthy options. Healthy

and McDonald’s, and is now consulting. He’s been tasked to be creative with existing ingredients, and to innovate; to bring a point of difference and exclusivity to the range. A review of the supply chain and suppliers to ensure better economies of scale is also part of t with everyone working together,” said Pereyra. For the remodelling to be a success, he believes franchisees need to see an increase on sales of between 15 and 20 percent.

Congratulations to the Sept/Oct competition winner, Adam Tidyman from NSW, who won a $500 Apple Gift Card

A Bright Future… Awaits You with Australia’s Leading Mobile Ink Franchise  Proven System  Low Entry Cost  Strong Cash Flow  Proactive Marketing  Growth Market 1800 ink run (465 786) www.inkontherun.com.au 6| FRANCHISING JAN/FEB 2012

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News ONLINE NEWS | WWW.FRANCHISE.NET.AU

NEWS BRIEFS As part of its plans to expand its Express store network, Eagle Boys will set up kiosks at two Hoyts Cinemas, Penrith and Charlestown, with three unbranded kiosks in Sydney at Carousel, Chatswood and Entertainment Quarter Andrew Dalton has joined the MBE Australia team in the national franchise development role, bringing more than 15 years experience in the franchising industry

Fastway drives first brand refresh in 28 years COURIER franchise, Fastway Couriers, is in the process of rolling out a major brand refresh, which includes a modernised logo as well as new look vans, uniforms and marketing collateral. Richard Thame, CEO, said the initiative represents the most significant change made to the company’s brands in its 28 year history. “The new look is aimed at reinvigorating the business and encouraging growth opportunities for our team of 700-strong courier franchisees across Australia,” he told Franchising. “It offers us the opportunity to ensure Fastway’s public image reflects our modern approach to courier services and further helps to achieve our goal of becoming the preferred courier service

provider to the online retail industry.” The rollout of the new branding has already taken place in several metropolitan areas with the remaining franchises due to be completed early this year. “[We] have seen some phenomenal changes occur within our business, with our new look rolled out across hundreds of vehicles, the procurement of new depot signage, and the launch of our brand new website with plenty more to come,” said Thames. “We want to build a culture in which people live and breathe our brand values, a culture that breeds operational excellence, sees our franchisees embrace the latest technology and helps us recruit and retain the best staff, franchisees and business partners.”

AUSSIES SPEND UP ON BODY BEAUTIFUL HOW much would you spend on looking good? Australians are tipped to spend a staggering $6.99 billion on making the most of their looks in 2011-12, which equates to $313 per person. According to analysts at IbisWorld, this is an increase of 18.8 percent from the $5.88 billion spent

in 2010-11, with cosmetic procedures the fastest growing segment of the beauty spend. However the traditional hair and beauty salons still get the bulk of our beauty spend. IbisWorld general manager (Australia), Karen Dobie said “Older Australians have greater financial security and

freedom, so they can afford to splash out on a greater range of products and procedures.” IbisWorld expects more than $3.79 billion will be spent on these services in 2011-12, an increase of 2.3 percent on last year. Women account for 61 percent of the dollar spend, men just 39 percent.

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Nanotek Car Cleaning has launched a flagship store in Saudi Arabia in the city of Al-Khobar after a year of planning and development Franchised fast food outlets in Queensland, like those in NSW, will be obliged to display kilojoule counts for their food and drink items when legislation is introduced this year Natural health and beauty products distribution and retail business, Healthzone, has gone into receivership but the 80 franchised and 30 company-owned stores operating across Australia as Healthy Life continue to trade Beauty franchise, Brazilian Butterfly, has announced a corporate sponsorship with Ovarian Cancer Australia, a national not-for-profit organisation dedicated to ovarian cancer awareness Coffee franchise Zarraffa’s Coffee has marked both 10 years in franchising and the opening of its 50th store, located at Maroochydore on Queensland’s Sunshine Coast

32%

– That’s how much cafes and coffee shops’ revenues will increase over the next five years, according to business information analysts at IbisWorld

JAN/FEB 2012 FRANCHISING | 7


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News ONLINE NEWS | WWW.FRANCHISE.NET.AU

The most popular franchises: survey

Easy access Centre director professor Lorelle Frazer said the preferences shown in the research weren’t a surprise. “Service franchises are most popular at 31 percent and are less expensive to enter than retail so they often attract first-time franchisees.” The average start-up cost of a new

Other results: • Retail (non-food) attracted just a fifth of participants • Mobile franchises were bottom of the list, representing just four percent of potential franchisees • Five percent of respondents cited ‘Other’ franchise models

Pre-entry franchise education The pre-entry franchise education program was developed after Centre research identified a major cause of franchise conflict was unrealistic expectations on the part of the franchisee when entering franchising.

retail franchise is $275,000 compared with only $89,000 in non-retail franchises (including service franchises), according to research findings in the report Franchising Australia 2010. “Retail (food) and the service sector are also travelling a little better in the downturn with a slump in non-food retail, which may be why people are avoiding the retail non-food sector,” professor Frazer said.

ARE you looking to buy a service franchise? If so you’re in good company with statistics from a free online preentry franchise education program showing service franchises are the firm favourites, with food retail a close second. Interestingly, 13 percent of potential franchisees were undecided about which type of franchise to invest in. The statistics have been released by Griffith University’s Asia-Pacific Centre for Franchising Excellence which has just registered approximately 3000 participants in a pre-entry franchise education program launched in July 2010. Seven months ago the Centre started asking what type of franchise participants were interested in, if they were looking to buy a franchise. Nearly a third of participants indicated they were interested in a service franchise, followed by 27 percent keen to invest in a retail (food) franchise.

Very simply put, social media is where the customers are

– Social Media Business Boosters director Max Collins, ‘Social media managers licenced to boost online engagement’, franchise.net.au

Poolwerx to dip toe in US waters as part of growth strategy POOL and spa care franchise PoolWerx is looking for 30 percent growth this year in the Australian market and is finalising plans to launch in the US. The planned growth in the domestic market should deliver an increase in total sales revenue of about 14 percent. Franchise founder John O’Brien said the business gear-up for strong growth follows the successful investment in systems to boost trading through a difficult year. “We’re also now seeing

8| FRANCHISING JAN/FEB 2012

an upswing in business development. In the 2010/11 financial year we only had three new PoolWerx franchises open, however this financial year we’ve already had six.” The renewed Australian expansion comes as the company finalises an international franchising agreement. “We always intended to take the business global and were close a few years ago but when the GFC hit we had to shelve our plans temporarily. Now that market conditions

have shifted we are currently finalising arrangements to take PoolWerx to the US. This will position PoolWerx as a truly global brand and really take our business to the next level.” The Poolwerx model of three business elements - one third each domestic, retail and B2B - will be unique in the US market, where of the 8,000 pool stores one chain has 700 outlets and there is one franchised network of 150 stores, O’Brien said. Speaking from the US where he was visiting key

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suppliers, O’Brien told Franchising, “We’ve had a number of very interesting inquiries from the US from multi-brand franchisors looking to add brands to their stables. We haven’t found the right fit yet so we are taking the direct entry approach.” Poolwerx is poised to acquire a small three store business which it will take over in February. “We’ll run this for 12 months and get tweaks out and an Americanised system and then look to start US franchising.”


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Inspire|Interview

Kenton Campbell knows about coffee. He started up the Zarraffa’s Coffee chain 10 years ago, which has just opened its 50th store

SIPCODE H

ow did it all start? The journey from naval career to coffee chief began in the US in 1993 when Kenton Campbell spent two years in that traditional filling-in job, waiting on tables. And then there was one moment when his outlook to work changed; “I’d put through $800 one day, and thought, I want that, not my pay. I want to have a business of my own.”

10| FRANCHISING JAN/FEB 2012

WWW.FRANCHISE.NET.AU

Campbell admits he hadn’t accounted for the costs that are taken out of the turnover, but nonetheless had set himself on a new path to entrepreneurship. In Seattle, he says, he found coffee, and set up with his first expresso cart. “In October 1995 thethen Retail Food Group chairman Tony Williams invited me over to consult on the coffee game. It didn’t last. So I took jobs in cafes, and in


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Micronet’s is so much more than an accounting system ͞dŚĞDŝĐƌŽŶĞƚ&ƌĂŶĐŚŝƐĞ^ŽůƵƟŽŶĨŽƌƚŚĞŵďĞƌdŝůĞƐ'ƌŽƵƉ ĐƌĞĂƚĞĚĂƐŝŐŶŝĮĐĂŶƚƐƚƌĂƚĞŐŝĐĂŶĚĐŽŵƉĞƟƟǀĞĂĚǀĂŶƚĂŐĞ͘͟ :ŽŚŶ^ĐŚƌŽŽƚĞŶ͕YůĚ^ƚĂƚĞDĂŶĂŐĞƌ ŵďĞƌ'ƌŽƵƉƵƐƚƌĂůŝĂ>ƚĚ

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Inspire|Interview

Brisbane, noticed no-one was carrying around coffee.” Within a few months Campbell had come up with the Zarraffa’s name and brand. The name means giraffe in Arabic, and the link with coffee comes from the Masai giraffes of Kenya and Ethopia, both countries traditional coffee sources. The idea of standing

Welcome to your own business. As a franchisor we can say this, you can forget weekends, forget golf. These are the facts of business. People that like the brand, the industry, realise it’s not a qu ck buck quick

giraffe-like, head and shoulders above the rest, is the inspiration for the brand.

Capital and growth The first store was set up in 1997, evolved and moved locations in the Gold Coast’s Australia Fair, then a Harbour Town site was added. The business continued to grow, but slowly. As a new parent with no money, Campbell decided to review his prospects and consider another way to build his business. “I had a look at franchising, and realised my brand was good. I could see the model could evolve, and it would force me to set up an operations manual, to allow it to grow without me. That excited me. “I weighed up on a whiteboard the

pros and cons of franchising. What I’d have if I didn’t go into franchising, five to 10 stores in five years. But I would have no money, my kids and my wife would hate me, because you always have to put back in.” In contrast franchising offered him the opportunity to open 20 outlets in five years; in reality the 20th Zarraffa’s Coffee outlet was opened within 24 months. “I knew I could hire people to help support me and spend time with family. The greater management structure of a franchise always

Kenton Campbell with the in-house magazine Grind; multi-unit franchisees, mother and son Brendan and Judy Lord; franchisees Nikhil Patel, Rupali Patel and Mayur Patel

with

Clean UP a Jani-King

Commercial Cleaning

Franchise!

www.janiking.com.au 12| FRANCHISING JAN/FEB 2012

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40 FOR

OVE

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Inspire|Interview

, with The 50th store Bambury franchisee Terry

out outweighed the money potential.” pot The focus on a support structure as a strength in str business that eases the load bu is one that he employs when looking at multiw unit un expansion within the network. “We have been n working on how many w stores people can manage s and a think three to four stores for an owner for the s same reasons as my choice

to franchise, to share the burden. There are other ways to grow financially: investment, pay off a mortgage…” A successful business unit rather than a network of stores growing for growth’s sake is the key. Financing the business has been challenging, he admits, adding “Funding is difficult until the point when you don’t need the money. Then banks listen.” While other systems have chosen to step in themselves if funding isn’t forthcoming from the major institutions, Campbell’s view is different. “I don’t want to be a bank.” Now the Zarraffa’s business is seen as a good risk, with both Westpac and NAB accreditation making it easier for franchisees to get the finances necessary to invest.

Franchisee recruitment is about more than just the capital to hand. Work ethic, personality, ongoing ambition, life situation and expectations are all considered. “We want them to know what it’s like, we take the Tom Potter line [the founder of Eagle Boys Pizza, known for his direct approach]. ‘Welcome to your own business. As a franchisor we can say this, you can forget weekends, forget golf’. These are the facts of business. People that like the brand, the industry, realise it’s not a quick buck. Just because this a great brand, that’s no guarantee.”

Franchising reality A franchise term is a five by five minimum, giving the franchise a solid 25 years to do business, or as Campbell puts it, to pick the real fruit on the tree, as it grows. Commonly franchise systems offer either a three

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Strategic Planning a g

International


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Inspire|Interview

A bigger picture In 2011 the company introduced its first Fairtrade Alliance coffee bean blend from Mexico, adding an ethical flavour to the business that already supports a number of charities, including the Currumbin Wildlife Sanctuary in the Gold Coast, Act for Kids and Ecoforce. Campbell has also dipped his toe into a number of promotional activities that are out of the ordinary including the link with a boutique beer business that resulted in the black coffee lager winning a gold award and publishing a quarterly magazine Grind that’s available to the coffee loving community and holders of the Zarraffa’s loyalty program’s ZCard.

Suburban stores are the new focus; a Harbour Town store in the early days; Franchisees of the Year 2011, Elissa Hutton and Bruce Fullerton

or five five year term, with h one or o two options to renew. But, says Campbell, a franchisee needs the security of a long trading spell to make money. Add in the often high rental costs and insecurity of some lease terms and it’s clear why customers will increasingly see Zarraffa’s Coffee outlets in suburban venues rather than high profile shopping centres. “Rent shouldn’t be the issue, just another cost. We’re in centres but if we can’t give tenure, we

can’t give people l a ffuture.” He cites a franchisee who chose to relocate from Garden City, where the rents were “crazy, crazy prices”, and to balance the challenge of rebuilding their business with a $120,000 rent reduction over five years. The move into suburban locations is by design, rather than default, and meets the twin requirements of commercially viable costs for the franchisee, and easy access for the consumer, whether that’s as a drive through or café model.

TRAINING, TRAINING, TRAINING Training is fundamental to maintaining the high level of service that is the core of the company’s success, Campbell says, rather unusually identifying the organisation as a training body. “We recognise that we are a training organisation more than we are a franchisor or a coffee organisation.” The hospitality industry survives on 16| FRANCHISING JAN/FEB 2012

casual and part time employment, with college students and mums of school age children among the staff. Campbell understands that while working in a Zarraffa’s Coffee shop is not necessarily a career move, the company can play a role in boosting personal skills, and this has helped shape the training program. WWW.FRANCHISE.NET.AU

The average franchise turnover is more than $1m, and when he compares costs and profits, Campbell is confident that the Zarraffa’s Coffee system is holding its own in the competitive coffee/café marketplace. The 50th store opened late 2011. What Zarraffa’s aims to do is to unite two elements of a coffee purchase: customised product and convenience. “There are some really strong reasons why I think our brand is loved by the customers. We are a speciality coffee company, we want to serve an individual coffee that the customer likes every time, as conveniently as possible. We’re not a café, it’s not about food, it’s convenience. “Take what we’ve done in 10 years. Our 2020 vision is to be Australia’s and New Zealand’s premier coffee specialty chain. I’m never going to confuse the issue, I always want to remain different. I want to be innovative.” In 2012 keep your eyes on the radar, says Campbell. “We are looking to expand but to be considered about it. But once I push the button, I’m like a bull at a gate.” F


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Inspire| Franchisor

Kwik Kopy’s investment in IT is boosting franchisee support

UP IN THE K

wik Kopy’s awardwinning graphic design and print services has enabled Australian businesses to attract and retain customers, and increase sales for almost 40 years. But to do this effectively franchisees need quick responses to problems, and in a high tech environment, providing excellent IT support is an essential. Up until early 2011, Kwik Kopy’s Management Information 18| FRANCHISING JAN/FEB 2012

System (MIS) was managed by its internal IT team of five. But with a high volume of incoming support requests from its more than 100 centres, and a relatively small team, the process of managing the help desk was becoming increasingly cumbersome. C-Y Thew, business solutions manager, Kwik Kopy, explains lack of data and tracking facilities in the incumbent customised system was holding back service improvements. “It was really

WWW.FRANCHISE.NET.AU

difficult for us to gauge just how busy the IT support team was becoming and whether we were providing them with the level of resourcing required to service our franchises efficiently and effectively.” The business wanted clarity amongst every team member on the tasks that had been assigned to them. It also sought a system that would allow the management team to have a quick overview of outstanding issues.


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The solution was a cloudbased system that functions entirely online so there is no need for users to install the product, no maintenance and no upgrades required. In supplier trials the Zendesk system received only positive feedback. Ease of use with just minimal training added to the system’s appeal. “Most importantly, it saves us time and money and enables us to have a much more transparent and intelligent view of our customer support. For our business stakeholders this has proved invaluable,” explains Thew.

Flexible, easy to use and fast, instant access “The beauty of Zendesk for our particular business model is that it gives us the ability to ensure we support each store equally. Because we can prioritise easily, we can also identify problems quickly. There

is more visibility for the amount of support that we, the franchisor, provide. Our franchisees can see that we are delivering fast and effective issue resolution and support,” says Thew. “Each of our five team members has a different support

function. For example, if one of our Kwik Kopy franchisee stores contacts us in the head office, we log them in Zendesk. It may be a question, problem or request that they have for their MIS system to be looked at. Once it is logged

Kwik Kopy franchisees can spend less time problem-solving and more time building business

>> continues on page 23

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JAN/FEB 2012 FRANCHISING | 19


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>> continued from page 19

in, a ticket is raised and we are able to action it – we assign it to a relevant team member for the task to be resolved. At the end of the month, we then generate reports to see which categories have the most tickets, and which team member has resolved the most. This allows us to plan resources in line with business needs or to provide training to a particular Kwik Kopy store if there are many issues logged against it.” Thew explains there had been no data to track such information. “We now have the ability to search previous issues easily, which takes the guess-work out of support.” Thew describes the cloudbased solution as a one-stop-shop, an effective shortcut to service, condensing information that would otherwise be accessed by emails and phone calls. The team works to a same-day response time, so on a practical level the system provides IT team

members with easy access – there is no extensive server security process, and the system loads quickly, adding to the efficiency of the process.

increased. “We’re finding it’s on par with before, because people are more savvy and use the technology themselves anyway,” says Thew.

It gives us the ability to ensure we support each store equally ... we can also identify problems quickly. There is more visibility for the amount of support that we, the franchisor, provides The cloud-based structure also means there is no installation to worry about and no servers to fix or plug in. Most support is software and product based and for Thew, with web to print responsibilities, the support is effectively training franchisees in how to use the system. Kwik Kopy has just started to monitor through Zendesk whether, with the widespread use of technical tools such as the iPad, the requests for IT support have

Future forecast When Kwik Kopy first started using Zendesk it mainly used it to log issues that had been resolved. The team has since moved on to use it in real-time to log issues that are being worked on, and exchange notes between team members. As workloads increase, the vision is to roll it out across its network of franchises so that they can log their issues through Zendesk directly. Thew expects this to take place within the next 18 months. F

Recurring Revenue!

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JAN/FEB 2012 FRANCHISING | 21


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I SPY

Spyware is the name of the game for expanding Australian franchise OzSpy and founder Craig Mitchell is on the lookout for motivated and business savvy new recruits

A WATCHFUL EYE

C

raig Mitchell, co-founder and franchisor of spyware franchise, OzSpy, is the first one to admit that the launch of his company wasn’t nearly as successful or exciting as he would have liked. Thankfully, more than a decade later, people have become seriously desensitised to the new technologies that seem to be popping up every day, and they’re also more conscious of their security and privacy, so the outlook for OzSpy is much more promising, with 11 stores up and running and hopes for another nine by the end of the year. “We launched the concept, OzSpy, about 14 years ago and we traded for about a year or two, with great difficulty actually, because we found that the Australian society wasn’t ready for the concept. “But after a couple of years the name started to get around and people accepted it. We went from standing around doing very little, to having nearly 10 staff in a little shop and not being able to keep up,” says Craig. The concept that Craig believes people are now much more accepting of is spyware – everything from pens and watches with in-built cameras,

to very complicated, multifaceted home security systems. And while most people automatically associate spyware with sleuthing, Craig says OzSpy customers are just as varied as the products he sells, including students, lawyers, tradesmen and children wanting to record personalised Youtube videos. Craig says, “A really important part of the business is our business to business, and that’s anything from a handful of cameras in your local milk bar all the way up to industrial systems. We do a lot of government work and some of our clients include Queensland Rail, Dream World and Movie World. “We also specialise in helping franchise systems with their security because we’ve got such a strong understanding of the franchise model. Then we’ve got our DIY security, and home security packages – that is very much a growing market.” Of the existing 11 stores, nine are franchise owned, and Craig is convinced that the frachising model is the best one to ensure consistent and profitable growth. “We always liked the idea [of franchising]. We always wanted to have a lot of stores, and we were open to the

sarily People who are interested, not neces ng for technology is what OzSpy is looki

concept of franchising because it brings in fresh blood and new ideas, and I suppose, after a while, it really picks up the business. So that’s why we chose the franchising path,” he says. In order to drive franchisee recruitment, OzSpy has made adjustments to stock management and store fit-out to cut the initial investment required to approximately $150,000. “When we first did our retail fit-out it involved a lot of plastering, a lot of electrical

WWW.FRANCHISE.NET.AU

experienced, in

work, and so over time we’ve found that to be a little bit of a barrier for people, so we’ve gone back and had it re-designed as a modular, clip together fit-out. “The old fit-out, not only was it very expensive but it used to hold up the franchisee getting up and running by a couple of months. Now we’ve got the new system and that knocked $15,000 to $20,000 straight off the price,” says Craig. OzSpy has also done a deal with Australia’s key suppliers JAN/FEB 2012 FRANCHISING | 23


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to the spyware industry, reducing its reliance on imports and cutting about $14,000 off the required stock holdings. “And then we thought about keeping our franchisee fee in line, percentage wise, with the rest of the costs, so we dropped that a little bit. So it’s not actually a discount. With the changes in our system and some reďŹ ning, it’s the new value.â€? This new value won’t last too long though, Craig says, with costs likely to rise once OzSpy reaches its 20 franchise milestone.

Tech Talk While spyware and gadgetry might seem daunting and quite niche to potential franchisees, Craig is adamant that most people will be able to get a handle of their business relatively quickly. “A lot of people are concerned with the security

aspect because it sounds technical, but it really isn’t. It’s probably no more technical than selling washing machines,â€? he says. “We handle all the branding, we handle the website, we handle a 1300 number nationally. In the last three or four years I can’t remember a franchisee that hasn’t broken even within the ďŹ rst couple of months.â€? A typical day for an OzSpy franchisee would involve arriving at their shop, dealing with any emails or leads that have been sent through overnight, dealing with retail customers and possibly also going out and doing commercial quotes. “Going back a decade or so, when everything was hand-made, a basic electronics understanding was critical but now all the installations are handled by sub-contractors,

es the franchisee $15,000 to The new OzSpy ďŹ t-out sav

all the equipment is very similar to any electrical product, it’s all nicely boxed, it’s all plug and play, it’s all very simple. “And nowadays the average consumer is a lot more computer savvy as well, so even the support side is reduced... so we don’t really need to worry too much about industry or electronics experience,� explains Craig. Motivation is the key to

$20,000

success in any business, he adds, so the key criteria for OzSpy franchisees are a positive, can-do attitude, an understanding of business and an interest in technology. “We like people who are interested and have a bit of a passion for technology in general. But what we’re really looking for is people who have a bit of business acumen, people who are looking for an opportunity.� F

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Inspire|Franchisor

HANDS ON, HARD WORK THAT

With proven success overseas, Luis Nevares has brought the hand sanitising dispenser business model to Australia and while he is excited about the opportunities here, he says slow and steady growth is best

CLEANS UP O

ften the appeal of owning a mobile franchise or one that doesn’t have a bricks and mortar shopfront is that you will be able to work flexible hours of your own choosing, where you can squeeze in a couple of hours of admin or marketing when the kids are watching TV. This might be the case for a number of franchise systems in Australia, but it certainly isn’t for StayClean Hands, an Adelaide based franchise which distributes automated hand sanitising units in shopping centres and supermarkets. Launching its first companyowned territory in August last year, founder Luis Nevares is on the lookout for franchisees committed to expanding their

StayClean Hands’ founder, Luis Nevares

business to business approach and the day to day tasks for the franchisee will be to approach new inquiries … generate new inquiries and attend to those inquiries, as well as putting

I’d like people that have business experience, that have owned their own business before or are proactive; people with entrepreneurial characteristics. I don’t want reactive people that need to have their hands held individual territory and growing the brand across the country. “Maintenance [of the machines] is not something that is very demanding. This is more about creating business and developing the business. It’s a 26| FRANCHISING JAN/FEB 2012

proposals forward and signing the contracts, then doing the installation of the units,” explains Nevares. “I’d like people that have business experience, that have owned their own business before

WWW.FRANCHISE.NET.AU

or are proactive; people with entrepreneurial characteristics. I don’t want reactive people that need to have their hands held. I want energetic people that can foresee future trends and that are not afraid to go out and talk to people.” Slow and steady growth is the key to StayClean Hands’ longevity, Nevares says, and that’s why there is currently only one territory available in each state and why franchisees will not be able to become multiunit owners until they prove themselves as profitable and committed single unit operators. “We’re conservative. We want to be certain of what we’re doing. We want to make sure that our


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Inspire|Franchisor

franchisees are successful,â€? he says. “Any franchisee has to start with one and prove themselves, and then, based on merit we can discuss multiple territories at a state level. We’re not ooding the market.â€? One territory will cost franchisees $80,000 plus GST, and for that they will get 150 hand sanitising units, an exclusive territory based on business numbers in the area, training and the business’ intellectual property, including contracts, systems and the operations manual. “We will also organise the launch of the business. We launch it in their speciďŹ c area through a mail-out campaign and we provide them with leads and the initial contracts to go and start contracting the units,â€? says Nevares. “We have KPIs [key performance indicators] for the franchisees based on our own experience and we will expect the same performance to be replicated.â€? Despite StayClean Hands’ controlled growth, Nevares hopes to have close to 40 territories across the country in close to three years. “In the ďŹ rst year, starting from January this year, we’d

like to have ďŹ ve franchisees nationally, depending on demand. If we have a very strong pull from the market we’re not going to let it go. By the second year we expect to have more than double that, I would say between 14 and 16 in total and then in the third year we expect to be at 35 and above.â€? StayClean Hands was born after Nevares travelled overseas and saw similar units in the US, Hong Kong and Singapore. Now, he is adding another interesting element, and another revenue stream, to the business. “Our dispensers come in three different models, two of which have a display area. Our strategic partners in America have developed a very good advertising model in that display area. They have 16,000 units in the marketplace and they have advertising in most of them, and it sells really, really well. “It’s interactive advertising because people spend about nine seconds seeing the machine, using it, and rubbing their hands and during that they’re reading what’s on display. So if you can image a hand

B. Morrison, representitive from StayC lean Hands’ US strategic partners, with Nevares

sanitising unit at the entrance to a supermarket, that represents a prime advertising opportunity,� says Nevares. The business is in the process of talking with a media agency and Nevares says the advertising space will be rolled out very shortly across the 50 units that are already installed in Adelaide. “They [the media agency] are very interested because we have supermarkets and shopping centres associated with us, places with great exposure. They want us to go into hospitality as well, and if we can place machines inside pubs and hotels that will be something that they’ll jump at straight away.� A bonus for franchisees

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is that it will be the franchisor’s responsibility to source advertising for the dispensers, although they will still be entitled to a percentage of the revenue it creates. However, Nevares reiterates that StayClean Hands franchisees mustn’t rest on their laurels if they’re going to be part of this new opportunity. They need to create their own success. “We are looking for serious business people who are looking to establish the franchise and then grow it in time, and not be content with having their 150 units out there. This is a concept that is growing very fast and will grow very fast in the next 24 months, so we want to capitalise on the growth.� F

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28| FRANCHISING JAN/FEB 2012

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Opportunities|Healthy eating

30| FR 30 30| FFRANCHISING FRA RANC RA NCH CHISSING JA JJAN/F JAN/FEB N EB N/F E 2012

W WW W WW W.F .FR FRA FR ANC AN NCHISE.N NC HISE HIS E.N .N NET. T.AU T. T.AU AU WWW.FRANCHISE.NET.AU

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Healthy eating|Opportunities

A BETTER BITE OF

BUSINESS Healthy eating is here to stay and suits those investors who have a taste for great ingredients

I

f you walk around any major food court today the choices are just as likely to include a juice bar, salad counter and sushi offer as the traditional burger and fries or pie shop. Healthy eating really is part of today’s takeaway culture and it’s about so much more than just a tuna pasta salad and a piece of fruit; taste, food quality and innovation all count. Choice is the byword for the fast food sector, which is seeing some regulation set to help educate the consumer about what they are eating. Because it’s not as simple as chomping on a salad rather than biting into a burger. Fat, fibre, sugar, kilojoules, salt,

gluten... working out just what is truly healthy takes more than a quick glance at a menu board. While core ingredients might be low in fat, sugar and salt, add a tasty but high fat sauce and the nutritional dynamics change. The new managing director at

fried veggies can be healthy they might have more fat than a Big Mac.” Richard Garraway, consultant at The Franchise Shop, which counts the EnSalada franchise

We believe in producing all our food in store, with fresh quality ingredients, using local seasonal produce where possible Healthy Habits, Merrill Pereyra, brings decades of working overseas with McDonald’s to his new role. “I found a lot of people think a salad is healthy, but while a Caesar salad or stir

among its client list, agrees. “The whole healthy food arena can be quite misleading. A lot of companies claim it through the way they present, without saying that they’re healthy, because

Healthy Habits has made a name for itself serving up freshly made sandwiches

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JAN/FEB 2012 FRANCHISING | 31


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Opportunities|Healthy eating

Fresh ingredients are part of the Sumo Salad philosophy

they’re not. You can get a salad that has more calories than a burger. They’re still calories that you eat.” That’s where the mandatory kilojoule count on menu boards at quick service restaurants goes some way to help inform the hungry customer. And more and more franchised networks are providing nutritional guidance to steer the customer to the meal that suits them. So with information to hand and choice at the counter, customers can pick how to

F I CE OF

Our philosophy on healthy eating is simple, we have no hidden secrets. We make every burger fresh to order on the flame grill right in front of our customer consume the calories, the fat and sugar levels, or whether to add the extra salt. Franchises that offer an alternative to the standard fare can carve a niche in the marketplace, catering for Australia’s expanding tastes. “I think when people are looking to purchase a franchise, they think about social and personal elements,” says Garraway. “People like to be associated

32| FRANCHISING JAN/FEB 2012

WWW.FRANCHISE.NET.AU

with something that’s doing the right thing, whether that’s a charitable industry or environmental, and companies are more conscious of their policies in these areas. “If you offer fresh or healthy, when people are playing the compare game, it will work in their favour.” The sector continues to attract recruits keen to upgrade their offer to meet the demands of consumers. What they offer and how they interpret healthy eating of course varies.

Ingredients plus For the Aroma Café chain, serving a healthy meal starts with top quality ingredients. Joe Camilleri, national operations manager, explains, “Even with 52 stores we believe in producing all our food in store, with fresh quality ingredients, using local seasonal produce where possible. All chicken is whole roasted, all bacon used is only eye bacon.” Food items like chicken schnitzel are grilled rather than fried. Simon Crowe, founder of burger chain Grill’d, says the brand maintains a holistic approach to nutrition. “We don’t just strive for low fat, low sugar at the expense of quality and flavour. We go for real foods with real flavour and believe nutrition is more than just a set of numbers.” Sumo Salad’s co-founder Luke Baylis agrees “People want healthy but don’t >> continues on page 35


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want to compromise on taste.” He is one of several franchisors who are taking the health aspect of their menus seriously, employing a nutritionist to analyse the dishes. “Everyone has different requirements. I do a triathlon so I want sustained energy but other people are looking for low kilojoules or low sodium, or they want to eat free range

and global trends drive local trends.” Brand new regulation across NSW and the ACT and proposed for Queensland is giving a clear focus to fast food chains with the mandatory display of a meal’s kilojoule count. “Regulation is a bit misleading because it focuses on kilojoules alone but it’s a step in the right direction. We want to take a more holistic

We have a good relationship with Aussie farmers, with an approach of gate to plate or organic meat, or want high fibre. There’s not a one size fits all.” Carly Taber, national marketing manager at Pacific Retail (a group which includes Go Sushi, Wasabi Warriors, and Kick Juice) defines healthy eating as “something that meets the customer’s nutritional needs based on what their body wants or needs to stay well. This may mean that the food contains protein, is low in fat or is a good source of omega 3.” “Everything goes through phases,” points out Baylis. “It’s been carbs, GI, sodium. We need to be up-to-date and with trends. Regulations

approach to educating the customer. This is achieved through fliers, marketing collateral, the website,” says Baylis. The franchise is putting together a nutritional matrix that will inform the customer of their food choices, an essential process when the majority of consumers don’t clearly understand the kilojoule issue, he adds.

Better benefits Keeping the message simple is key, says nutritionist Georgie Moore who works with Sumo Salad to analyse its food for nutritional content. “We’re looking at the basis of Heart

and enjoy every day

Franchise opportunities now available nationally. For more information on joining Hudsons Coffee, call Carly on 03 8631 7710 or visit hudsonscoffee.com.au/franchising

A chicken plate at Ali Baba

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Wasabi Warriors

F Foundation, Diabetes Association, and other A rregulation groups rather tthan write our own standards and give a confused message.” Moore gives a complete nutritional breakdown of Sumo Salad’s recipes developed to budget restrictions. But there is more to the menu

36| FRANCHISING JAN/FEB 2012

than cutting out or reducing ingredients. “It’s important to offer a great taste and flavour,” says Moore. Middle Eastern and Mediterranean food franchise Ali Baba has also turned to a dietician to endorse its newest line up of dishes: Joanne Turner says the franchisor has reduced its sodium content in kebabs, offers different portion sizes, and is using good quality oils to reduce saturated fat. Robert Marjan, Ali Baba’s managing director, says “As a company we’re forever developing our product ranges. The market is ever changing in its approach to health and everyone is more mindful.” Serving up a high quality meal is a balance between good ingredients and cost of goods and this is when the benefits of being part of a franchise network that can finance the development are obvious says

WWW.FRANCHISE.NET.AU

My vision is soup, salads, smoothies and sandwiches. I’m still trying out the idea of soup Baylis. “It’s a very expensive process with huge compliance costs, it’s very costly to analyse nutritional values. Smaller organisations are disadvantaged by the costs and would find it hard to meet the resources.” So what does 2012 hold for the franchises in the healthy eating arena? More taste options to tempt the palate are on the menu, as are outlets in as yet underdeveloped locations, particularly in regional areas.

Sumo Salad It’s important that Sumo Salad’s menu offers updated choices for regular customers, so the >> continues on page 38


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Pacific Retail

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summer and winter menus are released in tiers to ensure that allimportant variety, with freshness absolutely key. “We have a good relationship with Aussie farmers, with an approach of gate to plate. Lettuce is harvested, washed three times at the farmers, then delivered to

No-one owns the Middle Eastern and Mediterranean category. There’s a gap in the market and we want to be first in the store with the aim of giving Sumo Salad the freshest produce,” says Baylis. Next year the franchise team is focusing on organic store growth and on taking more market share in the food court environment from providing a better offer. There will also be expansion into sub-regional areas; the Mildura outlet which opened last year is “doing unbelievable numbers” says Baylis who is now looking at country towns with populations of 30,000 or more to locate high street outlets with a sit down offer.

Readily available information for customers who might want it is a priority for the Pacific Retail brands: the grab and go, fresh and healthy chain Go Sushi; Wasabi Warriors, a high quality fast food sushi brand with a focus on doing good as well as eating well; and Kick Juice Bars, which offers customers super fresh juices, made fresh to go. “We’ve had a great response to the launch of our Go Healthy Go Fresh Guide, which shows customers the nutritional facts and health benefits of the products,” says Taber. “We are also seeing growth of this market into regional areas, where healthy food options may have not been previously available.”

Healthy Habits With a new head honcho onboard, Healthy Habits will be undergoing a brand review, and in June, Pereyra aims to launch the new model. “My vision is soup, salads, smoothies and sandwiches. I’m still trying out the idea of soup,” he adds.

Grill’d Transparency is important at Grill’d, from the food preparation to philosophy. ���Our philosophy on healthy eating is simple, we have no hidden secrets. We make every burger fresh to order on the flame grill right in front of our customer,” explains Crowe. “The grill gives our food its unique flavour and it’s healthier than using a hot-plate. We provide our

DOUGH ON THE GO What about your daily bread? Bakers are keeping up with the healthy trend too. The biggest innovation at the Brumby’s business has been the Pure Bake line, explains Tracey Catterall, chief marketing officer. This range of 170 items is based on providing food free of additives and it crosses the wholemeal, white and multigrain bread options. It took six to 12 months to find a bread with increased shelf life but lacking the additives that concerned consumers. The marketing campaign to educate consumers about the new offer included a television report on Today Tonight, letterbox drops, store information – all with the message: no artificial ingredients, no preservatives, no worries. “I can’t quote numbers but the figures are up. It is showing health is important to consumers,” says Catterall. And she believes that brands that ignore this market are missing potential business. While Brumby’s is known for its bread, sibling brand Go is the convenience platform, targeting office workers on the go. “Health and convenience are drivers for this brand, which is affiliated to Brumby’s, so the customer expects a fresh product. Sandwiches are popular and some stores have salads. Some Go stores sell bread. There are quiches and pies. The brand has choice so people can make up their own minds. “From a franchisees point of view, they have a selection to suit the consumer, whether that choice is indulgent or healthy.”

38| FRANCHISING JAN/FEB 2012

customers with a host of healthy options including salads and build a burger where customers can choose what ingredients go into their burger. “Many people love burgers but have been forced out of the category due to other companies giving the burger a bad reputation. Grill’d is legitimatising a favourite meal in a contemporary, healthy manner.”

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Merrill Pereyra, managing director, Healthy Habits

One of Pereyra’s first moves when he joined the sandwich bar business was to employ chef Lesley Bailey, who also has global brand experience from Cathay Pacific and McDonald’s. Pereyra’s brief to Bailey is to come up with innovation. “I’d like a customer to come into the stores and get chicken with a sauce that’s exclusive to Healthy Habits.” He would also like to develop a gluten-free option. So there’s a new menu coming up to help take the 19 year-old brand to the next level of trading across Australia, and beyond. Whatever the new model will look like, maintaining a balance between franchisor, franchisees and suppliers is the foundation to the business, Pereyra says.


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Ensalada

Ali Baba

For franchisor Simi Mukherjee, it’s all about serving top quality, fresh ingredients in dishes prepared by professional chefs. “There’s a choice of 14 mouth watering salads, fruit salads, our own freshly made Greek yoghurts, soups and wraps,” he says. “Quality, flavour and presentation are the three ingredients to my kitchen,” adds head chef Jean Philippe Kersetenne. There is something on the menu for everyone, from the calorie conscious customer to those wanting gluten free, dairy free, or a fresh and delicious salad. A nutritionist has designed meal plans which are available on the website www.ensalada. co.nz and also provides a free email service for specific questions as well. This New Zealand based business is now franchising in Australia through The Franchise Shop.

Catering to wider consumer group and all ages and health conditions is the driver behind an invigorated menu, at Ali Baba, Robert Marjan says. And on the menu are low salt items, gluten free options, low fat choices, kids offers and salads. “We are actively developing kebabs with at least 50 percent less sodium than what we have offered before. It’s in line with retailers who are conscious of these nutritional problems.” There’s been a focus on food sensitivity too, with a couple of gluten free products introduced, and others in the range which will suit those who buy gluten free as a health choice. High fibre salad choices reflect the Mediterranean cuisine: Moroccan couscous, pearl couscous and pumpkin and tabbouleh. Price remains an issue for consumers but Marjan is confident the new menu, and new look restaurant, have “nailed it”.

Mediterranean tastes at Ali Baba

A new concept store with a footprint of 120 to 150 square metres in suburban strip locations will cater for a family casual dining experience at quick service restaurant prices, he explains. “We’re a one-stop shop for the family,” he says. The concept stores to be unveiled in the second quarter of 2012 will also include an oven to bake bread onsite. “No-one owns the Middle Eastern and Mediterranean category. We’re not burgers, or chicken or Subway. There’s a gap in the market and we want to be first in.” F

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Opportunities|Hairdressing

AN ESSENTIAL

While the retail scene has been dented by the strength of the Australian dollar and the online shopping boom, hairdressing remains a retail-based service that stands apart‌ though it faces its own challenges. By Donna Bennett

LUXURY 40| FRANCHISING JAN/FEB 2012

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T

hanks to the laws of nature, hairdressing is a recurring revenue stream and requires ongoing maintenance; basically a necessary treat. Sure it’s a discretionary service, which means industry revenue will always be sensitive to movements in household disposable income, but generally people take pride in their appearance and if they can, will pay for someone else’s expertise to help them look their best.

Loyalty to brand vs hairdresser The name Franck Provost is behind the success of 650 salons across 30 countries, with a collective mission to enhance natural beauty with the latest techniques, styles and trends from Paris. Jean-François Carré, master franchisor for Franck Provost Paris Hair in Australia, believes the principal challenge in hairdressing today is securing customers’ loyalty to the salon and brand, rather than to an individual hairdresser. “The key advantage of a branded business like Franck Provost Paris, with a concept, standards and recognition, is to make the clients loyal to the business and not to the operators,” says Carré. “We provide proven and powerful commercial and marketing tools to recruit new clients and develop loyalty and visit frequency.” Hairhouse Warehouse, 2011 winner of the Established Franchisor of the Year in the Westpac FCA Excellence in Franchising Awards, prides itself on individualising every consultation. That way, customers realise each visit means a stylist spends time with them, understanding how they feel about their hair. A loyalty program that rewards customers for ongoing business also assists with repeat business.

Blow Dry Bar has created a niche by specialising in a particular service

Franck Provost has 650 salons across 30 countries

Most women enjoy some down time in a salon; a glass of complimentary champagne and some girly magazines Specialty services A trip to the hairdresser can result in a big shock when it comes to paying when there are separate charges for shampooing and conditioning, cutting, colouring, treatments and blow-drying. Just Cuts Franchising and Blow Dry Bar are two franchises that have built their clientele on initially offering one hairdressing service at a reasonable flat fee. As the name suggests, Just Cuts’ specialty is cutting hair; whether the client has a trim or a completely new hairstyle, the price is the same. Similarly, Blow Dry Bar’s forte is blow-drying any length of hair at a fixed cost. Even

though the businesses incorporate other hair services and fixed price packages, their success seems to be largely due to concentrating on one main offering at a set charge. “Before entering the hair industry I identified a need to differentiate our company from traditional hair salons, so Blow Dry Bar created a niche for ourselves, specialising in a particular service (blow-drying) and being the best at it,” says Nathan Cuneen, managing director. “Also, concentrating on volume and repeat business, rather than higher profit margins per service is key,” he adds. Denis McFadden, CEO

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FRANCHISEE SPOTLIGHT ON JUST CUTS Name: Rhys and Carla Wildermoth (QLD) No. of franchises: Two – The Pines Elanora (2005) and Burleigh Heads (2009) Previous experience: Carla managed the first franchise prior to buying. Her hands-on salon experience was very valuable in the day-to-day running and management of the team and clients Staff: 14 casuals and one full-time operations manager Challenges: Seeking out new and fresh ideas for local area marketing; keeping the team motivated; making work fun for stylists; and gaining new clients Why Just Cuts? We provide the best service and the highest quality style cuts Tips for franchisees: Be driven, motivated and willing to work with and encourage their team every day. Remind yourself that “success is never your right. You need to work for it” and founder of Just Cuts Franchising explains, “Just Cuts offers our clients the convenience of being everywhere, a quality style-cut at an affordable price with no appointment necessary.” He says this includes a written satisfaction guarantee. “Human beings are creatures of habit and most of all they get consistency with no surprises at Just Cuts.”

Mobile services and DIY Mobile hairdressing businesses and at-home products can be viewed as a cheaper alternative but do they pose a 42| FRANCHISING JAN/FEB 2012

WWW.FRANCHISE.NET.AU

real threat to hair salons? McFadden reveals, “Latest industry reports claim only 15 percent of people colour their hair in a chemical salon; we were stunned by the number who colour at home.” Many Just Cuts salons choose to stock home hair colour Crema for this very reason. He agrees that people are time poor and want better value for money. “Colouring at home is a great saving for families and individuals. I believe the stigma has changed and people happily colour at home.” However, McFadden points out mobile services do not harm Just Cuts. “With about 80 percent


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FRANCHISEE SPOTLIGHT ON HAIRHOUSE WAREHOUSE Name: Lube and Lena Markovski (NSW) No. of franchises: One – Wollongong (2010) Previous experience: Business and franchise experience but not hairdressing Staff: Six full-time and three casualss Challenges: Biggest initial challenge – no salon experience; normal day-to-day business challenges such as staff and controlling costs Why Hairhouse Warehouse? It’s an established brand, it has strong operational processes and procedures, great customer service and a range of products, plus strong customer brand engagement Tips for franchisees: Work hard. “Love your team, love your customer and love your brand”

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Franchise & Commercial Lawyers

44| FRANCHISING JAN/FEB 2012

of their business being colour services, it does not really affect us as much as [it would] a full-service chemical salon.” Carré stresses that neither are a threat but that they are two different markets. “At Franck Provost, guests don’t only come to have their hair done but also for the service, the atmosphere and the experience they will have in the salon.” Cuneen agrees, “We have not noticed a drop off, we make the entire experience of visiting a Blow Dry Bar salon memorable.” He says it’s not just about great hair, “Most women enjoy some down time in a salon; a glass of complimentary champagne and some girly magazines.” WWW.FRANCHISE.NET.AU

Hairhouse Warehouse says industry data indicates more customers are stretching the time periods between visits but that even in tough economic times, they still want great looking, healthy hair, and value for money. Each customer experience is tailored to their specifics needs, so they walk away feeling and looking their best.

Staff retention and expertise Customer loyalty continues to be adversely impacted by the high rate of staff turnover in hairdressing, and it’s a global issue. “At Franck Provost, hairdressers are part of an aspirational brand, receive


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Hairdressing|Opportunities

ongoing training on the concept, latest collections and techniques from Europe, and work in a fun and friendly environment, which is at the core of the Franck Provost culture,” Carré explains. “So the staff retention rate is much higher at Franck Provost than the Australian average.” Offering unique skills across a brand assists greatly in this regard. “At Franck Provost, the brand image and recognition around the world attracts good hairdressers, many of them French or European and mastering specific techniques.” says Carré. “There is also ongoing training on the latest techniques from Europe so they keep improving all the time.” “Recruitment and retention of staff is only an issue if our franchise owners fail to grasp the fundamentals of managing teams,” says Dean Salomone, franchise manager, Hairhouse Warehouse. “Our recently

launched leadership program has a dedicated HR component to it and we are already seeing the benefits of this type of ongoing education.”

Site rentals McFadden says that once the rent is known, Just Cuts understands what is required for the rest of the business model to work in a shopping centre. “We have the formula and measure the numbers; at times we have moved out of shopping centres because the demographic has changed or the number of visits to the centre has changed for various reasons.” He says even though shopping centres in Australia have low vacancies and people are prepared to sign a five-year lease, rents remained high compared with the rest of the world. Blow Dry Bar tends to stay away from “ridiculously high” shopping centre rentals, although recently

just designed its first kiosk style outlet. It is only 25 square metres, but still can produce extremely high turnover, with lower asking rents, says Cuneen. James Mariani, national leasing manager, Hairhouse

We provide proven and powerful commercial and marketing tools to recruit new clients and develop loyalty and visit frequency Warehouse, explains it’s always a balancing act between sourcing quality sites with rents that fit within the financial constraints of its business model but Hairhouse Warehouse is in a fortunate position. “With our 130 plus stores we hold the head leases, which allows us much more bargaining power than an individual business owner.” F

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Let us complete the next piece of your puzzle...


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Cappuccino Xpress Mobile coffee vans delivering premium quality coffee (Vic/Qld)

Kubarz

Stylish mobile beverage and bar catering services

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Building services|Opportunities

If getting hands on in the world of construction sounds just right for you, what skills will you need? Sarah Stowe reports

BUILDING A FUTURE W

hen the desk job no longer appeals and turning physical labour into a money making venture seems the obvious solution, then it’s time to look at just what’s involved in investing in a business opportunity in building services. Whether or not you will need to come to the business with a list of practical skills will depend on the particular system you choose.

At Spray Pave, attention to detail and commonsense are key attributes that business owner Chris Bylhouwer looks for. And there’s a certain level of physical fitness required to manage the equipment used. “It’s a trade business with light physical work. The guys handle machinery like a mixing drill, which is like a heavy duty drill that weighs about three kilograms. They hold a hopper

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gun which sprays the product and when full it can be five or six kilograms. “That’s about it in terms of the required skills. We’ve had IT workers and schoolteachers and we’re geared to handle the training.” The job doesn’t necessarily require computer aptitude either; Bylhouwer says many licensees work with a hand-written cashbook, though Spray Pave JAN/FEB 2012 FRANCHISING | 49


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Opportunities|Building services

does outline the value of, and how to work with, a relevant accounting software program. As many of the jobs will involve decorating driveways, it’s a benefit for licensees to understand how to choose colours and patterns and advise customers on their choice. The work entails both indoor and outdoor treatments, from polishing and staining concrete to epoxy application and spray painting. “Over the last two to three years we’ve geared up more for indoor work so it gives the licensee work all year round.

the main trades and include services such as waterproofing concrete, cleaning concrete and tiles and treating surfaces with non-slip properties. The extended services give licensees an opportunity to upsell, says Bylhouwer. “We promote the business as a lifestyle issue, you can have a range of trades and services. We have one guy with three guys and

We promote the business as a lifestyle issue, you can have a range of trades and services Otherwise it can be a seasonal opportunity.” The work is not just domestic; increasingly commercial clients such as chemists and fashion retailers are turning to concrete treatments to enhance and maintain their concrete environment. Even airports have been on the client list. The minor trades are essentially add-ons offered with

four cars on the road, and one in Perth who is 74 and just does spray paving for a couple of days a week.” There are no elements of control in the business, he says, even down to the use of the Spray Pave name being optional. The full package includes equipment and a trailer. The full license costs $49,000. Most licensees choose the $37,500

DIG THE EXPERIENCE No experience needed. That’s the message at Jim’s Diggers, which handles a lot of domestic work, trenches, pipe laying, preparing for paving, landscaping, leveling and clearing. But while franchisees don’t need experience, operating some equipment requires a licence and this takes about two days of training for each machine and is outsourced to an accredited trainer. The application for the essential White Card can be done online. “Two day Jim’s training and two further days training are included in the franchise package. We’ll help set up an account, the new iPad app and assist with the business structure – it’s like a business in a box. We even help register the business,” franchisor Carly Thornton explains. “There are a lot of one-off customers and we work with franchisees on how to build a network. We need someone who is self motivated, turns up and looks at how they can improve the job, be proactive in giving advice to the customer. Someone who can be practically minded,” Carly says. People skills are essential because how franchisees present themselves for domestic jobs is really important to Thornton. “We need to know they will be respectful with mostly female customers.”

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option because they have either a trailer or some of the equipment themselves, and will purchase the extra kit they require. More than 200 licensees have gone through the five day training program, including two days working on site. But with the breadth of technical applications on offer, learning has to be continual. “We offer lifetime support – there are four trades and minor trades to learn, so you won’t learn it all in a few days,” says Bylhouwer. “As the jobs come in, we will provide ongoing support.” Jim’s Building Maintenance In the building arena the first hurdle in the skills event may be a trade licence, and the requirements vary from state to state. Theunis Terreblanche explains, “If you have no licence in Western Australia you can earn up to $20,000, in Victoria up to $5000, Queensland $3000 and in New South Wales just $1000. The only state you need a licence to do any work in is South Australia.” For Terreblanche, who heads up Jim’s Building Maintenance, experience is the most important aspect when picking a franchisee. Then it comes down to the individual. “We look at skills, personal skills, attitude, communication, what type of person they are. We prefer to meet the partner and see how they treat each other.” Jobs include building, tiling, ceilings, pergolas, decks and plastering. Going out on a job with a franchisee who will ask them to do some of the work and see how they use a power drill and a screwdriver is part of the pre-sign up process. Once onboard, the franchisor will spend time to get the skills


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BE A PART OF THIS AWARD WINNING BUSINESS! Lollypotz is an online and retail business specialising in hand made chocolate gift bouquets. One of Australia’s fastest growing franchise operations, Lollypotz currently has over 42 franchises in Australia, 3 in New Zealand and has further plans to expand internationally in the near future. We have franchises available for sale throughout Australia—and we are looking for hardworking and motivated people to join our team by becoming a Lollypotz franchise owner. We have a well developed system, website and National Support Office to support you and all Lollypotz franchise owners receive excellent training, induction and ongoing support. We are very proud of our growth and achievements at Lollypotz and were thrilled to have these achievements recognised at the recent FCA 2011 Excellence in Franchising Awards where Rosemary Harmata, Chatswood and Sydney CBD Franchise Owner was awarded the Runner-up in the Franchisee of the Year (less than 2 staff) Award and Louise Curtis, Lollypotz Franchisor was awarded Runner-Up in the Franchise Woman of the Year Award. For further information about this very exciting opportunity contact: Holly Beck 1300 565 597 franchise@lollypotz.com.au

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Opportunities|Building services

up to date or improved. “We work on a carpenter’s licence as it’s the easiest to get and it doesn’t matter what level you have,” he says. There’s plenty of help on hand, insists Terreblanche. “We assist in getting the licence, we offer advice and recommend TAFE courses, and enrol them in Housing Industry Association

them until they are satisfied the franchisee can do the job. “Most of those we sign up, about 85 percent, don’t have a licence. They still get work straight away.” Most franchisees will be dealing with residential clients, though there are some commercial accounts.

We assist in getting the licence, we offer advice and recommend TAFE courses or Master Builders who do workshops. These costs are additional for the franchisee.” If a new franchisee is interested in learning additional skills, then they have the opportunity to train on a job with another franchisee. If they have a little experience, the franchisor may go on jobs with

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Initially work comes to the franchisee through the national call centre, which fields every Jim’s group inquiry. Jobs are allocated according to how a franchisee lists themselves – available for work just in their territory, in the local area, or in all areas.

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The franchisee handles their own administration but in the first three months is provided with a bookkeeper who shows them how to work with BAS, and software like Quickbooks or MYOB. Terreblanche stresses the importance of having a partner in the office once work piles in, and encourages a franchisee’s partner to undertake a two-day training course on admininistration and how the Jim’s system works. A franchise cost of $31,000 includes a three-month bookkeeper, insurance, uniform and stationery. Franchisees must supply tools, but are advised to start with those they can work with confidently, then add to the list as their skills increase. “Our system is designed so they can select the type of work they want to do, ie brickwork. They can bring in subcontractors


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but the work guarantee is the franchisee’s responsibility,” says Terreblanche.

ProPit Absolutely no experience or building skills are required to join the established Melbournebased stormwater pit building business ProPit, which is just starting franchising. “In fact I prefer that,” says founder Rowan White. “That’s my prerequisite. Inherently, people in the construction industry have preconceived ideas. “You have to be reasonably fit, not a fitness fanatic, but also not afraid of physical work. “We teach them all facets of pit building and related construction work. How to build a pit, how to read site plans and drawings, how to read council, Victoria Roads and Melbourne Water standard drawings and specifications.”

Franchisees are bound by standard drawings. Some clients, such as Melbourne Water, require the pit builder to be an accredited contractor, but the contractors who subcontract the job to the franchisee may well have this legality covered. Franchisees do require the skills to market themselves however, so the right attitude is essential – and will bring in plenty of work through referrals, says White, citing his own fiveyear spell of business building which has required fewer than five phone calls for him to generate work. For instance, one job took two months, building 60 pits; another was a 15-pit construction job that took just 10 days. “Franchisees can expand the business with two utes on the road and four or five employees. Beyond that means purchasing a new territory,” he explains.

Franchisees get first right of refusal for a job in their territory. The cost for a franchise is $65,000 and this includes training, online and back-end support, a laptop, software installation, a sizeable tool kit, a uniform of branded shirts, and a one-day safety course for the nationally recognised White Card. Franchisees will lease a ute and trailer and pay $20,000 for the formwork – the panels that make the pit. F

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JAN/FEB 2012 FRANCHISING | 53


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Opportunities|Vending

Using a vending machine is a pretty simple task: insert money, collect product, walk away. And it seems operating a vending business can be just as easy: insert product, walk away, collect money. Danielle Bowling looks at what else is involved

THE CONVENIENCE

CAREER T

he vending industry, according to Luis Nevares, general manager of Austvending, is best suited to two different types of people. “One is the client that is a few years away from retiring and they have a vending business to have an option that will keep an income coming but without taking all their time because they want to enjoy retirement. The other one is the young entrepreneur, the guy that will see the opportunity, not just start a business and leave it as is,” he says. Regardless of which of these categories you fall into, vending offers a flexible lifestyle and a low maintenance business opportunity that can be managed from arm’s length and grown at your leisure. In many cases, vending businesses like Austvending aren’t actually franchised. The operator buys vending machines and everything needed to run them from the business, pays no annual fees but has ongoing support from head office. “We sell business opportunities. The very nature of the vending business makes the vending operator want to be an independent business operator,”

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Nevares explains. “We’ve found that people wanting to start a vending machine don’t want to buy machines, they want to buy a fully set-up business. “So we provide our clients with an all-inclusive approach to the industry by providing not only the vending equipment but also the vending machine locations, after-sale service in the form of technical support and we have a fully transactional online store where our clients can buy parts and machine stock.” And what does this stock include? Austvending has two different machine options available: bulk vending, which is mechanically operated machines selling novelty toys, nuts, healthy snacks and confectionary by the handful, and also electronic or traditional vending, which is the classic snack and drink machine selling soft drinks, packets of chips, chocolate bars and the like. While Austvending operators are encouraged to add to their raft of machines and find additional sites, the $75,000 which most operators pay to become a part of the business includes 50 bulk vending machines, the first fill of stock, training, delivery of machines WWW.FRANCHISE.NET.AU

and locations, which might include hospitality businesses, supermarkets, retailers like Kmart and Big W, hardware stores, hair salons and video stores.

Business from a distance RP Vending also distributes snack and drink machines across the country, placing machines for its operators in venues including factories, offices and warehouses. Director, Rod Austin, says one of the key advantages of working in the industry is the flexibility it offers. “Most people are doing it to supplement another income, or they’ve got spare time that they can do it in. And it’s not time consuming, it’s easy. It’s not rocket science. They can spend half a day a week doing it depending on the number of machines they’ve got,” he said. “They can also choose the level that they want to invest at. They don’t have to spend a lot of money. So they can buy three machines if they like rather than having to spend a couple of hundred thousand dollars to buy into a business.” Life is made even more relaxed for RP Vending operators thanks to its back


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Vending|Opportunities g pp

Vanity Bars help people to freshen up while on the run

to base monitoring system which allows them to check how much of each item is selling and which machines need replenishing, all from the comfort of their home. Austin says RP’s operators range from pilots to bank managers and uni students, with only 15 percent working in the business full time. And as you would expect with vending, what you see is what you get so it doesn’t take long for them to learn the ropes. “They’re not buying something they’re not totally familiar with. It’s simple business, not time consuming, they don’t have to spend a lot of hours on it, it’s not quite a passive investment but it’s certainly not time consuming,” he says. Redroom DVD co-founder, Daniel Joyce, agrees that vending operators have flexibility up their sleeve, but also warns people considering investing in the industry against assuming they can just sit back and watch the dollars roll in without having to work for them. “Vending can be a false economy. People think you can just put a machine out there and it works, but it’s not always like that. The more attention you give to a machine, the more you make sure it’s clean, the brochure holders are full, it’s got the right stock in it, the better your business will go. “We have a wide variety

Dan Joyce of Redr oom DVD

of people who approach us interested in opportunities and to be honest, a lot of people approach us with the belief that vending is a no-administration money maker, and I think that’s a real false economy; it’s a real falsity about vending machines. You spend a lot less on rent and labour, but the bigger struggle is actually getting people to use the business and keeping them, because you don’t have that relationship in-store,” Joyce explains. Redroom DVD distributes DVD movies to consumers through its three business models: stand alone vending machines, full service stores and mini-stores which include a vending machine plus a few browsing stations allowing machine users to select and p pay y for

d Austin RP Vending’s Ro

franchisees for the mini-stores. “If a franchisee comes to us with a good opportunity, a good space in mind and they’re a good candidate then that’s something we’ll look at,” he says. Like RP Vending, Redroom DVD offers its operators a central p

They can also choose the level that they want to invest at. They don’t have to spend a lot of money. So they can buy three machines if they like rather than having to spend a couple of hundred thousand dollars to buy into a business their movie before picking it up at the vending machine. While the company is about 90 percent company owned and Joyce would be hesitant to franchise the stand alone machines to new franchisees, he is open to recruiting new

database allowing them to check up on their machines remotely, but unlike other vending systems which let the machines speak for themselves, Joyce says Redroom operators need to actively market their machines. “It’s important that they’re

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JAN/FEB 2012 FRANCHISING | 55


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Opportunities|Vending

marketing the machine in their local area, so we market centrally and really actively to existing members but our operators might want to have a promo person on the machine or they might want to do local business partnerships to get people to use the machine,” he says.

Location, location Not only does Redroom DVD engage in promotional partnerships with other businesses in the vending machine’s vicinity, but according to Joyce, a lot of its vending machines are in shopping centres or convenience stores, making both the host outlet and Redroom more attractive to consumers. “It’s a win-win for both of us. Their customers are able to get

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DVD rental, so it’s a new service, and then all of our customers have to make a return visit to return the DVD, and of course people that rent movies are also buying ice cream and sweets for when they are matching a movie, so it’s a really complementary customer segment.” These mutually beneficial relationships are also a focus for Magazine Vending, which sells various ACP titles at a range of venues including train stations, shopping centres, airports, hospitals and TAFEs. Rather than having a close working relationship with the end user, who they rarely interact with, Magazine Vending operators need to manage relationships with both the host venues and also ACP, the publishing house which delivers the magazines to the operator, allowing them to only pay for the magazines that sell, and accept back those that don’t. At the moment, Magazine Vending operators keep 25 percent of what each magazine retails for, but as of this year, they will be given an opportunity to increase their footprint with more machines while at the same time decreasing their workload. Director, Cash Seiden, explains, “What we’re doing

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is offering our distributors an opportunity to have Magazine Vending machines placed within certain areas like shopping centres or hospitals where there’s a current newsagent, and they split the commission with the newsagent but they don’t have to service their machines. The newsagent does it for them. “If they’re happy to split their commission with a newsagent they can buy 10 machines and put them in an area and never, ever, ever have to go to them,” Joyce says.

The beauty buck Vanity Bar places vending machines in train stations, cinemas, universities and airports as well as club and restaurant bathrooms, full of various toiletries and beauty products, allowing users to “freshen up on the run”. Director Samuel Hamrosi is now on the look-out for new recruits, having improved the functionality of the machines so even less maintenance is required of the operator. “We wanted to wait for the new unit to be ready before looking for new franchisees because the new Vanity Bar doesn’t require any technical skills to own or manage. In addition, it’s quicker to restock as >> continues on page 59


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>> continued from page 56

sales data is quickly, easily and accurately transferred to an SD card. “In addition, it also holds up to 50 percent more stock of the top selling products, allowing the business owner to leave the Vanity Bars longer between restocks, reducing labour costs,” he says. At the moment there are five franchisees nationally, and Hamrosi says there are opportunities across the country for anyone that firstly has the capital (a franchise fee of $1500 and an entry cost from $18,000), but more importantly someone who is passionate about the business and the vending industry in general. “They’ve got to be excited about the brand. They can’t just be doing it for the money. They have to have a total passion for this type of work, because if they’ve got that then they’ll naturally be a good salesperson and will get venues, but if they’re doing it purely for the money then anything you do without passion will eventually burn out.” Sales experience isn’t required, but Vanity Bar operators must be happy to go out and talk to venues in their local

area about why they should host a Vanity Bar, as this is the operator’s key responsibility. They also have to invoice their clients quarterly with their commissions, and then either go and clean and restock the machines themselves or hire someone else to do it. Other than establishing that initial relationship with the host company and then paying them their regular commissions, Vanity Bar operators don’t have any ongoing relationships with

Magazine Vending operators only have to pay for the magazines that sell

“One of the great things about Vanity Bar is that it’s a flexible business model that can be made to grow with the lifestyle

You can start doing it part time and slowly grow it to a full time business, or go full time, work hard, grow it for a few years and then take it easy either businesses or the end-users, and that’s what makes it a low maintenance, low pressure opportunity, Hamrosi says. Operators also have the option to either grow at a leisurely pace or expand rapidly and earn the relaxed lifestyle they’ll enjoy later on. Regardless of which option they choose, most of the time they’ll be earning their keep from a distance.

and goals you want. You can start doing it part time and slowly grow it to a full time business, or go full time, work hard, grow it for a few years and then take it easy. “[But] everyday while you’re sleeping, while you’re eating, while you’re partying, your machine’s out there so if you don’t have time to go service it today, leave it for tomorrow.” F

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DRIVING FORCE

Why not steer your passion for cars into a franchise opportunity and get a green light for your own business, suggests Domini Stuart

E

arning a good living from something you love; for most people, that’s the ultimate career goal. If your passion is cars, a mobile automotive service franchise could throw in the benefits of being your own boss. Or you could even turn driving very fast into a lucrative business.

Superfinish Express Ask David Bruckshaw what he does for a living and he’ll tell you he paints cars – and that he loves it. “It’s exactly what I’d do if I had the choice of any career,” he says. “I’ve enjoyed a great lifestyle and made good money doing it and now I’m helping other car-lovers to do the same.” A sixth generation spray painter and the force behind Superfinish Express, Bruckshaw developed a unique, mobile system for repairing and rejuvenating paint work, plastics, alloy wheels, bumpers and interiors. “I took my first van to the streets in 1993, offering on-site repairs to the automotive industry,” he says. “They couldn’t get enough of it. We sold our first franchise just two years later and now have 43 franchisees operating nationally.” Richard Rule, who has a territory in Wollongong, New South Wales, likes putting his previous training and experience to good use. “I really enjoy the independence,” he says. “And

I also like the fact that I’m free to get on with the job without worrying about paperwork or chasing customers for payment. The accounts team at the national support office takes care of all that – and I get paid every week.” Bruckshaw says franchisees don’t need any experience: “we just look for people who are keen, enthusiastic and have a will to succeed.” Superfinish Express franchises start at $67,500 including GST for an exclusive territory. Franchisees also need their own commercial van; all other equipment, materials and training are provided. New franchisees get help with establishing a customer base and one-onone training in the necessary technical skills, followed by unlimited technical, marketing and field support. “We only service the trade,” Bruckshaw continues. “We’ve found that this creates repeat business and consistently high volumes of work all year round.” For Rule, another perk is working on iconic marques. “One of my most memorable experiences was

ess Superfinish Expr

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being asked to repair and paint the interior trim on a red Ferrari with just an hour before the customer arrived,” he says. “It turned out perfectly and I got to drive it. What a car!”

What Scratch?

Stephen Kuzmik loves being able to see the results of his efforts and knowing his customers will walk away happy. He also loves cars, so when he saw an advertisement for a What Scratch? franchise, it sounded like the perfect fit. “I get a huge amount of satisfaction from turning a sad, neglected-looking car into one that’s gleaming and happy-looking,” he says. “And it’s great to watch customers’ faces when they see the

transformation. I’ve had so many say they can’t believe the difference that I’ve made. I tell them I tapped their car three times with a joke magic wand.” What Scratch? was born 10 years ago when, like Bruckshaw, Matt Burke found a way to turn his love of making cars look their best into a successful mobile business. He, too, thought it would be a good idea to take his services directly to automotive dealerships. It was; he was soon adding van after van in order to keep up with demand. By 2008 he had decided to franchise and sold his first territory in Perth. Today he has 18

memora One of my mos asked to ble experience t s trim on repair and pain was being a t before t red Ferrari wit the interior he c h ju out perf ustomer arrive st an hour d ectly an d I got t , It turned o drive What a it. car!

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franchisees and four company vans spread across Western Australia and New South Wales. He also owns the exclusive local rights to a patented scratch repair system which doesn’t involve mixing or spraying paint. He says his biggest challenge has been managing the company’s growth. “We approach dealerships in a territory and start servicing them before the franchisee starts training,” says Burke. “Franchisees are then introduced to their customers over a minimum of four weeks’ one-on-one training. That’s very time consuming for us so there is a limit to how many franchises we can sell each year.” What Scratch? franchisees have ave the option of servicing private clients as well as building their

business with fleet work and more dealerships. “Our marketing and communications manager is available to support any marketing initiatives our franchisees would like to employ, but it’s up to them to decide if and how they want to grow,” Burke continues. Kuzmik was happy with his level of income within a matter of weeks. “I could earn more if I wanted but I prefer to work at a comfortable pace and enjoy a good lifestyle,” he says. Burke looks for franchisees who are physically fit, passionate about cars and have a positive, customer-focused attitude. They also customer-foc need an investment of $66,000 including GST and, again, their inclu own small van. ow He encourages people who are considering a franchise system to look at new brands and systems. “Modern customers just want their problem ssolved with the minimum of inconvenience at a fair price,” price he says. “We believe that franchisees franchise who do this well can’t go wrong.”

I could earn more if I wanted but I prefer to work at a comfortable pace and enjoy a good lifestyle

Nanotek It’s seven years since Jim Cornish launched an innovative waterless car cleaning system known as Ecowash Mobile – and he still loves what he does. “Every day is different and fun,” he says. Now known as Nanotek, the company has 130 franchisees across Australia and in 15 countries around the world. Cornish cites a continuous drive for improvement

What Scratch?

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The Nanotek HQ team: from left, Jim Cornish, Adam Stone, Sue Taylor and Elia Napiza

as the company’s biggest ongoing challenge. However, this refusal to settle is also fundamental to its continuing success. “It prompted the market research that led us to adapt the local system to overseas markets,” he says. “It also drove our pioneering use of nanotechnology and the development of the Nanotek brand.” A Nanotek franchise costs $51,700 including GST. Franchisees receive a complete turn-key business, induction training, ongoing support, exclusive products and a range of centralised business systems. The only other cost is a car lease. “We look for franchisees with entrepreneurial spirit and initiative combined with a team mentality,” says Cornish. “With Nanotek, you can either be passionate about the business or passionate about cars – but just be passionate, because that’s what makes the difference.”

You can either be passionate about the business or passionate about cars – but just be passionate, because that’s what makes the difference

$85,250, which covers full training, fitout, equipment, mentoring, an iPad and relevant software. The costs of an approved vehicle and working capital are the only extras. “The unique thing about ut our business,” says Darnell “is that everyone has minor damage to their vehicle at some time or other, and every satisfied customer knows friends, family or colleagues who also need the service. Every job that is completed to a high standard generates more work from satisfied and grateful customers.

Touch Up Guys Peter Darnell, franchise sales manager for Touch Up Guys, believes having a genuine passion for the business and a total commitment to quality work and customer satisfaction is the key to achieving financial independence and success. “Our franchisees are highly motivated because they transform damage to our customers’ vehicles in a matter of hours and have the satisfaction of instant positive feedback after every job.” Touch Up Guys’ services include high quality onsite repairs to automotive bumper bars, paintwork, plastics, and alloy wheels, and installing and colour matching reversing sensors. Most repairs are completed in a matter of hours. To invest in this mobile business will cost

Touch Up Guys

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This instills a passion for excellence in our franchisees because it is emotionally rewarding and sound business sense.”

Extreme Driving Twenty two years ago, Mark Haybittle was so determined to spend more time driving rally cars that he bought one, leased a track and started selling the experience. Today, with 67 cars in the Extreme Driving fleet and franchisees in New South Wales, South Australia and Victoria, he still gets to do what he loves every day. “Extreme Driving gives people a chance to get behind the wheel of a real rally car,” he says. “Customers take turns to drive under instruction then get a flat-out hot lap through the forest with the instructor driving. And, recently, we’ve added rallying on tarmac and racing V8 cars around a track, so there’s a wider choice for both customers and franchisees.” For the right franchisees, Extreme Driving really is a chance to live the dream. Since Haybittle started working on a franchise model in 2006 he hasn’t been short of very keen applicants – but his biggest challenge is finding people with passion who also have the ability to run a successful business and access to the necessary finance. Surprisingly, the one thing they don’t need is any special driving experience. “We can take someone with no experience and train them to the point where they’re not only good instructors but good enough to compete if they wanted to,” says Haybittle. For $495,000, franchisees get a turnkey operation including three fully-equipped Rally Drive Day Cars, a track to run them on, backup and training. While Extreme Driving is not one of the cheapest options, Haybittle says the income is well above that of a conventional franchise. “There is also huge potential tential for growth,” he points out. t. “If you want to expand you can buy more cars to run on the same track or take on another location. I can’t think of many businesses where you can make such a good living out of having so much fun.” fun. F

I can’t think of many businesses where you can make such a good living out of having so much fun

Extreme Driving

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PORTFOLIO While one site or store is just enough for most franchisees in Australia, there are a number of benefits – both to the franchisee and franchisor – of extending your reach and growing your portfolio in a brand. Danielle Bowling reports

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L

ess is more. The old adage has a lot of truth to it – think makeup, wasabi or fake tan. But when it comes to business ownership, especially in the franchising world, sometimes more is more, with franchisees often given the opportunity to expand their footprint within a company much more easily than they’d be able to in a nonfranchised business. According to Pricewaterhouse Coopers’ August 2011 Franchise Sector Indicator report, 11 percent of franchise units are owned by multiunit operators. Professor Lorelle Frazer, centre director and lead researcher at Griffith University’s Asia-Pacific Centre for Franchising Excellence says that while Australia’s number of multi-unit operators is relatively small (in the US more than 50 percent of stores are owned by multi-unit franchisees), it is increasing and this is because franchisors are starting to recognise the value of expanding from the inside out. “The major driver for them is the small pool of available franchisees when recruiting. Franchisors state that this factor is their greatest hindrance to growth – being able to attract enough suitable franchisees. So they have the opportunity for growth, just not the people and a good way to overcome it is to use your existing franchisees,” Frazer says. She encourages potential franchisees to consider systems that have a number of multi-unit operators when they’re completing their due diligence, because “franchisees won’t continuously buy unit after unit unless they’re making money and doing

well”. And those that are already in the franchising world and want to expand should first establish whether or not they are the right fit for that type of business ownership. “They have to have the big picture mentality... Those franchisees that have the big picture mentality are able to transfer the skills they have into higher level management skills,” Frazer says.

Support breeds success Johnny Singh, multi-unit 7-Eleven franchisee at Turramurra, Manly, Chatswood, Mosman and Killara NSW, was recently recognised as the convenience franchise’s Franchisee of the Year, at this year’s 1st Choice National Conference. Singh says the secret to succeeding as a multi-unit operator is having good family and staff support. That, and of course support from the franchisor – something that Singh is extremely appreciative of. “7-Eleven offers a lot of support to multi-unit franchisees. It helps me to train my staff by giving me the correct training tools, and being a multi-site franchisee, I can check the daily sales and all the store reports from one single store. Multi-site franchisees are also given access to a district manager, and 7-Eleven holds meetings for us and regularly asks us about our problems and if it can assist in any way.” Singh first became a franchisee in 2000 when he purchased a site in Blacktown and after seeing WWW.FRANCHISE.NET.AU

the positive effects that good customer service, a well stocked, clean store and upselling can have on sales, he quickly decided to expand, buying a Manly store in early 2001 and continuing to grow from there. Singh concedes that multi-unit ownership isn’t for everyone and says people considering making the shift from one store to multiple stores should consider how their personal and work lives will be affected. “Business changes a lot going from one store just to two stores. Getting honest and reliable staff is the key. I had to work long hours and find the correct staff who were hard working and honest at the same time and who I could delegate things to in my absence. “Franchisees should consider their financial position. They should also consider staffing arrangements and how they are going to make a profit from their stores once they go from one store to two or three,” says Singh. “You should always be prepared to do that extra bit if you’re becoming a multi-store operator, and you have a lot more responsibility. You have your family and your business and at times it becomes hard to balance them. You consider your business before you plan your holiday.”

The beauty of big business Nic Nayef, who owns 10 Hairhouse Warehouse stores in Victoria with his brother Emad, also understands the JAN/FEB 2012 FRANCHISING | 67


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Johnny Singh claiming his Franchisee of the Year award

importance of good staff – it’s a big part of the reason why he continues to expand his business portfolio. “A lot of our staff have been with us for up to 10 years and we’ve found that in order for us to grow we needed to help our staff to grow as well. A lot of the staff have become entrenched in our business, they’ve been pillars of our business. So in order to keep my staff in my business I’ve had to

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grow as well, so not only am I looking after my financial wellbeing and setting myself up, I’m also setting up my staff. “You’re limited in terms of what you can do for your staff when you’ve only got one store. As you have two, three, four – well now I’ve got area managers, marketing managers, merchandisers, so you can create roles for your staff as you accumulate more stores,” says Nayef. Starting work at Hairhouse Warehouse Knox City when he was at university, Nayef progressed to a marketing role soon after, before eventually buying Knox City with his brother in 2005, triggering years of franchise purchases, including two Lattouf stores, Hairhouse Warehouse’s sister hair and beauty franchise. Today, Nayef spends his days managing systems and staff, but hasn’t lost sight of the importance of being instore and being visible to his staff, all 150 of them, give or take. “I tend to visit all the sites that I look after in a two day period, so I might see them two or three times a week. I’ll go from store to store making sure everything’s

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well merchandised, the staff are well presented, that the store is fully stocked. I don’t do any paperwork while I’m in the shop because I believe that from 9 to 5 or 9 to 6 we should be solely focused on the customer, nothing else. Don’t worry about putting away stock or invoicing and payroll or replying to emails, all that can be done after hours,” he says. There isn’t a big difference between owning one store and multiple stores, Nayef adds, because at the end of the day it all comes down to having the right systems in place. “A lot of the systems and things that we’ve implemented focus on ensuring our staff are always well presented, that our stock is always well presented and well merchandised. They help us stay ahead of our competition and make sure that we have the latest in beauty and hair care. And customer service – we put all our staff in the latest retail training, just to help develop them and educate them.” While Nayef can understand franchisees’ desire to continuously expand once they’ve got their systems


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in place and can see the dollars rolling in, he warns them against doing so without seriously thinking about it first. “You’ve got to be really careful because sometimes people say the more stores you have the more money you make, but that’s not always the case. We treat all our businesses very separately. All have separate bank accounts, because every single store has to run on its own feet ... Unless you know that you can work each business really hard to get the maximum out of it I wouldn’t recommend it [expanding], because then what you’re doing is sacrificing sales at one store to bring out another store, then another store.”

The Domino Effect At the ripe old age of 29, Nick Knight manages 16 Domino’s Pizza stores: seven in Sydney, five in regional NSW and four in the ACT. While he agrees with Nayef and

Singh that having the right systems and staff in place is essential, he believes any successful multi-unit franchisee needs to make sure they possess the right personal characteristics before making the plunge into multi-unit ownership. Knight describes himself as a manager’s manager, and says multi-unit operators need to be the type of people that can hand over control and aren’t too territorial about their stores or how they’re operated on a day to day basis.

Emad and Nic Nayef (centre) at the 2011 Hairhouse Warehouse awards

You’ve got to be really careful because sometimes people say the more stores you have the more money you make, but that’s not always the case “You have to be someone who’s happy enough to relinquish control,” he says. “For instance, if a cool room breaks in one of my stores then there’s a process for my guys to go and get that fixed. I don’t need to know about it. I

don’t need to organise it. And sometimes they get it wrong. Sometimes they call the wrong guy and it’s expensive but at that point in time my philosophy is that if you’re going to give someone a job, then you have to let them be able

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Systems for success

Nick Knight has 16 Domino’s stores

to do it and they’re going to get it wrong sometimes, but that’s when you need to have a sit down with them and say next time they can look at it differently.” While accepting that a hands-on role in every aspect of the business is impossible for franchisees, Knight says that the other side of the coin is making sure you stay relevant and in the minds of your employees. “I have to reinvent my role so I can still add value to the team members, and that’s constantly changing. When you have two stores, adding value might be popping in on a Friday night and helping the boys catch up, making some dough, washing up, trying to make the manager feel that he’s not alone. When you’ve got 16 sites, while you can still do that on occasion, you really can’t have that impact on all those 16 stores, so you need to change what happens when you walk through the front door and how the guys view you.” Knight says a lot of his work now is

Greg Hodson, head of the franchising team at PricewaterhouseCoopers, says franchisors are starting to see the value of multi-unit franchising, and are implementing strategies in their businesses to foster such growth. “The general trend is that people are focusing on it [multi-unit franchising] more now. I think given the fact that one of the main challenges for the sector is finding new franchisees, more franchise systems are focused on looking internally for those franchisees and they are looking for people to own multi-sites,” he said. Hodson said that while Australia has a relatively low percentage of franchise units owned by multi-site operators – according to PwC’s Franchise Sector Indicator Report August 2011, it sits at 11 percent – franchisors often believe their system has big potential for internal growth. “It’s interesting that there’s another 15 percent or so of franchisees within franchise systems that franchisors think could become multi-site owners. So it means that 25 percent of a system could then potentially be subject to multi-unit ownership.” Being a multi-unit operator, especially one that manages a large number of stores, means having well-oiled systems and significant infrastructure in place to minimise stress and ensure consistency across the stores, Hodson says. These systems can relate to staffing, stock management, training and technology. The franchisor also needs to implement systems and procedures in their business if they plan to reap the benefits of multi-unit ownership. “When you look at franchising, it is very good at teaching people how to operate their particular unit and very good at helping people market their services or product, but they tend not to go much further than that in terms of helping people develop those softer skills and helping them to become better managers for a broader group of people,” Hodson said. “We see that that’s where a lot of franchisors are heading. They’re recognising that they need to upskill their franchisees.” number crunching and job performance reviews and while he’s got quite a full plate at the moment, further expansion could definitely be on the horizon. “As long as we can continue to operate stores above the market and do a better job of it than the average, then we’ll continue to do it. As long as I’ve got people in the business who are looking for bigger

and better roles and bigger and better challenges, then I’m happy to try and create those for them. It’s not really about the money. The money’s good and you have your good years and your bad years, but it’s more about the challenge. People always said ‘you can’t run 16 stores and do a great job of it’. Well that’s been done. What’s next?” F

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Please contact our Business Development Manager, Rod Parker on 0419 494 480 or rparker@bedshed.com.au for a confidential discussion, or visit bedshed.com.au

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Issues| Franchise success

STORM? Investing in a franchise business gives you plenty to be optimistic about, suggests John Di Natale, senior consultant, DC Strategy

74| FRANCHISING JAN/FEB 2012

I

f you’re like me, you’re tired of hearing about the world’s economic woes. Every day there seems to be another bad news story. It’s not that I’m unconcerned or flippant about the difficult trading conditions or the fact that many businesses are struggling. It’s just that sometimes, it’s good to read a positive story – if for nothing more than a little balance. And there are success stories – even now. Perhaps not surprisingly, many of them seem to be centred on franchised operations. Let’s look briefly at a few examples: since opening the first store at Knox City Shopping Centre, Hairhouse Warehouse has grown to more than 130 stores and is continuing

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to show strong sales growth. The group plans to expand to more than 200 stores both in Australia and around the world in the next few years. Snap-on Tools has a 20 year history in Australia and its 140 franchisees continue to rank highly in the best performing franchisees in the world for that group. Quest Serviced Apartments has been a consistently good performer over many years. Emerging systems such as Appliance Tagging Services, a specialist electrical contracting company, Cupcake Bakery and Shuji Sushi are proving there is significant growth to be had with a sound business concept, a well developed franchise system and a strong focus on marketing.


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Franchise success|Issues

Can franchising then, buck the economic trends? Are there elements in a franchise business model that make it more resilient, more likely to succeed, even when the broader economy is struggling? I believe there are. Some contributing factors may be:

The nature of the business model A well developed franchise business model has been “bench tested” in a number of scenarios. In designing the business model, a great deal of work goes into predicting and understanding its potential economic performance. The sales and revenue generation capability of the business, the cost structures under which it will operate, its sensitivity to changes in revenue and costs and the operating parameters within which the business is most likely to succeed are all analysed very carefully. When the roll out of operations begins, there is a much higher chance of success. This is a far cry from the “lick your finger and check the wind direction” approach that many independent business people take. In a franchise system, the management of operations and procedures is carefully considered.

A series of what-if scenarios are assessed so that policies can be devised for dealing with each scenario. This detailed forward planning provides franchisees with a structure that helps them make better decisions when they need to. A good franchisor is appropriately cautious in selecting suitable franchisees. In the recruitment, screening and selection process, franchisees are assessed for their fit with the brand, their ability to fund the purchase to ensure they are not over committing and their lifestyle needs are also taken into account. This means that a franchisee entering a system is better prepared for the challenges ahead than the average new business entrant.

business. It’s widely accepted that franchisees are more motivated and more committed than employees. Some would argue that franchisees are more highly motivated simply because they have invested their own hard earned dollars into the business. I agree this is one of the factors, but it goes deeper. Franchisees have made the decision they want more out of life than the usual employment scenario offers. They want to run their own business, take a little risk and reap the rewards. There is pride at stake. A franchisee invests a little of themselves in their business and genuinely wants to succeed. When the going gets tough, as the saying goes, a franchisee will usually dig deeper than the average employee to keep driving the business forward.

Owner and operator motivation Solid business I don’t think many people would processes argue with the premise that finding and retaining the right people is one of the key challenges for any

Good franchise businesses are driven by processes. They have

Franchisees want to run their own business, take a little risk and reap the rewards. There is pride at stake. A franchisee invests a little of themselves in their business and genuinely wants to succeed

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JAN/FEB 2012 FRANCHISING | 75


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Franchise success|Issues

a well organised approach to every aspect of their operations. When things tighten up, customers are conservative with their spending and trafďŹ c past the door slows down, itâ&#x20AC;&#x2122;s easy for an independent operator to start taking short cuts. Any form of advertising or promotion is usually one of the ďŹ rst sacriďŹ ces on the altar of tough times, followed by a loss of focus on the little things that matter â&#x20AC;&#x201C; stock levels and rotation, presentation, a proactive sales approach, appropriate stafďŹ ng levels and good customer service. Where these things are clearly deďŹ ned in the business model and every day operations, as they are in a franchise, itâ&#x20AC;&#x2122;s easier for the business owner to remember to keep doing the things that have been important in growing the business in the ďŹ rst place. A determined franchise network will see that maintaining proďŹ le and continuing to attract its share of the customer spend will require an even sharper focus on these factors and respond accordingly.

National branding with local involvement Franchise networks have brand power. By virtue of their presence in shopping centres, high streets or vehicles on the road, people know their name and what they stand for. If that presence is supported by good marketing and customers choose to engage

with the brand, a relationship is formed and a level of trust is established. When funds are tight and consumers are faced with a purchasing decision, who will they put their trust in to deliver what they are looking for? The

Good franchise businesses are driven by processes. They have a well organised approach to every aspect of their operations brands they are familiar with, of course. If you think about where you have shopped in the past month or two, this is almost certainly true. Most of us rely on that coffee store for our morning caffeine hit or that hairdressing salon to keep us looking presentable. We rely consciously and subconsciously on the brands that have provided us with a good experience in the past or are appealing enough for us to explore.

Adaptability to changing customer tastes, requirements and needs Franchisees donâ&#x20AC;&#x2122;t operate in a vacuum and the business is not dependent upon the efforts of one person. As an independent business owner, itâ&#x20AC;&#x2122;s easy

TM

Pump up your portfolio with a partner who helps you with the heavy lifting. Take control of your ďŹ nancial future and partner with Snap Fitness, the worldâ&#x20AC;&#x2122;s fastest-growing ďŹ tness franchise! tTVSOLFZCVTJOFTTNPEFMBMMPXTGPSTFNJBCTFOUFFPXOFSTIJQ t0WFS 5MPDBUJPOTXPSMEXJEF t-PXJOJUJBMJOWFTUNFOU t&RVJQNFOU'JOBODJOH"WBJMBCMF

$BMMPS 4/"1(:. or visit www.snapďŹ tness.com.au

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Issues|Franchise success

to be blinkered by what you have done in the past. There are plenty of businesses still operating as they were six months ago, a year ago, sometimes a decade ago. While this might create a little charm of yesteryear, itâ&#x20AC;&#x2122;s generally not the

a brand and its products and the demand for a better customer experience. These are all ongoing challenges â&#x20AC;&#x201C; and opportunities â&#x20AC;&#x201C; for the business owner. A recent study in the US Journal of Marketing Research indicated, for

best strategy if you want to stay relevant and keep growing. There is no doubt that consumer needs continue to evolve. There are trends and shifts in how people want to buy; the continual migration to online, the desire for engagement with

example, that relaxed shoppers are prepared to pay up to 15 percent more for goods than those who are on edge. Seems logical enough that we would be happier to spend when we are feeling comfortable than when the pressure is on. A franchise group is generally

better equipped to take advantage of an opportunity like this than a sole trader. Why? The traditional sole trader has to wear a managerâ&#x20AC;&#x2122;s hat, a marketing hat, a ďŹ nance hat and an operations hat. In a franchise model, there are generally more resources dedicated to identifying, understanding and responding to these ongoing, sometimes contradictory changes in market conditions. The marketing person might identify the trend and devise a plan, the merchandising team will work on store layout and presentation and each franchisee can focus on creating the in-store experience â&#x20AC;&#x201C; perhaps installing a waterfall and playing soothing music to keep the customers spending. These are just a few of the reasons franchising â&#x20AC;&#x201C; at its best â&#x20AC;&#x201C; has the wings to ďŹ&#x201A;y above the storm and why many of the leading brands belong to franchise groups in Australia and around the world. F

Picturing a career change? Interested in real estate? Passionate or keen to learn about photography? Then a Top Snap property photography franchise could be for you. Property photography is an exciting and diverse industry, where no two days are the same. Each day youâ&#x20AC;&#x2122;ll be out and about photographing different properties and meeting lots of new          Hereâ&#x20AC;&#x2122;s some other reasons why you might choose Top Snap: No need for an expensive retail presence. All you need is your photography gear, vehicle and computer and youâ&#x20AC;&#x2122;re set to go. We work in a growth industry. Our services are in high demand with the residential and commercial real estate industry. Weâ&#x20AC;&#x2122;ll help you succeed. Youâ&#x20AC;&#x2122;ll get the usual intensive training, plus dedicated support with sales and marketing, that youâ&#x20AC;&#x2122;d expect from a high quality, established franchise system. â&#x20AC;&#x153;As a Top Snap franchisee I now have a great work/life balance. I work from home and see more of my family, and going to work and meeting lots of great people is fun and different every day. This has given me the career change and lifestyle I was looking for. I love it!â&#x20AC;? John Woolley, Mornington Peninsula, Victoria (pictured above)

Territories are available across Australia, please contact Rob Watkin on 0414 217 019 or email rob.watkin@topsnap.com today for more details. www.topsnap.com

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Issues|Social media

IS SOCIAL MEDIA THE BEST COMMUNICATION TOOL? Love it or hate it, social media is a powerful tool in today’s business world. But are companies getting it right?

80| FRANCHISING JAN/FEB 2012

A

ccording to a recent marketing report, 29 percent of consumers have a low level of trust for direct communication through SMS, LinkedIn and other social media channels. Only four percent of surveyed consumers rated the social media channels as the most trustworthy. The survey revealed poorly targeted marketing messages have a negative impact on brands. Fifty-nine percent of consumers had stopped engaging with four or more brands because of poor communication, while eight percent had no engagement with 20 or more brands. The key is for businesses to create tailored campaigns for social media that meet clients’ needs, suggests Matt Glasner of Experian Marketing Services, which undertook the survey. The report, which surveyed 330 marketers and 1000 consumers around Australia, also showed that 70 percent of consumers rated print media above social media. So how does all this affect franchised brands? Paola Tanner, director of marketing implementation firm Fuse Franchise WWW.FRANCHISE.NET.AU

Partners, says “The observations are particularly pertinent to franchising when you consider that all the potential pitfalls are effectively multiplied by the number of stores in the chain. “The challenges for franchisors are vast in trying to coordinate messages across a network and communicating via social media in a personal manner from stores, whilst maintaining some sort of central control.” Tanner emphasises the importance in marketing of coordinated multi-channel approaches, linking email, print, social and other channels. “Having a properly set up platform including a central data store and adequate controls is vital for franchise companies so that only properly targeted messages go out. From there the opportunities to segment and personalise multi-channel marketing are endless.”

The conversation Social Media provides a great forum for companies to have conversations with customers, says Karli Furmage, CEO of >> continues on page 82


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Tired of being a passenger? Jump into the driver’s seat with a Midas franchise.

Turn Key Business: Midas is one of the most successful brands in the automotive industry, providing a complete set up for you with total systems and support. All you need to do is focus on your customers and running your business. We set it up, you turn the key. Advertising Power: You’ll be part of a national brand, using TV, print, radio, local area marketing and a strong CRM loyalty program. In 2010, over $2.5 million was spent Australia wide. Greater Buying Power: Unlike many other franchises, we pass the savings directly on to our franchisees. Ongoing Business Support: We’ll get you started, and then provide ongoing one-on-one support, as well as access to our proven systems, training, and technical support.

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Our Vision? We’re bringing transparency and trust back to the automotive service industry. Equipped with all the extras: You’ll get a national Midas phone number, a Midas website with a customised online presence, referral [VVSZ79TLU[VYPUNWYVNYHTHÄLSKZ\WWVY[JLU[YL corporate uniform package, environmental and OH&S management program, plus more.

The Opportunity: >LOH]LPKLU[PÄLKHZLSLJ[PVUVMJVTWHU`Z[VYLZ^P[O the highest growth potential and are making them available for franchise. Locations available: VIC: South Melbourne, Essendon, Fountain Gate QLD: Kippa-Ring, Springwood, Strathpine NSW: Brookvale, West Ryde WA: Cannington, Joondalup SA: Port Adelaide, Salisbury In short: ‹/PNOJHWP[HSHWWYLJPH[PVUWV[LU[PHS ‹/PNO]PZPIPSP[`SVJH[PVUZ ‹(SHYNLU\TILYVMYLJLU[S`YLUV]H[LKZ[VYLZ ‹-\SSZ\WWVY[VMHKLKPJH[LK4PKHZ[LHT If you’re passionate about customer service, committed to success, willing to follow a successfully proven system, prepared for an investment of 150-250K, and are keen to get started right away, then start your engines and let Midas get you on the road to success. Contact Franchise Enquiries: - FranchiseEnquiries@midas.com.au - 1800 815 526 - midas.com.au/franchising


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Issues|Social media

Franchise Relationships Institute. “Companies who are getting social media wrong [and there are a lot according to the results of this study] may need to revisit the fundamentals of good social media.” Think beyond the obvious, easy channels to communicate a message, she advises business owners. “Foursquare, Facebook Places, Google Ads are all great ways to advertise, but if that’s all companies are using social media for, no wonder people are switching off and not trusting it as a source of credible information. “Using social media to build your business is

Using social media to build your business is all about having a dialogue all about having a dialogue. Traditional marketing approaches of talking ‘at’ people don’t cut it. “Finding out where your customers are spending their time on the web and joining them in authentic, genuine exchanges that add value, is essential.” As a lot of companies are finding out, there is no exact science to social media, she adds. “But a good franchisor will have a well thought out strategy that utilises social media as one of the tools to grow their business.” Look out for franchisors who show: • Clarity and consistency with their messages • Focus on having genuine and authentic conversations • Reward and celebrate loyal customers • Add value to the conversations, offering appropriate advice and expertise

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• Deal with any negative commentary or issues raised, quickly and honestly

Behind the screens Furmage says franchisors should be leading the social media way for their franchisees by offering support and guidance such as: • A social media policy that sets out the guidelines for using social media for all franchisees, so the brand has a unified voice on the web • A social media tool-kit that guides franchisees through the process of what to use and when for the best effect, with set-up guides • A clear social media strategy that aligns and supports to the wider strategic objectives for the business • Investing appropriate resources to lead the charge and provide analysis on return on investment for franchisees and address conversations happening on the web “Franchisors need to balance protecting intellectual property and controlling their brand identity with the unique opportunity social media offers at a local business level to connect directly with customers, in a timely and cost effective way. “As a potential franchisee get Googling and find out if the franchise system you are interested in has a social media presence. If not, why not? If so, how effective is it?” Franchisors and franchisees should keep in mind that social media is all about having a conversation. F

Keen to find out more about the power of social media? You can read more about the marketing report on our sister publication B&T’s website, www.bandt.com.au


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Due diligence|How to

Before you invest in a franchise it is wise to

MAKING

understand exactly what is in the and what the the agreement a

DOLLARS AND CENTS OF YOUR DISCLOSURE DOCUMENT

system syste will offer you, advises Dr Schaper, deputy Dr Michael M chairman of the ACCC

B

uying a franchise can be a big investment. It usually involves a substantial upfront payment, followed by ongoing fees, royalties and other expenses. Before you make this kind of financial commitment, it is critical that you understand exactly what you are getting yourself into.

What information should you get? Under the mandatory Franchising Code of Conduct (the Code), a franchisor must give you a disclosure document at least

14 days before you sign an agreement or hand over any non-refundable money. You should also receive a copy of the franchise agreement in its final form and a copy of the Code. The disclosure document includes, among other things, a range of important financial information. It tells you how much money (if any) you will need to contribute to the franchise system’s marketing fund. It details your start-up costs, including any equipment, fixtures and stock you must purchase, as well as the working capital you will be expected to have available to you. WWW.FRANCHISE.NET.AU

The disclosure document also sets out any other recurring or one-off payments you will need to make that the franchisor is aware of or can reasonably foresee, and warns you if there is a possibility of significant future capital expenditure (for developments such as rebranding or store refurbishment). The franchisor must also disclose any requirements to enter into a lease, sublease, licence or other occupancy agreement, as well as the conditions of any financing arrangement that the franchisor or its associate offers to you. End-of-term arrangements must also JAN/FEB 2012 FRANCHISING | 85


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How to|Due diligence

be disclosed, including whether you will have an option to renew or extend your franchise agreement or enter into a new one; whether you will be entitled to an exit payment at the end of the agreement and, if so, how that payment will be determined; details of the arrangements that will apply to unsold stock, equipment and other assets; and whether you will have the right to sell the business at the end of the agreement. Many franchising disputes arise in relation to the termination by the franchisor of a franchising arrangement, so great care should be taken to negotiate fair terms in this regard. It is important to note that the franchisor is not required to provide you with any earnings information. However, if earnings information is provided, it must be based on reasonable grounds. And if it is provided in the form of a projection, the facts and assumptions relied on to make that forecast must also be disclosed. If a franchisor makes verbal earnings representations to you, ask if they can confirm these representations in

86| FRANCHISING JAN/FEB 2012

Prospective franchisees should not make a decision to buy a franchise based solely on the information the franchisor has given them

writing. This will help avoid any misunderstandings down thee track. The disclosure document must include a statement from the franchisor’s directors as to whether there are reasonable grounds to believe that the franchisor will be able to pay itss debts as they fall due. This statement ement must be signed by at least one director and either supported by an independent d audit or copies of the franchisor’s financial reports from the last two financial years.

What should you do with the information? Prospective franchisees should not make a decision to buy a franchise based solely on the information the franchisor has given them. It is important to make additional inquiries and seek professional advice.

Seek advice Before you enter into a franchise agreement, you will need to give the franchisor a signed statement that

WWW.FRANCHISE.NET.AU

you have received advice from a legal adviser, a business adviser and an accountant (or have decided not to). You are strongly encouraged to seek advice from professionals with franchising experience. Talk to your accountant about whether the earnings figures you have been given (if any) are achievable. Ask your accountant to prepare two profit and loss statements – one with a bestcase estimate of sales and the other with a worst-case estimate – that include all the expenses disclosed in your disclosure document. Will you be making a profit in both scenarios? Will you be able to


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For more details visit snooze.com.au or call Alistair Browne, our Franchise Network Development Manager on 0427 401 169

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How to|Due diligence

pay yourself a decent wage? If the franchise agreement is for a fixed term (typically five years), and there is no guarantee that it will be renewed, will you be able to recoup your investment (and make a reasonable return) within that term? Ask your lawyer to look at your

franchise agreement and bring any unfavourable terms to your attention, for example, a clause that allows the franchisor to terminate your franchise agreement even if you haven’t breached it, or a clause that requires you to maintain a certain debt to equity ratio. You

Talking to other franchisees will give you the best insight into how the system actually operates

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should take steps to renegotiate those particular terms with the franchisor.

Talk to other franchisees Talking to other franchisees will give giv you the best insight into how the system actually operates. Your disclosure document should You include the contact details of in current franchisees, as well as franchisees that have left the system in the past three years. Contact as many existing franchisees as possible, not just f those the franchisor suggests, th and ask them questions such as: • Are they earning as much as they expected? • Have they had any unexpected expenses? • If they could go back in time, would they buy the franchise again? • Have there been any disputes


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Due diligence|How to

with the franchisor, and what were they about? How were they resolved? When talking to past franchisees, you should also find out why they left the system.

Take a franchising pre-entry course All prospective franchisees are encouraged to complete a course on franchising. More than 1900 people have already undertaken the free, online pre-entry franchise education program funded by the ACCC and

administered by Griffith University. ty. The five-module course includes a detailed explanation of the financial aspects of franchising. It can be accessed at www. franchise.edu.au/pre-entryfranchise-education.

Tread carefully Most franchisors will be honest with ith you, but be careful of franchises that look too good to be true – they y probably will be. Be wary of claims that you can make large amounts of money with little effort, and steer clear of franchisors who are

BEFORE YOU SIGN: • • • • •

Complete a pre-entry franchising course Make sure that you are aware of all the fees and other amounts payable under your franchise agreement Get advice from an accountant, lawyer and business adviser with franchising experience Talk to as many past and present franchisees as possible Ask the franchisor to confirm any earnings claims in writing

If the franchise agreement is for a fixed term, and there is no guarantee that it will be renewed, will you be able to recoup your investment within that term? unwilling to provide you with anything in writing. F The Australian Competition & Consumer Commission (ACCC) is responsible for promoting compliance with the Franchising Code and the Competition and Consumer Act. The ACCC has several franchising publications containing useful information for prospective franchisees, including a Franchisee Manual and a DVD about the Franchising Code. These are available online at www.accc.gov.au/ franchising or by calling the ACCC’s Small Business Help line on 1300 302 021.

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Issues|Support

IN TOW Start up in business as a franchisee and you could have all the help you need when it comes to the big launch date, writes Bram Baker, Franchise Systems Group

90| FRANCHISING JAN/FEB 2012

O

ne of the benefits of a franchise system is the level of support a good franchisor will provide to its franchisees, from preopening assistance through to ongoing back up. And it all starts early on. To ensure success for the opening period of a new franchise, planning should begin well before the franchise agreement is signed. It should begin when the franchisor determines the demographic factors for the location of its outlets and the preferred profile of its franchisees. The weeks and days leading up to the opening of a new franchise outlet are WWW.FRANCHISE.NET.AU

always filled with nervous anticipation. Not only for the franchisee but also for the franchisor, especially if it is one of the first outlets in the network to open. This anticipation is only natural and usually drives both franchisee and franchisor to do their best to make sure that the opening of that outlet is a success. For a start the franchisor must demonstrate to the new and nervous franchisee that the sequence of events leading up to the launch of their business has been well thought out and that there is a timeline in place for completion of various activities. During the first weeks


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healthy prof its! Healthy fast food ood phenomenon SumoSalad is s now recruiting & weâ&#x20AC;&#x2122;re looking for energetic & passionate franchisees to o join the team. If youâ&#x20AC;&#x2122;re hungryy for success & have ave what it takes to dish up our delicious food, od, then we want YOU! Great franchising opportunities are available right now! Contact Graham on 0418 870 920


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Issues|Support

and makes them to eager to get started in their own outlet, and it gives the franchisor the chance to evaluate the strengths and weaknesses of the franchisee and staff and decide which areas need to be focused on in the remaining training period. Some franchisors believe that once the outlet opens and trading begins the training should stop. But this is not the case. The franchisor, at this stage, needs to realise that this is the time when the franchisee needs the most support during their tenure. They have invested a lot of money,

after opening, the franchisee could become agitated and less effective if this isn’t in place or if that timeline begins unravelling before opening day. The components of this sequence of events generally include training, promotional activity, ongoing support and communication.

Training The successful roll out of a well thought out training program is essential for any new franchise. The program may begin in a classroom but the most effective

The franchisor should have a library of promotions that demonstrate the success, or otherwise, of various marketing activities training takes place before a franchisee opens their own outlet; this is where the franchisee works in an existing outlet to experience the frontline (the length of time is generally determined by the complexity of the system). This reassures the franchisee that they can really do the job

sometimes mortgaged their house, and want to ensure their business succeeds. It is also important for potential customers to see that this new outlet is offering the same level of good product and great service that any well-established outlet in the g group p offers.

For this reason, the franchisor’s training regime for a franchisee must extend past the opening day. The extent and focus of this after opening training will depend on the level of competency of the franchisee and their new staff, the history of training other franchisees and the activity level of the new outlet. The ongoing training can gradually be wound back as the confidence and the competency of the franchisee and their staff grows.

Promotional activity Based on the experience of opening previous outlets, the franchisor should have a library of promotions that demonstrate the success, or otherwise, of various marketing activities. As more outlets are opened, this resource becomes even more valuable to new franchisees in determining their opening promotional program. Preparation for such activity begins weeks, even months before the outlet opens and may include local media and other creative activities. The franchisor plays a very important role here. Firstly, they need to sign off on the strategy being used as well as the artwork included in pamphlets, ads and other signage, and assist in deciding the most effective placement or distribution of such material. Secondly, the franchisor (or key experienced staff) need to be present on the actual day of opening. Such support is vital. A new franchisee should never be left to open their outlet without franchisor support. While this shows the franchisee that the franchisor really cares about their business, more importantly, the presence of support office staff can have a big influence on the ongoing relationship between the two throughout the term of the franchise. Franchising is about building up a culture which is very much influenced by the franchisor. As >> continues on page 95

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READ ALL ABOUT IT! Share in Australia’s billion $ magazine market – and enjoy the rewards, week, after week, after week. Get your hands on a glossy new Magazine Vending machine. With constantly changing, eye-catching covers, the magazines on display practically sell themselves. The retail sales of magazines have increased by more than 48 per cent over the last 10 years. Retail sales now register about 4.5 billion. The Australian Women’s Weekly is the most-read monthly magazine in Australia with sales over 2.5 million every month which is almost double the sales from the second most read magazine in the country. Woman’s Day, the most read weekly to 2.5 million.

There are literally thousands of locations available across the country. Traditional vending has been covered by many companies for over 60 years and the biggest question always is ‘where do you put them’? The director of Magazine Vending Australia says that to be successful in vending today you have to innovate logically and think out of the box and look at the way of the future. “A can of soft drink or packet of potato chips, the typical items in traditional machines, will always be the same week after week. At Magazine Vending we provide a whole new customer experience every week, with brand new gossip, news, features and fashion through our extensive range of over 80 titles,” he explained. Australians and visitors are ready for this service! Most products put into a convenience environment attract a convenience price tag giving higher pricing to the customers. With magazines it’s the same price at the supermarket or newsagency or through a magazine vending machine. These locations ‘without opposition or competition’, makes Magazine Vending the only company to provide this much needed service in this convenient consumer driven society without the extra price tag.

In fact, latest figures show that 6.4 magazines are sold every second in Australia – that equates to $1 billion of sales each year. Magazine Vending’s fully electronic European manufactured vending machine is set to capture its share of this lucrative and ever growing market. Not even the Internet has slowed down this culture of people wanting to physically get their hands on a glossy, eye-catching magazine. Train stations, airports and hospitals are a major source of location for Magazine Vending machines and upon purchase of a Magazine Vending System, one of these types of locations will be supplied to you or any location that you may request.

By becoming a machine owner of Magazine Vending you have the opportunity of investing in a comparatively low cost method of selling these products. You will also be investing in a low risk system which provides you with the ability to grow a large network of units, thereby creating real passive income. “The truth is that there is real financial independence available to you with Magazine Vending machines. They are unique, they carry products people want, they are not expensive, and people are attracted to them with their unprecedented consumer exposure and availability,” the Director said.

In regional and remote areas like holiday islands, mining and farm areas, Magazine Vending can provide magazines at the same price that these customers would pay at any retail outlet in Australia. It’s these places where people tend to have to spend time waiting for appointments, transport, classes etc. A good magazine always makes the waiting time much more pleasant.

Magazine Vending, features a high profile magazine portfolio of over 80 Australian titles including established favourites such as FHM, ZOO, CLEO, WOMAN’S DAY, COSMOPOLITAN, DOLLY, NW, WOMEN’S WEEKLY, TOP GEAR and many other popular titles to tailor-make the perfect Magazine Vending Machine for your location. In fact we have all the stats, foot traffic, and appropriate information at hand to ensure your Magazine Vending Machine’s success!

For further information please contact: sales@magazinevending.com.au or

1800 686 997


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Support|Issues

>> continued from page 92

the system grows so this culture builds. Culture is built around stories and these stories in a franchise nearly always centre on the franchisor. A culture of good franchisor support must be enforced by each new and subsequent opening. Any nervous anxiety or uncertainty on the part of the franchisee due to lack of support or even the perceived lack of support from the franchisor could have a major influence on sales right from the beginning.

Ongoing support and communication If the franchisor has prepared their operational documentation well, most of the questions raised by new franchisees should be answered by the manuals, and these, along with operational systems, should be continually reviewed to ensure they reflect the current work practices of the group. So many times in our experience we have seen manuals carefully prepared at the development stage of a new franchise system, only to fall behind after a few years by not recording the actual processes that now make up the mature system. Of course, while a well written manual is very important, it cannot replace experience in the form of franchisor support

A good franchise system has a declining level of hands-on support, allowing the franchisee to take over the business gradually staff. A good franchise system has a declining level of handson support, allowing the franchisee to take over the business gradually. So for the first week after opening franchisor staff may be present for five days, during the second week they may be at the franchise for four days, by the third week this has dropped back to just three and so on. This process is laying the foundation for a solid business, built not only on the experience of the franchisor, but existing and previous franchisees. Once up and trading the franchisee should still have one franchisor team member they can contact at any time. This is particularly relevant if the outlet operates seven days a week and the busiest times can be on the weekend or after normal office working hours. The opening of a new franchise outlet should be an exciting and enjoyable occasion for all concerned but if the correct support plays are not in place right from the beginning, the relationship between franchisor and franchisee can quickly sour and more importantly, sales and the success of the business can suffer. F WWW.FRANCHISE.NET.AU

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Issues| Inkspot franchisee Danielle Thompson can manage most of her business from home

Ready Steady Go Kids franc hisees Kerrie Froese (left) an d Giselle Jesse with their sons

MUMS KNOW

BEST Mothers are joining the franchise community and loving it

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R

unning a business is a challenge for anyone, but for some mothers the choice of being the boss and keeping work flexibility is just too good to pass up. These are the mums who are embracing all that a franchise model offers…business independence matched with behind the scenes support. Opportunities might be home-based, mobile, office-based or retail. Returning to work after having children can be a difficult time in a woman’s life; when, where and how to rejoin the workforce are often the most relevant concerns as childcare costs are high and places limited. So it’s no surprise that the opportunity to run their own business has a lot of appeal for mothers. Many, many franchises are run by couples for whom the business is a family affair WWW.FRANCHISE.NET.AU

with either mum or dad taking on an admin support role that fits around the family’s daily demands. For other franchising females, the chance to be hands on in a business means sharing both childcare and business roles with a partner; working different shifts to manage the store or the coffee shop and do the school drop off or pick up. And for some women the appeal of a franchise is the chance to manage a business by themselves, or with another like-minded partner, perhaps another mum. Franchising offers mothers a chance to manage their own time, juggle their home lives with the demands of building a business, and even discover how to turn a passion into a financial return. A passion for the service and getting the kids involved is certainly the way that local parents Giselle Jesse and Kerrie Froese see their future. The Melbourne mums experienced the Ready Steady Go Kids multi-sport franchise first hand, and loved it so much they invested in their own territory in Box Hill and Donvale. They are all set to roll out the business in school term one this year. Jesse’s four year old son Campbell, began classes when he was two. “Campbell, and now my youngest son Ashton, can never wait until the next Ready Steady Go Kids class,” she says. “We’re thrilled to be bringing the program to >> continues on page 99


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Become a and join Australiaâ&#x20AC;&#x2122;s Number #1 I.T. Support franchise! Business is all about relationships. Supergeek franchisees care about providing dependable support to their extensive client base, creating a reliable income stream for themselves with our highly developed, easy to operate and fun business model. The company is driven and focused to provide a solid stream of convenient support solutions to home computer users and the SME sector. To ensure sustainable and fast paced business growth, our new franchise owners are supplied with a comprehensive start-up and support package. Including active help in setting up business, on the job training at commencement and practical guidance from their own completely independent and experienced business coach. A Supergeek Franchise offers low start up costs and challenging opportunities for open-minded, dynamic and enthusiastic franchisees to the mobile IT and computer maintenance industry.

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A new way to connect with your customers RedCat’s new mobile phone application allows hospitality and franchise outlets to have their own branded iPhone application as well as working as a web application on other mobile devices. It also offers the ultimate in convenient ordering, allowing customers to prepay and pre-order food at their desired time directly from the application. Purchases can be paid for using points, pre-paid gift cards or credit card. Orders will be sent direct to the Point of Sale at the store and will print out automatically, at the correct time, without the need for any interaction by the staff. The application can also be configured to be used as a self ordering kiosk at store level. Not only will it streamline the ordering process, it will allow you to take advantage of the dramatic increase in popularity of coupons. Research shows that globally, mobile coupon redemptions will exceed $6 billion by 2014*. Hospitality outlets can also use the application to deliver targeted and relevant advertising offers directly to their members which can be redeemed and tracked seamlessly through the RedCat Point of Sale system. * Jupiter Research

Registration

Coupons

Store Locator

Ordering

Barcode Loyalty

Existing members can login, or new members can register their details directly within the app.

Targeted marketing sent directly to your members. Relevant. Immediate. Redeemable at POS.

Customers can search for their nearest site by using integrated GPS, or postcode search.

Save favourites, pay using points, vouchers or credit cards and send orders to the store.

Once registered, members can display their points balance, member status, and a barcode for identification.

To find out how you can take advantage of RedCat’s Mobile Applications, call 1300

8676 RedCat Mobile Phone Leaflet 205x275 indd 1

4 REDCAT or visit www.redcat.com.au

17/10/11 2:36 PM


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Mums in franchising|Issues

>> continued from page 96

families here. There really is nothing else like Ready Steady Go Kids.â&#x20AC;? Ready Steady Go Kids has been operating since 2004 and has more than 50 locations throughout South Australia, Victoria, New South Wales and Queensland. The program enhances childrenâ&#x20AC;&#x2122;s motor skills and Jesse has seen with her own son that it can make a difference. Both the mothers have undergone specialised training to run the program. Itâ&#x20AC;&#x2122;s a franchise that gives the pair the perfect opportunity to balance their parenting roles with a focus on children leading healthy, active lives. But a franchise doesnâ&#x20AC;&#x2122;t need to offer a service for children to allow mums to beneďŹ t. There are other opportunities that allow them to run their own business with

Thompson enjoys being a mother of a two year old daughter and a four month old son while managing her own business. â&#x20AC;&#x153;Being a mother of such young children you need to have a business that can operate when you are tied up with the kids, and although I am in constant communication with the store, I am able to do 90 percent of my work from home. When I do visit I usually have the kids in tow. â&#x20AC;&#x153;It isnâ&#x20AC;&#x2122;t always easy,â&#x20AC;? she adds, â&#x20AC;&#x153;but if youâ&#x20AC;&#x2122;re good at juggling and prepared to duck the occasional curve ball then it is deďŹ nitely fulďŹ lling.â&#x20AC;? Inkspotâ&#x20AC;&#x2122;s director and strategy manager Vincent Teubler believes the success of the women franchisees in the network comes down to their individual commitment to make the business succeed. â&#x20AC;&#x153;They have been so successful

It is set up in a way that is easy to run and I only have to spend a few days a week â&#x20AC;&#x2DC;in the ofďŹ ceâ&#x20AC;&#x2122; as I do most of the work from home ďŹ&#x201A;exible hours. The shopping centre-based ink and toner cartridge franchise Inkspot, for instance, has attracted busy mums keen to join the workforce on their own terms. Weribee franchisee Louise Oakley relocated with her young family (two boys, aged ďŹ ve and seven) to Victoriaâ&#x20AC;&#x2122;s Torquay suburb in 2009. With both parents working long and demanding hours Oakley knew there had to be a better way to get the lifework balance right. â&#x20AC;&#x153;Inkspot appeared to us as the perfect option for a business, it is set up in a way that is easy to run and I only have to spend a few days a week â&#x20AC;&#x2DC;in the ofďŹ ceâ&#x20AC;&#x2122; as I do most of the work from home,â&#x20AC;? Oakley says. Fellow franchisee Danielle

because they are all brilliant. As a small business Inkspot is a relatively simple franchise to run and operate happily with only one staff member, but it takes passion, drive and hard work to establish and grow a small business while meeting the demands of a young family and a growing business.â&#x20AC;? Mums keen to snap up their own opportunities once the time is right should look for some of the following in a franchise: â&#x20AC;˘ An easy to operate system â&#x20AC;˘ A model that can ďŹ&#x201A;ourish in ďŹ&#x201A;exible and/or school hours â&#x20AC;˘ A business that can be managed away from the frontline â&#x20AC;˘ Reliable franchisor support â&#x20AC;˘ Accessible training F

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Workplace safety|Issues

IS YOUR CONCERN Occupational Health and Safety laws will undergo the biggest overhaul in a generation with the introduction of nationally harmonised legislation. Here we look at what it involves, and how two very different franchise systems approach the very real issue of managing health and safety

T

he new model Work Health and Safety Acts (WHS) came into effect on 1 January (with the exception of Victoria and Western Australian who are likely to defer implementation until later in 2012), writes Patricia Ryan, the practice manager of EI Legal and a solicitor with more than 30 years’ experience in both private practice and in-house roles. It is crucial that potential business owners recognise the changes and start preparing for these now. Essentially, the changes will mean that each of the current state and territory Occupational Health and Safety (OHS) laws will be replaced by national laws based on a model Work Health and Safety Act (WHS). Currently, there are eight jurisdictions WWW.FRANCHISE.NET.AU

with eight different sets of laws, so the most obvious advantage to this is the consistency of laws across most of Australia and a more streamlined approach to the way OHS is regulated. Key facts about the new model WHS: • There are new roles and responsibilities for employers • There will be new wording and definition changes implemented under the new WHS. Worker replaces the term employee and PCBU (person conducting a business or undertaking). A franchisor will be a PCBU in respect to its business while each franchisee will be a PCBU with respect to its own business • There are critical changes under the new act in regards to consultation JAN/FEB 2012 FRANCHISING | 101


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Issues|Workplace safety

What do you need to do?

Maintaining safety while testing electrical appliances is essential at ATS

• Changes to union rights of entry • There is protection from discrimination, coercion and misrepresentation under the new WHS • New penalties for breaches of the WHS • New roles and responsibilities for health and safety representatives under the new WHS.

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What is “reasonably practicable” in terms of consultation will be relevant to your situation but the Act applies equally to businesses of all sizes. That means not only does the franchisor have to undertake the following, but so does each franchisee – for their own business: • Review organisational structure to determine responsibility for WHS • Review current policies, procedures and consultation processes to ensure that not only are they compliant, but that terminology used is consistent with the new act • Identify the stakeholders within the network For example, workers (franchisees will not be a “worker” of a franchisor), senior management or officers and those responsible for the implementation of safety initiatives • Ensure directors and senior managers (officers) have sufficient oversight over safety matters • Review contracts with relevant third parties such as suppliers of plant equipment or labour to address and to clarify respective obligations • Review consultation arrangements to determine correct communication with all required parties, again coming back to the expanded definition of duty holders and workers; establish whether you need to elect health and safety


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Workplace safety|Issues

representatives for identified work groups, or if existing alternative arrangements are practicable • Review procedures to ensure protection against engaging in discriminatory conduct against a worker who raises a health and safety issue • Review the new regulations and codes of practice to determine what changes will need to be made to safety systems

CASE STUDY Bakers Delight Andrew Pajic, operation training and development manager In a Bakers Delight franchise the main safety issues are exposure to oven heat and using utensils when hand crafting bread, so precautionary measures should always be taken. Bakers Delight provides tools and has a structured assessment program in place that measures bakery compliance in line with company policies including Food Safety, OHS, bread quality, service and merchandising. This program is known as the Bakers Delight 5 Star program – assessments are conducted every four months to monitor trends and take action on any non-compliance. New Bakers Delight franchisees undergo the 16 week Bakers Delight Franchise Training Program

that includes on the job training on the operation of a bakery. This practical training also includes conducting OHS staff inductions, completion of workplace inspections and first aid stocktakes. All employees complete an online induction program, Bakersville, that covers a broad range of OHS related precautionary measures. Ongoing training online enables franchisees to monitor staff completion of modules. A Safety Bulletin is also distributed to franchisees and their staff. Three times a year a 5 Star audit is completed at every Bakers Delight bakery and this includes a full audit of a bakery’s compliance with the OHS program. An itemised report is provided at the end

All employees complete an online induction program, Bakersville, that covers a broad range of OHS related precautionary measures of the audit clearly outlining any areas that require attention by the franchisee. The report is also sent to the bakery’s area manager. Harmonisation is an opportunity to have predominately one set of OHS regulations across the country and will ultimately make compliance with

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Issues|Workplace safety

OHS systems less time consuming and easier to understand. Bakers Delight is reviewing and updating procedures and processes to reflect the new codes of practices and regulations.

CASE STUDY Appliance Tagging Services (ATS) Sarah Allen, owner and business development manager Operating within the safety industry, OHS is an important part of ATS’s induction and ongoing franchisee training. One day of a two week induction training is spent on health and safety and the importance of managing this within the franchisee’s business. With the implementation of national OHS legislation in January 2012, more recently we have been educating our franchisees on the changes to responsibilities. One of the most important components of OHS training is ensuring that all franchisees are competent in complying with ATS’s documented Safe Work Method Statements (SWMS). Our practical training sessions revolve

around how to work in accordance with SWMS that are provided to all clients before work begins. We also train our franchisees on the difference between SWMS and a site specific Job Safety Analysis (JSA) and show them how to complete a JSA before starting a job to ensure the works are carried out safely. In light of the new definitions this is a vital component of managing our health and safety duty to our franchisees. As a ‘man and a van’ operation; ATS franchisees work from home and from their vehicles. The franchisor has always requested franchisees test their home office electrical appliances, but a recent case has made this imperative. When a Telstra employee had an accident while working from home, her home was deemed to be a workplace – with all the ensuing responsibilities of OHS management. ATS has now included this into its Safe Work Method Statements and OHS manual. Franchisees are trained on the use of the OHS manual, and are given a copy of the OHS policy. They also learn how to complete a comprehensive incident investigation form which is required in the event of any incident or electrical shock, regardless of the severity. F ATS franchisee Joe Pingiaro in action

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INTERESTED IN JOINING AN AWARD WINNING CONVENIENCE RETAILER? You may not be aware that Caltex Australia operates one of the largest convenience retail networks across the nation with both company and franchised stores operating predominantly under the ‘Caltex Star Mart’ brand. Earlier this year Caltex Star Mart dominated the prestigious awards at the annual Australasian Association of Convenience Stores (AACS) awards held in Sydney on 24 August 2011 winning : Retailer of the Year : Caltex Star Mart Franchise Store of the Year : Caltex Star Mart Hamilton, NSW Company Operated Store of the Year : Caltex Star Mart Kingsford, NSW Congratulations to Reinhard and Suzannah Bolsius and their team at Caltex Star Mart Hamilton, and the company operated team at Caltex Star Mart Kingsford, on their outstanding achievement in being judged the “best of the best” in Australian convenience retailing. Congratulations also to franchisee’s Rajesh Patel and Kate Stone from Caltex Star Mart Caboolture Qld, and Mel and Sandra Owen from Caltex Star Mart Chelsea Heights Vic, who were nominated as finalists for this award. Caltex Star Mart have now won Franchise Store of the Year for the past four years. To find out more about this award winning Franchise, visit www.caltex.com.au and click on ‘Franchising at Caltex’.


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How to|Marketing

STAMPED

DUTY O

ne of the joys of being a franchisee is the support offered by the franchisor. Right from pre-opening to training, sales benchmarking and growth plans, a top franchisor will be on hand with advice, experience and branding material: branded stationery, approved marketing material, merchandising items and uniforms all contribute to communicating a single message to customers. For a business owner to generate not only the ideas but source suppliers and go through the ordering process simply adds weight to the delicate balance of a business start-up. So when the franchisor has done all the work, what a relief! Of course, for many franchised brands promotional items are not a key part of the daily business. But when it comes to a special offer or giveaway, having a branded product is the icing on the cake. Add in uniform items such as jackets, logoed shirts, caps, t-shirts for each franchise outlet and there can be a considerable number of items to be ordered across the country. Centralised merchandising is the franchisor’s role and sourcing the supplier removes that headache from the franchisee. But giving franchisees access to individual ordering once a range of items has been agreed on gives them back control without the hassle. For sandwich franchise chain Healthy Habits, merchandise is not a major part of the business. The product that is required is based around specific promotions, ongoing uniform supply, and merchandise for the annual conference. Steve Pagett, general manager operations, says using a company which offers easy access for franchisees to order the goods themselves makes the whole process easier. “It takes away some of the fuss,” he says. Grant McGregor, national retail manager at Yokahama Tyres & More, orders once a year for the 12 months ahead. The proposition of a website and

What do you do as a franchisee when branded merchandise is required for your business?

franchisee ordering system was a decider when it came to signing up the promotional supplier, he says. Ordering is done at head office and when the stock is at the supplier’s warehouse, franchisees are then able to place their individual orders. One of the roles of a promotional supplier is to come up with the right ideas at the right budget. A back-to-school Healthy Habits promotion meant pencils and lunch boxes for the sandwich chain; for Tyres & More quarterly customer giveaways can be items such as Easter eggs, cooler bags or lip balm. Franchisees in both systems are able to order their own supply of goods by logging in to the company-specific website set up for each business by Jem Promotional Products. The online shops are designed with the relevant company logo, colours, styling, written content and images specific to the business. This allows franchisees to go online and navigate through a familiar environment, place an order that suits their requirements, pay for the goods and receive order confirmation. Franchisees can then keep a track of their order without needing to go through the franchisor and all queries are handled directly by the supplier. At Jem, Elyse Daniels explains “We don’t ever have complaints because our warehouse has a 99.9 percent accuracy rate but there may be times when a store decides they would like to exchange a pair of pants to a difference size but even that is rare.” The franchise head office can log onto the webshop at any time to view stock levels but the system can also generate automated reports providing information on stock levels, popular products, and sales by user or store. F

Easy access for franchisees to order the goods themselves...takes away some of the fuss

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Some of the branded merchandise for Healthy Habits and Yokahama Tyres & More


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Business survival|Issues

7

TIPS FOR SUCCESS IN TOUGH TIMES

Before you invest take a look at some simple ways to make your franchise journey a success. By Nader Seifen

T

here is no doubt that economic turmoil is still the global background for businesses everywhere, even in Australia. Our economy has survived so far, but each franchisee and franchisor needs to master excellent navigation skills to ensure their own business sails smoothly through choppy waters. Here are seven tips that will help you steer a steady course:

1. High standards In a competitive market the quality of a service or product is paramount to business success. Your competitors may react to the economic situation by cutting costs and reducing quality. The smart operators would

ensure that no matter what product or service is offered to customers, the quality is at its peak. Customers will always notice the difference and appreciate the consistent value offered by your franchise.

2. Staff training For any franchise employing staff it’s very important to keep training a focus of the business, in order to maintain these high standards. Tom O’Toole, author, motivator and owner of Beechworth Bakery, when asked “why train the staff, they’re going to leave in a few months”, responded “it would be worse if I didn’t train them and they stayed to serve my customers”. Investing in staff training pays dividends.

3. Cash flow Monitoring your cash flow on a weekly basis is easy to do, but essential, in any economic climate. The method below allows you to calculate all of your available cash, minus your commitments to superannuation, GST, PAYG, your bank loans and creditors. The last two columns show how much cash is available to you – really available – and the difference from the last calculation. There will be weeks in negative territory, other weeks when it is positive but over the period of four weeks, the positives should be greater than the negatives. Warning bells should sound if there is no improvement over time. This is where a business

MONITOR YOUR CASH Date

Current bank balance

Add deposits not yet showing

Less cheques not yet processed

Equals net bank balance

Less super payments

Less GST Less loans payments

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Less creditors

Equals cash on hand

Variation to last week

JAN/FEB 2012 FRANCHISING | 109


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Issues|Business survival

development manager in your franchise network can assist by seeing opportunities. You might also need to turn to financial advisors such as your bank manager or accountant for help. The answer isn’t always to just cut back costs – there could be an argument for investing in technology or a new

don’t expect the franchisor to be doing this for you.

5. Look after yourself Running a franchise business means putting 200 percent effort into getting it right, all the time, but that takes its toll, particularly if you’re working harder

There are always new things to learn in business, and when you think you’ve read it all, read about your industry piece of equipment that would result in long term savings much greater than the initial spend.

4. Local area marketing Don’t forget your local area marketing (LAM) is a continual process and must not be slowed or neglected in the hard times. Remember that some local area marketing initiatives can take four to six weeks to implement; this means you have to anticipate the next two to three months and plan for three months away. LAM is the franchisee’s responsibility, so

110| FRANCHISING JAN/FEB 2012

to keep costs down. Make sure you re-energise yourself on a regular basis. A daily walk or a break to spend time with your family helps to boost your chances of success, and rebalance the work/life equation.

6. Social responsibility Be sure to reach out to the community beyond your own franchise – however successful you are in business means little unless you can share with those less privileged; human beings are about community and sharing. And supporting

WWW.FRANCHISE.NET.AU

a charity with an hour of your time, or a small regular financial contribution, even in tough times will not sink your business.

7. Sustain the passion Most people are excited and passionate when embarking on a new venture, job or business. After a little while the passion wanes, and this can reflect in the attitude of your staff. When you have an ordinary job and the passion wanes, you just move on, or you may even get a promotion. However when you’re self-employed, you have to find ways to re-ignite the passion that you had when you first started. To reignite the passion, find the time to educate and re-educate yourself about your business and your industry. There are always new things to learn in business, and when you think you’ve read it all, read about your industry, and when you’re done, read about successful people. F

Nader Seifen of Spindle, advisor to franchisors and franchisees


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Advice|Finance

CAN I

AFFORD THIS FRANCHISE? Work out how much you can really spend on a franchise to ensure a good investment, advises Tim Kilham

W

hether or not you can afford a franchise, or to put it another way, how much you can spend on a franchise, will depend on three things: 1. Your assets 2. Whether the franchise is accredited 3. Whether a third party (such as a family member) is prepared to provide financial assistance It is worth noting that just because you have a certain borrowing capacity, say $500,000, it does not mean that you should spend $500,000. The amount that you will be prepared to spend will depend on your risk profile and a whole range of other factors. Do you want to risk all the lifetime assets you have accumulated when buying a franchise, or would you rather risk only a portion of those assets? Albeit this probably means your return will not be as great as if you had risked all your assets. This is a question only you can answer. The amount a bank will lend you is substantially affected by whether or not a franchise is accredited by a bank. If the franchise is not accredited, the bank will almost certainly require you to have

112| FRANCHISING JAN/FEB 2012

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adequate assets as security for your loan. Generally the only acceptable security is property; bricks and mortar. A bank will usually lend up to 80 percent of the value of your property; but beware, a bank’s valuation of your real estate may well be more conservative than yours.

How much can you afford? Let’s assume you have a house worth $600,000, with a mortgage of $150,000. Your borrowing capacity, the amount you can afford to spend on the franchise, is $330,000. This is because the bank will be prepared to lend you 80 percent of the value of the house, and therefore a total of $480,000. However, as you have an existing mortgage debt of $150,000 the balance the bank will lend you is $330,000. Will there be circumstances in which the bank will lend you more than a further $330,000? Yes. Depending on the strength of your relationship with the bank, the bank’s knowledge of the franchise system and, generally, the bank’s keenness to deal with you, the bank may well lend you more. Talk to your bank manager. The amount you can afford increases if a family member is >> continues on page 115


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Finance|Advice

>> continued from page 112

prepared to guarantee the bank loan. While banks are reluctant to accept third party guarantors they will do so in appropriate circumstances.

How does accreditation affect affordability? The amount you can afford is dramatically increased, if not doubled, if the franchise you are purchasing is accredited with a bank. This is because banks will lend money against an accredited business itself, without requiring the bricks and mortar security. A bank will normally lend up to 50 percent of the purchase price of an accredited franchise against the franchise itself. So using our previous example, the bank would have lent $330,000 against security of assets. If the system is accredited a bank will also lend 50 percent against the value of the franchise itself. You are therefore now able to borrow a total of $660,000. This is because the financial institution will lend you half this amount ($330,000) against the franchise itself [because the franchise is accredited] and the other half against your assets [and as previously explained,

WHAT WILL BE THE TOTAL COST? Let’s look at what will be the total cost of the franchise The total cost will be the entire cash requirements of the business. There are two major aspects to consider. 1. There are usually many additional costs over and above the headline cost of the franchise. The purchase price of a franchise might be $280,000, but that is likely to be only the base cost. As an example, other costs (and therefore cash requirements) are likely to include fees for advice from franchise professionals, the bond on rental premises (this could be up to three months’ rent), the cost of forming a company or trust, deposits and other expenses. These costs – particularly the rental bond cost – can be significant. 2. Most franchisees need working capital. You may need to purchase stock for your business and pay your supplier for the stock before you sell it. You may have you have a borrowing capacity of $330,000 using your assets as security]. If the franchise system is not accredited with the bank you use (and therefore your bank won’t make an unsecured loan to you), find out if the franchise system is accredited with another bank and talk to that financial institution. Fewer than 20 percent of the franchise systems in Australia are accredited because banks prefer

The more that’s “Said,” the more that’s “Sold!”

debtors; you may make a sale but not get paid for that sale for several months. This means that in addition to the upfront cost of the business and the extra costs listed in the previous paragraphs, you will need to have further cash to fund the stock and debtors (otherwise known as working capital). All of this means that the total cost and cash requirements may well be much greater than would at first appear. The best way to establish your total borrowing and cash requirements is, when you are doing due diligence on the purchase of a franchise, to get an experienced franchise accountant to assist you to prepare both profit and loss and cash budgets. Only then will you know what your total requirements are.

to accredit the larger and better established franchise systems. There are many factors, financial and non-financial, that are going to affect the success of your franchise business. If you follow the advice set out in this article at least you know whether or not you can afford the franchise. It’s a good start. F Tim Kilham is a director of Lanyon Partners Chartered Accountants

Tell more – and sell more! – in 2012 with Said Creative Strategies. Whether it’s enhanced franchise sales or better communication with your franchisees, Said Creative Strategies has been boosting the bottom line of Australia’s leading franchised businesses since 1993. And today, the best creative, marketing strategies, cost efficiencies and industry experience is within the reach of all franchisors, great and small. If the dream of having more “Said” about your franchise in 2012 is one of your New Year’s resolutions – leading to better sales and brand recognition – contact us today. We’ll make it a reality. www.saidcreative.com

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Advice LEGIT | LEGALESE MADE EASY

Take your partners

W

RAYNIA THEODORE Raynia Theodore is principal, corporate advisory and franchising team at Mason Sier Turnbull Lawyers

hat do you need to know about structuring your franchise as a partnership? For starters, a partnership is defined in law as the relationship between individuals carrying on a business in common with a view to a profit. As with any other business structure it has pros and cons.

Advantages

Partnership agreements

Ease of set up; minimal compliance and low establishment costs; less government regulation than a corporate structure; more people to inject capital into the business; pooled knowledge, experience, skills and ability of partners to take leave; and tax benefits.

The trust required to enter into a partnership is similar to the trust in a marriage. Before going into a partnership, it is strongly advisable to draft an agreement to be signed by all partners, outlining all important aspects in the relationship and what is to happen if matters do not go to plan. A partnership agreement should deal with names and addresses of all partners, nature and purpose of the business, the address of the business, start time and duration of the partnership, financial contributions from each partner and the amounts of such contributions or a formula to calculate how much each partner must contribute, the role and authority of each partner and the proportion of ownership of each partner. The agreement should also look at how profits and losses are to be shared among the partners, the amounts of salaries as well as drawings and income to be distributed, any limitations on the authority of each partner in making decisions or signing financial and legal documents, procedure of how the decisions are to be made by the partnership; accounting and banking details, provisions for the death, bankruptcy, or retirement of a partner. The agreement needs to outline how each partner can change or assign his or her interest in the partnership, how dispute resolution will be managed between partners, how new partners can be added, and provisions for the dissolution of the partnership (including the method of valuation and distribution of assets). More often than not partners do not put a suitable agreement in place, which in turn complicates matters when the relationship breaks up.

Disadvantages A partnership is not a separate legal entity; limitation of the number of partners who can enter the partnership (up to 20 partners although there are some exceptions); partners are individually and collectively liable; if a partner dies or disappears the other partners are left with that partner ’s debts and liabilities; inability to transfer a partner ’s interest in the business without the consent of other partner(s); bankruptcy or death ends a partnership; and clash of personalities may create disputes over administration and profit sharing. The law does not recognise partnership as a separate legal body and therefore, each partner is treated as an agent for the business. This means

Carefully evaluate your partners and agree on a clear division of the roles and responsibilities each partner can act alone and contract with a third party and all partners will be bound to that contract, regardless of whether or not the lone partner had the permission of the remaining partners. This also means any one partner can be sued for the total debts of the partnership. Before going ahead with the partnership structure, you need to evaluate your proposed partners, including their skills and business abilities, financial capabilities, potential nonfinancial contributions and the level of trust and respect between you. WWW.FRANCHISE.NET.AU

Tips for preventing partnership break-ups Prevention is the best cure. So before entering into any joint relationship, it is prudent to carefully evaluate your partners and to agree on a clear division of the roles and responsibilities of each partner and the exit strategy. Once all matters are agreed to, it is sensible to document it in a partnership agreement. F JAN/FEB 2012 FRANCHISING | 117


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Opinion THE SKETCH | TRENDS AND DEVELOPMENTS

What does a great franchise system look like?

B

ANDREW TERRY Professor of Business Regulation at the University of Sydney and consultant to DC Strategy

eauty, it is said, lies in the eye of the beholder. And that’s of course a beautiful thing from which many of us take great comfort. As we become older, wiser and more mature beholders we learn that beauty is more than simply the physical manifestations of beauty — and that inner beauty is a necessary element of a meaningful relationship. So it is with franchising. To recognise a great franchise the prospective franchisee has to look at what lies beneath its public persona. I have had a long involvement in judging the national franchising awards. I quickly learnt that the most compelling entries were those which offered both style and substance. An attractive, eye-catching and flashy submission has an immediate impact which will ultimately count for little if it is not supported by real substance. Similarly, a submission which has real substance that is presented casually and unprofessionally is unlikely to be successful. In awards, as in the quality of the system represented, it is the package of both style and substance which is important. Franchising comprises front of house and back of house elements. Front of house elements include the brand, the concept it represents, the get-up, the trade dress; the things the public sees and on which they make their buying decision. But prospective franchisees also have to take account of the back of house features: the underlying systems, formats, arrangements, policies which make the system and its outlets work. Prospective franchisees who fall in love with the public persona while neglecting what lies beneath may ultimately be seriously disappointed.

Breaking up is hard to do and is emotionally and financially costly Of course, it makes little sense to acquire a franchise which does not excite the prospective franchisee beholder and if there is no real passion for the concept, the brand or the public face of the system, then the search should continue. But if you like what you see the courtship is just beginning. What does a great franchise system look like? In contrast with the context in which the beauty in the eye of the beholder maxim is usually applied, an established track record is a good start. Great franchise systems exploit a viable market niche with strong and distinct branding, supported by proven systems, management, training and support. This column has always emphasised that while franchising as a business concept is a beautiful WWW.FRANCHISE.NET.AU

thing, it works in a particular case only because the franchisor has delivered on the factors which explain its remarkable success. The starting point is the Disclosure Document which documents the franchisor’s track record and is a guide to whether the system’s beauty is only skin deep. It doesn’t resolve the question of whether or not the franchise is a great franchise, but it provides some of the information on which this assessment can be made. It provides the basis for due diligence; for talking with current and past franchisees, professional advisers, family and friends – from which an informed decision can be made. What would I be looking for in a great franchise? An established track record and critical mass (unless you are financially and emotionally prepared to trade off the early mover disadvantages against the potential advantages); an acceptable explanation of why franchises have been terminated, not renewed or bought back; a comprehensive operations manual supported by adequate training and ongoing support; confidence that the arrangement is financially viable; a compelling business plan for the ongoing development of the system and the confidence that management can deliver on it; whether there is real and effective two-way communication. Of course, there is more, much more, but the point is clear. In franchising as in all relationships you need to look behind the pretty pictures before consummating a significant and ongoing relationship. Breaking up is hard to do and is emotionally and financially costly. F JAN/FEB 2012 FRANCHISING | 119


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Opinion PEOPLE | LEADERSHIP

What the Aspen taught me about teamwork

A GREG NATHAN Psychologist, managing director of the Franchise Relationships Institute, public speaker and author of Profitable Partnerships

few weeks ago while in Denver I had an opportunity to go for a drive in the Rocky Mountains with a colleague, Katrina Mitchell, who lives in the vicinity. At one point we pulled over to view an amazing sight – a mountain covered in glistening, golden Aspen trees of all shapes and sizes. The effect of these beautiful trees, shimmering in the breeze was spellbinding. Katrina explained that Aspen forests are actually one living organism connected underground. On returning to Australia I did some research on Aspen forests and discovered they are incredibly hardy and adaptable, with root systems that are often thousands of years old. I also learned the Aspen are often used as a symbol for strength of community. What a great analogy for a franchise network – a community of business people, growing together and drawing strength from their interdependent connections. Indeed, this combination of individuality and connectedness is one of the keys to success in franchising. However getting the balance right isn’t easy. Too much individuality creates chaos and an inconsistent customer experience. It also deprives franchisees of the benefits that come from true collaboration. On the other hand too much connectedness can cause franchise systems to become excessively internally focused. Franchisees can also become overly dependent on their franchisor. Common symptoms of this are not taking responsibility for

Great franchise systems enable franchisees to stand tall and grow on their own while they simultaneously remain connected and draw strength and protection from the group one’s own growth and failing to take the initiative to promote the business locally. So how do franchise systems achieve the right balance? I suggest there are two factors. The first relates to selection and induction, the second to franchisor leadership. The goal of a selection and induction process is to ensure each franchisee is ready, willing and able to take responsibility for managing their own business. Sure, they will need to draw heavily on the support of their franchisor in the early stages. But they 120| FRANCHISING JAN/FEB 2012

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Aspen trees are a great analogy for a franchise network

ultimately need to develop the confidence and skills to stand on their own. Taking responsibility for one’s own business is different to being a loner. People who have a deep need to always call the shots, have their own way or who habitually resist the rules of others, will find it hard to operate in a franchise network. In other words franchisees must be willing to fit in and occasionally compromise their own short term interests for the longer term good of the group. With regard to leadership, franchisors need to regularly define and clearly communicate which aspects of their franchise system are fixed or nonnegotiable, and what aspects are flexible and open to local innovation. They also need to provide opportunities for ongoing learning and development to keep people green and growing. Just like an Aspen forest, great franchise systems enable franchisees to stand tall and grow on their own while they simultaneously remain connected and draw strength and protection from the group. If we are open and observant, nature can teach us a lot about effective teamwork, which is critical for success in all areas of life, especially in a franchise network. F


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HMS Print Management P: 1300 912 550 F: 1300 912 650 E: info@hmsprintmanagement.com.au W: www.hmsprintmanagement.com.au 122| FRANCHISING JAN/FEB 2012

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Checklist TO DO LIST | HELP GUIDE

20 things to check before you invest Before you purchase your franchise you need to tick off all the must-do items. Check the following:

1. Are you confident in the franchisor? 2. Have you seen a disclosure document? 3. Have you evaluated the financial returns? 4. Do you know all the expenses franchisees are required to pay? 5. Have you worked out your operating costs? 6. Do you know the term of the agreement? 7. Is the business operating from fixed or mobile premises? 8. Are you working within a territory? If so, is the area exclusive? 9. Are you restricted in your product purchase? 10. Are you required to reach a minimum performance level?

11. What are the franchisee and franchisor obligations? 12. What training is available and who pays for it? 13. Who owns the intellectual property and what is licensed to the franchisee? 14. What marketing will the franchisor implement? 15. Who pays for the marketing? 16. What is the dispute resolution process? 17. Do you know what it is like to be a franchisee? 18. Can you assign the franchised business? 19. How can the franchisor or franchisee terminate the Franchise Agreement? 20. What restrictions are there on the franchisee and guarantor operating a similar business? [with thanks to Mason Sier Turnbull]

HOW SWEET IT IS! Full-time income with part-time hours

s No qualifications needed s Full training and support provided s Your vending machines do all the work, selling for you 24/7 s No staff For more information and to get started go to or call

www.rpvending.com.au

1800 066 112 AUSTRALIA AND NEW ZEALAND WIDE

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Searching for a particular franchise?

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A-Z listings

Use this showcase of franchise systems to find out some key k y de details ai aabout out the he bu business ines o opportunities p rtun ie aavailable, va ab e all in alp alphabetical habetical o order der ffor or eas easy y rreferencing eferencing To be part of the A-Z listings, please contact David Strong: email - david.strong@reedbusiness.com.au phone - 02 9422 2905; mobile - 0411 366 656

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Online directory

www.franchise.net.au

Phone: 08 8260 8211 or 0416 097 790 Fax: 08 8260 8100 Contact: Tony Innes Email: tony@sustainabledirections.com.au Website: www.6Pgreen.com.au

Phone: 1300 287 669 Fax: 1300 795 287 Contact: Steve Wren Email: steve@ats.com.au Website: www.appliancetaggingservices.com.au

Start up costs from: Less than $20,000

Start up costs from: $43,500 + GST

PROFILE: The 6P Green Program is a Business Sustainability Program that provides a platform for the introduction of environmentally responsible practices. The program is suitable for organisations from all business sectors including private enterprise, government departments, councils, non- profit organisations and small business owners. The main elements of the program are: • Six interactive workshops • Policy Templates • Carbon Management System • Sustainability Action Plan • Worksite Inspection

PROFILE: FCA EMERGING FRANCHISOR OF THE YEAR 2011 Looking for a franchise with on-going repeat business, large territories and access to an existing client base to get you started? ATS are Australia-wide specialists in Electrical Testing and Tagging in accordance with AS/NZS 3760:2010. Providing expert technical, admin, business and sales support, access to our National client base and comprehensive on and off-site training, ATS are committed to helping its franchisees grow profitable and successful businesses. No prior electrical experience is required - just a passion for safety and a commitment to growing your business. With low entry fees and minimal franchisee administration, an ATS franchise may just be the opportunity for you.

All training and on-going support provided. Low start up fees with quick return on investment.

Phone: 1300 766 202 Fax: 02 9415 5399 Contact: Helen Souvlis or Ian Skeoch Email: info@anytimefitness.com.au Website: www.anytimefitness.com.au

Phone: 1800 816 618 Fax: 07 5456 2874 Contact: Glenn McMahon Email: glenn@amazingclean.com.au Website: www.amazingclean.com.au

Start up costs from: $200,000 to $345,000

PROFILE: Amazing Clean developed the Ultrasonic Blind Cleaning & Repairs industry 15 years ago, and with over 70 franchises in Australia and NZ, is recognised by major blind manufacturers and retailers, as the only professional group that can clean and repair all types of internal & external blinds.In fact we are the only franchise in the World that do what we do.

PROFILE:

In 2005 we introduced Curtain cleaning, recognising that there was a need for such a professional service, this has doubled the franchisees profits and to maximise profits even further, we added 3 other services, Upholstery, Leather and Mattress Cleaning.

With Anytime Fitness, you’re in business for yourself, but not by yourself. With over

Anytime Fitness is one of Australia’s fastest growing franchise networks, with over 120 local clubs open in just over 3 years. The efficient Anytime Fitness business model benefits from low monthly fees, low staff numbers and exclusive territories.

1700 clubs open worldwide, a proven track record and over 55% of our franchisee owning more than 1 club.

Phone: 1300 769 967 Fax: 1300 883 989 Contact: Luis Nevares Email: info@austvending.com Website: www.austvending.com

Phone: 1300 309 759 Contact: Franchise Recruitment Team Email: franchise.recruitment@bakersdelight.com.au Website: www.bakersdelight.com.au

Start up costs from: $34,990 + GST

Start up costs from: 30% or $150k whichever is highest.

PROFILE Specialising in establishing new vending machine rounds including locations, first fill of stock, delivery, training and product supply. The company operates nationally in Australia and New Zealand. Exclusive importation rights and over 14 years in the market makes them the leaders in the industry. Austvending provides you with a reliable cash flow business with below average workload. Markup on stock from 300% to 700%. Austvending gives you the opportunity to have a business and enjoy your desired lifestyle at the same time!

PROFILE: Bakers Delight, Australia’s most successful bakery franchise was established in 1980. An Australian owned company, Bakers Delight has over 700 bakeries employing more than 15,000 people, serving 2 million regular customers per week throughout Australia, New Zealand, and Canada. The network is seeking passionate people who are ready to embark on business ownership immediately or to begin training for future opportunities through our structured training program. Bakers Delight has a 13.9 per cent share (Roy Morgan single source data June 2011) of the $2.8 billion Australian bread market.

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A-Z listings Phone: 07 33731760 Fax: 07 3373 1770 Contact: James Taylor Email: jamest@batteryworld.com.au Web: www.batteryworld.com.au/franchising Start up costs from: To open up a new store will cost in the vicinity of $200,000 to $250,000+GST PROFILE: Love retailing? Like helping people? Battery World Franchisees are uniquely placed to be useful to almost everyone. Battery World stores carry batteries for everything from mobile phones and lap tops to vehicles and boats. With over 78 stores throughout Australia we are the largest and most comprehensive battery retail franchise network and the only network focused solely on the battery category. If you want to invest your time and money in a powerful franchise, Battery World offers a unique opportunity to tap into an ever-growing market. A select number of franchises are currently available throughout Australia for motivated individuals with strong communication skills and a background in customer service. Australia’s leading battery retailer Battery World is offering qualified individuals a unique retail opportunity with a great growth potential. For further information about Battery World visit www.batteryworld.com.au/franchising .

Phone: 03 9439 5594 or 0419 494 480 Fax: 09 9439 5594 Contact: Rod Parker Email: rparker@bedshed.com.au Website: www.bedshed.com.au Start up costs from: $350,000-$600,000 PROFILE: Bedshed is one of Australia’s most successful and profitable bedding retailers. Bedshed will assist the right person in their purchase of the right store where they will use our accredited franchise model; tried, tested and perfected during our 30 year history. Our highly profitable franchise model is accredited with both Westpac and Bankwest, so you can rest easy. We have 39 stores across five states and are currently expanding our franchise network on the east coast of Australia. We are committed to securing the future of our franchisee partners by growing our network of stores and increasing our customer base. As Bedshed continues to expand, we deliver greater marketing clout and buying power for our franchisee partners. Owning a Bedshed franchise enables you to secure your financial future and choose your desired lifestyle.

Contact: Nick Prohasky Email: Nick.Prohasky@unilever.com Website: www.benandjerry.com.au

Phone: 02 9690 0120 Contact: Zoran Markovic Email: zoranm@book-now.com.au Website: www.book-now.co

Start up costs from: $300,000 to $450,000

PROFILE: Ben & Jerry’s scoop shops have been serving peace, love and ice cream around the world since 1978. Our signature chunks and swirls are loved by Ben & Jerry’s fan-atics all over the world. We are now in Australia and looking for partners to join our herd. Our current stores are situated in premium locations and are some of the highest turnover stores globally. If you value: • A true multinational brand • Market leadership • Advertising investment and support • Operational support • Great margins and a super premium offering • Potential for solid ROI and earnings We want to talk to you about joining our very limited store rollout in Australia.

PROFILE: book-now is the leading Operations Support System designed specifically for mobile franchise businesses, with a range of features unmatched by any other system. It is a modular IT system which adapts to the way you work. book-now can do everything the franchisor and the franchisees need to do. It automates most daily tasks to reduce administrative burden and save you time. It can improve your marketing and customer relationship management. The system consists of three principal parts: 1) the office-management part, accessible from anywhere in the world (cloud) 2) the mobile apps for iPads/iPhones/Android phones and pads and 3) an online customer system (connected to your website) No start-up or set-up cost makes the franchisor and the franchisees absolute winners. So call-now to book-now!

Phone: 1800 067 619 Fax: 07 5591 9021 Contact: Faith Manning Email: faith@rfg.com.au Website: www.brumbys.com.au

Phone: +61 418 500 721 Contact: Andrew on 1800 634 227 Email: andrew@briantracyanz.com Website: www.briantracyanz.com Start up costs: Investment is $44950 or $89950 PROFILE: As a Licencee, you are welcomed to an exclusive team of business advisors based around the world. You will be well trained in the area of business development, corporate training and coaching. You are then able to grow a substantial and profitable business through purchasing programs from the Brian Tracy International suite on a wholesale basis . The key areas of focus are professional development, sales and leadership development, and these programs are provided on a fee for service or government funded basis. They are delivered primarily in fast-moving interactive workshops or in coaching sessions. Brian Tracy International is recognised as one of the world’s premier training and development companies.

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Start up costs from: $420,000-$455,000 PROFILE: Brumby’s is a specialty bread retailer Our focus is on product, retail and operational excellence. Our bread is baked fresh daily complementing a unique range of products that satisfies the trend for high fibre foods being a diet staple. Check out our new “Pure Bake” - bread free from numbers. • Business Development Managers continue training/provide hands-on help once stores open. • The training program covers aspects including hands on operational skills, human resources, financial management, customer service, operations, marketing and administration • RFG has over 1150 franchised outlets throughout Australia and Internationally. • Extensive property and leasing experience optimises lease negotiations, provides proven shop designs and fit out expertise.

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A-Z listings Phone: 1300 Cafe2U (1300 223 328) Fax: (02) 9451 3168 Contact: John Stanton Email: franchises@cafe2u.com.au Website: www.cafe2u.com.au

Phone: 1300 139 557 Fax: (03) 9729 9512 Contact: Lia Barnes Email: enquires@thefranchiseshop.com.au Website: www.mycashmart.com.au

Start up costs from: $129,600 + GST

Start up costs from: $250,000

PROFILE: Australian Cafe2U mobile café franchise allows people to enter the lucrative coffee market without the hassles of landlords, staff or rent. As market leader, Cafe2U have a proven system with a network of over 180 franchises in Australia, UK, Ireland and USA. Cafe2U has resources and expertise unparalleled by any other mobile coffee system. A unique offering from Cafe2U is the “Acceleration Package”. This is a proven kick start to the business accompanied with an income guarantee. Using a personalised programme that combines classroom training and business mentoring, success is guaranteed from day one. This means higher profits sooner.

PROFILE: Cashmart is a leading Australian Pawnbroker and unsecured cash loan service provider with a rich 3 generation, 40 year history. Cashmart was born in 1971 in Hobart Tasmania trading as the Bellerive Swap Shop. From that small beginning Cashmart has grown and diversified beyond the traditional areas of pawn broking and secondhand dealing and enjoys great success today. Cashmart delivers it’s services both in traditional store fronts and in the online environment. We stand by our catchphrase “For a great deal more” and we strive to deliver more service, more value, in more locations. Cashmart has recently developed a Franchise Model that enable’s true deal makers to become a part of our future and share in the proven financial rewards that the Cashmart brand provides.

Phone: 1300 094 764 Contact: Tony Melhem Email: franchise@cococubano.com Website: www.cococubano.com

Phone: 02 8353 5203 or 1300 657 339 Fax: 02 9326 0144 Contact: Holly Boal Email: hollyb@contourshq.net.au Website: www.contoursfranchise.net.au

Start up costs from: $295 - $550K

Start up costs from: approx $100,000 to $150,000 PROFILE: Coco Cubano has been inspired by the romance and rustic charm of Cuba as well as the friendly, sophisticated style of the European cafe?:bar experience. We have blended these inspirations to bring a unique, multi¬location cafe?:bar destination to Australia. Coco Cubano offers customers delicious handpicked espresso coffee, tasty tapas, decadent chocolate drinks and delicious meals at all peak trading times from morning to night. With a strong business model and a management team with years of experience in franchising, business and hospitality, Coco Cubano is a strong coffee franchise offering. Limited AAA grade sites available.

Phone: 03 5222 8227 Fax: 03 5222 8692 Contact: Jason Cobb Email: jason@crackmasters.com.au Website: www.crackmasters.com.au Start up costs from: $88,000 ex GST. Entry includes everything other than your (usually leased) van. PROFILE: CRACKMASTERS are leading the way in pavement maintenance. Becoming a CRACKMASTERS franchisee will provide you with multiple opportunities including: • Outdoors Lifestyle • Work / Life balance (flexible hours) • Commercial appeal to the government industry • Financially rewarding • Cost effective techniques and simple technologies providing a huge competitive edge • Strong support and training • Building your own business equity The best part: ground-floor and innovative opportunity with large market potential.

PROFILE: Contours is an international female focused fitness group with around 140 franchise locations across Australia. With an Australian based support team, we offer full training, marketing and business support. Contours allows you to run your own business whilst maintaining a work/life balance.

Melbourne: 03 8102 9200 Sydney: 02 8220 8700 Email: growth@dcstrategy.com Website: www.dcstrategy.com PROFILE: DC Strategy is Australia’s leading business growth specialist with a proven track record of developing successful franchise networks and brands in Australia and internationally. DC Strategy’s specialist consultants assist business owners and franchisors with: • Growth strategy • Franchise system development • International expansion • Performance and profit improvement DCS Lawyers is a specialist corporate and commercial law firm with a proven track record of providing top level legal advice, matched by a commitment to delivering practical advice that supports the growth of your business. Our areas of expertise include: • Franchise law – franchisor and franchisee • Trademarks and intellectual property law • Disclosure documents and franchise agreements • Property and leasing transactions DC Strategy. Business growth specialists

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A-Z listings Phone: 1800 067 619 Fax: 07 5591 9021 Contact: Faith Manning Email: faith@rfg.com.au Website: www.donutking.com.au

Phone: +618 8410 2555 Fax: +618 8410 2322 Contact: Christopher Bruce Email: cbruce@dwlaw.com.au Website: www.donaldsonwalsh.com.au

Start up costs from: $295,000-$340,000

JOIN THE AWARD WINNING TEAM Donaldson Walsh FCA Supplier of the Year in 2009 and 2010 Corporate INTL’s 2010 Franchising Law Firm of the Year in Australia.

PROFILE: The Donut King difference: Simple products with hefty profit margins that are easily produced and allow multiple sales and marketing opportunities. Donut King appeals to all ages and demographics. New sites available now Australia wide.

Our national and international experience and expertise has provided countless clients with practical solutions to the complex issues faced throughout their franchise system’s lifecycle.

• Business Development Managers continue training/provide hands-on help once your store has opened. • The training program covers aspects including hands on operational skills, human resources, financial management, customer service, operations, marketing and administration • RFG has over 1150 franchised outlets throughout Australia and Internationally. • Extensive property and leasing experience optimises lease negotiations, provides proven shop designs and fit out expertise.

For straight-talking, forward-thinking support at every stage of the franchising process, our award-winning team is at your service.

Phone: 1300 438 783 Fax: (02) 9907 2647 Contact: Julie Finch-Scally Email: Julie@dusterdollies.com.au Website: www.duterdollies.com.au

Address: GPO Box 1521 Sydney NSW 2001 Phone: (AUS) 1800 643 303 (NZ) 0800 880 046 (HK) + 852 2834 5832 Email: franchiseinquiry@dymocks.com.au Website: www.dymocks.com.au

Start up costs from: $22,500

Start up costs from: $400,000

PROFILE: The Duster Dollies is a booking agency for domestic cleaning. Started in 1993 it is now a franchised organisation with agencies across Australia. Run from home the business is administrative and organisational. Sub-contractors are used to do the cleaning, and pay an Agency Fee for each hour of work. All the cleaners are trained and the jobs quoted. Our service has helped The Duster Dollies win awards. The Duster Dollies Cleaning Agency is a Monday to Friday business suitable for either a couple or a single operator. Find out more about The Duster Dollies and become part of our family oriented organisation.

PROFILE: Dymocks stores are run and owned by individuals who have a genuine interest in books and are passionate about providing the very best in customer service. The Dymocks franchise system offers: • 130 years of bookselling experience which means that all aspects of our operation have been tested in a real commercial environment; • the opportunity to use Dymocks good name and a reputation for excellence in bookselling; • the benefit of large-scale advertising which no small business could individually afford; • a proven set of operating systems; • training and guidance; • access to group buying arrangements; • and experienced advisory staff to help your business grow. Looking to expand: Australia Wide, Hong Kong and New Zealand.

Phone: 1800 067 619 Fax: 07 5591 9021 Contact: Faith Manning Email: faith@rfg.com.au Website: www.esquirescoffee.co.nz

Phone: Fax: Contact: Email: Website:

Start up costs from: $200,000-$400,000

Start up costs from: $24,500

PROFILE: Esquires Coffee Houses are a highly recognizable international brand which believes great coffee can help. The brand strongly supports Organic Fairtrade practices and offers customers a socially responsible choice for their favourite coffee based drinks. The stores are situated in sought after locations and offer their customers an experience, with comfortable seating, free WiFi and a vibrant atmosphere. Esquires are committed to providing high quality products and exceptional customer service. The brand offers a full range of hot and cold Organic Fairtrade beverages and a wide selection of food for anytime of the day.

130| FRANCHISING JAN/FEB 2012

(02) 9838 7575 (02) 9838 0011 Tony Alevras franchise@eurekamultimedia.com.au www.eurekamultimedia.com.au

PROFILE: Eureka Multimedia Pty Limited is the nation’s leading award winning developer and supplier of high quality and affordable multimedia educational software titles. Eureka has over 100 software titles covering a diverse range of categories with many based directly on Australian school curricula, especially in the areas of literacy and numeracy. Eureka commenced franchising to ensure a better representation of its diverse product range and to deliver a higher standard of service to customers. Eureka believes its innovative approach to software development and high quality production, combined with a motivated franchise team, will provide a valuable resource to enhance children’s learning experiences Australia-wide.

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A-Z listings Phone: 1300 767 325 Fax: 02 9750 3074 Contact: Tania Katsanis Email: tania@flowersbyfruit.com Website: www.flowersbyfruit.com

Phone: 1300 FASTWAY Website: www.fastway.com.au Start up costs from: $25,000 + GST PROFILE: Whether you crave a better lifestyle, control over your income or a more rewarding career, a Fastway Courier Franchise can help you take control of your future. As a market leader in nationwide courier services, our multi-award winning franchisees enjoy:

PROFILE: Flowers by Fruit is the perfect alternative to a bunch of flowers. A multi award winning Australian owned business, Flowers by Fruit creates the freshest edible fresh fruit and chocolate fruit arrangements for any occasion. Passionate about quality and service we make all gifts fresh to order and deliver using our own refrigerated vehicles. We’re committed to “Delivering Happiness” to everyone, every time. There are two franchise models available. As an Edible Gift Guru (EGG) you’d dedicate your time to developing sales in your own exclusive area or own a Creation Centre and be responsible for creating and delivering these delicious products. If either sounds like you, we’d love to have a chat.

• Low start up costs • Guaranteed income packages* • A well known and trusted brand • No weekend work • Unparalleled business support and training • Exclusive territories • A perpetual franchise agreement with no ongoing fees So, if you’re ready for a positive change we’d love to hear from you. Call 1300 FASTWAY or visit us at www.fastway.com.au *Conditions apply

Phone: 1300 798 501 Fax: 1300 798 502 Website: www.franchiselegal.com.au Contacts: Melbourne: Ilya Furman Email: ilya.furman@franchiselegal.com.au Sydney: Heath Adams Email: heath.adams@franchiselegal.com.au

PROFILE: Franchise Legal is a commercial law firm which practices exclusively in franchising. Our lawyers offer extensive legal and commercial experience in the industry, having worked with many leading franchise systems in Australia and internationally. We act for both franchisors and franchisees in all matters affecting their business.

Level 5, 530 Collins Street, Melbourne, Victoria 3000, Australia. Phone: 1300 FRANCHISE Fax: 03 8640 0688 Contact: Kevin Bugeja Email: kevin@franchiseselection.com.au Website: www.franchiseselection.com.au

PROFILE: Franchise Selection is the leading franchisee recruitment company in Australia that assists potential franchisees through the interview and selection process. We offer potential franchisees a wide selection of franchises covering all industries including retail, food, automotive, telecommunications, construction and even service franchises. We pride ourselves in being leaders in our industry and our approach is not to sell franchises but to educate and assist buyers in finding the right business opportunity for them and to assist franchisors in selecting the very best franchisees.

Phone: 03 9819 0071 Fax: 03 9819 0611 Contact: Marie Rubinstein Email: franchising@grilld.com.au Website: www.grilld.com.au

Phone: 1300 CAR WASH Fax: 03 9923 6490 Contact: Sanam Ali Email: sanam@geowash.com.au Website: www.geowash.com.au

Start up costs from: $440,000-$550,000

Start up costs from: Roaming Van Model approx $44,000 + GST Shopping Centre Model approx $150,000 + GST

PROFILE: The healthy burger specialist – delivers a burger experience unlike any other. Winner of the 2010 and 2009 FCA Emerging Franchisor of the Year, Grill’d is a proven franchise model with a competitive advantage, experienced management and strong consumer appeal. Open 7 days for lunch and dinner, Grill’d offers in-restaurant dining and takeaway in a friendly, casual environment. There are currently +50 restaurants in operation across VIC, NSW, ACT, QLD & WA with many more in the pipeline. An overwhelming consumer response to the Grill’d model continues to drive growth, fuelled by positive community and media endorsement. We are seeking enthusiastic, passionate people with excellent leadership and customer service skills and a positive attitude to join our franchise family.

PROFILE: Geowash’s unique concept is revolutionizing the car wash industry in 35 countries around the world. Geowash is now Franchising Australia Wide. Geowash is 100% Ecological and consumes an average of less than 2 litres of water per car wash. Geowash’s unique business model of taking Car Wash to the customers, not just to the home or business but also the car parks of Australia where the customers can have their cars washed whilst in their “idle” time while parked at their work, shopping centre, school, railway station, beach etc. Profit from this unique concept today.

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A-Z listings Phone: (02) 9846 0374 Contact: Jenny Colla Website: www.gloriajeanscoffees.com.au

Phone: 0407 646 179 Contact: Nicholas Bernhardt Email: info@greenbizcheck.com Website: www.greenbizcheck.com Start up costs from: $38,500 inclusive

PROFILE: Gloria Jeans Coffees is an Australian-owned brand that is loved and respected around the world. With over 996 stores in more than 39 countries, we’re the world’s fastest growing franchise, serving millions of customers every week. But there’s more to our brand than these impressive statistics. There’s a culture of collaboration, for starters. There’s the family-style support network. There’s the drive to source and serve the best product around, providing our customers with the ultimate coffee experience. Because at heart, what our franchise partners share is a belief that better coffee makes a better world. If that interests you, we’d love to hear from you.

PROFILE: GreenBizCheck provides fast, affordable, world-leading annual green business sustainability programs scrutinized by universities, environmental agencies, governments and major corporations that maximize an organization’s green credentials with a 100% money back guarantee. GreenBizCheck now needs you and your expertise to become Australia and New Zealand’s most recognised environmental standard. You will be supported by a dedicated and passionate management team in building this exciting low cost franchise.

Phone: 02 8845 0100 Fax: 02 8845 0199 Contact: Domenico Lopresti Email: dom@gelatissimo.com.au Website: www.gelatissimo.com.au

Phone: 03 9234 2200 Fax: 03 9234 2266 Contact: Dean Salomone Email: deans@hairhousewarehouse.com.au Website: www.hairhousewarehouse.com.au

Start up costs from: $300,000

Start up costs from: $500,000 (inc stock)

PROFILE: Australia’s largest gelato franchise with over 20 years of product development and customer satisfaction. Gelatissimo presents a unique concept supported by a brand that embodies style and sophistication creating the feel for all things Italian… The tradition, the romance, the people and store aesthetics. Apart from creating a retailing point of difference, we have a strong and stable performance record. The average Gelatissimo store turnover is $773,000 with comparative store growth of +7.19% over the past 2 years. In a volatile and difficult retailing environment, these results are enviable and reflect a strong focus on brand and local store marketing. In addition, unlike many franchise systems at Gelatissimo we charge a flat royalty fee instead of a percentage of sales, so when your business grows you reap the rewards!

PROFILE: 2011 Franchisor of the Year - FCA As Australia’s fastest growing group of hair care and beauty salons, the company continues to set new benchmarks on systems, training and ongoing support. Since the first store opened in 1992 at Knox City shopping centre in Victoria, Hairhouse Warehouse has grown to more than 130 salons Australia wide. It now employs over 1000 qualified hairdressers and plans to expand to more than 250 stores in Australia and internationally over the next five years. It’s quite a story. One of the main features of the business model is its multiple revenue streams - retail products and salon services including hairdressing, piercing, waxing and other beauty services. And you don’t need to have a hair & beauty background to succeed!

Phone: (03) 8631 7710 Fax: (03) 8631 7799 Contact: Carly Parkinson Email: carly@hudsonscoffee.com.au Website: www.hudsonscoffee.com.au

Phone: 1300 912 550 or 0412 110 112 Fax: 1300 912 650 Contact: Leonie Harcourt Email: leonie@hmsprintmanagement.com.au Website: www.hmsprintmanagement.com.au

Start up costs from: $250,000-$350,000 PROFILE: HMS Print Management provide print, promotional, warehousing and distribution solutions. We print, store, pick n pack, assemble, provide campaign and mail house management then label and despatch goods to your stores.We reduce your print costs to give you a healthier bottom line. Think of us as your communications health experts, with a remedy for every complaint. We commit to take away the pain of overspending, inefficiency and poor delivery and put a smile back on your face. Contact us today for a no obligation print management analysis.

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PROFILE: At Hudsons Coffee, we believe that behind every great coffee is a great person with a real passion for real coffee, just like us! We place great importance on franchise selection, as matching the right franchisee to the right site is imperative. This has resulted in a dynamic, satisfied team of franchisees that share like-minded business goals, and are a great support network for one another. The franchise is expanding in Australia with sites selected in a range of areas including central business districts, hospitals and regional areas.

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A-Z listings Phone: 07 3878 5677 Fax: 07 3878 5066 Contact: Ben Stoltz, Managing Director Email: ben@janiking.com.au Website: www.janiking.com.au

Phone: 1800 465 786 Fax: 02 9987 0004 Contact: Anthony Davis Email: anthony@inkontherun.com.au Website: www.inkontherun.com.au

Start-up costs from $15,000 ex GST Start up costs from: $44,000

PROFILE: lnk on the Run is Australia’s premium mobile supply and refill service catering to the growing market of lnks, laser and copier toner cartridges to both homes and businesses. More and more we hear of consumers frustrations with the costs associated to run the printer at work and/or home. lnk on the Run offers not only competitive pricing on branded product but a green and more cost effective alternative of refilling. Opportunities are available throughout Australia with no technical expertise required as full training and standing systems ensure you will have the foundations for a successful business.

PROFILE: In a field full of mostly fast food franchises and fast moving consumer goods, Jani-King Commercial Cleaning offers a refreshing and welcome investment opportunity. More than 850 active Jani-King Franchisees are operating across Australia and New Zealand, supported by a network of Regional Offices in most capital cities. The attraction of a Jani-King Franchise is its low entry fee – with opportunities starting from $15,000 ex GST – and global, professional presence. All Jani-King Franchisees receive extensive, ongoing training and are supported by a Regional Manager, Operations Manager and Administration Team that takes care of the paper work for them, so they can get about the business of cleaning-up. It’s what makes Jani-King Commercial Cleaning “the King of Clean!”

Phone: 131 546 Contact: Theunis Terblanche Email: franchise@jimsbuildingmaintenance.com.au Website: www.jimsbuildingmaintenance.net

Phone: (AUS) 02 9527 5444 Fax: (AUS) 02 9527 5144 Contact: Chiree Craig Email: chiree@justcuts.com Website: www.justcuts.com Start up costs from: $160,000 to $240,000

Start up costs from: $28,000 to $40,000 Depending on the Region and Territory

PROFILE: The Jim’s Group consists of about 32 different divisions with more than 3,200 Franchisees. Joining Jim’s is the best decision you can ever make if you are looking for a Lifestyle business where you prefer to work at your own time and pace. Having the Jim’s logo displayed on your vehicle or trailer is almost like having a Grandpa’s comforting hands behind you as you are enjoying the support of a very well-known Australian owned brand. Franchise opportunities exist in all states.

PROFILE: Don’t just buy yourself a Job! Discover how you can easily run a “Genuine Business System”. Did You Know? Most of our Just Cuts™ Franchise Owners are not Hairdressers. Plus, the average Franchise Owner goes on to own multiple stores. Why? Because proven systems, support and training means your hairdressers become the technicians and easily run the business for you. At Just Cuts™ Franchise Owners have been free to grow to own multiple sites. Just Cuts™ do over 65,000 Style Cuts™ cuts a week! Just Cuts™ offer a no booking, no request quality Style Cuts™ cut and at an affordable price. Contact us today to find out how. Join the largest Hairdressing Franchise in the Southern Hemisphere.”

Phone: 1300 737 978 Fax: 03 9005 2991 Contact: Mr. Brijesh Purohit Email: franchise@keentoclean.com.au Website: www.keentoclean.com.au

Phone: 02 8372 0918 Contact: Daniel Hochberg Email: danielh@kingofknives.com.au Website: www.kingofknives.com.au Start up costs from: $250,000 (Approx)

Start up costs from: $25,700 + GST

PROFILE: Keen to Clean is an innovative, professional and committed market leader in all forms of cleaning, both residential and commercial. We offer a truly unique path for a franchise owner to grow with the system and the opportunity to expand their franchise operations. Keen to Clean has enjoyed strong growth in Melbourne through franchise sales over the past few years, in the coming years Keen to Clean wish to expand the franchise operation throughout Australia. With many franchise offers there is a franchise to suit anyone, whether you are the type of person who could take on a master franchise or simply buy and operate a general franchise we have something to suit you.

PROFILE: With over 65 stores and 24 years of retail experience, Australia’s premier retailer of knives, kitchenware, outdoor and leisure tools has developed a category leading brand. Training: Our comprehensive training ensures that franchisees are experts in their field. It’s YOUR business: Franchisees choose their own stock, ensuring they are in control of their business. Product and Pricing: Franchisees benefit from our exceptional buying power as well as exclusive high margin house brands. Customer Service: Uniquely, stores have a “demonstration table” which allows customers to trial products before they buy Marketing: 92% brand recognition achieved through in-store promotional material, catalogues, on-line and magazine and newspaper advertising Communication: Franchise meetings, store visits from support office and our much anticipated National Conference ensure you are a part of a team.

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A-Z listings Phone: 1300 565 597 Contact: Holly Beck Email: franchise@lollypotz.com.au Website: www.lollypotz.com.au

Phone: 02 9967 5500 Fax: 02 9967 5511 Email: graham.england@kwikkopy.com.au Website: www.kwikkopy.com.au/franchise Start up costs from: $210,000

PROFILE: A Kwik Kopy franchise is your path to a successful new business. And what’s more, you don’t require any print experience to take on a Centre. Kwik Kopy is a B2B print and design provider, focussing on the small to medium business market. A highly established and recognised brand, Kwik Kopy has been operating in Australia for over 25 years and has an extensive network of Centres in regional and metropolitan locations Australia wide. The benefits of becoming a Kwik Kopy franchisee include: * Award winning franchise model * Regular working hours Mon-Fri * Strong brand and on-going marketing solutions * Extensive training and on-site assistance.

PROFILE: Lollypotz franchise owners make and deliver beautiful chocolate bouquets in their large exclusive territory. They even make money if a customer from within their territory orders a bouquet anywhere else in Australia. We have a well developed system, website and National Support Office to support you and all Lollypotz franchise owners receive excellent training, induction and ongoing support. Franchise owners can choose whether to operate from a home office undertaking casual mall leasing at peak period or take the traditional shopfront if they prefer.

Phone: 02 9638 8000 Fax: 02 9638 8832 Contact: Mark Futeran Email: mark.futeran@hunterdouglas.com.au Website: www.luxaflex.com.au

Phone: 1800 686 997 Fax: 02 8569 0901 Contact: Ben - Sales Manager Email: sales@magazinevending.com.au Website: www.magazinevending.com.au Start up costs from: $29,550

PROFILE: The LUXAFLEX® Window Fashions brand is the market leader in the premium window coverings category in Australia. The LUXAFLEX® Gallery program is the top tier licensee network with over 75 Galleries nationwide with over 30 areas still available in all states, regional & metropolitan areas. The Gallery showrooms provide residential consumers a quality experience with specialised service along with access to large full size operating blinds, shutters and awnings, which has been a key success factor for the program. Providing a fully supported program including customised training, marketing, advertising, web, business support and resources, it is the most comprehensive program in the industry.

PROFILE: Magazine Vending Exclusive Distribution Rights Magazine vending is the first proprietor offering this unique innovative concept to the new age vending machine industry. We partnered with established brands to support a new vending concept that would open doors to a new network in vending, where we could offer the consumer a product as an added convenience. We approached ACP Magazines and Wurlitzer with our idea and after two years of intensive research and development, in all aspects of the business from location demographics, supplier agreements, to the mechanics and manufacturing of the state-of-the-art Magazine Vending Kiosks, we are now launching our state of the art Magazine Vending machines across Australia.

Phone: 1800 556 245 Fax: 02 8088 0773 Contact: Andrew Dalton Email: andrew.dalton@mbe.com.au Website: www.mbe.com.au

Phone: 1800 067 619 Fax: 07 5591 9021 Contact: Faith Manning Email: faith@rfg.com.au Website: www.michels.com.au

Start up costs from: $150,000-$200,000 PROFILE: The concept of MBE Business Service Centres (Mail Boxes Etc.) in Australia started in 1992, with a primary focus to make business easier for small businesses across the country. After much hard work and perseverance, our network has become the largest franchised chain of business service centres, not only in Australia, with nearly 40 locations, but worldwide, with 1355 internationally in 30 countries. In achieving all of this we have helped people pursue their dreams – dreams of becoming master on one’s own life path by starting their own business. We understand having your own business can be overwhelming endeavour if you only have yourself to rely on. As a franchisee in the MBE network, you are never alone in business. Our experienced team of support personnel at our Corporate Offices and in the field can help you make the most of your time and investment. You can feel the comfort in knowing that you’re starting your business for yourself, but never by yourself.

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Start up costs from: $325,000-$345,000 PROFILE: Michel’s Patisserie was founded with a simple intention: a central bakery distributes products to retail outlets which sell to customers. The product range exceeds 200 items including beverages. • Business Development Managers continue training/provide hands-on help once your store has opened. • The training program covers aspects including hands on operational skills, human resources, financial management, customer service, operations, marketing and administration • RFG has over 1150 franchised outlets throughout Australia and Internationally. • Extensive property and leasing experience optimises lease negotiations, provides proven shop designs and fit out expertise.

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A-Z listings Phone: 1800 815 562 Fax: 03 9867 9264 Contact: Franchise Enquiries Email: FranchiseEnquiries@midas.com.au Website: www.midas.com.au/franchising

Phone: 02 9542 2000 Fax: 02 9542 2100 Contact: Drew Arthur Email: sales@micronet.com.au Website: www.micronet.com.au

Start up costs from: $120,000-$300,000 PROFILE: Micronet Systems is a leading provider of business software solutions to growing franchise groups. Since the introduction of our first generation product in 1983, over 2000 companies have implemented the Micronet software in a diverse range of industries. Our tailored franchise solution assists franchise groups to grow, manage and improve their business processes while removing the everyday burden to IT. The Micronet franchise solution is specifically configured to suit the unique business processes and industry requirements of today’s franchise operations. Delivering greater business control and improved profitability, the Micronet solution gives franchise groups greater market differentiation and competitive advantage.

PROFILE: Midas is one of the most successful brands in the automotive industry, providing a complete set up for you with total systems and support. All you need to do is focus on your customers and running your business. You’ll be joining a brand with a clear vision - to offer our customers the best automotive experience available. The Know Where You Stand brand promise was developed in 2009 to deliver this vision, and is the basis for all of our national and local advertising – including TV, POS, online, DM, search marketing, local store marketing, print, press and more. If you’re passionate about customer service, committed to success, willing to follow a successfully proven system, prepared for an investment of $120-300K, and are keen to get started right away we want to speak with you!

Phone: 1300 790 898 or 0438 245 555 Contact: Gwendoline Email: info@mobilefatloss.com.au Website: www.mobilefatloss.com.au

Phone: 0411 649 594 Fax: 07 3622 2800 Contact: Andrew Roberts Email: andrew.roberts@mrrental.com.au Website: www.mrrental.com.au

Start up costs from: $29,000 with a $5,000 rebate for 1st 100 clients, so a total of $24,000 PROFILE: Mobile Fat Loss is the first of it’s kind in Australia. Income potential $5,000$15,000/week. Ultrasonic Fat Cavitation is the worlds first true weight loss machine - IT WORKS!! Clients can stay in the comfort of their home and you will go to them. We provide you with everything you need to get you started and your first 100 clients!! Why not buy multiple licences and secure a financial future. This is new & we have allocated a certain number of licences to each state in Australia. Don’t miss this opportunity.

Start up costs from: $100,000

PROFILE: Experience the Magic of Recurring Revenue with a Mr Rental home appliance rental franchise. Mr Rental is an international franchise group which has grown to nearly 90 outlets throughout Australia and New Zealand. Mr Rental awarded 2010 FCA Franchisor of the Year Winner is a 5 day a week business that provides a tried and successful business model. Other Mr Rental accolades include National Winner in the FCA MYOB Excellence in Franchising Awards – 2009 Excellence in Marketing, 2008 Emerging Franchise System of the Year and Westpac NZ Franchise Awards - 2009 Media Campaign of the Year, 2008 Retail Franchise System of the Year not to mention ranking 4th in the top 10, 10 THOUSAND FEET National Franchise Survey for Franchisee Satisfaction.

Phone: +613 8540 0200 Fax: +613 8540 0202 Contact: John Sier Email: john.sier@mst.com.au Website: www.mst.com.au

Phone: (08) 9277 8666 Fax: (08) 9277 9666 Contact: Geoff Elias Email: gelias@muzzbuzz.com.au Website: www.muzzbuzz.com.au Start up costs from: $299,000

PROFILE: Mason Sier Turnbull is widely recognised as one of Australia’s leading franchising law firms. We advise franchisors, franchisees and suppliers to the franchising sector on all aspects of franchising. We also act for new and emerging franchise systems and a multitude of business entrepreneurs who have invested in franchise businesses. Our relationships with reputable and professional franchise consulting and accounting firms allow us to confidently refer our clients to specialists for advice and services that are traditionally outside what law firms can offer.

PROFILE: Being a Muzz Buzz franchisee means you are a member of an established franchise that is currently enjoying unprecedented growth in the Drive Thru Coffee sector. A member of the FCA and ranked at number 6 nationally by www.topfranchise.com.au franchisee satisfaction survey. By becoming a Muzz Buzz Drive Thru Coffee franchisee you are joining a franchise that is vastly different from other coffee franchises. Drive Thru is the fastest growing sector in the retail coffee industry and Muzz Buzz is number 1 in Drive Thru Coffee. We are actively seeking franchise business partners for SA, VIC and QLD.

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A-Z listings Phone: 02 9362 0123 Fax: 02 9362 0124 Contact: NKA Marketing & Advertising Email: info@NKAunleashed.com Website: www.NKAunleashed.com

Phone: 1800 NANOTEK (1800 626 683) Contact: Franchise Recruitment Manager Website: www.nanotekcarcleaning.com.au Start up costs from: $45,000 + Car Lease PROFILE: Imagine the freedom and lifestyle of having your own mobile business and working from home – being able to clean a car anywhere and offer your clients the highest quality service at their home or office… This is the business reality of a Nanotek franchisee. Nanotek is the global leader in mobile car cleaning and detailing. Using exclusive polymer nanotechnology the Nanotek process encapsulates, lifts and removes dirt without scratching - it also leaves a protective coating which lasts up to 6 weeks. Because the process doesn’t require water, the Nanotek service can be performed anywhere – home, office, on the street, even on the showroom floor!. So whether you are after the independence and lifestyle of operating your own business, or the passive income that a fleet of nano-mobiles can provide, with Nanotek you can tailor your business to suit your goals.

PROFILE: Unleash Your Brand Potential with Sydney’s Innovative Marketing & Advertising Agency. The research-founded agency have created methodologies to achieve: • Emotional Engagement with the target audience • Enchanting customer relationships with your brand • Relevance through campaign connections NKA work with Franchisors aiming to evolve their brand, Franchisees aiming to increase their profits & Entrepreneurs interested in franchising their concept. Faced with a Marketing Problem or Opportunity? Talk to NKA on 02 9362 0123 or visit www.NKAunleashed.com

Phone: 1300 727 129 Fax: 02 8905 0933 Contact: Michelle Castelli Email: michelle.castelli@oporto.com.au Website: www.oporto.com.au

Phone: 1300 667 067 Fax: 1300 667 101 Contact: Clinton Capuzzi Email: sales@ordermate.com.au Website: www.ordermate.com.au

Start up costs from: $450,000-$700,000 PROFILE: Oporto is a 100% Australian-owned fast food franchise that specialises in freshgrilled chicken and burgers. Oporto opened its first store in North Bondi in 1986, stunning the locals’ taste-buds, with its unique flavour profile. It quickly gained a growing army of fans, establishing the first franchised store in 1995. Today Oporto has over 140 stores in Australia, New Zealand, USA and China, serving over 13 million customers per year. Oporto has developed into a strong player within the quick service restaurant market over the past 2 decades and this growth is set to continue. Opening an average of 15 stores a year has ensured Oporto are one of the few companies to have featured in the BRW ‘Fast Franchise’ issue every year since its inception in 2004. Become part of this great Aussie success story - Just Gotta Go Oporto!

PROFILE: OrderMate is the complete multisite franchise POS solution. OrderMate was established in 2001 to service the food and beverage POS market. Its success relies upon its uniqueness from the competition which is often generic and off the shelf. Easy to use front of house interface, whilst still giving you the powerful backend reporting to drive your business. OrderMate gives you the tools to track and manage the KPIs of your franchisees in real time. We have a proven track record of delivering a return on investment within 12 months. Our nationwide network enables us to rollout, service and support large scale projects.

Contact: Brett Jeffrey Email: AU-Pizzahut.Franchising@yum.com Website: www.pizzahut.com.au/franchise

Phone: 07 5532 7071 Fax: 07 5532 5351 Contact: Graeme Diamond Email: franchising@outbackjacks.com.au Website: www.outbackjacks.com.au

Start up costs from: $250,000 - $350,000

Start up costs from: $300,000 depending on fit out cost, contribution and location PROFILE: PROFILE: Outback Jacks Bar & Grill is an exciting fully licensed, family style restaurant franchise, specialising in casual dining and premium quality steaks. With the largest range of steaks on a menu anywhere in the world our concept provides wide market appeal. Our first store opened only 4 years ago with proven systems Outback Jacks has rapidly expanded to 24 stores in prime location throughout Australia. We believe in hands-on, motivated franchisees with a true desire to grow the brand through exceptional business habits and a passion for great food and customer service.

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Pizza Hut is the leading global pizza franchise, with over 12,000 restaurants throughout the world and is part of the quick service restaurant giant, Yum! Restaurants International. Franchising with Pizza Hut gives you the financial control of owning your own business combined with the support of a historically successful global company. With exciting new store opportunities available throughout Melbourne/Regional Victoria, Perth/Western Australia, Regional New South Wales, and South East/Regional Queensland there has never been a better time to join.

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A-Z listings Phone: 1800 245 447 Fax: (07) 3217 8900 Contact: Dean Atkins Email: joinourteam@poolwerx.com Website: www.poolwerx.com

Phone: 1800 624 323 or 0414 633 423 Fax: 02 4739 0307 Contact: Ron Browne Email: ron@pizzainn.com.au Website: www.pizzainn.com.au

Start up costs from: $93,950 plus van

Start up costs from: $80,000

PROFILE: Established in 1985, PIZZA INN found a niche in the market for a hand made, traditional Napoletan style pizza that is made fresh to order. Since day 1 at PIZZA INN it has always been a matter of quality, so every PIZZA INN store is operated by dedicated owners, trained by the founders themselves. With a proven system and great support, PIZZA INN prides itself on the passion to consistently deliver the freshest, tastiest range of products in the market today whilst providing excellent returns to a growing number of franchisees.

PROFILE: Twice named Australian Franchisor of the Year (‘Services’ and ‘Outright’ categories), PoolWerx has a strong history of innovation both in franchising and its own business sector – the swimming pool and spa aftermarket – in which it is also multi-awarded. PoolWerx is especially well known for its creation of the world’s first structured ‘Career Path in Franchising’ enabling franchisees the opportunity to grow within a single marketing area or develop a million dollar business with multiple vehicles, retail stores and marketing areas.

Bring your passion and join us as the journey continues…

Phone: 1300 4 RED ROCK (1300 473 376) Fax: 07 3390 2977 Contact: John Jolly Email: admin@redrocknoodlebar.com.au Website: www.redrocknoodlebar.com.au

Phone: 1300 4 REDCAT (1300 4 733228) Email: info@redcat.com.au

PROFILE: RedCat is an Australian company, with an Australian development team, and have a history of leveraging our flexibility and integration capabilities to partner with clients to implement and develop unique solutions.

Start up costs from: $180,000

PROFILE: Red Rock Noodle Bar is one of the healthiest food franchises around in this growing fast food industry. We deliver this by offering an exciting range of Asian 97% Fat Free tastes that appeal to all. Fresh Ingredients handpicked by our customers and “wokked” up right in front of your eyes. Currently 12 stores all over Brisbane as we expand this healthy option throughout Queensland and Northern NSW.

We have been a leader in hospitality point of sale and accounting software since 1992, and can supply integrated software and hardware solutions for Point of Sale and Accounting that can manage sales, staff, stock and payroll through to accounts, GST, customer loyalty, and Web Based multi-Site reporting solutions to provide the complete business management system. In particular, for the needs of franchised groups, we have developed an extremely flexible centralised management capability that permits multiple levels of control and reporting capabilities, from total head office management, through to localised management and web based consolidated reporting tools and a web based, (and mobile phone based), ordering system which is totally integrated into the Point of sale system.

Phone: 1800 066 112 Fax: (02) 9889 8900 Contact: David Green Email: sales@rpvending.com.au Website: www.rpvending.com.au

Phone: 07 5455 3822 Fax: 07 5455 3616 Contact: Lionel Hedt Email: lionel@safetyquip.com.au Website: www.safetyquip.com.au

Start up costs from: $9,000

Start up costs from: $180,000

PROFILE: RP Vending Systems was established in February 1995 and is a national operation specialising in vending machine systems. We provide a unique business opportunity throughout Australia. Our extensive range of drink, snacks, coffee and fresh food vending machines are manufactured in Sydney, Melbourne, Europe and Asia. RP Vending Systems has a comprehensive range of vending equipment, but more importantly provide a complete business start- up system which includes; finding sites for your machines, ongoing training & support and access to the RP buyer network. This buyer network includes; Cadbury, Coca-Cola, Smiths etc. Full warranties and backup support are available Australia wide.

PROFILE: Workplace safety is a growth industry. Each year Australian businesses spend over $2 billion in the prevention of accidents and injuries in the workplace. SafetyQuip is a B2B distributor of workplace health and safety products. No safety industry experience is required. Full training is provided through our staff of professional educators. SafetyQuip franchisees continue to enjoy solid growth. As a result SafetyQuip was named a BRW Fast Franchise in both 2010 and 2011.

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A-Z listings Phone: 03 9428 1088 Fax: 03 9428 7055 Contact: Tony Maddock – services Adam Kernahan - lawyer Email: info@solutionsfranchising.com.au Website: www.solutionsfranchising.com.au

Phone: 0431 380 051 Contact: Dan Lape Email: dan@saidcreative.com Website: www.saidcreative.com

PROFILE: Tell more – and sell more! – in 2012 with Said Creative Strategies. Agency principal Dan Lape has been providing cost-effective and efficient marketing communications solutions to franchisors since 1993, and with a stellar client roster that has included KFC, Sizzler, Mail Boxes Etc., Domino’s Pizza, Subway, Jani-King Australasia and many more. We love working with franchised start-ups to help them succeed and realise their dreams, as well as breathing new life into well-established franchised brands. You won’t find a more dedicated and experienced agency to work with, that’s always achieved more with less expenditure, and that exceeds expectations. Discover why we say “The more that’s Said, the more that’s Sold!” with Said Creative Strategies.

PROFILE: Solutions Franchising is providing the industry with the best value professional services available. We will help you with; • Franchisee recruitment • Training programs • System development and maintenance • Strategic planning • Full legal services • Australia’s easiest CRM coming soon We operate all over Australia and have associates in India, Indonesia and Pakistan.

Phone: 1800 049 743 Fax: 1800 884 431 Contact: James Scurr Email: jscurr@silverchef.com.au Website: www.silverchef.com.au

Safe Kids In Daily Supervision

PROFILE: Silver Chef has been helping businesses to fund their equipment needs for over two decades. Silver Chef’s Rent. Try. Buy.® Solution offers a simple 12 month term so that you have the flexibility to: • Purchase the equipment and enjoy a 75% rental rebate • Return equipment if you don’t need it anymore • Keep renting and we will continue to reduce the purchase price • Upgrade if you decide your franchise has outgrown the original equipment And if you are part of an accredited franchise, you will enjoy even greater benefits such as reduced rental bonds, rental discounts and pre-approval for all franchisees.

Phone: 08 8272 8488 or 0439 803 078 Fax: 08 8121 1835 Contact: Vicki Prout Email: vicki@skidsaustralia.com.au Website: www.skidsaustralia.com.au

PROFILE: Award winning Safe Kids In Daily Supervision (sKids) was founded in 1996; with continuous expansion accredited to a fun, learning and caring based program we now offer services to over 80 primary school based sites in New Zealand. Now in Australia, using the foundations of the program’s success and our passion for providing fun, structured and safe Out of School Hours Care (OSHC), we are building on our efforts and services offering Master Franchises and local franchisee opportunities in every state. If you are looking to work with children, make a difference and own a business that is both financially and emotionally rewarding then talk to the award winning team at sKids.

Silver Chef Limited is a public company listed on the Australian Stock Exchange.

Phone: 07 3331 1400 / 0435 841 811 Contact: Catherine McGill Email: cmcgill@snapfitness.com.au Website: www.snapfitness.com.au

Phone: 1800 762 766 Fax: 02 9837 9199 Contact: Nick Hudson Email: nicholas.hudson@snapon.com Website: www.snaopontools.com.au

Start up costs from: $450k - 550k inc. equipment

Start up costs from: $37,000 with financing packages available.

PROFILE: In today’s uncertain economy, professionals and small investors from all walks of life are saying “enough!” and partnering with Snap Fitness, the fastest-growing franchisor of compact, state-of-the art, 24/7 fitness centers in the world. Discover the freedom, flexibility and fulfillment that comes with owning the leading alternative to traditional “big box” health clubs; and a value-driven concept that’s right for the times. Easy to own *Affordable Investment *Financing Investments available Easy to manage *complete Turnkey operation

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Easy to market *Ready to go - proven sales and marketing support

PROFILE: Snap-on Tools is the global leader in developing and manufacturing innovative tools and equipment predominantly for the automotive industry. Franchisees operate from a custom built mobile store that takes the in-demand product direct to the customer’s workplace. Extensive training and ongoing support is provided – no previous mechanical experience required. Operating in Australia for over 21 years, Snap-on Tools is one of the longest running and most successful global franchises, with a proven and profitable business model and was named Best Value Franchise System by Smart Investor Magazine. Today Snap-on Tools is seeking to expand its franchisee base in Australia, offering an exclusive finance package to support the transition of suitable candidates into their own successful business.

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A-Z listings Phone: 0427 401 169 Fax: 03 9888 6327 Contact: Alistair Browne Email: alistairb@snooze.com.au Website: www.snooze.com.au

Phone: (NSW/ACT) 02 9250 5000, (VIC/TAS) 03 9287 9555, (WA/SA) 08 9430 2877, (QLD/NT) 07 3877 7333 Email: franchdev@caltex.com.au Website: www.caltex.com.au

Start up costs from: $450,000

PROFILE: Snooze is Australia’s premiere bedding retailer, and has been recognised numerous times by the franchising industry as being one of Australia’s Top 10 franchise businesses. Snooze is also Australia’s longest operating franchise business, so joining the Snooze family means you’re becoming part of one of Australia’s most successful retail businesses, with more than 30 years of experience. Snooze provides each of its new franchisees with thorough initial and ongoing training and support across all business areas to ensure each franchise is successful and continues to grow. Snooze is always on the lookout for enthusiastic individuals to join the team, so get in touch now for your information pack!

PROFILE: You may not be aware that Caltex Australia operates one of the largest convenience retail networks across the nation with company and franchised stores operating predominantly under the ‘Caltex Star Mart’ brand. In fact, our world class business model, merchandising and field support has made Caltex the No 1 convenience retailer in the marketplace. We are actively seeking high calibre franchisees who have a passion for retail and a burning desire to be successful in convenience retailing. As a Caltex franchisee, you will be associated with an iconic brand, so if you have the passion, commitment, ambition and drive for results, then this may be the perfect opportunity for you. For more information about a Caltex franchise, please visit www.caltex.com.au and register your interest by clicking on ‘Franchising at Caltex’.

Phone: Toll Free Australia 1800 630 355 NZ 0800 444 618 Fax: 07 3852 4081 Contact: Franchise Administrator Email: ssa@subway.com Website: www.subway.com

Phone: 1300 769 967 Fax: 1300 883 989 Contact: Luis Nevares Email: info@staycleanhands.com Website: www.staycleanhands.com Franchises from: $80,000 + GST PROFILE: Stayclean Hands is a franchise system that specializes in the business to business supply of hand sanitizing solutions through service contracts in clearly defined areas. Service contracts provide a guaranteed monthly income to franchisees and the franchise system offers attractive returns on investment every year. The battery-operated dispensers offer the latest in environmental design and touch-free technology, measuring the exact amount of solution into the hands of each user. With a modern look and silver finish, they are an essential component to every healthconscious business owner. Franchisees are supported through marketing activities, lead generation, centralised invoicing and all systems and processes; however, it is their responsibility to sign service contracts in their exclusive areas. Franchisees must be extroverted operators who are comfortable delivering presentations and increasing clientele in their territory or be able to hire a dedicated salesperson.

Start up costs: Varies by site PROFILE: For an unprecedented 17 times in 23 years, the SUBWAY® Restaurant chain has been ranked the No.1 Franchise Opportunity for 2010 by Entrepreneur Magazine in its annual “Franchise 500” rankings*. The SUBWAY Restaurant chain is the world’s largest submarine sandwich franchise**, offering business owners simple operations, ongoing field support and defined marketing structure, along with providing customers with a variety of freshly made menu options. For over 40 years, the SUBWAY® brand has been helping individuals build their own, independently operated business – run by people just like you! From step one, throughout the entire franchise process, the SUBWAY® system provides training and guidance that aids in the operation of each restaurant. *The SUBWAY® franchise was ranked the number-one global franchise among franchises with worldwide operations in the 2010 Franchise 500® issue of Entrepreneur® magazine, based on research and analysis of those franchises having worldwide operations.. ** Numbers are subject to change. Please refer to www.subway.com for latest restaurant and country counts.

Phone: 02 9569 7866 Fax: 02 9569 7811 Contact: Graham Streeter, General Manager Business Development Email: graham@sumosalad.com Website: www.sumosalad.com Start up costs from: $$350,000 plus GST PROFILE: SumoSalad has enjoyed phenomenal success and growth since its inception in 2003 and has built a strong, trusted and recognised brand in the food retail industry with loyal customers following the brands continual expansion into key sites throughout Australia and abroad. With obesity now a global epidemic, such an overwhelming positive response from customers, industry bodies and franchisees is no surprise. SumoSalad is now providing healthy eating to over 145,000 people each week in many of the best sites across the country, mainly positioned in central CBD and strong performing suburban shopping centre locations. Due to increased visibility, awareness and convenience, our brand has grown in strength and more importantly popularity and profits. The media are continually pushing consumers towards leading a healthier lifestyle and SumoSalad is pioneering this change in the Fast Food industry.

Phone: 13 GEEK (13 4335) Fax: 07 3386 0124 Contact: Mick Davey Email: franchise@supergeek.com.au Website: www.supergeek.com.au Start up costs from: $35,000 PROFILE: Business is all about relationships. SuperGeek franchisees care about providing dependable support to their extensive client base, creating a reliable income stream for themselves with our highly developed, easy to operate and fun business model. The company is driven and focused to provide a solid stream of convenient support solutions to home computer users and the SME sector. To ensure a sustainable and fast paced business growth, our new franchise owners are supplied with a comprehensive start-up and support package. Including active help in setting up business, on the job training at commencement and practical guidance from their own completely independent and experienced business coach. A SuperGeek franchise offers low start up cost and challenging opportunities for open-minded, dynamic and enthusiastic franchisees to the mobile IT and computer maintenance industry. Looking for an exciting and rewarding future? Then call 13GEEK today!

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A-Z listings Phone: 07 32577682 Contact: James Email: partners@theburritobar.com.au Website: www.theburritobar.com.au

Phone: (03) 8699 2555 Fax: (03 8699 2550 Contact: TeleChoice Reception Email: franchise@telechoice.com.au Website: www.telechoice.com.au

Start up costs from: $380,000 to $450,000 Start up costs from: $99,000

PROFILE: There has never been a better time to become your own boss. TeleChoice is a great choice for you if you are looking for a business in a dynamic industry. With over 150 stores nationally and a massive support base, you’ll always feel part of a great team. To start your own business and take control of your life, call TeleChoice today or visit www.telechoice.com.au.

PROFILE: If you put a $16 Billion dollar industry together with a massive demand for fast casual dining and Australians search for amazing new flavors then you have The Burrito Bar. Straight from the streets of Mexico and San Francisco The Burrito Bar brings the excitement color and street flavors to your door. • High volume business Turn Overs currently in excess of $1 million dollars • Easy to Run system with on line training and in store business support • SEX appeal. The burrito Bar is the latest kid on the Block We want Partners who are: • Passionate ,Crazy , innovative leaders • Have a passion to succeed.

  

Phone: (02) 8667 3104 Fax: (02) 8667 3200 Contact: Steven Clare Email: info@thinkfranchise.com.au Website: www.thinkfranchise.com.au

Phone: 03 5229 6716 Fax: 03 5229 6718 Contact: Jim Richardson Email: info@thechocolateroom.com.au Website: www.thechocolateroom.com.au Start up costs from: $200,000-$250,000

PROFILE: The Chocolate Room was established in Australia in 2006 - five years on we have over 45 stores world wide - Australia, India, Canada, USA and England. Our menu caters for the chocolate lover and boasts 23 flavours of beautiful Italian hot chocolate drinks, a wide range of chocolates and chocolate gifts, refreshing ice cold frappes, waffles with ice cream and strawberries and many other chocolate inspired dishes - we serve spectacular coffee too. Combine all this with site selection assistance, comprehensive modern fit out, an excellent training regime and unparralleled support, the chocolate room has it all.

PROFILE: ‘Think FRANCHISE Specialist Franchise & IP Advisers’ is a law firm that offers its clients more than other firms. Executive Director of ‘think’ Steven Clare is a Lawyer with Master of Laws qualifications (with Honours) and has spent time in the franchise business sector itself as General Counsel and COO for a major Australian franchise operation (APL). Which reported in 2008 a combined franchisee entertainment revenue of up to $130 million AUD. ‘Think FRANCHISE’ acts for both franchisors and franchisees. If you are a franchisor or prospective franchisor, ‘think’ can develop your business into a franchise system, providing you with legal and other strategic advice. The firm is a leader in providing cost effective solutions that are relevant to their client’s needs. Visit: www.thinkfranchise.com.au for more information.

Phone: 1800 220 039 Fax: 07 5522 0051 Contact: Peter Darnell Email: sales@touchupguys.com.au Website: http://www.touchupguys.com.au

Phone: 1300 TOP SNAP (1300 867 7627) Contact: Rob Watkin Email: rob.watkin@topsnap.com Website: www.topsnap.com Start up costs from: $39,000 + GST

Start up costs from: $85,250 + approved vehicle

PROFILE: Interested in real estate? Passionate or keen to learn about photography? Then a Top Snap property photography franchise could be for you! We are currently looking for positive, enthusiastic, customer-focused individuals to build their own professional photography business, with the support of an established franchise system behind them. As a leading and fast-growing property photography franchise, we have photographers located across the country servicing the real estate industry’s growing demands for property photography and marketing tools. In recognition of this outstanding growth, Top Snap was recently ranked 17th in the 2011 SmartCompany awards, which recognise and celebrate Australia’s fastestgrowing SMEs.

140| FRANCHISING JAN/FEB 2012

PROFILE: With over 130 van operations across Australia and New Zealand and over 20 years experience, the Touch Up Guys are the market leader in the mobile automotive paint and bumper repair industry. This Aussie-made mobile automotive franchise carries out repairs to bumpers, plastics, paintwork, vinyl upholstery, alloy wheels and much more. Servicing commercial, corporate and consumer markets, our franchisees are equipped with a state of the art mobile workshop, providing a convenient and cost effective alternative to traditional bodyshops. If you are looking for proven business model with low entry cost and low overheads and would enjoy working outdoors with your hands, then Touch Up Guys may well be the perfect career move for you. No prior experience is necessary as full technical and business skills training are provided.

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A-Z listings Phone: 1300 139 913 Fax: 1300 133 338 Contact: Darren Farrell Email: dfarrell@trusonic.com.au Website: www.trusonic.com.au

Phone: 03 9413 1594 or 0488 223 022 Fax: 03 9413 1401 Contact: Russell Desa Email: russell.desa@unitedpetroleum.com.au Website: www.unitedpetroleum.com.au/ franchising/welcome

Profile: Trusonic is a full service music provider and audio marketing specialist.

Start up costs from: $400,000 upwards PROFILE:

Trusonic’s digital music library contains more than 3 million tracks in all styles including Top 40, modern jazz, instrumentals and more. Their proprietary media player (the MBOX) receives music updates daily via the internet. With Trusonic you can: • Generate extra revenue and create branding with custom ads and IDs • Eliminate PPCA fees with their directly licensed music library • Play music and messages through your phone system • Control the music (and ads) at all sites from the one online interface

Australian-owned company and has become one of the largest independent fuel companies with over 270 convenience retail sites throughout Australia. United continues to invest heavily in its stores and systems which has earned the trust of the people and respect of major competitors. United franchisees enjoy ongoing support, guaranteed minimum income on Fuel Commissions, merchandising support, a national promotional program, five week induction program, on-going training, an exclusive affiliated partnership with the MYER one program.

To get Trusonic music working for you, call Darren Farrell on 1300 139 913.

United is a proud member of the Franchise Council of Australia (FCA) and was awarded 2011 Canstar – Most Satisfied Customers (Service Stations).

Phone: 03 9612 7297 Fax: 03 9629 4035 Contact: Robert Toth Email: robert.toth@wisemah.com.au Website: www.wisewouldmahony.com.au

Phone: 02 9420 9933 or 0402 295 977 Fax: 02 9420 9811 Contact: Samuel Hamrosi Email: sam@vanitybar.net Website: www.vanitybar.net PROFILE: Vanity Bar offers one of the most unique business opportunities available in Australia. We have worked long and hard to build a business system that offers our franchisees a great return on their investment and a solid cash flow to help them achieve their financial and lifestyle goals. Essentials vending - smart, compact & convenient. • Low Entry Cost. • Unique Concept. • Great lifestyle business. • Exclusive product range. • Great ROI. • Ultra-reliable high tech generation II Vanity Bars now available. Secure your area!

PROFILE: Wisewould Mahony is a leading commercial law firm with a 150 year history in Victoria with clients in Australia and worldwide. 25 Years of Industry Knowledge Member Franchise Council of Australia (FCA) International Franchise Lawyers Association (IFLA) Franchise Association of New Zealand (FANZ) Accredited Business Law Employment Specialists Fixed Fee Services to Franchisors & Franchisees based on scope of services Services provided: • Legal and consulting advice to Franchisors & Franchisees • Code compliance requirements • Dispute resolution – mediation – Solutions & Strategies • Sale/Purchase of Franchise Systems • Master Franchising • Employment Law & Workplace Relations Specialist Call or email for a complimentary brochure for Franchisors & Franchisees

Phone: 0414 669 101 Fax: 02 9771 9570 Contact: Stephen Spitz Email: stephen.spitz@xpressodelight.com.au Website: www.xpressodelight.com.au

Phone: 1300 yogabugs Contact: Rob Connelly Email: rob@yogabugs.com.au Website: www.yogabugs.com.au

Start up costs from: $69,400 + GST

Start up costs from: $20,000

PROFILE: Invest in an Xpresso Delight franchise and seize the opportunity to profit from one of the fastest growing markets on the planet. As the number of savvy, educated coffee drinkers has boomed, the market has exploded! This pent up demand for gourmet coffee in the workplace is very poorly met. Each day, thousands of workers trek to the nearest café to pay as much as $4.00 for their morning and afternoon coffees. This is the premise of Xpresso Delight - transplanting the cafe into the heart of the workplace at a fraction of the price that people pay normally.

PROFILE YogaBugs is imaginative, interactive and fun for children aged 2 to 12 years, postures, breathing and relaxation techniques are woven together into fun stories and games. Being non-competitive & fully inclusive, children are always the heroes of their YogaBugs adventures. Breathing improves concentration and energy levels & promotes healthy sleeping patterns. Postures strengthen the core stabilising muscles & assists in reducing childhood obesity. Relaxation aids in better memory retention, whilst calming symptoms of anxiety and nervousness. A YogaBugs Franchise gives you exclusive rights to a Territory, start from $20,000 and can be run from a home based office.

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INCORPORATING FCA NEWS

Companies in this issue 10 THOUSAND FEET ANYTIME FITNESS

126* 15*

GREENBIZCHECK GRILL’D

FRANCHISE COUNCIL OF AUSTRALIA

* indicates FCA member

32* 108*

OUTBACK JACK’S BAR & GRILL PIZZA HUT

43

REDCAT

98

APPLIANCE TAGGING SERVICES 94*

HAIRHOUSE WAREHOUSE

APPLIED MARKETING SCIENCE

104

HMS PRINT MANAGEMENT

122

RED ROCK NOODLE BAR

AUSTVENDING

84*

HUDSONS COFFEE

35*

RETAIL FOOD GROUP

BAKERS DELIGHT

144*

INK ON THE RUN

BATTERY WORLD

100*

JANI-KING

2*

6 12*

BEDSHED

70*

JIM’S PERGOLAS

BEN AND JERRY’S

27*

KEEN TO CLEAN

111*

BRIAN TRACY

99*

KING OF KNIVES

25*

BURRITO BAR

65

KWIK KOPY

17

113*

19*

RP VENDING SAFETYQUIP SAID CREATIVE SILVER CHEF SKIDS

58* 83 125 68-69* 115 121* 28*

SNAP FITNESS

77

SNAP ON TOOLS

9*

CAFE2U

39*

LOLLYPOTZ

51*

CALTEX

105*

LUXAFLEX

59

SNOOZE

87*

MADDOCK SOLUTIONS

14

SUBWAY

71*

MAGAZINE VENDING

93

SUMO SALAD

91*

SUPERGEEK

97*

CASHMART COCO CUBANO

107 4*

CONTOURS

29*

CRACKMASTERS

57*

DC STRATEGY DIVERSIFIED EXHIBITIONS

88-89* 124*

MASON SIER TURNBULL MBE BUSINESS SERVICE CENTRES

THE FRANCHISE SHOP

81*

THE TOUCH UP GUYS

20

THINK FRANCHISE

44

22*

MIDAS

FASTWAY COURIERS

143*

MOBILE FAT LOSS

FLOWERS BY FRUIT

110*

MR RENTAL

FRANCHISE LEGAL

56

MUZZ BUZZ NANOTEK BY ECOWASH NKA

86 21*

TOP SNAP

95*

UNITED PETROLEUM

52-53* 37

GEOWASH

34*

OPORTO

GLORIA JEAN’S COFFEES

79*

ORDERMATE

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102-103*

THE DUSTER DOLLIES

62*

123*

TELECHOICE

11*

EUREKA FRANCHISE

72-73*

24

36

116

DONALDSON WALSH

GELATISSIMO

SUSTAINABLE DIRECTIONS

MESSAGECOM MICRONET

FRANCHISE SELECTION

13*

WWW.FRANCHISE.NET.AU

76* 114*

VANITY BAR

64* 46-47, 48*

78* 118* 45

WISEWOULD MAHONY

42*

XPRESSO DELIGHT

33*

YOGA BUGS

82


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Take control of your future The world’s largest Courier Franchise organisation, Fastway, now has a number of exciting opportunities to join our award winning team! „Low start up costs

„Exclusive territories

„Guaranteed income package*

„No weekend work

„Perpetual Franchise Agreement

„Unparalleled business support & training

„Recognised brand

„Easy to operate - no experience required

„Award winning system for over 25 years

„Enjoy the freedom of working for yourself

To find out more contact us: p. w.

1300 FASTWAY fastway.com.au

*Conditions apply. Fastway Couriers (Australia), ABN 38 057 389 769. This business is independently owned.


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Our success could be your future Bakers Delight is the most successful bakery franchise in Australia with 700 bakeries and 31 years proven experience. If you want to be in control of your future and be part of that success, you can own your own franchise.

Contact 1300 309 759 or visit bakersdelight.com.au


Franchising - Volume 25 / #01 - Jan / Feb 2012