HEALTH + BEAUTY
WHAT YOU NEED TO KNOW: FRANCHISE RENEWALS
Franchising Sep/Oct 2013 VOL.26/No.5
Your essential guide to buying
FAST FOOD FRENZY
HOW TO AVOID franchise failure
PRIME TIME Making aged care your business
Is online the best way?
extra costs you need to add in
AUS $6.95 NZ $7.95
PLUS: ANYTIME FITNESS, NATIONAL TILES, ZARRAFFA’S COFFEES
Franchise Opportunities Available Do you have the
to be a CouriersPlease Franchisee? Low Start up costs Ezy Tech system to operate business Guaranteed income package* Exclusive territories Extensive training & support
Contact us today!
Phone:1300 PLEASE Email: enquiries@couriers please.com.au www.couriersplease.com.au *Conditions apply.
Service is our Success
Contents SEP/OCT 2013 | YOUR ESSENTIAL GUIDE TO BUYING A FRANCHISE
Fast food frenzy Getting started in the fast food business
Cover story - Wok star
From sales to small business ownership
126 Glossary 129 Checklist 130 A-Z Listings 142 Advertisers Index
The business of beauty Niche grooming services
Small business ambition
The bar that comes to you
Survival skills Business survivors survey
The light touch
Why do franchises fail? Tips for staying on track
Why Shannan Ponton is an ambassador for Anytime Fitness
New skin clinic, Luminiere has an anti-ageing focus
In tile style
Kubarz is a mobile drinks service business
A professional approach Healthcare options
Fresh food delivers for a former boilermarker turned franchisee
One Sleepy’s franchisee couple share their story
The latest developments at National Tiles
Prime time The potential of the aged care sector
Do business the natural way Eco friendly opportunities
Corey Parker, healthy eating and the Red Rock Noodle Bar
Brand builders Making a living from marketing
Count in the costs... Budget for extras
Don’t ignore debt! Tips on dealing with debt
A good time to negotiate Shopping centres and leasing
105 The big picture Lifelong learning in business
Zarraffa’s Coffee franchisee tells his story
108 Access all areas
Back to the future
112 Your franchisor and the digital future
The Back in Motion group nurturing a wellbeing business WWW.FRANCHISE.NET.AU
Is online training the only way?
The digilogue approach SEP/OCT 2013 FRANCHISING | 3
Franchising Publisher Martin Sinclair P: 02 8484 0607 firstname.lastname@example.org Editor Sarah Stowe P: 02 8484 0900 email@example.com Journalist Brea Carter P: 02 8484 0661 firstname.lastname@example.org
Counting the cost
Contributing Journalists Domini Stuart
Columnists Andrew Terry Karli Furmage Raynia Theodore Graphic Designer Rizwan Nawaz P: 02 8484 0622 email@example.com National Sales and Marketing Manager David Strong P: 02 8484 0905 firstname.lastname@example.org Production Co-ordinator Laura Panameno P: 02 8484 0772 email@example.com Managing Director Jeremy Knibbs firstname.lastname@example.org For subscription enquiries call customer service: 1300 360 126 ISSN: 1321-408X
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SARAH STOWE Editor
etting up and running any business is a risky venture; it’s a commonly held view however that investing in a franchise provides an extra layer of support to bolster businesses - with some caveats: choosing the right location/territory, complying with the franchise processes and procedures, not relying on the franchisor to build the business. Anyone considering investing in a franchise will also recognise the importance of a business opportunity that offers a return on investment, that provides initial and ongoing training, that supports franchisees with admin and IT development, that has a good marketing strategy, has a strong network of positive-minded franchisees, all backed by a franchisor with vision. In an ideal world all will go smoothly. But there are obstacles - for every business - and sometimes these can add up to serious roadblocks. As our feature on franchise truths indicates, there are certain common traits among failed franchise businesses and it is wise to check these out. Cash flow crisis is not uncommon, and we look in this issue at some tips to avoid debt recovery. There is also advice on the extra costs you’ll need to count in to your initial budget to ensure your fi nancials stay on track.
There is advice on the extra costs you’ll need to count in to your initial budget Add into the equation a strong training program and franchisees can start their business with a plus. Our focus this issue on training looks at big picture learning, and whether there is more to training programs than clicking on a mouse. Down the track, the question will come up of renewing a franchise agreement and this month our legal column takes an in-depth look at what’s involved for franchisees. The Franchising team is gearing up for the National Franchise Convention 2013 from 20 to 22 October and will be reporting back on the latest trends, useful advice and awardwinning businesses, so check out our website www.franchise.net.au, and our Facebook page.
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 Cirrus Media.
SEP/OCT 2013 FRANCHISING | 5
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Ready Steady Go Kids launches franchise in India
A D _ FReady R A CSteady E 1 NGo OV _ 1 2 . pdf Image: Kids
READY Steady Go Kids has expanded its multi-sport program into India with franchises already buzzing with activity in Singapore, the UK and Indonesia. New master franchisees Nighat Jan and husband Faisal Shariff both have a health and fitness background, with Jan working as an occupational therapist and Shariff involved in the Indian sports industry for 16 years as a sports journalist and advocate. â€œReady Steady Go Kids covers all aspects of development that need to be addressed at this early stage of childrenâ€™s lives. â€œIt provides tremendous benefits for P a all g echildren, 1 1 including 1 / 1 0 / those 1 2 , with 1 2 : 4 special needs. Ready Steady Go Kids
helps control obesity, promotes an active lifestyle and also improves self-esteem, social skills and motivation,â€? said Jan. With ambitious plans to collectively train and educate at least 4000 children in their fi rst year of operation, the pair is working towards a long term goal of making Ready Steady Go Kids the flagship sports program for young children in India. â€œChildhood obesity is a huge problem here,â€? Jan explained. â€œMany of my occupational therapy clients have encouraged me to develop a program to increase activity levels in children. I believe Ready 8Steady P M Go Kids is the answer for children throughout India.â€?
Are You Insured? Can you afford to be off work due to accident or sickness? Personal Insurance: Your choice provides accident and sickness insurance benefits which can be put towards lost wages, out-of-pocket medical costs, or other unexpected expenses due to sickness or injury. Your Choice accident and sickness insurance offers: Ä‘ĆŤ ĆŤ +2!.#!ĆŤÄ‚Ä…ĆŤ$+1./ĆŤĆŤ 5ÄŒĆŤÄˆĆŤ 5/ĆŤĆŤ3!!'ĆŤÄ˘ĆŤ0ĆŤ3+.'ÄŒĆŤ0+ĆŤ* ĆŤ".+)ĆŤ3+.'ÄŒĆŤ home or leisure. Ä‘ĆŤ !Ăź*! ĆŤ!*!Ăź0/ĆŤÄ˘ĆŤ5+1ĆŤ'*+3ĆŤ!40(5ĆŤ$+3ĆŤ)1$ĆŤ5+1Äš.!ĆŤ(!ĆŤ0+ĆŤ(%)Ä‹ Ä‘ĆŤ +ĆŤ%*+)!ĆŤ04ĆŤ.!01.*/ĆŤ.!-1%.! ĆŤ3%0$ĆŤ,,(%0%+*Ä‹ Ä‘ĆŤ +ĆŤ)! %(ĆŤ!4)%*0%+*ĆŤ.!-1%.! Ä‹ Ä‘ĆŤ ĆŤ$+%!ĆŤ+"ĆŤ6!.+ĆŤ0+ĆŤÄ Ä‰Ä€ĆŤ 5ĆŤ3%0%*#ĆŤ,!.%+ /Ä‹ Our aim is to understand your needs and those of your family and to assist you in finding the appropriate level of cover you can reasonably afford. +ĆŤ..*#!ĆŤĆŤ/1%0(!ĆŤ,,+%*0)!*0ĆŤ3%0$ĆŤĆŤ(+(ĆŤ+)%*! ĆŤ */1.*!ĆŤ !,.!/!*00%2!ÄŒĆŤ* ĆŤ0+ĆŤ.!!%2!ĆŤĆŤ+,5ĆŤ+"ĆŤ+)%*! ĆŤ */1.*!Äš/ĆŤĆŤ* ĆŤ ĆŤ0+ĆŤ !% !ĆŤ%"ĆŤ0$%/ĆŤ,.+ 10ĆŤ%/ĆŤ.%#$0ĆŤ"+.ĆŤ5+1ÄŒĆŤ((ĆŤÄ ÄƒÄ€Ä€ĆŤÄƒÄ€Ä€ĆŤÄ…Ä‰Ä€ÄŒĆŤ!)%(ĆŤ email@example.com or visit www.combined.com.au today.
6| FRANCHISING SEP/OCT 2013
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Coral Homes builds success GOLD COAST based home builder Coral Homes has announced it will be franchising throughout Australia this year. The company has already established a vast network of display homes in Queensland and New South Wales since opening as a family business in 1990. Paul Sweeney, managing director and co-founder of the Queensland homes business, said that the combination of the company’s commitment to delivering value for money and providing quality construction with a high level of customer service has contributed to the business’ growth. “As a company our mission is to help more Australians into a new home. “I am extremely excited by the prospect that so many more Australians can soon gain access to these benefits
Image: Coral Homes
to help them into a new home, and I am very proud that soon this winning business formula can be shared with our franchisees throughout the country,” said Sweeney.
entrepreneurs in the IT industry who have the right skills, but who currently lack the infrastructure and budget to expand their offerings - we want to give every person the ability to run their own business. “But we also realised times are tough, so we cut our upfront fees. Franchises are supposed to be about working together to grow businesses, and we realised we could change our model to help our franchisees.”
THE FREE FRANCHISE OFFER
David Raffen Image: DrGroup
The franchisee of two La Porchetta restaurants in Melbourne has been caught out for allegedly underpaying 111 employees more than $250,000. The Byron Bay Cookie Company, which went into voluntary administration less than a month after it entered the franchising world in February, has been sold to the Rinoldi Group.
DrGroup’s franchise offer The IT franchising business DrGroup has eliminated its upfront franchise fees to help underpin its expansion into the New Zealand market. The group is lining up a multimillion Oceanic servicing contract and is looking to grow its New Zealand presence ahead of the deal. Managing director David Raffen said “We are looking for budding
• no up-front fee • franchisees pay for branding vehicles, uniforms and some corporate set-up costs (estimated at about $5000) • 15 percent monthly marketing contribution once the business is earning The group provides at-home servicing of IT, audio-visual and communications services and will provide up to 45 new franchises across its three brands (DrPC, DrAV, DrVC). In New Zealand this will be backed by a local call centre and office. WWW.FRANCHISE.NET.AU
Conveyancing is the latest division to join the Jim’s Group franchise juggernaut. Australian print business Snap Franchising has formed an alliance with two of North America’s prominent print and design groups. Plus Fitness has appointed a national franchise support manager. Harry’s Cafe de Wheels is expanding into the Asian and American markets, after interest sparked from Manila and the US east coast. Hotondo Homes has launched an online marketing campaign to spread the word about its new series of affordable home designs. Domino’s Pizza Enterprises is set to acquire a 75 percent stake in Domino’s Pizza Japan. Bookkeeping franchise First Class Accounts is expected to appoint a Malaysian master franchisee. The Leather Doctor is launching a major upgrade of its central software system.
SEP/OCT 2013 FRANCHISING | 7
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SumoSalad takes on American market THE SUMOSALAD brand was established after founders Luke Baylis and James Miller witnessed America’s obesity trend first hand, and now the franchise is setting up shop in the nation that inspired its existence. SumoSalad has appointed master franchisees for the North and South American markets, and stores are planned to open in both regions this year. Matt Yuriditsky will be handling the North American market, meanwhile Joao Mastrangelo, who moved to Australia a decade ago, is the brand’s South American master franchisee. Yuriditsky believes SumoSalad fills the gap in America’s lunchtime market, which is typically characterised by greasy, unhealthy options. “In the US we noticed a need for easy, convenient and affordable healthy lunchtime options, the current availability of this is scarce and consumers
are hungry for fresh accessible produce,” he said. He is excited to bring the brand to America, and believes it will be well received by locals. “When we discovered Sumo Salad in Australia and learnt of the values they pride themselves on, we knew it was a business we had to be a
Complaints drop: ACCC report ALMOST 3000 complaints and enquiries about small business or franchising were received by the The Australian Competition and Consumer Commission in the first six months of 2013. But there was a fall in complaints about the franchise sector. ACCC deputy chair Dr Michael Schaper is launching the half yearly report into the sector during the COSBOA National Small Business Summit in Brisbane. “The ACCC is keen to ensure that small businesses are aware of their rights and responsibilities, and has stepped up its engagement with small business,” Schaper said. “Our Small Business in Focus report sets out the key issues the sector is raising with us.”
FRANCHISING COMPLAINTS There were 286 complaints and 67 enquiries in the first six months of 8| FRANCHISING SEP/OCT 2013
2013 from the franchising sector, primarily from franchisees but with a small number of franchisors too. This compares to 454 complaints and 47 enquiries recorded in the previous six months. Over the financial year 2012-13 Franchising Code related issues brought in 122 complaints about disclosure (up from 101 the previous year) and 42 regarding termination of franchise agreement (down from 68 in 2011-12). In the franchise sector there was a rise in complaints about unconscionable conduct (61 up from 58) but complaints about misleading conduct or false representation dropped from 159 to 107. In the last six months 16 franchise systems in Australia have been issued with audit notices. So far most of the companies audited have been found to be compliant with the relevant Code. WWW.FRANCHISE.NET.AU
part of and introduce to the US.” SumoSalad stores are expected to open in Brazil at the end of year, where Mastrangelo has ambitious expansion plans. “I knew there was an opportunity to bring one of the local healthy food brands across to the people of Brazil and we couldn’t look past SumoSalad.”
Boutique addition A new boutique hotel group has been launched in the franchise stable at Choice Hotels Australasia (CHA) with the focus on individuality. The point of difference of the Ascend Hotel Collection is that each property retains its own individual name, yet has access to CHA’s distribution channels, its global network and associated reservations and marketing resources. Hotels must have a historic, boutique aesthetic with operators committed to service excellence. The brand launch in Australia includes the following hotels: Sydney’s Castlereagh Boutique Hotel, the Denison Boutique Hotel in Rockhampton and Gibraltar Hotel, Bowral.
Corey Parker has an appetite for wok business Red Rock Noodle Bar
risbane Broncos footballer Corey Parker is the ambassador for Red Rock Noodle Bar, an 11- strong franchise chain headed up by Phil Colburn. “It all started when Phil got in contact with me, we had a chat about me being an ambassador for the brand and promoting what they do,” says Parker. “It was an easy decision for me. The brand is good in the community and in promoting healthy eating. That was important for me if I was going to get involved.” Parker’s involvement is more than just a face fronting a brand, he’s committed to community activity too, and that draws crowds. “I’m somewhat the face of Red Rock, and I have an affiliation with radio station B105 where I talk about sport and rugby league and Red Rock sponsors the segment. I also do voice overs. “I like to get along to the stores in the
10| FRANCHISING SEP/OCT 2013
All images: Red Rock Noodle Bar
Inspire | Cover story
Inspire | Cover story
even with our busy lifestyles you can still choose to eat healthily when you eat out. “It was great to have him at our Victoria Point store recently meeting and greeting the kids down at Redlands. It is not very often they get the chance to meet a State of Origin legend like Corey to inspire them to stay healthy, eat well and to stay in sport. “He has been on top of his game in the world of rugby league for such a long time and it is great that he has a healthy eating option when he’s training and outside of football too that he and his whole family can enjoy.” The menu emphasises the nutritional aspects of the meals grouped into categories: noodle bar, fried rice bar, slim bar, vege bar, soup bar, kids noodle meals and entree. Most options are 97 percent fat free meals and the dishes reflect different styles of Asian cuisine, from Japanese influenced teriyaki chicken to Pud Thai, from sweet and sour combinations to Mongolian and Singaporean flavours. There is also a catering option for customers community and meet the locals. Red Rock does a wanting to serve Asian noodles at a function. terrific job of promoting this.” “They offer really affordable, value deals, it’s Says franchisor Phil Colburn, “Corey Parker is a good healthy eating on the run, and I think we all do role F R 0 9 1 3 _ 0 2 4great _ OB J model 1in the 2 0Queensland 1 3 - 0 8 - community; 1 3 T 0 9 : he 5 1 : 1a bit 0 +of1 this 0 : with 0 0 our busy lifestyles,” says Parker. is educating everyone but particularly the kids that There are frequent seasonal changes to the menu. »
I enjoy cooking myself, and I want to get one of my dishes on the menu
It’s all about the bread! We roll it, we eat it, we earn it And we’re successful at it. We have got nearly 300 stores in North America and we are now ready to offer franchises in Australia!
WHY EXTREME PITA? A lot of restaurants out there offer items that are fried within an inch of their lives. Extreme Pita has the right concept at the right time, because more and more consumers are looking for a fresh, fast, healthy alternative, something we have been doing since we opened our doors. Extreme Pita offers a fantastic range of healthy great tasting food
for busy, active individuals and families who want to live life to the fullest (extreme) from a company that doesn’t believe healthy has to taste bad or be boring. Cooked to order with no oil, only fresh veg and salad Menus for breakfast, lunch, dinner plus separate kids menu Extreme Pita | Gary Blyton
0414 55 32 32
firstname.lastname@example.org | www.extremepita.com.au
12| FRANCHISING SEP/OCT 2013
Seeking New rs rtners Fra ranchise Part
Pizza Hut is the world’s largest pizza restaurant company with more than 12,000 restaurants in over 90 countries. A subsidiary of global QSR giant Yum! Restaurants International, Pizza Hut boasts a strong history in Australia since opening its first Australian store in 1970. As a franchisee, Pizza Hut offers you the advantages of investment in a proven brand; flexible hours for individuals and families; and fun, exciting revenue potential within a great system.
To find out more please visit
Pizza Hut has exciting new store opportunities available throughout: • Melbourne & Regional Victoria • Perth & Western Australia • Regional New South Wales • South East & Regional Queensland We are looking for owner operators who have a hands on approach and a head for business. Sites have been selected, you just need to start training. Minimum equity required is $100,000.
Inspire | Cover story
“Just coming out of winter when we’ve had curries and soups, we’re heading for a bigger salad range,” says Parker, who admits to happily wielding a wok in his own kitchen. “I enjoy cooking myself, and I want to get one of my dishes on the menu.” That’s in the pipeline says Colburn, but in the meantime the franchise chain has a Corey Parker My Favourites range of specials on the menu too. “We’re working with Corey on this and we’ve picked out two or three things he loves.”
in Brisbane than just one in Melbourne.” Right now Colburn says the leasing situation is easing with landlords no longer with the upper hand in the relationship. “There’s a bit more flexibility in leasing. We’re getting good rapport with centres like Centro, and they are willing to work with us.” He is confident in the experience of the Red Rock team, which includes a business development manager who has chalked up 30 years, and an operations manager who has spent 25 years working in the fast food sector. FRANCHISEES There’s confidence too at the franchisee level. While the food franchise space now is more competi“We have just put on two franchisees with tive than ever, people are looking for a healthy their second sites. Franchisees investing within the option, says Colburn. network shows a really good level of confidence.” “We want people who are involved in the day to For a small franchise system the choice of a wellday stuff, someone who believes in the products. known sports star to front the brand indicates that It’s not always about throwing down the money. Red Rock Noodle Bar is pitching itself as a serious “People are looking for a brand they know, they food chain. trust, that they like themselves. We are putting The investment is worth it says Colburn. ourselves in this position. “We are punching above our weight but you’ve got to spend to make money. We’re on top of the budget, the KPIs, sales, we’ve set some targets,” he reiterates. The 18 month partnership is an ongoing arrangement that Parker for one hopes to continue. “I enjoy it. Before I came on board, I didn’t know much about franchising. Having spent some time with the busi“We’re on the right track and we’ve had a fair ness, it’s opened my eyes.” number of enquiries from down south.” He admits there might come a time when the Colburn is heading for Melbourne to pursue appeal of a franchise might sway him into business. opportunities there, but insists expansion into “It’s great if you have a passion and you want to get Victoria would need to be well-scaled. involved. I’ve met all the franchisees and they have need walks of life, it’s great. F R 0 9 1 3 _ 0 0 0 _ “If M Owe N go- to Melbourne, 1 2 0 1 3we - 0 8 - to 1 put 6 T on 1 0four : 4or4 : 2all6 come + 1 0from : 0 different 0 five stores. It is better for us to have two more stores “It’s certainly something I’d look into.” F
It’s good healthy eating on the run
Connecting People, Creating Careers
FRANCHISORS Are you looking for top talent for your management team? Please connect with Steve Bianchini at Mondo Direct – The Number 1 Specialists in Franchise Executive Search and Recruitment Tel: 0403 840 996 | Email: email@example.com 14| FRANCHISING SEP/OCT 2013
INTERESTED IN JOINING AN AWARD WINNING CONVENIENCE RETAILER? You may not be aware that Caltex Australia operates one of the largest convenience retail network across the country, with both company and franchised stores operating predominantly under the ‘Caltex Star Mart’ brand. Last year Caltex Star Mart dominated the prestigious awards at the annual Australasian Association of Convenience Stores (AACS) awards held in Melbourne on 22 August 2012 winning : Franchise Store of the Year : Caltex Star Mart Annerley, QLD Company Operated Store of the Year : Caltex Star Mart Surfers Paradise, QLD We congratulate Jim and Ann Dovell and their team at Caltex Star Mart Annerley, and our company operated team at Caltex Star Mart Surfers Paradise, on their outstanding achievement in being judged the “best of the best” in Australian convenience retailing. Caltex Star Mart has now won Franchise Store of the Year for the past five years. To find out more about our award winning Franchise, visit www.caltex.com.au and click on ‘Franchising at Caltex’.
Inspire | Franchisee
FROM SALES TO SMALL BUSINESS
OWNERSHIP Jeanette Preace knew the Sleepy’s brand inside out when she became a franchisee
JEANETTE PREACE Franchisee, Sleepy’s, Launceston
orking at Sleepy’s in Launceston for seven years as a sales consultant, Jeanette Preace was more than ready to invest in the business as a franchisee. “I felt ready for a fresh challenge. Franchising offered the chance to run my own business but with a support network in place,” Jeanette explains. “Having worked for the Launceston Sleepy’s store since it opened, I was familiar with the brand and with the support system it offered. “My husband also worked there as a delivery driver so we jumped at the chance to come on board as franchisees. As we knew so much about the business we believed it would make the transition into managing and running the store a little easier,” she says. Jeanette and her husband are both heavily involved in the business. “We both share the sales consultant role and I also do POS management, stock control, accounts and taxation preparation, whereas my husband looks after deliveries and the marketing side of things.” After she invested in the franchise, Jeanette found the role of employee and franchisee are markedly different. “Being a franchisee is very different to working as an employee. Being the employer involves a lot more responsibility and is much more challenging – and, in turn, rewarding.”
TRAINING AND SUPPORT Jeanette explains Sleepy’s offers both initial and ongoing training for its franchisees. “The franchisor training was a big help, particularly in the administration side of the business. “The training is ongoing and keeps us up to date with current selling techniques, product knowledge, new marketing ideas and current trends. Our customer service and product knowledge plays a valuable role in our business so this training is essential.” 16| FRANCHISING SEP/OCT 2013
LOCAL AREA MARKETING The pair engage in various forms of advertising to promote their business in the local community. “Our delivery van has large signwriting on it so it acts as a portable billboard. We have Sleepy’s branded business shirts and do local television and radio advertising, which has significantly boosted our sales.” They also support local charities and fundraising initiatives. “We donate mattress protectors and Sleepy’s branded pillows for fundraisers and we provide a brand new ensemble for charity events twice a year,” Jeanette says. Additionally, they have developed working relationships with a number of local health professionals. “We have strong relationships with local chiropractors and use a referral system that benefits both of us. Word of mouth is the best form of advertising and we sell a lot to repeat and referred customers.”
THE POSITIVES It seems Jeanette does not have plans to sell her Sleepy’s franchise anytime soon, and she has firm goals for the future. “Our main goal for the business is to increase sales and build our brand presence among our existing and potential customers in the local area,” she says. While running the franchise has indeed been a learning experience, it has seen Jeanette enjoy both personal and professional growth. “It has made me more aware of how retail impacts on the wider community. Small business is critical to the economy and I am more aware than ever of this now. “Owning a franchise has made me a more confident person and I’m not afraid to go out and get what I want. I feel I am able to deal with anything life throws at me and have met some wonderful people through the Sleepy’s network who have impacted me in ways that I will treasure for life,” she adds. F
Energy Passion Innovation
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Inspire | Franchise story
STYLE Take a look and see how retailer National Tiles is staying fresh in a competitive market?
All images: National Tiles
Nick and Frank Walker.
Colour consultants. 18| FRANCHISING SEP/OCT 2013
Franchise story | Inspire
ranchise business National Tiles has undergone a refresh as part of its new business strategy. The chain is implementing a five year plan of growth under new CEO Nick Walker, son of the founder Frank Walker, which entails significant expansion in New South Wales, Northern Territory, South Australia and Queensland.
THE REBRAND As part of the plan, a rebrand has taken place. Marketing co-ordinator Lauren Fernando-Bird says there is a new look to the stores with better displays, lifestyle images and concrete flooring. “We’ve improved the look and feel of a store, we have better branding and we’ve grown the product range.” With more than 320 stock lines, there is a great deal of choice, she adds. Buyers source products from Europe, Argentina and China and the supply chain is a crucial part of the franchise offer, Fernando-Bird explains. “Our support network sets us apart, everything is centralised. Independent owners can deal with 45 separate A D _ suppliers. F ROUT 2 J AN_ 1 3 . p d f Pa ge “We have one portal, and franchisees don’t have
to ring through orders endlessly, our purchasing officer handles this.”
RE-BADGING OPPORTUNITIES That’s why national franchise manager Mark Moskwa believes this franchise is a great option for an existing tiling business owner looking to re-badge and gain the benefits of a retail network, or for a tiler ready for the next stage of their career. Franchisees also benefit from a support package that includes procurement and IT/admin back-up and from a centralised online strategy. The company recently employed a digital marketing coordinator to assist the team with online support. Fernando-Bird explains, “This is to rein in our current online communications to maintain consistency. We want our franchisees to focus on selling. They don’t have to think about this, it’s all handled centrally.” And for customers, the Trade Club Plus loyalty program has been a great success, with a membership of more than 2000 - each member paying a membership fee of $100 which enables them to such as 2access 6 / signifi 1 2 / cant 1 2 ,discounts 3 : 0 2on products PM adhesive and other special offers. F
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Image: Aussie Farmers Direct
Inspire | Franchisee
How a boilermaker invested in his future with Aussie Farmers Direct
n 2012 newly married boilermaker Gerard Griggs decided he was tired of travelling for work and wanted to change his lifestyle completely. He came across Aussie Farmers Direct and the rest, as they say, is history. “I had always been drawn to the idea of running my own business and being my own boss. I looked for something that would involve less travel and provide me with more time at home with my family,” says Gerard. He began to consider Aussie Farmers Direct, a franchise that specialises in delivering groceries to people’s homes, following a suggestion from his sister. “My sister Lisa had been an Aussie Farmers Direct customer for years and had heard that franchise opportunities were available in South Australia. She guided us towards the company.”
THE FRANCHISE MODEL There are a number of things that drew Gerard into the brand. “I liked the structure of the company and could see that they provided support at all levels of the business. “The company’s franchise model meant that I could interact with the community rather than sit behind a desk. After years of boilermaking, it suited me to continue to do physical work – delivering for Aussie Farmers Direct certainly keeps you fit!” he says. 20| FRANCHISING SEP/OCT 2013
Gerard explains the brand offers a wealth of support, and importantly, staff are both helpful and friendly. “They have mentored us and shared ideas on how to grow and expand our franchise. “I particularly enjoy ringing Elaine and Delia at franchisee support, who are always helpful and ready with a joke.” Gerard and his wife Lexie invested their savings into the business, and both are involved in its operation. “I enjoy working with my wife. We help each other out with different ideas. Lexie looks after all the behind the scenes work, such as newsletters and flyers, and as a qualified GP, she keeps me fit and healthy,” he says. The business affords Gerard the opportunity to work from home, which makes it much easier to juggle his work and home life. “Working from home means that I can choose my work hours. I spend my time managing my drivers and meeting schools, clubs and customers. “It also allows me to be involved with the local Country Fire Service (CFS) and to cook dinner most nights – much to Lexie’s delight,” he says. The future is looking bright for the pair, with a second franchise in the pipeline. “We are planning to start our second franchise, expand our local business, and continue to gain knowledge about owning a small business.” F
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Inspire | Franchise story
TV celebrity Shannan Ponton is the brand ambassador for Anytime Fitness. So what’s so great about the brand?
Shannan Ponton is the gym’s brand ambassador. All images: Anytime Fitness 22| FRANCHISING SEP/OCT 2013
ustin McDonell and Jacinta McDonell-Jiminez have been heading up the 24 hour, seven day a week gym chain Anytime Fitness in Australia for five years now, and in that half-decade have seen the idea of an access all-hours facility become accepted across Australia. So accepted in fact that a familiar face to tv viewers around the country, Shannan Ponton, fitness guru on popular TV show The Biggest Loser, has seen the merits of linking with the company as a brand ambassador. For franchisees within the system, the media coverage accrued through the celebrity link is a benefit, says Justin. ”Franchisees sees this as a positive use of their marketing levy. There will be a series of consumer ads, a print and tv campaign and a radio script, promotion on the internet and in digital panels at the clubs.” Ponton’s role is educational, emphasising the benefits of exercise – it’s about making people feel comfortable. And there’s a neat catchline to the campaign Ponton is fronting: “You’ll find it within, inside you and at the club.”
THE BIG PICTURE While the premise of the club is easy access without all the frills of a full-service gym, increasingly the business is developing add-on programs that meet the needs of body and health conscious customers, and suit a variety of locations and footprints. Explains Justin, “we’re involved in health clubs, it’s not just weights and aerobics.” For instance, fitness on request, a virtual exercise class. In this, a touch-screen kiosk can be used for an interactive class that requires just 45sq m of space. It can be conducted as an individual or small group class in peak times. Moving to virtual classes with a virtual personal training team is part of the move to do more online, and that includes offering support and guidance on subjects like healthy eating. Keeping products fresh keeps people, Justin says. “We’ve been doing a lot of surveys to see what people want.” The focus now is on membership retention, and to boost this, the personal training program is set to become more structured. It’s an extra for the gym which already attracts custom because of its 24/7 approach. “We win because of the flexibility of hours,” says Justin. Access and the club location have been key drivers in developing this chain to reach the current size of 220 franchises, with more in the pipeline – a total of 400 outlets should be operating by 2015. This includes a brace of franchisees who own multiple outlets. The first franchisee now has 10 gyms. Justin and Jacinta advertised and marketed their
Franchise story | Inspire
gym chain through all forms of media, from online to print, to build brand awareness. Before Anytime Fitness the brother and sister pair who have the master franchise rights to the brand in Australia were already well versed in the fitness market, with a family background that drew on the exercise trend, and experience accrued at Fernwood. The 24 hour gym model was sourced in the US. The pair had spotted a gap, recognising there was little in the home-grown market that sat in the middle ground of fitness venues, and were scouting for possible business opportunities. The American trend was for all-hours gyms, and the siblings found the Anytime Fitness chain, with a membership that was well priced for a branded facility. “We set the model as a franchise model and setting up the systems produced a product that can be operated by people with no experience. “I like systems, it makes it easy,” says Justin. And there’s no doubt people like a proven concept.
least for the master franchisees themselves who face the challenge of letting go of control. But Justin says he and Jacinta are facing up to the challenge - as are the franchisees. “Our team has about 35 people now, so it’s less personal,” says Justin. However franchisees have
We set the model as a franchise model and setting up the systems produced a product that can be operated by people with no experience
adapted with the growth, he says. There have been external changes too, and tweaks along the way. “We had two partners who injected money and we bought one out a few months ago.” As master franchisees Justin and Jacinta have CHALLENGES While everyone looks for expansion in a franchise committed to the gym brand themselves and network, stakes F R 0 9there 1 3 are _ 0 inevitable 2 3 _ A Uchanges T - as 1 a system 2 0 1 3 - 0 8cemented - 2 1 T 0their 9 : 0 9 : 3in0the + 1business 0 : 0 0 through flourishes and develops into a national business - not franchise ownership. “I believe in the product. I like
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Inspire | Franchise story
Siblings Jacinta McDonell-Jiminez and Justin McDonell
the fact we’re helping people,” says Justin. “I own four clubs, with my wife. Jacinta and her husband own 10 stores.
THE FRANCHISE OFFER “The product is positive, it’s a lifestyle factor. Franchisees A D _ F R V A N J A N _ 1 3 . pcan d fwork P 15 a gtoe20 hours 1 4 a/ week 1 2 / or1 less; 2 , certainly an average of 30 hours.
“They can have other investments, as long as it’s not competing. We try to be flexible,” says Justin. The upfront franchise fee is now $70,000, the turnkey cost between $250,000 and $300,000. It took the business three years to get accredited with Westpac; getting this accreditation has made it easier for franchisees to source finance, particularly for re-sale opportunities, says Justin. So what of the growth to come? The network has been on a fast track to expansion, and is now in an enviable position with much of the available territory in Australia snapped up. Justin recognises of course that the rate of growth will inevitably slow. However, that Anytime Fitness is a good looking gym and has an attractive membership component only benefits the business, he believes. “Now members will decide about our brand,” he says. He believes the success of the system for franchisees has been the low staffing model with most memberships on direct debit providing “a fairly secure cashflow”. clubs don’t run themselves,” he says, “but 3 : 5“These 5 PM it is an easy model.” F
Due to eXtremely high demand, coffee retailing is widely regarded as one of the more attractive franchising options available. With your drive, our system and our collective belief in delivering an eXceptional coffee eXperience, you can eXpect an eXcellent return on investment. Plus you get to be your own boss and work �eXible hours, how eXquisite! We’ll supply you with our eXclusive ‘hit the ground running’ pack including free start up stock, marketing materials and eXpert training. For more info on a Cappuccino Xpress mobile coffee franchise, contact Carrick Robinson on 0421 048 716 or email firstname.lastname@example.org and get on the road to success today.
24| FRANCHISING SEP/OCT 2013
Image: Luminiere Skin Clinics
Inspire | Franchise story
Treating today’s clients so they can look younger tomorrow is the focus for Luminiere Skin Clinics.
CAMERON FANCOURT Managing director of Luminiere Skin Clinics
recent addition to the skincare business in the franchise space, Luminiere is the brainchild of managing director Cameron Fancourt. Fancourt has clocked up experience in the spa and beauty sector including a mobile massage business and day spa chain Beauty Spa International. As the name suggests however, his most recent concept is not just about the feel-good factor, it picks up on the trend for results-driven services that target our desire for a more youthful appearance. Says Fancourt, ”For the best part of the last four to five years I’ve been a consultant to day spa retailers and hotel groups, working on an anti-ageing platform. There are enough to stats to show the anti-ageing space is fast growing. “We’re dealing more on results based services and return on investment; if we sell a series [of treatments] it’s better for client return. Clients want to come back to the therapist. In day spas its harder to get loyalty.” On the menu are technical treatments such as antiwrinkle injections, cosmeceutical facials, dermal fillers, intense pulsed light (IPL) hair reduction, laser treatments, microdermabrasion and peels. Equipment includes advanced cosmetic lasers and IPL systems from Palomar and Omnilux Light Therapy. There’s a bigger cost component to the set up with these specialised machines but this is reflected in the higher prices a clinic can charge for its services. “There’s certainly an appetite for this, there are low overheads outside the equipment costs,” says Fancourt.
26| FRANCHISING SEP/OCT 2013
Brand consistency is important in any franchise, and at Luminiere this will extend to the product lines: Aspect, Skinceuticals, Gatineau Paris and Priori. “There is a diverse range of skin needs and we are price point specific; associated with high end we can provide our clients with high end results.” Fancourt believes the experience garnered in day spas and consultancy puts the Luminiere team ahead of standard operators. “We ensure our services are superior and we provide outstanding results.”
There are enough stats to show the anti-ageing space is fast growing TRIED AND TESTED The spacious flagship skin clinic in Sydney’s affluent Eastern Suburbs was an existing business acquired by Luminiere, and has kept much of its client base, and grown it, in the months since re-branding. It opened its doors in autumn 2013 and has generated new customers through word of mouth referral, local marketing and social media. To give the clients confidence the clinic needs to employ experienced, qualified therapists and clinicians. “We have to ensure our services are superior. We
Franchise story | Inspire
have to provide the results and a quality service.” The Double Bay premises on two floors with a picture window profile at the front and back of the building, is designed to be on the softer side of clinical. “The environment is comfortable and warm, image is a really big part of our business, and we have a professional image,” says Fancourt.
GROWING THE CLINIC NETWORK The business goal is to grow the network over five years to reach at least 50 clinics in Australia. Further international expansion is part of the plan too. Fancourt has a number of options to help develop the brand at a variety of levels. Another clinic in Noosa, with a 60 sq m footprint, has proved its worth as a smaller model and shows the concept can be adapted to different environments. Fancourt also sees potential in business partnerships with medical professionals such as doctors, dentists and podiatrists who can add the clinic’s anti-wrinkle injections to their suite of treatments. One or two rooms as add-ons or a small stand-alone clinic are viable options, he believes: the medical link will work well because professional integrity and indemnity is 3a strong of the F R0 7 1 _ 0 2 7part _ WA T equation. 1 2 0 1 3 - 0 Existing salon owners who want the benefits of
The treatments The range of treatments and services includes: • anti-wrinkle injections • chemical peel exfoliation • cosmeceutical facials • dermal fillers • intense pulsed light (IPL) hair reduction and photo rejuvenation • microdermabrasion • non-ablative laser skin resurfacing • Equipment includes PALOMAR, for advanced cosmetic lasers and Intense Pulsed Light (IPL) systems, and OMNILUX Light Therapy.
branding and support that a franchise brings can rebadge their business; senior therapists looking for the next level in their career can step up to franchisee status. For those franchisees from within the beauty industry business acumen is valued too though the franchisor provides some business support. But beauty therapy experience isn’t essential; the clinic 6 - 1 9could T 1 also 1 : 1be9an : investment 2 9 + 1 0 :for0 a0business or professional group looking to develop multiple units. 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 you’ll be out and about photographing different properties and meeting lots of new SHRSOHDORQJWKHZD\7KLVLVGHÀQLWHO\QRWDGHVNMRE Here’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 you’re set to go. We work in a growth industry. Our services are in high demand with the residential and commercial real estate industry. We’ll help you succeed. You’ll get the usual intensive training, plus dedicated support with sales and marketing, that you’d expect from a high quality, established franchise system. “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!” John Woolley, Mornington Peninsula, Victoria
Territories are available across Australia, please contact Rob Watkin on 14 217 019 or email email@example.com today for more details. www.topsnap.com
SEP/OCT 2013 FRANCHISING | 27
All images: Kubarz
Inspire | Franchise story
THAT COMES TO YOU
Kubarz is tapping into the Australian love of a good time with its mobile bar business.
WHAT’s in a name? Drew Davies explains the Kubarz name: “I wanted to develop a name that was reflective of balance and harmony in life – something that underpins my everyday existence,” he explains. The Ku part of the name indicates balance, which is reflected in two ways. “ The first is our drinks service – drinks mixed, chilled and served to perfection by our professional and friendly staff ensuring the right mix at the right time. “The second is that Kubarz believes that the client’s special event is unique and one that therefore requires special treatment. Achieving harmony serves to enhance the overall atmosphere and experience. ‘Barz’ refers to the mobile bar service.”
orget a do-it-yourself drinks service, for a function with a bit of panache there’s the Kubarz option, and it’s a business idea you can invest in. This mobile beverage catering franchise is the only one of its kind in Australia, says Drew Davies who purchased the former On Tap business in 2006. A facelift, new name and converting the business into a franchise system followed and now the business has franchisees operating in Sydney, Central Coast, Newcastle, Hunter Valley and the South Coast with plans for a move into Queensland and Victoria, and eventually internationally.
THE CONCEPT Davies saw a gap in the market for a professional beverage service traditionally handled by caterers who put all their focus on the delivery of great food. » 28| FRANCHISING SEP/OCT 2013
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Franchise story | Inspire
He wanted to put the spotlight on the drinks. “Turning an empty space into a fully functional, exciting bar concept is what we offer our clients. The Kubarz mobile bar concept is a modern, stylish product complete with a stainless steel serving ledge and work area with built-in LED lights. “The work area consists of a lightweight collapsible design with built-in handles for easy transport and it stores flat so minimum storage space is required. Made of high grade stainless steel, the bar structure is very durable and sturdy,” says Davies. The idea is to create something professionally tailored to a client’s function. Kubarz provides high quality drinks including specialised beers and wines, cocktails, mocktails, smoothies and juices; professional and fully trained beverage and wait staff; and a stylish mobile bar with a complete set-up of glassware and other bar equipment. “Given much of the negativity surrounding bars and nightclubs these days because of violence issues, Kubarz offers a real alternative……a great bar product that ‘comes to you’, right in the comfort of your own home or office where the service can be controlled and the client has a brilliant experience,” Davies adds.
THE BUSINESS DETAILS Typical customers range from clients hosting informal birthday parties and housewarming drinks to engagement celebrations and wedding receptions and firms organising corporate functions. Sourcing the leads is a shared responsibility says Davies. “We encourage franchisees to be very active in the market place, we do this by holding their hand them A Dand _ F giving RAL S 2 M aAfull R _ local 1 3 .area p dmarketf Pa ge ing package and strategy which is systemised and
Kubarz provides bar staff as well as drinks.
structured to ensure success.” At the same time the head office team has a national call centre that channels leads to the local offices and works to increase traffic and leads through website maintenance and updates, mini traffic sites, blogging, SEO work, local Google Adwords campaigns, electronic monthly newsletters and social media.
WHO IS THE IDEAL FRANCHISEE? Someone looking for the freedom and flexibility to work for themselves and is excited by the industry, says Davies, but hospitality experience isn’t a prerequisite . What is required is enthusiasm for working with interesting people, providing great customer service and the ability to follow a proven system. 1 “They 7 / 0 2need / 1 to 3 motivated, , 1 1 : 0passionate 8 A M and ready for a fresh and exciting change,” he says. F
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SEP/OCT 2013 FRANCHISING | 31
Image: Zarraffa’s Coffee
Inspire | Franchisees
SUCCESS Bill Zavros is the franchisee of Zarraffa’s Coffee at Hope Island on the Gold Coast. His first store has performed so well that he is looking to open a second later this year.
or 15 years Bill was a franchisee at a video rental store; however he says the company was in a constant state of change, which prompted him to consider other franchise opportunities. “We had changed the store branding four times and dealt with three different franchisors [over the 15 years]. We always valued being part of a recognised brand and saw the benefits that an organised, fair and progressive franchisor could offer.”
WHY ZARRAFFA’S? Zarraffa’s had been on Bill’s radar for quite some time before he decided to invest in the brand, and he was a fan of its offerings himself. “We already knew that Zarraffa’s Coffee was a popular and valued brand on the Gold Coast, where we are based. We had watched it grow over the years and had been monitoring its expansion, plus we frequently visited its outlets. We had also spoken with people that knew existing franchisees,” he says. Bill is particularly fond of the fact that the company’s CEO is also its founder, Kenton Campbell. “We have learnt through our franchising experiences that the company is only as good as the person at the top. In the current business environment where many franchise groups have been purchased by public listed companies focused on profits it was comforting to know that at the helm of Zarraffa’s Coffee was its founder. “Kenton is a self-made business man who has 32| FRANCHISING SEP/OCT 2013
worked extremely hard and overcome many adversities to build an enviable coffee empire, and his hands on experience benefits everyone associated with his company,” says Bill. “We were also aware that some franchisees were highly successful multi-store owners. Working with a successful brand with this product, goodwill and leadership suited us perfectly,” he adds.
Be prepared to strictly support and follow a system. Develop a realistic business plan RESEARCH Bill adopted a multitude of formal and informal research methods, and would adopt the same approach if he were to have his time again. “Our informal due diligence involved speaking with existing franchisees, combined with the observation of stores. “Formal due diligence involved meetings with Zarraffa’s head office and the perusal of the disclosure document. We would not do anything different from this,” he explains. »
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What is the biggest lesson Bill has learned since he invested in the brand? “We have learned it is important to follow the proven systems of the franchisor. The systems and training have been developed to assist each franchisee and maintain brand standards,” he says. “Most of it is very simple and yet so important to the success of each store.” Bill admits that acquiring the skills and learning the systems required to run the store was initially quite challenging, and he has learned that good staff management is a vital part of running the business. “Managing our team and making sure standards are maintained is an ongoing challenge. We constantly need to monitor, train and retrain staff to make sure complacency and bad habits do not develop.”
ACHIEVEMENTS Bill says the store has been performing incredibly well; so well in fact that he is set to open a second store this year. “Since being part of the Zarraffa’s Coffee brand we have managed to increase sales by considerably more than our original business plan projections. “We are also proud to have been awarded ‘Rookie of the Year’ 2011 for the group and I personally placed third in the company’s annual Barista Competition (franchisees and management category) in 2012.”
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We have managed to increase sales by considerably more than our original projections ADVICE He advises potential franchisees to ensure they are passionate about the brand they choose to take on and engage in the appropriate research before signing up to any franchise system. “You need to whole heartedly believe in the brand and the product or service you are seeking to invest in,” he says. “You also need to speak to as many existing or past franchisees as possible, plus visit stores.” He urges potential franchisees to be realistic. “Be prepared to strictly support and follow a system. Develop a realistic business plan and carefully consider the viability of the franchise business.” Bill also warns potential franchisees to assess just how much time they will really need to devote to the business to make it a success. “Consider the hours required to successfully run the business and how this may be managed with your current family or other commitments.” F
Inspire | Franchise story
BACK TO THE
How a nurturing nature makes commercial sense for the Back in Motion business.
n 2004 physiotherapist Jason Smith took the step of turning his practice into a franchise chain. Starting out in his garage as a single practitioner he looked at creating a community facility and as the business grew, took the decision to employ staff to run six other venues. This proved to him the business model could be run without his close attention, making it an ideal franchise system. So he pressed the go button. Fourteen business outlets were established the year after and today the Back in Motion chain stands at 45 franchisees operating more than 60 outlets. “To be honest, I never intended running a business. I never considered myself commercial. To find myself in a large business responsible for that business, is as much of a surprise to me as anyone else.” The franchise model has adopted a lot of the best ways of retailing and hospitality and the unique approach of physiotherapy, which by its very nature attracts conservative practitioners. So how did the business grow so quickly? “We grew because we brought a unique philosophy to clinical health: results for life. The traditional history of our profession is very reactive – treating an injury or managing pain. “Our wellness driven philosophy means we partner with our patient in a range of services for them. Health is performing at your best, not the absence of pain or injury,” says Smith. Optimal functionality is the aim and a holistic approach is now the focus of the practice. “We don’t position ourselves as a physiotherapy practice.” »
Jason Smith Turning his Victorian based at-home business into the integrative physiotherapy group it is today has seen Jason Smith nominated for the Ernst & Young Entrepreneur of the Year for 2013. He is also a speaker and author. All images: Back in Motion 36| FRANCHISING SEP/OCT 2013
AS A KID YOU WORLD’S LARGEST ICE CREAM BRAND Brand heritage - 67 years young New restaurants delivered as a turnkey operation ANZ accredited - ﬁnance now available Comprehensive training & ongoing ﬁeld support Restaurant opening marketing package Operational simplicity Product innovation Global exposure
Sites now available across Australia Call Michael 0417 077 633 www.baskinrobbins.com.au
Inspire | Franchise story
THE PHILOSOPHY OF WELLNESS “We’re getting older and living longer but not necessarily better. Integrative physiotherapy is about ageing with dignity. Smith has identified additional market niches that his business can serve: 1. Revita is a new franchise concept – a specialist physio for the aged market is flourishing. The focus is retirement villages, housebound clients, and the treatments are designed to get them walking well and breathing well. 2. Occupational program Actif is going into large industries and setting up on site, delivering workplace consulting programs and early intervention treatments. This is another growth area, says Smith.
THE FUTURE “We haven’t had our best years yet. We haven’t hit easy match with a commercial head. the sweet spot,” says Smith. The business is looking “We’re a bit of both but if we come back to the to get a truly national footprint and Smith has just first principle, delivering the best practice and have signed off on a three-year plan to achieve this. the patient’s health at heart, the business will take “We’re in five states but we want to get 100 outlets care of itself. around the country.” “I am as passionate about physiotherapy as ever Smith wants to change the landscape of yet the business grows and the profit grows.” natural F R 0 9 1 3 _ 0 3 9Australian _ C A F physiotherapy 2 2 0 1 but 3 - admits 0 8 - 1the 5 T 1 5 : 0 5 : 2 0Back + 1 0in:Motion 0 0 has 250,000 patients on its books, tendency of physios to be caregivers is not always an treated by 350 staff around the country.
38| FRANCHISING SEP/OCT 2013
Franchise story | Inspire
“We have to be clever. We have good old fashioned principles but are very fortunate to attract business operators who are good at managing and leading teams.”
The team in Brighton.
THE FRANCHISEE What Smith has found is a high level of energy among the shareholders in the practice, who are not just the franchisees but the physios too, who are encouraged to take ownership – literally. Smith’s model is to charge physios with taking a stake in the business that results in, he says “great employee retention and a career path within our footprint. As minority directors they develop confidence and grow through doing it themselves.” While physiotherapy is a highly regulated, highly qualified profession, automatically limiting the pool of talent from which Smith can draw his franchise operators, there is also the Franchising Code of Conduct for franchisees to fit in with. But the natural tendency of physiotherapists to comply with rules makes them an easy fit, he says. The franchisee knows how to treat the patient says Smith. What many are less confident about is employing staff, balancing the books, managing IT. And that’s where the franchisor’s team steps up. Smith has invested in a support system; franchisees
have access to coaching, staff training, professional development opportunities, marketing, recruitment, IT… there are even five accountants on the staff to help with the bookwork. “There are only three things a franchisee has to do,” explains Smith. “Thrill every patient, lead and nurture their team, and rely on us to provide the business model. “If they follow they will get outrageous results.” F
SEP/OCT 2013 FRANCHISING | 39
Image: Mad Mex
Opportunities | Food
The fast food industry is bursting with franchise opportunities as multinationals including KFC and McDonaldâ€™s exist alongside a new breed of brands that specialise in cuisines other than the cheeseburger or American-style fried chicken, writes Brea Carter. 40| FRANCHISING SEP/OCT 2013
Food | Opportunities
he rise of franchises such as artisan sausage purveyor Snag Stand and Mexican food business Mad Mex points to what research company IBISWorld sees as a shift in the fast food industry. The report Fast Food Services in Australia May 2013 reads “The fast food services industry has undergone a health kick over the past five years, with industry revenue expected to rise by an annualised 2.1 percent. “The shift towards healthy eating has been driven by a rapid increase in consumer awareness about the nutritional content of fast food, a conscious effort by consumers to eat a balanced diet and an influx of healthier options by the industry’s heavyweights.” The move has seen key players McDonald’s and KFC get in on the action, with both introducing a range of healthier options such as the So Salad (KFC) and grilled chicken wrap (McDonald’s), and it has afforded a number of new franchises the opportunity to enter the market. Snag Stand undoes traditional perceptions of the hot dog with its gourmet counterparts that contain a variety of all natural, hand crafted artisan sausages including spicy Spanish chorizo and waygu beef, and they are teamed with a selection of gourmet ingredients. Likewise, Mad Mex prides itself on its made to order philosophy and the fact that its menu offerings, which include burritos, hard and soft tacos, nachos and quesadillas, are made using only the freshest of ingredients. While there are plenty of viable fast food franchises out there that offer a combination of healthier and more indulgent options, it is important potential franchisees take the due diligence process seriously and look into the training and support, both initial and ongoing, that their brand of choice provides before they invest.
KFC Chicken restaurant chain KFC requires prospective franchisees complete an intensive training program that covers all of the skills required to run a KFC restaurant/s. According to the brand’s chief people officer Rob Phipps, KFC offers a three tiered training structure. “We have team member, shift supervisor and restaurant management training, and if franchisees are going to run multiple sites we have area training.” Franchisees can expect to undergo a combination of theoretical and on-the-job training. “They complete e-learning modules, have someone in the restaurant that acts as their module trainer, attend classroom training sessions and then practice the skills they have learnt,” says Phipps.
The training program can take from three to six months to complete depending on the franchisee. “The time period is difficult to define because it could be different for different people. It depends on their past experiences - some people have worked in our environment before whereas others haven’t.” Upon completion of each module, a brand representative will visit the prospective franchisee on-the-job. “They go in and watch them for a shift and determine whether the franchisee is proficient at the tasks required of them in that module. “We hold high standards and we build that expectation with the guys before they go into the process so they know how it works,” says Phipps. KFC offers yearly refresher training in the areas of occupational health and safety (OH&S) and food safety; however the brand does not retrain staff. “The theory that we take is once you have been trained in something and you are then practicing it proficiently on a regular basis there really is no need to train you again on it - otherwise there is something wrong with your
Teach the franchisee how to make the product, run calendars, use the scheduling software, do the ordering and receiving and conduct inventory checks WWW.FRANCHISE.NET.AU
SEP/OCT 2013 FRANCHISING | 41
Opportunities | Food
management systems,” he explains. Instead, ‘champs excellence review specialists’ visit KFC restaurants and identify problem areas or aspects of the business that require improvement. “They go out into restaurants unannounced and coach whoever is on the shift. They will look at everything from employee files to recording temperatures to make sure things are being done properly - that is the ongoing self improvement mechanism that we use.” Of course, the brand won’t simply introduce a new product or process without training franchisees and their staff first. “The team will assess whether the change is a level one, two, three or four roll out and then we put a package together depending on the extent of the change that is going to occur as a result of the new product or process,” says Phipps. “If we were to introduce a brand new protein we would get everyone together and have a hands on training session, whereas if we were putting a different mayonnaise on one of our burgers we would probably just send out an email,” he adds. The brand also offers franchisees ongoing support in dealing with matters that are not related to training. “We employ a team of franchise business consultants who work with individual franchisees around what they might need or how they are going
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Opportunities | Food
Body_CAP. Image: company
to approach the business. They are based in New South Wales, South Australia and Victoria and are the primary contact for franchisees,” says Phipps.
MCDONALD’S McDonald’s is a registered training organisation that provides its staff with the opportunity to complete their Certificate II in Retail Services, Certificate III in Retail Operations, Certificate IV in Front Line Management, as well as a Diploma of Management and Advanced Diploma of Management, so it comes as no surprise the brand requires potential franchisees undertake a comprehensive training program. Lilian Tartaglia, national franchising manager at McDonald’s explains interested applicants must fi rst be selected to take part in the training program. “We place them in a restaurant on a Friday, Saturday and Sunday so they experience weekend trade and see and feel what it’s like working with a young crew. It gives them a taste for the business – a lot of them either love it or they know it’s not for them.” If the applicant makes it through this initial stage, they will be interviewed by three different licensees and undergo a psychometric assessment. “If they Big Mac. Image: McDonald’s are successful at the Board they
then go through an intensive nine month training program,” says Tartaglia. The training program is broken down into four key courses, and the registered applicant completes them at a number of company-owned and franchised restaurants. “The four courses would normally take years but it is a fast tracked, concentrated process and there is heavy follow up from a registered training advisor. “The courses cover shift management, advanced shift management, effective management practices and restaurant leadership,” she says. Each course encompasses a combination of theoretical and practical training and takes between six to eight weeks. “They are in a classroom between three and four days of each course - some of them may require a week of theoretical training - and they have practical assessments as well.” Tartaglia explains McDonald’s does not retrain franchisees or their staff on a regular basis; however it does hold compulsory masterclasses each year. “If licensees work in the business and are involved daily then there is no need to constantly retrain. “What we do now is hold masterclasses, where all of the changes and updates we have touched on in our training classes are presented to franchisees in a formal meeting that they must attend annually.” Information about a new product or process is communicated to all staff via the brand’s online portal. “Franchisees and staff conduct all of their training using the online portal and then they practice it on the floor - it carries on with all our new procedures,” Tartaglia adds. To ensure franchisees and their staff receive training that is both relevant and accurate, Tartaglia says McDonald’s revises its programs on a regular basis. “We defi nitely keep updating it because our business keeps evolving - we are actually revising the training document as we speak to refer to new elements of our business such as dual lane drive through.” From day one franchisees are assigned a consultant whose job is to provide them with ongoing support. “They operate as the franchisees conduit to head office – it is where they receive feedback, guidance, training, tips for improving their business, cost improvement consultation – there are a whole range of areas that the franchisee and consultant look at together,” Tartaglia says.
The courses cover shift management, advanced shift management, effective management practices and restaurant leadership 44| FRANCHISING SEP/OCT 2013
Food | Opportunities
with 12 years of professional training experience across a variety of organisations,” says Phillip Blanco, managing director at Snag Stand. The World Manager online training platform, where franchisees view and are then tested on company or product information, plays a key role in the brand’s training programs. “Franchisees and employees log in online and review material either in written or video based format. “At the end of watching what might be a three and a half minute video they would answer a five to seven question multiple choice test, and if they fail any portion of that they would have to go back and review the material and take the test again,” Blanco explains. He believes the platform is proving more effecImage: Snag Stand tive than traditional training tools such as printed training manuals. “You can access the platform from anywhere you have a screen and internet access. It SNAG STAND covers everything from brand overview and full Snag Stand takes the training process very seriously, induction to human resources, customer service, and has recently enlisted the assistance of an experioperational policies and procedures and all product enced training manager to develop its program. builds – everything.” “We have spent a lot of time and effort putting Prior to taking on their own store franchisees go together what we consider to be an industry best of through a five week training program that is facilitated class is U administrated manager. F Rtraining 0 9 1 3program. _ 0 4 5 _It A S 1 2through 0 1 3 - 0 8by - the 1 9brand’s T 1 1 :national 3 8 : 1training 9 + 1 0 : 0 0 Daniel Rogers, who is a dedicated training manager “They take franchisees through each different
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SEP/OCT 2013 FRANCHISING | 45
Opportunities | Food
super simple, super impactful, and easy to understand and engage with.”
Image: Snag Stand
module or station as well call them. They progress through and develop their competencies first as an employee, then they learn to run shifts and ultimately learn to run the store as a manager, and after that they would learn to operate within the network as a franchisee,” he says. Franchisees are required to facilitate in-store meetings with their staff on a monthly basis, and when a new product or process is to be introduced the brand’s training manager will be on-hand to deliver the training in conjunction with the franchisee. “We believe in interactive, face-to-face training so we would typically do these sorts of things after hours, between seven and nine pm,” says Blanco. These sessions would see franchisees and their staff learn how to make the product, taste it and also provide their feedback. “It gives them a chance to not only view information about the product but taste it and try it, to ask questions. Obviously there is a lot more absorption of the material when it is done in a workshop setting,” he says. Blanco explains franchisees receive ongoing support from the brand’s general manager of operations. “They speak with franchisees as a minimum on a weekly basis, visit their store monthly if not more often and our head office team are in constant contact with them.” The brand is constantly updating its training materials to ensure franchisees and their staff receive quality training. “It is really about making it
We believe in interactive, face-to-face training so we would typically do these sorts of things after hours 46| FRANCHISING SEP/OCT 2013
Before beginning a six week training program, Mad Mex requires potential franchisees undertake an in-store trial. “Franchisees spend a few days in-store to make sure they are comfortable with the atmosphere and the real job itself. “This ensures they are not just thinking about it from an investment standpoint but as a career and something they are going to be working in day in day out,” says Mad Mex CEO Clovis Young. He explains the six week program involves a combination of in-store and theoretical training. “About four and a half of the six weeks are spent in-store and then there is business, systems and tool training - so they go back and forth between the office and restaurant.” Young says training personnel at head office devise the training program and take care of all administrative tasks; meanwhile store managers facilitate the in-store training. “Training personnel put the programs together, manage each franchisee’s
Image: Mad Mex
training, organise head office catch ups and on-site practical tests, but the actual day to day training is conducted by the store manager.” Store managers teach franchisees everything they need to know to run a Mad Mex restaurant. “They will teach the franchisee how to make the product, run calendars, use the scheduling software, do the ordering and receiving and conduct inventory checks.” He explains the brand’s training program is essentially comprised of three key components. “There is the one-on-one training, operations manuals and a testing element facilitated by a question-answer system to see if the information has stuck.” The complexity of a new product or process will
Opportunities | Food
Image: Mad Mex
underline the degree and type of training the brand provides its franchisees and their staff. “We have just launched RSPCA chicken nationally, and while that is not a change that requires a huge amount of training or development, the focus was on educating all franchisees and employees so they of 2the A D _ F R J A N N Ounderstand V _ 1 2 . why p d fwe are P adoing g e it,1what 1 the 1 / impact 1 0 / 1 , change is and how to communicate that to customers.”
Mad Mex created an introduction video for franchisees and their staff, and each franchisee or store manager was required to organise an in-store meeting to make sure staff understood the new concept. “Staff did mock trialling – they took it in turns pretending to be customers and practised serving one another,” says Young. Mad Mex employs a team of operations managers who visit franchisees at least once a month. “One of the big initiatives we have for this year is to make sure that every time an operations manager goes out into the field not only do they go through the business side of things, they spend an hour to an hour-and-a-half on the customer counter. “They work alongside the franchisee to help them fine-tune the business and make sure the system isn’t wobbling off – for example, they check to see the burritos are being rolled correctly.” While the initial training program takes six weeks, Young recognises it will take a franchisee anywhere between three and six months to understand every aspect of their business. “Six weeks is enough to be in charge of your business but over the next three to six months we hope to so they are top grade business 1fine 2 :tune 5 1 ourPpeople M managers,” he says. F
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Marketing | Opportunities
All images: Thinkstock
Marketing more than ever is an essential item in the business toolbox, so why not make marketing your business?
oday’s media mix and its presence in our lives means marketing messages are streamed across a number of channels: from social media to website promotions, from catalogues and brochures to branded merchandise. Encouraging customer loyalty, purchasing and brand awareness are all elements of a marketing program. Marketing is, according to Wikipedia: the process of communicating the value of a product or service through positioning to customers. Getting it right means analysing markets to choose target demographics, understanding consumer purchasing behaviour and then offering good customer value. If you’ve always wanted to run your own marketing or promotions business, but don’t have the experience, or you’re a marketing professional who
would like to break out into your own business but with the support of a network behind you, take a look at the three options highlighted here.
PROMOTIONS Red Energy Promotions is a one-stop-shop that has a focus on marketing branded items, with a choice of 30,000 products in corporate gifts, clothing, promotional goods, stationery and signage. »
Business in Australia is crying out for assistance to become more profitable, more effective WWW.FRANCHISE.NET.AU
SEP/OCT 2013 FRANCHISING | 49
Opportunities | Marketing
Customers can be local businesses, Government, sporting groups and not-for-profit associations. Professionals with a sales and customer service approach will make the most of the franchise that deals with these business to business clients. But there is a four week training program so bringing marketing and media experience is not essential for new franchisees. This is a Monday to Friday operation that offers flexibility. There are a number of Queensland opportunities available; to invest in this business which was established in 2004 will cost between $200,000 and $300,000.
SOCIAL MEDIA It does what it says on the tin: providing businesses with a social media presence is the core service at Social Media Business Boosters. For franchisees, lead generation and website programs to ensure start-up success are just part of the offer. There’s also continuous training and support, proprietary customer relationship management software, and turnkey marketing and advertising.
Lead generation and website programs to ensure start-up success are just part of the offer There will be online training resources, induction training at head office in Sanctuary Cove in Queensland and a business guide to help homebased franchisees establish their businesses – and that includes a pricing structure for clients. Customers choose different service options, from account set up and minimal daily activity to full scale management.
MARKETING SUPPORT Intouch Marketing Network is neither a marketing agency, nor a recruitment agency; the business is a group of marketing professionals. Founded by Paul Ryan, former director of sales and distribution of Wizard Home Loans, the company has identified about 200 independent territories across Australia. Marketing principals 50| FRANCHISING SEP/OCT 2013
can operate under a licence agreement that enables flexible self-employment; licensees choose the hours, days and place of work. Under the licence agreement Intouch Marketing Network delivers business coaching, lead generation activities, website maintenance, social media strategies, and the infrastructure to support marketing principals build a sustainable and profitable business within their exclusive territories. What sort of work would licensees be involved in? Paul Ryan says “It’s whatever the client requires; from small, medium to large businesses, charging by the hour, daily or a project rate. It could be from a hairdresser who wants a loyalty card, a new business wanting a website, someone who needs a marketer contracted for two days a week.” Providing the environment for marketers to build a business is what the network is all about. The Intouch group has been trading since 2007 but the marketing division has only been up and running since early July. “We’ve already got three principals and six contracts waiting for sign up,” says Ryan. Licensees need to have at least two years marketing experience, but can be generalists or specialists in a field. Licensees can implement and project-manage work and turn to other resources within the network to fill gaps if they don’t have the skills themselves for some of the applications. So why is now a good time for this business? “Business in Australia is crying out for assistance to become more profitable, more effective. Many can’t afford full time marketing people and contracting marketing on a project base is more attractive. This is not reinventing the wheel, it’s quite competitive, but most marketers operate on their own. Sometimes clients don’t pay, work is inconsistent; we want to be able to help them. Under a brand they can share ideas, be part of a team, have new business driven to them through lead generation, benefit from reward and recognition programs. “A lot of people like being part of a bigger team, like the collaboration, the infrastructure, the invoicing [this is centralised at Intouch]. A lot of marketing people don’t like sales, and this is about them becoming more adept at this and at becoming part of a centre of influence.” Ryan has a vision that down the track a certain percentage of the business will be owned by principals. The plan is for equity membership if the licensees meet certain criteria. For now, the plan is to spread the word about marketing. F
REASONS TO CONTACT THE FRANCHISE SHOP TODAY:
1300 139 557
Taste of Europe - European Bakery, Patisserie and Cafe. Australian owned, simple yet rewarding franchise opportunity. Artisan breads and pastries baked daily on site, yet no baking experience required. Enquire now!
With 20 years of experience in the industry The Concrete Cutter is Australia’s premier franchise when it comes to cutting concrete. Can join this successful franchise as a unit or a master franchise.
Offering an Executive Limousine franchise that caters for the top end of the market in the Sydney metro area. All admin and back of house bookings, dispatch and invoicing done, enjoy the driving!
IN2IT Nutrition & Fitness
Exceptional integration of branding, centre design , marketing & management skills. Brand leader of children’s indoor play in Melbourne. Great cashflow and profits, now franchising Australia wide.
Taste of Europe
The Ironing Elf
The modern world is all about convenience. Ironing Elf provides a pickup and delivery ironing service. Franchise Owners do not iron themselves but rather market, manage, pick up and deliver. Excellent new business. opportunity.
Baby equipment hire for our customers home & travel needs. Anything Baby offer short & long term hire of high quality baby equipment selected from leading manufacturers and retailers. Simple to learn & operate working from home.
Providing Invoice Finance Services to its customers. Invoice Finance is a financing facility provided to businesses who have outstanding invoices but they can’t wait for those invoices to be paid
The ultimate infusion – retail and take away tea. Our retail stores sell up to 300 teas and a huge range of teaware. The tea expresso concept brews hot, fresh, loose leaf tea in seconds. Take away tea – made with real tea, real fast.
One of the first franchise opportunities that features nutrition products and a full complement gym – all under one roof! Offering a revolutionary serviceoriented nutrition and individualized professional fitness programs.
Wholesale savings conveniently delivered. Fairdinks provides its customers the savings of big box retail with the convenience of home or office delivery.
World’s largest bear and stuffing franchise. Great part-time work from home business for mums to add to the family income & still have plenty of time for the family. No weekends. 80,000 bears sold last year.
Note: All prices are approximate and subject to change
made by you Sergios Cake Shop
Sydney’s Premier Cake Shop chain now available for franchising. Exceptional profit opportunity. Simple to run with all products delivered fresh into your store so no baking experience or equipment required.
+ indicates prices starting from
PREMIUM QUALITY AT LOW PRICES
LEADING FULL SERVICE CONSULTANCY
A Shihlin Taiwan Street Snacks franchise offers an excellent business model in the retail food industry. Established and loved by many in Singapore, Malaysia & Indonesia now available in Australia.
Rent4Keeps is a locally based furniture and household appliance rental franchise. Franchisees arrange the rental contracts with the customer and then purchase the products and deliver to the customer directly.
Master franchise for Australia now available. Denny’s is ranked as one of the top 10 US franchises in the US by ‘Entrepreneur’ magazine. A 10 unit licence available with several styles of restaurant format available.
Espresso Lane Drive Thru Coffee
Espresso Lane franchisee’s find a great location for a great. Stir in some marketing support and training and you quickly see that Espresso Lane is the fast lane to creating a successful and smart business. .
A sports program for children. As a Jungle Sports franchise owner, you’ll be entering this growing market under an established brand, a tried and tested business model and a comprehensive training programme.
Founded in 2002, BrightStar® Care is a high growth U.S. franchise, providing a full range of medical staffing services, home licensed nursing care, and non-medical care by trained caregivers. #21 in Entrepreneur Magazine’s “Fastest Growing” Franchises.
S.V.A Vending is a provider of Vending Machines Services to businesses all over Australia. Benefit from our vast experience, the right machines in the right locations with the right products at the right price.
BrightStar Jungle Sports
Domestic, Commercial, & Carpet cleaners since 2003. Different investment levels to suit everyone. Guaranteed Income. Keen to Clean were Listed Top 5 BRW fastest growing franchise and BRW fast starters 2012.
Shihlin Taiwan Street Snacks
Kleenit is a leading specialist in cleaning, maintaining and protecting assets. With A wide range of services means a wide range of incomes sources for you the franchisee.
Unscratch the Surface are the glass scratch removal specialists. Fantastic opportunities Australia wide, providing cost effective repair over glass replacement.
Keen to Clean
Unscratch the Surface
BK’s Takeaway is a retail food outlet specialising in hot and tasty ready to go food. Traditional Australian fare. Low rent, Highway locations. Outstanding proven business model returning excellent profits.
Let us complete the next piece of your puzzle...
The largest Italian Ice franchise in the USA is now available for master franchising in Australia and NZ. Started 1984, now with 560 stores in 4 countries. #1 Specialty Ice Franchise in the USA: ‘Entrepreneur’ Magazine.
Opportunities | Environmental
NATURAL WAY If you’re in the market for a green business you will be looking to buy a franchise that offers sustainable products and services speciﬁcally designed to reduce environmental harm. My Do looks at seven companies who support this and are passionate about their mission.
54| FRANCHISING SEP/OCT 2013
Environmental | Opportunities
e hear and see the news about certain practices having a harmful and destructive impact on the environment and sometimes taking action against these methods seems out of reach. But today’s line-up of business opportunities means owning an ecofriendly business is more accessible than ever. IBIS World’s July 2012 Industry Report for Solar Panel Installation in Australia shows that between 2008 and 2013, the industry experienced an annual growth rate of 115.2 per cent and is expected to pull in $1.39 billion in the 2012-13 year period. With effective government initiatives in promoting investments in solar power by way of rebates and incentives, the adoption of renewable energy systems has seen stable growth in newly built or renovated households. The National Sustainability Council recently released a Sustainable Australia Report 2013, the first of its kind, which revealed a 35 percent reduction of water consumption in the decade leading up to 2011. The report also indicates that 62 percent of people were concerned about environmental problems in 2012, a drop from 75 percent in 1992, thanks to an appreciation that the issues are improving. And so companies continue to enter the market to pick up on consumer awareness of eco issues and in some cases the long term fi nancial benefits of green actions. We have done the research for you and discovered some companies that pair their environmentally friendly aspect with everyday products and services.
DAISY H2O Concept: carbon neutral and chemical free dry cleaning and laundry Established: 2004 Franchising commenced: 2010 Number of units: Three Why green The majority of traditional dry cleaners use the chemical tetrachloroethylene, more commonly known as perchloroethylene (PERC) and it is reported by the World Health Organisation that people who work in or live near dry cleaning facilities are exposed to various cancer risks including bladder, throat and lung cancer. Daisy H2O has earned itself the title of the greenest dry cleaner in the world, achieving a five-leaf (star) standard from the Green Cleaners Council and endorsement by the Asthma Foundation. The business uses organic biodegradable detergents and stain removers to ensure clothes are cleaned effectively but at the same time harmless to the environment.
Business advantages Diesel pick-up and delivery vans are provided with the use of plastic being almost eliminated and for the balance that can’t be removed, carbon credits are purchased. Franchisees enjoy the benefits of working in a safe and healthy environment and by working together with local communities can educate customers on being greener and respecting the environment. Support and training New franchisees will receive up to six weeks training at one of its locations with ongoing training and support provided by its retail and technology trainers. A Daisy H2O technology trainer will work with each new franchisee in their store for the first two weeks after opening to ensure all technical aspects are running smoothly. Daisy works with each of its franchisees to map out the right mix of local marketing and branding collateral to be used and communicated in the market. Cost and agreement term The agreement term is a minimum of five years but in most cases it is matched to the retail lease agreement. The standard turnkey cost is usually around $150,000 plus working capital. This includes all franchise fees, training, basic internal fit-out, marketing collateral, retail point of sale and industry specific software as well as state of the art garment cleaning, pressing and finishing equipment.
PRISTINE WATER SYSTEMS Concept: rain water tank cleaning and water filter supply and service Established: 2003 Franchising commenced: 2003 Number of units: 10
Image: Pristine Water Systems
The liquid polymer is applied directly to the surface of the paint Why green Water is a necessity, not a luxury and is something that people need every day of their lives. Pristine Water Systems aims to provide clean drinking water to local communities and solutions for other water management issues. » WWW.FRANCHISE.NET.AU
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Opportunities | Environmental
Equipment advantages PWS’s QuadClean process adds more oxygen to the water which increases the oxidation/reduction potential (ORP). With a high ORP figure, the water is healthier and less inclined to house bacteria and cysts colonies. Support and training PWS provides a two week induction course that includes training in its products, technical processes, operational and servicing as well as ongoing support and marketing and advertising coordination. Cost and agreement term The turnkey cost is $49,000 plus vehicle with a five year agreement and five year renewal.
GREEN HOMES AUSTRALIA Concept: green home building Established: 2006 Franchising commenced: 2013
Image: Green Homes Australia
Business advantages GHA’s franchise model allows franchisees to provide each client with a customised and tailored home design that is based on their needs, wants and available block size. The business does not rely on expensive new building methods but achieving an understanding of the fundamentals of green building and the green design process.
Why green With the high and rising costs of energy in current Support and training New franchisees will be trained and supported in climate conditions, it is only natural for people the areas of green building, design and drafting, to start looking for ways to build homes that are national and initial launch marketing, business cheaper to run and maintain. processes, online training, legal, accounting and Green Homes Australia is a business model that material and partner relationships. has been developed over 20 years and challenges the problems faced when planning to build homes Cost and agreement term efficiently and cost effectively. A GHA franchise has a start-up cost of $30,000 GHA believes that by understanding the ($25,000 to purchase the territory and $5,000 to cover principles of green building, standard homes can F R 0 9 1 3 _ 0 5 6be _ built N O Oat a- standard 1 2 0cost 1 3and - 0 are 8 - three 1 3 Ttimes 0 9 : 4 7 : 4training 1 + 1 0costs) : 0 0and includes a marketing campaign for the initial launch. The agreement term is two more efficient.
Wok stars Wanted Now! New Franchise Partners wanted in Perth & Queensland, plus other key areas Australia wide. • Exciting new restaurant design concept • Full training & ongoing support provided • Largest noodle based franchise restaurant system in Australia • Australian owned We’d love to hear from you!
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Visit noodlebox.com.au/franchise & fill out enquiry form to receive an Information Kit. Or contact our Network Development Manager - Michael Standley on (03) 8851 4200 or 0416 256 338.
Environmental | Opportunities
terms of three years with no cost to continue as a GHA franchisee after that point.
ZEN ENERGY SYSTEMS Concept: renewable energy sales Established: 2004 Franchising commenced: 2010 Number of units: Nine Why green Owning and operating a business in an industry with a lot of government regulation and standards can become complicated and difficult to manage. A Zen Energy Systems offers a business opportunity without the complexities of dealing with the trade of solar rebates and installing the systems themselves. However, people with electrical and/or plumbing experience (appropriate accreditation required) can enjoy the benefits of being a franchisee and operate as an accredited Zen installation technician.
themselves. This business model, therefore, involves Zen paying its franchisees a ‘franchise service fee’ whenever an energy system is sold. Support and training New franchisees will be required to complete a two to four week competency based training program that provides training in all operational policy and procedures and small business management. A small marketing levy is deducted from each
Business advantages Zen is a franchise where the actual sales transaction occurs between the franchisor (Zen) and the customer. FThis R 0means 9 1 3 that _ 0 0the 0 financial _ Y O U Ninvestment G 1 is 2 0 1 3 - 0 8 - 1 4 T 1 5 : 3 2 : 2 4 + 1 0 : 0 0 reduced because franchisees do not hold stock
Image: Zen Energy Systems
Once in a lifetime opportunity Franchises offered for the first time
4,000 property millionaires and counting The Property Club is wholly dedicated to providing Australians with the opportunity of a better life through property investment. To celebrate 20 years in property, we are offering a limited number of Property Club franchises. This is a unique, first-time offer to be part of an organisation that has over 80,000 members, plus we have made more property millionaires than all the rest combined, with 4,000 property millionaires and counting! Take advantage of this exclusive opportunity by contacting us today. — Kevin Young Founder and CEO of Property Club
Visit propertyclub.com.au Call 1300 663 282 WWW.FRANCHISE.NET.AU
SEP/OCT 2013 FRANCHISING | 57
Opportunities | Environmental
franchise service fee paid which is then put towards a marketing fund and spent on national advertising campaigns and promotional initiatives across the network. Local marketing initiatives are also developed by head office in conjunction with the franchisee to boost local community awareness and involvement. Cost and agreement term A standard $50,000 franchise fee secures a five year agreement and covers initial training and for franchisees looking to accompany their business with a retail store, an investment of $200,000 to $350,000 (ex GST) is required. The retail store set up includes the initial franchise fee, shop fit outs, territory set up, vehicles and the initial training fee. An option for extension is available after the five year agreement has been completed.
discussion forum and manuals and press releases. Support and training All franchisees are required to complete two weeks of induction training which is then followed up with field support by franchise development managers. Nanotekâ€™s network provides franchisees with a centralised marketing system that includes national websites and a toll free number, advertising, promotions and key account management. Cost and agreement term A complete start-up package will cost $47,000 plus a car lease and includes full preparation of the car, access to its complete product range, all equipment and marketing materials. Nanotek offers a five year agreement, with an option for a further five years.
SUPERFINISH EXPRESS Concept: mobile scratch and dent repairs to the automotive trade Established: 1993 Franchising commenced: 1995 Number of units: 45
Concept: mobile car cleaning Established: 2004 Franchising commenced: 2004 Number of units: 50
Why green The mobile paint repair industry is heavily governed by EPA (Environmental Protection Agency) guidelines because of the potentially hazardous chemicals and fumes. In response Superfinish Express reviews all of its products and processes to ensure of compliance with EPA guidelines.
Business advantages Franchisees receive a weekly payment based on submittetd invoices and a centralised accounts department chases up all franchisee accounts. By working exclusively for the automotive trade, franchisees benefit from repeat custom and can develop business relationships with clients. Why green Using a polymer nanotechnology that reduces the need for water, Nanotek is able to provide a mobile service to its customers. The liquid polymer is applied directly to the surface of the paint where it encapsulates dirt and lifts it from the surface. The polymer then acts as a lubricant allowing the dirt to be removed without any scratching, leaving not only a polished finish but also a protective coating which lasts up to six weeks.
Support and training A three week one-on-one start up training program focuses on customer service, repairing processes, e-billing, laptop navigation and marketing. This is followed by two weeks of hands on training to help franchisees establish a customer base and oversee their early demonstrations. Ongoing technical and business support keeps franchisees updated with the latest repair techniques and products.
Business advantages Nanotek franchisees are given an exclusive territory to work in as well as access to a secure online ordering system for all equipment, products and marketing materials, online printing portal,
Cost and agreement term A turnkey investment starts at $88,000 which includes a customised base model VW Caddy with a guaranteed income of $1000 for the first five weeks. The initial term is five years with a five year renewal option. F
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Image: Home Instead Senior Care
Aged Care | Opportunities
PRIME TIME An ageing population is increasingly seeking at-home care and franchised businesses are stepping up to meet the demand writes Domini Stuart
he Health Care and Social Assistance industry is now Australia’s biggest employer with a workforce of 1.3 million, or 11.4 percent of the total number of people employed. To put that in perspective, the retail trade employs 10.9 percent, construction 9.1 percent and manufacturing 8.6 percent. It is also the fastest-growing industry, particularly in the area of aged care. WWW.FRANCHISE.NET.AU
“At the moment there are 350,000 people in the aged care system,” says Trish Noakes, CEO and founder of Just Better Care. “In the coming decade we’re going to have 3.6 million, of whom one million will have dementia.” “There’s nothing more certain than people getting older and needing help” adds Home Instead Senior Care director Martin Warner. “And SEP/OCT 2013 FRANCHISING | 61
Opportunities | Aged Care
everyone knows staying in your own home as you age is the preferred option.” Over the past decade, in-home care in America has risen to the top of the aged care hierarchy. It’s likely that Australia will follow suit and, not surprisingly, growing numbers of would-be franchisees are being drawn by the scale of the opportunity. But, for most franchisors, a desire to make money is not what the business is about. “We get hundreds of inquiries from people motivated by financial outcomes,” says Noakes. “Every business has to be profitable but, if that’s the key motivator, we’re not interested. We look for people who have a passion for service provision and good communication skills as well as reasonable business acumen and a desire to succeed.” Grant Gaston, who recently took over as the master franchisor of Senior Helpers, says that some people are horrified to hear that one of the first qualities he looks for is an ability to develop the business. However, he adds that one of the biggest barriers to providing appropriate care is the fact that so many people have no idea of what’s available or how they can access what they need. “A lot of education is needed to change the current mindset and culture,” he says. “We look for people who can help to bring this about by having conversations and developing relationships both with families and centres of influence such as hospitals and rehabilitation facilities.” He also looks for people who have operated a business before or, at least, have had some significant management responsibilities, ideally in a corporation. “Of course you need to be committed to providing care of the highest quality but you also have to be able to run an efficient business,” he says. “The heart of Senior Helpers is how well you attract potential clients, handle an inquiry, arrange an assessment meeting, talk to the family, arrive at an agreement and provide a care plan, only then how you deliver the service. If you focus too closely on the care aspect it can be at the expense of the business itself.”
NON-MEDICAL CARE One of the biggest misconceptions about an aged care franchise is that it requires a background in nursing. “People tend to forget that we provide companion and personal care, not medical care,” says Gaston. Comprehensive training makes motivation and aptitude more important than age or background. “Although there are no strict requirements on education or experience, every successful Home Instead Senior Care franchise owner must have a heartfelt desire to work with seniors, compassion and amiability and a commitment to owning and operating their businesses as well as the financial
Image: Home Instead Senior Care 62| FRANCHISING SEP/OCT 2013
Aged Care | Opportunities
capacity for investment,” says Warner. Gaston has found that the biggest learning curve is compliance. “We work very closely with our franchisees to help them comply and to understand why it’s so important that they do,” he says. “The bottom line is that, if you comply with the system, you will succeed. If you don’t, you won’t.” With an entry point around $60,000, most aged care franchises are at the lower end of the investment scale but the necessary working capital is in the region of $150,000. “To get started, you need an office in the community with a couple of staff,” says Noakes. “You need to be able to cover those costs for a year as you’re building your income.” Gaston agrees that franchisees need to take a realistic view of potential growth. “We sell 20 year licences broken down into five year segments,” he says. “If you’re running an efficient business, the value of your territory is going to increase over that time. But, at the beginning, there will be a lag between the initial contact with clients and when they start paying for the service so you have to be able to invest in growing the business.”
We want people to have real choice about when and where they have services, even to the very end of their life FUNDING In Australia, aged care is well funded by the Commonwealth Government Community Care Packages. “The Living Longer, Living Better program was introduced to help people to live independently at home for as long as possible,” says Noakes. “At Just Better Care we sometimes get funding directly from the government, though over 40 percent of our work is from people who choose to come to us, either as private clients or by directing a funded support package to our organisation. The balance of our work comes through brokerage arrangements with over 200 organisations.” Senior Helpers also provides both a brokered service and private care while Home Instead operates a private fee-for-service model. »
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Opportunities | Aged Care
“Each franchise office operates directly with clients and their families, often based on referrals from health professionals and community based organisations, or sourced directly by the client or family,” says Warner. “We want people to have real choice about when and where they have services, even to the very end of their life. Providing consistently great service and real choice directly builds our business. Our clients want a service they can adjust to their changing needs. They are paying – and we are tailoring accordingly. This is in essence the basis of every successful business.”
A FULFILLING CAREER
F R0 9 1 3 _ 0 0 0 _ GJ G Image: Thinkstock
For the right people, working in the aged care sector is enormously rewarding. “As a franchise owner, you get to work very closely with your staff, ensuring that they’re providing an excellent service with compassion and care,” says Noakes. “I’ve been in community care myself for over 25 years and I never fail to be impressed by the amazing people that are attracted to this industry. And there’s little more satisfying or fulfilling than making a positive difference to 2 0 1 3 - 0 7 - 1 6 T 1 4 : 1 3 : 5knowing 6 + 1 0 that : 0 you’re 0 people’s lives every day. F
Imagine your home.
buy into a local brand. Is your business working for you? G.J. Gardner Homes franchises are now for sale in your area. Our proven business model will give you the tools you need to make the business work for you now, whilst building a valuable asset for your future.
Call Matthew Hope on 0432 597 157 or email email@example.com Photographs may depict fixtures, finishes and features not supplied by G.J. Gardner Homes. We also do not supply swimming pools, pool decks and fences. These items include landscaping – including planter boxes, retaining walls, water features, pergolas, screens and decorative landscaping items such as fencing and outdoor kitchens and barbecues.
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Opportunities | Health market
APPROACH Even health practitioners can boost their business with a franchise brand. Here we look at just a handful of the options available.
rofessionals in the health sector might like the opportunity to re-badge an existing retail business and join a franchise chain with all the support elements and branding that entails. Signing up to a franchise could also be the route to business ownership for qualified practitioners ready to forge their own path in the healthcare services sector.
systems and internal strategies that focus on providing customers with comprehensive, high quality healthcare services. “We needed a new internal system that would give our in store personnel access to the very latest training and resources.” The new online education portal, which includes continual professional development for pharmacists, product and supplier training, will also streamline
DISCOUNT DRUG STORES Discount Drug Stores has 110 pharmacies in its Australia-wide chain and has launched a comprehensive online training portal for its employees and pharmacists with the aim of positioning the chain as a leader in its market. The benefits of the custom-designed system are expected to be a strengthening of the brand’s in-house training systems and a boost to efficiency. Douglas Kuskopf-Dallas, general manager of the community focused franchise, says service excellence is a key objective this year as the business strives to enhance its point of difference. “Discount Drug Stores has achieved significant and rapid growth over the past six years due to our 66| FRANCHISING SEP/OCT 2013
Our store growth will help us deliver more benefits to our franchisees through the economies of scale internal operations for Discount Drug Stores, with pharmacists and other pharmacy personnel now able to complete all their training in one place. “By bringing all training in-house, it will be easier for our pharmacists to not only complete their
le ed b ck ila b a va y a o r ow ct n Fa ing as
“I CHOSE A 20% RETURN ON MY INVESTMENT.” When Phillip V. chose to invest in Speed Queen laundry, it was to bank on the proven performance of an industry leader. Sure, he likes the average 20%* ROI in a nearly recession-proof industry and the fact that he will likely break even in less than a year. But, what does he like most? Being backed by the world’s largest distributor network and the freedom to do business his way. Visit speedqueen.com.au/invest or call 1300WASHER (927 437) to get started. *According to the Coin Laundry Association.
Opportunities | Health market
required training but to access education resources and information that they would not have otherwise come across,” explains Kuskopf-Dallas. “It will ensure our pharmacists are among the best in the industry and will give us an added edge over our competition. The chain has the goal of 200 stores within five years. He says the pharmacies aim to provide customers with a wide choice of cost-effective services and products to improve health and wellbeing. “It’s an ethos that was established when we first began franchising in 2006 and one that was developed out of the strong belief that affordability and quality could and should work together.” The group previously launched an e-commerce platform that allowed customers to shop online from their local store and introduced a private label range of over the counter medicines. “The release of our private label range is just one new product launch that is aimed at giving our customers high quality but more affordable products,” says Kuskopf-Dallas.
OPSM Traditionally the eyecare operation has demanded optometrists head up the business units but now there are three different investment models that require varying levels of skill and experience. The alliance model is essentially a ‘try before you buy’ says Peter Baily, the director of development for AsiaPacific with Luxottica, the Italian-based franchisor of the OPSM brand. This suits naturally riskaverse optometrists who might not have business experience. After 12 months running the business as a franchisee, with no investment from them, the optometrist can choose to buy the business or revert back to being an employee. Optometrists can also purchase an optometry franchise, which is a franchise of the eye-testing portion of the business only, and has a five-year term with one option to renew for a further five years. Images: OPSM
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This business model has a four percent royalty fee and is run within a company owned outlet. The third model is a full franchise which doesn’t require optometry qualifications. There are now 85 franchisees who have invested in this model, and 29 further individuals undertaking the franchising process now. The 100th store is set to open soon. There are great opportunities but, says Baily, “we’re a bit fussy. We’re looking for business skills - we can deliver a good return on investment, we supply everything - it’s about selling and marketing your business. “All the hard stuff has been taken away. A huge marketing department is behind you running a sophisticated multi-channel program. “This has good margins. We’re in high rental areas but there’s a latent demand. We’ve done a lot of work to identify opportunities, and will use franchising to fill these areas.” OPSM is seeing the advantages of multiple unit ownership among its franchisees and is encouraging
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Opportunities | Health market
a Priceline Pharmacy Health Ambassador. “Bringing Ita on board was a huge coup, and will help complement our other marketing programs, including our ‘Sister Club’ loyalty program which now has over 3.9 million members,” says Stephen Roche, managing director and CEO of PRICELINE The Priceline pharmacy chain has in the last year parent company API. “We know this program resonates fantastically launched an online store, and announced healthcare champion and Australian of the Year Ita Buttrose as well with our franchisees, as it’s one of the most successful loyalty programs in the country and remains unrivalled in the pharmacy sector.” Initiatives such as 30 days of Fashion and Beauty and a new national health initiative that follows on from Australia’s Biggest Health Check are continuing. “Our outreach into the community also continues with the hugely successful Priceline Sisterhood, which has raised over $700,000 for six worthy Australian charities which is exciting, and we are dialling up all our marketing activities to help increase foot traffic for our franchisees,” says Roche. There are 360 stores in Australia, 210 of these are franchised. “Our growth is almost entirely new F R0 7 1 3 _ 0 0 0 _ T EL 1 2 0 1 3 - 0 6 - 1 3 T 1 5 : 0 4 : 2franchisee 9 + 1 0 : stores. 0 0 We have invested considerable time and energy into making the Priceline Pharmacy multi-unit franchising he says. “It’s something we want to foster as we go forward. There are quite a few individual operators with a group of stores seeing this as a better way.”
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Health market | Opportunities
Our growth is almost entirely new franchisee stores
Images: Priceline Pharmcacy
offering appealing for existing and potential franchise partners and our store growth will help us deliver more benefits to our franchisees through the resulting economies of scale. “We’re focused on becoming the best franchise partner in Australia, and take the view that we are partners to our franchisees in ensuring the success and profitability of their businesses.” A recent survey indicated high levels of franchisee satisfaction in the network but there’s always room to improve, he says.
Lined up are increased training for staff and franchisees, investment in the latest industry information, and a focus on the health and beauty segment. “We’re also significantly expanding our product offering, which includes a more comprehensive range of products and services to position Priceline Pharmacy as the ultimate ‘women’s playground’. “We want to ensure our people are consistently able to provide knowledgeable advice in the dispensary as well as on categories like cosmetics, skincare, hair care, weight management and natural health.” The aim is to achieve market competitiveness and innovation to ensure Priceline is leading the market, he says.
BACK IN MOTION The Back in Motion franchise is another health and well-being opportunity. You can read more about this network of physiotherapy practitioners on page 36. F
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Opportunities | Beauty
THE BUSINESS OF
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Beauty | Opportunities
Beauty franchises that offer services other than pampering treatments are on the rise, as Australians seek a multitude of more specialised beauty and health-related services. By Brea Carter
rom hair and makeup specifically for brides to unique hair removal techniques, nonsurgical cosmetic enhancements and eyelash extension applications, the world of beauty franchising is on the path to diversification – a trend Australian research firm IBISWorld reports is showing no signs of slowing down. In its Hairdressing and Beauty Services in Australia April 2013 report the firm predicts “Beauty salons and day spas will offer a broader range of health and beauty services to clients, including spa treatments, massages, relaxation and other beauty treatments. Some consumers no longer view spas as ‘pampering’, but rather as a necessity for health and stress reduction. WWW.FRANCHISE.NET.AU
“Consumers are always looking for the next miracle beauty treatment. The desire of individuals to retain a youthful appearance is expected to sustain ongoing demand for beauty treatments.” The report estimates the beauty industry will enjoy a steady growth over the next five years, with revenue expected to increase by an annualised 1.5 percent to $4.31 billion through 2017-18, a figure IBISWorld notes will in part be driven by the metrosexual movement and baby boomers who wish to delay or reverse the ageing process. Here we look at four very different beauty franchises pioneering this trend, each of which specialises in a particular service or sector of this booming industry. » SEP/OCT 2013 FRANCHISING | 75
Opportunities | Beauty
MAKEUP 4 BRIDES/HAIR 4 BRIDES Makeup 4 Brides/Hair 4 Brides is a mobile franchise that provides professional makeup and hair services to brides and their bridal parties. Founder Lisa Thomas explains the Makeup 4 Brides/Hair 4 Brides philosophy is simple – “We charge based on the service required and do not charge the bride higher because she is a bride. “Our hair pricing is charged ‘per style’ so that someone with short hair is not paying the same amount as someone with longer hair. We feel this is a very fair way to run a business.” Both businesses are aimed at people who are able to work part-time and/or from home. “Our franchises are ideally suited to stay-at-home mums wanting to bring in an income stream but who also need the flexibility to be home with their kids. “They are also suitable for part time workers who wish to add a second income stream, beauty salons or hair salons that are looking to add a mobile sector to their business and even students who can fit running their own part time business in with their studies,” Thomas adds. Franchisees do need to have a background in the beauty and/or hair industries, along with a relevant industry qualification. “Essentially we have packaged the franchise deal to target those who perhaps have done the training and have some experience, but are finding it difficult to translate their skills into a business. “We haven’t priced it to train someone from scratch in all aspects of makeup or hair as this would make the franchise deals more expensive,” she says. Image: Just Lashes
The initial training covers everything from basic accounting through to airbrush and bridal makeup training. Thomas says a Makeup 4 Brides franchise is $17,000 plus GST, meanwhile a Hair 4 Brides franchise costs $15,000 plus GST. “This includes uniforms, car signage options, Makeup 4 Brides/Hair 4 Brides flyers, access to the online print management system for marketing material, the operations manual, and full business training,” she adds. Also included in the Makeup 4 Brides package is an M4B Pro Professional Makeup kit including makeup case, Iwata airbrush gun and compressor, and the Hair 4 Brides package includes a full H4B Pro Hair Products kit including hair styling case and hair padding. Both businesses have an initial franchise term of five years and franchisees looking to renew for another five years can expect to pay a further $10,000.
Makeup 4 Brides/Hair 4 Brides provides a one to two week training course that is tailored to suit the needs and requirements of the franchisee. “Initial training is designed for the individual franchisee – it will depend on their experience and areas of the business that they may require additional assistance with.” 76| FRANCHISING SEP/OCT 2013
Just Lashes in the only Australian franchise that specialises in lengthening women’s eyelashes through the application of semi-permanent lash extensions. A number of Just Lashes salons also offer the Caribbean Queen organic spray tan and the brand has recently introduced Bodyology, a technology that is designed to aid weight loss. “The brand’s philosophy is to offer unique services. I refuse to bring in waxing and we don’t want to do facials. We definitely want to be unique and stay unique and that is working for us,” says founder Gwendoline McCracken. Just Lashes facilitates a two week training program for its franchisees and one of their staff members, and it is included in the cost of the franchise. “The first week is all about the services and a lot of the second week covers the operations manual and the running of the business.
| 1 Opportunities 2 0 1 3 - 0 6 - 1 3 T1 4 : Beauty
F R0 7 1 3 _ 0 0 0 _ COS
“We bring in our accountants and go through GST, payroll and fair work and we teach franchisees how to interview staff and use our computer software,” she explains. Additionally, McCracken says a Just Lashes team member will be on hand to assist franchisees with any teething problems when they first open their salon. “We send one of our qualified staff into the franchise to make sure they are comfortable for that first week at least.” Potential franchisees do not necessarily need to have any prior experience in the industry; so long as they possess the right personality traits to make the business a success. “I feel the interview with me in the beginning is so critical. I need to feel that warmth and passion from them because the clients need that - these days it is not just about the service - you have got to make people feel special. “They need to have good communication skills and be business savvy because if not the minute they open their doors it will fall down,” she adds. A Just Lashes franchise starts at $85,000 for a full turnkey operation, and the more services franchisees wish to provide the greater the franchise cost. “You can just be a Just Lashes or you can have the full shebang, and that will take the price up from there. From $85,000 you can get a really good little business with a return on investment in the first 12 to 18 months,” says McCracken. The initial franchise term is five years and McCracken says there are options for renewal after that.
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GET THREADED Get Threaded specialises in threading, an ancient art founder Liz See explains “is a hair removal technique where an antibacterial cotton thread is used in a special method to remove the hair. It is commonly found in countries like India, Egypt and China, is an ideal alternative to waxing and is 100 percent natural.” See in fact wrote the government accredited Certificate II in Hair Removal (Threading) and Get Threaded is an approved Registered Training Organisation (RTO), so franchisees can expect to receive a wealth of initial and ongoing training. New franchisees complete the ‘Get Set To Get Threaded’ training program, which employs the ‘business in a box’ model. “It includes access to the Get Threaded online theory portal for completion of assessments and tasks. Nationally accredited qualifications and statements of attainment are given for each successful completion and training is delivered via a mix of practical and theoretical methods,” says See. The ‘business in a box’ model aims to provide franchisees with all the skills and knowledge required to operate their franchise successfully, and it encompasses a series of face-toface and Skype sessions. “It also includes final completion of the business and marketing plan that Get Threaded and the potential franchisee formulate prior to their approval,” See adds. Upon completion of the initial training program she explains Get Threaded staff help franchisees transition into their new store. “Get Set to Go is a comprehensive on and off-site training program delivered by Get Threaded authorised team members to assist franchisees in their opening weeks. Follow-up training also
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SEP/OCT 2013 FRANCHISING | 77
Image: Get Threaded
includes 12 weeks of weekly Skype meetings as well as the ‘Contact a Buddy’ franchisee support system.” When it comes to the ideal franchisee, See says “no experience in the beauty industry is necessary. A passion and strong belief in what we do is required.” She has instead established the ‘Get Threaded Five Signs of Success,’ which outlines the five key qualities the brand looks for in potential franchisees: • People who desire success and offer impeccable customer service • People that match our core values • People who want to be part of a bigger team • People who will contribute to finding opportunities to grow their franchise • People that want to be part of the Get Threaded story The cost of a Get Threaded franchise will vary according to the location and type of franchise, and the franchisee’s prior experience will also be taken into consideration. “Get Threaded brow & beauty bars and salons start from $150,000 plus GST. Ongoing franchise fees include a national marketing levy and weekly franchise fees. These are determined by the type of the franchise and level of experience of the franchisee,” See explains.
Beauty | Opportunities the fact that laser can be a life-changing experience allowing clients to live, laugh and love for a lifetime,” say The Laser Lounge’s co-founders. Beyzaee is head trainer at the NSW Australasian Academy of Cosmetic Dermal Science, and much of her knowledge and experience forms part of the brand’s training programs. “The Laser Lounge offers all franchisees and staff extensive initial and ongoing training in paramedical beauty and business systems. Ongoing education is paramount in our philosophy and critical to the successful operations of our clinics. “In addition, business systems and strategy training and support are offered by our accredited team of experts that specialise in niche areas of management, information technology, marketing and sales,” says Coorey. Thanks to both co-founders expertise (Coorey has 12 years of corporate management experience), the brand is able to offer new franchisees extensive training, which means they do not need to have a background in paramedical beauty. “We offer franchise opportunities to those who are professional, honest and share the same passion for laser and paramedical beauty that we do. “Our skin and laser technicians are carefully selected based on experience and passion, resulting in an expert team that can provide quality treatments for all our clients,” explain the pair. Beyzaee and Coorey say the cost of a Laser Lounge franchise will depend on a number of factors. “Owning a business is all about investing in an opportunity that will pay off in the future. The Laser Lounge franchise is no different, and there are a few upfront costs to consider as you evaluate this opportunity. “Costs can vary according to location, equipment and clinic capacity; however the initial investment for a Laser Lounge franchise starts from $235,000.” Franchisees sign an initial five year agreement and a five year renewal option is available after that. F
THE LASER LOUNGE Established in 2008 by sisters Bita Beyzaee and Gita Coorey, The Laser Lounge is a holistic paramedical beauty brand that specialises in laser hair removal and skin rejuvenation services, along with nonsurgical cosmetic enhancements. “Our clinic motto is ‘live, laugh, love, laser’, and we observe this concept in everything we do - our motto stands tall at all The Laser Lounge clinics. “It reminds our team and our clients that we live to exceed client satisfaction, enjoy the relationships that develop between both staff and their clients, love the outcomes they achieve and it highlights
Image: The Laser Lounge
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All images: Thinkstock
Franchise truths | Issues
WHY DO FRANCHISES
FAIL? Before you invest in your franchise, check out how to keep your franchise on track.
igning up to a franchise is exciting; a time of great promise, of financial and emotional commitment. But not every franchise investment results in success. Sometimes franchisees do fail in their business, and that’s never good news. So SmartFranchise conducted industry surveys to come up with seven business truths around franchise failure and some tips for staying on track.
THE SEVEN WAYS A FRANCHISE CAN FAIL In reverse order, leading up to the most common contributor:
7. THINGS CHANGE However keen you are at the beginning of your new business, and despite your commitment to follow the process, it’s inevitable that things will change. Communication is the key here – are you and the franchisor looking in the viewfinder and seeing the same image? If there’s a discrepancy between what you both understand, chances are there will be a misunderstanding down the track.
6. NOT UNDERSTANDING FINANCIALS Let’s consider the money aspect, it’s what we’re all in business for yet often is misunderstood. Talking about money and numbers is a little like
the emperor’s new clothes – people don’t like to admit they don’t understand but it’s fairly common for franchisees to be unfamiliar with the terms and language bandied about by accountants and franchisors. So that’s an immediate barrier to open communication. Franchisors might provide a toolkit for working the figures, but not every franchisee will use it the same way – which means the expected figures will be different. There can be a disconnect between the numbers on the page or the screen, and making sense of them. TIP 1. Look out early on in the conversations with the franchisor and see how focused they are on you getting independent advice and how much emphasis is put on financials. 2. SmartFranchise co-founder Kate Groom says “It’s not enough to simply say to a franchisee ‘get some advice’. The best option is to find an accountant who specialises in franchises and seek their guidance.” 3. And what about understanding the financials of the business? Accountant and fellow founder of Smart Franchise Peter Knight says “a three hour slot in the induction on finances is not enough”. 4. His advice is to find a franchisor who doesn’t » WWW.FRANCHISE.NET.AU
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Issues | Franchise truths
overload with numbers, but provides key figures for franchisees to work with: • Sales compared to budget • Gross profit • Net profit • Bank account • Outgoings • Accounts receivable
5. DOING “CRAZY THINGS” Have you got your eye on a new car or a sleek boat once the business is paying dividends? Well, beware, because overspending in times of plenty can backfire. Kate Groom cautions, “The additional financial burden makes business harder, therefore it’s important for franchisees to look ahead at their upcoming financial commitment.” TIP Understand your business cycle and plan ahead.
4. THE SALES AND MARKETING GAP Yes, your franchisor is going to provide you with marketing tools, possibly even a national campaign that will boost the brand. But getting the sales is up to you. Too much reliance on marketing can mean the practical part of sales is neglected. Peter Knight advises, “New franchisees must improve their selling skills. They should book into some sales training courses specific for their business.”
3. PRIDE AND EGO A franchisee wants to be successful (and the franchisor wants them that too) but things don’t always go as planned. When you’ve set yourself up for success, it can be hard to admit to the world that the plan has derailed. Franchisees can feel embarrassed when they aren’t meeting the benchmarks, and as a defence action can stop listening. “No-one wants to be told they’re not doing things the right way,” says Groom. TIP It’s important to get control by understanding the business you are operating and being prepared to listen to and take advice.
2. BUSINESS RIGOUR “Many business owners have no structure for running their business – they lack business rigour and discipline. Most are simply flat out keeping up with day to day and operational issues,” says Knight. Kate Groom agrees. “New franchisees should look for franchisors who have a structured plan to help them identify ways to improve. “It’s really about helping the business owner to get skilled up in managing a business.” 82| FRANCHISING SEP/OCT 2013
Franchise truths | Issues
Most people who start a franchise have little or no business experience. That’s a big reason they buy one. They are looking for help and it’s important for a franchisor to give them guidance on how to run a business.
1. TOO LITTLE INCOME You’ve completed the business plan which outlines how to reach the income you need. But somewhere along the line things have slipped, and now the income is too low, and your financial commitments too high. When franchisees don’t see the financial commitments upcoming things will go awry. So that’s why franchisees should be like meerkats - always alert, heads up, looking around. Says Groom, “Where you are today is a result of the activity in the past, so plant the seeds for good growth in the quiet times.” TIP Franchisees must constantly manage their financial position. They need to watch for the early warning signs of impending danger and make plans to generate more sales and find new customers. They need to manage the issues of today, and constantly F R 0 9 look 1 3 _ahead. 0 0 0 Then _ M Athey D need 1to take 2 0 action 1 3 - 0 and be always looking to improve.
Franchisor survey In a recent survey conducted by SmartFranchise, 58 percent of franchise owners said their greatest frustration with financial communication was “a lack of understanding” while a further 10 percent admitted that they simply don’t listen. The survey also revealed that 88 percent see there is room to improve financial understanding and they actually want communication to be better.
One of the early warning signs that financials are out of alignment is an inability to pay royalty fees. If this happens, create an action plan fast.
SUMMARY Any profitable set-up is at risk of a negative turnaround if business owners don’t stay alert. On the flip side, if you keep on top of cashflow, the business plan and the budget; don’t get swept away with ambitious plans or purchases; concentrate on selling; face up to problems 8and - 1speak 3 T 0up 9 if : you 5 9 need : 1 6help, + 1there’s 0 : 0 a0stronger chance you will be one of the many successful franchisees. F
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SEP/OCT 2013 FRANCHISING | 83
Issues | Franchise suvivors survey
SKILLS A go-getting attitude can really make a difference in business
esearch conducted by Griffith University’s Asia-Pacific Centre for Franchising Excellence that compares surviving and failed small businesses during uncertain economic times in Australia from 2010 to 2012 shows that personal attributes are key factors contributing to and hindering small business success. Centre director and lead researcher, Professor Lorelle Frazer, says the research report Survival of the Fittest shows that failed business owners did not attribute economic uncertainty as being any more detrimental to their businesses than did business survivors. “Key differences between surviving and failed businesses tend to be internal factors, such as personality, adaptability and decision-making autonomy, rather than economic conditions alone,” Professor Frazer says.
COMMON THEMES The research reveals failed business owners tend to be older and have achieved lower levels of formal education than business survivors. It was also likely that those business owners whose operations had failed would feel forced into business ownership through external economics and consequently have a more preventive approach to running the business rather than being engaged in driving the business. “Failed business owners are more likely to be motivated to enter business due to circumstances beyond their control, such as ‘buying themselves a job’ to avoid a negative situation like being unemployed or having no income, rather than based on being
The 14 factors The survey has highlighted 14 distinct factors that differentiate failed business owners from the survivors: 1. Age 2. Level of education 3. Business ownership 4. Debt levels 5. Access to finance 6. Motivation to enter business 7. Prevention focus goal orientation 8. Due diligence 9. Pre-entry information availability 10. Contractual understanding 11. Decision-making autonomy 12. Adaptability 13. Contractual restrictions 14. Personal well-being and regret
Image: Thinkstock 84| FRANCHISING SEP/OCT 2013
Franchise suvivors survey | Issues
proactive towards business success,” explains Frazer. “They were also more likely to be in partnership with someone as opposed to sole owners, which may explain why they feel restricted in decision-making and, to a certain extent, less adaptable.” While there was no significant difference in start-up costs between those business owners who had survived and those whose businesses had failed, what did emerge in the research was that among the business failures there was a higher percentage of borrowing. “This indicates access to finance may not always support business survivability, as it may lead to higher levels of debt, which can be harder to service when times get tough,” Professor Frazer says.
SURVIVAL TRAITS In contrast surviving business owners manage lower levels of debt, have less access to finance and achieve a better work-life balance. They are likely to be younger, hold higher levels of formal education, and have greater levels of autonomy and adaptability. When it comes to decision-making, it seems that going F Rsolo 0 9 can 1 3 be _ 0beneficial, 8 5 _ R Eallowing D - individuals 1 2 0 1 3to- 0 take responsibility for their actions and cause “less
psychological discomfort”, the report suggests. Survivors had a better understanding of their contractual obligations, were engaged in an achievement-based approach to their business and were less likely to attribute blame to external factors.
Access to finance may not always support business survivability While the external influences - such as age, education, pre-purchase information, access to finance - play a part there is more to business survival. It seems that a positive, have-a-go attitude is of real benefit to business owners. F Download the report ‘Survival of the Fittest’ at: http://www.franchise.edu.au/survival-of-the-fittestresearch.html. The research was funded through an Australian Research Council Linkage grant with the Departmenmt of Industry, Innovation, Climate 8Change, - 1 3 TScience, 1 0 : 2Research 7 : 0 7 and + 1 Tertiary 0 : 0 0 Education and Franchise Council of Australia.
SEP/OCT 2013 FRANCHISING | 85
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How to... | Finance
COUNT IN THE COSTS, ADD IN THE
EXTRAS TIM KILHAM
If you’ve done your budget you will know how much you can spend on a franchise. But what about those pesky little extras that may have slipped your calculations? Tim Kilham reveals some of the costs you’ll need to add in.
Director of Lanyon Partners
All images: Thinkstock 88| FRANCHISING SEP/OCT 2013
Finance | How to...
hen you are considering the purchase of a franchise business it is crucial to know what costs you will incur. You will probably be aware that franchising is governed by a Code of Conduct administered by the Australian Competition and Consumer Commission. This Code of Conduct requires every franchisor to issue a Disclosure Document. Section 13 of every Disclosure Document (all Disclosure Documents are numbered identically) sets out in some detail the initial payments that need to be made to the franchisor and other suppliers. Notwithstanding this, based on my many years of experience in the franchising industry, I find there are often particular costs that potential franchisees have not taken into consideration. There are also particular costs that franchisees expect to incur but are then surprised by how high they are. So what are some of the costs you might need to add in to your budget?
ADD IN: GST When you purchase a franchise, unless you are buying an existing franchise as a going concern, it is likely you will have to pay GST. If the franchise costs $100,000 without GST, then GST is $10,000. You will recover this GST when your first Business Activity Statement is lodged, usually somewhere between two and four months after you commence business. However, you will need to finance the GST until it is recovered. You will therefore need to take this WWW.FRANCHISE.NET.AU
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Finance | How to...
into account when determining whether you can afford the franchise and how much you will need to borrow.
ADD IN: FRANCHISOR’S LEGAL COSTS In some cases franchisors will pass onto franchisees the legal costs relating to the preparation of franchise documents and, where premises are involved, leasing documents. I fi nd franchisees often do not expect to pay these costs, or if they do, are surprised by the level of the costs. I usually recommend to franchisees that they ascertain what the costs are going to be before acquisition of the franchise, or that the precise dollar amount of the costs is specified in the franchise agreement.
ADD IN: PREMISES SECURITY DEPOSIT
AD_ F RACE 2 NOV _ 1 2 . p d f
If the acquisition of a franchise also involves the leasing of premises, then the landlord will almost certainly require a security deposit. This deposit is commonly three months’ rent, plus GST, plus outgoings. The amount can therefore be 1signifi 1 9cant / 1 –0tens / 1 of 2 thousands , 2 : 2 6of dollars. PM You will either have to have the cash for the
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SEP/OCT 2013 FRANCHISING | 91
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How to... | Finance
security deposit or provide security in the form of a bank guarantee given by your bank to the landlord. However, the bank will provide this guarantee only if you put the cash aside to fund the guarantee or if you provide adequate security to the bank. The security deposit therefore is effectively a cost that reduces the amount you are otherwise able to borrow.
ADD IN: WORKING CAPITAL If your business involves holding stock and/or selling items on credit, then you need to finance the stock and the debtors until you are paid. This stock and debtors, less creditors (the amount you owe to suppliers for goods purchased) comprises your working capital. It is the cash you require to finance your operations. The amount of working capital required varies for each F R 0 9 1 3 _ 0 9 2 _ U business NI - depending 1 2 0 1on 3 the - 0level 8 - of 2 2stock, T 1 6debtors : 0 8 : and creditors. If you fail to adequately calculate
working capital requirements, and to ensure you have sufficient cash (or borrowing capacity) to fund this working capital, you do this at your peril.
SUMMARY I have highlighted only some of the costs that, because of their nature or size, surprise franchisees. Read Section 13 of the disclosure document carefully, make sure you understand all the costs listed there and make sure you understand what the amount of those costs will be. F Tim Kilham is a director of Lanyon Partners Chartered Accountants and heads up its franchising division. Tim is particularly active in advising on the purchase and set up of franchise businesses. 1Contact 3 + 1 Tim: 0 : firstname.lastname@example.org 0
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92| FRANCHISING SEP/OCT 2013
DON’T IGNORE DEBT! Do you want to avoid cash flow troubles? It all comes down to timing, says lawyer Greg Wrobel.
94| FRANCHISING SEP/OCT 2013
ny business owner struggling with debts or cash flow issues is advised to start taking action earlier rather than later, and it is no different for a franchisee whether they are retail based or a service operation. When a franchisee is struggling with cash flow and overwhelming debts to creditors, the first step they should take is to consider their business plan and strategy − whether or not it is working − and what changes need to be implemented. “Problems with cash-flow probably indicate there are underlying problems with the business or the strategy the retailer has implemented,” lawyer Greg Wrobel states. When battling to make ends meet, it’s important for franchisees to identify what is causing the problem.
All images: Thinkstock
How to... | Cashflow
Cashflow | How to...
Franchisees can turn to their franchisor for guidance when looking to turn their cash flow crisis around. Then it is important to communicate with creditors early on, to prevent the situation worsening. “It’s critical to engage with all creditors as part of an overall strategy to address cash-flow problems, as debt enforcement action by any one of the creditors may be catastrophic,” adds Wrobel. “It’s also important to remember that while creditors may be prepared to negotiate, they will want to achieve an appropriate commercial outcome.” In the past 12 months Wrobel has seen an increased number of companies struggling to pay debts to creditors, who then engage his services to assist in recovering those debts. “Recovery action may also result in the business being placed into liquidation by a creditor, or the directors of the business being required to take action to appoint a voluntary administrator.”
HOW TO AVOID RECOVERY ACTION
2. Business operators should have clearly defined procedures and protocols in collecting their debts, which may include following-up debtors once arrears extend beyond usual trading terms. 3. Acknowledge the issue and begin discussions with creditors or debtors about the funds in question. Ignoring these problems simply means that they will compound over time, which in the overwhelming majority of cases means that the business will ultimately fail.
Proper debtor management is critical for any business 4. If negotiations can not be reached with a creditor or debtor, and the business resides in NSW, the Office of the Small Business Commissioner provides dispute resolution services (including assistance for commercial disputes and retail leasing disputes). F
Tips for avoiding recovery action: 1. Proper debtor management is critical for any business and the business operator needs to ensure Fthat R 0debtors 9 1 3 strictly _ 0 0 0comply _ WO with W -these 1 policies, 2 0 1 3 - 0 8 - 1 6 T0 9 : 1 6 : 5 2 + 1 0 : 0 0 including paying within normal trading terms. Greg Wrobel is a partner at law firm Holding Redlich.
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Shopping centres | How to...
A GOOD TIME TO NEGOTIATE
Before you sign up to a shopping centre site there are some points to consider suggests Peter Buckingham.
have been speaking with a few senior executives of some of our largest coffee and cake franchise chains over the last few weeks, and asked the open question: “How are you finding dealing with the big shopping centres at the moment?” The common thread is that times are relatively tough, and so franchisors are having more success in negotiating new lease deals with lower rentals than probably ever before. The last thing a shopping centre needs is vacancies, and the queue of “Ma and Pa” individual businesses wanting a site has reduced greatly, so the need to fill the big shopping centres falls back onto the retail chains. If you want to secure a site, this puts you in a far better position than two years ago. One retail chain told me how they had been prepared to walk away from some locations and actually had done so. Playing bluff with leasing
agents really only works when you are prepared to close some stores, and actually do so and walk away. Whilst the very big centres can handle this, and possibly find new tenants, the medium and smaller centres quickly start to take on a look of despair if there are more than a few vacancies on the floor. In some states, where the law forces the registration of leases (New South Wales for example), it is possible to find out what the other tenants in the building are paying.
BUT DON’T BE MISLED. A registered lease indicates how much has been agreed upon in terms of monthly rental, but may not show the other items that have been negotiated. A shopping centre wants to maximise the amounts shown as lease/rental payments as these are reported in terms of returns to shareholders. » WWW.FRANCHISE.NET.AU
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How to... | Shopping centres
Other items that may be given away in exchange for signing the deal may be under marketing expenses, so not showing in the lease income for the centre. Be aware that if you are agreeing to a monthly rental there may be other concessions on offer, such as rent free periods and fit out contributions, and be sure that you have your share.
MEASURABLE DYNAMICS OF A SHOPPING CENTRE
So what are the main dynamics of a shopping centre that you should be looking for? The first thing is the way of comparing one shopping centre to another. Whether you find information from the individual websites, from the property council data on shopping centres or the big guns themselves, you need to understand what they are telling you. I believe the three most important numbers are: 1. GLAR – Gross Leasable Area Retail - This is telling you how big the shopping centre is, and inevitably bigger shopping centres charge more rent per sq m than do smaller centres. A super regional centre ie Chadstone, Castle Hill and Bondi Junction, are all larger than 85,000 sq m, and must also have at least one major department store present. 2. MAT – Moving Annual Turnover - This is what the Of course one of the advantages of signing up shopping centre indicates is the total dollars per to a new lease as a franchisee is that in many cases annum that is sold though all retailers in the centre. your franchisor will have negotiated a good deal This figure is compiled from a combination of retailwith the landlord. But even if your franchisor helps ers who are required to submit their sales as part of source a location and conducts a lease negotiation, it is their lease conditions, and those that have another worthwhile understanding what you are looking for in will 0 1 0 6 1 1 5 x 1 7 1 3 2 3 1 1 6 0 3 [ D MMS 3 F ] . p d f P a g e 1arrangement. 1 9 / 0 8A / super 2 0 1 regional 3 , 4 shopping : 0 9 Pcentre M a site rather than relying entirely on the franchisor. have an MAT of around $1billion annually.
There is no benefit if you need three phase power and 150 amps to then find you have 100 amps of single phase, and no way of installing exhausts or water
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| How to... Shopping -centres 1 2 0 1 3 - 0 4 - 1 6 T1 6 :
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Are We A Good Fit?
3. Pedestrian traffic - These numbers are the centre’s submission of how many people come through the centre in a year. This is normally gathered from door counters, which have improved greatly in the last few years. You do need to be aware that the shopping centre may have another huge traffic flow that can distort the figures, but once you think about this, it can be easily addressed. I recently did a site potential report for Melbourne Central and was amazed it had pedestrian figures of over 30 million. Why? It is above Melbourne Central Railway Station, and a huge number of people passing through are using the centre as a thoroughfare, going to work or university. Currently a strong super regional shopping centre will have pedestrian traffic of 15 to 20 million people.
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WHAT YOU NEED TO KNOW ABOUT THE AREA Once you have an understanding about the quantitative comparisons between shopping centres what else should you look at? The first consideration is residential demographics, although in our view they do not play as significant a role as the physical attributes of the shopping centre. Demographics tell us about who lives and works in the specific area we are looking at. Census data gives a very good start and is readily available from www.abs. gov.au and by working your way through QuickStats. You can also find out business demographics, or who works in and around the shopping centre you are interested in. »
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future l and sca pes
For Leadership, Strategy and Technology
Following on from a stellar line up in 2012, there is an exciting program in development this year. We are pleased to announce Guy Russo - Managing Director of K-Mart; Steve Romaniello - Chairman of the International Franchise Association; Warren Wilmot - CEO of 7-Eleven and Dean Pearson - Head of Industry Economics at NAB as just some of the keynote speakers at this year’s Convention. As always, there will be a focus on networking, and along with a lively exhibition hall, this year’s networking night will take place in the beautiful surrounds of McLaren’s Landing. Add to this, some of Australia’s best franchisors sharing their expertise and experiences in a panel setting and NFC13 promises to be the pre eminent event in Australian franchising in 2013.
Managing Director of K-Mart
Chairman of the International Franchise Association
Chief Executive Officer, 7-Eleven Stores Pty. Ltd
Head of Industry Economics at NAB
Guy Russo was appointed Managing Director of the Kmart retail chain owned by Wesfarmers Ltd in Australia and New Zealand, in 2008. Formerly with the McDonald’s Corporation, Mr Russo served as Managing Director & CEO of the Australian business and President of McDonald’s Greater China.
Steve Romaniello, CFE, Chairman of FOCUS Brands and Managing Director of Roark Capital Group, Atlanta, Ga., is the new Chairman of the International Franchise Association.
Warren has been with 7-Eleven for 20 years, commencing as District Manager in the field with franchisees. He progressed through various operational roles, and briefly was also Head of Marketing. In November 2002, Warren was appointed CEO of the organisation.
Dean Pearson is the Head of Industry Economics at NAB and has over 20 years experience in analysing the economy and assessing the implications both in Australia and globally.
Romaniello has more than 25 years of experience with top brands in the franchise industry. As Managing Director or Roark Capital Group, Romaniello is actively involved with Roark’s investments in FOCUS Brands, Wingstop, Corner Bakery, McAlister’s and Arby’s.
The FCA gratefully acknowledges support from the following sponsors:
Warren is a member of the Board of Directors for the Australian Association of Convenience Stores, and one of three International Directors on the Board of the National Association of Convenience Stores in the US.
Sponsorships an Exhibitor place d s still available . Call 1300 669 030
©reated at+m 50555
Register Now - www.franchise.org.au
Shopping centres | How to...
INTERNAL SHOPPING CENTRE ISSUES
single phase, and no way of installing exhausts, water or a grease trap if those are what your business requires. Make sure you know your exact minimal requirements.
We then must look within a shopping centre to find the best location for your store. The main issues are: 1. Suitable pedestrian traffic depending on whether your business is impulse or destination driven. 2. Precincts are areas of common business types, and you need to ensure you are in a suitable precinct for what you are selling. Obvious zones like food courts and fresh food areas are self-explanatory. 3. Store suitability – making sure the store you lease meets the size you want. It’s no good looking for an 80 sq m store for which your fit out is designed, and signing up to a 50 sq m, or 150 sq m because of the location! 4. Services – check your requirements. Again, there is no benefit if you need three phase power and 150 amps to then find you have 100 amps of
SUMMARY If you are looking to invest in a franchise in a shopping centre, or to renegotiate your existing franchise lease, this is a good time to do it; shopping centre management are keen to keep the centres filled. Understanding what you are looking at in centre sites, demographics and location will help you make an objective decision. F Peter Buckingham is the managing director of Spectrum Analysis Australia, a geodemographic and sales prediction modelling company in Australia. Contact Peter at email@example.com or www.spectrumanalysis.com.au.
Be aware that if you are agreeing to a monthly rental there may be other concessions on offer, such as fit out contributions A D _ F R J E MN O V _ 1 2 . p d f
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Training | How to...
PICTURE LEARNING Corina Vucic explains how continuous education can help in business
CORINA VUVIC 2012 FCA Woman in Franchising (Vic/Tas)
hat is Big Picture Learning? Big Picture Learning is all about lifelong learning and how it applies to running a small business. It requires a level of personal endurance, an appetite to strive for excellence, and the willingness to step outside your comfort zone when leading people and implementing change to achieve the business goals. Big Picture Learning can be achieved by committing to continuously seeking out and utilising every training and learning opportunity that presents itself during the course of your business and personal life.
3 STAR TIPS 1. Accept that we all learn differently. Find out what learning method works for you 2. Constantly seek out informal learning opportunities through your field support manager, attending conferences and meetings, networking with other franchisees and business people. WWW.FRANCHISE.NET.AU
3. Blended learning - classroom, online and on the job - is the best combination for formal learning
GETTING STARTED Making the leap into running your own business and deciding who you are partnering with requires serious consideration of a number of factors. Once you are committed, you have invested your money,
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How to... | Training
the documentation is signed, the business plan is penned, the financial transaction is completed... you are now the proud owner of a business. The first operational task is the commitment, both in time and emotion, to participating in the franchise induction program (FIP) â€“ which is basically learning the operational nuts and bolts of A D _ F R J U S S Ehow P _ the 1 2franchise . p d f business P a g e functions. 1 1 4 / 0 8 / 1 2 , The FIP generally encompasses classroom
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sessions, online learning, on the job training and the opportunity in some systems to be provided a mentor or coach who takes each step with you as you commence the running of the business. Sadly for many franchise systems, FIP is the only structured professional development program upheld in the franchise system. The franchisee completes the program, heads out into their business and the brand provides limited opportunity to learn in a traditional sense. For these systems, time dedicated to learning is not fostered as a priority, training budgets are minimal or non-existent and the expectation that franchisees and their team members invest in programs is talked about with little focus and recognition for those that truly uphold this culture in their business. However, in all systems, the franchisee support manager or field coach has an obligation to motivate the franchisee to learn new practices to grow their business. Franchisee professional development should be added as an action item with all field visits. Forums such as conferences, regional and state 9 : 4 franchisee 1 A M meetings, product launches and supplier held training sessions exist in most
Training | How to...
franchise systems. In many cases, these forums are an operationally driven function and not viewed as a formal learning environment.
ONGOING TRAINING Regardless of what level of training and which method is chosen, the starting point is always the brand’s policy and the procedures that follow. Too often franchisors introduce something new and expect the franchisee to implement it. But the operations manual may not have been updated, or the business practices may not be in sync with the operations manual. Keeping the franchise operations manual in sync with the Franchise Induction Program is mandatory, not a luxury, for franchise systems. Franchisors who strive for excellence in their brands dedicate annual franchisee awards to business partners who invest in developing their team members and who are selecting, grooming and encouraging the next franchisee through the internal career and business pathways. Online and mobile learning environments are being introduced within franchise systems to perhaps overcome the challenges of the traditional geographical environment. Systems are investing in online training modules which enable franchisees to learn new skills, understand new compliance expectations and refresh their skills. Blended learning – a mixture of classroom, online, and on the job is the best combination. Systems should set a strategic plan to maximise this for the franchisee community by keeping the sessions short, sharp and relevant to how the franchisee can improve their business performance. Franchisors need accept A D_ F REC O J to AN _ 1 3that . pwe d fall learn Pa ge 1 differently. Each franchisee will be at a different
Case study: La Porchetta Casual dining restaurant chain La Porchetta has been successful in launching its blended learning environment that benefits franchisees and also key team members. Following the franchisee’s completion of the FIP and using their field reports, the program is able to identify new franchisees who could benefit from further upskilling. It also provides opportunity for supervisors in restaurants, as well as the franchisees, to take part in modern leadership training sessions. These include: • understanding generational management in the workforce • facilitating and understanding of training the leaders of tomorrow • how to motivate their teams • what makes them provide that extra special effort • profiling their behaviours • identifying what they like to do in the workplace. This blended and ‘big picture; approach benefits the franchisees, their teams, and the franchisor.
stage of their business life so franchisors must provide options which are targeted towards groups of franchisees. In some instances it may be networking sessions, it may be time management, it might be mentoring with a fellow colleague. F Corina Vucic, the 2012 FCA Woman in Franchising (Vic/ Tas) is an experienced and highly qualified mentor, trainer and onM(03)9533 0028 or 4 / business 1 2 / 1coach. 2 , Contact 1 1 : Corina 1 4 A email firstname.lastname@example.org
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How to... | Training
Is online training always best for franchisees and their staff? Natalie Brennan considers the issue.
NATTALIE BRENNAN National services and support manager at the Foodco Group
nce upon a time, I stood before a classroom of franchisees and presented lessons using ‘technologies’ that included an overhead projector, a chalkboard and a manually-operated ‘ditto machine’. The system worked at the time and while I’m really not that old, the online learning facilities available to us today weren’t even an option 25 years ago… Nowadays, I don’t even need to be physically present to train a group of franchisees and neither do they for that matter! We can be on opposite ends of the globe and still engage in ‘face-to-face’ learning via Skype and smartphones. Lesson note-taking is virtually irrelevant because franchisees can now download up-to-date information through file-sharing portals like Drop Box and follow step-by-step tutorials using online video sharing. On the surface, it seems online learning tools have made the franchisee training process so much easier today but is this in-fact the case? The answer is both yes and no. Regardless of the learning platform – online or otherwise – the essential key to successful franchisee training is to know your audience. It is imperative that franchisors design training content that is transferable for a transient workforce. Although the average age of an entering franchisee is between 40 and 50 years young, new entrants aged in their 60s are not uncommon in the franchising food
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industry. The new generation of online learning tools can overwhelm older franchisees and others have language barriers to overcome. On the opposite end of the spectrum, on-the-ground staff members are typically tech-savvy teens and 20-somethings who take well to online learning. So the solution to yield optimum learning outcomes across all ages and learning styles is for franchisors to use a combination of both online and offline training platforms.
ONLINE ADVANTAGES Online learning definitely has its advantages. The Foodco online Learning Management System (LMS), which is accessible to all current Muffin Break, Jamaica Blue and Dreamy Donuts franchisees, plays a critical role in the timely delivery of industry updates and initiatives, including: Legislated compulsory learning modules Foodco’s online LMS allows our training team to efficiently communicate with franchisees on important matters such as food safety legislation. Not only does the online facility allow us to update our entire franchisee network in real-time as required, Foodco head office controls the removal of outdated information, reducing the risk of unintentional legal breaches by franchisees. A far better alternative to old school hard-copy
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How to... | Training
1. Skills-based training You can watch a heap of online videos about latte art and know the theory of it inside-out, but until you physically train in the skill, you’re highly unlikely to be a competent latte artist. Online learning activities can only make-up part of the skill based experience.
filing methods, the LMS also serves as a backed-up library of training records for our franchisees to refresh their knowledge at any time and securely store business documentation which must be kept by law.
Regardless of the learning platform – online or otherwise – the essential key to successful franchisee training is to know your audience Communicative learning Foodco’s LMS allows head office and our entire franchisee network two-way communication channels to learn and discuss brand initiatives through online noticeboards and forums. Again, this provides for realtime updates and eliminates the need for snail-mail which is far more likely to be misplaced.
ALTERNATIVE TRAINING OPTIONS cannot F R 0 7 1 3 _ 0 0 0Learning _ T C H outcomes 1 that 2 0 1 3 - 0be 6 achieved - 1 3 T 1through 4 : 2 6 online training include:
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2. Interpretative skills People are unpredictable and in dealing with any type of customer service, the theory can be studied online but a thorough understanding of human body language can only be conquered through practical experience. Knowing how to interpret and react to customers’ emotions cannot truly be grasped by watching a video. Foodco dedicates a substantial amount of face-to-face training time with new as well as existing franchisees but with a network of more than 3,000 staff in-stores, we simply could not implement successful training programs without online learning. Online learning is an invaluable tool for theorybased learning but it is not enough in isolation. With all skill-based learning, which is what hospitality and retail is really all about, excellence can only be achieved by practice and no amount of online train: 0ing, 0 +chalk 1 0 :or0talk 0 will ever match the optimal results of actually “doing it.” F
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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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All images: Thinkstock
How to... | Communications
YOUR FRANCHISOR THE
DIGITAL FUTURE Will you be getting the best from your franchisor when it comes to communications? Todayâ€™s highly digitised environment brings a different perspective to the landscape writes Anders Sorman-Nilsson.
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Communications | How to...
n a world of transparency, online education, digital due diligence, and sophisticated knowledge sharing platforms, franchisees who represent franchisor parent brands have the right to demand the best in both digital and analogue communications. In fact, franchisees have permission to be high maintenance. Digital disruption gives you permission to ask more of franchisors.
WHAT IS DIGITAL DISRUPTION? Digital disruption represents a democratising force that has the potential to reshape the power relationship between franchisor and franchisee. So what is digital disruption? It is the change brought about by the fact that everything that can be digitised will be digitised. It is the change felt by players like Kodak, Borders, Blockbusters, and Angus & Robertson, as their services and products are increasingly being shifted from a physical, analogue thing to a digital delivery mode. But in a larger context, digital disruption also represents digital marketing and communication channels, eTailing, and mobile commerce, which are shifting how consumers and customers engage with brands. The question is how turning everything digital will have an impact on franchiseesâ€™ relationships both with their clients, as well as with their franchisors.
ANDERS SORMANNILSSON Futurist, innovation strategist, keynote speaker and author
DIGITAL IMPACT Exactly how digital disruption will impact you as a franchisee will depend on your industry. Some industries - like retail, information and communication technologies, professional services, real estate, food, travel - are already experiencing a dramatic shift, and players in this space have already been digitally displaced. In other industries - pharmaceutical and utilities for instance- digital disruption will take longer to hit, but the impact will still be significant. If you are thinking about investing in a franchise, this time and impact perspective is something you need to bear in mind as you decide on what industry you want to play in. If youâ€™re already the owner of a franchise, you must be thinking about how you can extract more value from your channel communications with both clients and franchisor. For the purpose of this article, let me focus on your franchisor.
DIGITAL MINDS, ANALOGUE HEARTS Franchisors ought to realise that the future of communications is neither purely digital, nor is it purely analogue. In other words, traditional communications like snail mail, printed manuals and physical conferences cannot continue to be the predominant mode of communications. They will WWW.FRANCHISE.NET.AU
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How to... | Communications
increasingly need to blend with digital communication forms that are more high tech – web conferences, telepresence, digital tutorials, digital knowledge sharing between franchisees, FAQs, and online portals for franchisee support. The future of communications by franchisors is digilogue - franchisors must provide increasing informational value to franchisees’ increasingly digitised, rational minds, while still connecting experiential value to franchisees’ enduringly analogue, emotional hearts. For example, any system, whether its McDonald’s, Gloria Jeans, Action Coach or Bendigo Bank, must in the future go digilogue to ensure they win the digital minds and analogue hearts of tomorrow’s franchisees.
DIGILOGUE MIX The digilogue mix could look something like this: 1. World Class analogue conferences (using techology, entertainment and design) featuring international keynotes, and outstanding crowd-sourced, local franchisee talent who display thought leadership, and digitised versions of the conferences which are delivered via online knowledge sharing A D _ F R V I P J A N platforms _ 1 3 . pthat d f provide P a gongoing e 1 digital 1 0 / education 1 2 / 1 2 , and professional development.
2. Digital MBAs which continuously upskill the franchisees in both local and global economies, and share with franchisees how they can win the digital minds and analogue hearts of tomorrow’s customers across a variety of channels 3. Mobile/smart phone friendly platforms and support for franchisees in the field to ensure continuous access to franchisor expertise and real time trouble shooting. 4. Continuous business coaching and analogue support by a franchisor mentor and thought leader who partners face-to-face and interface-tointerface to optimise the franchisee’s possibility for business success. You have the right to demand world class digilogue communications from your franchisor, to ensure they capture your imagination and empower you, in turn, to win the digital minds and analogue hearts of tomorrow’s customer - the ultimate arbiter of your business success. Go digilogue. F Anders Sorman-Nilsson is a global futurist, innovation strategist, keynote speaker at TEDx and author of “Digilogue: 6How : 1to3WinPthe M Digital Minds and Analogue Hearts of Tomorrow’s Customer.” Visit http://digiloguebook.com/
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Advice LEGIT | LEGALISE MADE EASY
caught out by the
renewal process RAYNIA THEODORE Principal, Mason Sier Turnbull
early all franchise agreements are for fixed terms. This common aspect of franchising is often taken for granted and the ramifications of the limited term or terms of the franchise are often overlooked by the excited franchisee going into a new business venture. The renewal of a franchise agreement is not a given. Some franchise agreements only provide for a fixed initial term with no right of renewal. Others provide for a fixed initial term with an option or options to renew. In the case of fixed term franchise agreements with no options to renew, the franchisee will essentially be at the mercy of the franchisor. The franchisor will be under no obligation to renew the franchise agreement. That said, even in the case where the franchisee has an option or options to renew, renewal of the franchise agreement is not guaranteed. Most franchise agreements specify requirements that the franchisee must meet in order for its franchise agreement to be renewed.
WHAT’S REQUIRED? These requirements include: 1. Exercising the option within a specific timeframe, for example, not earlier than six months before the expiry date and not later than three months before the expiry date. It is important that franchisees note these dates because failure to meet the timeframe specified in the franchise agreement can have fatal consequences – the franchisor may not agree to renew the franchise agreement. 2. Payment of a renewal fee. A renewal fee is usually less than the initial franchise fee paid when the franchise agreement was entered into however it can be as much as the original franchise fee, it may even be more – it may be the franchisor’s franchise fee payable by new franchisees at the time of renewal. Franchisees should budget for this payment from the outset. 3. Possible refurbishment. If the franchise is a retail franchise conducted from static premises the franchisee may be required to refurbish the premises at his or her own cost. Again, franchisees should budget for these financial outlays from the outset and also review the premises lease to determine the frequency of refurbishments that may be required by the landlord. 4. The remedy of any breaches of the franchise agreement, including paying any moneys owed to the franchisor and creditors. 5. Signing a new franchise agreement. In many cases the franchisee is required to sign the franchisor’s franchise agreement current at the time of the
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Advice LEGALISE MADE EASY | LEGIT renewal. This agreement may contain different terms, including different financial terms. If the financial terms of the new franchise agreement are more onerous, the business may be less profitable and worth less if the franchisee wants to sell. If the above requirements are not met then the franchisor will not be obliged to renew the franchise agreement.
NOTIFICATION For any new franchise agreements, and those signed since 1 July 2010, that are for longer than a six month term, franchisors are required [under the Code] to inform a franchisee whether or not they will renew the franchise agreement or enter into a new franchise agreement. This notification must be given at least six months before the end of term of the franchise agreement. If the franchise agreement is for a term of less than six months, the notice period is reduced to one month before the end of the term. InDorder forL aEfranchisor A _ FR WJ A N _ to 1 renew 3 . p ad franchise f Pa ge 1 agreement, the franchisor must provide the franchisee
with the current disclosure document, a copy of the Code and the franchise agreement in the form in which it is to be executed at least 14 days prior to the renewal or extension of the franchise agreement.
Franchisees should not leave the renewal process to the last minute This may be too late for a franchisee to conduct due diligence in order to make a reasonably informed decision on whether or not to renew or extend the franchise agreement. Where a franchisee has an option to renew a franchise agreement it will most certainly be well outside the time period within which the franchisee must exercise its option to renew. What happens when a franchisee does not have an option to renew but the franchisor has advised the 1 2franchisee / 1 2 / 1that 2 , it intends 1 1 : 1to6renew A Mor grant a new franchise agreement? Âť
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SEP/OCT 2013 FRANCHISING | 117
Advice LEGIT | LEGALISE MADE EASY It is important that the franchisee obtains the franchisor’s disclosure document at the same time so they can properly consider whether to renew or enter into a new franchise agreement. Receiving the disclosure document only 14 days before the commencement date of the renewed term or new term will again be too late.
them carefully, in particular, the terms of the franchise agreement to ascertain whether any of the terms of the franchise agreement have changed. Where the franchisee has an option to renew the franchise agreement the franchisee should also seek legal advice as to whether the franchisor can change any of the terms of the franchise agreement and require the franchisee to enter into a new form of franchise agreement or whether the franchisor must renew the franchise agreement on the same terms. 5. Franchisees should not leave the renewal process to the last minute and should start discussions with the franchisor early. If the discussions start early the decision to renew or not renew can be made well before the expiry date of the franchise agreement and avoid the uncertainty and lack of security created for both parties when a franchise agreement expires with no agreement having been reached.
POINTS TO REMEMBER
HOW TO SOLVE THESE PROBLEMS What can franchisees do to overcome some of the problems set out above? 1. Attempt to negotiate a longer term franchise agreement (i.e. much longer than the franchisee may reasonably expect to run the business to allow a sufficiently long residue to make the business more saleable. 2. Attempt to negotiate options to renew the franchise agreement. 3. Take a note of option dates to minimise the risk that the date may be missed and any right to renew lost. 4. Request a copy of the franchisor’s current disclosure document and franchise agreement when considering whether or not to exercise an option to renew or when advised by the franchisor that the franchisor proposes to renew the franchise agreement or grant a new agreement to the franchisee. Under the Code franchisees have the right to request a copy of the franchisor’s current disclosure document once in a 12 month period and franchisors are obliged to provide a current disclosure document within 14 days of a request being made by a franchisee. The disclosure document should attach the franchisor’s current franchise agreement. Once the disclosure document and franchise agreement are received the franchisee should examine 118| FRANCHISING SEP/OCT 2013
Franchisees must always remember: • they do not own the brand and systems – they are only given permission to use the brand and systems in accordance with the terms of the franchise agreement for a period of time – either an initial term or an initial term with a prospect of renewal for a further term or series of further terms; • were it not for the franchise agreement, they would not be allowed to use the brand and systems; and • when the franchise agreement comes to an end, they can no longer use the brand and the systems. Situations can arise where a franchisee, through hard work, effect and toil, can build up a business
The renewal of a franchise agreement is not a given worth many times the initial outlay, only to face the possibility of that value evaporating when the franchise agreement comes to an end and is not renewed. At that point, the franchisee’s only assets are the tangible assets used in the business, such as plant and equipment. It is important franchisees seek appropriate legal advice to ensure they are aware of their rights and accounting advice to ensure the duration of the franchise agreement gives them sufficient time to make a return on their investment. F
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Opinion THE SKETCH | TRENDS AND DEVELOPMENT
Life’s certainties: death and taxes
ANDREW TERRY Professor of Business Regulation in the University of Sydney Business School
t was Benjamin Franklin who suggested almost 300 years ago that “nothing can be said to be certain except death and taxes”. Little has changed. Death and taxes are still certain but not much else is. We live with uncertainty — in our own lives, in our relationships, in our work — and must accommodate it. So must business of course. Uncertainty comes in all shapes and sizes. We have recently experienced our three yearly dose of federal election uncertainty. Conventional wisdom suggests that consumer sentiment and business confidence are weaker before a federal election. Prior to Prime Minister Rudd announcing the 7 September election date the proposition that poll uncertainty was hurting business frequently featured in newspaper headlines: “Election uncertainty is ‘sabotaging jobs and investment’ says business” declared The Australian on 1 July. Virgin’s significant profit downgrade was blamed by CEO John Borghetti, at least in part, on the “uncertain political environment that has been dogging consumer and investor confidence”. A scan of the newspapers since the election announcement suggests that a growing number of CEOs hope the “ending of the political uncertainty with the federal election will encourage consumers to open their wallets”. (“Jetstar chief hope for take-off after election” The Australian 8 August).
BUSINESS WANTS CERTAINTY Image: Thinkstock
There are a number of reasons for the weaker consumer and business confidence – some real and, no doubt, some imagined – but underlying uncertainty as to economic and regulatory changes that a new government, or even a re-elected old government, may introduce is the major concern.
Regulatory changes is not a real concern for the franchising sector Business dislikes uncertainty. In theory there should be no surprises – the election campaign provides the opportunity for the major parties to relentlessly bombard us with their policy platforms as well as informing us of the limitations of their opponent’s policies. Sadly we cannot always rely on 120| FRANCHISING SEP/OCT 2013
this advertising. Politicians, unlike franchisors, are not subject to the misleading conduct and false advertising provisions of the Australian Consumer Law! Consumers also dislike uncertainty and while life goes on for them – buying the groceries, paying the rent, clothing the children – bigger decisions such as buying or selling a house or taking a holiday may be put off until the election uncertainty clears and the incoming government’s economic program is clarified.
NO WORRIES ABOUT FRANCHISE REGULATION The franchising sector is of course part of the real world and is not immune to the realities of poll uncertainty and change of government. But one of the real concerns for business generally – regulatory change following a change of government – is not a real concern for the franchising sector. Although it would be foolish to add the Franchising Code of Conduct to death and taxes as the only certainties, all major parties acknowledge the significant role of franchising in the economy and its contribution to viable and effective SME development. Franchising has repeatedly established its credentials as a business entry and expansion strategy and there is strong bipartisan support for the Franchising Code of Conduct – the regulatory instrument that controls the sector and provides some confidence to prospective franchisees. It was originally introduced by the Coalition but has been embraced by Labor. Both parties have instigated comprehensive reviews and the recommendations have generally had broad bipartisan support. The Rudd Government had broadly accepted the recommendations of the Wein Review and it would be surprising if these were not legislated by whatever government is in power. The recommendation that there be no further review of the Code for five years will hold irrespective of the colour of the new government.
DO DUE DILIGENCE In the August issue of Choice magazine in an item on franchising FCA deputy chair Stephen Giles recommends potential franchisees talk to as many existing and former franchisees as they can and get good legal advice. Giles’ claim that “Almost 100 percent of franchisees don’t seek legal advice before going into an agreement” is of course a very worrying statistic. There are many reasons for a prospective franchisee not to acquire a franchise which educated and informed due diligence should disclose but regulatory uncertainty is not high on this list. F
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Opinion PEOPLE | LEADERSHIP
The passion paradox
KARLI FURMAGE CEO of The Franchise Relationships Institute, a research and training organisation that has been helping franchisors and franchisees create profitable partnerships for 24 years
HARNESSING THE PASSION Same with buying a franchise. Choosing a franchise just because you are passionate about the product will cloud your ability to make an informed business decision. You’ll be making a choice based on emotion because you love, love, love it! And this my friends is the Passion Paradox. How do you balance the necessary zeal for the brand and business, with the cold hard reality needed to make good business decisions? The word passion is from the Latin verb meaning to suffer and this is the paradox – harnessing your passion for good and not letting it cloud your judgement for evil. Franchisees accept there will be some short-term discomfort because they are hopeful that a certain outcome will be achieved. This is passion for good. Passion for evil is where we (and those around us) really suffer because our emotions are left unchecked and our logic suffers. When emotion goes up, logic goes down. When you are starting out, your spark plugs will be going a million miles an hour. You will be pumped and excited, but it can all clog up very easily. Here are some thought starters to help you harness your passion for good: • Be clear on what are you truly passionate about and do it • Be the passion leader • Know when you are passionate for the wrong reasons • Be aware of the issues that press your ‘passion for evil button’ - what can you do to approach these situations with a calm and level head so you don’t over react? As a franchisee there is a lot to be passionate about. Your products or services, your team, the leadership of your franchisor, owning your own business. All great fuel for your fire. The secret to being an excellent franchisee is to make sure your passion is used to constructively motivate and inspire you. F
Choosing a franchise just because you are passionate about the product will cloud your ability to make an informed business decision 122| FRANCHISING SEP/OCT 2013
assion is that intense feeling we have about something. Passion fuels our desire, our excitement and our enthusiasm. Passion is our hope and belief in an outcome. We live off, and live for, passion. We need it. It is our spark plug. It ignites the fuel that drives our performance and to be bigger and better versions of ourselves. Our spark plug passion ignites our fuel of emotions, such as happiness, wonder and curiosity, courage to try something new, quiet pride in a job well done and appreciation for others. To be a great franchisee you need passion for the products or services you will sell and for running a business. Your belief in what being a franchisee will do for you, will help you deal with the rollercoaster of challenges you will face. Your passion will fuel your long-term goals, your willingness to take on the responsibilities of being a franchisee and your ability to run a business. Brand passion refers to the pride and belief you (as a franchisee) have in a brand and how this impacts on the way you will engage with the franchise system’s values and culture. Our research at the Franchise Relationships Institute, on thousands of franchisees, shows that brand passion will have a direct link to your financial achievement, what your customers experience and how constructively you participate in the franchise system. You might choose a franchise because you are passionate about the product, but this may blind you to the realities of running a business. You wouldn’t buy a car simply because you like the colour, right? You’d look under the bonnet, kick the tyres, take it for a test drive, shop around and ask for opinions from those you trust.
Imagine working your own hours in your own successful business? That’s the life of a Swimart Franchisee “Swimming Pools have given me a lot in life… and they could give you a lot too!” Susie O’Neill – Mother and former Olympic and World Champion
If you’re tired of working long hours on the tools or in an ofﬁce for someone else why not build your own successful retail & service business working on pools...with a Swimart Pool & Spa Services franchise. Swimart Pool & Spa Services are the premium operators in the pool & spa industry with more than 25 years industry experience & over 67 stores across Australia & New Zealand. We provide all the needs of pool & spa owners from spare parts & accessories to new ﬁltration equipment & total pool & spa maintenance. As a Swimart franchisee you’ll beneﬁt from our comprehensive training programs, exclusive range of quality products, high consumer brand awareness & successful marketing strategies as well as professional business & technical support from the best in the business. Our franchise system provides the tools for you to build a high turnover & highly proﬁtable lifestyle business in which boredom doesn’t exist! So, if you love the outdoors & have a passion for customer service why not speak to Swimart now & ﬁnd out how a Swimart Pool & Spa Services franchise could help secure your family’s future.
Call Chris Fitzmaurice on
02 9898 8608 swimartfranchise.com.au Phone
Opinion VIEWPOINT | IN MY SECTOR...
Our ageing community needs better care
TRISH NOAKES Founder and CEO of home service provider Just Better Care
“Caring for Older Australians” recommended giving control of aged care packages to individuals – this has not happened. “The Government has gone part-way with the move to consumer directed care but the reality is quotas are still in place for packages. Many people are still not having their needs met, and waiting lists still exist.”
Many people are still not having their needs met, and waiting lists still exist FAST FACTS Statistics on the predicted state of Australia’s ageing population by 2050: • People aged 70 years and over will represent 17.3 percent of the population – nearly one in five (it is about 10 percent today) or 6.3 million people.* • Five percent of the population – or 1.8 million people will be aged 85 years or more – an increase from 1.6 percent of the population today.* • Healthcare and aged related expenditure combined will consume 40 percent of total government outlays.* • On current models of service, the industry will need four times as many staff to meet expected demand.* • Without a medical breakthrough, the number of people with dementia is expected to be almost 900,000, compared to 320,000 today.** There are a number of other issues Noakes believes the Government should address. These include: • Ensuring adequate funding of the DisabilityCare scheme including market pay rates for carers. • Including people over 65 years who acquire a disability in the DisabilityCare scheme. • Introducing initiatives to ensure young people with disabilities do not live in aged care facilities. • Increasing funding for staff training in aged care and recruiting additional males and carers for NESB people. F *Preparing for a Better Future- Creating a Sustainable Future of Aged Care Services for Australia – Business Council of Australia - Dec 2011 **Alzheimers Australia
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rish Noakes believes the Government needs to urgently establish a plan outlining how it will funnel more money into aged care. “The bottom line is we do not have the beds, the staff or the health facilities to cope with the tsunami of people requiring aged care over the next decade and beyond,” she says. Noakes stresses the recent funding increase is simply not enough, and securing additional financial resources is a matter of urgency. “This is an issue that affects each and every one of us in Australia and as others have said the recent funding increase for aged care ‘barely scrapes the bottom of the barrel’. “We need more funding – should it be another increase to the Medicare levy? – an urgent plan is needed and given the nation’s finances are currently under scrutiny – now is the time.” Pre-election both Kevin Rudd and Tony Abbott proposed plans to improve aged care, with Rudd announcing a commitment to improving the industrial situation for workers in aged care and Abbott promising to cut red tape. “These are both great initiatives but the reality is the system is failing on a much broader scale. “The 2011 Productivity Commission report
Glossary HELP GUIDE | KEY TERMS
Disclosure Document: this document provides information about a franchise system, the franchisor and the franchised business. It must be supplied to a prospective franchisee, in accordance with the Franchising Code of Conduct. Due diligence: a thorough examination of the franchise business before purchase. Franchise: a business model with four criteria: a franchise agreement, a trademark or symbol, payment of a fee, and a system or marketing plan. A franchise business falls under the jurisdiction of the Franchising Code of Conduct and franchisors have certain obligations to fulfil. Franchise agreement: the business contract between the franchisor and franchisee. Franchisee: an individual who runs the franchised business using the intellectual property of the franchisor. Franchise fee: this is an up-front cost paid to the franchisor and covers the use of the brand name and operating system required to operate the business. Franchisor: grants permission to the franchisee to conduct business using its intellectual property; brand name, methods of operation and marketing. Franchise term: this is the period granted for trading under the franchise agreement. Most franchise terms are on a renewable three or five year term but they can vary from one year to perpetuity. Greenfield site: a brand new site.
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License: the right to use intellectual property in business, such as sales rights in a territory, manufacturing technology or access to a trademark. A license is not the same as a franchise. Local area marketing: [LAM] this is marketing the franchisee is responsible for conducting in the franchise territory or designated marketing area. Marketing and advertising levy: a regular flat or percentage based fee paid into a centralised advertising or marketing fund. Master franchisee: a franchisee who is responsible for a large territory, appointing other franchisees within the territory with direct agreements, and ensuring that the franchisorâ€™s systems and methods are applied. Multi-unit franchisee: a franchisee granted the rights to operate more than one franchise outlet. Not every franchise system allows for franchisees to be multiple operators. Operations manual: the franchiseeâ€™s guide to operating the franchise business. The franchisor may produce several manuals for different areas of the business, and should regularly update the information. Regional franchisee: similar to master franchisees, regional franchisees operate a large territory and appoints franchisees within the area. Renewal: once a franchise term nears its end, franchisees may or may not be given a right to renew their agreement for a further term. This process is bound by the Franchising Code of Conduct and there is no automatic right of renewal.
Royalty: fee paid by the franchisee to the franchisor for the ongoing use of the brand and systems, management and technical support. It may be a flat fee or a percentage of sales or profit. Termination: the ending of the franchise contract between franchisee and franchisor, usually for breach of contract. Some franchise agreements allow the franchisor to terminate the agreement even if the franchisee has not breached the agreement. The Franchising Code of Conduct: a mandatory Code that governs franchising in Australia and is designed to guide the behaviour of franchisors and provide certain protections to franchisees. It is administered through the Australian Competition and Consumer Commission (ACCC). Total investment: the total amount of money a franchisee requires to set up in business. This includes the franchise fee, working capital and any equipment purchases required. Turnkey franchise: a franchise package that includes all the equipment, information and systems required for a franchisee to open up the business and start trading. Working capital: the funds required by any business to pay its costs before it starts making a profit, and as ongoing cash flow to counter any dips in business activity.
Plan your success. Design your lifestyle. A Kwik Kopy franchise lets you experience the best of both worlds, financial success and quality of life. Kwik Kopy offers graphic design, printing and marketing services to the business sector. Be part of a creative process that delivers: • Marketing brochure design and production • Branding and logo development • Direct mail campaigns • Email marketing and website development, to name but a few. Kwik Kopy franchisees handle a broad range of jobs every day, in fact that’s what makes a Kwik Kopy franchise so exciting. But you DON’T require any print or design experience to take on a Kwik Kopy franchise.
With Kwik Kopy you get a tried and tested system that removes the usual start up headaches and helps you establish your business sooner. As part of the Kwik Kopy network, you tap into a highly established and recognised brand, giving you plenty of leverage in the market. What’s more you’ll have an extensive support network all focused on your success.
For more information about our award winning franchise model call 1800 251 680 or visit kwikkopy.com.au/franchise to view Kwik Kopy franchise videos and download a franchise information kit.
Why choose Kwik Kopy: • Brand strength and ongoing marketing solutions • Area sales support • IT support • B2B model • Sales focus • Regular working hours Mon-Fri • Comprehensive training • Award winning franchise model
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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
What are the franchisee and franchisor obligations?
2. Have you seen a disclosure document?
What training is available and who pays for it?
3. Have you evaluated the financial returns?
13. Who owns the intellectual property and what is licensed to the franchisee?
4. Do you know all the expenses franchisees are required to pay?
14. What marketing will the franchisor implement?
5. Have you worked out your operating costs?
15. Who pays for the marketing? What is the dispute resolution process?
6. Do you know the term of the agreement? 7. Is the business operating from fixed or mobile premises?
17. Do you know what it is like to be a franchisee?
8. Are you working within a territory? If so, is the area exclusive?
Can you assign the franchised business?
Are you restricted in your product purchase?
How can the franchisor or franchisee terminate the Franchise Agreement?
10. Are you required to reach a minimum performance level? Pa ge
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SEP/OCT 2013 FRANCHISING | 129
[with thanks to Mason Sier Turnbull]
Searching for a particular franchise? Use this showcase of franchise systems to find out some key details about the business opportunities available, all in alphabetical order for easy referencing
Phone: 1300 287 669 Fax: 1300 795 287 Contact: Steve Wren Email: firstname.lastname@example.org Website: www.appliancetaggingservices.com.au
Phone: 0404 824 085 Contact: Andrew Wilcox Email: Andrew@5dogs.com.au Website: www.5dogs.com.au Start up costs from: $150 - 250K
Start up costs from: $47,000 + GST
PROFILE: The Fast Food Revolution! 5 Dogs are offering an exciting business opportunity for motivated and food loving individuals with all the training, tools, marketing and support necessary to run a successful franchise. 5 Dogs uses local and Australian made products. Our 5 Dogs gourmet hotdogs are full of flavour, incorporating fresh ingredients and great quality meat. There are vegan options available as well as the gluten and dairy intolerant being catered for. With this high quality product and our brand culture, 5 Dogs has hit cult status as we see with our regulars, interstate regulars and international regulars. With low running costs, a 5 Dogs franchise can operate in small or large areas. No experience necessary. All we require is a love of food, joyous customer service and passion for Hot Dogs!
PROFILE: 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 36 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.
Phone: 08 9306 5588 Fax: 08 9306 5522 Contact: Lloyd Gaunt Email: email@example.com Website: www.aussieoutdoor.com.au
Phone: 03 8878 1111 Fax: 03 8878 1145 Contact: Neville Bruns Email: firstname.lastname@example.org Website: www.autobarn.com.au
Start up costs from: $220,000 - $240,000
Start up costs from: $350,000 - $450,000 + stock
PROFILE: Established in 2004, Aussie Outdoor has become the biggest and the best outdoor blind franchise with 14 outlets and a goal of 20 by 2015. Offering exclusive patented products to the market Aussie Outdoor franchisee’s and team members pride themselves on providing quality products and services with honesty and integrity at all times. Becoming an Aussie Outdoor franchisee is enjoyable and financially rewarding. No experience is necessary as full training and ongoing support is provided. Your business will be fully systemised making it easy for you and others to operate. Aussie Outdoor is not just a franchise it is a lifestyle
PROFILE: Established in 1985, Autobarn has a network of 104 stores Nationwide which makes it the largest independently owned automotive parts and accessories retailer in Australia. The business has an enviable track record of success and growth with some stores in the group having traded for over 20 years. The longevity of the business, combined with consistent, high quality marketing activity, means that the brand has become iconic in the Australian market and enjoys enormous consumer goodwill and recognition. Autobarn represents the retail consumer brand within the Automotive Brands Group (ABG), which also includes the trade based Autopro and Carparts groups. Combined ABG represents over 250 outlets, giving ABG considerable buying power, the ability to have ABG exclusive products, substantial management resources and significant marketing and advertising strength.
Phone: 07 33731760 Phone: 07 3373 1760 Fax:Fax: 07 3373 17701770 07 3373 Contact: James Taylor Contact: John Pascoe Email: email@example.com Email: firstname.lastname@example.org Web: www.batteryworld.com.au/franchising Website: www.batteryworld.com.au/franchising Start up costs from: To open up a new store will costStart in the of $200,000 to+$250,000+GST upvicinity costs from: $250,000 GST
Phone: 0417 077 633 Contact: Michael Payne Email: email@example.com Website: www.baskinrobbins.com.au Start up costs from: $190,000
PROFILE: Baskin-Robbins® is the world’s largest chain of ice cream specialty stores, renowned for high quality, premium ice cream, specialty frozen desserts and beverages with nearly 7,000 restaurants around the globe. Baskin-Robbins® is an exciting “Family” brand featuring the most unique, innovative and indulgent products available. Baskin-Robbins® is looking for outstanding, motivated individuals seeking a fun and rewarding business; as we believe that people are the most important ingredient in making an enterprise successful. We have flexible fit-out concepts – to suit Iconic Locations through to existing businesses wanting to create a second income stream with a truly international brand name.
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PROFILE: PROFILE: Love retailing? Likebattery helpingretailer people? Australia’s leading Battery World is offering qualified individuals a unique Battery World Franchisees are uniquely placed to be useful to almost everyone. retail opportunity with a great growth potential. Battery World stores carry batteries for everything from mobile phones and lap tops Battery World stores carry batteries for everything from mobile phones and laptops to to vehicles and boats. With over 78 stores throughout Australia we are the largest and vehicles and boats. With 79 stores throughout Australia thenetwork largest and most most comprehensive battery retail franchise network andwe theare only focused comprehensive retailcategory. franchise network focused on the battery category. solely on the battery wan to If you want toinvest investyour yourtime timeand andmoney moneyininaapowerful powerfulfranchise, franchise,Battery BatteryWorld Worldoffers offersa aunique uniqueopportunity opportunitytototop tapinto intoananevery-growing ever-growing market. market. A A select select number number of of franchises franchises are are currently currently available available throughout throughout Australia Australia for for motivated motivated individuals individuals with with strong strong communication communication skills skills and and aa background background in in customer customer service. service. Australia’s leading battery retailer Battery World is offering qualified individuals a unique For further information, contact Battery World on 07 3373 1760 or visit retail opportunity with a great growth potential. www.batteryworld.com.au/franchising For further information about Battery World visit www.batteryworld.com.au/franchising .
To be part of the A-Z listings: Contact David Strong: E: firstname.lastname@example.org P: 02 8484 0905 M: 0411 366 656
Phone: 1300 131 664 Fax: 0294502844 Contact: Diana Wilson – Franchise Manager Email: email@example.com Website: www.bebrite.com.au www.cleaningfranchises.com.au Start up costs from: $11,111+ Equip, Training & Marketing PROFILE: Time for a change? Time for security? Time for a work life balance? Time for a good income? Time for a good investment? Isn’t it time you called Bebrite? Bebrite presents an opportunity for a Residential/Commercial and Carpet cleaning franchise at a low entry. With 17 years experience in the business, Bebrite provides the perfect business model for successful single operators or couples. Advantages include generous guaranteed incomes, flat monthly fees, no territories, constant demand, prominent internet presence, and continued growth. Operates in NSW, ACT and QLD. A sustainable business opportunity you can trust, call now - 1300131664
Phone: 1800 634 227 / 0418 500 721 Contact: Andrew Email: firstname.lastname@example.org Website: www.briantracytraining.com.au Start up costs from: $79,950 + GST 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.
Phone: +65 6222 6863/+61 0 4 11 265441 Fax: +65 6222 7069 Contact: Dennis Delaney Email: email@example.com Website: www.brotzeit.co
Phone: 02 9451 3260 OR 1300 CAFE2U Fax: 02 9451 2105 Contact: John Stanton Email: firstname.lastname@example.org Website: www.cafe2u.com
Start up costs from: US$650,000
Start up costs from: $129,600 + GST
PROFILE: Brotzeit® is a typical Bavarian expression - “Brot” being German for bread and “Zeit” for time, referring to a cosy meal complemented by fresh beer. Brotzeit® is the world’s leading franchised German concept casual dining restaurant, serving authentic German cuisine and premium quality beer imported directly from Munich, in a chic and modern environment. With an expanding regional presence in Singapore, Malaysia, Vietnam, Philippines, Thailand, Hong Kong and China, the company is looking for interested area franchise partners for Australia.
PROFILE: Australian owned Cafe2U is the world’s largest mobile coffee company with over 140 franchises in Australia and 200 worldwide. The business is rapidly expanding due to a simple and proven business model. Cafe2U now includes the unique “Acceleration Package”, designed to create success and profitability sooner. This includes a four week training programme, a personal franchisee coach, revenue guarantee and an initial marketing campaign. Offering a full time events coordinator and strong marketing support, Cafe2U offers a great opportunity for new business owners who are looking to make the most of the added lifestyle benefits. Contact Cafe2U now should you wish to make the change.
Phone: 0421 048 716 Fax: 08 6162 8820 Contact: Carrick Robinson – Managing Director Email: email@example.com Website: www.cappuccinoxpress.com.au
Phone: 1300 300 480 Fax: 02 9956 7789 Contact: Richard Stewart Email: firstname.lastname@example.org Website: www.combined.com.au
Start up costs from: $100,0000 + GST
Start up costs from: $150
PROFILE: Take advantage of the booming coffee market! Founded in 2004, Cappuccino Xpress is now a 43 Franchisee operation with mobile cafes in Western Australia, Queensland and Victoria, all supported by exceptional State Franchisors providing extensive business, product and marketing support.
PROFILE: Combined Insurance is a leader in accident and sickness insurance.
We are passionate about bringing our unique, freshly made coffee experience to workplaces, functions and the events market. Our proven system is delivering impressive business benefits to our Franchisees and our brand profile continues to attract interest.
We take pride in providing insurance plans that are clearly written and easy to understand.
We have ambitious plans to expand our Australian footprint and to take our expertise overseas. Call us today.
Our Authorised Representatives focus on working with our customers to gain an understanding of their requirements and assist in identifying their specific needs, then offering them a number of coverage options at a good value.
Established in 1922, Combined Insurance is part of the ACE Group of Companies®, one of the leading global providers of insurance and reinsurance. We are a signatory to the General Insurance Code of Practice.
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A-Z listings Phone: 03 8645 5500 Fax: 03 8645 5555 Contact: Andrew Murdoch Email: email@example.com Website: www.cosmos21.com.au
Phone: 1300 PLEASE (1300 753 273) Email: firstname.lastname@example.org Website: www.couriersplease.com.au Start up costs from: $25,000
PROFILE: The COSMOS 21+ Group is a provider of innovative leading-edge information technology products and associated services, with particular emphasis to the hospitality and retail food sector. Products and services offered by the COSMOS 21+ Group are ‘best-in-field’ and include BrandM8 (a Food Safety and Checklist Management System for mobile devices), Mobo2go (a POS independent mobile and web-based ordering platform for hospitality and retail food outlets), and Book-keeping Services (a comprehensive book-keeping/administrative and financial reporting service). With a client base including many of Australia’s leading retail brands the COSMOS 21+ Group is truly a market leader in providing end to end information technology services.
PROFILE: CouriersPlease is Australia’s leading express parcel delivery business offering nationwide service. With over 550 CouriersPlease franchises nationally using our industry leading EzyTechnology™, allowing the CouriersPlease Team to provide unmatched quality service for small parcel distribution requirements, to our 40,000 customers sending over 10 million parcels per annum. Business continues to grow due to CouriersPlease’ customer valued operations service combined with our successful business model of “working for yourself, but not by yourself”. CouriersPlease franchise opportunities are available nationwide, so if you have the DRIVE attitude contact your local CouriersPlease branch today!
Phone: 07 3633 3318 Fax: 07 3633 3399 Contact: Anna Davis Email: email@example.com Website: www.dominos.com.au/franchising
Phone: 02 7900 6389 / 0459 360 867 Contact: Remo Stander Email: firstname.lastname@example.org Website: www.cravefroyo.com.au/franchising Start up costs from: Below $249,000
Start up costs from: $100,000 PROFILE: The Frozen Yogurt boom is well underway and CRAVE frozen yogurt is one of the fastest growing franchises of it’s kind in the world - Don’t miss this opportunity! • Complete Turn-Key Investment, saving you Time and Money • The Lowest Franchise Fee on the market (6%) • Compact, Intelligent Design that can fit anywhere. • Brilliant colour scheme and branding that people remember - What Do You Crave? • Exclusive rights to the Elvaria 7-Handle Machine, so you get 3 times the flavours your competitors have in the same sized footprint. • Self-Serve Business model which means lower overheads and simpler operations. • Premium, Healthy, Creamy Italian Frozen Yogurt. Nobody can match Crave.
PROFILE: At Domino’s we see ourselves as the Pizza Experts, and focus all our energy and passion into making and delivering the hottest, freshest and tastiest pizzas. As a New Franchisee, you are about to embark on a journey to become a Pizza Professional. We are the market leaders in most neighbourhoods and we need to continue to rise to the occasion of exceeding our customers expectations. If you think you’ve got what it takes, contact us today for more details about becoming part our family.
Find out why Crave has grown from 0 to 7 sites in under 10wks.
Phone: 07 5591 3242 Fax: 07 5591 9021 Contact: Michelle Connor Email: email@example.com Website: esquirescoffee.com.au
Phone: 03 9092 6699 Contact: Biljana Stephens Email: firstname.lastname@example.org Website: www.exa.com.au Start up costs from: $50,000 inclusive
Start up costs from: $200,000 - $550,000 PROFILE: A highly recognisable international brand, Esquires Coffee has begun building a strong footprint in Australia because of its consistently great espresso and freshly made in store food menu. An advocate of organic products, fair-trade practices, and great service, Esquires offers customers a socially responsible choice for their favourite drinks and food. Today, there are more than 44 Esquires outlets across Australia and New Zealand, including two drive-thru outlets. Esquires Coffee offers a range of formats – ‘hole in the wall’, coffee cart, small kiosk, large inline café and drive thru (drive thru also offers a comfy seating and dine in component).
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PROFILE: Exa is Australia’s biggest digital solutions agency, with 290 highly qualified full-time employees and over 1900 clients in our portfolio. We provide end-to-end digital solutions, spanning from custom websites, eCommerce and microsites, through to mobile applications, social media and internal business systems. With high earnings potential in a dynamic and growing industry, this is a truly unique and lucrative opportunity to have your own business with the backing of Australia’s biggest digital solutions agency.
A-Z listings Phone: 1300 FASTWAY Fax: 02 9264 4966 Website: fastway.com.au
Phone: 02 9969 2154 Fax: 02 9960 1041 Contact: Gary Blyton Email: email@example.com Website: www.extremepita.com.au
Start up costs from: $25,000
Start up costs from: $250,000 - $350,000 PROFILE: So you want to be a Purveyor of the Pita? Well, you’ve come to the right place. You can rest easy knowing this is a business with staying power. It’s all about the bread! We roll it, we eat it, we earn it. And we’re successful at it. We’ve got over 225 locations throughout Canada and the U.S. with continuous strong growth. Why Extreme Pita? A lot of restaurants out there offer items that are fried within an inch of their lives. Extreme Pita has the right concept at the right time, because more and more consumers are looking for a fresh, fast, healthy alternative. Extreme Pita offers a fantastic range of healthy great tasting food for busy, active individuals and families who want to live life to the fullest.
PROFILE: Run your own rewarding business and take control of your future as a Fastway Courier Franchisee. As a market leader in nationwide courier services, our multi-award winning franchisees enjoy: • Guaranteed income package* • Low start up costs • No weekend work • Ongoing business support & training • Exclusive territories • Perpetual franchise agreement with no ongoing fees No prior business experience is needed, just a great attitude and an ability to talk to people. So, if you’re ready for a positive change, we’d love to hear from you. *Conditions apply
Phone: 0421603342 Contact: David Green Email: firstname.lastname@example.org Website: www.fivehighvending.com.au
Level Melbourne, Victoria Level 5, 8, 530 330 Collins Collins Street, St Melbourne Victoria, 3000, 3000, Australia. Australia Phone: 1300 FRANCHISE Fax: 03 8640 0688 Contact: Kevin Bugeja Email: email@example.com Website: www.franchiseselection.com.au
Start up costs from: $30,000 - $100,000 PROFILE: FiveHigh Vending will source locations for you, provide access to the best buying group in the Industry, and provide you with ongoing technical and business support. With 18 years experience in the Industry FiveHigh Vending Systems is Australia’s largest vending company and works closely with approximately 600 full and part time operators across Australia. Source products from major suppliers such as Schweppes, Coke, Smiths, Snack Brands, Nippys, Frucor and a host of others or tap into our overseas buying group to get the best profit margins in the industry.
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:02 028845 88450100 0100 Phone: Fax:02 028845 88450199 0199 Fax: Contact:Karen KarenPollard Pollard Contact: Email:firstname.lastname@example.org email@example.com Email: Website:www.gelatissimo.com.au www.gelatissimo.com.au Website:
QLD/NT: Murray Kahler - 07 5440 5440 NSW/ACT: Matthew Hope - 02 9453 3844 SA/WA: Dean Lindstrom - 08 8266 6506 VIC/TAS: Ross Morley - 03 9338 5588 Website: www.gjgardner.com.au
Start Startup upcosts costsfrom: from:$350,000 $350,000
Start up costs from: $200,000 - $250,000
PROFILE: PROFILE: Australia’s looking afor outstanding franchisees. Australia’sleading largest gelato franchise is presents unique concept; with over 20 years Gelatissimo, Australia’sisleading gelato franchise is expanding itspassion strong of product development, customer satisfaction and a brand that embodies style Prior food experience not necessary however system franchisees must have brand and is looking for outstanding and sophistication. Our retailing pointfranchise of difference is makingforfulldelivering flavouredquality gelato for the system and brand, leadership skills, andpartners. enthusiasm fresh in-store daily usinggelato a customer system that isfresh simple to run. has an enviable products through excellent service. Our multi award winning is made in store byGelatissimo dedicated Franchisee performance record, with an average store and turnover of $779,000* and recipes. comparative Gelato Artisans, using the finest ingredients authentic Italian family Multi award winning Gelatissimo provides full training and on-going support from store sales growth has averaged a positive 8.29%* over the last two years. dedicated operational, and development them to to Gelatissimo franchiseesmarketing have the benefit of a systemteams that isenabling simple and easy As part of its commitment Gelatissimo charges flat royalty fee produce artisan gelato freshtoinfranchisees, store using a simple proven asystem. run, supported by full training, ongoing support fromand professional operational and instead of teams, a percentage of sales, full training, ongoing support from its marketing extensive brandprovides building activities, product development and operationswith and local marketing team, brand building and local store marketing. assistance store marketing.
PROFILE: GJ Gardner Homes the leading franchised home builder in both Australia and New Zealand, is also experiencing strong growth in the USA. Specialising in taking the smaller builder or a partnership of builder and business person then giving them the tools, software and support to compete in the volume market this successful formula sees thousands of new homes built each year under the GJ banner. The success is built around the combining of the business person/builders ‘local’ contacts, knowledge with the proven GJ Gardner Homes training, support and marketing to take their business to a new level.
*Sales figures based on the last 12 months turnover as at April 2012 inc GST. Increases based on comparative moving annual turnover for the last 48 months.
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A-Z listings Phone: 07 5515 0119 Fax: 07 5500 3716 Contact: Geoff Biddle Email: firstname.lastname@example.org Website: www.groutpro.com.au
Phone: 07 3878 5677 Fax: 07 3878 5066 Website: www.janiking.com.au Start up costs from: $19,000 ex GST
Start up costs from: $29,950 + GST & vehicle PROFILE: Earn between $50 and $200 per hour and get a high return on investment in the booming Home Improvement Industry with LOW SETUP COSTS & little competition. GroutPro specialises in the after-market care of tiles and grout to homeowners and businesses. Offering a range of professional services from stain protection of new tile and grout installations to our flagship grout “colourseal” application which rejuvenates and re-colours old grout saving customers time and money without having to re-tile.
PROFILE: Jani-King is Australia’s largest commercial cleaning franchise. All Jani-King Franchisees receive extensive, ongoing training and are supported by a Regional Manager, Operations Team, Administration Team and Sales Team. If you are serious about changing your future be sure to visit our website to get in contact with your local Regional Manager to discuss the unrivalled opportunities of owning a Jani-King franchise.
Specialists use GroutPro’s own branded range of professional quality products including cleaners, sealers, tile Anti-Slip treatments and shower glass restoration and sealer coatings. This is a complete package to get you up and running in your own business fast. Call us today for more information.
Phone: 02 8205 1334 Fax: 02 8205 1335 Contact: John Cabral Email: email@example.com Website: www.jempp.com.au
Phone: (AUS) 02 8522 1408 Fax: (AUS) 02 9527 5144 Contact: Luke Manning Email: firstname.lastname@example.org Website: www.justcuts.com
Start up costs from: $99 per month
Start up costs from: $160,000 to $240,000
PROFILE: JEM Promotional Products can handle all aspects of your Uniforms and Merchandise range from the supply of products to the management of a customised Online Store that your franchise locations can log on to and order your range online. We can even handle the warehousing and distribution of your products.
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.
Other benefits of an online store include ensuring your branding remains consistent across all locations, gaining group buying power and economies of scale and most importantly making your range accessible and easy to order online.
Just Cuts™ do over 66,000 Style Cuts™ cuts a week! Just Cuts™ operate on a no appointment, no request system, quality Styles Cuts™ cut at an affordable price.
We can even integrate an online payment system so that payments are collected automatically.
Join the largest Hairdressing Franchise in the Southern Hemisphere.
Contact us today to find out how.
Phone: 1800 251 680 Fax: 02 9967 5511 Contact: John Post Email: email@example.com Website: www.kwikkopy.com.au/franchise
Phone:1800 247 432 Fax: 02 9544 448 Contact: Gary Cutcliffe Website: www.koolerice.com.au Start up costs from: $39,990 + GST
Start up costs from: $210,000
PROFILE: Kooler Ice provides the machines under a simple franchise agreement, which provides a sophisticated level of support that enables our operators to earn passive income without being a slave to their business. The Kooler Ice franchise system is designed to be fair for all parties, and to provide both the Company and franchisees with the systems, support and standards required to protect their investment and our common brand. The agreement places obligations and responsibilities on both parties, as you’d expect, however we believe a strong and compliant system will help deliver our franchisees the support they need from us, and will protect their investment by maintaining our high standards of machine appearance, serviceability and functionality right across the country.
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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, focusing 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 • Strong brand and ongoing marketing solutions • Regular working hours Mon-Fri • Extensive training and on-site assistance
A-Z listings Phone: 02 9687 7700 Fax: 02 9687 7706 Contact: Peri Celik Email: firstname.lastname@example.org Website: www.lewrap.com
Phone: AU - 1800 333 270 NZ - 0800 333 270 Fax: 03 9824 7154 Contact: James Archer Email: email@example.com Website: www.lma.biz
Start up costs from: $200,000
Start up costs from: $73,940
PROFILE: LeWrap is Australia’s new and upcoming healthy fast food alternative. LeWrap was established in 2005 and has undergone great success by promoting healthy, fresh, grilled and tasty foods. LeWrap has grown to 12 stores around Sydney. The franchise is currently expanding its operations interstate to Melbourne and Brisbane and also has projections to move the brand internationally. LeWrap is a unique food offering, capturing the shift toward healthy eating and a healthy lifestyle for all customers. We are looking for passionate, motivated and energetic personnel that share our vision and want to become part of a proven and successful franchise system leading the move toward healthy fast food. If you believe it is time for Australia to embrace healthy, tasty and fresh food, we’d love to hear from you.
PROFILE: LMA has been creating exceptional results through people for over 40 years. Founded by our Executive Chairman Grant Sexton in 1972, and now led by our CEO Andrew Henderson, LMA is an Australian-owned business that works with organisations throughout Australia and New Zealand to improve their bottom line by: • Developing the leadership and management skills of their key people • Improving the performance and productivity of their people. As a Licensee in the LMA network, you will have access to market-leading products, world-class resources and support, superior quality facilitators, course coaches and venues and everything needed to kick-start your learning and development business. Limited opportunities are available across Australia and New Zealand.
Phone: 1300 366 372 Fax: 03 9565 9665 Contact: Tim Long National Fleet Sales Manager Email: firstname.lastname@example.org Website: www.mercedes-benz.com.au/vanfleet
Phone: 1300 907 403 / 02 8115 9550 Fax: 02 9262 6664 Contact: Goshia Wlosek Email: email@example.com Website: www.madmex.com.au/franchise/ Start up costs from: $375,000 - $450,000 + GST PROFILE: Mad Mex is a growing fast casual restaurant franchise, trading in over 35 stores in Australia. Our vision for the business is to grow nationally and to share our unique Mexican food with hungry Mexican fans everywhere. Mad Mex offers fresh and healthy inspired Mexican food served in a fun, engaging and high energy environment. Beyond the me-too Mexican restaurants and the sombrero-laden fast food joints, there is an authentic, fast casual Mexican like no other.
PROFILE: Want a fit fleet? Your drivers and your bottom line will be in safe hands with a Fit Fleet of Mercedes-Benz Vans. Our award winning vans are recognised for their segment leading safety, quality and reliability. So when combined with lean whole of life considerations and preferential pricing, a fleet of Mercedes-Benz Vans is not only more affordable than you may expect it can help your business perform at its peak day in, day out. Contact us today to organise a tailored fleet proposal for your franchise.
Inspired by the energy, warmth and intensity of the country and the cuisine, Mad Mex delivers big-time on freshness, flavour, fun and sustainability to create a truly inspired food experience.
Phone: 1300 737 917 / 0403 840 996 Contact: Steve Bianchini Email: firstname.lastname@example.org Website: www.mondodirect.com.au
Phone: 1300 2 MR WOW / 07 5464 1130 Contact: Julie Email: email@example.com Website: www.mrwow.com.au Start up costs from: $27,000
PROFILE: The Destination for the Best Hidden Franchise Talent. Mondo Direct is a specialist in providing executive search and headhunt services to franchise companies. We support franchise companies in achieving success through their people building robust talent teams. Our enduring relationships with the top passive talent in the APAC region, means you will gain a competitive advantage.
PROFILE: Mr WOW franchisees own their own exclusive territory business within the domestic and commercial cleaning sector. They can generate their own income using the tried and proven formula gained from Mr WOW’s 28 years’ experience. Extensive initial training and ongoing support is provided. Trading as a mobile cleaning operation, with a minimum amount of administration it is easily managed from a mobile van or home office. The full range of services available makes Mr WOW the complete one stop cleaning service provider. “Our cleaning work services set the complete home clean excellence standard and creates the WOW factor every time!”
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A-Z listings Phone: 1800 NANOTEK (1800 626 683) Contact: Franchise Recruitment Manager Website: www.nanotekcarcleaning.com.au
Phone: +613 8540 0200 Fax: +613 8540 0202 Contact: John Sier Email: firstname.lastname@example.org Website: www.mst.com.au
Start up costs from: $45,000 + Car Lease
PROFILE: Mason Sier Turnbull is widely recognised as one of Australia’s leading franchising law firms having more than 30 years of experience in advising franchisors, franchisees and suppliers to the franchising sector on all aspects of franchising, including advising on Franchising Code of Conduct compliance, Competition and Consumer Act compliance, drafting Franchise Agreements, Disclosure Documents and ancillary documentation, advising franchisees in respect of Franchise Agreements, Disclosure Documents and ancillary documentation such as leases and acting for franchisees in sales and purchases of franchise businesses. Mason Sier Turnbull acts for a number of well-known national franchisors, international franchisors, new and emerging franchise systems and franchisees Australia wide. Our international affiliations allow us to stay in touch with global franchising trends and developments.
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.
Phone: 03 8851 4200 Fax: 03 8851 427 Contact: Michael Standley Email: email@example.com Website: noodlebox.com.au/franchise
Phone: 1800 776 747 Fax: 1800 194 525 Contact: Brad Dixon Email: firstname.lastname@example.org Website: mynfib.com.au
Start up costs from: $250,000 - $280,000 PROFILE: NFIB meets the Australian demand for a dedicated online provider of insurance cover for franchisees, franchisors and franchised businesses. Our service is fully automated, compliant and provides you with full documentation. Put simply, NFIB is the fastest, most affordable way to get the most appropriate level of cover you need to protect your business.
PROFILE: An Australian success story. Noodle Box’s goal is to be the first choice noodle-based restaurant concept in every market in which they operate. Franchise partner relationships are paramount and are built on integrity, respect and trust. The Noodle Box Franchise Support Centre is focused on ongoing Franchise Partner profitability and success. With a competitive entry level investment and new restaurant design concept, the Noodle Box brand represents excellent value for money. Noodle Box is healthy, fresh and fast and made right in front of guests by friendly, welltrained team members. With a relaxed atmosphere – it doesn’t get tastier than that!
Phone: 1888 883 1004 Fax: 1800 871 8602 Contact: Paul Lewis Email: Plewis@orangeleafyogurt.com Website: www.orangeleafyogurt.com.au
Phone: 1300 961 588 Contact: Luxottica Franchising Team Email: email@example.com Website: luxottica.com.au/franchising Start up costs from: $250,000
Start up costs from: US$250,000 - $400,000
PROFILE: Your competitive advantage starts with us. When you partner with OPSM, you’ll be investing in a highly respected and market-leading franchise brand.
PROFILE: Orange Leaf Frozen Yogurt is a self-serve, choose-your-own-toppings frozen dessert chain with more than 285 locations in the U.S. and Australia.
You’ll benefit from award winning systems, support, training and business development programs; and be part of an innovative, professional network.
Ranked one of the fastest growing limited service chains by Technomic and as one of the top three new franchises for 2013 by Entrepreneur, Orange Leaf’s profranchisee culture encourages owners to become a part of their communities and provides them with the necessary ingredients for success.
If you’re looking to secure your financial future then call us for an obligation-free, confidential chat.
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Orange Leaf offers a multitude of delicious, traditional and original flavors, including no-sugar-added, gluten-free and dairy-free alternatives. Customized with a generous selection of do-it-yourself toppings, Orange Leaf provides an innocent indulgence, self-served in a stimulating atmosphere.
A-Z listings Phone: 07 5532 7071 Fax: 07 5532 5351 Contact: Graeme Diamond Email: firstname.lastname@example.org Website: www.outbackjacks.com.au
Phone: 02 9822 5622 / 0423 052 456 Fax: 02 9822 5677 Contact: Kate Bird Email: email@example.com Website: www.packsend.com.au
Start up costs from: $300,000
Start up costs from: $154,450 - $166,900 + working capital (ex GST)
PROFILE: Outback Jacks Bar & Grill is an exciting fully licensed, family style steakhouse which has been franchising since 2006. We have perfected the art of providing an amazing experience specialising in the growing family dining market and have now grown to 28 strong franchise restaurants around the country. We can provide full turnkey restaurants along with comprehensive training and support so no experience is required just a passion for great food and customer service. We have new sites available in all states and territories so if you have ever dreamed of owning your own bar & grill give us a call today.
PROFILE: PACK & SEND is an award winning Retail Service Centre operation providing convenient freight and packaging services to businesses and consumers wanting to send anything, anywhere - plus, we offer online freight solutions for pre-packed parcels! Utilising our proprietary freight management technology (GlobalMaster™) to perform the delivery solution, together with our expertise in packaging services, means you can offer a solution for any person or business. Established for 20 years with a network of over 100 Australian stores – along with international stores in New Zealand and the United Kingdom – there is no other franchise system like PACK & SEND in the world and, best of all, our franchisees receive assistance and support along the way.
Phone: 07 3456 4255 Fax: 07 3456 4299 Contact: Phil Hill Email: firstname.lastname@example.org Website: propertyclub.com.au
Phone: 02 9930 3023 Contact: Brett Jeffrey Email: email@example.com Website: www.pizzahut.com.au/franchise Start up costs from: $250,000-$300,000
Start up costs from: $300,000
PROFILE: 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.
PROFILE: The Property Club is a division of The Investors Club. Since its establishment in 1994, The Property Club has assisted in the sale of over 17,000 properties throughout Australia and New Zealand and are looking to expand further in these markets. Property Club prides itself on providing investment opportunities and deals and a one-stop-shop to access property related services for its members. The company currently has 18 Franchises and 300 Property Mentors, as well as a head office with 40 staff specialising in all areas of Property Investment.
Phone: 1300 4 RED ROCK (1300 473 376) Contact: Phil Colburn Email: firstname.lastname@example.org Website: www.redrocknoodlebar.com.au
Phone: 1300 4 REDCAT (1300 4 733228) Email: email@example.com
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.
PROFILE: RedCat provides integrated, end-to-end, point of sale, accounting and business management solutions that give users total control of their business. As a leader in hospitality point of sale software since 1992, RedCat supplies integrated software and hardware solutions that can manage sales, staff, stock and payroll through to accounts, GST, customer loyalty, and web based multi-site reporting to provide a complete business management system. For the needs of franchised groups they have developed a flexible centralised management capability that permits multiple levels of control and reporting, from total head office management, through to localised management and web based consolidated reporting tools, unique online ordering systems and branded apps.
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A-Z listings Phone: 0408 178 858 Fax: 03 6247 3853 Contact: Alan Carroll Email: firstname.lastname@example.org Website: www.renttheroo.com.au
Phone: 1800 049 743 Fax: 1800 884 431 Contact: James Scurr Email: email@example.com Website: www.silverchef.com.au
Start up costs from: Under $300K PROFILE: Rent The Roo specialise in renting household appliances & furniture with over 60 franchise territories throughout Australia. With 36 years of trade and development, our continued focus is on customer satisfaction.
Rent The Roo franchisees can purchase from any retailer or accessible supplier – giving them the flexibility to satisfy every customer enquiry. If we can find it, you can rent it…! Rent The Roo’s home-based, simple and productive business model combines low running costs with the highest possible returns.
• 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
Franchisees have access to an advanced software platform as well as ongoing training, support and marketing tools to help drive the business.
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.
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:
Silver Chef Limited is a public company listed on the Australian Stock Exchange.
Phone: 1800 762 766 Fax: 02 9837 9199 Contact: Nick Hudson Email: firstname.lastname@example.org Website: www.snapontools.com.au Start up costs from: $37,000 with financing packages available PROFILE: Snap-on Tools Australia is a mobile franchise operation putting high quality tools and equipment into the hands of mechanics, engineers and technicians across the country. Snap-on Tools is a wholly owned subsidiary of Snap-on Inc., a developer and manufacturer of innovative and technologically advanced tools who has established a network of solid franchise operations across the globe. Now after more than 20 years in the Australian market it continues to solidly perform and provide robust financial results for its network of 166 franchisees. Extensive training and ongoing support is provided – no previous mechanical experience required. Snap-on offers an exclusive finance package to assist new franchisees.
Phone: 1300 810 233 Fax: 02 9887 4252 Contact: Franchise Development team Email: email@example.com Website: www.snap.com.au
Print Design Websites
PROFILE: The most successful print, design and website franchise in the Southern Hemisphere. • Over 179 locations worldwide • Turnover of over $120 million p.a. • Over 500,000 clients • Focus on SME businesses Throughout our proud history, dating back to 1899, we have been progressive, innovative and embraced technology; listened to the market and adapted to trends. The benefits of a Snap Franchise include: • One of Australia’s leading brands • 5 days a week operating hours • Be your own boss • National coverage • 100% Australian Choose the Snap brand with confidence, knowing the strength of our proven franchise model.
Phone: 1300 WASHER / 1300 927 437 Contact: Sales Manager Website: www.speedqueen.com.au/invest
Phone: 0427 401 169 Fax: 03 9888 6327 Contact: Alistair Browne, Snooze Franchise Network Development Manager Email: firstname.lastname@example.org Website: www.snooze.com.au Start up costs from: $450,000 PROFILE: As one of Australia’s longest-running, most successful and innovative franchised business, Snooze’s experience in the bedding industry is second to none. Boasting more than 70 stores across Australia and a goal to reach 90 stores by 2014, Snooze is looking for ambitious and passionate people to join the business’ exciting future. Snoozes offers a personable, flexible business solution with expertise and support every step of the way, including: • Vendor finance assistance • NAB & ANZ accreditation • Sales and product training • Business management support • A national marketing program • IT services To take the first step towards a prosperous future, contact Snooze Franchise Network Development Manager, Alistair Browne, to find out what Snooze could mean for you.
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Start up costs from: $150,000
Start up costs from: $10,000 - $100,000 PROFILE: Speed Queen offers vended laundry investment opportunities to entrepreneurs all across Australia. With a profound understanding of the laundry industry, we guide investors through every step of the process to help them achieve maximum returns. Through the industry’s largest network of knowledgeable laundry experts, we offer assistance for every aspect of your laundry business, including location selection, pro-forma analysis, store design, market support and factory backed leasing. As part of Alliance Laundry Systems, the world’s largest commercial laundry manufacturer, Speed Queen has the experience, customized capabilities and resources to help you reach your investment goals.
A-Z listings sparky a3.pdf 1 7/04/2011 12:22:20 PM
Phone: Toll Free Australia - 1800 630 355 New Zealand - 0800 444 618 Fax: 07 3852 4081 Contact: Franchise Administrator Email: email@example.com Website: www.subway.com
Phone: NSW/ACT - 02 9250 5000 VIC/TAS - 03 9287 9555 WA/SA - 08 9430 2877 QLD/NT - 07 3877 7333 Email: firstname.lastname@example.org Website: www.caltex.com.au
Start up costs from: Varies by site PROFILE: • Caltex Star Mart is Australia’s number 1 convenience retailer with locations in every State and Territory across the country. • The Star Mart convenience network consists of over 630 stores nationally. • Franchisees operate approximately 85% of Caltex’s retail network. Our world class business model, merchandising and field support has set the benchmark for convenience retailing, making Caltex the number one convenience retailer throughout Australia. A select amount of Caltex Star Mart opportunities now exist for high calibre franchisees with a passion for retail and a burning desire to be successful. To discover more about Caltex’s exciting franchise opportunity, please visit www.caltex.com.au and click on ‘Franchising at Caltex’.
POOL & SPA SE RVICES
Australia’s pool & spa specialists
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.
Phone: 02 02 9898 9898 8602 8666 Phone: Fax: 02 02 98983089 98983089 Fax: Contact: Chris Chris Fitzmaurice Fitzmaurice Contact: Email: email@example.com firstname.lastname@example.org Email: Website: www.swimart.com.au www.swimart.com.au Website:
Phone: (03) 8699 2555 Fax: (03 8699 2550 Contact: TeleChoice Reception Email: email@example.com Website: www.telechoice.com.au
Start up up costs costs from: from: $150,000 $150,000 -- $300,000 $220,000 Start
Start up costs from: $200,000
PROFILE: First established in 1983, Swimart has grown to be the largest chain of specialty Pool and Spa shops in both Australia and New Zealand. With over over 65 67 retail retail stores stores across and more than 250 service vehicles across both owners countries With both countries we specialise in providing Swimart is a very successful retail andand service business that with everything they need to maintain enjoy their pool or delivers spa. high turnover and profit margins to franchisees. We specialise in providing pool and spa owners Swimart is a fullythey owned of and Waterco publicly listed Australian with everything needsubsidiary to maintain enjoyLtd, theira pool or spa. company operations in over eight countriesLtd, around the globe! Swimart iswith a fully owned subsidiary of Waterco a publicly listed Australian Waterco Australia’s largest manufacturer and distributor ofglobe! water filtration companyiswith operations in over eight countries around the products with an enviable reputation for innovation and quality.
PROFILE: PROFILE: TeleChoice is Australia’s largest independent mobile phone and telecommunications There has never been a better to become boss. services franchise, operating for time 18 years in more your than own 140 locations. Using the most reputable service providers in Australia, franchisees are in theinbusiness of TeleChoice is a great choice for you if TeleChoice you are looking for a business a saving money for their customers. For example, TeleChoice uses parts of the Telstra dynamic industry. 3G Network to offer the most competitive mobile phone rates that any franchisee in With over 150 stores nationally and a massive support base, you’ll always feel part Australia can offer; and offering Electricity and Gas from Energy Australia delights our of a great team. customers even more. To yourmake own business take control of money. your life,Our callindustry TeleChoice today. Youstart too can money byand saving people their is very dynamic and is only suitable for smart energetic investors. If you have the passion for business and the drive to succeed; we would like you to be part of our team. Call the National Franchise Manager on (03) 8699 2555, or visit www.telechoice. com.au/franchise * conditions
Phone: 1800 677 621 Fax: 02 8310 0066 Contact: Peter Rich Email: firstname.lastname@example.org Website: www.theathletesfoot.com.au/franchising Start up costs from: $400,000+ PROFILE: The Athlete’s Foot has over 30 years of franchising experience in the sport and leisure industry. With over 130 stores nationally, they are the largest single retailer of athletic footwear in Australia. The Athlete’s Foot has become a renowned brand with a distinct market proposition - Fit. Through a commitment to customer service, dedication to training, exclusive fitting technology and partnership with a range of footwear brands, The Athlete’s Foot provide the best fit for each customer’s needs. New and established market opportunities are available now, with full training and ongoing support provided. Work for yourself, but not by yourself with The Athlete’s Foot.
Phone: +61 439 222 422 (AUS) +64 21 917 148 (NZ) Contact: Glenn Dobson Email: email@example.com Website: www.tadda.com.au PROFILE: The Australian Drug Detection Agency (ADDA) is rapidly establishing itself as the largest and most dominant provider of workplace drug detection services in Australia & New Zealand, with a fast growing list of major corporate clients. With workplace drug screening becoming a necessity for most businesses for safety, legal and productivity reasons, the opportunities are endless to win contracts with Local, State and National businesses. You will also benefit from State Office support and large-scale clients that need services in your area. ADDA wants highly motivated and business oriented individuals to join the team to share in the success of this proven business model. If you are seeking a next generation business opportunity with huge potential then contact us now to find out more.
SEP/OCT 2013 FRANCHISING | 139
A-Z listings Phone: 02 9723 1011 Fax: 02 9727 6771 Contact: Nick Avgerinos Email: firstname.lastname@example.org Website: www.cheesecake.com.au
the chocolate room
Start up costs from: $150,000 - $700,000 PROFILE: The Cheesecake Shop opened in 1991 and has developed into an Australian favourite with a massive network of almost 200 stores across Australasia. Our award winning system makes for one of the simplest businesses to operate. Our systems guide you on how many cakes you need to produce each week and how much of each ingredient to order. Our cakes are baked from easy to follow recipes. You don’t need to be a chef or a baker, its so easy! If you love to bake cakes for the kids then here is your chance to turn your passion into profit.
Phone: 03 5229 6716 Fax: 03 5229 6718 Contact: Jim Richardson Email: email@example.com Website: www.thechocolateroom.com.au Start up costs from: $200,000 - $250,000
PROFILE: The chocolate room was established in Australia in 2006, seven years on we have over 50 stores worldwide - Australia, India, UK, and soon to be opening in China, U.A.E., Malaysia, Singapore, Hong Kong, Sri Lanka and Pakistan. 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.
Phone: 07 5591 3242 Fax: 07 5591 9021 Contact: Michelle Connor Email: firstname.lastname@example.org Website: www.rfg.com.au
Phone: 03 9008 5945 Fax: 03 9876 6612 Contact: Richard Email: email@example.com Website: thefranchiseshop.com.au
Start up costs from: $98,950 PROFILE: Taking quality coffee directly to its customers, The Coffee Guy is an Australian mobile coffee franchise. The Coffee Guy franchisees deliver the perfect espresso to where it is needed across their territories. Able to operate without access to power or water, The Coffee Guy caters to the coffee demand that fixed stores cannot. Established in 2006 in New Zealand, The Coffee Guy has more than 55 franchisees across Australia and New Zealand. Territories are available Australia wide.
PROFILE: The Franchise Shop is the leading franchise consultancy offering both franchise development & recruitment services to the franchising industry throughout Australia and New Zealand. Principals, Grant and Richard Garraway have more than 30 year’s experience between them in developing businesses into franchises, conducting feasibility studies, recruiting franchise owners, territory planning and site finding. At The Franchise Shop our aim is to grow your business. Are you thinking of developing your business? A free initial consultation will provide you with an honest, comprehensive and accurate assessment. Looking to buy a franchise? We offer an advice service and range of documents which are designed to help you make an informed decision.
Phone: 1800 220 039 Fax: 07 5522 0051 Contact: Peter Darnell Email: firstname.lastname@example.org Website: http://www.touchupguys.com.au
Phone: 0414 217 019 Contact: Rob Watkin Email: email@example.com Website: www.topsnap.com Start up costs from: $39,950 + GST 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 professional property photography and marketing tools. In recognition of this outstanding growth, Top Snap was recognised as one of Australia’s top 50 fastest growing SMEs in both the 2012 and 2011 SmartCompany awards.
140| FRANCHISING SEP/OCT 2013
Start up costs from: $85,250 + approved vehicle 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.
A-Z listings Phone: 1300 139 913 Fax: 1300 133 338 Contact: Sales Support Email: firstname.lastname@example.org Website: www.trusonic.com.au
Phone: 03 9413 1400 / 0429 811 811 Fax: 03 9413 1401 Contact: Adrian Gallace Email: email@example.com 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
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
PROFILE: Australian-owned company that has become one of the largest independent fuel retailers with over 290 convenience stores throughout Australia. United Petroleum continues to invest heavily in its stores and systems which has earned the trust of consumers and respect of major competitors. United franchisees enjoy ongoing support, guaranteed minimum Fuel Commissions, merchandising support, a national promotional program, five week induction program and on-going training.
To get Trusonic music working for you, contact them today.
United is a proud member of the Franchise Council of Australia (FCA) and was awarded Canstar winner for 3 years in a row – Most Satisfied Customers (Service Stations).
Phone: 03 9612 7297 Fax: 03 9629 4035 Contact: Robert Toth Email: firstname.lastname@example.org Website: www.wisewouldmahony.com.au
Phone: 13 26 13 Fax: 08 8220 4588 Email: email@example.com Website: www.vipfranchisesales.com.au Start up costs from: $25,000
PROFILE: V.I.P. was the first company to start franchising in home services in 1979. Today V.I.P. has over 1100 franchisees across Australia and New Zealand. V.I.P. has franchise opportunities available in: • Garden Maintenance and Lawn Mowing • Home Cleaning • Commercial Cleaning V.I.P. offer franchisees comprehensive training, a solid support system, exclusive territories and an established customer base along with the chance to be their own boss and choose the hours they want to work. In 2009 & 2010 V.I.P. was declared the Best Franchise System in Australia under $50,000 by the Financial Review Smart Investor magazine.
Phone: 0414 669 101 Fax: 02 9771 9570 Contact: Stephen Spitz Email: firstname.lastname@example.org Website: www.xpressodelight.com.au
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
A-Z Listings Phone: x Fax: x Contact: x Email: x Website: x
Start up costs from: $
Start up costs from: $69,900 + GST 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: Listing Profile
For A-Z listings enquiries contact: National Sales and Marketing Manager David Strong on 02 8484 0905 email@example.com
SEP/OCT 2013 FRANCHISING | 141
Advertisers index INCORPORATING FCA NEWS
HELP GUIDE | COMPANY LIST
* indicates FCA member FRANCHISE COUNCIL OF AUSTRALIA
5 Dogs Ace Insurance Alliance Laundry Appliance Tagging Services Aussie Outdoor Autobarn Baskin-Robbins Brian Tracy
Red Rock Noodle Box
Rent The Roo
Jem Promotional Products
Retail Food Group
Mason Sier Turnbull
Caltex Cappuccino Xpress Cirrus Media
128, 129, 142*
4* 85* 86, 87* 72,73
Snap On Tools
National Franchise Insurance Brokers
The Franchise Shop
The Touch Up Guys
Cosmos 21+ Group
Fastway Couriers Five High Vend Franchise Council of Australia Franchise Selection Gelatissimo
143* 42 102* 96, 97* 43*
Pack & Send
The Athlete’s Foot
The Australian Drug Detection Agency
The Cheesecake Shop
The Chocolate Room
The Coffee Guy
VIP Australia Wisewould Mahony
Franchising ADVERTISING ENQUIRIES • Magazine • A-Z listings • The Profiler
• The Yearbook • E-newsletter & E-blast • Online inventory
David Strong National Sales & Marketing Manager P: 02 8484 0905 M: 0411 366 656 E: firstname.lastname@example.org Facebook.com/franchisingau Twitter.com/franchisingau
142| FRANCHISING SEP/OCT 2013
Run your own rewarding business Fastway Couriers has a number of exciting franchise opportunities available • Guaranteed income package*
• Exclusive territories
• Low start up costs
• No weekend work
• Perpetual Franchise Agreement
• Ongoing business support & training
• Recognised brand
• Easy to operate - no experience required
• Award winning system for over 30 years
• Enjoy the freedom of working for yourself
To find out more contact us: p. w.
1300 FASTWAY fastway.com.au
*For a defined period. Conditions apply. Fastway Couriers (Australia) ABN 38 057 389 769. Fastway Couriers is a franchised courier network and its businesses are independently owned.
The Australian Drug Detection Agency
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The Australian Drug Detection Agency wants highly motivated and independent people to join the team, as either Master or Regional Franchisees. The is aDrug proven business model provide financial rewards for those who TheADDA Australian Detection Agency wants that highlywill motivated andexcellent independent people to join The Australian Drug Detection Agency wants highly motivated and independent people to join are prepared to work hard and fit the criteria. the team, as either Master or Regional Franchisees. TheisADDA is a opportunity proven businessfor model that will provide excellent financial rewards for those skills, including This a huge individuals who have strong business-oriented who are prepared to work hard and fit the criteria. those who have served or are currently in law enforcement; the emergency services; or the armed forces, to get in at the ground level and grow their own enterprise. Thisinislaw a huge opportunity business-orientated individuals who have or are currently enforcement, the for emergency services or the armed forces, to getserved, in at the ground level Are you ready to join our experienced group and secure a lucrative future? in law enforcement, the emergency services or the armed forces, to get in at the ground level and grow their own enterprise. and grow their Our guess is own Yes,enterprise. you are! Are you ready to join our experienced group and secure a lucrative future? AreFranchises you ready to join our experienced group and secure a lucrative future? selling fast Our guess is Yes, you are! Email: email@example.com sold QLD/NSW/VIC OurMasters guess is Yes, youinare!
• • franchises still • sSub Franchises selling fastavailable in all States. s Franchises selling fast s Masters sold in QLD/NSW/VIC s Masters sold in QLD/NSW/VIC
Email: firstname.lastname@example.org Website: www.tadda.com.au Website: www.tadda.com.au
Find out how to avoid franchise failure in the latest issue of Franchising magazine, the Sept/Oct edition out now. franchisee success, trai...
Published on Sep 16, 2013
Find out how to avoid franchise failure in the latest issue of Franchising magazine, the Sept/Oct edition out now. franchisee success, trai...