T he
ma g a z ine
VOL 08 ISSUE 02 january / february 2014
for
franchisees
AUSTRALIA and NEW ZEALAND
the price is right
franchises you can afford
How to
choose the right franchise for you
7 deadly sins
of franchise relationships
$4.95 (AUD), $6.95 (nz) inc. gst.
LATEST NEWS
FINANCIAL ADVICE FROM THE BANKS
TOP LAWYERS’ ADVICE
Run your own rewarding business Fastway Couriers has a number of exciting franchise opportunities available • Guaranteed income package* • Low start up costs • Perpetual Franchise Agreement • Recognised brand • Award winning system for over 30 years
• Exclusive territories • No weekend work • Ongoing business support & training • Easy to operate - no experience required • Enjoy the freedom of working for yourself
To find out more contact us: Australia:
p. 1300 FASTWAY w. fastway.com.au
New Zealand:
p. 0800 4 FASTWAY w. fastway.co.nz
*For a defined period. Conditions apply. Fastway Couriers (Australia) ABN 38 057 389 769 | Fastway Couriers (NZ) Ltd T/A Fastway Couriers, New Zealand. Fastway Couriers is a franchised courier network and its businesses are independently owned.
3733
NEW FRANCHISE OPPORTUNITY FROM IFG
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3 GREAT FEATURES OF THE IFG 50/50 FRANCHISE • Leverage your capital • We handle the paperwork • Set your own timetable
THIS IS YOUR OPPORTUNITY TO BE IN CONTROL OF • Your income potential • Your capital • Your work schedule and earn a well-above average ROI!
TAKE ACTION NOW For more information, please contact Jon Williams Tel: 1300 940 908 Email: jonwillams@interfacefinancial.com Website: www.interfacefinancial.com.au
As long as there are new businesses - and growing businesses - there will Australian Credit Licence 387405. always be a need for IFG’s Invoice Discounting service.
busi n ess fr anch ise aust r a l i a an d n e w ze a l an d
From the
Editor
Joanne Tuffy - Editor
BUSINESS FRANCHISE AUSTRALIA and new zealand VOLUME 8 ISSUE 2, jan / feb 2014
Welcome to 2014 and to another great year of Business Franchise Australia and New Zealand magazine. The start of the New Year is traditionally the time people take stock of their lives and make resolutions to change any negatives. Often these New Year resolutions focus on work and involve making changes for the better. If you no longer want to work for someone else and want the challenge of owning your own franchise, this issue is for you. Our feature, starting on page 57, centres on a range of franchise systems you can afford. Enjoy reading through a selection of the varied franchise systems that are within your price range. There should be something for everybody! Our front cover this issue features Terry and Jeanette Bambury, Zarraffa’s Coffee ‘Franchisee of the Year’. Read about their journey to success on pages 10 and 11. Justin Flaherty from Horizon Communications shares his expertise regarding brand reputation on page 20, saying “One of the biggest mistakes businesses make with reputation management is that it’s not made
a priority.” Make sure you don’t get caught out!
publisher:
Kwik Kerb, a household name in continuous concrete edging, announce in this issue their competition, exclusive to Business Franchise magazine, which will allow one lucky reader to win their own Kwik Kerb business. Read their focus feature on page 38 to see if this is the perfect business opportunity for you.
colin@cgbpublishing.com
Rod Young, a leading franchise consultant and Chairman of the DC Strategy Group, shares his knowledge and offers advice on how to choose the right franchise for you on page 72. Read his very informative article and make sure you’re ready for the responsibility to make the transition to being your own boss.
Vikki Bradbury.
Colin Bradbury.
As always, there is a great selection of articles throughout this magazine from leading franchising experts including bankers, lawyers, accountants and consultants. Plus franchise news and updates from the Franchise Council of Australia and the Franchise Association of New Zealand.
EDITOR: Joanne Tuffy editor@cgbpublishing.com.au SALES DIRECTOR: vikki@cgbpublishing.com SALES & marketing manager: Kathleen Lennox. kathleen@cgbpublishing.com.au PRODUCTION: production@cgbpublishing.com.au ACCOUNTS: Anna Francis. accounts@cgbpublishing.com.au DESIGN: Jejak Graphics (03) 9772 2571
So if your New Year’s resolution is to become your own boss by buying a franchise business, then you have picked up the right magazine.
Zarraffa’s Coffee
Enjoy the read.
www.businessfranchiseaustralia.com.au
Joanne Tuffy Editor
or www.isubscribe.com.au
COVER IMAGE:
TO SUBSCRIBE:
CGB PUBLISHING PO BOX 968 MT ELIZA, VICTORIA 3930 TEL: (03) 9787 8077 FAX: (03) 9787 8499 Email: cgb@cgbpublishing.com.au
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The information and contents in this publication are believed by the publisher to be true, correct and accurate but no independent investigation has been undertaken. Accordingly the publisher does not represent or warrant that the information and contents are true, correct or accurate and recommends that each reader seek appropriate professional advice, guidance and direction before acting or relying on all information contained herein. Opinions expressed in the articles contained in this publication are not necessarily those of the publisher. The publication is sold subject to the terms and conditions that it shall not be copied in whole or part, resold, hired out, without the express permission of the publisher.
Business Franchise Australia and New Zealand 3
busi n ess fr anch ise aust r a l i a an d n e w ze a l an d
Contents january / february 2014 On the Cover 57 Feature: The price is right, Franchises you can afford 72 Buying a franchise: How to choose the right
franchise for you
Rod Young, DC Strategy
82 The 7 deadly sins of franchising
66
In Every Issue 6
72
Greg Nathan, Franchise Relationships Institute
24
What’s New!
Announcements from the industry
Profiled Franchises 18 Exa
10 Cover story – Driving cross-country
36 Snap-on Tools
12 Michael Paul, FCA Chairman
40 Franchise Selection
14 Graham Billings, FANZ Executive Director
46 TeleChoice
99 Behind the Headlines
80 Cafe2U
101 Professional Services Listings
88 V.I.P. Australia
Zarraffa’s Coffee
Jason Gehrke, Franchise Advisory Centre
102 Franchise Listings 104 A-Z Franchise Directory
reputation as well as building it?
Justin Flaherty, Horizon Communication Group
30 Franchising supply arrangements
and the ACCC
Dr Michael Schaper, ACCC
42 Promises, promises.
Carrie Peterson, Bartier Perry
52 Redundancy remedy: Mature age workers
using redundancy payouts
John Stanton, Cafe2U
62 How to buy a franchise when funds are tight
Robert Graham, CEO Consulting
66 Buying a franchise? Consider lifestyle
Debbie Pham, Kids Korner
70 Franchising for financial stability
Gerry Gerrard, Bakers Delight
76 The value in service franchises
Peter Buckingham, Spectrum Analysis
90 SEO and Social Media:
How to successfully market your franchise Adam Heitzman, HigherVisibility
96 Business Health Check: How your bank can partner with you
Ian Watt, Westpac
24
20 Do you invest in managing your
Appliance Tagging Services............... 104 Battery World...................................... 45, 104 Brazilian Beauty................................. 23, 104
Bright Eyes Franchising................ 35, 104 Coffee Guru. ........................................ 35, 105 Crema Espresso. ...................................... 105 Ella Bache. .................................................... 105 Energis. ................................................... 79, 105 Fasta Pasta................................................... 106 Fastway Couriers............................ IFC, 106
32
Expert Advice
also in this issue:
FC Business Solutions. ............................ 17 Froota Frozen Yoghurt............................107 Hairhouse Warehouse..............OBC, 107 Harmans Lawyers.....................................101 Inspect my Home......................................107 Jim’s Fencing. ..............................................107 Just Cuts........................................................ 108 Lava Carts..................................................... 108 Listen To Read. .......................................... 108 Liston Landers.............................................101 Madgwicks....................................................101
Franchisor in Depth 32 Frog Rent
42
Noodle Box. ..........................................27, 109
Red Rooster................................................. 109
RedCat.................................................................. 1 Rent the Roo....................................... 55, 109
Sleepys. .......................................................... 109 Snooze.................................................. IBC, 110
Spotlight on Service
Spray Pave Australia................................ 110
28 National Franchise Insurance Brokers
Taco Bill. .......................................................... 110
94 Franchising Expo
The Australian Drug Detection Agency..............................89, 111 The Concrete Cutter................................ 111
38 Kwik Kerb 48 MAS Tax Accountants
The Interface Financial Group.......2, 111 Top Snap................................................ 87, 111 Unscratch the Surface .......................... 112
48
Franchise in Focus
Wisewould Mahony..................................101 Xpresso Mobile CafĂŠ............................... 112
what’snew! Cafe2U is now the largest mobile coffee franchise in the world, with over 230 franchises in operation and far outsizes any of its Australian competitors. Cafe2U has franchises throughout the USA, South Africa, New Zealand and the UK including Scotland, Northern England, Southern England, the Channel Islands and Northern Ireland. The franchise continues to experience phenomenal growth in Australia at around 25 – 30 per cent every year. Cafe2U MD Derek Black credited two reasons for the perpetual overall franchise growth.
Cafe2U celebrates 150th Australian franchise milestone Australian-born Cafe2U has reached a significant milestone, having just launched their 150th Australian franchise in Hallam, Melbourne.
milestone for the world’s biggest mobile coffee franchise. Peter didn’t expect his new business venture to mark a major highlight in the history of the Cafe2U franchise.
Cafe2U Hallam owner Peter Pettinella, whose franchise services the suburbs of Hallam, Doveton, Endeavour Hills, Lysterfield South, Narre Warren North, Narre Warren, Berwick and Beaconsfield has unexpectedly become central to the huge
“I didn’t realise I had purchased the 150th franchise in Australia until the Cafe2U training commenced. It is a fantastic achievement for the company and I am thrilled to have come on board at such an important time in their history.” he said.
Win your own business with Kwik Kerb Kwik Kerb are giving one lucky reader the opportunity to own and run their own business and achieve their own financial success, AT NO COST. Marketing Manager, Alex Colls explains, “We are giving away, free of charge, a brand new fully equipped trailer, along with the same materials, training (plus accommodation if inter-state) and support that someone who purchases a Kwik Kerb business would receive. “The competition will be launched
exclusively in the March/April issue of Business Franchise magazine and will require entrants to email a summary outlining why they would be the ideal Kwik Kerb operator and small business owner.” If this sounds like your dream business, make sure you check out the next issue of Business Franchise Australia and New Zealand, available in newsagencies and digitally via iTunes or Android on Friday 7th March, which will detail how to enter this life changing competition.
6 Business Franchise Australia and New Zealand
“Firstly there was the implementation of an ongoing programme of business analysis with existing franchisees and secondly there is the launch of the ‘Acceleration Package’, which ensures new franchisees start their business with a higher base line of sales. This is a unique training and development programme which also includes a revenue guarantee for the first two weeks of trading,” he said. Black said Peter symbolised what was great about the local status that is fundamental to Cafe2U, by being a proud, local resident owning his own business and servicing his local community. “This is a triumphant time within the company, launching our 150 Australian franchise. With more franchises set to launch in early 2014, this indicates that we are still experiencing incredible confidence in the Cafe2U brand.”
Explore every opportunity at Franchising Expo – it showcases a wide range of businesses under one roof, as well as offering expert advice and information.
boss,” she says. “It’s really time to stop dreaming and start doing.”
“It’s great being able to research business opportunities on the internet, however nothing can replace a real person explaining the ins and outs of their venture,” explains Exhibition Manager Fiona Stacey. One of the most challenging things for entrepreneurs planning to start or buy a business is deciding which one best suits their skills, budget and lifestyle.
Stacey adds that The Sydney Franchising and Business Opportunities Expo will give all visitors the opportunity to compare and research a diverse range of franchise opportunities with investment levels from under $10,000 to more than $500,000.
That’s why the Franchising and Business Opportunities Expo, which opens in Sydney 28-30 March, is so popular year after year
“Entry is free if you pre-register online, and there is an abundance of information available on every aspect of being your own
The Sydney Franchising and Business Opportunities Expo is on Friday 28 March – Sunday 30 March 2014 at the Royal Hall of Industries at Moore Park. Entry is $15 at the door or free with pre-registration. Sydney’s show will be followed by the Brisbane Franchising and Business Opportunities Expo 19-20 July at Brisbane Convention & Exhibition Centre, and the Melbourne Franchising and Business Opportunities Expo, 22-24 August at Melbourne Exhibition Centre. For more information and free registration go to www.franchisingexpo.com.au
Harvey Norman franchisees pay for misleading consumers The Federal Court has ordered four Harvey Norman franchisees to pay a total of $116,000 in civil pecuniary penalties for making false or misleading representations to customers regarding consumer guarantee rights. The four franchisees are: • Launceston Superstore Pty Ltd, located in Launceston, Tasmania ($32,000); • Moonah Superstore Pty Ltd, located in Moonah, Tasmania ($28,000); • HP Superstore Pty Ltd, located in Hoppers Crossing, Victoria ($28,000); and • Salecomp Pty Ltd, located in Sale, Victoria ($28,000). The Court found that each franchisee had made a number of false or misleading representations to consumers about their consumer guarantee rights. While the allegations made by the ACCC against each of the franchisees differ, examples of the misrepresentations include representations that: • the franchisee had no obligation to provide remedies for damaged goods unless notified within a short specified period, such as 14 days; • the franchisee had no obligation to provide
an exchange or refund for faulty goods supplied; and • the franchisee had no obligation to provide a remedy independently of the relevant product manufacturer. The representations were made orally by staff located inside the franchise store. In addition, Launceston Superstore Pty Ltd also stated on receipts that “No claims will be honoured on damaged goods unless notified within 24 hours of delivery or pick-up”. “These penalties send a strong message to all businesses, including franchisees, that they must not mislead consumers about their rights to repair, replacement or refund for faulty goods under the Australian Consumer Law,” ACCC Chairman Rod Sims said. “Complaints about consumer guarantees represent a quarter of the consumer protection complaints that the ACCC receives each year, The ACCC has moved from raising awareness of the law to taking enforcement action where it believes consumers have been misled about their rights under the consumer guarantee provisions of the ACL.”
“Processes to ensure that, if goods were not of acceptable quality when sold to consumers, consumers can obtain a remedy for faulty goods represent a cost on the retailer’s business. Retailers may need to incur costs to maintain a culture of compliance with the ACL, including by supervision of staff”. In addition to penalties, the Court also made orders including declarations and injunctions in relation to each of the four franchisees. With the exception of Launceston Superstore Pty Ltd, which ceased trading on 30 November 2012, the franchisees are required to display in-store corrective notices and implement a consumer law compliance program. Proceedings were issued on 13 June 2013 against the four Harvey Norman franchisees. Subsequently, the ACCC and each of the four franchisees came to an agreed settlement on the matter, with agreed orders put to the court for consideration.
In his judgment, Justice Middleton stated that:
Business Franchise Australia and New Zealand 7
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COLD HARD CASH? COLD HARD ROCK? Cold hard cash or cold hard rock, what are you going to choose this summer? Bringing in the New Year in style, Cold Rock Ice Creamery is continuing the New Year celebrations, giving customers the ultimate Cold Rock choice: to win $10,000 cash or a $10,000 diamond. Officially kicking off today, the Cold Rock Summer campaign is calling for customers far and wide –mum, dad, kids, teens and ice cream lovers alike– to get on board, asking fans to purchase their favourite Cold Rock ice cream Mix In combination, and go in the running to win a giant wad of cash, or a nice big chunk of bling; $10,000 dollars or a brand new diamond.
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Open to customers who purchase a Cold Rock ice cream product between 6 January and 14 February 2014, eligible entrants will receive a unique entry code.
# 1 .! /! '4%!.& !.&/0!
Housed on the Official Cold Rock Ice Creamery Facebook page www.facebook.com/ officialcoldrock, entries will be recorded via a custom-built application. Cold Rock CEO Stan Gordon is pleased to continue Cold Rock’s customer choice proposition, and excited to see which choice wins out; cash or diamond. “Cold Rock is much more than an ice cream dessert. We’re all about having fun, enjoying a treat, giving our customers an experience and the opportunity to be the decision makers… right down to the prize they win!” he said. One lucky winner will be drawn and announced on Tuesday 25 February 2014. For full terms and conditions or further details about the campaign please visit www. coldrock.com.au or www.facebook.com/ OfficialColdRock.
JIM’S ANTENNAS GENEROUS GESTURE TO JOB SEEKER
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$ # 4 .' ) $/'*/!)cold, the guy was bundled “It3#was freezing !F , ! 4 . 4D#(5' incacbig c! overcoat and beanie so I didn’t 5#(/!3 !b__upM!c ` really get a good look at him, but I noticed !A 4 !# 4)0
the sign said he had a clean licence, he was =0! had no work-cover honest, hard-working ('!e'and B'1! $/I'4% Kc! a )0B)#5 ! claims.” AM``!`b@!_ 355/(*/'2/4 %f ! ! As Cameron '4%('past he was musing how '$/Idrove ! !! !! !! !! ! !!!!!! 1!!he B' 5 had been looking for a franchisee in the # B) '2/4 )0 Murray Bridge area for a couple of years and despite regular advertising and interviewing a few potentials, he had not had any luck in finding a suitable franchisee.
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“I was thinking that’s the sort of person who would be a good franchisee as it takes a lot of courage to stand out there on a busy road with a sign pleading for work, and before I knew it, I was turning the car around, and going to have a chat to this guy.” The ‘guy’ turned out to be Simon Whitaker,
43, an Irish immigrant, married with three children, who had been struggling to find a job in the area for more than six months.
and even business insurance for him.”
“He was very polite, well-spoken and enthusiastic – so I told him to meet me in two hours in a local coffee shop after I’d done what I had to do, and I then formulated the plan to offer to back him in setting up the Jim’s Antenna’s Murray Bridge franchise.
“So far everything is going really well – the work in the region is being serviced and the customers are happy. The community here are all very supportive and many know the story now as it appeared in the local paper so that’s really helped as well. He’s going to be going to Melbourne soon for Jim’s Group training with all the other new franchisee, so in all respects he’s treated just like any other Jim’s Group franchisee.”
Cameron said that Simon, a former poultry farm manager, was a little unsure at first, but Cameron assured him there would be no financial risk in the short term, he’d basically be an employee for the first three months, and then if the business goes well Simon could have the option to buy or lease the franchise. “He said it sounded fantastic, but he would need to discuss it with his wife first.” Simon then met up with Cameron again a week later to say a resounding ‘yes’ to the proposal and finalise all the details. “I provided him with a vehicle, tools, and the training to get started,” Cameron explained. Other members of the Jim’s Group also helped out and provided a laptop, uniform
8 Business Franchise Australia and New Zealand
Cameron has made a solid investment in getting Simon established to begin work, and whilst he acknowledges there is some risk involved he has faith that he has done the right thing, and that not all business decisions have to be taken on a purely financial basis. “If it works out well, I’ll definitely consider doing it again for someone in need.”
Brumby’s Celebrates $10 Million in Donations The end of a busy day at Brumby’s bakeries across the country often marks what some might call the store’s most special hour. Regularly, franchisees bundle up leftover loaves for donation to various local charity groups, soup kitchens and homeless shelters.
the groups, shelters and organisations in their community that are helping the less fortunate.
Brumby’s estimates that over ten million dollars worth of bread has been donated by its 280 outlets in 2013 to local groups, including organisations like Rosies street vans and The Salvation Army.
Brumby’s donates excess bread and bread rolls to church groups, homeless and womens shelters and soup kitchens to assist in feeding the many people using the groups services.
Brumby’s Bakery Managing Director Kevin Waite said he was proud of Brumby’s franchisees for being so generous over the year. “Brumby’s has a long history of donating bread to our communities because we bake fresh every day and therefore often have excess loaves at the end of trade,” said Mr Waite. “Locally owned and operated, our franchisees are encouraged to support
“I am extremely proud of our franchisee community for donating more than ten million dollars worth of product in just one year.”
Mr Waite said local partnerships with charity groups provided stores with an avenue to make sure their products were not wasted while also benefiting the community. “It’s a sustainable solution to having leftover stock at the end of the day and provides much needed assistance for those who are less fortunate in our community,” said Mr Waite. “Donating our leftover products has become integral to many local breakfast, late night and street van initiatives as breads and bread
rolls are a filling staple food and form a great base for sandwiches, sausage sizzles and breakfast rolls.” As well as donating to local charities, Brumby’s franchisees also support the local community through various fundraisers and sponsorships year round. Brumby’s Bakery is part of Australia’s largest multi-food franchise operator Retail Food Group (RFG). With more than 105 million customer visits a year RFG owns the Donut King, Brumby’s Bakery, Michel’s Patisserie, bb’s café, Esquires, The Coffee Guy, Pizza Capers Gourmet Kitchen and Crust Gourmet Pizza franchise systems. In addition, the Company roasts more than 1.2m kilograms of coffee annually through the Evolution Coffee Roasters Group, Caffe Coffee and Barista’s Choice coffee brands.
Fastway Couriers deliver more at Christmas “One option customers have is our free re-direction service, which allows us to deliver a parcel to a customer at an alternate location. This can be completed through our website or by making contact with courier or customer service staff. Redirections in November were up 20 per cent compared to October.”
all of its 25 hubs and launched a range of new initiatives to make it easier to connect customers with their parcels. “The ‘last mile’ of the delivery is the most important for customers. Customers want convenience and security when receiving their parcels, which enabled us to trial new delivery methods,” says Richard.
The festive season hit full swing for Fastway Couriers, with parcel volumes up by 25 per cent at Fastway Couriers’ two largest depots, Sydney and Melbourne, compared to the previous year. Richard Thame, CEO at Fastway Couriers, says more than 700 Fastway Courier Franchisees across the country were flat out as delivery volumes hit their annual high. To cope with Christmas demand, Fastway Couriers put an extra 100 vehicles on the road, introduced Saturday deliveries in
Richard said there was a vast increase in customers receiving online purchases at work. “Having high value or bulky parcels sent to high rise work places has proven very popular this Christmas, especially with fashion and wine customers. This trend is so pronounced that some businesses stopped staff from having parcels delivered to work, due to time, hassle and security issues. Interestingly, I’ve also seen that some larger companies have introduced specific areas designated to couriers who are dropping off parcels for staff,” says Richard.
Fastway also launched new delivery options in December including Parcel Connect, a new way to send, collect and return parcels from your local Parcel Connect agent, working with TZ Limited to utilise A.D.A.M Parcel Lockers as an alternative delivery address for customers along with working with the new Pakman Parcel Delivery Box™, the first smart secure parcel locker for residential properties. Richard says he expects January to continue the upwards trend, with many of Fastway Couriers’ online retail clients preparing for bumper post-Christmas sales.
Business Franchise Australia and New Zealand 9
COV ER STO RY
ZARRAFFA’S
DRIVING CROSS-COUNTRY As a proudly owned Australian brand, 2013 saw Zarraffa’s Coffee expand their horizon and move out West. With the five company owned stores now up and running in WA, alongside the 64 QLD and NSW sites, 2014 is going to be an exciting year for this iconic award-winning coffee brand. With the launch of their northern-most store to date in Townsville in late 2013, Zarraffa’s forward thinking team is taking the brand further by consolidating its key territories, taking convenient coffee further north in Queensland and WA and winning over customers one cup at a time, explains Executive Director, James Barritt.
DRIVING FOR SUCCESS James explained that 2014 will see a period of sustained growth of franchise outlets across regional and northern Queensland and more opportunities to expand the franchise network across Western Australia. “Our goals remain consistent for 2014 as with previous years. This means we expect to see measured growth while consolidating on investment already made. “We are excited to have five re-branded outlets in WA which have now been trading for twelve months and are ready to be franchised as successful stores. This is testament to the systems we have in place that ensures our award winning coffee is the same, every time, whichever side of the country you are. Our focus has been to ensure we get it right, first time logistically and to invest in procedures and dedicate resources, while not getting distracted from our planned growth.” “With dedicated franchise support managers on site plus a local training facility, WA has a full support network in place and will see considerable growth in 2014.”
10 Business Franchise Australia and New Zealand
As a company that likes to give back to its franchisees, Zarraffa’s Coffee must be doing something right as their most recent franchise openings have been by multi-site franchisees. Franchisee Ben Old and business partners Dion Schultz and Nicole Luchterhand have said they feel privileged to work within a system they enjoy and look forward to continuing success with Zarraffa’s, opening the 65th store in Slacks Creek. “We always wanted the opportunity to grow inside a brand we feel so passionate about but the goal was to understand the system completely before looking to expand,” said Mr Old. “It has been an exciting three-year ride with Zarraffa’s Coffee. We have loved our time to date and now we are thrilled to be opening our doors to the only drive thru coffee on the M1 (northbound) in the Logan/Brisbane area.” Drive thru outlets have been a focus this year and have been met with enthusiasm by not only the franchisees themselves, but also the community at large, customers
are responding in droves as they seek access to the quality coffee that Zarraffa’s delivers to coffee lovers on the go. Mr Barritt explained, “Drive thru’s have been a major focus and will continue to be so. Of the last 15 stores opened, only one incorporates the traditional model with no drive thru facility.”
“Customers can be sure that the coffee they are purchasing is helping families in these communities improve social conditions and assisting to build trade relationships with lasting impacts.”
Indeed demand is so great that franchisees Jimmy and Bernadette Williams have recently opened the doors to their second franchise in Southport, almost in sight of their existing one. This capitalises on one of the Gold Coast’s main transport corridors and provides convenience to both the local community and commuters. Mr Barritt acknowledged that this was a unique expansion opportunity for the Zarraffa’s Group that wouldn’t usually locate stores so close to one another. “We understood the potential for Jimmy and Bernadette and worked with them to make it happen, once we had considered a range of factors,” he said. “In addition to being exceptional operators and combined with the fact that they will own and operate both stores, we were more than happy to support their vision for this highly visible location.”
AWARD WINNERS 2013 also saw success for franchisees Terry and Jeanette Bambury, featured on our front cover, who were awarded the coveted ‘Franchisee of the Year’ at the Zarraffa’s National Franchise Conference, held at Jupiters Hotel and Casino on the Gold Coast. Terry and Jeanette are one of the most successful franchisees within the group, receiving “Rookie of the Year’ in 2012 and recently opening their fourth store in Caloundra. Mrs Bambury has attributed their success to simple things that make a big difference, such as customer service. “To be successful you have to be committed, you can’t be afraid to talk to people. We love looking back to our first store and reflecting on what we have achieved,” she said.
THE ZARRAFFA’S FOUNDATION – STANDING TALL With a company name deriving from the Arabic word, ‘Zarafa’ which means Giraffe, the Zarraffa’s Coffee motto is to be ‘head and shoulders above the rest™’. They firmly hold the belief that strong relationships with their coffee growers are integral to the success of the company and resolutely believe in the ideal of ‘trade not aid’. Inroads have been made with new growers, such as coffee farmers at the Meru Plantation, at the base of Mount Kenya in Eastern Africa. Because of this, customers can be sure that the coffee they are purchasing is helping families in these communities improve social conditions and assisting to build trade relationships with lasting impacts. The Zarraffa’s Foundation charity will also be launched shortly, as a way to support communities, conservation and the coffee growing fraternity worldwide as well as in their ‘own back-yard’.
“We believe the secret is to always enjoy what you do, employ the right staff and work together to empower the business.”
The Foundation consolidates and formalises the work the company has already been doing and allows Zarraffa’s Coffee and their customers to give back one cup at a time.
From opening their first store in 2005 at Morayfield, Terry and Jeanette are now an integral part of the business community on the Sunshine Coast and a major employer over four sites.
Funds will be raised primarily via direct donations from customers, the franchise network and also the company’s main fundraising vehicle, the Zarraffa’s Coffee caddy.
One hundred per cent of the funds raised will go towards assisting the work of registered charities and coffee growing communities to help some of the most disadvantaged citizens and endangered animals. By supporting established charity groups, the Zarraffa’s Foundation is able to give back in a meaningful way.
FRANCHISE OPPORTUNITIES A Zarraffa’s Coffee franchise gives you the opportunity to join a successful, well established brand, with a strong support network in place. With their head office and main training academy located on the Gold Coast, all franchisees participate in a comprehensive training programme, which covers areas such as management, practical training, local area marketing and accounting. Once your store is open, all franchises undergo in-store and periodic training, while having the full support of the franchise management team. The franchise package includes full fit out of all plant and equipment, so that the franchise owner can open the doors on the first day to a fully operational business. For more information about this awardwinning franchise system and their current franchise opportunities contact: Phone: 07 5500 0800 Web: www.zarraffas.com
Business Franchise Australia and New Zealand 11
fr anch ise cou nci l of aust r a l i a
Due diligence:
taking the right steps before taking the plunge
Early in a new year is often time for motivation, resolution and change. People open a new calendar and embark on missions to clean up their finances, their health, spend more time with family and more time doing what fulfils them.
“Perhaps this year is the year you want to finally start working for yourself and building something for your future.” Perhaps this year is the year you want to finally start working for yourself and building something for your future. Franchising has proved itself time and again as a fantastic way to do just that. We’re fortunate in Australia to have one of the most robust franchising sectors on the planet. While it is a more regulated way of doing business than others, it is one that provides ongoing support, training and community for those looking to work for themselves. Done well, franchising is a win-
12 Business Franchise Australia and New Zealand
win arrangement for both the franchisee and franchisor. If you find yourself looking towards your future this month and considering investing in a well known brand to build a business for yourself, taking the plunge could be one of the best things you ever do. Succeeding in a venture you’ve poured your heart and soul into can be one of the most satisfying things in life. However, before you do, there are a number of things to consider.
“Succeeding in a venture you’ve poured your heart and soul into can be one of the most satisfying things in life.” provides a course for potential franchisees. ‘Buying a franchise - Pre-entry Franchise Education Program’ is sponsored by the ACCC and is available free via Griffith University’s website, www.franchise.edu.au.
Where do you see yourself? Once you have an understanding of the model, you can begin considering the kind of life you want to have in your new business. • What kind of work do you want to be doing every day? • Do you want to manage staff, or work on your own? • Do you believe you could generate your own customer leads, or is this something you would look for in a franchisor? • Do you want to run a retail or servicebased business? • What can you afford? • How much working capital will you need?
Understanding the business model At the outset, it is important to understand exactly what franchising is and where it fits in the Australian business landscape. The Franchise Council of Australia website (www.franchise.org.au) is a wonderful place to start your education. Here you’ll find information on the business model itself, what to look for in a prospective system, questions to ask yourself and things to consider before committing. There are also pre-entry education courses available to further enhance understanding and increase the likelihood of success for potential franchisees. Griffith University
Though it’s likely you already have a good idea of the kind of business you’d like to run, you’ll need to consider how many hours a week you want to spend working, how this will affect time spent with family, and whether your family or partner will work in the business with you. Proper consideration at this point will help you understand the kind of business that will complement your desired lifestyle and make you more likely to succeed.
What is on offer? Once you’ve reached this point, the system research can begin. Publications like this one are a fantastic resource, alongside website directories, which can assist by sorting via business type, cost and location. Along with purchase price and ongoing fees, some things to look for in a system are ongoing training, field support, marketing and back end support.
Michael Paul - Chairman, Franchise Council of Australia
understand what is on offer from each potential franchisor, but also what your obligations are, should you enter a franchise agreement with them. According to the ‘Survival of the fittest’ study released by Griffith University last year, lack of contractual understanding was one of the main factors in failure of franchisees. A key mantra of the Franchise Council of Australia is due diligence for potential franchisees. This means understanding your obligations under a franchise agreement, comparing similar businesses, understanding your legal obligations under the Franchising Code of Conduct, understanding what you can afford, and what will be required in both time and working capital. The FCA strongly advocates seeking the services of legal and accounting professionals, as well as sound business advice before entering an agreement. As a prospective franchisee, there is plenty of work to do before setting foot in your own business. However, the more prepared you are, the more attractive you’ll be to a franchisor, and the far more likely you will be to succeed. Start your research today! Web: www.franchise.org.au
It’s incredibly important not only to
Business Franchise Australia and New Zealand 13
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WESTPAC NEW ZEALAND FRANCHISE AWARDS 2013/14 Coffee Serves Up A Double Again!
Supreme Winners Westpac Franchise System of the Year and Westpac Franchisee of the Year L to R Andy Lucas, The Coffee Club (NZ) Ltd; Ivy Joe, Franchisee of the Year, The Coffee Club, Bethlehem, Tauranga; TVNZ personality and MC for the evening, Wendy Petrie; Brad Jacobs, The Coffee Club (NZ) Ltd.
The Westpac New Zealand Franchise Awards, held at the Crowne Plaza Hotel, Auckland on 16th November and attended by more than 200 members of FANZ and their guests, is the annual showcase for outstanding performers in franchising and suppliers to the franchising sector. Once again, these awards attracted a quality entry and all those who reached finalist status were commended by the judges. The Westpac New Zealand Franchise Awards entries are independently evaluated and judged under the internationally recognised Baldrige criteria for business excellence and administered by the New Zealand Business Excellence Foundation. The Franchise Export Award receives additional judging by New Zealand Trade & Enterprise.
The Coffee Club Team pose for photos
14 Business Franchise Australia and New Zealand
The highly contested Supreme Franchise System of the Year award went to The Coffee Club Franchising (NZ) Ltd., who for the second year in succession, took out both the category and the supreme awards. In the judgesâ&#x20AC;&#x2122; opinion, The Coffee Club is a sound franchise system which truly sets the benchmark. They have taken yet another step up from last year with
“We know the importance of businesses of all sizes to the economy – that’s why we’ve sponsored these prestigious awards for 19 years.” further development in their approaches to understand and respond to customers. They have also clearly taken on board previous feedback to continuously improve their business systems and reporting and have used it to further grow their franchise system. The Coffee Club’s approach to align the strategy, structures and processes in their business is approaching ‘role model’ level. The Supreme Franchisee of the Year Award was again won by The Coffee Club, Bethlehem. The judges commented that the Coffee Club Bethlehem continues to be a standout franchisee. They maximise the strong business systems and reporting information of their franchise system. They combine this with a comprehensive understanding of their customer base and innovative approaches to customer relationships. Operating in a small and competitive environment, the attention to detail of The Coffee Club Bethlehem is second to none and is a deserving winner for the second year in a row. Ian Robertson, Chairman of FANZ said, “This event allows us to recognise excellence by awarding those members of the Association who have had their business evaluated and judged using the key performance measures within the internationally recognised Baldrige criteria for business excellence, whether as franchisors, franchisees or as service providers within the franchise community. In entering the Westpac New Zealand Franchise Awards each entrant opens up their business to the scrutiny of the evaluators and judges. Through this process those entrants learn more about their business; its strengths and its weaknesses, which in turn enables them to better chart their roadmap for on-going success. Joy Marslin, Head of Private Wealth Management, Westpac New Zealand Ltd. commented, “We know the importance of businesses of all sizes to the economy – that’s why we’ve sponsored these prestigious awards for 19 years. Over that time we’ve seen the franchising industry
grow, develop and enhance its reputation both domestically and internationally. Franchising is a key driver of growth in New Zealand and an important part of our economy – and we’d like to congratulate the Franchise Association of New Zealand for the partnership we’ve now built up over many years. It’s a real tribute to the industry that so many franchises entered this year’s awards and that a number were also acknowledged in the various local Business Excellence Awards around the country.
Mike Watson, Chief Executive Officer of the New Zealand Business Excellence Foundation said that the judges had been impressed by the commitment to customer service and the entrepreneurial spirit and leadership displayed by the applicants. The evaluation and judging process provided a valuable insight into the health of the industry and there were inspiring stories being told, coupled with the achievement of some exceptional results. In spite of the challenging economic climate the Franchising sector continues to evolve and grow.
Business Franchise Australia and New Zealand 15
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The 19th Westpac New Zealand Franchise Awards Winners: SUPREME AWARDS Westpac Franchise System of the Year – The Coffee Club Franchising (NZ) Ltd Westpac Franchisee of the Year – The Coffee Club, Bethlehem
CATEGORY AWARDS Business Services Franchisee of the Year – sponsored by KGA Limited Paramount Services Ltd. Bruce Mildon – Hawkes Bay Business Services Franchise System of the Year – sponsored by KGA Limited Paramount Franchise Services Ltd. Food and Beverage Franchisee of the Year – sponsored by Super Liquor Holdings & Lion The Coffee Club – Bethlehem Food and Beverage Franchise System of the Year – sponsored by Super Liquor Holdings & Lion The Coffee Club Franchising (NZ) Ltd Highly Commended - BurgerFuel Home Services Franchisee of the Year – sponsored by Franchise New Zealand magazine & website V.I.P. Home Services Mount Maunganui Home Services Franchise System of the Year – sponsored by Franchise New Zealand magazine & website Green Acres Franchise Group Lifestyle Services Franchisee of the Year – sponsored by Waipuna Hotel & Conference Centre Just Cabins – West Coast Highly Commended – SKIDS Willow Bank and Sancta Maria Lifestyle Services Franchise System of the Year – sponsored by Waipuna Hotel & Conference Centre Just Cabins Ltd. Retail Franchisees of the Year – sponsored by Franchise Accountants Mister Minit – The Palms and Shore City (Joint Award) Retail Franchise System of the Year – sponsored by Franchise Accountants Minit New Zealand Ltd.
SPECIAL AWARDS Franchise Exporter of the Year Award – sponsored by MacDonald Bailey Law BurgerFuel Service Provider of the Year Award – sponsored by Westpac New Zealand Franchize Consultants Emerging Franchise System of the Year –sponsored by Silver Chef Ltd. Pack & Send New Zealand Highly Commended – Refresh Renovations
16 Business Franchise Australia and New Zealand
FC_
Meet the team
GO TO OUR NEW WEBSITE
fcbusinesssolutions .com.au
Business Franchise Australia and New Zealand 17 FC_A4Adver[2012].indd 1
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profile : E x a
Competitive edge taken to a whole new level “It’s not the strongest or the most intelligent who will survive but those who can best manage change.” - Charles Darwin How does a company set themselves apart in an industry with over 30,000 direct competitors? With strong belief systems around Strategy, Expertise, Operations, Execution and Franchising. Exa is in a unique position to be a specialist in every aspect of online marketing and digital solutions. They have long believed in offering businesses end-to-end strategy to help them drive leads and increase their revenue through this ever evolving channel. Other companies may provide solutions as a sideline to their core service; however, Exa has developed a breadth and depth of expertise to ensure online success across all platforms including social media, mobile phone apps, micro websites, e-commerce, copywriting, 24/7 support services and internet security. Their digital strategy sets to take businesses to the next evolution of online marketing. They have the most customer-focused staff with relevant and extensive experience, producing outstanding work day in, day out, alongside project managers, designers and developers all driven to deliver quality online solutions.
Exa’s signature asset for product delivery is their framework. It is the most advanced backend web development system in the industry and is designed to be adapted as a client’s needs change and grow. Complementing the framework is an SEO service like no other. WebMagnet has been developed over the years to the highest level of sophistication. SEO is more than just a series of keywords. Taking a holistic approach to deliver the highest search engine rankings with the most qualified visitors to the sites they develop, Exa believes in the ongoing service of WebMagnet to keep abreast of Google’s use of regular algorithms. Exa understands these systems completely and keeping up with Google’s updates help businesses maintain a strong search engine ranking and avoid punishment. In a rapidly growing and dynamic industry, opportunities are endless for a digital solutions provider with the right tools. Many small providers claim they can build a website, providing such “website in a box” services, but the reality is, most of these providers have neither the expertise nor the resources to meet the multi-dimensional needs of a business. Exa’s aim is to help businesses grow, and have come to understand that as their clients grow, then so do they. To meet this growing demand in digital and online solutions, Exa decided that the best way to service the needs of Australian
18 Business Franchise Australia and New Zealand
businesses was through developing a customer service/sales based franchise model. Managing Director of Exa, Peter Ball said, “For many years we have been developing cutting edge websites and online marketing capabilities, and Exa clients are seeing tremendous results for their business. New clients are coming to us based on our longstanding reputation of delivery and value. Our new franchise program will enable us to expand our footprint across Australia and help a larger number of business owners achieve their online objectives. In addition, it will give us greater reach and speed in introducing cutting edge solutions to clients. We are constantly innovating to keep our techniques and systems ahead of the game, in a market where scale and know-how are critical in keeping our clients positioned to optimise the online aspects of their business. “Franchising allows us to ensure we partner with motivated specialists to deliver our industry leading solutions to a greater number of sectors, while strengthening our relationship with existing clients. It’s an exciting time in the industry for Exa, our franchisees and our clients as we grow our businesses together.” If you are interested in joining Australia’s biggest digital solutions agency, contact Biljana Stephens at: Phone: 03 9092 6699 Email: biljana.stephens@exa.com.au Web: www.exa.com
GET THE COMPETITIVE EDGE The success of our customers is what fuels our obsession with innovation. Our unique digital strategies give customers an advantage that no other company can offer, and when we develop something that works, we immediately start working on taking that competitive edge to a whole new level. Giving our clients the advantage in an ever-changing environment is what differentiates Exa. The success of our customers pushes us to keep innovating, to be trend setters rather than followers and not to fall into the trap of a “one solution fits all” ideal. Exa’s signature asset for product delivery is our framework. It is the most advanced backend web development system in the industry. It is designed around a completely modular architecture that can be adapted as a client’s needs
change and grow. It is complemented by our patented, highly sohisticated and effective WebMagnet Search Engine Marketing tool. To meet the growing demand in digital and online solutions, Exa has decided the best way to service the needs of Australian businesses is through developing a customer service/sales based Franchise model. For more information or to make an enquiry about this unique franchising opportunity, contact Biljana Stephens at biljana.stephens@exa.com.au or call us on (03) 9002 6699. www.exa.com.au/franchise
Australia’s Biggest Digital Solutions Agency
www.exa.com.au
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Do you invest in managing your reputation as well as building it?
Justin Flaherty - CEO, Horizon Communication Group
The most important component of any business is brand reputation. Weâ&#x20AC;&#x2122;ve all seen companies crash and burn because of a situation theyâ&#x20AC;&#x2122;ve been unable to manage - the media took control, the story was out and the brand reputation was seriously damaged.
20 Business Franchise Australia and New Zealand
You have invested heavily in building your brand so it is essential that you also invest in managing its reputation. The question is, do you have the systems in place to support and monitor issues and respond to them should they arise? The nature of franchising, unlike a corporate structure, means you donâ&#x20AC;&#x2122;t have total control of your brand and when you add the power and speed of social media, it suddenly becomes a very challenging environment. This may start to sound daunting, but with good planning and robust systems franchise businesses can have a great base from which to monitor reputation on a daily basis. This can ultimately give you great strength
“Don’t leave it to chance when an issue arises – take action immediately. This is the key to brand management and securing your reputation.”
This can include areas such as workplace relations, as well as franchisee and franchisor relations, OH&S standards, customer relations and environmental responsibilities, to name but a few. 2. Assess the probability that any of these issues could happen and what impact they would have Using a simple matrix, plot the potential issues based on the probability of them occurring and the impact those issues could have on your business if they did. The matrix is an excellent tool for allowing you to see what areas need to be monitored and areas that are potentially high in risk. Comparing these risks against the impact will also help you to see what damage could be inflicted on the business if the right measures aren’t taken. 3. Create a system to manage and respond to the most likely issues Here are some of the steps you can follow to create a response system: • Define the issue/situation • Which stakeholders are affected? • What facts are known? • What facts are needed?
So what can you do to manage your brand’s reputation? You need to stay on top of the game. To help you we’ve identified ten key areas to concentrate on to ensure you create the most effective reputation management plan for you and your business. 1. Identify all the potential issues in your business Gather together key team members in all areas of your business and brainstorm any and every issue that you think could occur
There is nothing worse than one of your franchisees finding out about an issue with the brand through the media, so make sure they are top priority. 5. Establish clear guidelines for all your franchisees
in your business – if you can think of it then it could happen.
in building and maintaining reputation management plans.
the situation and the company stance
• Who is best placed to comment on this issue? • What is the desired outcome? • Decide on a response strategy • Develop the key messages • Draft statements - including media statements • Consider how best to engage other stakeholders • Agree on a spokesperson. 4. Talk to your franchisees If an issue does arise, the aim is to contain the impact through effective internal and external communication. For the franchisor this means communicating quickly to franchisees, clearly outlining
Franchisees should have communication guidelines that clearly define the boundaries for scope of media and public comment. The guideline should outline who franchisees and their employees need to defer enquiries to within the organisation should an issue arise. Construct a document with the guidelines outlining what your franchisees need to do to if an issue presents itself, how to deal with it if it’s minor and what to take on board as a learning tool to make sure it doesn’t happen again. 6. Employ an external facilitator You may also like to appoint a communications facilitator to run the management team through a series of desktop scenarios of high probability situations. By identifying risks, franchise guidelines can then be put into place which will address and prevent each item before it does become an issue. Many businesses tend to only identify potential risks and issues which sit on the obvious. Companies can overlook areas that an outsider might see as a blinding potential issue 7. Understand the difference between responsibility and liability Depending on the level of risk a franchise network faces there is the opportunity to implement further tools to equip franchisees through tailored communication training sessions. This includes scenario and dialogue training and creates a valuable time to highlight a common issue that often leads to reputation damage – responsibility versus liability. An area of contention, which has been the reputation downfall for many businesses, includes instances of significant brand damage for those who have ignored their moral and ethical responsibility, instead believing that they will not be liable legally. This approach ignores the power of public
Business Franchise Australia and New Zealand 21
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“Depending on the level of risk a franchise network faces there is the opportunity to implement further tools to equip franchisees through tailored communication training sessions.” opinion which more often than not will side with ethics and morals rather than the legal team.
9. Debrief and evaluate
8. The importance of a timely response
Don’t leave it to chance when an issue arises – take action immediately. This is the key to brand management and securing your reputation. It reflects well on the company and indicates that you care. Social media and online news sources require an almost instant response. Gone are the days of being able to wait until the paper goes to print or the evening news airs, news is now immediate. Therefore, your response needs to be immediate too. Preparing a standard issues management media release is always a recommended method in securing your response is fast. An issue arises, it’s leaked out to the public and you can have a response ready and waiting to go.
After any incident it is essential that you hold a debrief with your issues team. Review all steps in the process, the actions and the outcomes. Like all good systems they need to be constantly reviewed and improved. In some cases an issue may result in a change to your operations, policies or staffing – so it is essential that you debrief both the process and the actions with key stakeholders.
Some good must come from any disruption to your business.
Address your reputation management now and you’ll be safe in the knowledge that you can face anything that may come your way, instantly.
10. There is no time like the present
One of the biggest mistakes businesses make with reputation management is that
22 Business Franchise Australia and New Zealand
they don’t make it a priority. Often it isn’t until the issue comes knocking on the door that a company will spring into action and, by this stage it is already too late – the brand has been damaged.
The best advice I can give any franchise network is to address their reputation management now – so it doesn’t become an issue in the future.
Horizon Communication Group is a multi-award winning Public Relations agency based in Sydney, Melbourne and Brisbane. For ten years, Horizon have been successfully advising and working with a number of high profile franchisors. Justin Flaherty is the CEO of Horizon Communication Group With over 10 years of experience working with some of Australia’s leading franchise brands Justin, and his team at Horizon, have the knowledge and understanding of the needs and challenges of working across the franchise sector For more information please contact: Phone: 02 8572 5600 Email: Justin@horizoncg.com.au Web: www.horizoncg.com.au
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Solid Foundations
for Franchise Success I have been privileged to be part of the franchising industry for over 20 years. It’s rich, vibrant, diverse, and provides opportunities for people to fulfill a dream, to own a business. Though franchising provides a platform for success, there are however many moving parts that need to work in harmony for
a franchise system to achieve collective success.
The Interdependent Franchise Relationship One of the very unique elements about franchising is the franchisee/franchisor relationship. It’s completely interdependent, meaning the success of one fully depends on the other. Complex and dynamic; this relationship is fragile and destructive at its worst and like the most beautiful orchestra as its best. Prospective franchisees often misunderstand
24 Business Franchise Australia and New Zealand
this notion of interdependency. Seduced by the security and support franchising offers, they can become dependent on the franchisor without realising the hard work is up to them. On the flip side, many franchisees see themselves ‘running their own business’ independent of their franchisor. In franchising, you’re in business together, but you also need to stand on your own feet. The fact is, the franchisor has spent years of time, money and soul developing their brand and system to allow franchisees the opportunity to be successful. Usually, the most successful franchisees tend to be the
“A franchisee’s success is ultimately up to them, they must take responsibility.”
ones fully maximising the brand and the systems provided by the franchisor.
Five Important Things About The Franchise Relationship 1. Both the franchisee and franchisor have clear responsibilities in the relationship 2. Franchising is a business partnership, franchisees and their franchisor are not family or friends 3. Franchisees must give up some of their innovative spirit as they must diligently follow the system 4. Franchisors have an obligation to ensure franchisees are following the system to protect the brand 5. A franchisee’s success is ultimately up to them, they must take responsibility.
Rigorous selection and training I am known to ‘bang on’ about these two areas because I have witnessed firsthand the significant consequences when these critical foundations are overlooked or haphazardly executed. A fair, rigorous and transparent selection process should be praised, welcomed and respected by both prospective franchisees and franchisor team. Franchisors shouldn’t apologise for rigour during their selection process. It is their right and responsibility to their stakeholders to bring the right franchisees into their system. Equally, prospective franchisees must see this selection process as two-way. They need to critically assess whether the brand, culture, values, product, franchise tools and system, leadership team, training and support are aligned with theirs. If they’re not aligned, even if you absolutely love the product, it’s not the right system for you. Initial training should be as grueling as running a business. It’s hard work and the long operational hours whilst juggling other business issues is a taste of what running
a business will be like. Franchisors must also include ongoing training in the areas of people leadership and financial management as it’s often the back end of the business where franchisees will flounder or fail.
If it is to be, it’s up to me!
Debb Meyer - Narellan Pools
Many franchisees mistakenly believe that owning a business provides more flexibility and a great ‘lifestyle’, where they work less hours and take it easier than when having a job. This is delusional! You will never work harder, longer, more intensely and with more stress and risk than with your own business. When you’re a business owner, the buck stops with you; you are accountable for everything. Franchisees must work hard. I have seen those that don’t work hard or put in the necessary hours, they cut corners or refuse follow the system then blame the franchisor for their poor performance. This comes back to the understanding of both the franchisee and franchisor’s responsibilities in the franchise relationships. The franchisor provides the system; the franchisee must work the system, hard! Owning a business will test you in ways you never thought possible. Ask yourself, “how hard am I willing to work, how far am I prepared to go, to achieve success?” It’s rare everything works in harmony for long periods of time. Often, just when you think you’ve got the business humming, something will fall over!
Four Franchisee Success Factors 1. Passion And Positivity What does passion look like in franchisees? It’s an energy that radiates within them, their eyes shine and there is a bounce in their step. Of most importance is their glass is half full; they are positive and take ownership of themselves and their lives rather than blaming others. Their energy and positivity is contagious
and their team reflect this behaviour. As committed brand ambassadors they do everything and anything to build and protect the brand. In my time at McDonalds, it was ketchup in my veins, today its chlorine! Passion is also fight. It’s easy to be passionate when things are going well, but what about when they’re not? Truly passionate and positive people have the fight they need to grind away in tough times. It’s the combination of energy, positivity, taking ownership, together with the drive and fight to grind away that realises true success. 2. Customer Obsession Successful franchisees are obsessed with their customers. I call it ‘obsession’ because they are fixated on giving customer’s the world’s best service and support. They understand their whole business rests with the customer, that today’s customer is savvy and educated and needs to be treated accordingly. Successful franchisees are closely connected with their customers in a multitude of ways. Customers like nothing more than talking directly to the ‘owner’, so ask them what they like about your business and if there are things they can see for improvement. 3. Effective Leadership skills People are the key ingredient to your success. Leading people is one of the most rewarding yet challenging things you do as a business owner. In today’s environment,
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“In franchising, you’re in business together, but you also need to stand on your own feet.”
it’s not enough to just train, you need to truly engage your people. Leaders with a true desire to develop great people in their businesses are the ones that fully realise their dreams. I often witness tension between young people and franchisees. Generation Y are becoming increasingly important and influential. They want to be involved, engaged and have been brought up to have an opinion. The most successful franchisees are embracing the innovative and courageous attributes of our youth and having great success. One particular franchisee has Strategic Partnerships with some of his people, the youngest being just 22! Trust people and embrace the opportunity to allow them to have ‘ownership’ of their role. Use the people structures, tools and resources been provided to you by your franchisor. Allow yourself to be pleasantly surprised by how amazing your team can be once they have the direction, ownership
and environment to shine! 4. Solid Support Network Successful franchisees have a solid support network at the crux of which is the unwavering support of a partner. If your partner is an active part of the day-today operation, have clearly defined roles, responsibilities and accountabilities where you operate like business partners first and foremost. Even if your partner isn’t an active day to day participant, ensure they have been engaged in the decision to buy the franchise, the life and business planning process and of course the successes. It’s also effective to have them attend franchise meetings, forums and conferences. Running a business will bring you the highest of highs and the lowest of lows, however having a rock solid life partner will certainly ease the load and make it worthwhile.
26 Business Franchise Australia and New Zealand
Debb Meyer is the 2013 Franchise Council of Australia’s National Franchise Woman of the Year. Having held senior leadership roles with McDonald’s, Foodco and Krispy Kreme, to an Associate with the Franchise Relationships Institute, she is now leading global brand, Narellan Pools with her husband Chris. Narellan Pools are dedicated to their franchisees success spending more than a decade developing a successful and sustainable business model. Their systems, tools, training and support are the best in the swimming pool industry and they are constantly seeking ways to be even better. For more information about becoming a franchisee contact Lauren Smith: Email: laurenS@narellanpools.com.au Web: www.narellanpools.com.au
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Business Franchise Australia and New Zealand 27
Spotlight on Service : N ATI O N A L FR A NCHISE I NSUR A NCE B RO KERS
Another successful year for NFIB “We are also proud to announce that we will soon be represented in New Zealand by one of the largest broker networks in that country.” they offer a web-based insurance platform that has been designed exclusively for all kinds of franchised businesses around Australia. What’s central to NFIB’s success is two-fold: inexpensive insurance premiums regardless of the franchised business being insured, and the ease at which a franchise business can insure their business. NFIB Executive Director Darryl Morris
Having recently been announced as a finalist in the Telstra Small Business Awards and after another year attracting more and more of Australia’s best known franchise businesses, National Franchise Insurance Brokers (NFIB) is fast becoming an insurance force to be reckoned with. “Our goal has always been to penetrate the market with the most competitive insurance premiums for franchised businesses, and that goal is now beginning to be realised,” said NFIB Executive Director Darryl Morris. “And our recent nomination for the Telstra Small Business Awards really is the icing on the cake.” For those of you not familiar with NFIB,
“Four clicks of a computer mouse to get a franchised business covered is what we’ve always promised,” said Mr Morris. “And that’s precisely what we’ve delivered.” What makes insuring with NFIB so easy is the fact that there are only four basic pieces of information required in order to arrange cover for a franchised business: 1. The replacement of plant, equipment or stock 2. The gross profit of the franchised business 3. The level of public liability required by the franchised business 4. Whether machinery breakdown is required by the franchised business Plus, there isn’t any paperwork or forms to complete and there are no signatures required. It really is quite a simple and ingenious process. “We spend a great deal of time and effort travelling around the country speaking to both franchisees and franchisors and their feedback is extremely positive,” said Mr Morris. “Our online system allows the franchisor to make sure that all of their individual franchisee’s businesses have adequate insurance cover. From the franchisee’s perspective, our ability to ‘bulk buy’ insurance cover means their costs are
28 Business Franchise Australia and New Zealand
significantly reduced when compared to what they may have paid for insurance in the past.” The NFIB business model has been so successful that the group has now ventured abroad with the recent launch of Worldwide Franchise Insurance Brokers or WFIB. “We are continuing discussions with insurance brokers in the UK, Europe and in both North and South America. We are also proud to announce that we will soon be represented in New Zealand by one of the largest broker networks in that country. This is the first partnership formed offshore and we are confident that this union will assist local and regional franchises in New Zealand to take advantage of the ease and simplicity in purchasing their insurance programmes online.” Mr Morris said that he strongly believes that the future of the business lies in his group’s ability to provide the cheapest insurance costs available. “We all hate getting insurance premium renewals. That’s a fact of life. People want the most adequate cover for the lowest possible price – it’s as simple as that. What we’ve focused on from the beginning and what is still central to everything we do today is to make sure our customers save money on their business insurance,” Mr Morris said. For more information about National Franchise Insurance Brokers please contact Darryl Morris or Brad Dixon. Phone: 1800 776 747 Email: info@MYNFIB.com.au Web: www.MYNFIB.com.au
WE CAN SEE THE FUTURE OF YOUR BUSINESS. YOU ARE ABOUT TO SAVE MONEY ON INSURANCE. �anks to NFIB, the future’s looking extremely good as far as your franchised business insurance costs are concerned. �anks to our highly simplified online system together with our reduced premiums, we are fast becoming the preferred insurance provider for Australian franchised businesses.
To find out how you can insure your franchised business in just four clicks of a mouse, speak to Brad Dixon today on 1800 776 747 or email info@mynfib.com.au
MYNFIB.COM.AU National Franchise Insurance Brokers Pty Ltd is an authorised representative (ARLN 277977) of LTM Group Pty Ltd (AFSLN 245374)
NFI085BUSINESSFRANCHISE
Business Franchise Australia and New Zealand 29
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Franchising supply arrangements and the ACCC Franchise supply arrangements come in many forms, and must comply with the requirements of the Franchising Code of Conduct and not breach the Competition & Consumer Act, both of which are enforced by the Australian Competition and Consumer Commission.
Dr Michael Schaper - Deputy Chairman, ACCC
Exclusive supply arrangements are common place in the world of franchising. Having control over the way in which franchisees operate is central to the success of a franchise system. From secret spices through to software systems and cleaning products, supply arrangements enable franchisors to maintain consistency and efficiency across the network. But supply arrangements can also be a source of friction. Franchisees often question why they are required to purchase a product from an approved supplier when they can buy the same product cheaper elsewhere. Franchisees may also become disgruntled if seemingly reliable supply arrangements are changed by a franchisor without consultation.
In some cases, franchisors set quality standards and allow individual franchisees to source goods or services from any supplier which are up to scratch. Arrangements of this kind will only raise concerns under the Act if they have the purpose or likely effect of substantially lessening competition. This is generally unlikely to occur where there are a number of businesses who compete with the franchisees or the suppliers to the franchisee. However, in many other systems a franchisor will require franchisees to purchase goods or services from a particular supplier or from a list of nominated suppliers. These types of ‘exclusive dealing’ arrangements may be ‘third line forcing’ which will breach the Act even if the conduct will not harm competition. In general, requirements to purchase from a certain supplier are often part and parcel of a franchise. After all, customers will expect that the goods they buy are of the same standard and type, right across the same franchise system. To ensure this, it is commonly accepted that minimum standards will often be imposed by a franchisor. A franchisor who wishes to engage in third line forcing can formally ‘notify’ the ACCC of its arrangements, which provides it with protection from legal action under the Act. The ACCC may only remove this protection if it believes that the public detriments
30 Business Franchise Australia and New Zealand
arising from the arrangements outweigh the public benefits. A decision about this is based on the impact of the exclusive dealing on the entire community, and not just on the franchisees themselves. What may be an annoying restriction to an individual franchisee, such as a requirement that you only buy your raw material from a certain supplier, can also be a benefit to consumers who are then assured of always getting the same quality end product or service. For these reasons, it is rare for the ACCC to take action to revoke these arrangements. Of course, if there was a substantial public risk or detriment – such as a franchisor requiring franchisees to purchase products that didn’t meet minimum safety thresholds – then the ACCC will revoke them. Another issue is that of rebates. Some franchisors may enter into arrangements where a nominated supplier will provide the franchisor with some kind of financial benefit when franchisees purchase goods or services from that supplier. This is not illegal: there is no outright prohibition under the Act against rebate arrangements. And when an exclusive dealing arrangement is notified to the ACCC, the mere receipt of rebates by a franchisor is not automatically deemed to be a public detriment when the ACCC assesses the matter. Nevertheless, the receipt of rebates by a franchisor can be a contentious issue in some franchise systems. Many franchisees object to rebates, as they consider the franchisor may select a supplier based on the expected value of the rebate rather than whether the supplier will deliver the best value for
franchisees. Franchisees also argue that rebates may increase the cost of goods or services they are required to buy. Franchisors consider that rebates are an essential part of their operating model. They often point out that these financial payments can be used to support national marketing campaigns or reduce other fees that franchisees would otherwise need to pay. The receipt of rebates by a franchisor from nominated suppliers is a complex issue, and it can be difficult to establish whether these arrangements provide net benefits or detriments to the franchise system or the general public. The Franchising Code of Conduct requires franchisors to disclose whether they will receive a rebate or financial benefit from the supply of goods or services to franchisees, as well as the name of the business providing the rebate or financial benefit, and whether
“Franchisees often question why they are required to purchase a product from an approved supplier when they can buy the same product cheaper elsewhere.” the rebate is shared directly or indirectly with franchisees. However, there is no legal requirement for franchisors to disclose the value of the financial benefit or to distribute that benefit amongst franchisees. If you are in the process of signing up to a franchise system, study the franchise agreement and disclosure document carefully. Make sure that you are fully aware of and comfortable with the requirements regarding suppliers and any rebates that franchisors may receive. The ACCC also encourages franchisees, including prospective franchisees, to speak with franchisors regarding any concerns they have about the supply arrangements for their franchise system.
The ACCC has recently published a new guide to help franchisors and franchisees better understand the ACCC’s role under the Competition and Consumer Act 2010 in assessing certain types of franchising supply arrangements. The ACCC’s website contains information about the notification process and the obligations of franchisors under the Franchising Code of Conduct and the Act. We also maintain a public register of all notifications we receive which is also available on our website. Franchisors and franchisees can also call the small business helpline on 1300 302 021. Dr Michael Schaper is Deputy Chairman of the Australian Competition and Consumer Commission.
Business Franchise Australia and New Zealand 31
Fr a nchisor in D ep th : FROG REN T
A LIFELINE TO A BRIGHTER FUTURE
AND A CROAKING GOOD FRANCHISE â&#x20AC;&#x153;Frog Rent has been established to create a best practice property management franchise that caters for both landlords and tenants.â&#x20AC;?
Launched in Queensland in 2013, Frog Rent are THE Property management specialists and looking to expand across the whole of Australia. Recognising that poor communication, inconsistency, substandard service and poor attention to detail were ongoing problems within the property management sector, a need was recognised for a business whose sole focus was managing properties in the best manner possible, thus the concept of Frog Rent was realised.
Join the Winning Team_A3 to A4_PRINT.indd 2
32 Business Franchise Australia and New Zealand
Frog Rent directors include Greg Gardner and Darren Wallis (GJ Gardner & Smith & Sons Franchise Systems), Len West and George Tsolozidis (Stacks of Snacks Franchise System) and Luke Godwin (Team Godwin Real Estate). The directors are
long term and successful businessmen with widespread links and experience in franchising, property and the real estate industry. Greg Gardner, owner of GJ Gardner Homes and Director of Frog Rent says, “I am a massive fan of franchising and from our past successes believe we have developed a successful system that benefits everyone involved. The industry is ripe for a national brand focusing on just property management and we have had many comments already from people within the industry saying it is exactly what the industry needs.”
Why consider a Frog Rent franchise? If you have that dream, where you are in a situation that your skills, expertise and hard work benefit you, instead of someone else, Frog Rent may be the perfect opportunity for you. Most people have that dream and then for a variety of reasons, never fulfil it. The difficulty with most great things is the implementation of the dream. “Frog Rent is not a real estate company with a property management arm, our entire focus is property management and we have developed a national brand that brings professionalism and consistency to a fragmented industry,” explains Darren Wallis, also owner of GJ Gardner and Director of Frog Rent. “What sets us apart is a strong national identity along with the benefits that franchising brings to a business. “Add to this exceptional marketing, structure, resources, training and support plus the
latest in IT systems and Frog Rent allows franchisees the opportunity to successfully start their own business.” One of the basic necessities of life is shelter and irrespective of the economy, weather, or political conditions each of us needs a home to call our own. Landlords and tenants complain of inconsistency and lack of professional standards, within one property management office, let alone across the industry. Frog Rent has been established to create a best practice property management franchise that caters for both landlords and tenants. With a strong training and educational focus on their business, Frog Rent ensures that their property managers are not only demonstrating best practice, but that they have consistency across the business.
What makes Frog Rent different from the others? Principally Frog Rent ONLY handle property management, they do not conduct sales, so their entire focus is the management of rental properties. Traditionally real estate offices have property management as the forgotten part of their business, tucked away at the back of the office, managed by a junior staff member. Frog Rent brings a professionalism and consistency to property management across Australia. Landlords and tenants often voice their frustration with the lack of communication, inconsistency in management and operations and an inability to follow up, with any concerns or problems. “When property owners come to Frog Rent,
they’ll know that they’ll get good customer relations and that we’ll look after them, their property and will do all the things that we’ve set out to achieve. We know what makes a good property manager and the industry is ripe for Frog Rent to come along and put professional systems in place so that tenants and landlords get a consistency across the country,” said Darren. Franchising is a success because when done well, it can provide a business framework to franchisees, enabling them to create a successful and profitable business. Frog Rent proudly provides that framework. Frog Rent has identified the best practice and operations for a successful property management business. They have created the systems, forms, software, Intellectual Property, branding and management to assist their franchisees to achieve success providing quality property management to their landlords and tenants.
Could you be a Frog Rent franchisee? Frog Rent franchisees will come from four distinct groups: • Existing independent property management agencies looking to rebrand and enjoy the benefit of operating under the Frog Rent brand, name, logo, signage and group exposure. • Established large real estate agencies that wish to hive off their property management business. • Existing property managers who want to 13/10/13 expand their business but don’t have the systems in place and want to be able to do it cost effectively and controllably.
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Business Franchise Australia and New Zealand 33
Fr a nchisor in D ep th : FROG REN T
“If you have that dream, where you are in a situation that your skills, expertise and hard work benefit you, instead of someone else, Frog Rent may be the perfect opportunity for you.”
• New people to the real estate industry. This type of franchisee will benefit from the additional training offered that will allow them to obtain the required real estate property licences. All franchisees will receive a standardised level system of excellence that has the key components of professionalism, uniformity, best practice and compliance allowing them to develop their business and take it to the next level.
the ongoing support and assistance from the National Office, Online reference library and Master Franchisee and Frog Rent will guide franchisees through all of the processes to run a professional, profitable property management business.
Frog Rent goes to great lengths to ensure they recruit the right people. Once the Franchisee Agreement is signed, the Frog Rent franchise commences. Assistance is given with finding suitable office space, if the franchisee does not already have a suitable office, using the Frog Rent style guide for office signage, layout, colours etc along with support regarding full set up of the office.
The Aussie Way
If the franchisee does not already have a Real Estate licence, Frog Rent will then arrange for the franchisee to complete the necessary course to attain this along with a five day full time Frog Rent training course, held in a dedicated training centre in Brisbane, with full training on the operation of a Frog Rent franchise. Once the office is opened, three days onsite training is given on the set up and operations of software, systems along with the recruitment of new properties. Add to this
Part of the Aussie way of life is ‘doing your bit’ and Frog Rent is a proud supporter of the charity Lifeline. Frog Rent franchisees and their staff are a vital part of Australian’s lives. They see firsthand the pressures and strains on individuals, families and relationships and to that end they support this great Australian charity and the work they do to help all Australians in crisis by providing access to crisis support and suicide prevention services while relying solely on community support. “The Directors want to give something back to the communities that we work within so closely and this seemed the ideal charity for us to get involved with. Dealing with homelessness and families in crisis, this is a charity that tied in well with what Frog Rent do,” explained Darren.
34 Business Franchise Australia and New Zealand
Frog Rent donates a contribution from the management fee of every single property that they manage in Australia, every month to Lifeline. The money given is untied and is used at the complete discretion of the Lifeline organisation, in their work across the country. Further to this monthly donation, Frog Rent organise for any abandoned household items, left by tenants, to be delivered to the closest Lifeline Shop. These items, if suitable will be given to the one of more than 260 Lifeline retail outlets across Australia. If you are currently working within property management and want to step up and join Frog Rent or simply looking for a new business venture with all the support and systems in place to assist you in becoming a business success, contact Rent Frog now on: Phone: 1300 783 658 Email: admin@frogrent.com.au Web: www.frogrent.com.au
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PROFILE : Snap- on Too ls
A flying start for Ben “It’s not like a job at all. I just go out and have fun and make money doing it - it helps that I’m selling a product I believe in and have always loved.” Ben has now been at Snap-on for almost six months servicing the territory of Rocklea in Brisbane, an area with an excellent spread of customers who deal in everything from auto mechanics to earthmoving. While it’s early days, he can’t speak highly enough of the support provided by Snap-on in helping him find his feet. “The training and guidance that Snap-on has given me has been unbelievable. It has blown me away,” Ben said. “It’s been well above my expectations, and I’m not just saying that. They send you to the States for training and I had the help of a Franchise Development Manager every day for the first three weeks. They don’t just leave you on your own.” As far as business outcomes go, Ben is already pleased with the results. “I’m still building relationships, but I’m getting new customers every week,” Ben said.
After almost 20 years working as a heavy plant mechanic, Ben Griffin was ready for a sea change. When the opportunity to turn from Snapon customer to Snap-on franchisee came knocking earlier this year, he couldn’t turn it down. “I’ve been buying Snap-on Tools as a tradie for the last 18 years. One day I was speaking with my local franchisee and he mentioned franchising opportunities at Snap-on. When
he first suggested it I told him he was crazy,” Ben said.
“It’s not like a job at all. I just go out and have fun and make money doing it - it helps that I’m selling a product I believe in and have always loved.”
But a week later they got talking again and Ben mentioned he was looking for a lifestyle change.
Ben is so pleased with his progress he’s already thinking about the next step.
“My wife and I really wanted to move to Queensland so when I heard about a vacant territory in Brisbane, the idea suddenly became a possibility,” he explained. “Following that I undertook the Snap-on Discovery Tour to get a feel for life on a Snap-on truck and determine whether I’d be right for the role, but by that point I was pretty much sold anyway.”
“I’ve always been ambitious so our plan is to get at least one more truck down the track,” he said. For further information about Snap-on Tools franchising contact: Phone: 1800 762 766 Email: les.coppin@snapon.com Web: www.snapontools.com.au
36 Business Franchise Australia and New Zealand
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Business Franchise Australia and New Zealand 37 1057_KLPR_SPOA_SharpestTool_v05FA_for_Franchise_magazine.indd 1
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Focus : K w i k K er b
EVER DREAM OF BECOMING A WORLD LEADER? For more than 25 years, Kwik Kerb have been the world leaders in domestic continuous concrete edging. A quarter of a century ago the concept of machine extruded concrete kerbing was brand new and individual machine owners were unable to service the market effectively. The introduction of the all inclusive Kwik Kerb business system, coupled with a strong branding campaign kicked all the competition to the Kerb and lifted Kwik Kerb in becoming a household name, synonymous with quality and innovation. With a market share so strong, it would be easy to sit back and enjoy the success and reap the rewards; however, 2013 has been a year of development and consolidation to
ensure that Kwik Kerb is always one step ahead, offering the very best to its business owners and customers. Kwik Kerb General Manager Michael Wyvill says, “The past twelve months have been a period of research and development for Kwik Kerb with many exciting advances. We will be rolling out in 2014, across our network of business owners in Australia, our own exclusive range of colours, additives and finishes for kerbing.” Innovation has always been at the heart of Kwik Kerb’s success. During the 1980’s various styles of plain and coloured kerbing were being produced by Kwik Kerb business owners. Kwik Kerb quickly began to innovate and develop new and previously untried processes which resulted in developing a one-day process for stamped and patterned kerbing - the famous Eurostyle® range. Unmatched by any other – Eurostyle® is the premier concrete edging
product in the world. Kwik Kerb then added the brand new Eurobrick® range of kerbing. This patented process is unique and exclusive to Kwik Kerb business owners to create an authentic brick and mortar appearance. Eurobrick® is currently the hottest kerbing product available and is even more profitable for Kwik Kerb business owners. Michael says, “With our existing range plus new colours and finishes, 2014 is going to be a good year. The construction industry and property markets are moving in a positive direction with housing prices starting to rise, particularly along the eastern seaboard, all of which is a positive for Kwik Kerb.”
DON’T DREAM OF SUCCESS, ACHIEVE IT Kwik Kerb business owners start their new business already well ahead of the game. All kerbing equipment comes in a bright red specially designed trailer, which acts as mobile advertising. Just being seen driving around creates Kwik Kerb business. A unique machine called the ‘Edgemaster’ is the cornerstone of this truly innovative business system. The Edgemaster can extrude concrete edging on site at up to 60 metres per hour, with experienced Kwik Kerb operators able to install 100m or more in a day, allowing for an excellent earning potential.
“Kicking all competition to the kerb, Kwik Kerb have become a household name, synonymous with quality and innovation.”
38 Business Franchise Australia and New Zealand
“With our existing range plus new colours and finishes, 2014 is going to be a good year.” Combined, the unique Edgemaster machine along with a complete business system containing all the equipment, promotional materials plus training, the level of success is entirely up to the level of effort put in by the individual. You benefit from using the unique and proven system, all designed to make you, the business owner, successful from day one.
TRAINING AND ONGOING SUPPORT The five day comprehensive training course has been successfully developed over the last 25 years. The training ensures that new owners are ready to lay kerbing from the first day, meeting the high standards that customers expect from the Kwik Kerb name. Some of the areas covered in the training include: • Quoting, marketing and advertising techniques. • Hands-on operation of all machinery including laying of a variety of different shaped edges. • Applying the unique range of patented Kwik kerb finishes to the edging. • Service and maintenance of tools and machinery. • Professional presentation and customer service skills. Although this extensive training package will give you everything you need to run your
business from the first day, you are never on your own. One of the best things about being a Kwik Kerb business owner is that head office is only ever a phone call away. Plus, you also have access to an online Operator Forum where you can get technical advice from other Kwik Kerbers around the world and access exclusive marketing and technical documents. With all of this training and service, it doesn’t matter if you don’t have previous concreting or business experience as Kwik Kerb gives you everything you could need to ensure you are profitable from day one.
BUSINESS OWNERS, NOT FRANCHISEES Kwik Kerb is a licensed business opportunity, not a franchise. What this means to the business owner, is that once the licence is purchased, the business is yours. There are no ongoing royalty fees and no restrictions on territories. You are free, without boundaries, to expand your business as you see fit and keep all the profits. As long as the quality of the product is maintained, along with the reputation of the Kwik Kerb brand, there is no limit to the potential of your business. Since its inception, Kwik Kerb has grown to more than 300 business operators in Australia and all Kwik Kerb equipment is designed and manufactured here in Australia.
This is then distributed internationally to the thousands of Kwik Kerb business owners established in countries around the world including New Zealand, Canada, USA, France, South Africa, Morocco, Saudi Arabia, South America, Ireland and the United Kingdom.
INTERESTED? WATCH THIS SPACE! Kwik Kerb are giving one lucky reader the opportunity to own and run their own business and achieve their own financial success, AT NO COST. Marketing Manager, Alex Colls explains, “We are giving away, free of charge, a brand new fully equipped trailer, along with the same materials, training (plus accommodation if inter-state) and service that someone who purchases a Kwik Kerb business would receive. “The competition will be launched exclusively in the March/April issue of Business Franchise magazine and will require entrants to email a summary outlining why they would be the ideal Kwik Kerb operator and small business owner.” If this sounds like your dream business, make sure you check out the next issue of Business Franchise Australia and New Zealand, available in newsagencies and digitally via iTunes or Android on Friday 7th March, which will detail how to enter this life changing competition. To contact Kwik Kerb: Phone: 1800 773 231 Web: www.kwikkerb.com.au
Business Franchise Australia and New Zealand 39
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Promises, promises.
42 Business Franchise Australia and New Zealand
“Mediation is a cost-effective way to resolve franchising disputes without commencing expensive and lengthy legal action.” There are many decisions that come into play when considering whether or not to purchase a franchise. The principal ones are, of course, which franchise, location and how much to pay. Rarely however does a prospective franchisee stop to consider the importance of what is being represented to it during the initial negotiation process in making those decisions. Interestingly, one of the main contributing factors to disputes between franchisors and franchisees relate to the representations and promises that are made prior to or during the purchase of the franchise itself. For example: • The ACCC received 740 complaints about or from businesses involved in franchising in the last financial year, and amongst the most common complaints were the failure of franchisors to provide a disclosure document, and false or misleading representations by franchisors, especially in relation to earnings forecasts. • In 2012 Billy Baxters was fined $1.22 million after the Victorian Court of Appeal found that its turnover estimates were not based on reasonable grounds. The fine was one of the factors which saw the demise of the franchise. • In January 2013, there was much publicity surrounding three displeased franchisees of Pie Face who threatened to commence proceedings against the franchisor claiming they were misled over the profits they would make and the costs they would incur when they first purchased the franchises, further stating that during the first few months of trading, the trading
figures were completely different to those initially predicted by the franchisor when selling the franchise to them. The franchisor has rejected the claims and denied providing any misleading or deceptive cost information. There has been no report of a resolution to the dispute as yet. The high number of disputes is largely because prospective franchisees often do not make a clear record of these representations and document them in a way that will be binding on the franchisor when deciding whether or not to enter into a franchise. Here, we take a look at a recent example of such disputes and consider whether the proposed changes to the Franchising Code of Conduct will go far enough to assist in reducing the number of disputes that arise between franchisees and franchisors with respect to pre contractual representations, and whether they will assist with the dispute resolution process.
Case study In Astram Financial Services v Bank of Queensland [2010] FCA 1010, Astram entered into a franchising agreement with the Bank of Queensland (“BoQ”). After the franchise failed, Astram alleged that the failure was due to BoQ misrepresenting both the targets stated in a business plan and the level of support the BoQ was to provide to it. Astram argued that it never achieved the targets BoQ represented it would and insisted that it never would have entered into the agreement if it had known that the prospects of success stated by BoQ were not achievable. After an unsuccessful mediation, Astram commenced proceedings in the Federal Court of Australia. In finding in favour of BoQ, the Court found that the problem with Astram’s case was that it was relying upon verbal “assurances” given by BoQ which were directly contradicted by express contractual terms followed by
Carrie Peterson - Senior Associate, Bartier Perry
written statements of the Bank’s position. The contractual terms and written statements were accepted by Astram and endorsed as understood by its principals. Thus, it followed, that introductory discussions were just that, and could not be relied upon in circumstances where the actual terms recorded in writing were inconsistent with those discussions. Despite Astram’s failed attempt, it has been reported that a group of ten former BOQ franchisees may be seeking damages in the NSW Supreme court claiming BOQ made representations over revenue and new business that did not eventuate. It remains to be seen as to whether they will succeed. No doubt much will turn on whether the franchisees have a written record of the representations, and have not signed documents containing different statements, or acknowledgments that they did not rely on any information provided by the franchisor which was not contained in the franchise agreement and formal disclosure document.
The Code The Franchising Code of Conduct (“the Code”) is a mandatory industry code under Part IVB of the Competition and Consumer Act 2010 (CCA). The Code prescribes certain documents that must be given to prospective franchisees, the contents of those documents, and stipulates provisions that must and must not be included in franchise agreements. Clause 26 of the Code sets out the manner in which franchising disputes are to be resolved outside litigation. In brief, the Code states that if the parties cannot reach an agreement
Business Franchise Australia and New Zealand 43
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â&#x20AC;&#x153;It is important for franchisees to take care at the outset to identify important representations and document them in a way that will be binding on the franchisor.â&#x20AC;? and resolve a dispute within 3 weeks (clause 6(3)), then the parties are to attend mediation. Mediation is a cost-effective way to resolve franchising disputes without commencing expensive and lengthy legal action. The parties can either agree to appoint a mediator, or contact the Office of the Franchising Mediation Advisor (OFMA), which provides a free mediation service. Mediation has proven to be effective in resolving franchising disputes.
Amendments to the Code On 4 January 2013, the Commonwealth government announced a review of the Code. The review was undertaking by Mr Alan Wein. On 24 July 2013, the government formally responded to Mr Weinâ&#x20AC;&#x2122;s recommendations, accepting the majority, including an obligation on franchisees and franchisors to act in good faith. Other proposed amendments to the Code include imposing an obligation on franchisors to furnish prospective franchisees with a short form disclosure document and a requirement that franchisors provide prospective franchisees with a short summary of the matters and key risks they should be aware of when considering purchasing the franchise. This is an attempt to address the difficulties franchisees face when confronted with a large amount of detailed information in different forms, which was perhaps one cause of the problems which beset Astram in the case discussed above. Mr Wein also recommended amendments to the dispute resolution clauses within the Code, which include that franchisors should not require franchisees to pay their legal costs of a dispute, unless a court orders otherwise, and a limit on the ability for franchisors to require franchisees to litigate outside the jurisdiction in which the franchisee operates.
Code will be beneficial for franchisees in particular, and may well have the effect of reducing the number of disputes arising between franchisees and franchisors, it is important for franchisees to take care at the outset to identify important representations and document them in a way that will be binding on the franchisor. One way to achieve this is to obtain legal and financial advice prior to entering into a franchise agreement, so as to ensure as far as possible that the franchisee enters the agreement with a complete picture as to what can, and cannot be relied upon.
While the proposed amendments to the
Bartier Perry is an established and
44 Business Franchise Australia and New Zealand
respected Sydney law firm, providing expert legal services for over 70 years. They work with clients in franchising and a range of other industry sectors. Carrie Peterson is a Senior Associate with Bartier Perry specialising in commercial litigation and dispute resolution. Carrie is also an Associate Member of the Insolvency Practitioners of Australia. Contact: Phone: 02 8281 7922 Email: cpeterson@bartier.com.au Web: www.bartier.com.au
Business Franchise Australia and New Zealand 45
PROFILE : T el ech o ice
TeleChoice
Challenges the Telco Industry There’s an old story about a little boy David and a giant gladiator called Goliath. The story says that Goliath was big, fearsome and arrogant; he challenged and defeated all that he came across until no one dared to challenge him. Then little David came along to take the challenge and he outsmarted and defeated Goliath.
• Do major carriers automatically reduce a customer’s monthly plan at the end of their contract to remove the phone payment component? Never! But TeleChoice will.
The mobile phone retailing in Australia appears similar and is dominated by the three major carriers – until now. Because now, TeleChoice has begun to challenge the status quo! For example:
When you apply to become part of the TeleChoice family, they want to set you up to win. They start with a thorough process to ensure that the opportunity presented matches your goals and expectations. They follow that with four weeks comprehensive training and then continue with ongoing updates, training and follow ups to ensure that their dealers are knowledgeable in all the latest product releases, pricing changes, technology updates.
• Can customers upgrade their mobile phone before the end of their contract without paying hefty penalties? The big carriers will not allow it. But it can be done with TeleChoice. • Can customers reduce their Plan payments for their mobile phone before the end of their contract? The big carriers will not allow it, but it can be done with TeleChoice.
• Can customers get a home telephony/ broadband connected for under $2,000 minimum total commitment? With the big guys, no! But, at TeleChoice the minimum commitment is only $319. These are serious challenges to the industry and the major providers and TeleChoice is leading the path. A typical TeleChoice customer can save between $50 - $100 per month on TeleChoice’ mobile, internet and home telephony plans. That is why TeleChoice is “The People’s Choice”, and that is why this is an opportune time to become a TeleChoice Licensed Store Operator.
Setting you up to win
The continuity of training is supported by their Learning Management System. It is software that disseminates all new product information and training material to their
46 Business Franchise Australia and New Zealand
dealerships and all their staff. They also have a dedicated team at Head Office to support their dealers in every way to cover the operational side of the business. They are a successful network because they have so many successful network partners.
The best choice TeleChoice has so much to offer. In addition to the level of training and support, TeleChoice also offers: • great buying power with key suppliers • excellent capital growth potential • high cash flow and earning potential • great brand recognition • an opportunity to own your own business • fantastic training and support Given this level of dedication to their network of dealers, it is no surprise that TeleChoice is the first choice for the entrepreneurial Australians who are looking to be independent business owners. Are you like David, confident and ready to take on big challenges like Goliath? If you’ve got what it takes; we would like you to become part of TeleChoice’ network of successful business owners. Phone: 03 8699 2555 Email: dealership@telechoice.com Web: www.telechoice.com.au/franchise
Business Franchise Australia and New Zealand 47
t miss out
fastest refunds
FOCUS : M AS ta x ACCOU N TA N TS
ou almost anywhere
SUCCESS NEEDNâ&#x20AC;&#x2122;T BE TAXING!
sons why you should choose your taxes:
rate, Convenient and Confidential MAS Tax Accountants, a specialised firm of Business Accountants, is offering a profitable business opportunity for qualified accountants ready to escape the daily commute. Starting as Small Business Works in 2005, MAS Tax Accountants commenced franchising in 2009 and hasnâ&#x20AC;&#x2122;t looked back since. With over 20 franchisees in metropolitan Melbourne alone, MAS Tax Accountants are looking for enthusiastic
individuals who can join at this exciting time. With 30+ franchisees across VIC, NSW and QLD, this national expansion is happening now and thereâ&#x20AC;&#x2122;s never been a better time to join.
Benefits of joining MAS Tax Accountants Chief Executive Officer, Alan Maddick explains why MAS Tax Accountants are different to the other accounting franchises on the market. â&#x20AC;&#x153;MAS Tax Accountants offer a very broad range of services including business consulting, financial planning, mortgage broking, BAS, bookkeeping along with many other services. If you are just looking for high volume tax compliance work, go to one of our competitor franchise systems but MAS Tax Accountants offers a full range of services to suit every business need.
â&#x20AC;&#x153;With a franchise purchase fee of less than $40,000, the majority of which is poured back into the franchise system, this allows MAS Tax Accountants to ensure that the business is being launched properly and the marketing is being done to benefit the franchisee and not just the franchise system. â&#x20AC;&#x153;To get an accounting firm off the ground, it costs a lot of money with regard to marketing, infrastructure, hardware and software, all of which is done by MAS Tax Accountants.â&#x20AC;? This allows the franchisee time to concentrate on building up the practice. Although the majority of franchisees work from home, franchisees are also able to start up from an office if preferred and be fully supported by MAS Tax Accountants. Describing why most franchisees work from home, Alan explains, â&#x20AC;&#x153;Working from home eases the pressures placed on a new practice
â&#x20AC;&#x153;MAS Tax Accountants uses business models that are versatile and designed to suit professionals ranging from bookkeepers, all the way through to fully qualified CPA certified accountants.â&#x20AC;?
48 Business Franchise Australia and New Zealand
Alan Marchingo - General Manager and Alan Maddick - Chief Executive Officer
within the first 12 months. Accounting practices are very easy to grow but hard to grow quickly and working from home allows the franchisee the time to grow their client base without having to worry about ever increasing overheads. â&#x20AC;&#x153;Existing clients will make recommendations based on the exceptional service they receive from you but itâ&#x20AC;&#x2122;s really hard to grow beyond a certain amount in any given year and itâ&#x20AC;&#x2122;s useful to keep fixed overheads as low as possible in that first year. â&#x20AC;&#x153;As the franchise fee is percentage based and not a fixed fee, even during slower months, maybe an extended holiday taken or more life than work in the work/life balance, franchisees are still putting money in their own pockets.â&#x20AC;?
Franchisees are also actively encouraged to do their own marketing, using their own contact details, alongside the national 1300 number, in their local marketplace to ensure each individual franchise system grows within their own territory. â&#x20AC;&#x153;This allows franchisees to not only become successful franchisees but also successful business people in their own right,â&#x20AC;? says Alan.
MAS Tax Accountants Franchisees All applicants pass through a comprehensive assessment and selection process to ensure that only those suitably qualified are accepted.
â&#x20AC;&#x153;They get to a point in life where they want to start out on their own but lack the experience of running their own business. They often have a business background which gives them a great knowledge base but not enough in how to get their own business or practice up and running. Joining MAS Tax Accountants gives them that experience and support,â&#x20AC;? Alan explains. In this type of regulatory environment, itâ&#x20AC;&#x2122;s getting more and more important to have the backup that a franchise system such as MAS Tax Accountants can offer you. With rules and regulations constantly changing, franchisees need that support offered from the MAS Tax Accountants network. They share a much wider breadth of knowledge compared to a single practitioner who can struggle to keep abreast of all regulatory changes in a time sensitive manner.
urate, Convenient and Confidential Alan believes that an accounting firm cannot be opened, and be truly successful, without the extraordinary backup offered by MAS Tax Accountants.
â&#x20AC;&#x153;MAS Tax Accountants uses business models that are versatile and designed to suit professionals ranging from bookkeepers, all the way through to fully qualified CPA certified accountants.
asons why you should choose e your taxes: â&#x20AC;&#x153;The benefit of joining the MAS Tax Accountants system is the branding, marketing and training available to the franchisee. We are very hands-on, with salespeople and telemarketers permanently employed to present, often off-site, to a room full of prospective clients to assist the franchisee get clients.â&#x20AC;?
â&#x20AC;&#x153;Our most common type of franchisee is someone with maybe ten years or more experience but not in public practice, which is seeing clients face-to-face, day in, day out. Whilst they have a lot of business experience having worked in medium to large sized businesses, they donâ&#x20AC;&#x2122;t have the hands on public practice experience needed.
you almost anywhere
MAS Tax Accountants offer training sessions every fortnight, either face to face or online via webinars, as well as running focus groups. These centre on different subject areas such as financial planning, regulation, self-managed super and individual taxation for example, as itâ&#x20AC;&#x2122;s impossible for one person to know everything. These specialised groups are run by utilising the pool of people available within the network, whose knowledge and experience can be drawn
fastest refunds
Business Franchise Australia and New Zealand 49
t miss out
fastest refunds
FOCUS : M AS ta x ACCOU N TA N TS
ou almost anywhere sons why you should choose your taxes:
rate, Convenient and Confidential Some of the MAS Tax Head Office team
upon and then re-distributed throughout the franchisee chain. Alan says, â&#x20AC;&#x153;Most franchisees are specialists in one or two areas so may focus in particular areas and add other specialties when they deem the time is right. Diversification is encouraged and MAS Tax Accountants will help as much as possible, with a lot of the costs covered by ourselves. With 30 to 40 hours Formalised Professional Development required each year, the training that is provided by MAS Tax Accountants, at no cost to the franchisee, will cover this requirement in total for most professionals.â&#x20AC;? MAS Tax Accountants stay at the forefront of current technology investing in the very best software and systems, so that the franchisees donâ&#x20AC;&#x2122;t have to. Utilising cloud-based systems for franchisees, most resources and training are available this way or through webinars. Head office can also see and monitor what the franchisees
are doing, from receiving a cold lead, to converted work and ensuring compliance with current regulations.
â&#x20AC;˘ Business Planning
Services offered by MAS Tax Accountants
â&#x20AC;˘ Review and reorganisation of your business and investment entities
Along with providing the usual accounting, tax and compliance services you would expect from a traditional accounting firm, they also understand that every industry is different; and each business within the industry is different, which makes it unique. MAS Tax Accountants believe it is essential to understand the business and its operations in order to provide the best service possible. Some of the services offered to clients are: â&#x20AC;˘ Business Activity Statements (BAS) and Instalment Activity Statements (IAS) â&#x20AC;˘ Business Returns (from Sole Traders through to large Company Returns)
â&#x20AC;˘ Advice on your business plan, intended market, and operational considerations
â&#x20AC;˘ Tax minimisation strategies â&#x20AC;˘ Financial Planning â&#x20AC;˘ Personal and Business Insurances â&#x20AC;˘ Lending and Mortgages â&#x20AC;˘ Cash flow Analysis and Management â&#x20AC;˘ Accounts Receivable Consulting & Management â&#x20AC;˘ GST advice and compliance â&#x20AC;˘ Company tax returns If you would like to join MAS Tax Accountants on their road to national expansion, contact Alan Maddick direct on:
rate, Convenient and Confidential â&#x20AC;˘ Self-Managed Super (SMSF) returns â&#x20AC;˘ Structuring Advice
â&#x20AC;˘ Incorporation & Registrations with ASIC and ATO
Phone: 1300 627 829 Email: AlanMaddick@mastax.com.au Web: www.mastax.com.au
sons why you should choose your taxes: â&#x20AC;&#x153;MAS Tax Accountants stay at the forefront of current
ou almost anywhere
technology investing in the very best software and systems, so that the franchisees donâ&#x20AC;&#x2122;t have to.â&#x20AC;?
fastest refunds 50 Business Franchise Australia and New Zealand
F a
1
Fast,Tax Accurate, Convenient Confidential MAS Accountants is looking forand motivated and A few good reasons why you to should confident professionals joinchoose our growing network. MAS to handle your taxes:
Potential Franchisees need to be CPA, CA, IPA qualified and/or qualified Financial We come to youBrokers. almost anywhere Planners or Mortgage
We offer: t We fastest The industryâ&#x20AC;&#x2122;s best practice IT, software and systems refunds
t We t Service offerings across tax, accounting and business services miss out t Financial products and advice t Individual Regular training and mentoring from experienced professionals Tax Returns from $117.50
www.mastax.com.au For morecall information about becoming Please to arrange an appointment a franchisee please call
on 1300 MAX TAX (1300 627 829)
1300 MAX TAX (1300 627 829) Business Franchise Australia and New Zealand 51
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Redundancy Remedy:
Mature age workers use redundancy payouts to establish franchise careers While high profile cases such as the closure of Ford Australiaâ&#x20AC;&#x2DC;s Victorian plants grab headlines, redundancy continues to leave older workers on the employment scrapheap in a raft of industries. For mature age workers (workers who are aged 45 years and over) redundancy can be a particularly daunting prospect to face, as various reports have suggested that they are often excluded from the recruitment process and not even considered for certain positions at all. John Stanton - Australian Franchise Recruitment Manager, Cafe2U
According to the Labour Mobility Survey released by the ABS in August of 2013, a staggering 345,800 people found themselves out of a job due to retrenchment in the year leading up to February 2013, suggesting that redundancy is more prevalent than ever in Australia.
As the Australasian Franchise Recruitment Manager for Cafe2U since 2010 I have witnessed this trend first-hand, and over the past three years it is a trend I have seen become more and more prevalent. Not only do we encounter a lot of mature aged workers at Cafe2U (currently over 50 per cent of our Franchise Partners fall into the mature age category) but we also see a lot of mature age workers who have found their positions have been made redundant enquiring about franchising with us. Approximately 15 per cent of our current Franchise Partners found their previous position had been made redundant or were experiencing uncertainty in their employment prior to joining the Cafe2U franchise.
Facing redundancy in twilight years Of those mature aged individuals who have found themselves facing redundancy, a large percentage claim to have come up
52 Business Franchise Australia and New Zealand
against considerable barriers trying to gain employment in their area of expertise, as a result of their age. Others have also felt uncomfortable taking on another role or a short-term contract, for fear of going through the retrenchment cycle again. These individuals are looking for ways to take control of their futures and are using their redundancy packages in a different way; not to sustain them while they seek to be re-employed in the industry or as term deposit investments, but as the key to making a change in their lives and financing an entirely new career path. Low entry cost, owner-operator franchise operations, such as Cafe2U provide a great solution for those who find themself in this predicament. This certainly rings true for owner of Cafe2U in Archerfield, Queensland David Ovens. David worked as a Facilities Co-ordinator with a major Australian company for four years before being told his position was going to be made redundant. This was not the first time David had faced redundancy either. Prior to assuming his last position, David had worked for a multinational organisation for 30 years before being informed his position was being made redundant. At age 59, David said he was very disheartened to find himself in this position again and extremely concerned about his job prospects. â&#x20AC;&#x153;In the beginning, I sent off countless job applications and got nowhere. I could not
“Cafe2U has given me a second lease on life and a reason to get out of bed in the morning – I am really enjoying it.” even manage to secure an interview,” David admitted to me recently. “I started exploring the world of franchising with Cafe2U and found that not only did they not discriminate against older workers, but they offered great training and support systems, as well as an exceptional level of professionalism. I used my redundancy package to fund my new career with Cafe2U and I am so glad I did - discovering this path was a godsend.”
The strain of redundancy Redundancy places a long-term career employee under a unique set of pressures. There is a long line of workers who have dedicated themselves to one career discipline. When their career is terminated through redundancy, not only are there dwindling opportunities to get re-employed in their industry, but there is also a void in terms of the entrepreneurial traits needed to make a small business work from a start-up phase.
These pressures escalate if they are older because it can be a big ask developing these skills later in life. This is why we are getting a consistent line of enquiries among people who have experienced these circumstances. The benefit of buying into a franchise is that they provide you with the necessary training and support that you need to run your own business successfully. It could take you many years of trial and error running a small business on your own to obtain the knowledge to do it successfully. For people who don’t have years to spend retraining, franchising is a wonderful opportunity to have access to business models that have been proven to work. Cafe2U provides training support for workers to retrain as small business operators with its Acceleration Package – a four week training program that not only equips workers with the training to be a top quality barista but also the skills to run their own business, including assistance with cold calling and sourcing new business.
Embracing lifestyle change For a lot of our operators, including those that are mature aged, the decision to run a mobile coffee franchise has a lot to do with wanting an exciting change of lifestyle. As well as training, support and security, Cafe2U offers a flexible work/life balance with operators typically starting and finishing early. The lifestyle aspect of a career with Cafe2U is a big drawcard for workers who are coming up to their twilight years and might not want to work at the same pace that they once did. Or they are simply seeking a change. This is true for another of our Franchise Partners Gary Cooke, who always had in the back of his mind that he would like to run his own mobile coffee franchise after admiring the work and lifestyle of mobile coffee operators at his children’s sporting matches. At age 55 and after 29 years in the coal mining industry, Gary found that his position was being made redundant.
Business Franchise Australia and New Zealand 53
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model and customer base from nothing. For older workers who may only be a few years off retirement, the franchise model offers the perfect transition. They are able to spend the last few years of their working lives in employment, running their own businesses and generating an income with the support of a highly experienced team. The Cafe2U Acceleration Package means that new Franchise Partners can be retrained and in operation in just four weeks. The return on investment in a Cafe2U franchise also far outweighs what you could expect from a term deposit-style investment. Running your own business rather than working as an employee can open up many taxation advantages, so in the long run it is a much more worthwhile investment for workers who have been made redundant. If they are smart about their operation, they may even be able to develop the business to the point that they oversee multiple vans and hire an employee to operate them. This allows them to be receiving a ‘passive’ income whilst they make the transition in to full retirement. David Ovens certainly agrees that franchising was the way to go for him after redundancy.
“With Cafe2U I am able to run my own business, be my own boss and pick my own hours, which means I am in control of my future.” Instead of treating his new situation and age as a setback, Gary seized the opportunity to change his lifestyle and pursue a new career as a mobile coffee franchise operator with Cafe2U, which was also largely funded by his redundancy package. “For me redundancy meant the opportunity for a radical lifestyle change. After years in the same industry I jumped at the opportunity to reinvent my career and work at a different pace. With Cafe2U I am able to run my own business, be my own boss and pick my own hours, which means I am in control of my future – a change that was definitely overdue,” Gary said. “Now that I have been operating my van for a couple of years it has become more than
that for me. I have really come to enjoy the satisfaction that comes with bringing people their coffee each morning. It makes them happy and gives me a great sense of self worth!”
Franchising vs. Start-Ups The benefits of franchising, as opposed to going it alone with a small business start-up is that you have the brand recognition of an established business. You have marketing support through the master franchisor, support in terms of training and development of your individual franchise and most importantly, proven systems to follow. It is the perfect bridge between being your own boss without having to conjure a business
54 Business Franchise Australia and New Zealand
“Cafe2U has given me a second lease on life and a reason to get out of bed in the morning – I am really enjoying it.” John is the Australasian Franchise Recruitment Manager for international mobile coffee franchise, Cafe2U, the proud pioneers of the mobile cafe industry. John manages the recruitment process for new franchisees entering the Cafe2U system, oversees the re-sale process for existing Franchise Partners and also assists franchisees with expansion into multi-unit operations. John’s work at Cafe2U has seen the franchise system increase to 158 franchisees across Australia and New Zealand. For further information contact John at: Phone: 1300 223 328 Email: jstanton@cafe2u.com Web: www.cafe2u.com/au
o o R e h Rent T
! … s e x o b e h t l l a s t tick a h t e is h c n a r f e Th ...! e r o m h c u m o s ure & it n r u f , s e c n ia l p Ap
Rent The Roo was established in 1976 specialising in household appliances & furniture rentals with over 60 franchise territories throughout Australia. With over 37 years of trade and development, our continued focus is on customer satisfaction. Rent The Roos’ home-based, simple and productive business model combines low running costs with the highest possible returns. With full support of the Management team and initial & on-going training, franchisees have access to proven business resources and marketing material to help maximise the potential of business growth. If you are looking for a profitable business model that offers a fantastic work/home balance, Rent The Roo ticks ALL the boxes!
Work from Home
Minimal overheads
Secure market
Low cost entry level
High Profitability
Exclusive territory
Bob and Julie Sager have achieved a record amount of business in their first 3 years of operation and were recently awarded the Franchisees of the Year at the Rent The Roo national conference, also taking home the $11,000 reward that comes with it! Bob bought his first Rent The Roo franchise in Townsville in July 2009. He saw the flexible and convenient franchise model as one that would suit his relaxed Northern Queensland life style. Since then, he has purchased the Gold Coast South and Mount Isa territories and business is booming! “Rent The Roo is a great business model; it has a terrific amount of transparency and flexibility over its competitors. Rent The Roo has a solid financial background and is very open when discussing it. There was no smoke and mirrors; it is really just an honest and supportive franchise with nothing to hide,” said Bob.
Greg & Bec Smith have recently joined the Rent The Roo family, running the Wangaratta franchise territory in northern Victoria. Greg previously worked for many years in the mines of Western Australia, regularly travelling from his home in rural Victoria. When Greg and Bec started a family and the travelling began to take its toll, they decided it was time to seek a career change and look for a business model that had a fantastic Work/Life balance. “We were looking for a life after mining, and living in Mansfield Vic, it’s a very lifestyle based town with not a lot of job opportunities. We wanted something that still gave us the freedom to keep our busy lifestyle schedule. A friend of ours recommended we look into Rent The Roo as his brother owned a franchise in Tasmania and there was no looking back. We decided to look into it and the rest is history!” said Bec.
For more information visit the FRANCHISE tab on our website or contact Alan Carroll on 0408 178 858 or alan@renttheroo.com
No Worries
renttheroo.com.au *Finance available to approved applicants. Rent The Roo Pty Ltd Australian Credit Licence 387405
Get the App
www.businessfranchiseaustralia.com.au
56 Business Franchise Australia and New Zealand
building & la ndscaping feature
Donâ&#x20AC;&#x2122;t miss an issue
the pr ice is r ight
the price is right franchises you can afford
Business Franchise Australia and New Zealand 57
the pr ice is r ight
“What can I afford?” Over the many years that Business Franchise magazine has been involved in franchising in Australia and New Zealand, we have dealt with hundreds of different franchise systems on a regular basis. From the newest up-and-coming ‘must-have’ to the ‘old-timers’ established and successful over many years, franchising has never been so diverse. So, where do you start? One of the questions that we get asked all the time by people researching the purchase of a franchise is, “Which one would you buy?” but surely the first question the potential franchisee should be asking is of themselves and should be “Which one can I afford?” If you are lucky enough to know the industry you wish to join, the answer to this will help you decide which franchise systems to approach. If you have no idea of the industry type you wish to buy into, this is a helpful exercise as it will help to narrow down the wide range of 1600+ franchise systems available in Australia and New Zealand. So what is your price range? Following are some current franchise systems available, all categorised by price bracket to give you some helpful information on where to start. For contact details refer to pages 102 and 103.
Up to $50,000 Exa Web Solutions Get the competitive advantage. The success of our customers is what fuels our obsession with innovation. Our unique digital strategies give clients an advantage that no other company can offer, and when we develop something that works, we immediately ask ourselves how we can take that competitive edge to a whole new level. To meet the growing demand in digital and online solutions, Exa decided the best way to service the needs of Australian businesses is to develop a customer service/sales based franchise model.
Fastway Couriers Australia 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 and training Exclusive territories A perpetual franchise agreement with no ongoing fees
No prior business experience is needed, just a great attitude and an ability to talk to people.
Fastway Couriers New Zealand Run your own rewarding business and take control of your future as a Fastway Couriers Franchisee. As a market leader in nationwide courier services, our multi-award winning franchisees enjoy: • • • • • •
Guaranteed income packages* Low start up costs No weekend work Ongoing business support and training Exclusive territories A perpetual franchise agreement with no ongoing fees
No prior business experience is needed, just a great attitude and an ability to talk to people.
Inspect my Home As a leader in the property inspection industry inspectmyhome is fast becoming a recognisable brand across Australia and is now franchising its business model and systems. We Offer • • • •
A generous exclusive territory area Computerised booking system and database Electronic reporting systems Full onsite training to obtain Pest Inspectors License • Telephone Support/IT Support/Marketing Assistance • Personalised web pages linked to www.inspectmyhome.com.au • National 1300 number
looking to grow a successful property inspection business.
Snap-on Tools Australia Snap-on tools have a heritage spanning more than 90 years and is a brand that defines quality. The range of more than 19,000 products are the choice of professional technicians from NASA to Formula One. The primary customers for franchisees are the professional technicians who service and repair cars, trucks, motorcycles, boats, aircraft and earth moving equipment the people who make their living using tools and demand the best. With more than 4,700 franchisees around the world, 160 of them in Australia and New Zealand, the franchise programme has been developed over decades. The Financial Review Smart Investor magazine has chosen Snap-on in their last three surveys and the Best Value franchise system. Franchisees, who operate from amazing custom built mobile stores, have protected territories that have been surveyed to locate and profile the customers before they start. Extensive training and ongoing support is provided and no previous mechanical/trade experience is necessary. Franchisees need to be motivated business minded people with a desire to be successful and enjoy the sales environment while building professional relationships with their customers. No royalties, no advertising levies and Snap-on finance packages available.
Spray Pave Australia Earn up to $3,300 per week. That’s right, up to $170,000 per year! Our service decorates concrete. We Spray Pave, Polish, Epoxy and Stain. Jobs are inside and outside. Customers are domestic, commercial and Government. Our license structure allows you to choose when, where and how you want to work! This is a sincere “Be Your Own Boss” system. You genuinely keep all the profits!
Inspectmyhome is looking for current property inspectors to join our team as we grow our network of professionals across Australia.
• Learn a range of new lifelong trades. • Guaranteed work available anytime after training. • Head office training plus follow-up on your own job. • Customers contract and interest free finance. • Lifelong support from 6 Head Office trainers. • Low deposit + Support Payment Plan (SPP)
Or if you are a Licensed Builder looking to join the industry this franchise opportunity is ideal for an enthusiastic and motivated person
Established in 1991, Security with Australia’s largest and oldest network. The name of the industry.
58 Business Franchise Australia and New Zealand
Interested in real estate? Passionate or keen to learn about photography? Then a Top Snap property photography franchise could be for you! We are a professional real estate photography franchise, with territories available across Australia and New Zealand. We are renowned for the outstanding quality of our photographs, which thanks to powerful custom-built technology, are professionally retouched and delivered direct to our clients by next day. 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. Our franchise start-up costs are competitive, and no photography experience is needed, as comprehensive training and ongoing support will be provided, along with ongoing marketing and technical support.
V.I.P. Home Services Australia 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. is a professional Home Services franchise with opportunities available in Home Cleaning, Commercial Cleaning, Carpet Cleaning, Window Cleaning and Lawns and Garden Maintenance. In 2009 and 2010 V.I.P. Home Services was ranked number one Best Value Franchise under $50,000 by Financial Review Smart Investor. 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.
From $50,001 to $100,000 Energis Help residential and business customers save with smart energy solutions & products for Solar, Hot Water, Heating, Cooling & Lighting. Own your own extensive distribution franchise with low initial investment and high income opportunities from large territories. Low cost Mobile & Retail store formats available. Training, Marketing and Installation support provided. Secure your future in this high growth industry with an Energis franchise that gives you personal and professional flexibility in developing your business and your work environment.
FROOTA We all want to be healthy but making healthy choices can sometime be difficult. With so many fast and pre-packaged foods to choose from, it can be hard to know which are good for you and
which are not. Imagine owning a business where you sold a product that looked like ice cream, tasted creamy and delicious like ice cream but instead was made of healthy 98% fat free yoghurt. This is exactly what Froota Frozen Yoghurt provides.
Our Goal is to be the best tasting frozen Yoghurt Supplier in Australia; High turnover, low cost product; Comprehensive ongoing support; Low Overheads; Great Profit Margin.
development. Kwik Kerb® business owners work for themselves, building their own business from strength to strength and determine their own income level. With Kwik Kerb® YOU keep all the profits! We have Kwik Kerbers earning $500 to $1000+ in a day. If they can do it, so can you! Owning a Kwik Kerb® proven system is all about creating a lifestyle that suits you. You choose the hours of work that match your financial and lifestyle goals.
Hairhouse Warehouse
Listen to Read
Hairhouse Warehouse is Australia’s leader in the hair and beauty industry, with over 140 stores across Australia. Our culture and business has developed from over 21 years of success and mastery. Hairhouse Warehouse has been built through the passion and creativity of all our people.
A belief in your ability to change your life and courage to do it is all you need. Work for yourself, not by yourself. Come and join our community of leaders and start your new future today. We’d love to hear from you.
A home tutoring system for reading with proven results. Using a unique curriculum plus multisensory home study tools, Listen to Read repairs the gaps in reading ability. The comprehensive curriculum simplifies the reading process by breaking it down into 14 areas of critical development. Small group tutoring combines with a home study system using an App and workbook for self-regulated multi-sensory study. The program has been developed by a literacy expert and a team of specialists in multi-sensory learning. Co-founder and Director Catherine McLennan has 26 years of teaching experience specialising in teaching reading. Individual training with Catherine ensures success for all franchisees. Early trials show students making gains in their reading age of up to two years, in just 12 weeks. A proven system combining a unique reading curriculum with Sound Therapy and multi-aensory programs for I-pad or computer.
Jim’s Fencing
TeleChoice
Jim’s Fencing franchise opportunities were launched in 1997, initially in Melbourne; to date Jim’s Fencing is Australia wide with approx 150 franchise owners of which includes contractors (who work for the franchise owners) building fences every day of the week. Due to the over supply of work which we cannot service Australia wide, Jim’s Fencing needs more franchise owners to service our customers.
Established more than 18 years ago, TeleChoice is Australia’s largest independent MVNO retailer of mobile phones, telecommunications and energy products. Telecommunications and energy products are everyday necessities and non-discretionary expenses. TeleChoice now uses the most reputable networks in Australia packaged in ways that help Australian consumers make substantial savings and reduce the costs burdens. For example, TeleChoice uses parts of Telstra’s 3G Network to offer the most competitive mobile phone rates and bundles with home telephony and internet. A TeleChoice Licensed Store operator has the delightful task of saving money for our customers.
• • • •
Extensive and ongoing training programs A proven turnkey operation A focus on world class service Multiple revenue streams, including retail, salon, piercing and beauty services • Exclusive stockist of world leading brands with the most lucrative merchandise trading terms worldwide
Some of the benefits of joining our Jim’s Fencing team are: • • • • • • •
8 weeks paid for training @$1000 inclusive p/w 3 month bookkeeping assistance package Work availability GUARANTEE Ongoing support and personal mentoring Strong brand recognition Over supply of work And much, much more
If you are looking for a self-employed business opportunity and enjoy working outdoors, then why not join the team here at JIM’S Fencing.
Kwik Kerb Kwik Kerb® is the world leader in continuous concrete edging and can now be found in over 20 countries. We are looking for motivated people right around Australia who want to improve their lifestyle and take control of their financial future. As a Kwik Kerb® business owner you will be supported every step of the way with our knowledge and experience in marketing, a full training program and on-going product
You too can make money by saving people their money. Our industry is very dynamic and is only suited for smart energetic investors. If you have the passion for business and the drive to succeed; we would like you to be a part of our team.
The Concrete Cutter The Concrete Cutter makes sound business sense. Established in Melbourne in 2001, The Concrete Cutter has nine long running franchises in operation. We now seek to expand in Melbourne and duplicate the Melbourne success interstate. If you are a smart ‘hands on’ person with good health and you are easily understood on the telephone we welcome your enquiry. The purchase price of $45,000 + gst covers equipment, sign writing, uniforms, stationary, training and initial book-keeping setup and early accounting support. You will need
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to provide a suitable white vehicle such as a ‘one tonner’, a van , or a small truck, it need not be new. Most established franchisees are regularly taking over $2,500 per week.
The Interface Financial Group The Interface Financial Group franchisees provide shortterm working capital for small businesses by purchasing their invoices at a discount. In the current economic climate small businesses need working capital but banks are unwilling or unable to provide it. Many of these small businesses are turning to Interface for a solution. Interface has been in the ‘invoice discounting’ business since 1972, is the leading alternative funding source for small business, and employs its franchise network in Australia, New Zealand, Canada, the Republic of Ireland, Singapore, the United Kingdom, the United States, and Mexico. The new IFG 50/50 franchise offers the opportunity to get started quickly and with a more modest capital base. Why? Because we syndicate all transactions with our franchisees 50/50. Franchisees do the ‘people work’ - we do the ‘paperwork’ – a great combination to achieve an above average return.
Unscratch the Surface No longer is it necessary to replace damaged glass. Unscratch The Surface franchises are the solution that all commercial, construction and residential industries have been without. Saving them $1000’s in replacement costs and critical time wastage. Never mind the environmental advantages by preventing yet more glass being broken up into landfill worldwide. Key benefits:
• Low entry costs • Low running costs • Low on-going fees • Full training & unlimited support Franchisees will receive: • Extensive advertising • Leads supplied by head office • Professional sales website • Powerful CRM website • High-grade trade tools & supplies • Uniforms • Complete corporate branding We are looking for people with a positive attitude and are dedicated to providing great customer service.
From $100,001 to $250,000 Bright Eyes Franchising Established in 1985, BrightEyes Sunglasses is one of Australia’s largest sunglass retail networks, with over 46 locations nationwide. Our genuine passion towards enhancing Australia’s active lifestyle makes us the experts on fashionably functional eyewear. At BrightEyes we’re not simply selling sunglasses; we’re selling an enhanced way of life. The BrightEyes Sunglasses product range is extensive and showcases the latest styles from leading
international brands such as Ray-Ban, Oakley, Arnette, Revo, Maui Jim, Bolle, Prada and Vogue (to name a few). We are also proud to market our unique house brands including Mangrove Jack’s, Stiletto, Nicole’s, Attitude and Urban. If it’s a fantastic franchise opportunity you are looking for, backed up by proven operational, product and marketing support contact us now.
Cafe2U Cafe2U is Australia’s first and most successful mobile café system. With over 200 franchises worldwide the business is rapidly growing due to a simple and proven business model. Cafe2U franchisees now have access to the unique “Acceleration Package” which fast-tracks success. This includes an experienced Franchise Development Manager to launch the business alongside the new franchisee in their own exclusive territory. Cafe2U builds a customer run that delivers a minimum of $500.00 a day before the Franchisee operates solo. The business is HACCP certified and has a ‘no compromise’ attitude when it comes to quality. This includes the Mercedes vehicle, commercial equipment and fitout, branding and marketing strategies and dedicated events co-ordinator. If you are ready to take control and enjoy working with people, a Cafe2U franchise provides you the perfect system to create your own destiny.
Coffee Guru Coffee Guru is Australia’s own locally owned and managed coffee chain with over 25 stores across Canberra and New South Wales. With our quality coffee and dedication to customer service, we are proud to be Australia’s Own Gourmet Coffee Company. Our professionally trained baristas will make you the perfect cup of coffee every time using our Coffee Guru exclusive coffee blend that is roasted to perfection. Featuring a strong support network and supply chain, a Coffee Guru franchise is the perfect investment. with new franchise business opportunities available, new stores will continue to open throughout 2014. If you are passionate about coffee and want to become your own ‘Coffee Guru’ contact us now.
Just Cuts 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 Cut Cuts™ Franchise Owners have been free to grow to own multiple sites. Just Cuts™ do over 66,000 Style Cuts™ a week! Just Cuts™ operate on a no appointment, no request system, quality style cut at an affordable price. Contact us today to find out more. Join the largest Hairdressing Network in the Southern Hemisphere.
Lava Carts Lava Carts offers specialty Espresso coffee and
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freshly made accompaniments. Our vision is to position the finest coffee possible into strategic locations delighting the customer and retailer in terms of satisfaction and success. A coffee cart strategically placed at the front entrance of a busy regional hospital proved a winning formula for the original Lava Cart and founder Simon O’Brien. Today the latest in design innovation has upgraded the cart to a modern and functional shopping centre kiosk whilst maintaining the grass roots cart like qualities of cost consideration and position. Our winning formula means our turnkey franchise package is a fraction of the cost of our competitors with no compromises on quality. We currently have excellent high profile opportunities in super and major regional shopping centres, particularly in Qld, Victoria and WA. Having already experienced proven national growth Lava Carts has erupted onto the stage with a vibrant difference. Discover the substance behind our brand.
Sleepy’s Sleepy’s unique selling proposition is ‘The Mattress Experts’. We focus on • providing the right mattress for our customers • backing our sales with peace of mind: 60 day comfort exchange guarantee • creating a superior customer experience Sleepy’s offers our franchisees high quality initial and ongoing training, national marketing programs, local area programs and support from the management. With Sleepy’s low entry costs, simple business model, and proven selling system you too will become a mattress expert! Sleepy’s currently has 23 stores and has embarked on an aggressive national growth plan. Make an enquiry today.
The Australian Drug Detection Agency The Australian Drug Detection Agency PTY Limited wants highly motivated and independent people to join the team, as either Master or Regional Franchisees. The NZ operation was established in April 2005 and consists of 15 regional franchisees throughout New Zealand, 18 offices and over 30 specialised onsite testing vehicles, employing over 65 staff and is recognised as the Market leader in the field of on-site drug, alcohol workplace testing and education services. The ADDA is based on the NZ business model, and will provide excellent financial rewards for those who are prepared to work hard and fit the criteria. This is a huge opportunity for business-orientated individuals, to get in at the ground level and grow their own enterprise. Are you ready to join our experienced group and secure a lucrative future? Our guess is Yes, you are!
Xpresso Mobile Café Starting a new café is daunting especially with overheads and expensive shop leases etc. A fixed cost and great value alternative is an Xpresso
$250,001 and above Battery World Count the number of households in Australia? (Currently 9,117,033 private households in Australia - 2011 Census Data). Now count how many batteries each household will need over the next year? That’s the potential of a Battery World Franchise. Offering a world of batteries for everyone, the Battery World network is national and sells a range of portable power products and accessories throughout Australia. Battery World Australia Pty Ltd, as franchisor, provides the marketing and operations support to assist franchisees and strong brand recognition. Battery World is committed to helping franchisees build a successful business supported by experienced support office professionals. 80 stores Australia-wide and growing! After over tenyears of operation, Battery World continues to be one of Australia’s most powerful retail battery franchises.
Brazilian Beauty Welcome to the Brazilian Beauty franchise model where beauty and brains meet. Proven to have successful franchisees from an array of backgrounds embracing the beauty industry and the Brazilian Beauty brand to create profitable lifestyle businesses that engage, challenge and motivate. Proven operational systems, award winning marketing and advertising; team and individual guidance; training and personal development; weekly in salon and monthly group meetings are all part of the package. “At Brazilian Beauty we work together to share our knowledge, ideas, passion and goals to gain a competitive advantage over all other beauty competitors.” Francesca Webster, founder.
Fasta Pasta With our authentic Italian background and 30 year success story, Fasta Pasta is now Australia’s largest, independently owned group of ‘fresh pasta’ Italian restaurants. An innovative everchanging menu, with healthy options and a commitment to outstanding service, have all contributed to Fasta Pasta being voted Roy Morgan’s ‘Quick Service Restaurant of the Year’ in 2012. Loved for our affordable, fresh, family meals in relaxed fully licensed surroundings,
this is a great opportunity to be part of our winning national organisation. Extensive initial training and ongoing support is provided. New franchisees undergo 12 weeks training in one of our company restaurants covering areas such as, front of house, kitchen (all areas), necessary bookwork, PPS, and Management skills.
Noodle Box An Australian success story. Noodle Box’s goal is to be the first choice noodlebased 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 their guests by friendly, well-trained team members. With a relaxed atmosphere – it doesn’t get tastier than that!
Red Rooster Red Rooster is an Australian owned icon brand. The Red Rooster franchise mission is “Be in business for yourself, but not by yourself”. Red Rooster supports each franchisee with proven commercial, promotional and operating systems, all designed to minimise risk and maximise potential for success. Specifically, you will get: • An Australian Icon brand • Proven systems and comprehensive operating manuals • Assistance in finding a location, negotiating contracts and lease arrangements • Full structured training programs • Planning assistance for the opening and operating of your store • A full suite of merchandising and point-ofsale material
Red Rooster is Australia’s most successful Australian owned Quick Service Restaurant chain. Its success has been built on great tasting, high quality, freshly prepared food, delivered using proven systems.
Rent the Roo Rent The Roo specialise in the rental of any household appliance or furniture product available. There is simply NO LIMIT to the development of product ranges on offer from Rent The Roo, because franchisees can purchase from any retail outlet or accessible supplier – giving us the flexibility to satisfy every customer enquiry. If we can find it, you can rent it…!
With over 36 years of trade and development and our continued focus on customer satisfaction, Rent The Roo continue to grow with over 60 franchise territories covering every state & territory in Australia. Franchisees have access to ongoing training and support as well as an extensive range of marketing tools to help drive the business forward. Rent The Roo’s homebased, simple and productive business model
combines low running costs with the highest possible returns.
Snooze Sleep Well 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 us now.
Taco Bill Mexican Restaurants Taco Bill is the longest established Mexican family restaurant in Australia and has built a loyal following since its inception in 1967. Taco Bill’s Mexican food is fun, fresh and affordable and presented in a casual, relaxed environment. The menu consists of a variety of fresh, authentic Mexican cuisine cooked daily on site, including Taco Bill’s special salsas, quesadillas, fajitas, rice and frijoles, enchiladas, burritos, nachos and tacos. Thirty brands of tequila are on offer at the various restaurants as well as Australia’s largest Margarita – Pancho Villa (fishbowl) - giving the restaurant even more flavour and authenticity! With 35 Taco Bill restaurants in Australia and 28 franchisees, Taco Bill Directors Tom Kartel and Stan Teschke are keen to increase Taco Bill’s Mexican wave with expansion plans nationally in metro and regional areas. If you’re interested in becoming part of the Taco Bill family contact us now.
Zarraffa’s Coffee Award winning Zarraffa’s Coffee is a specialty coffee company that roasts and delivers the freshest coffee to its 62 stores across south east Queensland, northern New South Wales and Western Australia. The business is founded on the mantra ‘to create an individually perfect cup of coffee – every time!’ and, just like the giraffe on the logo, aspires to be ‘head and shoulders above the rest.’ Great service is the practice and fresh, quality coffee the business. Since the opening of the first store in 1996, the Zarraffa’s Coffee experience has become something of an icon to many Queenslanders and since late 2012 has served coffee drinkers in Western Australia. The business has maintained a steady pattern of growth, as is evident both in gross turnover figures and a consistent increase in profile. Applications are open now for various locations in South East QLD, NSW and WA.
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Mobile Café franchise. Xpresso Mobile Cafés have exclusive licensing to use the Di Bella Coffee products and branding. Our Mercedes Benz vans are fitted with quality custom fit-outs and commercial high grade espresso coffee making equipment. An Xpresso Mobile Café is also fitted with a coffee bean display showcase where a franchisee can display, custom grind, bag, heat seal and retail. Franchise partners primary income is earned Monday to Friday in an exclusive territory and they may choose to earn secondary (considerable) income from various events and markets on weekends. Franchisees are supported by our fully integrated website and social media and internet presence coupled with our national call centre.
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“Before you do anything else, be clear on what the full costs of the transaction really are as franchisors and vendors often package the pricing in different ways.”
Found the franchise you want but you are short on money – there are many ways you can potentially complete the purchase. THE WORLD HAS CHANGED POST GFC There are some great business concepts and franchise systems on the market and following the GFC both banks and franchisors have adjusted their requirements and techniques for approval and financing new franchisees. The bad news is that banks have reduced their preferential arrangements for many franchise systems and are still applying fairly tough criteria for franchise funding. In most cases unless you have sufficient equity in a property to cover the loan and an impeccable credit history, it is very hard to get finance approved and when you do the fees can be disproportionate to the loan amount and the terms can be very onerous. The good news is many franchisors have recognised that without the ability to help new franchisees into their network, their franchise will suffer, so they are now more creative and more receptive to negotiating or demonstrating some flexibility on terms that pre-GFC many would not have considered.
CONSIDER CONTINGENCIES In this article we will explore how you can still buy your preferred franchise business
even if you don’t have all the money. Before sharing these techniques and insights we point out that for any business purchaser it is important to be sufficiently capitalised – to have enough money and have some spare money to cover the unexpected contingencies that often arise in business. If you don’t have the money you should have access to emergency funding or assets you can sell in a worst case scenario.
IDENTIFY THE FULL COSTS So you have found the franchise business you really want but the price is higher than you can afford. Before you do anything else, be clear on what the full costs of the transaction really are as franchisors and vendors often package the pricing in different ways. Some lead with a low headline number to attract interest but then it is plus plus plus for various related expenses and fees. Others lead with a fully costed package price but even many of these fail to mention amounts that need to be factored in such as rental bonds for landlords, vehicle leasing costs and working capital needed to support the business as it builds. The Disclosure Document will list all the costs you may incur in buying or running the business so get a copy as early as you can and go through it carefully. Most franchisors will list a low end and high end cost for many items. For example, fitout may cost $60,000 - $120,000. You need to be realistic about where your business will fall in these ranges. If you cannot get the Disclosure Document early, then ask the franchisor/vendor to give you a full breakdown and itemisation of costs – they have the information but it is their choice when they release it to you as some will hold back until they are certain you are a genuine buyer. However from your perspective you need the full numbers as quickly as possible to know what you need to finance.
Robert Graham - Managing Director, CEO Consulting
DETERMINE YOUR BORROWING CAPACITY Even if you have most of the funds sitting in your bank account it is helpful to know your borrowing capacity and options. Interest rates are historically low so in this current rate cycle you may wish to borrow rather than use liquid funds. For those without funds in the bank you need to know if you can redraw monies from your existing home or investment property loans or how much you can raise against the assets you have. Pre GFC there were over 150 of the 1100 franchise systems in Australia that had preferential lending packages in place with banks. Post GFC the number is closer to 50, so unless you are buying in to a longstanding franchise system, the likelihood is you need to raise finance under normal small business lending criteria – which is still tough. For the few franchises with bank packages, you can fund anywhere between 40 – 70 per cent of the total price secured against the assets of that franchise business. The remainder comes from property backed funding or savings. As such these packages can make a big difference to whether you can buy the business. So whether you can raise bank lending or not – be clear on what you can and can’t do as this sets some important boundaries for your purchase and financing decisions.
OTHER FINANCING METHODS Leasing, equipment finance and rental are useful alternate financing methods. When you have the breakdown of the full
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“If a franchisor is going to negotiate with you, first you need to demonstrate to them that you are a desirable candidate and likely to be a successful franchisee. You need to make them want you.” Within the package of inclusions in every franchise there are some things that can be negotiated on and others that cannot. Here are some typical inclusions where you may be able to negotiate a reduction or variation to the payment terms:
1
Franchise License fee
Most franchises are for a fixed term of 5 - 10 years. Most franchisors seek to charge this full fee upfront. You may try to reduce the amount or pay some over time, or both. If it is a startup franchise you are likely to see more negotiability on this fee than for an established franchise – but it is definitely worth testing.
2
Training fees
costs of buying and running the business there are usually certain assets that can be rented or leased. If your business requires any fitout or special equipment then talk to financiers such as Silverchef, Go Getta or Flexirent – these companies specialise in financing franchise assets. Some have rent, try, buy options as well as traditional lease or rental arrangements. Then there are also a range of vehicle finance specialists who can do standalone leases for business vehicles. Interest costs are often not that much more than bank finance and it can be a lot quicker and easier to get approval and release of the funds.
POSITIONING FOR NEGOTIATIONS WITH THE FRANCHISOR So you now know the total buy in and set up costs and you know your borrowing capacity and options…but it looks like you might still be short of funds. What else can be done? Now it is time to explore concessions with the franchisor/vendor.
If a franchisor is going to negotiate with you, first you need to demonstrate to them that you are a desirable candidate and likely to be a successful franchisee. You need to make them want you. Taking an aggressive approach to the negotiation will not work. Instead, focus on why you are right for this business and the things you will do to grow it. Typically a franchisor will be assessing you for skills, track record, motivation and attitude. Get on the front foot and prepare a short Business and Marketing Plan. Highlight your skills or track record in this industry or similar roles. Prepare a proper Resume and always come across in a professional and business-like manner. They want people who can largely be self-sufficient in the business, not people who want everything done for them.
SEVEN CREATIVE NEGOTIATION POINTS WITH FRANCHISORS You want the business, the franchisor wants you, now you have the right environment to test the franchisors flexibility on terms.
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It is fair for a franchisor to recoup their costs of training you and your staff. However some franchisors also make training a profit centre and charge a margin on top of costs. Get a feel for this but either way it is something a franchisor can easily negotiate on as it is a cost controlled by them and often it is a sunk cost as they will be incurring the cost of their trainers and premises anyway even if you do not buy.
3
Marketing funds and other regular costs
Within many Franchise Agreements are a range of smaller ongoing costs payable by a franchisee. They may be for contribution to a Group Marketing Fund, payment for use of systems or for various support services. Whilst you do not pay these upfront they can quickly add to your monthly expenses and if cash is tight in your early trading period it is worth asking if some of these expenses can be deferred.
4
Initial Stock
Like training, this can be an area where franchisors make a profit margin, so try and find out the real costs of stock and pay the cost price not retail price.
the pr ice feature is r ight “Taking an aggressive approach to the negotiation will not work. Instead, focus on why you are right for this business and the things you will do to grow it.”
Franchisors may not tell you the real prices but test them on this as a one-off concession.
5
Turnkey Fitouts
If the franchisor is handling your fitout we call this a ‘turnkey fitout’. Within the total costs of the fitout will usually be the actual cost for materials, equipment, permits and contractors – all of which are reasonable for a franchisor to charge. However there may also be a loading for a Project Management Fee or approval fees. If there is, then this is an area where you may seek a concession. Most franchisors will rightly want to be compensated for their knowledge, connections and time associated with your turnkey fitout but it is an area which may allow some reduction in the context of the overall negotiation.
6
Rebates
A franchisor must disclose if it receives rebates from any supplier. The rebates usually relate to stock or fitouts. Ask how much the rebates are and whether they can be applied in reduction of your costs.
7
Landlord fitout contribution
If you are setting up a new site with a fitout, you may be able to negotiate a full or partial contribution to fitout costs by the landlord. Depending on the size of the contribution, the nature of the work and the attitude of the landlord, they may do it for free or they may do it in exchange for you paying a higher rent. Your franchisor may be better placed to handle this for you but it is always worth exploring as it can make a large difference to your upfront outlays. Each franchisor is different and each deal is different but if you really want a particular business and you have presented yourself as a desirable franchise candidate then it is still possible to negotiate and craft a purchase solution that works for all parties. If you are not confident with raising these issues or being able to handle the discussions that will follow, seek professional support.
CEO Consulting specialises in developing, launching and growing franchise systems in Australia and international markets. Services include Strategy, Feasibility, Analysis, Franchise Model Design, Franchise Development, Marketing, Sale & Purchase negotiations, Franchisor and Franchisee Mentoring & Support. Robert is one of Australia’s leading Franchise experts and an authority on Franchise start ups. Formerly the Australian Head of Franchising for both ANZ Bank and Westpac as well as CEO of RAMS Home Loans. For further information contact Robert Graham, Managing Director at CEO Consulting: Phone: 1300 764 484 Email: robert@ceoconsulting.com.au Web: www.ceoconsulting.com.au
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Buying a Franchise?
Debbie Pham - CEO, Kids Korner
If I had a dollar for every time I was asked the question “Which franchise should I buy?” I would be very rich indeed. If I had another dollar for every time I was asked “Which franchise would make me the most money?” Well let’s just say I would have retired long ago.
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Consider lifestyle when choosing the best franchise for you
Below are some of the factors you should consider when working out the best franchise choice for you:
What do I want to do? If you could do anything what would it be? Owning a franchise takes a lot of work and dedication so you may as well buy something in an area you enjoy working in or are passionate about. Your love of caring for children, nutrition, real estate or the great outdoors might be the key to choosing your next franchise. Remember, most franchisors will provide training to new franchisees so don’t let a lack of experience put you off your dream job.
Where do I want to do it? Make sure you give some serious thought about where you want to work as this could affect the franchise you buy. If it has always been your dream to work close to home, then you need to consider a franchise that meets the needs of your local area. You may need to think outside the square a little to find something that suits the local market, but it will be worthwhile once you have halved your commuting time.
What hours do I want to keep? The hours you want to work are a huge consideration when determining your ideal franchise. One of the reasons I bought into childcare was the hours are much more family friendly than those of retail. As a mother, it was important I had weekends and public holidays off and I didn’t want crazy busy periods around Easter, Mothers’ Day and Christmas either. While this won’t matter to some, it was something important to me. Identify the hours you want to work and always consider them when choosing a franchise. The truth is there are so many franchise options available that I couldn’t even name them in this article. There are big brand franchises. There are small brand franchises. There are franchises best suited to cities. There are franchises best suited to the country. Some are retail. Some are in consulting. Some are business-to-business and some are business-to-consumer. The best franchise for anyone to buy is the
franchise that suits their lifestyle – or the one they want to have. With no two people and no two lifestyles the same, it is fair to say different franchises suit different people. If you are really serious about buying a franchise, stop asking the question “which franchise should I buy?” and start considering “What is the best franchise for me?”
How important is a steady income? You should also identify how important a steady income is to you. Some sectors are more influenced by economic changes such as interest rate rises, the strength of the Australian dollar and changes to CPI, than others. These changes could mean serious variations in your monthly income. Make sure you know and understand the effects
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Only then will you find your perfect franchise.
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E x per t Advice “By recognising the lifestyle you have and the lifestyle you want, you should be able to get a much clearer understanding about which franchise is right for you.”
of economic changes on your particular franchise sector.
How much money do I want to earn? When thinking about how much money you want to earn, weigh the benefits you want from your franchise against your projected income. It might turn out that you are prepared to earn less money in exchange for working close to home and having weekends off. Income v lifestyle is a very personal decision and one you cannot take lightly.
Do I like working with other people? Think about the environment you prefer to work in. Do you like to work alone or would you rather be surrounded by a team of people? Do you love the face-to-face contact you get with retail customers or do you prefer working with children? The arrival of the online business means you can even choose to work solo, from home, if you want. Identify the type of people you like to work with and keep referring to that when making your franchise choice.
What are my strengths and weaknesses? Identify your strengths and weaknesses and weigh them against the skills you will need for a particular franchise. Are you good at managing people? Can you handle stress? Do you like early mornings? Make sure the franchise you choose to buy plays to your strengths and not to your weaknesses.
How much money will I need? Different franchises can vary in price considerably. Establish how much money you can afford to invest as this will determine the type of franchise you can buy. You will also need to look at the ease of securing finance to buy a particular franchise. Depending on the sector, you may find securing finance far more achievable in one sector than another.
How much help will I need? As a potential franchisee, find out how much support you’ll receive to open and successfully run your own business. This will be especially important if you are buying into a new industry where you have little, or no, experience. Look for a franchisor with extensive experience in owning, building and operating successful businesses as their knowledge and real life experience in site selection, staffing, marketing and customer care will allow you the greatest chance of success.
Are there opportunities in my franchise sector? As a potential franchisee, do your research around the opportunities that exist in that particular sector. I built my first childcare centre following a baby boom and in response to a chronic shortage of places and centres. Look for areas that present a current – and future - growth market.
Accept that things change As things change you may need to revisit the above checklist to make sure your
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franchise choice is still relevant to your lifestyle. I used to own a successful Australia Post outlet. However, after I had children, my situation changed and I eventually made the choice to move into childcare. If you accept that things will change in business, you will be more open to opportunities that present themselves later. Franchise businesses are a proven safer business model that enjoy a 2-3 times greater chance of success than other small business start-ups. Apart from deciding what you want to do, when you will do it and where you will work, you will also receive other benefits that include being your own boss, increased flexibility and greater tax breaks Buying a franchise is a long-term lifestyle choice that comes with huge opportunity and rewards – both financially and personally. However, deciding which franchise to buy will be one of the biggest decisions you will make. By recognising the lifestyle you have and the lifestyle you want, you should be able to get a much clearer understanding about which franchise is right for you. Award-winning franchisor Debbie Pham created Kids Korner as a way to ensure state-of-the-art childcare centres for Western Sydney. Debbie is seeking potential franchisees to meet the ever growing demand for highest quality childcare in Australia. The Kids Korner long day care franchise offers quality childcare with a focus on a balanced and educational curriculum. Our extensive experience and support network will help you grow and achieve in business. For further information contact: Phone: 1300 909 901 Email: enquiries@kidskorner.com.au Web: www.kidskorner.com.au
DONâ&#x20AC;&#x2122;T MISS OUR NEXT ISSUE!
Home-based v Mobile franchises Which oneâ&#x20AC;&#x2122;s for you?
Want to learn more about trends and growth industries in franchising? Need help making the big decisions? Every edition we feature advice from the experts to help you on your franchising journey.
Find out more about home based v mobile franchises in the March / April edition of Business Franchise Australia and New Zealand. On sale 7th March 2014.
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Franchising for Financial Stability:
Bakers Delight’s Franchisee program makes owning a successful business a reality “Buying into a franchise business is a good option for those looking to reduce risk and increase the likelihood of their business being a long term success.”
Gerry Gerrard - General Manager, Bakers Deight
The New Year brings with it renewed confidence across the business community. As the retail sector shows further signs of growth, consumer confidence is also strengthened. Market buoyancy offers new opportunities for potential new business owners looking to embark on their own venture.
Starting your own business is a significant decision, requiring substantial investment. As Australia’s most successful bakery franchise, Bakers Delight is well placed to answer key questions asked by potential owners at the start of any new business venture. There are many things to consider. What are you passionate about? What type of business best fits your skill set? Do you need to undertake training? What sort of business will be a solid investment for the future, and how can you increase your chances of the business being prosperous? Then there is the question of financial capital – can you do this on your own, or will you need financial support? Should you start out independently, or invest in an established franchise business? New business owners want a long term and sustainable investment that can thrive during good times and bad. When embarking on a new business opportunity, it is important to consider a range of factors to best reduce risk and increase likelihood of success.
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The signals of success A great starting point for potential business owners is a recent research report by Griffith University entitled ‘Survival of the Fittest’. The study compared the performance of franchised versus independent small businesses during times of economic uncertainty and recovery. The findings of this study led to some interesting conclusions regarding franchisees in comparison to independent business owners. The report says: “What sets the experiences of franchisees apart from independent businesses is the role that the franchisor plays in providing pre-entry information and the ongoing support they provide in the day-to-day operations of the franchisee’s business”. While this added “support” comes at a cost, in the form of larger financial outlays at start-up and ongoing royalties, franchises are also more appealing to individuals as they mitigate the risks associated with starting a new business from the ground up. In addition, the findings revealed that franchisees are actually at an advantage
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when seeking finance, as they are much better recognised by financial institutions than independents. So while initial financial outlays might be higher for a franchised business, there is evidence to suggest this investment has definite advantages and can reap future rewards. A franchisor has the benefit of experience, tried and tested processes and business systems which can be shared with new franchisees. Also new franchisees benefit from established brand equity – a name and products that customers recognise, trust and love. For those starting out, investing in a franchise removes the work of building a brand from scratch. Buying into a franchise business is a good option for those looking to reduce risk and increase the likelihood of their business being a long term success.
Case study: Bakers Delight’s Franchisee Program Bakers Delight is testament to the benefits of a thriving franchise business model. It was established in 1980 as a single bakery on Glenferrie Road in Hawthorn, Melbourne. It now boasts over 700 bakeries employing more than 15,000 people, and serves two million regular customers per week throughout Australia, New Zealand, and Canada. The bakery franchise has decades of experience in helping make the dream of business ownership a reality for hundreds of successful franchisees, and is currently growing its pool of aspiring franchisees to support the business’ core long-term growth strategy across Australia. With access to proven management and operational systems, Bakers Delight’s franchisees are well positioned to establish profitable bakeries. By tapping into an experienced network, franchisees gain a greater sense of business security. Financial guidance is provided to franchisees in the form of disclosing group and individual bakery finance reports and other key performance measures, to identify areas of improvement. Bakers Delight also assists franchisees in negotiating bakery public liability, and offering national purchasing programs to assist in minimising operational costs. In addition, the network has established relationships with banks, which assists in decreasing the cost of franchisee finance.
Multi-site Operator Case Study Sam Dunlop, Bakers Delight Malvern Central and Toorak, Victoria
After completing a Bachelor of Business, Sam Dunlop worked for a dairy distribution company, but found himself in need of a new challenge. He didn’t want to start his own business, so franchising was a great alternative. After seeing an advert in the newspaper, and spending five months researching his options, Sam decided to buy into the Bakers Delight business. He underwent an intense four month training program alongside a current franchisee where he learned to bake, manage staff and manage his bakery on a day-to-day basis.
The process to becoming a franchisee occurs in two stages: 1. The candidate goes through an interview process, bakery orientation and two day obligation-free trial. This process can take as long as needed. 2. Once approved, the candidate goes through a four-month training program in a bakery environment, learning everything from baking skills to effective management practices. Depending on the individual, this process may be fasttracked. Bakers Delight continues its franchisee recruitment drive due to the strength of its product offering and successful business model. Over the past 33 years it has refined
Fast forward seven years later and Sam had bought his second Bakers Delight bakery, now employing a team of 25 staff across both. Sam says the support provided by the network makes effectively managing a bakery less daunting. “You’re never alone because it’s likely someone else has been through the same problem, so you can give them a call and they’ll talk you through it. “In my own business I would have had to be the marketing, IT, industrial relations and food safety systems person. But with Bakers Delight I can rely on their proven systems to help me with elements that aren’t my areas of expertise.”
its overall offering to provide a stable model for potential franchisees to embark on the prospect of business ownership. Gerry Gerrard is a General Manager at Bakers Delight, Australia’s most successful bakery franchise, established in 1980 as a single bakery on Glenferrie Road in Hawthorn, Melbourne. An Australian owned company, Bakers Delight boasts over 700 bakeries employing more than 15,000 people, serving two million regular customers per week throughout Australia, New Zealand, and Canada. For further information, visit: Web: www.bakersdelight.com.au
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Buying a Franchise:
How to Choose the Right Franchise for You What are the essentials to choosing and securing a successful franchise that meets my budget? Business Franchise asked Rod Young, one of the world’s leading franchise consultants and Chairman of the DC Strategy Group for his advice on buying a franchise. His advice has guided many franchise networks in establishing successful franchise ventures across the globe. Buying and operating a franchise is an exciting and adventurous process. For most people, buying a franchise will be the
most significant investment they make in their lifetime, akin with buying their first home. Imagine buying a house without looking in every room, getting a surveyors report or researching the value of similar houses in the area. At least the same level of due diligence should be undertaken when buying a business, even if it is part of a successful franchise network. The primal motivator for every franchisee is the opportunity to build an asset that has future saleable value and an asset for the future of the family. Franchising has created opportunities for hundreds of thousands of franchisees around the world. It has proven to be one of the most successful business models over the last 100 years and with the continual interest in people advancing their lives combined with the shrinking of the global labour force,
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franchising has many years of success ahead. Franchising however is not a guarantee of success. Like all businesses, franchises can, and do fail from time to time. When this happens, franchisees blame the area or territory, the location, their competitors, the franchisor or some other factor beyond their control. Rarely will franchisees admit that “I failed to understand my business before I invested and if I had done my research I would never have bought it”. In the future, don’t be surprised to see businesses, including established franchises fail. Blaming external factors or the economy for failure is glossing over the deeper issues of why the business failed. Good businesses should be able to withstand and weather the ups and downs that many businesses experience over the years
The average tenure of a franchisee in many networks is between seven to eight years. It is hard to find a period in history when we have gone seven years without some form of economic turmoil. Why then are people prepared to invest their life savings into a business which they should have known would not survive if revenue dropped by, say, 10 per cent? Avoiding failure in any business, franchises included, begins a long time before you sign an agreement and commit to a contract for a significant period of time. It begins when the idea of owning your own business first enters your mind. Given the financial and contractual nature of the franchising relationship, it is crucial that prospective franchisees thoroughly evaluate the business opportunity and the franchisor before committing to buy into a franchised business. Just because the anecdotal evidence strongly suggests that franchising is not as risky as an independent business where you are on your own should not be considered a guarantee of success.
Step One: Set Your Limits Assuming you have an open mind on the particular type of franchised business you would like to operate, the two key considerations in buying a franchise are: • What size of investment can you afford? • What are your criteria and industry/area of interest? With a wide range of franchised systems on offer, from mobile man-in-a-van, or service franchises, education franchises to large scale multi employee retail, food service or B2B service businesses, the prospective franchisee is faced with a seemingly endless range of opportunities. Assuming you’ve already culled out those systems which don’t interest you, those for which you are not suited or those that demand operating constraints you are unwilling to meet, the first step in filtering this range of potential opportunities is to be realistic about the amount of money you are prepared to commit to the business. Here, the smart prospective franchisee will determine what they can afford and then commit to no more than that - just like the rules at an auction, set your limit and stick to it. Other criteria to consider include:
“Your assessment should be conservative - err on the side of understating revenue and over-stating expenses to gain a conservative view of the business.” • Where will the investment funding come from?
• Do they listen to and learn from their current franchisees?
• What is the level of debt and the cost of debt service and principal repayment?
• Do they have a clear vision and growth plan?
• How much income do you expect in return for your investment?
• Do they have a good, solid growth history?
• In what geographic area should the franchise be located?
• How good is the induction and training program, especially if you are a novice in the product, service and/or business?
• How many days will your franchise trade? • How many staff are you prepared to employ and manage every week? • How many days/hours are you prepared to commit per week? • How many years are you expecting to be involved? • Do you have the support of your spouse or partner and what role, if any, will they have in the operation of the franchise?
Step Two: Ask the Right Questions You must reduce your list of potential franchises down to a manageable level - say, three or four. Take a good look at the list. Do you really see yourself operating any of those businesses for a period of years? Ask yourself these questions: • Does the business present well to you as a consumer? • Do you understand the business? • Have they proven their ability to secure quality locations or operate in multiple regions? • Are current franchisees profitable? • Are they seen in the media and portrayed well? • Are current franchisees happy? • What is the marketing and advertising program like? • Do they have strong relationships with the banks? • What is the quality of the management and leadership team? • Do they have company owned operations?
• How well developed are their management information systems? • Do they have an operations and procedures manual? • What level of ongoing support is provided?
Step Three: Make Your Application Most franchisors will ask you to submit a formal application form. Be wary of those who don’t - it’s a sign they don’t care about who becomes a franchisee or they may not fully understand the business of franchising. Take your time with any application. If you have to hand write it, do so carefully. Be honest and forthcoming with information, it’s not in your best interests to mislead anyone about your ability to operate or fund the franchise. A constant recurring issue for prospective franchisees is underestimating the amount of finance and working capital that is available. You should live within your means and invest within your means as an undercapitalised business is difficult to make successful. You may be asked to pay an application fee of some kind. Make sure you receive a receipt for the fee and a written assurance that the amount is fully refundable until you sign a Franchise Agreement. In Australia, the Franchise Code of Conduct can help protect you here in that the Code which is part of the Competition and Consumer Act which dictates that a franchisor cannot charge a non-refundable fee until the franchise agreement is signed and a cooling off period of seven days has elapsed but it is best to get the franchisor to acknowledge that is the understanding as well as the law.
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including the financial challenges that the world goes through from time to time.
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“There is perhaps no more telling test of a franchise system than to speak with a range of current franchisees.”
Obviously, the balancing factor is that you will not have the certainty of a proven trading history for that particular location. As an alternative to a Greenfield franchise, an established business enables you to take some comfort in the proven trading history so, in effect, it is generally perceived as a lower risk option. However, you may have to deal with the history of the previous franchisee. If the premises or vehicles are looking a little tired, a refurbishment or upgrade can restore the appearance. Don’t forget the current franchisee’s reputation in the market - which could be good or bad. Similarly, existing employees could be a positive or a negative influence. A key issue to consider is the potential for further growth of the business; is there more growth to be had or has it reached its peak? There is no substitute in business for having detailed and accurate historical financial information for the performance of a business. The quality of the numbers is crucial and frankly, some examples defy belief - they lack detail and in some cases, any semblance of accuracy.
Step Six: Do your Own Due Diligence Step Four: Talk to Franchisees There is perhaps no more telling test of a franchise system than to speak with a range of current franchisees. The validation of the franchise system by the current franchisees is a key test of the success of a franchised network. Don’t just limit yourself to those suggested by the franchisor - they will undoubtedly pick the happiest franchisees.
• What would they change? • Are the marketing campaigns delivering customers?
Step Five: New or Established
• Are they satisfied with their investment and the business?
Let’s assume for a moment that you’re the type of person who can tolerate a reasonable level of risk and as such, you’re prepared to venture into a new Greenfield franchise where the franchisor has not operated from a location in the area or within the territory. What should you look for, what are the questions to ask and how do you arrive at a commercially sound decision?
• Would they recommend this franchise to their friends and family?
Some of the benefits of taking on a new Greenfield franchise include:
• Would they sign up again knowing what they know now?
• No goodwill is payable to a previous franchisee
• What support does the franchisor provide?
• It is a brand new operation and the local reputation of the business can be established as desired
Speak to a range of franchisees and ask them:
• Is the franchisor reasonable? • Is the franchisor willing to listen? • What problems are other franchisees experiencing?
• If it is a site based franchise, the landlord may be prepared to make a contribution toward fit out and/or negotiate the lease terms to link rental to sales levels.
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By this stage you should have contacted and met with your target franchisors and secured a first meeting or, hopefully, some financial details about the offer. You may be asked to sign a confidentiality agreement. Regardless of the information the franchisor provides, you must develop your own view of the financial aspects of the business. There is no substitute for a thorough understanding of the establishment costs, revenue potential and operating expenses. Choose an accountant who is experienced in small business and franchising. Discuss how he or she can assist you in reviewing the financial information and advising you on the potential of the business. Your assessment should be conservative err on the side of understating revenue and over-stating expenses to gain a conservative view of the business. Ask yourself: • Are my assumptions reasonable? • Do any other franchises in the network achieve the levels of patronage I think I can achieve? • Are businesses close by achieving the level of patronage I think I can achieve?
• Is my cost of goods assumption realistic and consistently achieved by other franchisees? • Are the accounts of the existing operations accurate? • If it is a mobile or service franchise, are the running costs of a vehicle adequate for the territory? Present your assumptions and findings to your accountant and ask for his or her candid opinion.
Step Seven: Establish Finance Some franchise systems are accredited with major banks. This means the banks have done their due diligence of the franchise system and may be prepared to finance part of your establishment costs against the business. Be careful. You don’t want to exceed the limit you set for yourself originally. Test the financials again to see if the business can sustain the loan repayments required to fund the initial capital costs.
Step Eight: Use a Specialist Lawyer You will most likely be provided with a pro-forma copy of the franchise documentation. If you receive only a summary of the Franchise Agreement or just the Disclosure Document ask for a full copy. No reasonable franchisor should refuse this request. A franchisor that won’t provide a full copy of the franchise agreement should ring warning bells. If the franchisor refuses to provide one - walk away. The franchisor should provide you with a copy of a Disclosure Document as well as the Franchise Agreement. The purpose of a Disclosure Document if to provide information on the sector the franchise operates in, outline the history of the business of the franchisor, who the directors and shareholder are, the business history of the franchisor’s directors and key officers including any previous history of business failure they may have been associated with, the number of units granted, opened and the units that have closed or been terminated and importantly details of the capital costs including working capital needed to
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• Do my rental and wages expenses include ancillary costs like rates, utilities, employee benefits, holiday pay and health insurance?
establish the franchise and the profit and loss model based on the performance of current franchisees. The contents also should include items such as the intellectual property being licensed. You should engage a specialist franchise lawyer with experience in both business and franchising to review the proposed agreement, disclosure document and any other documentation the franchisor provides. There is no value in engaging a non-specialist to review the Franchise Agreement because such agreements are, by their nature, substantially different to ordinary business contracts. A specialist legal advisor is a must. It’s a worthwhile investment and importantly saves you the investment of paying a lawyer to learn franchising at your expense.
Step Nine: Keep Asking Questions A quality franchisor will be willing to answer all your questions and provide you with enough information on which you can make a fully informed decision. Don’t fail to ask simply because you think the question is stupid - ask it anyway. You must be comfortable with every aspect of the business, so ask, ask, ask and keep on asking until you are satisfied. Only after you have completed all these steps should you contemplate signing a Franchise Agreement. So, in summary: • Set your limits - know how much you can comfortably afford • Make sure the franchise meets your criteria • Ask the right questions - use key questions to shortlist three or four potential franchises • Make your application - complete it as thoroughly and accurately as you can • Talk to current franchisees - they are an excellent source of information about the franchisor and the business • Do you own due diligence - err on the conservative side and use an experienced accountant • Establish finance - evaluate the various banks with whom the franchisor is accredited • Use a lawyer with extensive franchise experience - only a specialist should review your legal documentation and advise you
Rod Young - Chairman, DC Strategy Group
• Question - ask all the questions you want until you are satisfied you understand everything. Only after completing these steps should you contemplate signing any legal documents that bind you in any way and commits you to investing your hard earned money. It’s your responsibility to understand the business and make a fully informed decision. And finally... Understand the franchisor is not responsible for your success or failure. That obligation rests with you as the proprietor of your own franchise. It will be your job as a franchisee to ensure your franchise is profitable. If you cannot accept that responsibility you are not yet ready to make the transition to being your own boss! Rod Young is considered to be one of the world’s leading franchise consultants. Rod has over 30 years’ experience in franchising, licensing and business development in Australia, Europe, China, South East Asia, India and the United States and is the founder and Chairman of DC Strategy, the specialist franchise consulting, legal and recruitment firm. DC Strategy is the region’s leading and longest established franchise advisory firm comprising consulting, legal, recruitment and brand and marketing divisions. Their highly experienced specialist teams have developed many of the region’s most successful franchise networks and brands creating well over a billion dollars of enterprise value for their franchise clients in the last decade alone. Phone: 02 8220 8711 Email: rod.young@dcstrategy.com Web: www.dcstrategy.com
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The Value in Service Franchises Where should I go, and how do I know my territory is sufficient to support me? Do I get what I am paying for?
SEIFA map of Sydney, showing the breakdown of areas into 5 quintiles
HES map of Household Services and Operations
Service franchises have a great range of entry costs, from free entry and a high level of royalties, to a high entry cost with lower royalties, or a medium entry cost and a flat weekly or monthly payment.
systems like Jim’s and V.I.P. tend to follow this model.
No matter which model you are working with, over a period of time you can estimate the payments to your franchisor, and is this value for what you receive?
• Pool cleaning
In the service businesses, we often see large areas set out with very strict boundaries. The financial institutions such as ANZ, Mortgage Choice, Aussie and CBA all have models like this, as they then allocate leads, and it needs to go to the right franchisee (who has paid for that area). Often lower cost entry systems have less rigor around their territories, OR they have very well defined territories, and a more open policy in that only a certain number have ever been sold. This allows you to exclusively work your own patch, and then still work across any unallocated territory. The question comes though is what if they ever sold all their territories – would the franchisees actually have enough work to survive? Many of the multi-disciplinary franchise
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Within service franchises, there are the indoor ones such as: • House cleaning • Ironing • Oven cleaning • Portrait photography • Befriending the elderly • And many more. Similarly there are a large number of outdoor service franchises which include; • Dog walking and washing • Building and renovating – whole houses if required • Antennas • Roofing • Paving • Kerbing • Gardening and landscaping • Junk removal • And many more. If you like the outdoors, think of yourself as a bit ‘macho’… sun, rain, wind as well as an occasional day spent in the beautiful outdoors, maybe one of these is for you?
The Demand curve The demand for these types of household services correlates closely to high economic areas. We look at this in terms of SEIFA
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“In the Service businesses, we often see large areas set out with very strict boundaries.” (Socio Economic Index For Areas), which is an Australian Bureau of Statistics product, and tells us a score for every area in Australia, centering around an average score of 1,000. I like to describe it as a line from Affluent to Effluent, and everywhere in Australia sits somewhere on that line! High SEIFA areas are typically ones where the housing price is high; most people are in employment, and in most cases in Professional or other well paid jobs. Typically of this are areas such as the northern suburbs of Sydney, Melbourne’s inner east and Perth around the Swan River. Lower SEIFA areas would be both Melbourne and Sydney’s western suburbs in general. The demand for household services is definitely stronger in higher Socio Economic areas according to our research and experience. To confirm this, we demonstrate the 20092010 Household Expenditure Survey (HES) which was conducted with around 10,000 households asked to fill in how they spent their money. One classification we can examine in the HES data is Household Services and Operations:
split their territories very poorly. Smart franchisors move away from what we call the “Beer and Pizza” map to a proper, statistical based system so we can give each franchisee similar opportunity within their territory. The “Beer and Pizza” map has traditionally been done with a black text on a large map, strongly influenced by some early entry, self centered franchisees drinking beer (or red wine) and eating pizza at the franchisor’s expense. The down side of the Beer and Pizza map is that no data has been used, just a keen eye, and normally a group of self fulfilling designers! The way we recommend is to firstly understand what makes for a good customer of this service franchise ie. who is going to be our customer? This can be done by creating a picture of who the ideal customer is, or if the business already exists, plot the customers, and look for areas (post codes ideally) of high concentration (penetration, or customers / 1,000 households) of customers. By then comparing to the demographics of the post
Peter Buckingham - Managing Director, Spectrum Analysis Australia Pty Ltd
codes of high penetration, we can see if our service franchise works best in high vs. low income, areas of older vs. younger people, areas high with families, or whether ethnicity may have some effect on the business. Once we know which drivers are good for the business, we can calculate a score for each post code. For example if one household was likely to spend $10 on your service on average, then a household in a high demographic area may be considered to spend $15 per household, and a household in a lower demographic area may spend $5 per household. If each post code was equivalent in the number of households, say 10,000, then the higher area would offer you $150,000 of potential sales,
These maps confirm the relationship the HES shows us to spending on Household Services, as compared to higher vs. lower economic areas, as shown on the SEIFA map.
Territory Design Smart franchise systems try and adapt the size of the territory so that each territory gives the similar amount of opportunity for a franchisee. As you would imagine, if we simply split up a market into territories each of 40,000 households, you would much prefer to have the service franchise for pool cleaning, gardening, or dog washing around Camberwell, Toorak, Double Bay, Hunters Hill or Claremont (WA), than around St Marys, Cabramatta, Sunshine or Broadmeadows. Some franchise systems wonder why some of their franchises are keenly sought after, whilst others seem to have no interest at all. Inevitably they have
Beer and Pizza map
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High vs. Low cost Franchises There is no rule to set the cost of entry, royalties etc for a franchise system, more a couple of models that are generally followed. If the system has some definite, exclusive IP, then there is an argument for a higher entry fee, as it probably has higher money earning potential. For example, if I had an exclusive product, very well priced that was in strong demand, then I would expect to be able to ask more for potential franchisees to come on board. Often these products may be some vertical marketing where the franchisor is also the exclusive supplier of the goods. If on the other hand, I was a very well organised house cleaning or lawn mowing franchise system, I would always be competing against an individual who felt they could do it themselves. This simply values the franchise as the value of gaining them work and a name they can use. (No doubt for example the Jim’s or V.I.P. names have good customer recognition). This does keep the entry cost down for a franchisee, and does create more franchisee turnover (churning) as there is less to lose if they leave the franchise system. Our experience is that outdoor service businesses definitely have more opportunity in higher socio economic areas than lower ones; however a good franchisor will balance the territories they create so that each area gives a similar amount of opportunity for the franchisee. Funny how some franchisors seek your commitment, but will not commit to their own system to set the territories up properly! Map showing territories of similar potential for the Franchisee
whilst the lower socio economic area would only offer you $50,000 of potential sales. Therefore if we decide to do this across the total market such as all of Melbourne, we may conclude the total market offers us 1,200,000 households at an average of $10 per household = $12,000,000. Being a good franchise system, we may have concluded we want 30 franchises across Melbourne, so we want each franchise to have $400,000 of potential. To balance the potential so each territory is similar, in a high socio economic area,
when we add the post codes together to come up with $400,000 of potential, it may take 29,000 households, and in a lower socio economic area, we may need 50,000 households to give the same amount of opportunity for the franchisee. This type of calculation can be done for any market, and rather than trying to adjust the franchise fee for a higher potential area, compared to a lower potential area, we believe it is better to keep the franchise fee constant, and adjust the area’s size, so each franchise area is considered to offer similar opportunity.
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If your franchisor is showing you a territory based on the ‘Beer and Pizza’ map, ask yourself whether you should trust your investment to this franchise system? Peter Buckingham is the Managing Director of Spectrum Analysis Australia Pty Ltd, a Melbourne based mapping and statistics consultancy, a Certified Management Consultant, and Victorian Chapter President of the Institute of Management Consultants. Spectrum specialises in assisting clients with decisions relating to retail location, using various statistical techniques. Phone: 03 9882 6488 Email: peterb@spectrumanalysis. com.au
profile : Cafe 2U
One year into it & the WOW factor is bigger than ever.
You too can be a part of the picture… When asking Kay Omiros, owner of Cafe2U Redlands, QLD to describe her first year of being a Cafe2U Franchise Partner, she responded with a simple “WOW!” February 2014 marks the first birthday anniversary of Cafe2U Redlands, and things couldn’t get any better. “While it has obviously been a huge learning curve not only due to working in a totally different industry, but running a business for myself; I have reaped so much. I have had the opportunity to have my sea change, meet so many great people and most importantly, finally achieve my dream of my own coffee business!”
Acceleration Package Like Kay, for many investing in a franchise is the fulfilment of a lifelong dream, which is often accompanied by fear and the risk of being a new business owner for the first time. Kay chose franchising to provide her with the infrastructure to be successful in her first business endeavour and states that “without the Acceleration Program exclusively offered by Cafe2U, my business would not be where it is now. My Franchisee Development Manager (FDM) gave me the confidence to be able to run the van and build on what was established during the two week launch phase,” says Kay. Cafe2U’s Acceleration Package is designed to take away those initial fears and the financial concerns that come with starting any new business.
“The Acceleration Package is a unique, comprehensive four week training and support program for new Cafe2U franchise partners,” said John Stanton, Australasian Franchise Recruitment Manager. “The Acceleration Package enables new franchise partners to be trained and in operation in only four weeks, with a guaranteed minimum turnover of $500 a day.” The first week of the Acceleration Package is formal training, the second is preparation week and weeks three and four are the business launch, with your personal launch specialist by your side, to guide you every step of the way.
Support The support from Cafe2U doesn’t stop here. Once settled in your new territory, you will receive a weekly phone call from your personal FDM accompanied by a quarterly visit to create and assess a Business Investment Protection Plan, which is designed to help you build your individual business. “Cafe2U have continued to provide me with the necessary training and monitoring since the launch of my business in February. Any issues or questions I have had, my FDM or Cafe2U Head Office have been there for me, walking me through what I have needed to do” says Kay. Kay loves her job and wouldn’t change it for the world. In fact, she would highly recommend becoming a Cafe2U franchise partner to anyone else. “Owning a franchise has given me the flexibility which I never had before, to put what is important in my life, first.”
80 Business Franchise Australia and New Zealand
Proven Business Model John Stanton attributes Cafe2U’s success to its proven business model, ability to provide franchisees with a guaranteed income and the work/life balance it affords them.
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“Many of our franchisees… enjoy the lifestyle element of being part of the Cafe2U business – it is a mobile operation and is often outdoors. Typically our franchisees will have an early start and early finish, allowing them more family and leisure time, which is often a very attractive prospect,” said Stanton. He adds the comprehensive ongoing support Cafe2U provides its franchisees, differentiates the brand from its competitors. The Cafe2U franchise package includes a Mercedes Benz van complete with state of the art commercial equipment, which allows franchisees to serve high quality coffee and a range of food without the added expense of fixed location premises. If you feel that you too would like to see yourself in the picture painted here, contact Cafe2U now to find out how. Contact John Stanton on: Phone: 1300 223 328 Email: franchises@cafe2u.com.au Web: www.cafe2u.com
CAF
Cafe
coffee, tea... and me! Put yourself in the picture. Get out of the rat race and into your own Cafe2U Mercedes Benz. Enjoy meeting people and making money with the proven techniques of the worldâ&#x20AC;&#x2122;s largest mobile coffee franchise. Enjoy your work. Spend time with your family. Be your own boss!
1300 223 328 (AU) 0508 004 388 (NZ) www.cafe2u.com CAFE2U004
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Business Franchise Australia and New Zealand 81 24/11/2013 10:12 pm
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THE SEVEN DEADLY SINS OF FRANCHISE RELATIONSHIPS
82 Business Franchise Australia and New Zealand
“‘I Did It My Way’ may be a song that franchisors love to sing. But it is not a tune they like to hear from their franchisees.” Over the years I have spoken in some depth with hundreds of franchisor executives about their experiences working with franchisees. I have found most of these people to be genuinely motivated by a desire to see their franchisees prosper. Yet most, at one time or another, find themselves harboring feelings of frustration or hurt, brought on by what they see as unreasonable or vindictive behavior by their franchisees. Although such interpersonal tension comes with the job of being a franchisor, it is in the interests of franchisees and franchisors to work at building good relationships with each other.
we expect we tend to instinctively look for a cause outside of ourselves. Similarly, when sales are going well the franchisee may attribute this to their own hard work and talent. But if sales drop the franchisor will often get blamed, sometimes unfairly. This only serves to frustrate and demotivate franchisor staff and certainly does nothing to enhance their creativity or desire to try new marketing initiatives in the future. Instead of waiting until sales are dropping, why not give your franchisor a call when sales are going well and congratulate them on the excellent marketing support they have provided. You will be building goodwill and reinforcing the franchisor to continue their creative efforts for your benefit.
In this article I will share some research findings on seven types of franchisee behavior that gets franchisors off-side and thus damages the franchise relationship. Perhaps we could call them the seven deadly sins of franchise relationships.
Franchisees who take the maintenance of standards and day-to-day routines seriously can almost guarantee the respect and support of their franchisor. In a franchise environment, slacking on operational standards gives everyone a bad name and is certainly unlikely to win you many friends or customers.
1
The Slack Attack
Nothing annoys franchisor staff more than a franchise operation that looks run down and shabby due to a lack of effort by the franchisee.
3
The Frank Sinatra Syndrome
“I Did It My Way” may be a song that franchisors love to sing. But it
Experimenting with your franchisor’s concept without prior consultation is bound to get you into hot water so be sure to use proper channels for trying out new ideas.
4
The Clingon Reaction
2
Human beings have an uncanny ability to interpret events to suit their own interests. For instance, we like to take the credit when things go well in our work, however, when we are not getting the results
is not a tune they like to hear from their franchisees.
For instance you might participate in a product advisory team. If you are a particularly creative person, why not arrange to have your business used as a research and development site?
In the past I have argued strongly that it is a franchisor’s responsibility to ensure the relationships they have with their franchisees are effectively managed. However this will only work if franchisees also take responsibility for keeping their franchisor on side.
The Blame Game
Greg Nathan - Founder, Franchise Relationships Institute
Although businesses must change if they are to remain in touch with their customer’s needs, when changes are proposed in a franchise network, they tend to be greeted with a range of responses. While many franchisees will consider the changes with an open mind, some will habitually reject the proposals outright without properly considering the merits of the change. I call this the “Clingon Reaction”, clinging on to the past, without any logical reason, even if it means becoming out of step with your customers. Rather than putting your franchisor in a position where they feel they have to drag you kicking and screaming, why not investigate the change with an open mind by asking questions and weighing up the risks and opportunities in a logical manner.
Business Franchise Australia and New Zealand 83
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5
Bulletin Blindness
A common task for franchisor staff is taking irate phone calls from franchisees who indignantly ask “Why wasn’t I told?”. The response is typically, “Francis, if you read the bulletin that was sent to you last week you will find all your questions have been fully answered”. Despite being busy and having to attend to 101 urgent details, if you are a franchisee it is vital that you take the time to read the information sent to you by your franchisor. They will no doubt have been carefully prepared with important information on a range of topics to help you with your business.
6
Blowing Up
If you have ever had a boil you will know how painful they can be. What happens is the poison builds up under the skin, creating more and more pressure, until eventually it erupts with a vengeance. Feelings of frustration and resentment can behave in a similar way if they are not appropriately expressed. They build up until they are eventually released in a tirade of poisonous abuse. This makes everyone feel awkward and can damage long-term relationships. Part of every franchisee’s training and induction should include lessons in how to complain effectively. Saying what’s on your mind in a straightforward and honest manner before things blow up is a more positive and effective way to manage your relationship with your franchisor.
84 Business Franchise Australia and New Zealand
7
Playing Prisoner
When you bought into your franchise you hopefully made a properly researched and informed decision. The franchisor was not pushing you or twisting your arm. Yet some franchisees, when faced with difficult or challenging times, behave as though they are prisoners of the system or part of a conspiracy designed to take away their sense of responsibility or freedom. As mature adults we are all responsible for our own decisions. Expecting others to make our decisions for us, or playing the role of victim when things don’t go as we expected serves no-one’s interests. Franchisors are far more likely to respond in a constructive manner if a franchisee with business problems takes the attitude, “I have some problems and I need some help and advice. But at the end of the day I accept that I have to take my own decisions.” The franchise relationship is of course a two way street and franchisors are also prone to their own seven sins. But this is another story. Greg Nathan is a psychologist, Founder of the Franchise Relationships Institute and author of Profitable Partnerships, the world’s most popular book on how to create positive franchise relationships. For more information: Web: www.franchiserelationships.com
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Love Photography. Love Real Estate. It’s time to own a Top Snap Franchise! You don’t have to be a professional photographer or have owned a previous business to become a Top Snap franchisee. Our franchisees come from all walks of life with different sets of skills and experiences. If you love photography, we provide all the training you need to become a Top Snap franchisee. With all retouching done in-house, all you need to focus on is the photoshoot and building relationships with your clients. Top Snap has franchisees operating in 42 territories across Australia and New Zealand, and is continuing to grow! )RU PRUH LQIRUPDWLRQ RQ WHUULWRULHV DYDLODEOH DFURVV $86 DQG 1= FRQWDFW 7RS 6QDS 72'$< WR ÀQG RXW PRUH
1300 TOP SNAP sales@topsnap.com www.topsnap.com
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PROFILE fr anch ise : V.I.P. couaust nci lrof a l i aaust r a l i a
Locking up a better future Brian Martin, a security guard at Darwin Airport and his wife Tita, a cleaner at the same airport were in search of a better lifestyle and wanted to leave their jobs. However, like so many others they were not sure what they wanted to do with their lives and unsure where to turn. After seeing an advert in a local newspaper they got in touch with V.I.P. and began their fact finding into the world of franchising. Fast-forward to today and the Darwin based husband and wife team are now celebrating their fourth successful year as commercial cleaning franchisees and haven’t looked back since. Before joining V.I.P. Brian and Tita did their ‘homework’ into a myriad of different opportunities that are out there. After chatting over the phone they arranged to meet with one of V.I.P.’s Franchise Development Managers who talked them through the award winning system before organising for them to spend some time with an existing franchisee. This gave them the chance to gather more information about V.I.P., ask questions to the franchisee about their own personal experiences of running a V.I.P. franchise along with the opportunity to get some valuable hands on experience of the type of work they would be carrying out on a daily basis. V.I.P. see this as a critical part of the process as it ensures that those joining the V.I.P. team really understand as much as possible about the working lives of franchisees within the industry they are interested in. “Things are going great. There is certainly
“Things are going great. There is certainly plenty of work out there and financially we are just so much better off.” plenty of work out there and financially we are just so much better off. Before we joined V.I.P. we both worked really hard and were making money for someone else. Now the money we make is our own, so if we work hard it’s because we choose to – that said, we can take time off whenever we want to so we get plenty of time to do what we want,” said Brian. Brian and Tita are just one of many couples or partnerships that make the move with V.I.P. into running their own business. Some partnerships start with one of the partners running the business before the other joins them whereas for Brian and Tita the timing was right for them to join together. Brian and Tita met eight years ago and have been married for six years. Brian explained
88 Business Franchise Australia and New Zealand
that their success is largely down to their partnership and how well they work together, “For some working and living with their partner might not be too easy but for us it just works. As we are partners in the business we both do our fair share, the only difficulty is deciding who does the cleaning at our home when we get in!” joked Brian. Other than commercial cleaning V.I.P. also have franchise businesses in home cleaning and lawns and gardens maintenance. If, like Brian and Tita you would like to take control of your own future and secure a better future contact: Phone: 13 26 13 Web: www.viphomeservices.com
THEREâ&#x20AC;&#x2122; Sâ&#x20AC;&#x2122; S AA LOT LOT OF OF THERE
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makesure sureyou youcontrol controlaaterritory territory make The Australian Drug Detection Agency wants highly motivated and independent people to join Thethe Australian wants highly motivated and independent people to join team, asDrug eitherDetection Master orAgency Regional Franchisees. the team, as either Master or Regional Franchisees. The ADDA is a proven business model that will provide excellent financial rewards for those Thewho ADDA a proventobusiness model willcriteria. provide excellent financial rewards for those areisprepared work hard andthat fit the who are prepared to work hard and fit the criteria. This is a huge opportunity for business-orientated individuals who have served, or are currently 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 in law theenterprise. emergency services or the armed forces, to get in at the ground level and enforcement, grow their own and grow their own enterprise. Are you ready to join our experienced group and secure a lucrative future? Are you ready to join our experienced group and secure a lucrative future? Our guess is Yes, you are! Our guess is Yes, you are! s Franchises selling fast s Franchises selling fast s Masters sold in QLD/NSW/VIC s Masters sold in QLD/NSW/VIC
Email: kirk.hardy@tadda.com.au Email: kirk.hardy@tadda.com.au Website: www.tadda.com.au Website: www.tadda.com.au
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SEO and Social Media:
How to Successfully Marke t Your Fr anchise Franchise marketing has always been tricky, and the constant Google algorithm changes donâ&#x20AC;&#x2122;t help make things easier (just last year there were 14 algorithm updates made).
As search continues to evolve, your SEO
than back when you just had one branch and
strategy is going to need to evolve with it.
one management system.
Unfortunately, constantly altering and
This leads to a long set of important
improving your SEO efforts is tougher when
questions: How do you get started with SEO,
youâ&#x20AC;&#x2122;re dealing with multiple franchises
social media, and content management when
because this means multiple locations,
you own a franchise? Should the national
managers and staff, and different audiences
branch be in charge of marketing, or is this
or customers. The way that you structure
something that should be put into the hands
your SEO is going to need to be different
of each individual branch?
90 Business Franchise Australia and New Zealand
“Because SEO is all about branding and creating that visibility, it’s important that there is a big-picture goal and good communication.”
SEO: Top Reasons To Put Your Franchise SEO Efforts Into the Hands of Your National Branch For those who are unfamiliar, a franchise occurs when one person or a group of people earns permission by a company to open up another branch of that company. In other words, earn the rights to that company. These people are called ‘franchisees’. When it comes to SEO, it’s usually best to put all of your efforts into the hands of your national branch as opposed to giving each franchise it’s own power when it comes to optimising a website for Google (which includes not only on-page optimisation, but off-page promotion and link building as well). A few reason include: • Organisation and control. Because SEO can be so intricate and complicated, it’s easy to get confused and make mistakes. Having too many people trying to make decisions can be tough, so it’s best to try and control everything from one branch. Different branches may have different needs when it comes to SEO, but let your corporate marketing team or your one marketing agency take control so that the same set of people are in charge. This will help create a bigger picture and make sure there is no overlap and things stay uniform (our next point!). • Keeping your brand uniform. Although you might have different branches with different needs, everything should remain uniform across the brand. Because SEO is all about branding and creating that visibility, it’s important that there is a big-picture goal and good communication. The easiest way to make this happen: Have the same people in charge of SEO for all branches. • Avoid a lack of SEO knowledge. If you put SEO into the hands of managers, they may not fully understand how SEO works. This could potentially cause each branch to feel the need to either A). Hire
an SEO agency, which would be quite expensive, or B). Do SEO incorrectly, which could get you into a mess, such as a Google penalty, that could take years to clean up. There are also a lot of people out there who claim to be SEO experts who really are not, so putting the decision to hire someone or some agency into the hands of a manager who doesn’t understand SEO could be detrimental overall. • Local ranking factors. If you have a few different branches in a similar location (usually just very large brands), you could run into some local ranking issues. If all of your brands are trying to rank on local search, each branch will probably be targeting similar keywords and therefore becoming competition. The best way to solve this problem is to have the same set of people working on SEO so that they can see what keywords each branch is targeting and at what times. If you split up your SEO efforts this would be nearly impossible. • More cost effective. Finally, it’s usually more cost effective to run your SEO this way. A good agency will work hard to give you a good deal and meet your needs if they know you have franchise work that needs to be done (you’ll be a bigger client to them).
So When Should Each Franchise Location Take Control of Their Own SEO? It’s true that in the majority of cases SEO will run smoother if corporate is taking control, but there are always those companies that don’t fall into the majority. If you’re only working with one franchisee, and particularly if that location is very different than your corporate location (eg: rural vs. urban), you might benefit from letting that branch take over their own SEO efforts. Communication won’t be too difficult since there aren’t that many people involved, and
Adam Heitzman - Co Founder and Managing Partner, HigherVisibility
you’ll have very targeted control over what’s going on because the agency and/or expert will only have one location to worry about when creating a strategy.
Social Media: Should Each Franchise Have It’s Own Social Media Strategy? Social media work typically falls under the SEO umbrella, so it only makes sense that your social media accounts would be managed at the national level as well, right? This is definitely sound logic, but there are a few reasons why social media might be something a franchise manager could control. It’s first important to understand that social media no longer means simply tweeting out a piece of content. It means analytics and data regarding social success, developing posts and designing pages, a system of who will manage all accounts and keep up with comments and engagement. In other words, it’s now a pretty complicated job and something not to take lightly. Consider some of the pros and cons listed below:
When Social Media Is Best at the National Level This strategy means that your company would have one account on each social network—Facebook, Google+, Twitter, LinkedIn, StumbleUpon, etc.—that represents all of the branches. Those at the corporate level would then manage the accounts. You should use this approach if: • Your customers don’t use much social media. Plain and simple, if your audience isn’t using social media to interact and make
Business Franchise Australia and New Zealand 91
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“Social media is a marketing tool that should be specific to your audience, which means it’s a great place to advertise local deals, contests, etc.” purchasing decisions, keeping your social media strategy simple and unified is the way to go. • Your business deals with sensitive information. Industries such as the health industry or a news organisation have to be very careful when it comes to sharing things on social media. This is a quick way to get information out to the public, so you don’t want to trust just anyone to have access to your accounts. • You’re trying to be cost effective.
account and only one team of people managing those accounts will ensure better consistency and no overlap.
When Social Media Is Best at the Local Level This is by far the riskier approach, but it doesn’t hurt to look at the few times this actually might be the best move for your company: • Your locations have significant differences.
Obviously every company is trying to be cost effective, but some are willing to splurge in certain areas. If social media is not your top priority (if you fall into one of the two points discussed above), this is the approach that will save you the most money overall.
Social media is a marketing tool that should be specific to your audience, which means it’s a great place to advertise local deals, contests, etc. By having different social accounts for each of your branches, you can better analyse the demographics of your customers and customise your content.
• You have a large company with many locations.
• You gave your franchise managers SEO control.
This point encompasses all of the points discussed in the SEO section above. One
If you decided that putting SEO tasks into your branch managers hands was best for
92 Business Franchise Australia and New Zealand
you (maybe you’re a small company with only one other franchise location), looping social media into those responsibilities will help keep things organised best. So what’s the case for LinkedIn? This social network is a little bit different because it doesn’t focus quite as much on engagement. It puts a focus on connecting with others in the industry who want to know more about the company (often to potentially find a job), so one LinkedIn account is all you need. In the end, creating a strategy will be similar to how all businesses would create a strategy—analyse audience, look at data, test and retest landing pages, link building, targeting keywords, etc.—but it’s the management that can really make or break a franchise’s marketing initiative. Once you know who will manage all of your search and social tasks, you can start to get into a routine that makes franchise marketing seem like it’s not so tricky after all. Adam Heitzman is the Co-Founder and Managing Partner at HigherVisibility, a recognised SEO firm that offers a full range of internet marketing services. Email: info@highervisability.com Web: www.www.highervisibility.com
'3&& 4&0 "OBMZTJT BOE 2VPUF $BMM /PX FREE SEO Analysis and Quote www.highervisibility.com info@highervisibility.com 901-672-7243 www.highervisibility.com info@highervisibility.com
fr anch isi ng e x po
Explore every opportunity at
Franchising Expo
One of the most challenging things for entrepreneurs planning to start or buy a business is deciding which one best suits their skills, budget and lifestyle. That’s why the Franchising and Business Opportunities Expo, which opens in Sydney 28-30 March, is so popular year after year – it showcases a wide range of businesses under one roof, as well as offering expert advice and information. “It’s great being able to research business opportunities on the internet, however nothing can replace a real person explaining the ins and outs of their venture,” explains Exhibition Manager Fiona Stacey. “The franchising industry is very strong and growing every year,” she says. “It’s a very successful way of doing business and it’s attractive because Australians like to be independent, but they also like the support of a company and the backing of a great brand. And when you have so many major franchise brands in one place, it’s easier to see which is the right fit for you.” Visitors to the show will not only benefit from meeting franchisors on the stands, but also from listening to experts present informative sessions as part of the free seminar program, which also includes a series of Franchise Success Panels presented by the Franchise Council of Australia, featuring successful franchisees and franchisors. Brian Keen, a consultant with more than 30 years experience in the franchising sector, will present sessions titled ‘How to Franchise Simply’, aimed at people who have a concept or business they wish to franchise. “Many people perceive franchising to be expensive and complicated, but it doesn’t have to be,” he says. “It is an easy way to grow your business and raise capital, plus
Exhibition Manager Fiona Stacey
you are recruiting people who have a vested interest in the business.”
Studios, Hoyts Cinemas and a range of dining options.”
Suzanne Jarzabkowska, CEO of DC Strategies, will be presenting several sessions on the theme ‘Franchisors and Franchisees – Build the Relationship your Network is Founded on. How Financial, Legal, Recruitment & Brand Strategies Build a Successful Franchise’.
Stacey adds that The Sydney Franchising and Business Opportunities Expo will give all visitors the opportunity to compare and research a diverse range of franchise opportunities with investment levels from under $10,000 to more than $500,000.
Many visitors last year benefited enormously from the advice and information available at the free seminar series. For example Simi found Suzanne Jarzabkowska’s seminar so powerful, he knew he just had to meet her. “I had a great meeting with her, 20 minutes with Suzanne is worth a lot of money, but it was free!” Simi says. “She gave me some great insight, and now I am thinking of not just buying a franchise, but becoming a franchisor myself.” This year The Sydney Franchising & Business Opportunities Expo will be held at the Royal Hall of Industries at Moore Park in Sydney’s Eastern Suburbs. “This venue is only 10 minutes from the CBD, with easy access by car or public transport, and cheap or free parking,” says Fiona Stacey. “The surrounding facilities are also excellent, as it is part of the vibrant Entertainment Quarter that includes Fox
94 Business Franchise Australia and New Zealand
“Entry is free if you pre-register online, and there is an abundance of information available on every aspect of being your own boss,” she says. “It’s really time to stop dreaming and start doing.” The Sydney Franchising and Business Opportunities Expo is on Friday 28 March – Sunday 30 March 2014 at the Royal Hall of Industries at Moore Park. Entry is $15 at the door or free with pre-registration. Sydney’s show will be followed by the Brisbane Franchising and Business Opportunities Expo 19-20 July at Brisbane Convention & Exhibition Centre, and the Melbourne Franchising and Business Opportunities Expo, 22-24 August at Melbourne Exhibition Centre. For more information and free registration go to: Web: www.franchisingexpo.com.au
Business Franchise Australia and New Zealand 95
fi nanci a l A dv ice e xpert ADVICE
Business health check
how your bank can partner with you The following business health check is a short guide to help focus on key areas of cash, profitability and management, and to help you identify areas for focus within your business. Fit for today, fit for tomorrow is a good catch cry…
Ian Watt - Senior Business Development Manager, Franchising, NSW & ACT, Westpac
Not surprisingly there are some relatively simple ways business owners can consider to boost their business’s performance and their banker is often well placed to provide guidance and be a sounding board.
It’s important to understand the key drivers of performance to give your business the best chance of long-term success. In the current environment, every business will be questioning what they need to do in order to stay successful. But what are the key questions you should be asking?
Cash opportunities The way a business manages cash in the short term is an essential part of ensuring long-term success. Cash-related issues are one of the most common reasons for most businesses experiencing financial problems. No matter what type or size of business you have, it pays to make your cash work as hard as possible.
We have experience of working with many many businesses, each with different financial needs, and we have found that many of the problems affecting business performance fall into one, or a combination, of the following areas:
It’s important to operate tight cash management – stopping the unnecessary outflow of cash from the business and taking advantage of any available surplus. Where there are difficulties in matching the inflow and outflow of cash, identifying what can be retained in the business to give a convenient ‘breathing space’ should be considered. This will give time to assess the options available and, if required, to secure a long-term finance solution.
• Cash
The key principles of cash management are as follows:
• Profitability • Management The following is a series of ‘health check questions or prompters’ to help you consider each of these three key areas and undertake a self-assessment of your business’s current performance.
96 Business Franchise Australia and New Zealand
• Cash is ‘king’: Get closer to the cash, understand the cashflow, take greater control and improve your ability to forecast your cash accurately • Communication and predictability: Open dialogue is essential to maintain
“Fit for today, fit for tomorrow is a good catch cry.” Once you have analysed the profitability in detail, it may be necessary to refocus on core business activities in order to return to profitability. When analysing each activity, consideration should be given to: • Sales strategy • Margin improvements • Cost reductions • Management information and key performance indicators (KPI’s) Consider the following questions and prompters to identify any profitability issues for your business and discuss with your banker. the confidence of the bank and other stakeholders • Accountability: Implement actions that have been agreed and monitor them closely to ensure that you deliver what everyone is expecting Consider the following questions and prompters and discuss with your banker… Do you prepare a short-term cashflow? Do you have a track record of forecasting accurately? Have you tried to negotiate extended terms with creditors? (If you have a good trading record, they may agree – but ensure you keep to any revised terms). Are your debtor/creditor days or stock turn as good as your competitors or the industry norm? Do you have any restrictions on the number of people who can make purchases or make payments? (To enable tighter control of cash, it may be worth centralising controls for cash management, invoicing, purchasing, authorising payments etc). Are you collecting your debts as quickly and efficiently as possible? (Consider early settlement discounts and issuing invoices earlier. Switching to invoice discounting or factoring may make it possible to release more cash from your debtors). Do you focus sufficient effort on dealing
with disputed debts so they are settled and collected as quickly as possible? Have you asked any key customers to pay earlier – even if only for a certain period of time? Can you operate on lower inventory levels and have you considered liquidating stock to raise cash? Have you tried to free any ‘trapped’ cash (eg, in other non-productive assets)? Have you asked the shareholders or other investors to support the business through an injection of cash? Have you reviewed your capital expenditure policy to remove any non-essential spending? (Are there any loss-making units/outlets that can be closed? (Note that this is often cash negative in the short term due to redundancy and other exit costs etc.) It’s important to understand the profitability of your business so you can identify what’s working well and what’s not, so you can make informed decisions.
Profitability Short-term cash problems will often be caused by underlying profitability issues in the medium to longer term. A particular part of the business may be under performing and so it’s important to identify problem areas and make informed decisions.
Do you understand the profitability of each part of your business? Are all of your business units/outlets making profits and performing well? Are you implementing a plan to turn around or close underperforming units/outlets? Do you understand and compare your trading performance to your competitors/peer group? Do you know your profitability by product, service or customer? Do you review the price you charge for your products or services on a regular basis? Do you have a good monitoring system? Do your systems tell you exactly which products or services are selling as soon as possible after the sale takes place? Do you continually and carefully monitor all your costs? Do you regularly review and seek opportunities to reduce costs? Are your management information and KPI’s sufficient to enable you to make fully informed/timely decisions about the future of the business? Is the business careful/prudent with its expenditure? It is generally accepted that management strength is key to running a successful business. There are various ways of assessing people or management.
Business Franchise Australia and New Zealand 97
fi nanci a l A dv ice
“It’s important to understand the key drivers of performance to give your business the best chance of long-term success.” Management It is vital to have a strong management team. Successful businesses normally expect top management to display the following attributes: • Motivation • Leadership
• Commitment • Energy
• Ability to measure results • Ability to set objectives • Delegation
• Adaptability
• Organisational skills
• Communication skills
• Ability to develop people, including themselves.
communicated to all staff? Is it regularly reviewed?
Is management committed to the company and delivering the plan?
A helpful list of some of the key questions and prompters relevant to most types of business are:
Does management have a business plan to achieve the vision and is it appropriate for the size/type of business? Is it sufficiently task focused? Is actual performance compared to the plan?
While this may seem a long list of questions and prompters there are many more that your banker would be willing and interested to discuss with you – a true banking partnership lays a solid foundation for mutually beneficial outcomes for all to be achieved.
Is the management structure and functional expertise appropriate for the size and complexity of your business? Is there balance within management’s approach in terms of level of participation and authority? Does management have the necessary communication skills both internally and externally? Are there effective/fully involved nonexecutives perhaps and/or a board of management? Is management receptive to outside advice from say advisors, consultants and bankers (as necessary)? Especially for a family business, is there sufficient depth of experience, external influence and challenge in key roles? Does management have knowledge of the forces affecting their industry/market and do they react to these effectively? Is there evidence of say new service initiatives? Does the senior team adequately contribute to and understand the strategy? Is it
Have they analysed the risks? What if there is a shortfall in sales? Have they considered applying sensitivity analysis to their budget? Is there a balance between optimism and realism? Have past plans/budgets been achieved? Has management got a mix of experience, including managing a company going through a major change or uncertain times? Does management have the necessary tenacity/ability to take tough decisions to turn the business around if needed? Are they open and co-operative with their bank when discussing and addressing the issues they face? Is management information and the way it is used adequate for the business? Is management information on time and relevant? Succession issues can be a problem. Has the business considered and planned for these issues?
98 Business Franchise Australia and New Zealand
Ian Watt is the Senior Business Development Manager - Franchising, NSW & ACT at Westpac. He specialises in the franchise sector, working closely and assisting many franchise brands grow and maintain their network. He holds a Bachelor of Business degree and is a qualified CPA. Westpac continues its long-term commitment to franchising in Australia through a national network of franchise specialist business bankers who are able to deal with the specific needs of the franchise sector. Contact Ian at: Email: ianwatt@westpac.com.au Web: www.westpac.com.au
h ot topics
Behind the
headlines KFC paints outlets green and gold to support Ashes tour KFC has repainted five Australian outlets in green and gold in support of its sponsorship of Australian cricket as The Ashes tour takes place. The company’s logo and iconic bucket has even changed colours in support of the Australian team’s efforts to reclaim The Ashes this summer. Outlets in Brisbane and Sydney, as well as Victoria and South Australia have been given the temporary colour makeover, with staff also wearing the Australian colours.
Starbucks opens first outlet on a train International coffee giant Starbucks has announced the opening of its first-ever outlet on a train, with the mobile store undertaking its 350km maiden journey in November from Geneva Airport to Saint Gallen in Switzerland near Lake Constance on the German border. The mobile outlet has been developed in conjunction with Swiss rail operator SBB and its subsidiary, Elvetino AG, which operates dining cars on the Swiss rail network. It features a custom-designed Starbucks store over both levels of the double-decker carriage, and can accommodate 50 guests, with the outside of the carriage emblazoned with the Starbucks logo. A Starbucks representative said the development of the train outlet had been two
years in the making. Intercity rail travel is very popular in Switzerland, with national rail operator SBB transporting more than 357 million passengers per year.
McDonald’s launches app for remote ordering and payment McDonald’s has launched a mobile phone app that will allow its customers to order and pay for their meals before arriving at a restaurant, and which will even allow them to customise their order. The app has been released for use in Western Australian outlets only with customers given a 50 per cent discount on orders for downloading the app. Outlets in the rest of Australia will commence using the app in 2014.
Senate inquiry to investigate Australia Post’s licensing of post offices A federal Senate inquiry into Australia Post has been announced to investigate the licensing and trading conditions applicable to post offices, with submissions closed in November. News of the senate inquiry followed a meeting of Australia Post licensees with federal senators Nick Xenophon and Ron Boswell, and the recent announcement that a group of more than 500 Australia Post franchisees are preparing to lodge a class action against the nation’s largest franchise
Jason Gehrke, Director, Franchise Advisory Centre.
chain over reimbursements as low as 29 cents for parcel delivery charges as parcel volumes soar, but traditional letter volumes decline dramatically. The inquiry will also examine the role of Australia Post in communities, and its community service obligations. The Senate’s Environment and Communications Legislation Committee completed its report in December, with findings to be published.
Franchisor wins $4.9 million judgement against lawyers for bad advice A law firm which gave tax planning advice to Aussie Home Loans founder John Symonds has been ordered by the New South Wales Supreme Court to pay $4.9 million in damages for advice that left Symonds with a tax debt of $11 million. Symonds claimed his former law firm Gadens Lawyers was negligent and acted in breach of contract over legal advice about a restructuring of Aussie Home Loans which left him with the tax debt.
Adventurewear retailer and franchisor Snowgum collapses into administration An adventurewear chain that started in 1926 and which has 17 company-owned stores and eight franchises in Australian has collapsed into administration. Snowgum started out as The Scout Shop
Business Franchise Australia and New Zealand 99
h ot topics
in 1926 and was owned by the Souting movement, before rebranding to Snowgum in 1992 and being sold to private operators in 2004. The company blamed declining sales and increasing rents for its losses.
Franchise conman sentenced to jail Infamous Australian conman Peter Foster, who masterminded the SensaSlim weight loss franchise scam, is on the run after failing to obey a Federal Court order to surrender himself to police after he was found guilty of contempt of court. The Gold Coast businessman was found to have breached a longstanding court order preventing him from being involved in any diet or weight loss business following his involvement in previous scams which resulted in his imprisonment in Australia, the United Kingdom, and the United States. The Federal Court action was taken by the ACCC who alleged Foster was the ringleader of the SensaSlim diet spray franchise scam. Foster and other company officers are alleged to have engaged in misleading
and deceptive conduct for falsely claiming that the SensaSlim diet spray product was authentic. The scam drew in more than 100 franchisees who invested $60,000 each for the rights to distribute the product. Foster is alleged to have posed as a scientist when selling franchises, and taken underworld figure Mick Gatto into the venture as an investor.
NSW to introduce unfair contract laws for motor vehicle franchises The New South Wales government has introduced a bill to regulate behaviour between motor vehicle manufacturers and their franchise dealerships which may have wide-reaching consequences for the franchise sector in Australia. The Motor Dealers and Repairers Bill (2013) proposes to define unfair contract terms and provide dispute resolution processes, and ultimately penalties for franchisor manufacturers who are found to have acted unfairly toward dealership franchisees. Under the Bill, a term is defined as unfair if
100 Business Franchise Australia and New Zealand
it would cause significant imbalance in the rights of the parties to the contract, is not reasonably necessary to protect a partyâ&#x20AC;&#x2122;s interests, and is detrimental to the interests of the other party. The Bill was tabled in the NSW Legislative Assembly in November, and is yet to be heard by the NSW Upper House.
$40 million lawsuit launched against Cash Converters Second-hand goods retailer and short-term lender Cash Converters is alleged to have charged loan customers interest rates of up to 633 per cent, well above the state laws capping short-term interest at 48 per cent, in a $40 million class action lawsuit. The class action by law firm Maurice Blackburn on behalf of 50,000 New South Wales customers alleges that borrowers were overcharged interest, however Cash Converters has stated that its loan products complied with all state laws. The company also announced that it had received $60 million from Westpac to increase its personal loan book.
PROFESSIONAL SERVICES LISTINGS
HARMANS LAWYERS
Liston Landers
485 Papanui Road, Christchurch P +64 3 352 2293 F +64 3 352 2274 Contact Mark Sherry or Alan Prescott E mark.sherry@harmans.co.nz www.harmans.co.nz
242-246 Glenferrie Road, Malvern VIC 3144 P 03 9509 0366 F 03 9509 3076 Contact Shaun Newton or Kieran Liston
If you’re considering buying a franchise you need the legal confidence that the agreement is fair and ethical. Getting the right legal advice early is essential, and that’s where the knowledgeable Harmans team of franchising experts can help.
www.listonlanders.com.au
Our extensive experience in all aspects of franchising, across a wide range of industries, will provide you with the advice you need to more forward with confidence. We have acted for franchisors and franchisees over many years and know the advantages of franchising and pitfalls to watch out for. Our Franchising Team can assist with a full range of franchise related services, including: - Legal rights and obligations under franchise documentation - Business structures and asset protection structures - Financing issues - Employment issues and health and safety - Lease arrangements and agreements - Terms of trade - Dispute resolution We are members of the Franchise Association of New Zealand
E shaun.newton@listonlanders.com.au E Kieran.liston@listonlanders.com.au We can help you to make strategic and successful franchise decisions. We are: Experienced: A Chartered Accounting and Financial Advisory Firm, acting in the best interests of clients (in Melbourne and regional Victoria) for over 30 years. Recognised as leaders in the field, with representation on the panels of ‘Big Four’ banks and Franchise Council of Australia membership. Providers of a complete franchise solution: • Valuations (APES 225 compliant). • Establishment, expansion and recruitment advice for franchisors. • Selection, evaluation, purchase/sales and tax advice for franchisees. • Provision of annual tax and compliance services. • Independent appraisals. • Analysis of goals, risks and benefits. Knowledgeable: with a detailed understanding of over 30 franchise systems, and an ongoing commitment to continuing professional development. Reliable: providing valuation assurances to your financier and a five-day valuation turnaround. Client-focused: Direct and after-hours access to partners, professionalism and empathy for individuals and businesses. Committed to helping our clients achieve a lifetime of financial independence. Contact us today.
Madgwicks Lawyers
Wisewould Mahony Lawyers
Level 33 140 William Street Melbourne VIC 3000 P 03 9242 4744 F 03 9242 4777 Contact Ed Browne E franchising@madgwicks.com.au www.madgwicks.com.au
419-425 Collins Street, Melbourne VIC 3000
Madgwicks’ Franchising team has experience across a variety offranchise industries representing both franchisors and franchisees. Our Franchise team is made up of lawyers from across our Business Services, Litigation and Property areas, enabling the group to address the broad nature of legal needs associated with establishing and operating a franchise system. A key part of our service delivery is partner accessibility and in-depth industry knowledge. Our services include: • Franchise agreements and disclosure documents • Advice on business structures appropriate for franchise systems
P 03 9629 8333 F 03 9629 4035 Contact Robert Toth E robert.toth@wisemah.com.au Lawyers in love….with Franchising www.wisewouldmahony.com.au 25 Years of Specialised Franchise Industry Knowledge Member Franchise Council of Australia (FCA), International Franchise Lawyers Association (IFLA), Franchise Association of New Zealand (FANZ) & US Commercial Service. FIXED COST FEES to Franchisors & Franchisees based on scope of works. No hourly rate surprises! Services Provided • Legal and consulting advice to Franchisors & Franchisees • Code compliance requirements
• Franchising Code of Conduct Compliance
• Dispute resolution – mediation – strategies & solutions
• Acquisition, disposal, joint venture and partnership advice
• Employment Law and Workplace Relations Specialists
• Trade Practices advice including ACCC notification/authorisations • Supplier and terms of trade agreements • Workplace Relations
• Sale/Purchase of Franchise Systems • Master Franchising
• Commercial and retail leasing, as well as general property advice
• International Franchising
• Litigation and dispute resolution
Call or email for a complimentary brochure for Franchisors & Franchisees
• Tax, duty and GST advice
• Advice on branding, intellectual property and trade marks.
• Business Law Specialists
Business Franchise Australia and New Zealand 101
FRANCHISE LISTINGS FRANCHISE APPLIANCE TAGGING SERVICES 80 Patterson Road, Bentleigh VIC 3204 Ph: 1300 287 669 Fax: 03 9557 4854 Email: steve@ats.com.au Website: www.appliancetaggingservices.com.au
BATTERY WORLD AUSTRALIA PO Box 46, Brisbane Market, QLD 4106 Ph: 07 3373 1764 Fax: 07 3373 1770 Email: admin@batteryworld.com.au Website: www.batteryworld.com.au/franchising
BRAZILIAN BEAUTY (AUST) PTY LTD 45 Crosby Road, Albion QLD 4010 Ph: 07 3262 8984 Fax: 07 3857 6212 Email: headoffice@brazilianbeauty.com.au Website: www.brazilianbeauty.com.au
NATURE OF BUSINESS
OUTLETS
ASSOC MEMBER
INITIAL FEE
MIN INVEST
ELECTRICAL TEST AND TAG
40
FCA
$35,000
$47,000 + GST + Vehicle
RETAIL OF BATTERIES AND PORTABLE POWER ACCESSORIES
79
FCA
$49,900 + GST
$250,000 + GST
BEAUTY AND CUSTOMER SERVICE EXCELLENCE
17
FCA
$45,000
$250,000 $350,000
SUNGLASS RETAILER
46
Franchise Council of Australia
POA
Varies from store to store
MOBILE COFFEE VANS
Over 200 worldwide
FCA, FANZ, IFA
INITIAL FEE INCLUDED IN PURCHASE PRICE
FROM $129,990
COFFEE FRANCHISE BUSINESS
27
-
$37k +GST @ 20/11/13
$150k - $250k +GST @ 20/11/13
PREMIUM CAFÉ FRANCHISE
12
Franchise Council of Australia
$45,000 + GST Incl. Training
Dependent on Site conditions $250k$450K
SKIN CARE, BEAUTY INDUSTRY
160+ Nationally
Franchise Council of Australia (FCA)
$22,000
$100,000 - $300,000
SOLAR & ENERGY PRODUCT DISTRIBUTION
-
-
-
$95,000 + GST
DIGITAL STRATEGIES AND SOLUTIONS
5
-
-
$50,000
AUTHENTIC ITALIAN FAMILY FOOD FRANCHISE
39
Franchise Council of Australia
$50,000 + GST
$650,000 $950,000
COURIER SERVICE
650+
FCA & FANZ
From $25K+GST
$25K+GST
COURIER SERVICE
250+
FCA & FANZ
$10K
$10K
RESIDENTIAL PROPERTY MANAGEMENT
1
-
$35,000 (GST inc)
$110,000
SELF SERVE YOGHURT & TOPPINGS
1
-
$49,990 + GST
Varies on location
HAIR & BEAUTY – RETAIL & SERVICE
140
FCA
$66,000 plus GST
$400,000 plus SAV for Greenfield sites
PROPERTY INSPECTION SERVICES
1 Franchisee/ 2 Company Owned
FCA
-
$25,000
FENCE INSTALLATION SERVICES
APPROX 150
MBA, FCA
Included in Purchase Price
From $50,000 + GST
HAIRDRESSING
175 across Australia & New Zealand
FCA
$38.5K
$160K-$240K
DOMESTIC & COMMERCIAL CONCRETE EDGING
300+
-
POA
POA
COFFEE SPECIALISTS
6
-
-
$180,000 min + GST
TUTORING AND MULTISENSORY READING INSTRUCTION
3
Franchise Council of Australia
$12,000
-
BRIGHT EYES FRANCHISING PTY LTD
The Dock – Retailer House, Level 1, Unit 3, 321 Kelvin Grove Road, Kelvin Grove QLD 4059 Ph: 1800 178 251 Fax: 07 3056 3322 Email: enquiries@brighteyes.com.au Website: www.brighteyes.com.au
CAFE2U Building 7, 81 Frenchs Forest Road, Frenchs Forest NSW 2086 Ph: 1300 223 328 Email: franchises@cafe2u.com.au Website: www.cafe2u.com
COFFEE GURU PO Box 794 Caringbah NSW 2229 Ph: 02 9531 7381 Fax: 02 9531 8573 Email: office@coffeeguru.com.au Website: www.coffeeguru.com.au
CREMA ESPRESSO 16B Harvest Court, South Port QLD 4215 Ph: 07 5532 7727 Fax: 07 5526 4896 Email: antony@cremaespresso.com.au Website: www.cremaespresso.com.au
ELLA BACHÉ 2 Lambs Road, Artarmon NSW 2064 Ph: 02 9432 5016 Fax: 02 9439 6267 Email: michelle@ellabache.com.au Website: www.franchise.ellabache.com.au
ENERGIS 17 McClure Road, Kensington Melbourne VIC Ph: 1300 782 217 Mobile: 0407 105613 Email: franchise@energis.com.au Website: www.energis.com.au/franchise
EXA WEB SOLUTIONS 1/1186 Toorak Road Camberwell VIC 3124 Ph: 03 9092 6699 Fax: 03 9923 6688 Email: biljana.stephens@exa.com.au Website: www.exa.com.au
FASTA PASTA PTY LTD Level 1, 137 The Parade, Norwood SA 5067 Ph: 08 8304 8600 Fax: 08 8332 8389 Email: reception@fastapasta.com.au Website: www.fastapasta.com.au
FASTWAY COURIERS AUS Level 9, 491 Kent Street, Sydney NSW 2000 Ph: 02 8263 3900 Fax: 02 9264 4966 Email: fso@fastway.com.au Website: www.fastway.com.au
FASTWAY COURIERS NZ Shed 5, Level 1, Lever Street, Ahuriri, Napier 4110 Ph: 0800 4 FASTWAY Website: www.fastway.co.nz
FROG RENT 4/68 Jessica Blvd Minyama QLD 4575 Ph: 1300 783 658 Fax: 07 5444 6916 Email: admin@frogrent.com.au Website: www.frogrent.com.au
FROOTA FROZEN YOGHURT K1 17-21 Market Street, Boxhill VIC Ph: 03 9972 8892 Email: info@froota.com.au Website: www.froota.com.au
HAIRHOUSE WAREHOUSE
Level 1, 605 Doncaster Road, Doncaster VIC 3108 Ph: 03 9234 2200 Fax: 03 9234 2266 Email: franchising@hairhousewarehouse.com.au Website: www.hairhousewarehouse.com.au
INSPECT MY HOME 4/9 Millenium Circuit, Helensvale, Gold Coast QLD 4212 Ph: 1300 337 447 Email: info@inspectmyhome.com.au Website: www.inspectmyhome.com.au
JIM’S FENCING PO Box 686 Mount Martha VIC 3934 Ph: 131 546 Email: franchise.sales@jimsfencing.net Website: www.jimsfencing.net
JUST CUTS™ Level 1, 4-6 Kingsway, Cronulla NSW 2230 Ph: 1800 334 498 Fax: AUS 02 9527 5144 Email: bdm@justcuts.com Website: www.justcuts.com
KWIK KERB PO Box 103, Mt Ommaney QLD 4074 Ph: 1800 773 231 Fax: 07 3717 6777 Email: kkinfo@kwikkerb.com.au Website: www.kwikkerb.com.au
LAVA CARTS PTY LTD PO Box 3, Mooloolaba QLD 4557 Ph: 0458 202 649 Email: manager@lavacarts.com.au Website: www.lavacarts.com.au
LISTEN TO READ 2 Flagstaff St Engadine NSW 2233 Ph: 1300 473 234 / 0410 618 472 Email: hello@ListenToRead.com.au Website: www.ListenToRead.com.au
102 Business Franchise Australia and New Zealand
FRANCHISE LISTINGS FRANCHISE MAS TAX ACCOUNTANTS 244 Boundary Road, Braeside VIC 3195 Ph: 1300 627 829 Fax: 03 9687 4676 Email: alanmaddick@mastax.com.au Website: www.mastax.com.au
NOODLE BOX
13A/663 Victoria Street Abbotsford VIC 3067 Ph: 03 8851 4200 Fax: 03 8851 4277 Mobile: 0416 256 338 Email: franchise@noodlebox.com.au/franchise Website: www.noodlebox.com.au/franchise
RED ROOSTER FOODS PTY LTD Level 1, Unit 17, 202 Ferntree Gully Road Notting Hill VIC 3168 Ph: 03 9582 8716 Fax: 03 9582 8744 Email: gary.glen@red-rooster.com.au Website: www.redrooster.com.au
RENT THE ROO PO Box 2150, Howrah LPO TAS 7018 Ph: 03 6247 3826 Fax: 03 6247 3853 Email: franchising@renttheroo.com Website: www.renttheroo.com.au
NATURE OF BUSINESS
OUTLETS
ASSOC MEMBER
INITIAL FEE
MIN INVEST
ACCOUNTING, TAX AND FINANCIAL SERVICES
30
IPA, CPA, CA
$39,000
$39,000
ASIAN INSPIRED QUALITY NOODLE BASED CUISINE
70 PLUS
FCA
$40,000
$250-$280K
FAST FOOD OVEN ROASTED CHICKEN
370+
FCA
$50K
$450K+
FURNITURE AND APPLIANCE RENTALS
60 territories
FCA
$150,000
$250,000
MATTRESS RETAILER
23
Bulky Goods Assoc/FCA
$40,000
$180,000 - $220,000
MOBILE TOOL AND EQUIPMENT STORE
160
FANZ, FCA
$40,000
$37,000 with Snapon finance
BEDDING RETAILER
71
Franchise Council of Australia
$50,000
$450,000+
SAFETY & DECORATING TO ALL INSIDE & OUTSIDE CONCRETE
80
-
$15,000 (Licence Only)
$75 P/W
MEXICAN RESTAURANT, BAR AND TAKEAWAY
35
Restaurant Catering Victoria
$50,000
$450.000
RETAIL TELECOMMUNICATIONS
60
FCA
Zero
From $70,000 working capital
DRUG TESTING & EDUCATIONAL SERVICES
20
-
POA
POA
MOBILE CONCRETE SAWING
9
FCA Member
$45,000
Initial fee + vehicle
PROVIDES UNIQUE SPOT FACTORING PROGRAMME
150+ worldwide
FCA, IFA, CFA, Irish FA
$24,500
$50,000+
REAL ESTATE PHOTOGRAPHY
N/A
FCA
$39,950 plus GST
$39,950 - $60,000
GLASS RESTORATION AND PROTECTION PROFESSIONALS
-
-
$35,000 + GST
$55,000 + GST
DOMESTIC AND COMMERCIAL CLEANING, GARDENING FRANCHISORS
1100
FCA
$17,500
$25,000
DI BELLA COFFEE MOBILE ESPRESSO VAN
28
FCA (pending)
$110,000 + GST (in total)
$110,000 + GST
SPECIALTY COFFEE PROVIDER AND FRANCHISOR
62
FCA
$50,000$75,000 depending on store
$400,000 $600,000
SLEEPY’S PTY LTD Unit 9/16 Metroplex Avenue, Murrarie QLD 4172 Ph: 07 3895 4100 Fax: 07 3395 6096 Email: guy.elliott@mattressinvestments.com.au Website: www.sleepys.com.au
SNAP-ON TOOLS (AUSTRALIA) PTY LTD 80 Holbeche Road Arndell Park NSW 2148 Ph: 1800 762 766 Fax: 02 9837 9199 Email: nicholas.hudson@snapon.com Website: www.snapontools.com.au
SNOOZE SLEEP WELL PTY LTD 21a Shierlaw Avenue, Canterbury VIC 3126 Ph: 0427 401169 Fax: 03 9888 6327 Email: alistairb@snooze.com.au Website: www.snooze.com.au
SPRAY PAVE AUSTRALIA GPO Box 501, Green Acres SA 5086 Ph: 1800 688 888 Fax: 08 8266 5360 Email: spraypave@senet.com.au Website: www.spraypave.com
TACO BILL MEXICAN RESTAURANTS 375 Clarendon St, South Melbourne VIC 3205 Ph: 03 9690 2077 Fax: 03 9696 0868 Email: amigo@tacobill.com.au Website: www.tacobill.com.au
TELECHOICE 74 Eastern Road, South Melbourne VIC 3205 Ph: 03 8699 2555 Fax: 03 8699 2550 Email: franchise@telechoice.com.au Website: www.telechoice.com.au
THE AUSTRALIAN DRUG DETECTION AGENCY PTY LTD PO Box 300 647 Albany, North Shore City 0752 NZ Ph: +64 9 477 0032 Email: glenn.dobson@tadda.com.au Website: www.tadda.com.au
THE CONCRETE CUTTER (FRANCHISING) PTY LTD 2 Cormorant Parade, Pakenham VIC 3810 Ph: 0499 399 355 Email: bruce@theconcretecutter.com.au Website: www.theconcretecutter.com.au
THE INTERFACE FINANCIAL GROUP Suite 38, Level 3, 2 Brandon Park Drive, Wheelers Hill VIC 3150 Ph: 1300 940 908 Email: jonwilliams@interfacefinancial.com Website: www.interfacefinancial.com.au
TOP SNAP PROPERTY PHOTOGRAPHY Suite 3, Gunshot Alley, Suakin Drive, Mosman NSW 2088 Ph: 1300 TOP SNAP (867 762) Email: sales@topsnap.com Website: www.topsnap.com
UNSCRATCH THE SURFACE Level 10, 50 Market Street, Melbourne VIC 3000 Ph: 1300 500 408 Fax: 03 8677 6962 Website: www.unscratchthesurface.com.au
V.I.P. HOME SERVICES AUSTRALIA Offices in each State Ph: 13 26 13 Fax: 08 8220 4588 Email: info@viphomeservices.com Website: www.vipfranchisesales.com.au
XPRESSO MOBILE CAFÉ 35 Railway Terrace, Milton QLD 4064 Ph: 1300 655 559 Fax: 1300 655 569 Email: jonathan@xpresso.com.au Website: www.xpresso.com.au
ZARRAFFA’S COFFEE 1/54 Siganto Drive, Helensvale QLD Ph: 07 5500 0800 Fax: 07 5500 0900 Email: franchise@zarraffas.com Website: www.zarraffas.com
A-Z Listings are a great way to promote your business For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au
Business Franchise Australia and New Zealand 103
A-Z FRANCHISE DIRECTORY APPLIANCE TAGGING SERVICES Looking for a franchise with on-going repeat business, large territories and access to an existing client base to get you started? With over 10 years experience, ATS are Australiawide specialists in Electrical Testing and Tagging in accordance with AS/NZS 3760:2010. Providing expert technical, admin, business and sales support, access to our National client base and comprehensive on and off-site training, ATS are committed to helping its franchisees grow profitable and successful businesses.
BATTERY WORLD AUSTRALIA Count the number of households in Australia? (Currently 9,117,033 private households in Australia - 2011 Census Data). Now count how many batteries each household will need over the next year? That’s the potential of a Battery World Franchise. Offering a world of batteries for everyone, the Battery World network is national and sells a range of portable power products and accessories throughout Australia. Battery World Australia Pty Ltd, as franchisor, provides
Brazilian beauty Welcome to the Brazilian Beauty franchise model where beauty and brains meet. Proven to have successful franchisees from an array of backgrounds embracing the beauty industry and the Brazilian Beauty brand to create profitable lifestyle businesses that engage, challenge and motivate. Proven operational systems, award winning marketing and advertising; team and individual guidance; training and personal development;
BrightEyes Sunglasses Established in 1985, BrightEyes Sunglasses is one of Australia’s largest sunglass retail networks, with over 46 locations nationwide.
S UNG L AS S E S
Our genuine passion towards enhancing Australia’s active lifestyle makes us the experts on fashionably functional eyewear. At BrightEyes we’re not simply selling sunglasses; we’re selling an enhanced way of life. The BrightEyes Sunglasses product range is extensive and showcases the latest styles from
AUSTRALIA AND NEW ZEALAND
No prior electrical experience is required, just a passion for safety and a commitment to growing your business. With low entry fees, minimal franchisee administration, and average returns between $1,000 and $3,000 per week an ATS franchise may be just the opportunity for you. ATS were named the FCA National Franchisee of the Year 2013 (less than 2 staff). For further information please contact Steve Wren, National Sales Manager on 1300 287 669 or visit www.appliancetaggingservices.com.au
the marketing and operations support to assist franchisees and strong brand recognition. Battery World is committed to helping franchisees build a successful business supported by experienced support office professionals. 80 stores Australia-wide and growing! After over ten years of operation, Battery World continues to be one of Australia’s most powerful retail battery franchises. For more information about Battery World contact 07 3373 1764 or visit www.batteryworld.com.au/ franchising
weekly in salon and monthly group meetings are all part of the package. “At Brazilian Beauty we work together to share our knowledge, ideas, passion and goals to gain a competitive advantage over all other beauty competitors.” Francesca Webster, founder. Visit us at www.brazilianbeauty.com.au and www.salonfranchise.com.au. Call 07 3262 8984 today and take the first steps towards making your business dream happen.
leading international brands such as Ray-Ban, Oakley, Arnette, Revo, Maui Jim, Bolle, Prada and Vogue (to name a few). We are also proud to market our unique house brands including Mangrove Jack’s, Stiletto, Nicole’s, Attitude and Urban. If it’s a fantastic franchise opportunity you are looking for, backed up by proven operational, product and marketing support you can visit us at www. brighteyes.com.au/opportunities to find out more. Alternatively, just contact the BrightEyes franchising team on 1800 178 251 or email enquiries@ brighteyes.com.au. We would love to hear from you!
business franchise australia and new zealand
For more information call 03 9787 8077
A-Z Listings are a great way to promote your
www.businessfranchiseaustralia.com.au or
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www.businessfranchisenz.co.nz
104 Business Franchise Australia and New Zealand
(or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to
CAFE2U Cafe2U is Australia’s first and most successful mobile café system. With over 200 franchises worldwide the business is rapidly growing due to a simple and proven business model. Cafe2U franchisees now have access to the unique “Acceleration Package” which fast-tracks success. This includes an experienced Franchise Development Manager to launch the business alongside the new franchisee in their own exclusive territory. Cafe2U builds a customer run that delivers a minimum of $500.00 a day before the Franchisee operates solo.
Coffee Guru Coffee Guru is Australia’s own locally owned and managed coffee chain with over 25 stores across Canberra and New South Wales. With our quality coffee and dedication to customer service, we are proud to be Australia’s Own Gourmet Coffee Company. Our professionally trained baristas will make you the perfect cup of coffee every time using our Coffee
Crema Espresso The Crema Espresso coffee franchise provides premium coffee and light meals with a focus on personalised service. Established on the Gold Coast, Crema brings together community life with a bright sophisticated shop design. Our extensive training and systems are in place to ensure the best support for Franchisees. Crema Espresso provides a business with supervision and consulting readily available. This includes everything from full operation manuals, point
Ella Baché Our Success is your Success! Join the Ella Baché network of loyal and profitable salons and enjoy the success and support of a premium established brand. Our franchise model is unique, with no royalties and no marketing fees. Ella Baché was established in 1954 and is the largest family owned skincare company in Australia with over 150 salons nationally. Our company’s mission is that “Ella Baché will inspire you to be the best that you can be.”
ENERGIS Help residential and business customers save with smart energy solutions & products for Solar, Hot Water, Heating, Cooling & Lighting. Own your own extensive distribution franchise with low initial investment and high income opportunities from large territories. Low cost
The business is HACCP certified and has a ‘no compromise’ attitude when it comes to quality. This includes the Mercedes vehicle, commercial equipment and fitout, branding and marketing strategies and dedicated events co-ordinator. If you are ready to take control and enjoy working with people, a Cafe2U franchise provides you the perfect system to create your own destiny. Contact John Stanton - Sales and Franchising Manager on 1300 Cafe2U (1300 223 328) or email: jstanton@cafe2u.com www.cafe2u.com
Guru exclusive coffee blend that is roasted to perfection. Featuring a strong support network and supply chain, a Coffee Guru franchise is the perfect investment. with new franchise business opportunities available, new stores will continue to open throughout 2014. If you are passionate about coffee and want to become your own ‘Coffee Guru’ contact Dean Crowe at dean.crowe@bigpond.com or phone 02 9531 7381.
of sale terminal, uniform package, store design & fit out together with ongoing research and development supported through marketing and advertising. “As coffee lovers we were tired of the same old coffee in dark gloomy cafes. Premium coffee and light meals, like we have in our stores, should be enjoyed in a bright sophisticated café with an atmosphere that creates a laid back, enjoyable meeting place for customers”. Contact: antony@cremaespresso.com.au www.cremaespresso.com.au
We pride ourselves on being the “Skincare Experts” and attribute our success to our people, knowledge and understanding of tailored skincare Solutions. We are committed to providing support through training, business planning, marketing, sales initiatives, salon designs and investing in our brand. Please contact our Franchise Department for more information. E: franchise@ellabache.com.au P: 02 9432 5000 www.franchise.ellabache.com.au
Mobile & Retail store formats available. Training, Marketing and Installation support provided. Secure your future in this high growth industry with an Energis franchise that gives you personal and professional flexibility in developing your business and your work environment. Franchise enquiries to www.energis.com.au/ franchise or Robert Graham 0407 105613
Business Franchise Australia and New Zealand 105
A-Z FRANCHISE DIRECTORY EXA WEB SOLUTIONS Get the competitive advantage. The success of our customers is what fuels our obsession with innovation. Our unique digital strategies give clients an advantage that no other company can offer, and when we develop something that works, we immediately ask ourselves how we can take that competitive edge to a whole new level.
FASTA PASTA With our authentic Italian background and 30 year success story, Fasta Pasta is now Australia’s largest, independently owned group of ‘fresh pasta’ Italian restaurants. An innovative ever-changing menu, with healthy options and a commitment to outstanding service, have all contributed to Fasta Pasta being voted Roy Morgan’s ‘Quick Service Restaurant of the Year’ in 2012. Loved for our affordable, fresh, family meals in relaxed fully licensed surroundings, this is a great
FASTWAY COURIERS AUSTRALIA
To meet the growing demand in digital and online solutions, Exa decided the best way to service the needs of Australian businesses is to develop a customer service/sales based franchise model. For more information or to make an enquiry about this unique franchising opportunity, contact Biljana Stephens at biljana.stephens@exa.com.au or call us on (03) 9002 6699.
opportunity to be part of our winning national organisation. Extensive initial training and ongoing support is provided. New franchisees undergo 12 weeks training in one of our company restaurants covering areas such as, front of house, kitchen (all areas), necessary bookwork, PPS, and Management skills. For more information on joining a successful franchise call 08 8304 8600, email reception@fastapasta.com.au, or visit our website, www.fastapasta.com.au
• Low start up costs
• Ongoing business support and training • Exclusive territories • A 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. Call 1300 FASTWAY or visit us at www.fastway.com.au
• No weekend work
*Conditions apply
FASTWAY COURIERS New Zealand
• Ongoing business support and training • Exclusive territories • A 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. Call 0800 4FASTWAY, or visit us at www.fastway.co.nz
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*
Run your own rewarding business and take control of your future as a Fastway Couriers Franchisee. As a market leader in nationwide courier services, our multi-award winning franchisees enjoy: • Guaranteed income packages* • Low start up costs • No weekend work
FROG RENT Frog Rent take managing residential property seriously. Serious enough, that it’s all that we do. Frog Rent is unique in that we are a Property Management franchise. We do not sell property, but specialise in managing property for owners of residential real estate. Frog Rent was founded by two successful builders with franchise operations in Australia and overseas, two property investors and a real estate agent. All five have long and successful business careers, with
106 Business Franchise Australia and New Zealand
*Conditions apply
four of the five having established and run successful national and international franchise systems. Frog Rent recruit franchisees, based on their personal qualities and abilities. We have the software, processes, skills, manuals, materials and extensive and ongoing training in place, so we believe we can teach and oversee excellence, with the recruitment of the right people. For more information please email admin@frogrent.com.au or phone 1300 783 658 or visit www.frogrent.com.au
FROOTA We all want to be healthy but making healthy choices can sometime be difficult. With so many fast and pre-packaged foods to choose from, it can be hard to know which are good for you and which are not. Imagine owning a business where you sold a product that looked like ice cream, tasted creamy and delicious like ice cream but instead was made of healthy 98% fat free yoghurt.
HAIRHOUSE WAREHOUSE Hairhouse Warehouse is Australia’s leader in the hair and beauty industry, with over 140 stores across Australia. Our culture and business has developed from over 21 years of success and mastery. Hairhouse Warehouse has been built through the passion and creativity of all our people. • Extensive and ongoing training programs • A proven turnkey operation • A focus on world class service
Inspect My Home As a leader in the property inspection industry inspectmyhome is fast becoming a recognisable brand across Australia and is now franchising its business model and systems. We Offer - A generous exclusive territory area - Computerised booking system and database - Electronic reporting systems - Full onsite training to obtain Pest Inspectors License - Telephone Support/IT Support/Marketing Assistance - Personalised web pages linked to
Jim’s Fencing Jim’s Fencing franchise opportunities were launched in 1997, initially in Melbourne; to date Jim’s Fencing is Australia wide with approx 150 franchise owners of which includes contractors (who work for the franchise owners) building fences every day of the week. Due to the over supply of work which we cannot service Australia wide, Jim’s Fencing needs more franchise owners to service our customers. Some of the benefits of joining our Jim’s Fencing team are; • 8 weeks paid for training @ $1000 inclusive p/w
This is exactly what Froota Frozen Yoghurt provides. • Our Goal is to be the best tasting frozen Yoghurt Supplier in Australia • High turnover, low cost product. • Comprehensive ongoing support • Low Overheads • Great Profit Margin For more information Contact info@froota.com.au or call on 1300 642 575
• Multiple revenue streams, including retail, salon, piercing and beauty services • Exclusive stockist of world leading brands with the most lucrative merchandise trading terms worldwide A belief in your ability to change your life and courage to do it is all you need. Work for yourself, not by yourself. Come and join our community of leaders and start your new future today. We’d love to hear from you. For more information call 03 9234 2200, email franchising@hairhousewarehouse.com.au or visit www.hairhousewarehouse.com.au/franchising
www.inspectmyhome.com.au - National 1300 number Inspectmyhome is looking for current property inspectors to join our team as we grow our network of professionals across Australia. Or If you are a Licensed Builder looking to join the industry this franchise opportunity is ideal for an enthusiastic and motivated person looking to grow a successful property inspection business. For further information call 1300 337 447, email info@inspectmyhome.com.au or visit www.inspectmyhome.com.au
• 3 month bookkeeping assistance package • Work availability GUARANTEE • Ongoing support and personal mentoring • Strong brand recognition • Over supply of work • And much, much more If you are looking for a self-employed business opportunity and enjoy working outdoors, then why not join the team here at JIM’S Fencing. For more information on this Franchise opportunity and Jim’s Fencing, you should go to our website: www.jimsfencing.net or call us on 131-546.
business franchise australia and new zealand
For more information call 03 9787 8077
A-Z Listings are a great way to promote your
www.businessfranchiseaustralia.com.au or
business.
www.businessfranchisenz.co.nz
(or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to AUSTRALIA AND NEW ZEALAND
Business Franchise Australia and New Zealand 107
A-Z FRANCHISE DIRECTORY JUST CUTS™ 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.
KWIK KERB Kwik Kerb® is the world leader in continuous concrete edging and can now be found in over 20 countries. We are looking for motivated people right around Australia who want to improve their lifestyle and take control of their financial future. As a Kwik Kerb® business owner you will be supported every step of the way with our knowledge and experience in marketing, a full training program and on-going product development.
LAVA CARTS Lava Carts offers specialty Espresso coffee and freshly made accompaniments. Our vision is to position the finest coffee possible into strategic locations delighting the customer and retailer in terms of satisfaction and success. A coffee cart strategically placed at the front entrance of a busy regional hospital proved a winning formula for the original Lava Cart and founder Simon O’Brien. Today the latest in design innovation has upgraded the cart to a modern and functional shopping centre kiosk whilst maintaining the grass roots cart like qualities of
Listen to Read A home tutoring system for reading with proven results. Using a unique curriculum plus multi-sensory home study tools, Listen to Read repairs the gaps in reading ability. The comprehensive curriculum simplifies the reading process by breaking it down into 14 areas of critical development. Small group tutoring combines with a home study system using an App and workbook for self-regulated multi-sensory study.
At Just Cut Cuts™ Franchise Owners have been free to grow to own multiple sites. Just Cuts™ do over 66,000 Style Cuts™ a week! Just Cuts™ operate on a no appointment, no request system, quality style cut at an affordable price. Contact us today to find out more. Join the largest Hairdressing Network in the Southern Hemisphere. Contact: Luke Manning 1800 334 498 Website: www.justcuts.com
Kwik Kerb® business owners work for themselves, building their own business from strength to strength and determine their own income level. With Kwik Kerb® YOU keep all the profits! We have Kwik Kerbers earning $500 to $1000+ in a day. If they can do it, so can you! Owning a Kwik Kerb® proven system is all about creating a lifestyle that suits you. You choose the hours of work that match your financial and lifestyle goals. For more information freecall 1800 773 231 or visit www.kwikkerb.com.au
cost consideration and position. Our winning formula means our turnkey franchise package is a fraction of the cost of our competitors with no compromises on quality. We currently have excellent high profile opportunities in super and major regional shopping centres, particularly in Qld, Victoria and WA. Having already experienced proven national growth Lava Carts has erupted onto the stage with a vibrant difference. Discover the substance behind our brand. Visit our website www.lavacarts.com.au ph 0458 202 649 or email manager@lavacarts.com.au
and Director Catherine McLennan has 26 years of teaching experience specialising in teaching reading. Individual training with Catherine ensures success for all franchisees. Early trials show students making gains in their reading age of up to two years, in just 12 weeks. A proven system combining a unique reading curriculum with Sound Therapy and multi-sensory programs for I-pad or computer. Email: hello@listentoread.com.au
The program has been developed by a literacy expert and a team of specialists in multi-sensory learning. Co-founder
Phone enquiries: 1300 473 234 / 0410 618 472
MAS TAX ACCOUNTANTS
employed to present, often off-site, to a room full of prospective clients to assist the franchisee get clients.
MAS Tax Accountants offer a range of Accounting, Tax and Financial Services. Most franchisees are CPA or CA qualified and specialise in one or two areas such as Tax, SMSF or Financial Advice. As a brand, MAS Tax Accountants only want to deliver high quality services to Australian families, including individuals and business owners. The benefit of joining the MAS Tax system is the branding, marketing and training available to the franchisees. We have a very hands-on approach, that includes the provision of salespeople and telemarketers permanently
108 Business Franchise Australia and New Zealand
Website: www.ListenToRead.com.au
Initially starting in Melbourne, we now have successful franchisees operating their businesses in QLD, NSW and South Australia. We are always looking for motivated professionals to join our growing network in all states and territories; both those with existing businesses needing access to our services and those starting their business with us. Please contact or CEO Alan Maddick on 1300 627 829 or alanmaddick@mastax.com.au for more information or to discuss the business in more detail.
NOODLE BOX An Australian success story. Noodle Box’s goal is to be the first choice noodlebased restaurant concept in every market in which they operate.
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 their guests by friendly, well-trained team members. With a relaxed atmosphere – it doesn’t get tastier than that!
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.
For more information see www.noodlebox.com.au/franchise
With a competitive entry level investment and new
Email: michael@noodlebox.com.au
business franchise australia and new zealand
For more information call 03 9787 8077
A-Z Listings are a great way to promote your
www.businessfranchiseaustralia.com.au or
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RED ROOSTER
and lease arrangements • Full structured training programs • Planning assistance for the opening and operating of your store • A full suite of merchandising and point-of-sale material Red Rooster is Australia’s most successful Australian owned Quick Service Restaurant chain. Its success has been built on great tasting, high quality, freshly prepared food, delivered using proven systems. Email: gary.glen@red-rooster.com.au Phone: 03 9582 8716
Red Rooster is an Australian owned icon brand. The Red Rooster franchise mission is “Be in business for yourself, but not by yourself”. Red Rooster supports each franchisee with proven commercial, promotional and operating systems, all designed to minimise risk and maximise potential for success. Specifically, you will get: • An Australian Icon brand • Proven systems and comprehensive operating manuals • Assistance in finding a location, negotiating contracts
RENT THE ROO RENTALS Rent The Roo specialise in the rental of any household appliance or furniture product available. There is simply NO LIMIT to the development of product ranges on offer from Rent The Roo, because franchisees can purchase from any retail outlet or accessible supplier – giving us the flexibility to satisfy every customer enquiry. If we can find it, you can rent it…!
Or call our Network Development Manager Michael Standley on 0416 256 338.
(or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to AUSTRALIA AND NEW ZEALAND
The Roo continue to grow with over 60 franchise territories covering every state & territory in Australia. Franchisees have access to ongoing training and support as well as an extensive range of marketing tools to help drive the business forward. Rent The Roo’s home-based, simple and productive business model combines low running costs with the highest possible returns.
With over 36 years of trade and development and our continued focus on customer satisfaction, Rent
For further information, visit the FRANCHISE tab at www.renttheroo.com.au or contact Alan Carroll on 0408 178 858 or alan@renttheroo.com
Sleepy’s
programs and support from the management.
Sleepy’s unique selling proposition is ‘The Mattress Experts’. We focus on
With Sleepy’s low entry costs, simple business model, and proven selling system you too will become a mattress expert!
• providing the right mattress for our customers • backing our sales with peace of mind: 60 day comfort exchange guarantee
Sleepy’s currently has 23 stores and has embarked on an aggressive national growth plan. Make an enquiry today.
• creating a superior customer experience
Please contact Guy Elliott on 0434 254 154.
Sleepy’s offers our franchisees high quality initial and ongoing training, national marketing programs, local area
Email: guy.elliott@sleepys.com.au Website: www.sleepys.com.au
Business Franchise Australia and New Zealand 109
A-Z FRANCHISE DIRECTORY SNAP-ON TOOLS Snap-on tools have a heritage spanning more than 90 years and is a brand that defines quality. The range of more than 19,000 products are the choice of professional technicians from NASA to Formula One. The primary customers for franchisees are the professional technicians who service and repair cars, trucks, motorcycles, boats, aircraft and earth moving equipment - the people who make their living using tools and demand the best. With more than 4,700 franchisees around the world, 160 of them in Australia and New Zealand, the franchise programme has been developed over decades. The Financial Review Smart Investor magazine has chosen
For more information call 1800 762 766 or
www.snapontools.com.au
SNOOZE™
• NAB & ANZ accreditation
As one of Australia’s longest-running, most successful and innovative franchised business, Snooze’s experience in the bedding industry is second to none.
• Sales and product training
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.
AUSTRALIA AND NEW ZEALAND
Snap-on in their last three surveys and the Best Value franchise system. Franchisees, who operate from amazing custom built mobile stores, have protected territories that have been surveyed to locate and profile the customers before they start. Extensive training and ongoing support is provided and no previous mechanical/trade experience is necessary. Franchisees need to be motivated business minded people with a desire to be successful and enjoy the sales environment while building professional relationships with their customers. No royalties, no advertising levies and Snap-on finance packages available.
• Business management support • A national marketing program • IT services
Snoozes offers a personable, flexible business solution with expertise and support every step of the way, including:
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.
• Vendor finance assistance
Email: alistairb@snooze.com.au
business franchise australia and new zealand
For more information call 03 9787 8077
A-Z Listings are a great way to promote your
www.businessfranchiseaustralia.com.au or
business.
www.businessfranchisenz.co.nz
SPRAY PAVE AUSTRALIA Pty Ltd
• Learn a range of new lifelong trades.
Earn up to $3,300 per week. That’s right, up to $170,000 per year! Our service decorates concrete. We Spray Pave, Polish, Epoxy and Stain. Jobs are inside and outside. Customers are domestic, commercial and Government. Our license structure allows you to choose when, where and how you want to work! This is a sincere “Be Your Own Boss” system. You genuinely keep all the profits!
Taco Bill Taco Bill is the longest established Mexican family restaurant in Australia and has built a loyal following since its inception in 1967. Taco Bill’s Mexican food is fun, fresh and affordable and presented in a casual, relaxed environment. The menu consists of a variety of fresh, authentic Mexican cuisine cooked daily on site, including Taco Bill’s special salsas, quesadillas, fajitas, rice and frijoles, enchiladas, burritos, nachos and tacos. Thirty brands of tequila are on offer at the various
110 Business Franchise Australia and New Zealand
(or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to
• Guaranteed work available anytime after training. • Head office training plus follow-up on your own job. • Customers contract and interest free finance. • Lifelong support from 6 Head Office trainers. • Low deposit + Support Payment Plan (SPP) Established in 1991, Security with Australia’s largest and oldest network. The name of the industry. Phone or email now, for a FREE information pack: FREE CALL 1800 688 888 Website: www.spraypave.com
restaurants as well as Australia’s largest Margarita – Pancho Villa (fishbowl) - giving the restaurant even more flavour and authenticity! With 35 Taco Bill restaurants in Australia and 28 franchisees, Taco Bill Directors Tom Kartel and Stan Teschke are keen to increase Taco Bill’s Mexican wave with expansion plans nationally in metro and regional areas. If you’re interested in becoming part of the Taco Bill family call 9690 2077 or email amigo@tacobill.com.au
TELECHOICE Established more than 18 years ago, TeleChoice is Australia’s largest independent MVNO retailer of mobile phones, telecommunications and energy products.
mobile phone rates and bundles with home telephony and internet. A TeleChoice Licensed Store operator has the delightful task of saving money for our customers.
Telecommunications and energy products are everyday necessities and non-discretionary expenses. TeleChoice now uses the most reputable networks in Australia packaged in ways that help Australian consumers make substantial savings and reduce the costs burdens. For example, TeleChoice uses parts of Telstra’s 3G Network to offer the most competitive
You too can make money by saving people their money. Our industry is very dynamic and is only suited for smart energetic investors. If you have the passion for business and the drive to succeed; we would like you to be a part of our team.
The Australian Drug Detection Agency
drug, alcohol workplace testing and education services.
The Australian Drug Detection Agency PTY Limited wants highly motivated and independent people to join the team, as either Master or Regional Franchisees. The NZ operation was established in April 2005 and consists of 15 regional franchisees throughout New Zealand, 18 offices and over 30 specialised onsite testing vehicles, employing over 65 staff and is recognised as the Market leader in the field of on-site
THE CONCRETE CUTTER The Concrete Cutter makes sound business sense. Established in Melbourne in 2001, The Concrete Cutter has nine long running franchises in operation. We now seek to expand in Melbourne and duplicate the Melbourne success interstate. If you are a smart ‘hands on’ person with good health and you are easily understood on the telephone we welcome your enquiry.
THE INTERFACE FINANCIAL GROUP - IFG 50/50 The Interface Financial Group franchisees provide shortterm working capital for small businesses by purchasing their invoices at a discount. In the current economic climate small businesses need working capital but banks are unwilling or unable to provide it. Many of these small businesses are turning to Interface for a solution. Interface has been in the ‘invoice discounting’ business since 1972, is the leading alternative funding source for
TOP SNAP MARKETING Interested in real estate? Passionate or keen to learn about photography? Then a Top Snap property photography franchise could be for you! We are a professional real estate photography franchise, with territories available across Australia and New Zealand. We are renowned for the outstanding quality of our photographs, which thanks to powerful custom-built technology, are professionally retouched and delivered direct to our clients by next day. We are currently looking for positive, enthusiastic, customerfocused individuals to build their own professional photography business, with the support of an established franchise system behind them.
Call the National Franchise Manager on 03-8699 2555, or visit www.telechoice.com.au/franchise
The ADDA is based on the NZ business model, and will provide excellent financial rewards for those who are prepared to work hard and fit the criteria. This is a huge opportunity for business-orientated individuals, to get in at the ground level and grow their own enterprise. Are you ready to join our experienced group and secure a lucrative future? Our guess is Yes, you are! Email: glenn.dobson@tadda.com.au or visit www.tadda.com.au
The purchase price of $45,000 + gst covers equipment, sign writing, uniforms, stationary, training and initial book-keeping set-up and early accounting support. You will need to provide a suitable white vehicle such as a ‘one tonner’, a van , or a small truck, it need not be new. Most established franchisees are regularly taking over $2,500 per week. Ring Bruce Miskin on 0499 399 355 for an information pack.
small business, and employs its franchise network in Australia, New Zealand, Canada, the Republic of Ireland, Singapore, the United Kingdom, the United States, and Mexico. The new IFG 50/50 franchise offers the opportunity to get started quickly and with a more modest capital base. Why? Because we syndicate all transactions with our franchisees 50/50. Franchisees do the ‘people work’ - we do the ‘paperwork’ – a great combination to achieve an aboveaverage return. For more information: jonwilliams@interfacefinancial.com www.interfacefinancial.com.au
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. Our franchise start-up costs are competitive, and no photography experience is needed, as comprehensive training and ongoing support will be provided, along with ongoing marketing and technical support. Contact Top Snap on: 1300 TOP SNAP (1300 867 762) or Rob Watkin on 0414 217 019 or email sales@topsnap.com www.topsnap.com
Business Franchise Australia and New Zealand 111
A-Z FRANCHISE DIRECTORY Unscratch the Surface No longer is it necessary to replace damaged glass. Unscratch The Surface franchises are the solution that all commercial, construction and residential industries have been without. Saving them $1000’s in replacement costs and critical time wastage. Never mind the environmental advantages by preventing yet more glass being broken up into landfill worldwide. Key benefits: • Low entry costs • Low running costs • Low on-going fees • Full training & unlimited support
• Extensive advertising • Leads supplied by head office • Professional sales website • Powerful CRM website • High-grade trade tools & supplies • Uniforms • Complete corporate branding We are looking for people with a positive attitude and are dedicated to providing great customer service. For more information on this Franchise opportunity, you should go to our website: www.restoreglass.com.au or call us on 1300 500 408
V.I.P. Home Services australia
In 2009 and 2010 V.I.P. Home Services was ranked number one Best Value Franchise under $50,000 by Financial Review Smart Investor.
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. is a professional Home Services franchise with opportunities available in Home Cleaning, Commercial Cleaning, Carpet Cleaning, Window Cleaning and Lawns and Garden Maintenance.
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.
XPRESSO MOBILE CAFE
bean display showcase where a franchisee can display, custom grind, bag, heat seal and retail.
Starting a new café is daunting especially with overheads and expensive shop leases etc. A fixed cost and great value alternative is an Xpresso Mobile Café franchise. Xpresso Mobile Cafés have exclusive licensing to use the Di Bella Coffee products and branding. Our Mercedes Benz vans are fitted with quality custom fit-outs and commercial high grade espresso coffee making equipment. An Xpresso Mobile Café is also fitted with a coffee
ZARRAFFA’S COFFEE Award winning Zarraffa’s Coffee is a specialty coffee company that roasts and delivers the freshest coffee to its 62 stores across south east Queensland, northern New South Wales and Western Australia. The business is founded on the mantra ‘to create an individually perfect cup of coffee – every time!’ and, just like the giraffe on the logo, aspires to be ‘head and shoulders above the rest.’
AUSTRALIA AND NEW ZEALAND
Franchisees will receive:
For further information call V.I.P. Home Services on 13 26 13 or visit www.vipfranchisesales.com.au
Franchise partners primary income is earned Monday to Friday in an exclusive territory and they may choose to earn secondary (considerable) income from various events and markets on weekends. Franchisees are supported by our fully integrated website and social media and Internet presence coupled with our national call centre. Contact Jonathan Payne at jonathan@xpresso.com.au to register your interest and be part of our success story.
coffee the business. Since the opening of the first store in 1996, the Zarraffa’s Coffee experience has become something of an icon to many Queenslanders and since late 2012 has served coffee drinkers in Western Australia. The business has maintained a steady pattern of growth, as is evident both in gross turnover figures and a consistent increase in profile. Applications are open now for various locations in South East QLD, NSW and WA.
Great service is the practice and fresh, quality
Visit www.zarraffas.com to register your interest.
business franchise australia and new zealand
For more information call 03 9787 8077
A-Z Listings are a great way to promote your
www.businessfranchiseaustralia.com.au or
business.
www.businessfranchisenz.co.nz
112 Business Franchise Australia and New Zealand
(or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to
JOIN THE
DREAM TEAM
Vendor finance now available* *Available to approved applicants.
We are looking for dynamic people who love dealing with others and are passionate about retailing. The Snooze brand has a strong history of over 30 years in retailing and has built a very solid franchise system. We provide franchise partners with a stable platform to start their business and offer support across the entire business including: Marketing and Promotional Support Product Development and Buying Power Proven operating system that includes comprehensive product and sales training Business Management support from our on the ground field team Assistance in site selection and property negotiations Business finance available to approved applicants
For more details visit snooze.com.au or call Alistair Browne, our Franchise Network Development Manager on 0427 401 169
It’s amazing what a little snooze can do. snooze.com.au
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YOUR KEY TO FUTURE SUCCESS
JOIN A COMMUNITY THAT WILL GET YOU THERE IN STYLE.
Hairhouse Warehouse is Australia’s leader in the hair and beauty industry, with over 140 stores across Australia. A belief in your ability to change your life and courage to do it is all you need. Our culture and business has developed from over 21 years of success and mastery. Hairhouse Warehouse has been built on passion and creativity. t &YUFOTJWF BOE POHPJOH USBJOJOH QSPHSBNT t " QSPWFO UVSOLFZ PQFSBUJPO t " GPDVT PO XPSME DMBTT TFSWJDF t .VMUJQMF SFWFOVF TUSFBNT JODMVEJOH SFUBJM TBMPO QJFSDJOH BOE CFBVUZ TFSWJDFT t &YDMVTJWF TUPDLJTUT PG XPSME MFBEJOH CSBOET XJUI UIF NPTU MVDSBUJWF NFSDIBOEJTF USBEJOH UFSNT XPSMEXJEF Come and join our community of leaders and start your new future today. We’d love to hear from you.
With opportunities currently available in: WA: Perth and metropolitan QLD: Brisbane metropolitan and regional NSW: Sydney metropolitan and region SA: Adelaide metropolitan VIC: Melbourne metropolitan Contact Peter Fiasco for a confidential discussion on 03 9234 2200
hairhousewarehouse.com.au