Business Franchise AUS & NZ Jul/Aug 2018 by CGB Publishing

T h e

m a g a z i n e

f o r

f r a n c h i s e e s VOL 12 ISSUE 05 jul/aug 2018

AUSTRALIA and NEW ZEALAND

the importance of

making a profit

why our team love

la porchetta

build a good foundation for your franchise FINANCIAL & legal ADVICE

$6.95 (AUD), $7.95 (nz) inc. gst.

LATEST NEWS

franchise directory

Be the

LEADER OF YOUR OWN SUCCESS Welcome to a world of opportunity, brought to you by 7-Eleven, the brand that’s world famous. A 7-Eleven franchise is a partnership in success. When you buy a 7-Eleven franchise, you buy two things. Firstly, a brand name that’s recognised around the world, and secondly a business system that works, one that provides more support than most other franchise networks.

BENEFITS OF BEING A 7-ELEVEN FRANCHISEE Our stores are open 24/7, so we’re with you 24 hours a day, supporting you in every part of your operation. From setup, to training, to marketing, and even to book-keeping, we’ll help you turn your new business into a solid investment. We set up shop for you and give you

full training

We take payroll admin off your hands

and help with the book-keeping

We deal with suppliers to get you the

best products

We manage the fuel

Financials

Contact Details

An initial investment of between $400,000 and $1,000,000 + is what is required to become a 7-Eleven Franchisee, so it’s certainly a big decision to make.

Franchise Development Managers

The 7-Eleven franchised business model is one with a difference, because we tie our financial success to the success of our Franchisees. 7-Eleven shares in the profits, so it’s in our interest to ensure that we continually work with you to meet the needs of your customers to grow sales, and to grow profits. Our gross profit split is determined progressively, and there are other shared income stream profits, such as commissions.

We have brands you won’t ﬁnd anywhere

Brett Reading Queensland

E-Mail: bzr@7eleven.com.au Mobile: 0407 877 674 Peter O’Hara Victoria / Western Australia

E-Mail: pwo@7eleven.com.au Mobile: 0408 175 534 Shayne Boogaard New South Wales

E-Mail: szh@7eleven.com.au Mobile: 0418 136 156

else

We provide advertising and promotional

support

START YOUR SUCCESS STORY TODAY www.7elevenfranchise.com.au

FRANCHISING

Grow your network with Cashflow It Franchise Accreditation Help your franchise partners get the finance they need by becoming a Cashflow It accredited franchise system. Not only does accreditation reduce the challenges of accessing finance, it is also a powerful tool to assist in the growth of your franchise network. While Cashflow It operates with the flexibility of a small business, we have the resources and backing of one of Australia’s largest non-bank finance companies - Thorn Group Ltd, an ASX 200 company with over 80 years’ experience in the finance industry.

Cashflow It has been a key partner for the growth of the Rolld system. Where traditional lenders have rigid requirements, the team at Cashflow It have understood the challenges of a growing franchise system and have been prepared to partner for growth. Ray Esquieres, Co-Founder & CFO, Rolld Australia

Benefits of Accreditation

What can be funded?

1. Guaranteed access to finance

Just about any serialised piece of equipment can be funded with Cashflow It as well as some customised assets.

2. Preferred rates of funding 3. Access our full range of finance products 4. Accredited franchise priority service 5. Other exclusive benefits

• New equipment

• Used equipment

• Fitouts and refurbishments

• Vehicles

• National equipment roll-outs

• Re-financing & Franchise re-sales

• Serialised and custom assets

• Greenfield sites

Get accredited You’ll be happy to know that Cashflow It Franchise Accreditation is nothing like bank accreditation. It’s a very simple, pain free process. Call us today on 1300 659 676 or visit cashflowit.com.au for further information.

1300 659 676 cashflowit.com.au 29/09/2016 9:08 AM

8 AM

b us i n ess f r an c h i s e mag az i n e aust r a l i a an d n e w z e a l an d

AUSTRALIA and NEW ZEAL AND

AUSTR ALIA and NEW ZEAL AND

BUSINESS FRANCHISE AUSTRALIA and new zealand VOLUME 12 ISSUE 5, jul/aug 2018 publisher: Colin Bradbury. colin@cgbpublishing.com EDITOR: Meaghan Galindo. editor@cgbpublishing.com.au SALES DIRECTOR: Vikki Bradbury. vikki@cgbpublishing.com SALES & marketing manager: Kathleen Lennox. kathleen@cgbpublishing.com.au publisher’s assistant: Jorgia Rice. support@cgbpublishing.com.au PRODUCTION: Christine Roberts. production@cgbpublishing.com.au ACCOUNTS: accounts@cgbpublishing.com.au GRAPHIC DESIGN: Jejak Graphics - Michelle Quinn jejak@bigpond.com COVER IMAGE: La Porchetta TO SUBSCRIBE: www.businessfranchiseaustralia.com.au or www.isubscribe.com.au CGB PUBLISHING PO BOX 968 MT ELIZA, VICTORIA 3930 TEL: (03) 9787 8077 FAX: (03) 9787 8499 Email: cgb@cgbpublishing.com.au www.businessfranchiseaustralia.com.au www.businessfranchisemagazine.co.nz

From the

Editor Welcome to the latest issue of Business Franchise Magazine.

Opportunities Expo’s (21-22 July and 25-26 August respectively), and we have a huge amount of great news and content to compliment this exciting time of year in business and franchising.

I would like to begin by introducing myself as the magazine’s new Editor. I am thrilled to have joined the team, and hope my first issue continues to promote the longstanding commitment of everyone at Business Franchise magazine to providing the best quality expert advice, latest news and showcasing new opportunities in franchising.

At Business Franchise magazine, we are dedicated to helping franchisees find the perfect business opportunity for them. I look forward to meeting with as many franchisees, franchisors and Business Franchise magazine readers as possible at the Brisbane and Melbourne Expo’s. Remember, our readers can get FREE tickets to the Expo’s when booking online, just enter BFM at the checkout.

On the cover we have one of Australia’s most well-known and loved franchises, La Porchetta. In our cover story, we look at the many reasons people choose La Porchetta when purchasing a franchise business - the driving motivation being the trust and familiarity consumers have with the brand. This issue’s Feature explores Business Services and the importance of effective support when it comes to running your business successfully. The feature cover story on page 48 takes a look into the growing success of Mail Boxes Etc. as a trusted service provider to businesses, as well as its continuous expansion as a global franchise. It is my pleasure to introduce our new, regular Local Media Advice columnist, Pete Burdon, founder of Franchise Media Training, who will be offering advice on maximising your local media coverage and taking advantage of free marketing in this issue and issues to come.

This issue is full of a great selection of expert advice, exciting new franchising opportunities and in-depth editorials on franchising industry leaders. On page 92, you will find some insightful advice from Suzanne Jarzabkowska, CEO and Partner at DCS Group, on how to find your perfect franchise fit. As always, the Franchise Council of Australia has provided another pertinent article - with Mary Aldred, CEO of the FCA, discussing franchising compliance and the substantial media scrutiny that the franchise sector has recently injured. You will find these contributions and many more interesting business profiles and helpful expert advice articles throughout the issue. I hope you enjoy reading my first issue of Business Franchise magazine as much as I enjoyed editing it. Meaghan Galindo Editor

This issue coincides with the Brisbane and Melbourne Franchising & Business

SUPPLIER FORUM

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

contents

july/august 2018

On the Cover 10

Cover story: La Porchetta Why Are Team Love La Porchetta

16 Build A Good Foundation For Your Franchise

66 The Importance Of Making A Profit

In Every Issue 6

What’s New! Announcements from the Industry

Franchising Compliance and Best Practice in Focus for The FCA

Feature editorial: Business Services Business Supporting Business

Hot Topics: Behind the Headlines

Mary Aldred, Franchise Council of Australia

Jason Gehrke, Franchise Advisory Centre

100 Professional Services Listings 102 Listings 104 A-Z Directory

Showcase 84 Jim’s Pool Care

Franchise Picks 70 BK’s Takeaway | Focal Point | Manafry

Franchisee in Action 22 Thermawood

Focus Feature

39 BoConcept 72

Clark Rubber

also in this issue: 7-Eleven................................................................... 1, 104 ANZ Mobile Lending..................................... 23, 104 Appliance Tagging Services. ............................ 104

Franchisor in Depth 32 Theobroma

Snapshot 28 Soccajoeys 38 Books & Gifts Direct 74

ProteinXpress

80 Magnetite 90 DeckSeal

Profiles 14

Hog’s Breath

26 Mad Mex 42 Laser Clinics Australia

Axsesstoday..................................................................75 Battery World............................................................. 104 Begin Bright....................................................... 88, 105 Bo Concept........................................................ 39, 105 Books and Gifts Direct................................ 38, 105 Buy Sell Lease........................................................... 105 Cashflow It........................................................................ 2 Clark Rubber...................................................... 71, 105 Crema Espresso......................................................106 DeckSeal. ............................................................ 90, 106 Dr Boom........................................................................106 Ecomist..........................................................................106 Fasta Pasta..................................................................106 Fastway Couriers...........................................IFC, 107 FC Business Solutions................................... 19, 62 Fifo Capital........................................................... 81, 107 FocalPoint. ................................................................... 107 Gecko Sports............................................................. 107 GroutPro. ...................................................................... 108 Hairhouse Warehouse............................ 108, OBC Harmoniq........................................................................ 60 Hog’s Australia..................................................14, 108 InXpress. ....................................................................... 108 IP Partnership............................................................100 Jejak Graphics. ........................................................... 46

78 Midas

LegalVision..................................................................100

88 Begin Bright

Just Cuts.......................................................................109

96 Franchising Expo

Expert Advice

Jim’s Pool Care................................................ 84, 108 La Porchetta...............................................................109 Laser Clinics Australia.................................. 42, 109 Listen To Your Body...............................................109 Little Kickers & Little Rugby Australia.......... 110 Mad Mex............................................................... 26, 110

16 Build a Good Foundation for your franchise Matthew Bambrick, | ATO

Magnetite Windows. ......................................80, 110

24 4 Steps to Work Out if Becoming a Franchisee is for you Peter Thomas | Stockdale & Leggo

Matt Fiddes Martial Arts...................................... 110

30 Need Local Media Advice? Pete Burdon | Franchise Media Training

Mail Boxes Etc (MBE)....................................48, 110 Marsh & Maher Richmond Bennison..........100 Midas Australia.................................................. 78, 111 NanoShield...................................................................111 National Franchise Insurance Brokers...........87 Optus................................................................................ 35

36 Is Franchising Really In Strife Brian Keen | Franchise Simply

ProteinXpress......................................................74, 111

76 The Six Service Mindsets to Achieve a Positive Service Culture Jaquie Scammel | Author

Soccajoeys.......................................................... 28, 111

82 Why We Need 100 Per Cent Less Meeting Dermott Crowley | Adapt Productivity 92 Finding Your Perfect Match – Trickier Than Tinder! Suzanne Jarzabkowska | DCS Group

Simplicity Loans And Advisory.......................... 54 Snap-on Tools....................................................91, 111 Spudbar. ....................................................................... 112 The Interface Financial Group.................. 64, 112 Theobroma, Chocolate, Lounges, Paviliions, Bars.................................................. 32, 112 Thermawood...................................................... 22, 112 Walker Wayland........................................................100 Towncars Networks Australia.................. 29, 112

what’snew! Fitness fusion hub core+ launches first three franchised studios in Melbourne! leader and CORE+ founder, Amy King is committed to providing a challenging and innovative alternative, with plans to grow the network to 30 studios over the next three years across Australia and New Zealand. “CORE+ isn’t a gym and it isn’t a yoga studio. We are expert fitness curators, combining the best elements of yoga, Pilates and functional training via a diverse range of classes that get real results,”

On a mission to create stronger and more resilient bodies and minds, unique training concept, CORE+ is proud to unveil three new studios in Hawthorn East, Port Melbourne and Preston. With a belief that well-being stems from the core, the innovative resultsbased fitness studio classes fuse together the best elements of yoga, Pilates and functional movement from around the globe.

Amy says, who is one of the industry’s most experienced practitioners with a wealth of knowledge gained internationally from multiple styles of yoga, Pilates and anatomy training. “Our goal is to create smarter, more balanced, results-based fitness classes that work on both the body and mind. We believe taking a little time to connect with your body and mind helps create the resilience we need to get the most out of life,” Amy adds.

From Hot Pilates and Kettlebell Yoga, to Guns Buns + Tums, Barre Fusion and our signature Athletic Reformer Pilates classes, this booming boutique group fitness studio prides itself on offering something different, with a commitment to innovation, inspiration, energy and authenticity at its core.

The epitome of modern group fitness, CORE+ is creating waves of influence across Melbourne, guiding people to become better versions of themselves. Aesthetically beautiful in its own right, the studio has been thoughtfully designed for those not afraid to sweat. Following the latest unveilings, CORE+ will have five studios in total, with existing spaces in Richmond and Malvern East.

Passionate about improving people’s lives by encouraging them to discover the best version of themselves, influential health and fitness

For more information about the studios, approach or classes, visit: www.core-plus.com.au

International Burger & Rib Joint, RocoMamas Opens In Melbourne One of the world’s fastest-growing burger brands selects Melbourne for its flagship Australian restaurant, opened its doors on Saturday 16 June on Chapel Street, Windsor. What makes RocoMamas unique is how it prepares its burgers – where patties are rolled into a ball and pushed flat onto the grill to maximise flavour and seal in juices. Customers tick off a list to ‘build’ their own burgers ensuring the craft and mastery of the brand is consistent with the creation of each and every meal. Expect to get your hands dirty with flame-grilled ribs and wings with homemade secret sauces made fresh every day and ultimate flavourpacked sides such as Loaded Fries, and the visually-stimulating Custard Shakes. Inspired by its Not Normal alternative essence, the flagship Australian restaurant will be designed by BlackMilk Architects (Ripponlea Food & Wine, Ms Collins and Sash Japanese). Burgers and tattoos – like people – are unique. That’s why to celebrate its flagship Australian opening, RocoMamas will launch it’s Not Normal #GetInkedMelbourne campaign to celebrate the diverse individuality of the brand, the city and its customers.

6 Business Franchise Australia and New Zealand

From 16 June to 1 September, 5 lucky RocoMamas customers who take a smashing pic of their *tattoo with their smashed burger and share to social media with the hashtag #GetInkedMelbourne are eligible to receive a $1,000 voucher from a tattoo artist of their choice. *Open to customers who are looking to get inked for the first time, too. Full T&Cs are available at rocomamas.com.au. www.rocomamas.com.au

Developer agreement for the state, following a drive thru opening in Belmont late last year.

New Brew on Border for Zarraffa’s Coffee!

“We’re on a roll with a slate of stores and potential locations on the cards across our Area Developer territories of New South Wales and Western Australia and in our heartland of Queensland.” The South Tweed store is located at 38-54 Minjungbal Drive and is a corporate store that will employ approximately 30 local staff. “Now with stores at South Tweed, Banora Point, Tugun and Palm Beach we are really consolidating our presence in what is fast becoming a vibrant coffee scene in this part of the world.” “Our history of making individualised coffee for every customer, combined with an enhanced food offering, and our growth from one store on the Gold Coast; it all adds up to a strong offering for happy customers in the Tweed and beyond.”

Zarraffa’s Coffee will be putting smiles on the faces of coffee fans at the southern end of the Gold Coast with the opening of a brand-new drive thru location in South Tweed. The company has long been on the search

for a more convenient location to service this growing, coffeeloving community and surrounds.

Zarraffa’s Coffee South Tweed is located - 3854 Minjungbal Dr, Tweed Heads South 2486

As part of expansion plans throughout New South Wales, the South Tweed store signifies the second location under the new Area

Opening hours: 5am – 10pm, seven days a week For more information about Zarraffa’s Coffee visit www.zarraffas.com

Melbourne - get ready to hang out at Hakiki Turkish Ice Cream Hakiki is unlike anything else. Their business offering is shaped with unique products – traditional baklava, Turkish delight, incredible ice cream and signature Turkish coffee that customers crave. Hakiki ice cream is not like your usual soft-serve or store-bought tub - it’s a completely unique experience. Flavours range from Hazelnut, Pistachio and the most popular - baklava to the unexpected infusion of melon and feta. But the unique flavour inspiration is what brings customers back every weekend! Hakiki is loved for their rich, creamy and delicious ice cream flavours, but they also have a traditional Hakiki serving - a plain ice cream with a sprinkling of powdered pistachio, so thick that it’s served with a knife and fork.

The ice cream store that has Sydneysiders queueing down Enmore road all week long is finally coming to Melbourne...and we can’t wait! Born and raised in the ice cream capital of Maraş, husband and wife team, Nev and Zeyneb Bagriyanik brought this exotic delight to Australia by opening their first Turkish ice cream store, Hakiki, in Newtown, Sydney. Since then, the Hakiki brand has gained a great reputation locally for its friendly yet efficient customer service and community spirit. The brand has grown from strength to strength in a short space of time. Customers view Hakiki as a flavour destination and its exclusive and unique positioning ensures enduring brand value.

Hakiki has partnered with DC Strategy to bring this delicacy to all Australians. With the first two franchised locations currently being confirmed in Melbourne, there are a limited number of opportunities to carry the Hakiki banner to other cities in Australia. Nev says, “We want candidates with a sociable personality who can influence and turn their immediate circle of friends and acquaintances into customers. Someone who embodies our brand vision and is proud to be part of the Hakiki family. Hakiki needs energetic, enthusiastic and young at heart people to work in the business as a committed owner-operator, as it looks to expand its national footprint.” If you are passionate about family, tradition and most importantly ice cream, contact DC Strategy today to discuss the potential of you opening your very own Hakiki store.

Business Franchise Australia and New Zealand 7

what’snew! Franchising Success Recognised At WA Excellence in Franchising Awards The Franchise Council of Australia (FCA) recognised franchising’s best in Western Australia at the FCA 2018 WA Excellence in Franchising Awards presentations in Perth.

Q&A with Huxtaburger CEO

The Awards showcased the diversity and opportunity that franchising provides, and recognised franchising success in a broad range of sectors, including mobile services, restaurants and coffee shops, courier and logistics services, and banking.

Perth born, I have had a very rewarding career in the lead up to my appointment as CEO of Hux Group. I have had experience across multi-site retail businesses, with exposure to currency exchange, supermarkets, cafe-bakery brands and food retail categories.

Winners at the event included Manish Gupta, franchisee of Hog’s Breath Cafe, Mandurah/Eaton, Hog’s Express, Mandurah, and Funky Mexican Cantina, Mandurah, who was named the WA Multi-Unit Franchisee of the Year; Kenneth Ting of Jamaica Blue, Waterford, who took home the award for WA Franchisee of the Year, two or more staff; and Aaron Gunthorpe of Pack & Send, Midland, who won the WA Single Unit Franchisee of the Year, less than two staff Award for 2018.

I am very humbled and appreciative of the support that my Board of Directors have shown me in my appointment as CEO; it reflects and marks the transformation of Huxta from a single site destination model to a multisite food franchise brand poised for national growth.

The Award for WA Franchise Woman of the Year was taken out by Emily Slevin of Aussie Pooch Mobile, while Bendigo Bank, North Perth, won the award for WA Franchisee Community Responsibility and Contribution.

What led to the expansion of Huxtaburger in your hometown of Perth?

WA Franchisee of the Year, two or more staff Award winner, Kenneth Ting, grew up in Malaysia helping out in a small family-owned bakery, before moving to Australia in 2005, where his passion for retail and hospitality continued to develop.

Matt, can you tell us a little more about your involvement in Huxtaburger?

While researching for our expansion we identified a huge opportunity to take on the Perth market. With our quality product and unique brand, we could see that we had something different to offer than what was currently available. We couldn’t wait to get started and introduce Perth to the Huxtalife! Are there further expansion plans for Western Australia? We are very excited by this market. There will only be limited opportunities in WA with our intentions to secure sites in Leederville, Mandurah, Victoria Park, Mount Lawley and Scarborough. We are currently speaking to potential franchise partners about these locations and expansion plans over the next few years. The Huxtaburger store count has grown tremendously in the past 12 months, what are your goals for the year ahead? We are currently speaking with landlords all around Australia! Our entry into the Sydney market will commence in July 2018. We have a big announcement coming up about our roll out in NSW, with plans to pipeline 12 stores over the next few years in that state alone. It’s a really exciting time! What’s the long-term plan for the Hux Group?

Aaron Gunthorpe brought 20 years’ experience as a franchisee at Harvey Norman with him when he purchased the Pack & Send Midland franchise in 2016. WA’s 2018 Franchise Woman of the Year, Emily Slevin of Aussie Pooch Mobile, started out as a franchisee but when the chance to become Western Australia’s Regional Master Franchisee for the brand presented itself, it was an opportunity she couldn’t pass up. Following their success, all winners have qualified as finalists for the MYOB FCA National Excellence in Franchising Awards. The Gala Awards Dinner will be held in Melbourne on Tuesday 16 October at the culmination of the 2018 National Franchise Convention. WINNERS WA Multi-Unit Franchisee of the Year Manish Gupta, Hog’s Breath Cafe Mandurah/Eaton, Hog’s Express Mandurah and Funky Mexican Cantina Mandurah WA Single Unit Franchisee of the Year, two or more staff Kenneth Ting, Jamaica Blue, Waterford

Our goal is to grow to 50 Huxtaburger locations throughout Australia within the next 5 years. We also aim to extend our network internationally into New Zealand and Asia - We’re ready to share our mouth-watering product with the world!

WA Single Unit Franchisee of the Year, less than two staff Aaron Gunthorpe, Pack & Send, Midland

Find out more about our franchising plans at -

WA Franchisee Community Responsibility and Contribution Bendigo Bank, North Perth

www.franchise.dcstrategy.com/huxtaburger

8 Business Franchise Australia and New Zealand

WA Franchise Woman of the Year Emily Slevin, Aussie Pooch Mobile

Pizza Pasta Please has hit the streets of Newtown!

everyone can enjoy the food they really love, exactly how they want it. The NEW store is particularly exciting. The restaurant interior has been cleverly designed to be both modern & inviting – it’s a visual feast! The kitchen is open, creating an inclusive experience. The products are cut by hand, in house, by their awesome team in an open environment. Their fresh & healthy sauces and pizza bases will be on show, displayed alongside their gourmet ingredients. P3’s business concept is built on four key values: It’s all about family – They pride themselves in being warm, open and inviting. There is ALWAYS a place at their table. From the heart – Their food is ALWAYS fresh, made to order and in abundance. Their meals are cooked with love. Be real – They are fun, fast, and worth the price. They will ALWAYS stay true to their values. They will ALWAYS be real.

opening event also taking place that

Pizza Pasta Please is different to the rest. They’re not your average fast food franchise. They’re an award-winning restaurant serving custom-made pizzas and pasta dishes, not to mention gelato and treats, worth the calories.

month. Serving authentic Italian-inspired

What can Newtown food enthusiasts expect?

Always fresh – Their food is ALWAYS in season, local and never frozen. Serving ingredients that are fresh and delicious.

dishes in under 2 minutes, they prepare

They give the customer choice. Everything at Pizza Pasta Please is made to order. So,

Why not pull up a chair at our table and join the P3 family.

P3 has taken their artisanal pizzas and scrumptious home-style pasta to the streets of Newtown. Doors opened to the public in early April, with a grand

fresh pizza and pasta in record speeds!

Jim Penman appoints CEO of Jim’s Group Jim Penman has appointed Tino Grossi as Chief Executive Officer (CEO) of Jim’s Group. Australia’s largest franchise group will now be led by both Grossi and Penman, as Jim Penman has taken on the role of Founder and Managing Director. Jim Penman remains the motivational force for the Group’s Franchisors and Franchisees, however Tino Grossi will now jointly make all key decisions regarding the company. Tino Grossi has earned CEO title during the past three years, as under Tino’s guardianship, the Jim’s Group has increased its total revenue performance by a significant 14 per cent and continues to grow with a supportive team. Jim and Tino are an unbeatable pair. Tino is commercially oriented, entrepreneurial and enjoys people management as he intuitively knows how to improve team performance. In recent years, Tino has created a new culture

and standard of performance by encouraging employees, Franchisors and Franchisees about the importance of a great team around you – rather than great individuals working independently. Meanwhile, Jim focuses on Franchisee welfare, compliance and customer satisfaction which drives the infrastructure and is the lifeblood of the business. Jim’s hands on experience in franchising allows Jim’s Group to transfer its infrastructure across verticals. The recent Penman/Grossi leadership announcement has been warmly welcomed by the 3800 Franchisees and 350 Franchisors across 52 Divisions in the Jim’s Group. In February 2015, Tino took on a fulltime role and was playing the role of Chief Operating Officer. In mid 2017, Tino officially

accepted his title and travelled to Canada and the United Kingdom where he focused on national and international growth. “It’s a great honour to work with Jim and to help the Group reach its full potential which is enormous. Each of our 52 Divisions is about grow their own sales team and many of these small but strategic changes can make big positive differences to the Group,” said Tino Grossi.

Business Franchise Australia and New Zealand 9

c ov er sto ry: L a Po rc h et t a

why our team

love la porchetta There are many reasons why new franchisees join the La Porchetta system, but chief among them is that they know and trust the brand. Since its humble beginnings more than 30 years ago as a take-away pizza shop in the Melbourne suburb of Carlton, La Porchetta has grown into a much-loved household name and a favourite local eatery in many parts of Australia and New Zealand. When Guatam Gulati bought his first La Porchetta restaurant in the outer-Melbourne suburb of Werribee in December 2016, he already had experience in the franchise sector as the owner of two other franchised food outlets. “La Porchetta is a well-known brand that continues to open new restaurants” he

said. “They were offering me advantages and an opportunity to grow that I wasn’t getting with international brands.” Mr. Gulati was especially attracted by La Porchetta’s fee structure, which is very different from the other businesses he’s owned. “One of the reasons I chose La Porchetta is because I like their fixed-fee system,” he said. “Many franchises charge a percentage of your takings, whereas with La Porchetta, I know exactly what I’m paying each month,” he said.

grow with La Porchetta. He is currently in talks to acquire a second restaurant, also in outer Melbourne. “My goal is to invest in a second restaurant as soon as possible and it looks like we’ll achieve that in less than two years with the brand,” he said. Franchisee Annette Gabriele already had a long family history with La Porchetta when she and her husband decided to buy their Ivanhoe restaurant.

A friend of Mr. Gulati’s owned a La Porchetta restaurant at the time he was considering purchasing, so he had the advantage of getting advice from an insider. “I knew that they had worked hard at developing their systems and their leadership team and that franchisees get a lot of support. I wanted to be part of a wellrun system and grow with them.”

“My husband, Michael was working at La Porchetta Support Office and he believed very strongly in the brand, because he saw from the inside how well it was being run,” she said. “He felt that we have a future with them. At the same time, one of our sons was working at La Porchetta in Mill Park. He was very impressed with the business model and keen for our family to buy a franchise of our own.”

And indeed, Mr. Gulati is now looking to

“We were also attracted by the family values

10 Business Franchise Australia and New Zealand

at La Porchetta. Being part of this brand is like being part of a big family. They are very supportive of their franchisees and they nurture us to grow.” Today, La Porchetta Ivanhoe is a family-run business, with Annette, her husband, two of their sons and a daughter-in-law all working there. “We believe strongly in the brand and we believe that it’s better for us to all work together as a family, rather than work for someone else. We looked at a number of venues and when La Porchetta Ivanhoe came up for sale, we thought it had a lot of potential, so we bought it. It’s only our third year in the business and we’ve already doubled our figures on special occasions like Mother’s Day.” CEO of La Porchetta, Sara Pantaleo says, “The level of success we’re seeing with new franchisees can only be achieved with a culture of support and collaboration. As the franchisor, we put a lot of resources into staff and systems to effectively support every franchisee and help them manage and grow their business with minimal risk.” Even though La Porchetta now has streamlined corporate structures in place, it has never strayed from the family values on which the business was built. “Our core values of family culture, passion for quality Italian food and investing in relationships with franchisees are what drive the business,” said Ms Pantaleo. “We believe they are the drivers of our success.” Mr. Gulati agrees, saying, “I feel like I’m part of a big family with La Porchetta. I don’t feel like we are doing business with each other, but more like we’re working together to fulfill our goals.”

“La Porchetta also has a culture of innovation to ensure the brand remains on track with changing customer needs and franchisees are regularly consulted regarding brand development.” La Porchetta also has a culture of innovation to ensure the brand remains on track with changing customer needs and franchisees are regularly consulted regarding brand development. Ms Gabriele is a member of La Porchetta’s Franchise Advisory Committee and as a trained chef, she assists with recipe development. “It’s important we keep up with food trends and I’m keen to have input when the new menus are being developed. It’s also my way of giving back to the brand” she said. To customers, La Porchetta is a trusted restaurant group, known for its consistent quality, value and service and the restaurants quickly become a part of the local community, wherever they are situated. “We get lots of positive feedback from our customers and we feel like we’re part of the local community,” said Ms Gabriele. New La Porchetta franchisees come from a wide variety of backgrounds, as previous industry experience is not a pre-requisite to joining the brand. La Porchetta has a highly effective recruitment, training and induction program that firstly ensures the fit is right and then provides an intensive training program which covers every aspect of the business and includes hands-on learning. New franchisees learn about food preparation and safety, customer service excellence, building rosters, business administration and much more. They then spend time in a restaurant learning everything they will need to know, from cooking, making pizzas and working the bar to cleaning and hygiene.

We’re looking for franchisees with a passion for the industry, great people skills and entrepreneurial drive,” says Ms Pantaleo. “Regardless of whether or not you’ve managed your own business, we can support you to learn everything you need to run your own restaurant and our team will continue to support you in your business on an ongoing basis.” For many franchisees, owning a La Porchetta franchise can make a real difference to their work life balance. “My family is very happy because they see that I’m not stressed as I was in the past,” said Mr. Gulati. “When you have a good system in place, with good policies and procedures, you can spend more quality time with your family.” “Our franchisees really believe in the brand,” said Ms Pantaleo. “They can leverage off many years of experience and success and enjoy the security of a known and wellloved brand, robust systems, our culture of innovation and a proactive Support Office that helps them grow their business.” Opportunities are now available for aspiring restaurant franchisees who want to be part of a proven, successful franchise system. To make an enquiry or obtain more information contact: 03 9460 6700 franchising@laporchetta.com.au www.laporchetta.com or www.laporchetta.com/franchising

Business Franchise Australia and New Zealand 11

f r an c h i s e c o u n c i l of aust r a l i a

Franchising compliance

and best practice in focus for the FCA The franchise sector plays a vital role in Australia’s economy, generating $146 billion in revenue, providing almost 80,000 small businesses with a stable operating framework, and providing employment for nearly half a million people across the nation. As CEO of The Franchise Council of Australia (FCA), I am privileged to represent the interests of everyone whose livelihood depends on a thriving franchise sector, including franchisors, franchisees and the many, many

thousands of people who are employed within head office teams and franchisees’ businesses.

the Franchising Code of Conduct (the Code) that governs the sector.

Since commencing in this role in April, I have been fortunate to meet some of the entrepreneurial individuals who epitomise the passion, commitment and drive that that make franchising such a vibrant and strong way of doing business and look forward to the opportunity to continue getting to know more of you in the coming months.

The all-important, mutually supportive and beneficial franchisee-franchisor collaborative relationship is what good franchising is about and what is delivered and experienced by most franchisors and franchisees across the nation.

Attending the FCA’s Regional Excellence in Franchising Awards presentations over the past months, I have already heard firsthand just a few of the countless franchisee success stories that characterise the sector. At their heart, these stories demonstrate the very real value that is provided to franchisees and franchisors alike when the franchise relationship is supportive, constructive and where interactions between the parties are conducted in the good faith that is required by

The substantial media scrutiny that the franchise sector has recently been the subject of simply does not accurately reflect the true experience of the majority of those who successfully operate within it. There is no doubt, however, that right now there are transformational challenges and opportunities presenting to the sector, with the current parliamentary inquiry into the operation and effectiveness of the Code chief among them. The FCA is actively engaging with the inquiry process. The FCA’s position is clear: the franchising inquiry should be focused on enforcing compliance with existing regulation, rather than adding new regulation to what is already one of the most comprehensive and effective franchising regulatory systems in the world. In its submission to the Parliamentary inquiry, the Franchise Council of Australia (FCA) said examples of poor franchising experiences would most certainly be reduced by greater compliance and enforcement, supported by a stronger compliance culture across the sector. No one is keener to understand the causes of reported episodes of poor franchising

“The all-important, mutually supportive and beneficial franchisee-franchisor collaborative relationship is what good franchising is about.”

12 Business Franchise Australia and New Zealand

experience than the FCA. A number of reported cases appear to suggest that the Code has been breached and where available dispute mechanisms have not been accessed In our experience the overwhelming majority of franchise businesses uphold the highest standards in their own businesses. While franchised businesses enjoy improved prospects of success and profitability compared to independent, standalone businesses, they still compete in a dynamic and challenging marketplace. Stronger compliance with the Code, active enforcement and highlighting best practice should be key areas of attention for the inquiry. The issue is not that the existing regulatory framework does not prescribe protective measures. Rather, it is that in a number of reported cases the Code has simply not being adhered to and, when breached, not always enforced. Ensuring regulators such as the ACCC are adequately resourced to collect data, provide guidance on best practice, investigate claims of wrongdoing and, where necessary, take enforcement action must be a key focus of this inquiry. Recommendations made to the inquiry by the FCA for improving regulatory compliance and enforcement outcomes within the sector, included: • Making additional funding available to the ACCC and other allied agencies to

“Attending the FCA’s Regional Excellence in Franchising Awards presentations over the past months, I have already heard firsthand just a few of the countless franchisee success stories that characterise the sector.” Mary Aldred | CEO | Franchise Council of Australia

support better enforcement of the Code and more efficiently respond to small business concerns about any alleged lack of compliance; • Encouraging the ACCC to use its powers to issue fines and infringement notices, conduct random audits and take Court actions more frequently, where there is systemic evidence of non-compliance; • Ensuring more franchisees use and follow the existing Code process by: - Allocating funding to educational initiatives that ensure prospective franchisees are aware of the protections available to them, the benefits of obtaining advice, their due diligence obligations and available guidance resources - Streamlining the Code’s disclosure documentation, providing more focused information about the risks and opportunities, rewards and obligations

of a prospective franchise business investment, in a format that is easier for franchisees and their advisors to use - Translating the Code’s Information Statement into multiple languages to cater for the fact that around 70 per cent of small business owners are migrants; and • Mandating the requirement for some prospective franchisees to obtain competent legal and business advice, before making the significant personal and commercial decision to invest in a franchise business opportunity Over the coming months, I will remain focused on constructively engaging with the parliamentary inquiry. This includes ensuring the many positive outcomes that franchising delivers are heard, and that the impact of any regulatory changes proposed are properly understood by those who propose them. www.franchise.org.au

Business Franchise Australia and New Zealand 13

pr o fi l e : H o g’s Au st r a l i a

join the hog’s team Celebrating nearly 30 years of successful operation, we now have rare opportunities to join the largest privately owned casual dining group in Australia with Hog’s Australia’s Steakhouse, Hog’s Express and Funky Mexican Cantina. Hog’s Australia’s Steakhouse Home to the famous 18-hour slow cooked prime rib and curly fries, Hog’s Australia’s Steakhouse is a much loved family restaurant. Hog’s will celebrate 30 years of successful operation next year and boasts 75 fully licenced restaurants across Australia and New Zealand. It maintains a successful franchise system that has a distinct culture and a unique philosophy on business with world class training, proven systems and ongoing support. Hog’s prides itself on a menu that mixes beloved classic meals with modern dishes and on-trend ingredients. Menu highlights for adventurous diners include Coca-Cola Braised Brisket, Pork Belly Burger, Brisket Burger, Beer Battered Onion Rings, Jamaican Jerk and Buffalo Wings, and Vegan Schnitzel Burgers, while the Classic Dish section features old favourites like Salt and Pepper Calamari, Finger Food Combo, Chicken Dijonnaise, El Grande Prime Rib, and Tex Mex Combo. The menu supports all appetites with vegan, gluten-free and low-fat options, all served with the restaurant groups famed Hog’spitality.

Hog’s Express Hog’s Australia launched it’s quick service model, Hog’s Express, in 2017. Hog’s Express is a smaller footprint proposition that complements the traditional full-service Hog’s Steakhouse restaurants and takes the form of both a static offering in shopping centres and service stations,

14 Business Franchise Australia and New Zealand

as well as mobile food trucks. Hog’s Express specialises in burgers and features an innovative range on the menu that includes Mac & Cheese, Pork Belly, Southern Chicken, Tex-Mex, Calamari & Whiting, Popcorn Chicken, Spicy Pulled Pork and Crispy Vegetarian. The menu also features some Hog’s favourites like Curly Fries, as well as ribs, wings, salads, and kids meal options. Hog’s Express takes advantage of the latest technology with a fully interactive customer ordering system via iPad, multimedia suites with the latest clips and sporting events on big screens, as well as charging devices storewide for customers who choose to dine in.

Funky Mexican Cantina Hog’s Australia began franchising its Mexican restaurant concept, Funky Mexican Cantina, in 2017 after four years refining the concept in Cleveland, Queensland. Funky’s serves a mixture of authentic Mexican recipes adapted to suit the Aussie palate, all with the freshest produce and at a reasonable price. Some of the menu highlights include must-haves like tacos, burritos and enchiladas, as well as chimichangas and chorizo burgers. Driving the menu is Mexican-born Group Head Chef, Ariel Fortanell, who uses traditional family recipes handed down through the generations. The menu caters to all guests with a range of vegetarian, gluten-free and lactose-free meal options. Funky’s also presents a vibrant and lively atmosphere that almost makes you feel like you’re in the heart of Mexico City. Funky’s provides a great night out with family and friends or your next function, or you can even enjoy it from your own home with delivery through Deliveroo. Visit the Hog’s Australia’s Steakhouse, Hog’s Express and Funky Mexican Cantina websites for more information on becoming a franchise partner! www.hogsbreath.com.au/ http://hogsxpress.com.au/ www.funkymexicancantina.com.au

GREAT People Build GREAT Brands. Hogâ&#x20AC;&#x2122;s Australia has exciting business opportunities for YOU!

Business Franchise Australia and New Zealand 15

e x pert a dv i c e

Build a good foundation for your franchise

We work closely with small businesses and associations as part of our everyday work, and we understand from them that running a business can be difficult. In conversations we have with small businesses, we have noticed certain topics that some of you are unsure about, which are covered below.

While every business has different circumstances, building a good foundation for your franchise can help minimise potential problems and help you along your journey.

Make good record keeping a habit

• all income (including cash, EFTPOS, credit or debit card, online sales and other payments you may receive) • expenses (such as operating expenses, business travel expenses, and payments you make to employees and contractors including any cash wages)

Record keeping is a crucial part of any business. In addition to meeting your tax and superannuation obligations, having good records will give you a more accurate picture of your business to help you understand how you are doing, so you can spot potential problems sooner rather than later.

• bank statements

Keep accurate records of all business transactions to support your claims and make it easier for you, or your registered tax or BAS agent. For example:

Remember, without proper records you may not be able to claim what you’re entitled to. Keep your business and personal finances separate to avoid any confusion, and store

16 Business Franchise Australia and New Zealand

• records of business purchases or use of business stock for personal purposes (to help you work out the business portion to claim as a deduction, and to account for the stock used).

and as a franchisee, you need to have an ABN that is separate to your franchisor.

“Building a good foundation for your franchise can help minimise potential problems and help you along your journey.” Matthew Bambrick | Australian Taxation Office

and viability of your small business – understand your cash flow and know how you can put money aside for regular financial commitments. Developing a cash flow projection is a good way to get an idea of what expenses you have coming up and what income you are expecting to receive. Regular monitoring is also important, so you can see your financial position at a given time. It’ll also help you plan for major expenses such as your tax payments, and identify fluctuations that may lead to potential issues. To help small business improve their knowledge and skills to effectively plan and manage their cash flow, we have developed an easy-to-understand seminar, Planning Your Future Commitments. Feedback has been very positive, and has highlighted how simple steps can make a difference.

Remember to keep your ABN details, such as your authorised contacts and the legal name of your entity, up to date. Other businesses may need to verify your information (for example, that you’re operating a business or whether you’re registered for GST). If you make any changes, update your details with the Australian Business Register (ABR) within 28 days. Since you’re trading under the name of the franchise, you also have to register your own business name with the Australian Securities & Investments Commission (ASIC), if you haven’t already done so. Many franchisees use the name of their franchise plus their location as their business name. If you created a ‘trading name’ before 28 May 2012 and are still using it, make sure you register it as a business name by 31 October 2018 to continue operating with it. From November, only registered business names will be displayed on the ABR. If your business turnover is over $75,000 (or you expect it to be), you need to register for GST and lodge business activity statements (BAS). This generally means you need to include GST in the price of your goods and services – you will also be able to claim

“Record keeping is a crucial part of any business. In addition to meeting your tax and superannuation obligations, having good records will give you a more accurate picture of your business to help you understand how you are doing.”

your records electronically if you can and have a backup – you generally need to keep them for at least five years. Being able to develop summaries and reports, streamline your accounting practices, and better track sales and expenditure, are just some of the perks of electronic record keeping. Good record keeping doesn’t have to be hard; find a system that works for you. Get it right from the beginning to avoid making mistakes, but if you realise you have made a mistake you can still fix it. Use our Record keeping evaluation tool to review your record keeping practices from time to time and see if you’re still on the right track.

Stay on top of your cash flow Cash flow is important for the success

Additionally, we are working with tax professionals to roll out coaching conversations using the tools in the Cash Flow Coaching Kit. If you would like assistance to better understand how to effectively manage your cash flow, speak with your registered tax professional or find out more on the ATO website. Good record keeping is essential in helping you understand your cash flow and plan your future commitments.

Keep your registrations up to date and know if you need to register for GST An Australian business number (ABN) is an 11-digit identifier that is unique to a business,

credits for GST included in the price of goods and services you buy for your business. For example, if your franchisor is registered for GST and they’ve included GST in their franchise service fees, you can probably claim a GST credit for that amount once you’re registered for GST.

Know when to lodge and what deductions and concessions you can claim All businesses need to lodge an income tax return every year, and it’s important to lodge by the due date. If you don’t have a tax agent yet, and are thinking of engaging one, contact them before 31 October and get on their client list, they will let you know when your tax return is due. If you’re lodging your own

Business Franchise Australia and New Zealand 17

e x pert a dv i c e

return, it’ll generally be due by 31 October. You will also need to lodge BAS if you’re registered for GST. When it comes to deductions, you can usually claim most costs incurred in running your business; just remember the three golden rules for claiming business expenses: 1) the money must have been spent for your business – not a private expense 2) if it is for a mix of business and private use, only claim the portion that’s related to your business 3) you must have records to prove it. There are also a range of tax concessions available for small businesses, covering deductions (for example, the $20,000 instant asset write-off), income tax, record keeping, GST and more. Visit ato.gov.au/ concessionsataglance to see what you may be eligible for.

A business is made of its people; not just the product or service that you might be selling Many businesses underestimate the potential

“Remember, without proper records you may not be able to claim what you’re entitled to. Keep your business and personal finances separate to avoid any confusion, and store your records electronically if you can and have a backup.” value their workers can bring to their business, particularly if they’re in direct contact with your customers – first impressions count and they represent the face of your business.

learning resources. You can also get the latest news about all things small business delivered straight to your inbox through our Small Business Newsroom.

Your workers can be one of your greatest assets, so look after them. Make sure you provide them with what they need to do their job well (such as proper training for using cash registers and dealing with certain situations) and do the right thing by them (such as paying wages correctly, contributing to their super funds, and having adequate insurance to cover them in case of accidents).

If you need help with your tax payments, use our Payment plan estimator to work out a plan that meets your circumstances and contact us to set up a payment plan. We also offer free, confidential and tailored support services to help keep businesses on track or get them back on track.

You will have different tax and legal obligations depending on whether your workers are employees or contractors.

Ask for help if you need it We want to make it as easy as possible for you to understand your obligations and get your tax and super right. We have a range of tools and services to help you, including our online services, the ATO app, small business benchmarks, calculators, and a range of

18 Business Franchise Australia and New Zealand

Find a list of our supporting services for small business at ato.gov.au/sbsupport For information on small business, visit ato.gov.au/business (you can also enter search terms on the ATO website). For information specific to franchising and tax, visit ato.gov.au/franchise Matthew Bambrick is the Assistant Commissioner for Small Business Risk and Strategy at the Australian Taxation Office (ATO).

FRANCHISE

SPECIALISTS OPE R A T ION A L T E A M SU PPOR T

FR A N CH I S E & HR AU D I TS

FRA N CH ISE SYSTEM SETUP

FRANCHISE TRAIN IN G

SP EC I A LIST REC RUI TM ENT

FRANC HISE E PROFILIN G

HR SU PPOR T & HE LPD E SK

GR AP H I C DESIGN

O N L I NE O P ERA TIONS MA N UALS

DIGI T A L MARKE T IN G S T RATE GY

N E T W OR K D E V E LOPM E N T ST R A T E GY

FR A N CH I S E R E C R U I TM E NT

(03) 9533 0028 hello@fcbs.com.au www.fcbs.com.au

Quality ISO 9001

Business Franchise Australia and New Zealand 19

Fran c h isee I n Acti o n : T hermawood

Thermawood -

A Sustainable Franchise in More Ways Than One Pietro Cotino first made contact with Thermawood regarding opening his own Thermawood franchise in Sydney, in April 2017. By July that same year, he had hit the ground running and had begun operating. Business Franchise Magazine Australia and New Zealand had a chat with Pietro about life as a Thermawood franchisee for this issue’s Franchisee in Action.

How did you find out about the franchise? Pietro Cotino

“Through website advertising businesses for sale,” Pietro explains, “I chose Thermawood because I had worked in the facade industry

20 Business Franchise Australia and New Zealand

previously, so I have good understanding and knowledge of the benefits of double glazing.”

Why did you choose that particular industry and system? “The Thermawood system is really unique and I made an immediate connection with the franchisor, so it was an easy decision, really.” Pietro goes on to explain that the set-up and franchise costs were not prohibitive, which was also a contributing factor in his final decision to become a Thermawood Franchise partner. Before joining Thermawood as a franchise partner, Pietro worked as a facade engineer for 17 years. As well as his work as an engineer, Pietro was a site supervisor and project manager. This long-standing industry knowledge and a drive to find continued success lead Pietro to begin to consider the benefits of becoming his own boss.

What was the turning point that made you realise you wanted to change your career path? “I had been wanting to work for myself for a long time,” explains Pietro, “but I never found the right business for me. That is until I came across Thermawood. I liked and trusted the company, the product and the fact that we work within the sustainability and renewables sector.” As a company, Thermawood are fully committed to sustainability in all their operations. This commitment and passion is passed on to their many franchisees in Australia and New Zealand. “Our purpose is to bridge the gap between manufacturers of sustainable building solutions and the customer. We strive to improve our world by supplying innovative, natural and effective timber double glazing solutions that are not only viable in the long term, but also assist with reducing energy consumption.” Thermawood’s timber double glazing solutions also maximise the level of “thermo-comfort” for countless Thermawood customers in New Zealand and Australia.

What was the process like once you signed the franchise agreement? “Very smooth. Graeme Clarke, the franchisor, came up to Sydney and assisted me with the purchase of my tools and equipment.” Pietro was very pleased with this initial level of support. “All the training was done on our first jobs, which meant I was earning money from day one. I am not a tradie but have

George Hotel Melbourne

“As a company, Thermawood are fully committed to sustainability in all their operations. This commitment and passion is passed on to their many franchisees in Australia and New Zealand.” always been quite handy. It took a couple of weeks to become competent on all the processes, but I was up and running on my own the week after I left my previous job.” This ability to really hit the ground running is facilitated by Thermawood in order to ensure all their franchisees find initial and continued success.

What type of training and ongoing support is still provided to you? AFTER

“Graeme came up to Sydney a couple of times to do training on the various types of window systems. Thermawood have a very comprehensive operations manual - with written details and photos - that explains very specifically the various processes to follow. The franchisor, Graeme is very contactable on the phone and always answers queries very quickly, especially when I have urgent site issues to deal with. We continually get training on any new products or processes as they arise.” Like any new business, it took hard work and dedication initially from Pietro.

BEFORE

Business Franchise Australia and New Zealand 21

Fran c h isee I n Acti o n : T hermawood

Thermawood’s Expansion in Australia

“You do get a lot of satisfaction from doing a job well and getting good reviews from satisfied customers. I love being my own boss, but still being part of the Thermawood family.” Since owning a Thermawood franchise, has your work/life balance improved? “At first, I was on my own doing all the work while also running the business. I now employ two full time installers and find I have more time to deal with running the business and taking time off to do various activities with the kids. I no longer have the stress of working on big building sites with aggressive builders, which has definitely improved my lifestyle.”

What would you say to someone else considering becoming a Thermawood franchise partner? “Be prepared to work hard,” Pietro says, “you do get a lot of satisfaction from doing a job well and getting good reviews from satisfied customers. I love being my own boss, but still being part of the Thermawood family, where I can always get good advice and assistance from the franchisor and other franchisees.” Communication, accountability and social responsibility between stakeholders is of paramount importance at Thermawood, which is evident through their continued efforts to provide as much information and advice as possible to both their customer and franchisees.

infectious. This was evident from the beginning, and is one of the main reasons I decided to join Thermawood,” says Pietro. “We all enjoy our work and are very passionate about what we do. That is why we will continue to grow with Thermawood and be a successful business.” Thermawood really cares about providing the highest quality product to their customers, with a focus on sustainability and environmental impact. This passion and care is evident in every aspect of the Thermawood business model, and is thoughtfully passed on to all Thermawood franchisees across Australia and New Zealand. Thermawood is always looking to expand into other states and territories in Australia and New Zealand. If you want to be like Pietro and find fulfillment, success and a great lifestyle with a supportive and knowledgeable franchise, contact Graeme Clarke today on: 04 555 55 330 info@thermawood.com.au www.thermawood.com.au/franchises/

Is there a particular aspect of the Thermawood franchise system that stands out to you? “The passion and good ethics shown by Graeme, the franchisor and the other franchisees - not only for the Thermawood system but for the business itself - is

22 Business Franchise Australia and New Zealand

After developing a nationwide network of Thermawood installers Thermawood NZ have expanded into the Australian market. With franchise opportunities now available in Victoria, New South Wales and South Australia, Thermawood Australia are looking for franchisees to build a successful future with a solid and well-established brand. Using a unique patented dry glazing drainage system for double glazing and installing draft/sound seals into existing timber windows and doors in your home, the system is designed to fit any wooden joinery and can be used in a number of configurations. Thermawood Retro-fit Double Glazing allows the home owner to keep their house warmer in winter, cooler in summer, reduces noise, drafts and allows the homeowner to maintain the original character aesthetic of their home while adding value to the property and saving money on energy costs. The Thermawood double glazing system is recognised as the industry leader in NZ with strong growth and extended lead times for installers nationwide. By using the established and proven systems, techniques, and products Thermawood have proven that committed and enthusiastic franchisees will create opportunities to establish successful franchise territories in Australia. With a number of Australian franchisees already enjoying success, now is the perfect time to join this proven franchise system.

OPEN THE DOOR TO

A WORLD OF OPPORTUNITY Looking for an exciting franchise opportunity? One that could provide the future you want? Our mission at ANZ is to shape a world where people and communities thrive, and ANZ mobile lending could be a key driver to achieving success. This is your chance to offer a range of award winning banking solutions specialising in home loans and personal loans.

WANT TO KNOW MORE ? Call us 1800 805 805

Email us ANZMobileLending@anz.com

Visit us mobilelending.anz.com

mobilelending.anz.com ANZ Mobile Lending representatives operate as ANZ Mortgage Solutions, independently operated franchises of Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 Business Franchise 357 522. All applications for credit are subject to ANZâ&#x20AC;&#x2122;s normal credit approval criteria. Australian Credit Licence Number 234527. ANZâ&#x20AC;&#x2122;s colour blue is aAustralia trademark ofand ANZ. New Zealand

e x pert a dv i c e

4 steps to work out if becoming a franchisee is for you Buying into a franchise is an undeniably big step. For those who are new to the world of entrepreneurialism it can be a great first taste of running your own business – but many would argue that it isn’t always the best option. So how do you determine whether franchising is going to be a good fit for you? Building a business from the ground up can be an incredibly hard slog, especially if you lack the skills and know-how needed to ensure your succuss. Conversely, most major franchises offer business models that have been tried, tested and tweaked to perfection. This means that most of the guesswork has already been done for you so that you can instead focus your energy on getting your business up and running. As CEO of Stockdale & Leggo, Australia’s first real estate franchise, I oversee 62 franchise offices across Australia – a number that is continually growing. Throughout my career, I’ve worked closely with a number of ambitious real estate professionals looking to take the next step and in this time I’ve learned a lot about what it takes to be a truly successful franchisee. In my view, a big part of the reason why Stockdale & Leggo has experienced such

“Before you begin your research on the many different franchise opportunities available, it’s important that you first do some self-reflection and consider your own personal motives for wanting to buy into a franchise business.” Peter Thomas | CEO | Stockdale & Leggo

strong levels of growth is because of our commitment to ensuring that each of our franchisees are a good fit for our group. The reality is that franchising simply isn’t for everyone – and when you engage in a poorly matched partnership, both parties risk losing a lot of time and money.

Before you begin your research on the many different franchise opportunities available, it’s important that you first do some self-reflection and consider your own personal motives for wanting to buy into a franchise business in the first place.

If you have been gearing up to embark on a new business venture, follow my four foolproof steps to help you work out whether becoming a franchisee is going to be a good fit for you.

Like all businesses, running a successful franchise business requires dedication and hard work. While it can be assumed that the bulk of the initial planning and preparation will be taken care of by the franchisor, don’t

24 Business Franchise Australia and New Zealand

Consider your motives

brand with a strong reputation, you will also be tasked with the duty to uphold that reputation.

Work out whether you’re willing to collaborate

Following on from my last point, a key aspect of buying into a franchise business that I have found to be often overlooked is the fact you may be required to collaborate with other business leaders on a regular basis. For this reason, it’s important that you are able to work as part of a team. Within my own business, I encourage communication and collaboration across all offices and my franchisees are heavily involved in a variety of decision making and planning events. In fact, many of our latest developments and innovative new offerings have been a result of these meetings and consultations. While our business leaders don’t all necessarily see eye to eye on every matter, a huge part of working in a successful franchise business is understanding that each and every one of us must put the good of the group before the good of one individual office. If you want to become a franchisee, you need to be able to recognise that when one office does well, we all do well – regardless of whether or not it appears to directly affect your bottom line. Word of mouth travels quickly, and a win for our network is something we will all benefit from.

Take a look at your finances

be fooled into thinking running a franchise will be easier than any other business. In the past, I’ve encountered inexperienced investors with the belief that franchise businesses are money making machines that require minimal effort, something that quite frankly couldn’t be further from the truth. While you may have a head start over some of your competitors, it’s important that you hold on to that momentum and give your business the attention it needs to thrive. Furthermore, if your reason for wanting to go into business for yourself is so that you can become your own boss, you might soon find that buying into a particular franchise doesn’t offer the same freedom as you had hoped.

While buying into a franchise business will usually require an initial investment as well as ongoing royalties, this figure can be considerably less than if you were starting from scratch or taking over an alreadyestablished independent business and is certainly worth considering if coming up with capital to launch a new start-up is proving to be a challenge. In addition to franchising being a more cost-effective solution in the early days, a well-structured franchise system will be able to give you a clear indication of any future expenditure that may be required to ensure there are no surprises down the track.

While many franchises offer their business leaders a great deal of flexibility and choice, most come with a fairly stringent set of requirements that must be followed to preserve the brand identity throughout the wider community.

This allows you to prepare for what’s to come and make sure you have the funds squared away to cover any upcoming costs without interruption to service. A good franchisor may also provide useful accounting systems to help you keep on track of your finances and manage your cash flow – something that many new businesses struggle with more than any other area.

Essentially, while you can enjoy the perks of becoming part of a well-established

What’s more is that banks tend to be far less stringent in regards to business loans

when you can prove that the loan is to be used towards a franchise buy-in. Generally speaking, this is because they have extra assurance that all measures have been taken to ensure the business is financially viable and the franchisor can usually provide evidence of other successful franchisees.

Decide what you want for your future

Finally, before making any commitments I encourage you to take some time to work out what you want from the future and start thinking about putting in place a solid plan as to how you’re going to get there. When going out on your own, the future can be uncertain and it is unlikely that you will have any real guidance on how to grow your business unless you seek additional assistance from an experienced consultant or coach. However, part of the beauty of the franchise model is that it offers a clearly defined route for business development as well as ongoing mentoring and support from the franchisor as well as your fellow franchisees. While there is an endless number of pros and cons to both options, franchising offers the added advantage of having a whole network of people rooting for your success – something I think you’d be hard-pressed to find elsewhere. Before jumping into the deep end, make sure to consider all of your options to work out what’s best for your own situation and what you ultimately want to achieve by becoming a business owner. Whether it’s through a franchise or as a stand-alone startup, it truly is a wonderful journey. Peter Thomas is the Chief Executive Officer of national real estate network Stockdale & Leggo and industry pioneer, credited with introducing the franchising model to the Australian real estate industry in 1981, becoming the group’s first franchisee before acquiring the business in 1986 and growing it to seventy franchises across Victoria, New South Wales, Queensland and the Northern Territory. Under his leadership, the group’s extraordinary success has been recognised within industry and business circles as winners of the Gold Stevie and People’s Choice Awards in the real estate category of the 2017 International Business Awards and as a finalist in both the 2017 REIV Innovation Award and 2017 REB Innovator of the Year Awards. For further information, interviews or speaking engagements, please contact Chiquita Searle at: 0423 686 380 media@stockdaleleggo.com.au www.stockdaleleggo.com.au

Business Franchise Australia and New Zealand 25

pr o file : M A D M E X

JOIN THE FAMILIA Since starting out in 2007, Mad Mex has long held the title of best Baja-style burritos in Australia. The casual dining Mexican restaurant brand has built a network of 70 restaurants in both Australia and New Zealand. The franchise chain features an authentic Baja Mexican menu based on a fusion of Southern Californian and Northern Mexican cuisine. With an emphasis on freshness, every Mad Mex restaurant prepares guacamole, salads and salsas, along with slow roasted and grilled meats daily. Servicing over 90,000 customers each week, the brand has successfully created a combination of restaurant formats consisting of food courts, shopping centre entertainment and leisure precincts, airports, train stations and high street locations. Mad Mex and its people are; “a little bit cheeky, a little quirky and a whole lot of fun.” While the edgy brand tends to attract younger demographics, Mad Mex and its range of healthy options appeal to consumers of all ages, especially those seeking out food trends that emphasise clean eating, high sources of protein and vegan friendly options. With authentic meals made fresh-to-order and tailored specifically to personal tastes and dietary requirements, Mad Mex is perfectly

aligned with the needs of increasingly health conscious consumers. Driven by a passion to deliver a healthy Mexican food experience to diners, the company has received countless national and local awards, contributing to the brand’s growing reputation as an excellent franchise chain. The Mad Mex ethos around franchising is all about its people. A great brand is heavily reliant on those who are a part of it. Good character is a primary requisite, after which passion and talent must follow. Mad Mex is in the service industry, meaning franchisees must love serving people and exceeding expectations. By joining the Mad Mex La Familia, you will be part of a solid foundation, so people are free to focus on leading, coaching and developing their teams. Mad Mex provides every franchisee with a platform to deliver great customer service and an impressive dining experience. With this in mind, there are seven core elements that supports this: Franchise selection: It is crucial that franchisees are ‘on brand’ when hiring, training and leading the in-store team in order to deliver the complete Mad Mex experience. Store development: The ingredients to developing a new store consist of a great site, lease negotiation, detailed design and project management.

Training: Comprehensive training during the first six weeks is a must, along with an ongoing investment in upskilling. Ongoing support: Franchisees regularly receive help to develop and execute comprehensive business growth and development plans. Product development: Innovation is key to customer satisfaction. It is an expectation from consumers that we work to continuously develop new and exciting food products. Marketing support: How the brand is marketed will shape the way consumers perceive Mad Mex and what we’re about, so it’s crucial to never loses site of the values and ideals we would never compromise on. Here at Mad Mex it’s brand first then products and promotions. Supply and distribution: Supplier issues can quickly hamper franchisor relationships if not dealt with rápido. Franchisees should expect nothing less than great pricing, quality and distribution, with the franchisor required to ensure this area of the business is as robust and efficient as possible. Mad Mex lives strongly by our values and expects franchisees and staff to do the same. For us, this means being ‘cheeky, authentic & connected’. There’s a lot sitting behind these three words, but by bringing them together you can build a great team and an even greater business. www.madmex.com.au/franchise

26 Business Franchise Australia and New Zealand

MM_

Become Your Own

HEAD HONCHO Invest in a brand that offers the highest quality and freshest Baja-style Mexican. With guacamole, meat and salsas made in our restaurants fresh every morning, you can be part of something unique. JOIN THE FAMILIA

madmex.com.au/franchise

Business Franchise Australia and New Zealand 27 MM_Franchise_Press_AD_17.indd 1

28/11/17 12:27 pm

sna ps h ot: Soccajoeys

the passion is clearly infectious The team at Soccajoeys and their franchise partners are passionate about childhood development, having fun and being active. This passion is clearly infectious, with Soccajoeys seeing continued expansion this year! Originating in NSW, Soccajoeys soon expanded into SA, followed by VIC, and more franchise partners have been spreading their enthusiasm for child development through soccer in QLD since April 2018. WA will see its first Soccajoeys franchise arrive in July 2018. The Soccajoeys brand is growing, and with good reason. Soccajoeys programs do not only offer fun, rewarding experiences for the children enrolled in them, but also provide a healthy, flexible and fulfilling lifestyle for their franchise partners. The key to Soccajoeys success is thanks not only to its passionate people, but also the varied programs that the company offers. With seven product offerings in total, there is something for children of all ages to enjoy and benefit from. These programs are completely customisable and flexible depending on the franchisee’s preferences, ensuring a positive experience for the kids and the Soccajoeys franchise owner. Whether it be Minis (2.5 – 3 years), Preschool (3 – 5 years), Junior (6 – 8 years), Primary School-based programs (prep/kinder – grade 6), Daycare programs (2.5 – 5 years), a three day School Holiday program (5 – 12 years) or a fun, energetic birthday party package, Soccajoeys has a program that all kids can enjoy. All seven programs are designed and perfected by the team at head office, and all the support, information and advice a franchisee could need is provided to them to ensure the kids and franchisee have a positive experience. A franchisee can choose to provide all the programs within their territory, or pick which ones they feel suit them best. This flexibility not only promotes a great experience for the children enrolled, but also ensures a great work/life balance for franchisees.

In the last 12 months, developing and delivering programs to primary schools and childcare centers has been extremely positive for Soccajoeys, with many more thousands of children having access to the program, whilst reaching their developmental milestones. Aside from the school holiday program, all Soccajoeys programs are run during the school term, providing an enjoyable lifestyle and flexibility for franchisees. Head office provides on-going support for all Soccajoeys franchisees, including a centralized franchise management system - through which franchisees can access their territory directly - supply for all online and physical marketing material and collateral, a local area marketing and business plan to help you hit the ground running, centralised call centre, as well as full training and constant support and advice from head office While some Soccajoeys franchisees come from a background in soccer, many people have joined Soccajoeys as a franchise partner

28 Business Franchise Australia and New Zealand

with no prior soccer experience. All you need is a passion for working with children, a driven, motivated attitude, and the desire for flexible lifestyle full of fun and action. Head office offers advice around recruiting coaches, finding appropriate locations and develops all the programs for the franchisee to deliver and pass on to the children enrolled in their local Soccajoeys program. With a focus on childhood development and programs designed to complement the early years learning framework and school PD/H/ PE curriculums, Soccajoeys is as much about physical and mental education as it is about a love for soccer. Soccajoeys is currently in the final stages of launching into Singapore, meaning the company is on the way to becoming an international brand! Contact: 1300 781 735 info@soccajoeys.com

JOIN AUSTRALIAâ&#x20AC;&#x2122;S LARGEST EXECUTIVE HIRE CAR FRANCHISE TOWNCARS PROVIDES FIRST-RATE TRANSPORT SOLUTIONS TO CORPORATE AND PRIVATE CUSTOMERS LOW ENTRY COST EXCLUSIVE AREAS AVAILABLE WORK INCLUDES AIRPORT TRANSFERS GUARANTEED CORPORATE JOBS

NEW BUSINESS INCENTIVES

ENQUIRE TODAY!

UNIQUE ATTIRE AND BRANDING MARKETING GUIDE & SUPPORT 7 DAY CALL CENTRE SUPPORT

OPPORTUNITIES IN SYDNEY AND MELBOURNE towncarsaust.com.au | info@towncarsaust.com.au | 02 8874 5000 or 1300 869 627 Business Franchise Australia and New Zealand 29

e x pert a dv i c e

Need Local Media Advice? Business Franchise Australia and New Zealand has teamed up with Pete Burdon at Franchise Media Training to help you navigate the world of local media marketing. I’m excited to be launching this regular column for Business Franchise Magazine. Media Matters for Franchisees will focus on how you as a franchisee can get positive stories about your business into the news sections of your local media. You may recall an article I wrote in the March/April edition of Business Franchise Australia and New Zealand that focused on this topic. This column will look at this in more detail, with each edition focusing on one aspect of local media marketing for franchisees. The articles will be short and sharp, giving you useful advice that you can act on to grow your business. When franchisees think about marketing through local media, most automatically think of paid advertising. There are, however, major opportunities to be part of the news sections of your local media as well.

“I started Franchise Media Training because I could see the huge untapped potential for both franchisees and franchisors when it comes to promoting themselves through the media.” Pete Burdon | Founder & Head Trainer | Franchise Media Training

Most people, including franchisees, never consider this as a major part of their local marketing plan. Many think they have nothing that would be interesting enough to make the news pages, while many also think they need to use the services of expensive public relations companies to get featured. None of this is true, and my regular column will provide you with the tips and tools you need to make the most of these no-cost marketing opportunities. The beauty of adding this to your marketing mix is twofold. Firstly, there are massive lead generation and reputation-building benefits, as when current or potential clients and customers see you in the news, they see you as standing above the competition. It also creates additional consumer trust, as it is not a paid advertisement and you don’t have control over what’s published. This validation from

30 Business Franchise Australia and New Zealand

the editorial staff gives your franchise added credibility. That’s not to say you should avoid local advertising. It can certainly be a worthy place to spend your marketing dollar. By adding this public relations pillar to your local marketing, you can have the best of both worlds and significantly boost your bottom line. Secondly, this coverage is completely free. Editors and reporters don’t charge when they choose to feature people and businesses in their publications for editorial or news purposes. That means you can add this to your marketing plan without cutting back somewhere else. These are the reasons the column has been introduced. The knowledge you gain will be valuable and will help you grow your business.

So who am I? I’m the founder of Franchise Media Training and a former newspaper reporter and government press secretary. That background has shown me what it’s like to be on both sides of any media conversation or relationship. I know what it’s like to be the journalist at the other end of the telephone or email message. I also know what it’s like to be in your shoes and what it’s like to approach media with suggestions for news stories. It can seem daunting, but it really isn’t - as you’ll find out by reading the columns. Most people make critical mistakes when trying to get their ideas into the news media, but through this regular column I will utilize my years of skills and experience in order to teach you how to avoid those mistakes. I started Franchise Media Training because I could see the huge untapped potential for both franchisees and franchisors when it comes to promoting themselves through the media, and in turn, what that can do to their bottom lines. The sector is in such an amazing position to attract media publicity for several

“There are massive lead generation and reputation-building benefits, as when current or potential clients and customers see you in the news, they see you as standing above the competition.” reasons, and I look forward to exploring those in the issues to come. The column will begin by covering the basics of what franchisees need to know when attracting local media interest, and as the basics are covered we’ll move down deeper into each issue. The first column will look at how to approach local media. This is one of the most important parts of the process and needs to be done properly. It is simple, but it is vital that you know what to do and how to do it. Relationships with reporters are like other relationships in many ways, but there are some things you need to be aware of to maintain a good working relationship. We’ll cover all of this.

Some things to consider before my next column; what is your relationship like with your local news organisations? How much, if any, contact do you have with local reports, journalists or editors? In that column, I’ll look at how to grow this contact and develop a fruitful relationship that will help you significantly boost your bottom line and standing in the community. Franchise Media Training prepares franchisees and franchisors to massively grow their sales and bottom lines. Go to www.FranchiseMediaTraining.com and download the free report, “3 Secrets To Explode Your Franchise Sale and Profits with Free Press.” http://franchisemediatraining.com.

Business Franchise Australia and New Zealand 31

Fran c h is o r I n D ep t h : T heobroma

Theobroma -

Innovation Through Chocolate

Theobroma is more than just a chocolate lounge franchise, it is a destination that offers a unique product experience, with boutique products and a warm, inviting ambience. When the first Theobroma franchise opened in 2006, a heavenly chocolate experience was brought to Melbourne. There are currently five franchised stores in Melbourne, Australia, five in New Zealand and one in Birmingham, United Kingdom. Theobroma stores provide a tangible point of difference in comparison to other food and beverage franchises, with a focus on providing every customer with a truly comfortable and relaxed experience - with an added touch of elegance.

32 Business Franchise Australia and New Zealand

“The team at Theobroma believe that innovation is essential for every business, and food and beverage service should be no exception. This innovation is clear through their menus, store designs and products.”

customers, and determine if they will help drive our business forward.”

The team at Theobroma believe that innovation is essential for every business, and food and beverage service should be no exception. This innovation is clear through their menus, store designs and products. A creative and thoughtful approach to improving the entire guest experience is a key focus at Theobroma, which is a contributing factor to the success of the franchise. Constant improvement and innovation keeps Theobroma at the forefront of the industry and prevents the company from getting stagnant. “What was important to people twenty, ten or even five years ago may be inconsequential today. That can be applied to flavors of chocolate, design, or even customer service,” the Theobroma team explains. “To maintain our edge in the marketplace, we need to dream up new ideas, test them with

Perfect Franchisee Profile

Whilst Theobroma want to always respect and remain true to their heritage and tried and tested successful methods, they are able to deliver relevance to the consumer through a contemporary brand offering.

Theobroma Signature At its core, Theobroma is a chocolate themed café. Their signature products are delicious hot chocolates, made using Belgian couverture molten chocolate. Serving dark, milk and white hot chocolates delivered in the signature Theobroma mug and warmers, in which a flame keeps the beverage hot till the very last drop. Additional specialties include freshly made Belgian waffles and other chocolate themed hot and cold drinks. Beautiful and delicious artisan, handcrafted chocolate jewels are on display in every store, all made using absolutely no artificial flavours or preservatives. A truly unique cafe and chocolate experience.

The Theobroma franchising mantra is ‘one size doesn’t fit all’. Theobroma have franchisees from all walks of life, joining as a franchise partner for many different reasons. Whether the motivation is wanting to be their own boss, or the desire to build a stable business for the family and asset creation, Theobroma suits franchisees from various backgrounds, with differing motivations and lifestyles. A common trait that all Theobroma franchisees must share, is the drive to succeed. Theobroma focuses on: Excellence – to strive to be the best in all that is done Customer Service – to strive for 100 per cent customer satisfaction Passion - Theobroma believe that people are the most important ingredient in making any business a success Theobroma cultivates a continuous focus on innovation. Combined with their

Business Franchise Australia and New Zealand 33

Fr a n c h i s o r I n D ep t h : T h eo b r o m a

“Whilst Theobroma want to always respect and remain true to their heritage and tried and tested successful methods, they are able to deliver relevance to the consumer through a contemporary brand offering.”

commitment to a quality customer experience, these values have earned Theobroma trust and respect in the industry. Theobroma is a recognised leader in the chocolate themed café industry, and they want to talk to people who share their commitment. If you have the ability to make people smile, a friendly disposition, a positive and enthusiastic approach to business ownership with a determination to succeed and grow, you fit the profile as the ideal Theobroma franchisee.

Ongoing Support A training program has been developed to aid these values. The program includes everything there is to know about chocolate, selling skills, inventory control, local area marketing, all areas of the store operations including POS systems and opening/closing procedures. A professional team with extensive experience in franchising, retail and marketing also provide assistance with site selection, store design and fit-out, property leasing, marketing of the brand and providing ongoing marketing support. One of the key elements of the Theobroma

“The franchisee has a significant role to play in choosing the menu that is right for them, their customers and their location. Not many other franchise systems can offer this level of input and flexibility.” brand is working alongside their franchisees. Theobroma has found through years of experience, that when the franchisee has more involvement in decision making - from marketing and store design, right down to the menu - a much more inclusive and positive working environment is created. The franchisee has a significant role to play in choosing the menu that is right for them, their customers and their location. Not many other franchise systems can offer this level of input and flexibility.

Theobroma - Ahead of the competition Theobroma is an established brand, with a successful presence in multiple countries. The company boasts an expansive network of cafes, bars and lounges and is growing fast! The Theobroma brand is famous for its ever-growing catalogue of delicious, artisan

34 Business Franchise Australia and New Zealand

chocolates, food and beverages. All these items have an unsurpassed product quality. Theobroma’s solid reputation across the world has been achieved through selecting the right franchisee and the best locations. It really is about creating a dream business opportunity. Theobroma is looking to continue expansion right across all states in Australia, and around the world! There are new Theobroma sites available now across the globe. Whether you are interested in a single restaurant, kiosk, café, bar or retail outlet, Theobroma are interested in hearing from you. Contact Benjamin Fernandes, the Operations and Franchise manager today on: 0431 727 004 franchising@Theobroma.com.au www.theobroma.com.au

Growth. Success. Unlimited potential. Optus Retail Partner invitation You’re a leader in your community. You know the people. You understand business. We’re a telco that’s transforming. Moving into a world of entertainment, bringing Australians their favourite content – music, sport, TV and movies at home and on the go. We’re creating something special delivered on Australia’s winning mobile network, which was named ‘best in test’ in the P3 connect Mobile Benchmark Australia 2017. This is your opportunity to be part of our continuing vision. Ready for a fresh, new challenge that gives you growth, freedom and flexibility? Become an Optus retail partner and help shape the ongoing success of our business. You’ll receive ongoing support via training and marketing programs that will build on your business acumen. Plus, you’ll enjoy programs that help give back to your community. Make your move today.

e x pert a dv i c e

IS FRANCHISING REALLY IN STRIFE? Current media coverage might indicate that franchising in Australia is in strife, but that’s not the case. Let’s start with the good news about franchising. The franchising industry frequently achieves double-digit annual gains and contributes a vast amount to Australia’s GDP. The sector is a huge support to the Australian economy and society, providing at least 580,000 jobs each year – that’s 4.4 per cent of all employment, now rivalling the manufacturing industry. Unfortunately, this is not the current message being sent either politically or by the media, who are instead indicating that problems with a few are representative of the whole industry. This year I have spent time presenting at franchise exhibitions in Sydney and Perth and spoken to a couple of hundred people interested in growing their business using franchising as the model. There is no doubt that there has been a fall in the level of interest at these exhibitions due to the message being heard from the media. The unfortunate result is probably that growth of the most dynamic and rapidly expanding business sector in this country has been derailed with a possible long-term impact on the Australian economy and employment growth nationally.

Why has this happened? Due to extensive multi-media coverage, the reputation of a couple of large franchise groups has deservedly been outed for serious breaches of the expected levels of integrity and transparency in business practice. Those involved will no doubt be pursued and hopefully made to pay the price of their behaviour through the strict legislation under which Australian business is ruled.

“The recently commissioned Franchise Inquiry will examine these matters closely and hopefully conclude the current legislation, whilst in need of fine tuning, is not in need of any dramatic change.” Brian Keen | Founder | Franchise Simply

But, and here’s the ‘rub’, the resulting fall in interest in the whole sector I am seeing, unhappily looks like it has affected many in the industry. All because the often hysterical pursuit of the franchise sector means everyone is being punished on behalf of the few. This is blown out of proportion. The recently commissioned Franchise Inquiry will examine these matters closely and hopefully conclude the current legislation, whilst in need of fine tuning, is not in need of any dramatic change. The current legislation will deal with the aberrant few. I know the franchise sector is mainly populated by warm, caring business people who fully understand it takes a team to deliver (I believe not more than four or five groups out of the 1160 have behaved questionably – that’s less than 0.5 per cent). Think of your favourite shopping centre brand, food hall favourite, home service provider, anything at all really, and they will likely belong to one franchise group or another. The disappearance of these will affect us all. It is this majority who understand that, to make a franchise network hum, franchisees and franchisors need to work together to bring in the money for both sides. The franchisee on the frontline, happily giving customers great service with a smile in return for well earned dollars. The franchisor on the other hand, supporting their franchisees with a brilliant brand, fantastic product, some marketing, business assistance, business training and

36 Business Franchise Australia and New Zealand

help when things become tough – this list can be very long and, in today’s digital business environment, expensive. Most franchise systems recognise these challenges and acknowledge that they are responsible for the brand and marketing for everyone’s business in their network and they work hard to keep everyone informed and keep a handle on what is going on to keep the money rolling in for everyone. Hire A Hubby is a classic example which illustrates this point so well. They were awarded the Franchise Council of Australia’s Excellence in Marketing award in 2017. Achieving this was not easy. The journey started with changes to data management of the group which meant reports on how the group was fairing became available. By 2014 it was evident franchisees were working on much larger jobs than a simple handyman could achieve, and marketing was vastly underselling their abilities. It was also evident the traditional marketing tools being used were woefully out of date. So, the investment to go digital with improved social media and online marketing was made in conjunction with a good look at the needs of the actual 2014 target market. Yes, to begin with, there was resistance from franchisees. But within a year the results of this change were astounding and brought everyone on board with pride, increasing the value of everyone’s asset. One of the most powerful elements of franchising, and of most franchise groups is

it’s al l good n ew

that they are on top of their numbers. They understand the importance of their KPIs and how their target market is changing and what their franchisees are actually doing matched against the market’s needs. They rigidly collect and understand data from their own digital sources and stories from their franchisees and make changes as required. Any business that fails to do this will inevitably come up against barriers to growth. Remember it is the entrepreneurial spirit most of our franchisors have which enables them to understand the market and make sure the network is still on the mark, make changes as needed to keep up with the shifting social and digital business environment, which also brings in the dollars for the group.

“Remember it is the entrepreneurial spirit most of our franchisors have which enables them to understand the market and make sure the network is still on the mark.” employers. It is still a proven, safe, solid and extraordinarily successful business model and destined to continue long into the future.

A franchisor cannot do this without franchisee support. The bottom line is, a great franchise is one which has been structured and systemised so both sides of this business partnership can happily and profitably be working together.

Regulating the nebulous can end up strangling the goose that lays the golden eggs. True, some management has behaved badly, but this is not the time to suffocate the 95 per cent of ethical and successful franchised businesses with even more compliance and bureaucratic second guessing. Australian consumers will only suffer more if franchising is prevented from applying its entrepreneurial, innovative and disruptive skills to raise the standard of business and customer service that the modern world demands.

The truth is, this kind of sharing and caring franchising is strong, showing yearon-year growth which is overtaking the manufacturing sector as one of our major

The Inquiry will be essentially self-defeating if it focuses on the past and ignores its responsibilities and the needs of the future. The risk of unintended consequences is high

and we do not need to learn that too much legislation inflicts more pain than too little. * Trading Economics Australia GDP Annual Growth Rate 19602018 **Franchising Australia 2016 Griffith University ***https://profile.id.com.au/australia/industries

Brian Keen has been involved in the franchise industry for more than 30 years. He is the founder of Franchise Simply. His hands on business experience as a multiunit franchisee, franchisor and consultant helping many of the big names create their own franchise systems and growth over the years has been fed into Franchise Simply, helping today’s SMEs grow their business by franchising. 1300 960 136 brian@franchisesimply.com.au www.franchisesimply.com.au

Business Franchise Australia and New Zealand 37

sna ps h ot: books & gifts direct

Books & Gifts Direct

Leading The Way In Customer Service and Quality Books & Gifts Direct are a specialist mobile retail business, offering a variety of handpicked and markettested books and gifts to private customers and businesses across Australia. With over 100 franchisees and sub-contractors in operation Australia wide, Books & Gifts Direct continues to lead the way when it comes to providing quality products and personable customer service. Since the company’s formation in 1991, Books & Gifts Direct has been providing Australians with a unique, direct buying experience. The company’s founder, Mark Bonello, is still the chief buyer for Books & Gifts Direct, bringing with him decades of retail experience and expertise. In 2001, the longstanding sales

team wanted to gain ownership for their part in successfully building the business, so Books & Gifts Direct become a franchise, allowing the business to expand even more.

Product offering Every fortnight, Books & Gifts Direct provide a select range of highly popular items, curated in a way that means customers can find a fantastic gift for everyone and anyone. This large variety does not mean lessened quality, as the team at Books & Gifts Direct pride themselves on sourcing only the best quality product selection. By buying in huge volumes and having drastically reduced overheads of traditional retail operations, Books & Gifts Direct can afford to offer massive discounts to their customers. With items that are great for friends, family, kids or even corporate gifts, Books & Gifts Direct have something for everyone. Customer service is the name of the game for Books & Gifts Direct, with all products personally delivered by a local Books & Gifts Direct franchisee!

“Other businesses have converted to online retail in order to remain competitive, meaning many have lost the personal touch of customer service, along with the providing customers the ability to touch and feel products before making a purchase” says Jason Rose, Commercial Manager at Books & Gifts Direct.

Perfect franchisee fit If you have a flair for customer service and are looking for a flexible lifestyle offering 9-5, Monday to Friday hours, Books & Gifts Direct could be the perfect franchise for you. The team at Books & Gifts Direct are always seeking healthy, happy and mature candidates to join the team as franchise partners in territories around Australia. If you have the ability to provide service with a smile, Books & Gifts Direct believe that makes all the difference! Visiting 120-180 customers per week requires a moderate level of fitness and dedication to finding success.

Books & Gifts Direct help you succeed Books & Gifts Direct take no royalities from their franchisees, and offer thorough training. Their revenue support program gives qualified franchisees the ability to focus on understanding and developing their business rather than worrying about their weekly outcomes. Over the course of the first year, the Master Franchise is scheduled to meet with the franchisee regularly to review business development and to provide further training and advice. When the initial training program finishes after the first 12 months, the franchisee will have been guided through an entire calendar year with Books & Gifts Direct. They will understand the operations of the business, and will have built up their skills to be able to continue to build on their business.

If you are looking to improve your lifestyle, become your own boss and deliver exceptional customer service - all backed by a proven and trusted brand - get in contact with Books & Gifts Direct today! +61 2 9899 9655 enquiries@booksgiftsdirect.com

38 Business Franchise Australia and New Zealand

AD_

BECOME OUR NEW

F R A N C H I S E PA R T N E R I N AUSTRALIA Fro m D e nm a rk to th e w o rl d s in c e 19 5 2 , B o C o n c e pt sp e c i a l iz e s in p re m ium qu a l it y int e r io r d e s ig n fo r th e ur b a n- m in d e d c u sto m e r. With over 25 years of franchise experience, and more than 265 stores in 65 countries, BoConcept is an established and proven Retail Franchise system,

J OI N A G L OB A L F U R N I T U R E DE S I G N B R A N D , OF F E R I N G A S T RON G A N D PROV E N

offering an attractive business model. The strong toolbox, and the outstanding support within all areas of business and retailing, make easy the setup and management of a BoConcept store. Therefore, most of our partners own multiple stores.

R E TA I L F R A N C H I S E CONCEPT

LOOKING FOR FRANCHISE PARTNERS TO COVER THE FOLLOWING AREAS: Melbourne I Perth I Brisbane I Gold Coast

F O R F U RT H E R I NFO RMATIO N F R A N C H I S E @ B O CONCEP T.COM I BOCONCEP T.COM/FRANCHI SE

Business Franchise Australia and New Zealand 39

AD_210x297_FH_AU_alternative.indd 1

19/03/2018 08.15

fo c us : B o C o n c e pt

Design Your Lifestyle with a BoConcept Franchise

BoConcept is more than just a retail franchise with a passion for producing impeccably crafted pieces for the home; it is an organisation with style and expertise, ready to help all of their customers create modern and sophisticated homes and living spaces with Scandinavian design principals at its heart. BoConcept is a global brand, with 265 stores in 65 countries, spreading across Europe, North America, the Asia Pacific region, the Middle East and Northern Africa.

As BoConcept begins expanding within Australia, we decided to explore some of the many reasons that BoConcept is ahead of the competition - for both their franchise partners and their customers.

Interior Design Service While everybody wants to live in a beautiful space, not everybody has a flair for interior design and decoration. Unlike many furniture franchises, BoConcept offers a personalised interior design service, set up as a way to help their customers navigate the world of home improvement, and to offer an additional selling point for franchisees. Redecorating can often be a challenge, but BoConcept has the style and expertise to help with in every aspect of interior decoration, from choosing items of furniture and accessories, to assisting in designing the entirety of the home. When soccer star Alejandro Bedoya and his wife, Beatrice, moved to the United States, they were looking for a way to bring the

40 Business Franchise Australia and New Zealand

look and feel of Danish design into their new home. The BoConcept personalised interior design service was instrumental in helping them achieve that. “The BoConcept furniture brings out the best in our home because it’s a modern house with clean lines. Our home mixes industrial materials and metal with wood and a combination of light colours, which when matched together with BoConcept pieces, gave us the look we were going for,” says Alejandro. This service is not only fantastic for BoConcept customers, it is also a great upselling tool for BoConcept franchisees. This point of difference is just one of many ways that BoConcept supports their franchisees in achieving success all around the globe.

Furniture Customisation Another unique selling tool offered by BoConcept is furniture customisation. Many options are offered to customers to customise their furniture. This creates further

“Unlike many furniture franchises, BoConcept offers a personalised interior design service, set up as a way to help their customers navigate the world of home improvement, and to offer an additional selling point for franchisees.”

“BoConcept as a brand is globally renowned for its style, quality and fair price. Becoming a BoConcept franchisee means joining the ranks of this success, stylish and profitable organisation.” really is affordable luxury. By collaborating with world renowned designers, BoConcept continuously cultivates brand credibility and integrity, a huge benefit for their many successful franchise partners.

design input from the customer, resulting in a positive, inclusive experience. Every BoConcept design is full of possibilities, just waiting to be conceptualised. The BoConcept interior decorating software, ‘Room Planner’, assists franchisees in visualising these further options with their customers. It is a fantastic tool that adds additional ‘wow’ factor when encouraging customers in their buying decision. All of the BoConcept Brand Stores, Inspiration Stores and Studios are fitted with an on-site workshop, where franchisees can walk customers through all the individual furniture options.

Scandinavia in Sydney With the first Australian BoConcept franchise opening in Sydney, Australians now have access to impeccably designed Scandinavian furniture pieces, accessories and home styling. Interior designer Kate Sparks, founder of Sydney based interior design studio Little Dwellings, recently visited the Sydney store to

find pieces to help her design beautiful spaces. The sleek, simple style that Scandinavian design is known and loved for is the ideal aesthetic for interior designers around the world, with Australia being no exception. “BoConcept Sydney helped Kate create a beautiful bright living space centred around the entertainment area with the Fermo media unit. A neutral colour palette with open shelving makes it possible for Kate to display her style and restyle for a totally new look.”

A Franchise for Your Lifestyle BoConcept as a brand is globally renowned for its style, quality and fair price. Becoming a BoConcept franchisee means joining the ranks of this success, stylish and profitable organisation. With 15,000,000 website visitors, 5,000,000 in-store visitors per year, you know you are partnering with a brand and company you can take pride in and find success with. With premium quality and design at reasonable prices, BoConcept

By focusing on functional and customisable furniture - for outdoor and for every room in the home - BoConcept has created an approachable, fashionable, trusted and customer focussed brand. On top of this customer focus, BoConcept is passionate about facilitating the best possible experience for its franchisees. Becoming a BoConcept franchisee means joining a team of equals, with the support of a solid franchisor. BoConcept is an award winning company, with a proven, profitable business model. Franchisees are provided with world class support, training and programs to ensure continued success for every BoConcept franchisee. BoConcept have developed a superior, first class store opening process and a model for generating quick cash flow. These franchisee benefits, combined with the superior customer experience offered by BoConcept mean you can design your perfect lifestyle with a BoConcept franchise. For more information about joining a profitable business with a quick generating cash flow model, contact Carsten Brink today on: (+61) 474 278 485 franchise@boconcept.com www.boconcept.com/franchise

Business Franchise Australia and New Zealand 41

pr o file : laser clinics au stralia

Spirited. Driven. Unstoppable.

Meet Kerry. Kerry first heard about Laser Clinics Australia franchise opportunities when her daughter began working for Laser Clinics Australia as a Cosmetic Injector. Having worked in clinics for over 30 years, she was ready for a new challenge and felt confident this was the next step in her career. Kerry has owned her clinic in Malvern, Victoria for over 18 months. “I had several goals. To challenge myself to run a successful and profitable clinic, have flexible working hours to suit my lifestyle, be my own boss with support from a franchisor, and have the chance to work with my family. I now have my daughter working with me at my clinic, which means I get to see a lot more of her. And it’s nice we can support each other’s career paths, too.”

Kerry was familiar with how a clinic ran in terms of management, treatment rooms, front desk, staffing and promotion. And though the aesthetic industry and retail environment was something new to grasp, she has found the process a rewarding one. “I knew that a clinic-related franchise was the best option for me and after looking into a Laser Clinics Australia franchise, I didn’t feel the need to consider other options. The business model suited me perfectly.” To share experiences and learnings, Kerry gets together regularly with other Laser Clinics Australia clinics around her area. And values the partnership she has with head office. “The team are all professional, approachable and are dedicated to working with us for the best business outcomes. It continues to be a really rewarding experience.”

Building “younity” with Laser Clinics Australia “We want to create a world where every individual has the right to choose their look and feel great about it.” Since opening the first Laser Clinic in 2008, the brand has carved a unique niche in the cosmetic treatment industry, helping people of all ages amplify whatever it is about themselves that makes them feel good. Their ‘youness’. Without prejudice, without hesitation. Just all the confidence in the world to go out there and own it. Laser Clinics Australia now have over 100 clinics around Australia, with more to come very soon. Their hard-working team is dedicated to offering affordable, accessible and reliable cosmetic treatments, and their growing, loyal fan base is proof that what they are doing is of value. “Together, in ‘younity’, let’s support each other in making our own individual choices about the way we choose to look.” – Laser Clinics Australia

42 Business Franchise Australia and New Zealand

Your success is our success. You are just the person we are looking for. We are the global leaders in the booming laser, skin and cosmetic injectables industry, since 2008. And we want people like you. Spirited. Driven. Unstoppable. With our unique 50/50 franchise partnership, we’re with you, working together and supporting each other on the pathway to success. So if you want to run your own successful franchise, be your own boss and take control of your future then let us help you turn your dream into a plan.

Why partner with us. • Guaranteed $100k Salary per annum • Award-winning Growth • Turn-Key set up with state of the art equipment and design • Booming Aesthetics Industry • Market Leading Brand :[H[L VM [OL HY[ Ä[ V\[Z • On-going training on all products and services • Marketing initiatives at the national and local clinic level • Human Resource support • Recruitment and training of cosmetic injectors • Ongoing IT support and a full suite of cloud-based business tools Let’s do this. Visit laserclinics.com.au/franchising for more information. Call Liz Seeto +61 402 171 399 or Fiona Harcourt +61 400 303 272.

We’re with you.

Business Franchise Australia and New Zealand 43

Don’t miss an issue

Get the App C OV ER STO RY: L a Po rc h et t a

at La Porchetta. Being part of this brand is like being part of a big family. They are very supportive of their franchisees and they nurture us to grow.”

WHY OUR TEAM

LOVE LA PORCHETTA There are many reasons why new franchisees join the La Porchetta system, but chief among them is that they know and trust the brand. Since its humble beginnings more than 30 years ago as a take-away pizza shop in the Melbourne suburb of Carlton, La Porchetta has grown into a much-loved household name and a favourite local eatery in many parts of Australia and New Zealand. When Guatam Gulati bought his first La Porchetta restaurant in the outer-Melbourne suburb of Werribee in December 2016, he already had experience in the franchise sector as the owner of two other franchised food outlets. “La Porchetta is a well-known brand that continues to open new restaurants” he

And indeed, Mr. Gulati is now looking to

“We were also attracted by the family values

10 Business Franchise Australia and New Zealand

Today, La Porchetta Ivanhoe is a family-run business, with Annette, her husband, two of their sons and a daughter-in-law all working there. “We believe strongly in the brand and we believe that it’s better for us to all work together as a family, rather than work for someone else. We looked at a number of venues and when La Porchetta Ivanhoe came up for sale, we thought it had a lot of potential, so we bought it. It’s only our third year in the business and we’ve already doubled our figures on special occasions like Mother’s Day.” CEO of La Porchetta, Sara Pantaleo says, “The level of success we’re seeing with new franchisees can only be achieved with a culture of support and collaboration. As the franchisor, we put a lot of resources into staff and systems to effectively support every franchisee and help them manage and grow their business with minimal risk.” Even though La Porchetta now has streamlined corporate structures in place, it has never strayed from the family values on which the business was built. “Our core values of family culture, passion for quality Italian food and investing in relationships with franchisees are what drive the business,” said Ms Pantaleo. “We believe they are the drivers of our success.” Mr. Gulati agrees, saying, “I feel like I’m part of a big family with La Porchetta. I don’t feel like we are doing business with each other, but more like we’re working together to fulfill our goals.”

“La Porchetta also has a culture of innovation to ensure the brand remains on track with changing customer needs T H E M A G A Z I N E F O R F and franchisees are regularly consulted regarding brand development.”

R A N C H I S E E S VOL 12 ISSUE 05 JUL/AUG 2018

We’re looking for franchisees with a passion La Porchetta also has a culture of innovation for the industry, great people skills and to ensure the brand remains on track with changing customer needs and franchisees entrepreneurial drive,” says Ms Pantaleo. are regularly consulted regarding brand “Regardless of whether or not you’ve managed development. Ms Gabriele is a member of La your own business, we can support you to Porchetta’s Franchise Advisory Committee learn everything you need to run your own and as a trained chef, she assists with recipe restaurant and our team will continue to AUSTRALIA and NEW ZEALAND development. “It’s important we keep up with support you in your business on an ongoing food trends and I’m keen to have input when basis.” the new menus are being developed. It’s also For many franchisees, owning a La Porchetta my way of giving back to the brand” she said. franchise can make a real difference to their To customers, La Porchetta is a trusted work life balance. “My family is very happy restaurant group, known for its consistent because they see that I’m not stressed as I was quality, value and service and the restaurants in the past,” said Mr. Gulati. “When you have quickly become a part of the local community, a good system in place, with good policies and wherever they are situated. “We get lots of procedures, you can spend more quality time positive feedback from our customers and we with your family.” feel like we’re part of the local community,” “Our franchisees really believe in the brand,” said Ms Gabriele. said Ms Pantaleo. “They can leverage off New La Porchetta franchisees come from many years of experience and success and a wide variety of backgrounds, as previous enjoy the security of a known and wellindustry experience is not a pre-requisite to loved brand, robust systems, our culture of joining the brand. La Porchetta has a highly innovation and a proactive Support Office effective recruitment, training and induction that helps them grow their business.” program that firstly ensures the fit is right and Opportunities are now available for aspiring then provides an intensive training program restaurant franchisees who want to be part of which covers every aspect of the business and a proven, successful franchise system. includes hands-on learning. New franchisees learn about food preparation and safety, To make an enquiry or obtain more customer service excellence, building rosters, information contact: business administration and much more. 03 9460 6700 They then spend time in aIMPORTANCE restaurant learning OF THE franchising@laporchetta.com.au everything they will need to know, from www.laporchetta.com or cooking, making pizzas and working the bar www.laporchetta.com/franchising to cleaning and hygiene.

WHY OUR TEAM LOVE

MAKING A PROFIT

LA PORCHETTA

Business Franchise Australia and New Zealand 11

BUILD A GOOD FOUNDATION FOR YOUR FRANCHISE FINANCIAL & LEGAL ADVICE

$6.95 (AUD), $7.95 (NZ) inc. GST.

LATEST NEWS

FRANCHISE DIRECTORY

www.businessfranchiseaustralia.com.au 44 Business Franchise Australia and New Zealand

VOL 12 ISSUE 05 july/august 2018

#PeoplePossible with MBE

donâ&#x20AC;&#x2122;t get caught out by the renewal process

the importance of

making a profit Business Franchise Australia and New Zealand 45

Adverts

Stationery

Logos

Jejak Graphics is a freelance graphic design business based in Melbourne, Australia working with clients worldwide. With over 20 years experience in the design and print industry specialising in magazine layout and advert design as well as offering a number of other graphic design services and print solutions including: t "EWFSU %FTJHO t $PSQPSBUF TUBUJPOFSZ t #SPDIVSFT BOE nZFST t 1PTUFS BOE CBOOFS EFTJHO t &EVDBUJPOBM NBOVBMT t 4QPSUT QSPHSBNT t .POUIMZ /FXTMFUUFST t 1SPEVDU MBCFMT BOE QBDLBHJOH Artwork is tailored to your brand and focused on your message and target audience. /P KPC JT UPP CJH PS TNBMM $POUBDU NF UPEBZ UP EJTDVTT IPX +FKBL (SBQIJDT DBO NBLF ZPVS DPNQBOZ PS organisation leave â&#x20AC;&#x2DC;a lasting impressionâ&#x20AC;&#x2122;. 46 Business Franchise Australia and New Zealand

Posters

Manuals

JEJAK GRAPHICS

a lasting impression

03 5977 8804 | 04222 676 39 jejak@bigpond.com EXAMPLES: www.issuu.com/jejakgraphics

Contents

On the Cover 48 Cover Story: #PeoplePossible with MBE

Mailboxes Etc (MBE)

58 Expert Advice: Donâ&#x20AC;&#x2122;t Get Caught Out by the Renewal Process

Raynia Theodore | MST Lawyers

66 Expert Advice: The Importance of Making a Profit

Andrew Graham | RSM AUSTRALIA

50 Feature Editorial: Business Supporting Business

54 Profile : Simplicity Loans and Advisory 56 Have Your Say: Cashflow It

Considering Alternative Finance Companies with Cashflow It

60 Profile : Harmoniq 62 Expert Advice: Are You Buying a Small Business or a Franchise Business? Whatâ&#x20AC;&#x2122;s the real difference? FC Business Solutions

64 Profile : The Interface Financial Group

Finance Your Franchise with Simplicity Loans & Advisory

A regular of Business Franchise Magazine, our special supplement in franchising showcases a different industry each issue To share your specific expert industry advice or to feature your franchise in the next issue, please contact: Kathleen Lennox, Sales & Marketing Manager Phone: 03 9787 8077 Email: kathleen@cgbpublishing.com.au

Business Franchise Australia and New Zealand 47

FE ATUR E : busi n ess serv ices

c ov er sto ry: M ail B oxes E tc.

#PeoplePossible with MBE “MBE‘s #PeoplePossible attribute embodies the best way to convey the MBE Global Network’s vocation of continuously finding new tailormade solutions to meet customers’ daily challenges. MBE entrepreneurs are solutions enablers.”

Mail Boxes Etc. is one of the largest third-party logistics, communication services, marketing and printing networks in the world. With over 2,500 Service Centers globally, Mail Boxes Etc. is constantly finding new, tailor-made solutions for its customers’ daily challenges. This focus drives Mail Boxes Etc. entrepreneurs across the world towards successful innovation. Mail Boxes Etc. (MBE) is an organisation of solution enablers, and its #PeoplePossible attitude has proven to shift boundaries around the globe. MBE Worldwide Group Over 2,600 Service Centers Worldwide 44 Countries Worldwide US$940 Million System-wide Sales

Impressive Global Expansion Since its foundation in San Diego, California in 1980, MBE has evolved into one of the world’s largest international networks of franchised entrepreneurs operating retail-based shipping, logistics, printing,

marketing and communications solutions to private customers and businesses big and small. In 1992, the Master License for Italy was acquired. By 2003, the MBE success story was repeated with further expansions in Spain, Germany and Austria. The entire MBE global business (except for North America) was acquired by Milan-based MBE Worldwide in 2009, with continued growth planned for the future. The record of success reached another milestone in 2017 with the strategic acquisition of two U.S. based companies, PostNet and AlphaGraphics. In 2017, MBE signed Master Franchise Agreements for 13 new countries. This exciting expansion has brought MBE and its services to the Balkans, Eastern Europe and Greece. “We aim to develop the Mail Boxes Etc. brand and network throughout the world. To achieve this, we are continuously engaged to attract successful, motivated and entrepreneurial businessmen and women to own and operate franchise master license agreements” said Giuseppe Bergonzi, General Manager of Worldwide Development. “MBE succeeds internationally because of its ability to adapt the business model and extensive range of services to meet the requirements of both service-oriented businesses and convenienceoriented consumer.”

48 Business Franchise Australia and New Zealand

Upon signing a master license agreement, each master licensee acquires exclusive rights for their country to use the MBE internationally registered brand and associated trademarks, Franchise business concept, and know-how to develop and support a network of entrepreneurial franchisees in their licensed specific territory.

MBE Australia In August 2018, MBE Australia is celebrating the 25th Anniversary of the first ever Mail Boxes Etc. centre in Australia. Since then, MBE has been servicing Australians through centres in Brisbane, Gold Coast, Canberra, Perth, Sydney and Melbourne. MBE Australia proudly services businesses big and small, as well as private customers. MBE really is a one-stop-shop, providing services ranging from: • copying and printing • private mailbox services • mail forwarding and redirection • mail and parcel notification • direct mail programs • virtual office services • telephone answering services Backed by the MBE Global brand and its #PeoplePossible campaign, Australian private customers and businesses know that MBE Australia is a trusted, reliable and innovative service provider for a wide range of products, business and mail services. “MBE‘s #PeoplePossible attribute embodies the best way to convey the MBE Global

MBE are looking for new owner-operators across all states and territories who are open to the possibilities provided by the MBE brand. Requirements include being driven and self-motivated, and no prior business ownership experience is necessary, although an understanding of business and the attitude of a team player are vital. If you have a passion for business, the ability to communicate and work well with others, and a drive to success, you fit perfectly with the Mail Boxes Etc. team. If you think you’re a match for MBE, enquire about becoming a part of a dynamic franchising community today! Franchisees receive full support from the MBE head office - dedicated to providing guidance, consulting and all the resources you need to make your MBE franchise successful!

Ongoing Support for Franchisees All new franchisees take part in a comprehensive six-week training program, that covers all aspects of running your centre. Ongoing training is provided, utilising MBE’s Online Training Academy and valuable support from the head office team. Administration and accounting training is provided, plus a comprehensive quarterly marketing action plan produced by the head office marketing department. This assists franchisees with local area marketing and seasonal advertising, which is invaluable when engaging with a local territory. Easyto-use templates and artwork are provided in order to achieve successful marketing.

Network’s vocation of continuously finding new tailor-made solutions to meet customers’ daily challenges. MBE entrepreneurs are solutions enablers.”

MBE: A Customised Franchise Offering Mail Boxes Etc. have long been known as the franchise with three businesses in one – freight, printing and mail box services. This varied service offering makes an MBE franchise ideal for driven, entrepreneurial franchisees. This unique multi-product

franchise has achieved great success over the last 30 years, and MBE are now looking for new franchisees to join them as they enter this exciting new era of growth. The team at MBE recognise that franchisee and customer needs are starting to shift, and their franchise team is leading a format change that will mean significant cost savings to the franchisee. With over 2,600 affiliated Centres worldwide, MBE is expanding globally. The MBE footprint in the Australian marketplace has always been consistent, but new outlets can take on a kiosk format rather

MBE’s Franchise Conference is also popular within the network, with an attendance by more than 85 per cent of the franchisees. Held in the Barossa Valley earlier this year, the focus was innovation, both in the network and the industry in general, to capitalise on market share. Featuring motivational speakers and presentations on a range of topics, this was an opportunity for franchisees to come together and share best practices and support each other. If you think you are a fit for MBE and are interested in joining the well established global franchise network, contact us now for more information on: 0457 677 986 www.mbe.com.au

Business Franchise Australia and New Zealand 49

FE ATUR E : busi n ess serv ices

than a traditional retail outlet. This gives the franchisee the option to focus on services other than printing. The kiosk format also means that less floor-space is required, which allows for a lower lease cost, and an even more affordable franchise!

FE ATUR E : busi n ess serv ices

Business Supporting Business

In order to maintain a successful franchise business, both franchisees and franchisors will need to engage with any number of business services. For small, medium and large companies, finding the perfect support services to assist in the everyday running of the business is often vital in order to achieve and maintain success. At Business Franchise Magazine Australia and New Zealand, we appreciate the

efforts, expertise and importance of the many different business services available to business owners in Australia and New Zealand, and around the world!

Business services cover a wide range of requirements, whether it be a thorough and trusted office or shop cleaner, a knowledgeable lawyer or accountant, a reliable printing company, a talented designer or an innovative IT company, business services are the key to success in the world of business and franchising.

Trusted Business Services Business Franchise Magazine has developed invaluable relationships with a vast number of business services over the years, so we

50 Business Franchise Australia and New Zealand

decided to share some of our industry experience with you in this monthâ&#x20AC;&#x2122;s â&#x20AC;&#x2DC;Business Servicesâ&#x20AC;&#x2122; Feature.

Consulting Engaging the services of a consultant can be a fantastic help for many businesses. You can find a consultant for basically every industry and business type, ready to share their expertise and give expert advice. Whether you are looking for help to grow and expand your business, want to introduce new products or services effectively, or are seeking niche industry advice, there is undoubtedly a consultant out there will the knowledge and experience your business requires. This issue of Business Franchise Magazine

FE ATUR E : busi n ess serv ices

“Engaging the services of a consultant can be a fantastic help for many businesses. You can find a consultant for basically every industry and business type.”

Australia and New Zealand includes a number of great consulting companies, ready to assist you with your franchise.

DC Strategy For over 30 years DC Strategy has been providing end-to-end franchise consulting, law, recruitment, brand, marketing and technology services. Their experienced multi-disciplinary teams have built over $2 billion in enterprise value for clients in the last decade alone, developing and supporting many of the most successful national franchise brands here and internationally. DC Strategy manage the franchise commercial, legal and recruitment needs of a large number of networks providing specialist services including trademark,

employment, migration, mediation and international recruitment assistance.

Franchising Consulting and Advice

FC Business Solutions

We are lucky enough to have Brian Keen, founder of Franchise Simply and Pete Burdon, founder of Franchise Media Training contributing to this issue of Business Franchise Magazine. Brian Keen has been involved in the franchise industry for more than 30 years. His hands on business experience as a multi-unit franchisee, franchisor and consultant at Franchise Simply has helped many of the big names create their own franchise systems and growth over the years. Pete Burdon at Franchise Media Training utilises his years of franchising and journalistic experience to consult franchisees on how to best utilise local media. Franchise Media Training prepares franchisees and franchisors to massively grow their sales and bottom lines.

FC Business Solutions is an integrated consultancy focused exclusively on the franchise community. Their team of professionals has been providing specialised and expert services to franchises for many years. The FC Business Solutions team are actively involved members of the Franchise Council of Australia regularly attending events, participating in committees and assisting in raising the profile of franchising in Australia. FC Business Solutions regularly contribute interesting and knowledgeable ‘Expert Advice’ columns for Business Franchise Magazine, another way they continue to services the franchising industry.

Accountants There are are very few things in business that is more important than the bottom line. This makes effective accountancy vital in order to manage and maintain a business’s finances. Many small to medium businesses outsource their accountancy, and there are many reliable accountants out there to service a wide range of businesses. Whether it be for payroll, accounts payable or receivable, or more holistic, all round accounting, a good accountant could mean make or break for a business.

RSM Australia RSM Australia is committed to enabling clients through a greater understanding of what matters most to their business. In addition to local knowledge provided by

Business Franchise Australia and New Zealand 51

FE ATUR E : busi n ess serv ices

their advisers in 30 offices across Australia, RSM Australia draws on their international reach and scale to ensure clients stay at the forefront of the world’s best practices, technology and innovation within a rapidly changing global economy. Providing ready access to expert corporate financial and advisory accounting services, RSM Australia’s one-firm structure underscores a client-focused culture.

M.A.S Accountants As the original accounting office for small business, m.a.s have worked with various clients with varying needs, from accounting basics to tax accounting, to payroll management, accounts payable and accounts receivable assistance, business accounting is our strength. M.a.s know that your time is too valuable to spend on doing your small business accounting.

Lawyers Good legal advice is vital for businesses, and thankfully there are some fantastic lawyers in Australia and New Zealand ready to assist business big and small with their legal requirements.

MST Lawyers In this issue, we have a valuable Expert Advice column written by Raynia Theodore, Principal, in the Corporate Advisory and Franchising Team at MST Lawyers. MST Lawyers has over 25 years’ experience in franchising, representing clients throughout Australia and internationally in a variety of industries. MST are the trusted lawyers and legal adviser for countless business, and are a great example of how beneficial effective legal advice can be.

Marsh and Maher Lawyers Marsh and Maher commenced as a new boutique legal firm in 2008, with a desire to provide practical and efficient legal services to its core of established clients. In March 2017, Marsh and Maher joined with Richmond Bennison, completing their broad range of expertise. As well as providing clients quality legal services, it was also their ambition to ensure each client felt that their needs were given the highest priority. They aim to be our clients’ “Trusted Adviser”. Marsh and Maher continue to strive to provide pragmatic and sensible advice and ensure each client is properly valued, and

their needs, whether business or personal, are given the highest level of care and attention.

Financial Services Whether it be through dealing with one of the big banks, or engaging the services of a boutique financial services company, every business and franchise will need to be in contact with financial services at some point. This issue of Business Franchise Magazine has showcased a number of quality financial advisors and brokers, with a wide range of service offerings and expertise to suit every business.

Cashflow It Cashflow It are alternative lenders and specialists funders to the franchise sector. They offer numerous funding solutions for your franchise business with lending options including rentals, leasing and business loans. With a simple and transparent application process, Cashflow It can help franchisees fund equipment whilst retaining their hard earned capital. Get in touch with Cashflow It today, the franchise finance experts.

Simplicity Loans & Advisory After seeing a need for improved advice, support and expertise in the brokerage and property advisory industry, the directors of Simplicity Loans decided to combine their 34 years of lending experience to create an organisation that could provide superior knowledge and service to a wide range of customers. Simplicity is a boutique brokerage and property advisory business located in two locations across Sydney; one office space on Castlereagh St in the CBD and an office north of the city in Pymble. The team at Simplicity Loan’s ultimate aim is to help their clients achieve their financial goals, ensuring the delivery of high quality advice and outcomes. Simplicity will always work in the best interests of their clients, supporting the alignment of all parties to a common goal.

Interface Financial Group

“Good legal advice is vital for businesses, and thankfully there are some fantastic lawyers in Australia and New Zealand ready to assist business big and small with their legal requirements.”

52 Business Franchise Australia and New Zealand

With roots reaching back to 1972, The Interface Financial Group (IFG) has carved out a special place for itself in the commercial finance market. Serving the needs of small and medium-sized businesses, IFG has grown from the ‘one office/one location’ environment into a multinational organization now covering eight countries on four continents. IFG provides a cash flow acceleration service for their clients. In today’s environment clients invariably find that they are at the mercy of their customer when it comes to their cash flow, as it is

their customer who controls the payment cycle and hence their business. The Interface approach allows for invoices to be turned into immediate cash once the goods have been delivered or the services performed.

Vital Business Services Other services vital to the smooth running and success of a business include: • Graphic Design • Cleaners • IT Services • Printing • Marketing • And many more!

one of the largest third-party logistics, communication services, marketing and printing networks in the world. Not only is MBE a business service provider, they are also a global franchise - currently seeking franchise partners across Australia and the world! In August 2018, MBE Australia is celebrating the 25th Anniversary of the first ever Mail Boxes Etc. centre in Australia. Since then, MBE has been servicing Australians through centres in Brisbane, Gold Coast, Canberra, Perth, Sydney and Melbourne. MBE Australia proudly services businesses big and small, as well as private customers. MBE really is a one-stop-shop, providing services ranging from: • copying and printing

Mail Boxes Etc.

• private mailbox services

This issue’s Feature Cover showcases the services of Mail Boxes Etc. (MBE),

• mail forwarding and redirection • mail and parcel notification • direct mail programs • virtual office services • telephone answering services Enjoy the Business Services Feature in this issue of Business Franchise Magazine! We hope it helps you find the perfect support services to assist you in the everyday running of your business, in order for you to achieve and maintain success.

Look out for our next special feature:

food & beverage franchises

Business Franchise Australia and New Zealand 53

FE ATUR E : busi n ess serv ices

“Whether it be through dealing with one of the big banks, or engaging the services of a boutique financial services company, every business and franchise will need to be in contact with financial services at some point.”

FE ATUR E : busi n ess serv ices

pr o file : s implicity Loans and A dv isory

Finance Your Franchise

with Simplicity Loans & Advisory After seeing a need for improved advice, support and expertise in the brokerage and property advisory industry, the directors of Simplicity Loans & Advisory decided to combine their 34 years of lending experience to create an organisation that could provide superior knowledge and service to a wide range of customers. Simplicity is a boutique brokerage and property advisory business located in two locations across Sydney; one office space on Castlereagh St in the CBD and an office north of the city in Pymble. The team at Simplicity’s ultimate aim is to help their clients achieve their financial goals, ensuring the delivery of high quality advice and outcomes. Simplicity will always work in the best interests of their clients, supporting the alignment of all parties to a common goal. Obtaining finance for buying a franchise can often be difficult, as many lenders hesitate to fund new franchises. The lending managers at Simplicity are experienced in securing franchise funding. They have established strong relationships with a large number of reputable lenders, offering tailor-made franchise financing packages that can help your investment succeed. Simplicity understand what lenders are looking for and can assist in presenting your loan application in order to maximise your chances of getting approval for financing. The team at Simplicity can assist you in obtaining finance for any type of franchise, and this is supported by a wealth of experience with many major franchises, including but not limited to; McDonalds • Oporto’s • Pandora • Jax • Crust • Dominos • Pizza Hut • 7 Eleven • Zeus • BP • Subway Simplicity is heavily invested in providing tailored assistance to commercial and self-employed consumers, maintaining the utmost regard for both their commercial and personal requirements. Simplicity pride themselves on providing assistance and support from day one of the finance application all the way through the life of the loan. The team at Simplicity can be considered small but mighty, consisting of nine dedicated and enthusiastic members ranging from experienced senior commercial bankers to innovative and progressive university graduates. The team at Simplicity is seen as a major differentiation point from their competitors. In addition to having increased ability to turn over deals quickly and efficiently, they are able to cover all aspects of finance, from large scale commercial and construction facilities to small business loans to personal and equipment finance. Not only do Simplicity have these capabilities, they have team members

54 Business Franchise Australia and New Zealand

who specialise in each of these areas, providing more knowledgeable and personalised advice and exceptional customer service to their clients. The extensive knowledge base and support at Simplicity allows the team to cater to any need that arises, whether it be commercial property debt, franchise financing, cash flow lending or property development loans. Since Simplicity’s inception in August 2017, the company has grown to a level that demonstrates performance scope well beyond its size. Acknowledging that you can’t be everything to everyone, Simplicity was set up to meet the needs of mid-tier and corporate clients with all aspects of lending and advisory. Having settled $150 million in the first 10 months of the business, the directors believe they have the right people in the right positions. Simplicity has provided amazing client outcomes and customer service, which will continue to exceed expectations as deals and revenue continue to grow. Simplicity’s success until now has been built purely on referrals and word of mouth from their broad network of professionals, a real testament to their level of service. If you would like to talk to someone about your finance options or obtaining a franchise loan, do not hesitate to get in contact with the knowledgeable and helpful team at Simplicity Loans & Advisory! franchising@simplicity.net.au 1300 022 022

Business Franchise Australia and New Zealand 55

FE ATUR E : busi n ess serv ices

h av e yo ur say: Cashflow I t

Considering Alternative Finance Companies with Alternative finance companies have been experiencing steady growth in demand in recent years. With the integrity of Australiaâ&#x20AC;&#x2122;s largest banking institutions being called into question, many have been led to ask where the future of the finance industry is heading.

Consumer trust in the big banks has faltered, due to a lack of transparency and seemingly little care for those they service. As a result, Australiaâ&#x20AC;&#x2122;s growing number of entrepreneurial ventures and small businesses are turning elsewhere to secure their financing, often struggling to meet the ever changing lending requirements of traditional institutions. The outcome of this has seen the Australian alternative finance market rise to be the second largest in the Asia Pacific Region.

Challenges In Gaining Bank Funding The ability of small and medium enterprises (SMEs), including franchises ability to access funding has been a major factor affecting

their growth for many years now. Often they struggle to meet the strict criteria laid out by banks, as these institutions are built to meet the needs of large businesses, failing to accommodate the varied needs of SMEs and the franchise sector. Other barriers faced by those trying to obtain finance from banks include complex application procedures, slow assessment processes and high collateral requirements. This is often due to the biased negative perception surrounding the risks of SMEs, and as a result many start-ups and new franchisees canâ&#x20AC;&#x2122;t even get their foot in the door. As the challenges associated with traditional lending institutions are placed in the spotlight, the benefits of choosing alternative finance lenders have become clearer. With the concept of alternative finance gaining traction amongst consumers, the industry has seen an 130 per cent increase in demand in the second half of 2017 alone, according to Equifax.

What Is Fuelling The Rise In Alternative Finance Despite still representing only a small cross-section of the lending options available to consumers, businesses are increasingly considering alternative finance as a viable option, with a 69 per cent growth in commercial demand according to Equifax. Breaking this down into industries we can see that retail trade entities represent

56 Business Franchise Australia and New Zealand

the largest segment of enquiries at 21per cent, with other notable sectors including construction, accommodation & food services and manufacturing. The shift in the industry is mostly thanks to the high rates of adoption amongst SMEs, with Equifax finding that they accounted for 98.8 per cent of alternative finance in enquiries in 2017. The reason behind why more businesses are making the change comes down to their overall experience with the lender. 90 per cent of those surveyed in the Banjo Small Business Finance Survey stated that they preferred their experience with alternative finance lenders to that of banks. Studies by Equifax also found that millennials represent 62 per cent of alternative finance enquiries, suggesting that young consumers, likely seeking their first loan, are turning away from traditional lenders. Interesting, research also showed that new businesses (between 1-9 years) are showing higher demand compared to their more established counterparts. With new businesses and millennial consumers showing the highest rates of adoption, these trends suggest that alternative providers could become the norm in coming years.

Benefits Of Choosing Alternative Lenders With numerous barriers standing between many small businesses and access to finance through banks, it is no surprise that they are seeking other options. For many this option is an alternative finance provider, as they are offering something the banks just can’t match.

There are a broad range of benefits associated with using a specialist finance company. For industries such as franchising, a lender that offers a tailored solution to meet the specific needs of a franchise business offers a wealth of advantages. Such niche lending solutions are praised for their transparency and flexibility, often allowing businesses to access capital faster with more flexibility and at an earlier stage in their growth lifecycle. Alternative finance lenders also boast lower costs and more manageable repayments, doing away with the complex application processes that often rule out banks as an option for franchisees and startup businesses.

What Is Required To Successfully Get Finance The in’s and out’s and what is actually required to successfully gain access to finance can be the downfall of many applications no matter the lender. Not having a comprehensive understanding of exactly what lenders want to see can impact a franchisee’s chances of securing finance. Gathering the key information that proves the viability of the business is vital in submitting a successful application. As for exactly what this information is, the requirements can different depending on the lender. As a general rule, most applications will require some of the following: Forms of ID, Business Plan, Personal Asset & Liability Statement, Financial Statements & Projections, Personal or Company Tax Returns, along with the completion of the lenders application form.

Whether applying to a traditional lender such as a bank, or an alternative finance provider, it is important that franchisees ensure the information given is accurate and up to date. The business plan could be considered one of the most important documents within an application. Often brushed off by business owners, this document is an opportunity for them to sell the business idea and outline exactly why the business is going to be successful. This comprehensive plan should cover topics including the business’s goals, the market position, marketing strategies, the management team and financial information. To gain a solid understanding of the application process, businesses should consider how lenders assess each application. A common set of principles used is the ‘5 C’s of Credit’. This model outlines nine areas that lenders will look into when reviewing the application: Character, Capacity, Capital, Collateral and Conditions. All of which contribute to the success of a business owner securing the finance they need. Gaining access to finance from traditional lenders often means franchisees have to jump through hoops, only to find they don’t meet the strict requirements. Hence it is no surprise that many business owners are turning to alternative finance lenders. The ability of such lenders to provide innovative solutions and embrace what works for the client is driving the industry’s success. If the banks continue to falter in the eyes of consumers, alternative lenders could become the preferred option in future years. Cashflow It are alternative lenders and specialists funders to the franchise sector. They offer numerous funding solutions for your franchise business with lending options including rentals, leasing and business loans. With a simple and transparent application process, Cashflow It can help franchisees fund equipment whilst retaining their hard earned capital. Get in touch with Cashflow It today, the franchise finance experts. 1300 659 676 www.cashflowit.com.au

Business Franchise Australia and New Zealand 57

FE ATUR E : busi n ess serv ices

“With numerous barriers standing between many small businesses and access to finance through banks, it is no surprise that they are seeking other options.”

FE ATUR E : busi n ess serv ices

e x pert adv i c e

DON’T GET CAUGHT OUT BY THE RENEWAL PROCESS Most Franchise Agreements are for fixed terms. This fact is often overlooked by excited franchisees going into a new business venture.

“Most franchise agreements specify requirements that the franchisee must meet in order for its franchise agreement to be renewed.”

Franchise agreements “do not run for infinity and beyond” and the renewal or extension of a franchise agreement is not always a given.

franchise to the franchisee the new franchise will be on the franchisor’s then current terms which could be significantly different to the franchisee’s existing terms.

Some franchise agreements only provide for a fixed initial term with no right of renewal. Others provide for a fixed initial term with one option or a number of options to renew.

That said, even in the case where the franchisee has an option or a number of options to renew, renewal of the franchise agreement is not guaranteed. Most franchise agreements specify requirements that the franchisee must meet in order for its franchise agreement to be renewed.

In the case of fixed term franchise agreements with no options to renew, the franchisee will essentially be at the mercy of the franchisor at the expiry of the initial term. The franchisor will be under no obligation to renew the franchise agreement. If the franchisor agrees to grant a new

Renewal Requirements The typical conditions or requirements to the renewal of a franchise agreement where the

58 Business Franchise Australia and New Zealand

Franchisee has an option to renew include: 1. exercising the option within a specific timeframe, for example, not earlier than 12 months before and not later than six months before the expiry date. It is important that franchisees note these dates because failure to meet the timeframes can have fatal consequences – the franchisor may not agree to renew the franchise agreement; 2. payment of a renewal fee. This may be the equivalent of the upfront fee payable by new franchisees coming into the network. Franchisees should budget to pay this fee right from the outset;

Raynia Theodore | Principal, Corporate Advisory & Franchising Team MST Lawyers

3. possible upgrade of the business premises and equipment where the franchise is conducted from static premises. Again, franchisees should budget for this financial outlay from the outset and also review the premises lease to determine the frequency of upgrades that may be required by the landlord; 4. the remedy of any breaches of the franchise agreement; 5. the signing a new franchise agreement. In many cases the franchisee is required to sign the franchisor’s franchise agreement current at the time of the renewal. The franchisee should request a copy of this agreement before it has to exercise any option to renew. This agreement may contain different terms, including different financial terms. If the financial terms of the new franchise agreement are more onerous, the business may be less profitable and worth less if the franchisee wants to sell. The above are not an exhaustive list of the requirements for the renewal of a franchise agreement but they represent the most common requirements. If they are not met the Franchisor will not be obliged to renew the franchise agreement.

Code Requirements: In the case of franchise agreements that are for longer than a six month term, franchisors are required, under the Franchising Code of Conduct (“the Code”), to inform Franchisees whether or not they will extend the franchise agreement or enter into a new franchise agreement. The term extend is defined in the Code and, in the context of an extension of the term of a franchise agreement, occurs when the period of the franchise agreement is extended other than because of an option exercisable by the franchisee. The notice must be given at least six months before the end of term of the franchise agreement. If the franchise agreement is for a term of less than six months, the notice period is reduced to one month before the end of the term. Is a franchisor proposes to renew or extend the term or scope of a franchise agreement,

the franchisor must provide the franchisee with its current disclosure document, a copy of the Code and the franchise agreement in the form in which it is to be executed at least 14 days prior to the renewal or extension of the franchise agreement. This will be too late to enable a franchisee to conduct due diligence in order to make a reasonably informed decision on whether or not to accept a renewal or extension of the franchise agreement. Where the franchisee has an option to renew the franchise agreement this time period will be well outside the time period within which the franchisee must exercise its option to renew. Under the Code franchisees have the right to request a copy of the franchisor’s current disclosure document once in a 12 month period and franchisors are obliged to provide a copy of their current disclosure document within 14 days of a request being made by a Franchisee. We recommend franchisees request a copy of the franchisor’s current disclosure document and franchise agreement at the time the franchisee is considering a renewal or extension of the franchise agreement. Once the disclosure document and franchise agreement are received the franchisee should examine them carefully, in particular, the terms of the franchise agreement to ascertain whether any of the terms of the franchise agreement have changed. Franchisees should also seek legal advice in respect of the documents and where a franchisee has an option to renew the legal advice that should be sought should include advice as to whether the franchisor can change any of the terms of the franchise agreement and require the franchisee to enter into a new form of franchise agreement or whether the franchisor must renew the franchise agreement on the same terms.

Ensuring Renewal: What can franchisees do to ensure the renewal or extension of their franchise agreement? 1. attempt to negotiate one or more options to renew the franchise agreement.

2. where the franchise agreement contains an option or options to renew, take a note of the option dates to minimise the risk that the dates may be missed and any right to renew lost. 3. comply with the terms of the franchise agreement. 4. not leave the renewal or extension process to the last minute. Franchisees should start discussions with the franchisor early. If the discussions start early the decision to renew or extend can be made well before the expiry date of the franchise agreement and avoid the uncertainty and lack of security created for both parties when a franchise agreement expires with no agreement having been reached.

Points to Remember: Franchisees must always remember: • they do not own the brand and the systems - they are only given permission to use the brand and systems for a finite period of time - either an initial term or an initial term with a prospect of renewal for a further term or series of further terms; • were it not for the franchise agreement, they would not be allowed to use the brand and the systems; and • when the franchise agreement comes to an end, they can no longer use the brand and the systems. Situations can arise where a Franchisee, through hard work, effort and toil, can build up a business worth many times the initial outlay, only to face the possibility of that value evaporating when the franchise agreement comes to an end and is not renewed or extended. At that point, the Franchisee’s only assets are the tangible assets used in the business, such as the plant and equipment. It is important that Franchisees not only seek appropriate legal advice at the outset but also financial advice to ensure the duration of the franchise agreement gives them sufficient time to make a return on their investment. MST Lawyers has over 25 years’ experience in franchising, representing clients throughout Australia and internationally in a variety of industries. Written by Raynia Theodore, Principal, in the Corporate Advisory and Franchising Team at MST Lawyers, please contact the Corporate Advisory and Franchising Team for assistance or further information. +61 3 8540 0242 +61 3 8540 0202 www.mst.com.au

Business Franchise Australia and New Zealand 59

FE ATUR E : busi n ess serv ices

“Some franchise agreements only provide for a fixed initial term with no right of renewal. Others provide for a fixed initial term with one option or a number of options to renew.”

FE ATUR E : busi n ess serv ices

pr o file : H A R M O N i Q

“Juggling 28 franchise locations, our systems were holding us back. We were constantly missing out on sales opportunities. And we needed something easier to use, that could adapt as our business grew.” - Andrew O’Brien, Business Systems Manager, Amber Tiles.

NEW FRANCHISE-TUNING SOFTWARE POSITIONS AMBER TILES FOR ANOTHER 40+ YEARS OF GROWTH A quiet achiever in Australian franchising explains how upgrading their Business Management Platform fuelled their continued success. Franchisor Snapshot

speed. And even experienced users weren’t taking advantage of many of the existing system’s features – it was just too complex.

don’t have a marketing department. Now we’re giving them the ability to access this capability themselves.”

Plus, if outlet numbers were to keep growing, Amber Tiles knew they’d simply need more robust, efficient infrastructure and better operational support for their stores.

“What really struck me about HARMONiQ was how customisable it was,” O’Brien continues, “we could easily simplify it, include or exclude features, all based on our specific franchisor requirements. And its scalability is also going to be a real asset.”

Why Amber Tiles chose HARMONiQ

• 28 stores in NSW, QLD and ACT

Improving customer communications, franchisee relationships and overall staff productivity across multiple franchising locations is no easy feat.

• Huge, diverse inventory

The new software needed to address:

• Variable pricing by region

• Inbuilt marketing capabilities, allowing regular, segmented, personal communication with customers

• Leading tile & pavers retailer • Founded 1973

• Thousands of trade and consumer buyers 15 years ago, Amber Tiles wrestled control over an expanding franchise operation with the introduction of Micronet Distribution Software. Back then, it made a world of difference to a business with huge inventory and price management demands – and is credited with spurring much of the company’s subsequent growth. 15 years on, however, Amber Tiles saw gaps in their overall systems begin to emerge. “We were losing out on valuable return business,” Amber Tiles Business Systems Manager Andrew O’Brien says. “Repeat trade buyers are gold for our stores. But we had no platform to stay in touch with them regularly. Many franchisees were relying solely on face-to-face contact to nurture these relationships – and that just wasn’t scalable.” O’Brien also saw critical gaps in systems useability. New staff needed significant, costly and time-draining training just to get up to

• An intuitive and user-friendly platform to get staff on board and using it swiftly • Ability to customise, including sophisticated inventory management features built specifically for the unique challenges of a franchise business • Multi-site functionality, communication and visibility • Ability to scale for the growth to come

“HARMONiQ met all of the requirements we set ourselves when we began our search for new software. And it provided a whole lot of additional functionality to boot.” “In addition to integrating inventory management accounting and business intelligence capabilities,” O’Brien explains, “HARMONiQ also included the ability to stay in touch with our customers in a far easier way. Most of our franchisees

60 Business Franchise Australia and New Zealand

How’s it going so far? All Amber Tiles stores are now successfully up and running on HARMONiQ. And the benefits have been significant from even the earliest days. “Staff immediately found it easier to pick up and run with,” O’Brien reports. “And we’re getting real efficiencies from its multi-site functionality. Now we’re able to communicate, and trade electronically, with all our franchisees. Plus, we’re evolving our communications strategies to take advantage of its marketing automation tools.”

Any last advice? O’Brien cautions that it takes serious commitment to get the result you want from implementation of a highly developed platform like HARMONiQ. “If you want a product off the shelf, you get what you pay for,” he says. “But if you’re prepared to put in the effort and resources with HARMONiQ, it can make a huge difference for your users – and that’s where we’re getting the most benefit.” For full details or a no-obligation demonstration of HARMONiQ, call us on 02 9542 2000 or visit www.franchising.software/demo to schedule a demo with one of our franchising experts.

MAKE YOUR BUSINESS MORE STREAMLINED, PERSONAL & POWERFUL HARMONiQ - the breakthrough all-in-one ERP system tailored to your franchiseâ&#x20AC;&#x2122;s unique needs

SEE HARMONIQ IN ACTION GET YOUR FREE DEMO TODAY Simple. Powerful. Easy to use. And unbelievably flexible. HARMONiQ is the first in its category that can be truly personalised to the way you want your franchise business to operate and your people to work together. (Not to mention offering the fastest customisation times in the industry.) It offers all the features a franchisor needs to fine tune business performance - in a single, scaleable system that can grow as you grow.

SEE

Business intelligence and reporting Inventory and warehouse management Stock control Workflow automation Retail POS Integrated eMarketing Accounting Customer Relationship Management

IN ACTION

Call 02 9542 2000 to book your free demo, or visit www.franchising.software/demo to learn more about how HARMONiQ helps you do business better.

FE ATUR E : busi n ess serv ices

e x pert adv i c e

Are you buying a small business or a franchise business?

What’s the real difference?

To say Australia is a smallbusiness economy is somewhat underselling the real impact small business has as an employer, exporter, importer and service provider. In the last financial year, Australian Bureau of Statistics data shows there were well over 2.2 million actively trading businesses in Australia – an increase of 3.1 per cent on the previous year. With an estimated 95 per cent of these businesses being classified as small

businesses, there is little doubt there is tough competition for just about any new business to find the right customers in a crowded marketplace. This is before consideration of regulatory, legal, financial and logistical issues involved with running a business.

The risk of going it alone Every small business owner takes on a big risk in ‘going it alone’ but the numbers indicate plenty are willing to take on the many challenges posed by small business ownership. And the risks are considerable, particularly financial. Small business ownership can be sold as glitz and glamour when in reality, you will

be the first in and the last one to leave. Are you prepared to put in these hours? Are you willing to nourish your asset and evolve with it?

The benefits of the franchising model Franchising is another method many small business owners have used in the hope of minimising some risk. There is a lot to like about the franchising model. Buying into a franchise enables instant brand recognition, an established framework to draw upon, a head office team to support the franchisee with regulatory issues like industrial relations, and a community of like-minded people to lean on, and learn from. These are all wins. They can certainly help a new business stand out from the crowd and hit the ground running, but it is vital that buying a franchise system is not seen by franchisees as a ‘mission accomplished.’ Simply purchasing a franchise does not give the franchisee the right to be a business owner. This must be earned. And like anything in life that is earned, it is hard work. Buying into a franchise system is buying into a world of small business ownership and with that, any franchisee must embrace the entrepreneurial spirit and hustle to go on the journey with the franchisor.

“How are you going to do the ‘little things’ right – how are you going to strip back the business and build it around you and the needs of your customers?”

62 Business Franchise Australia and New Zealand

FE ATUR E : busi n ess serv ices

How are you going to do the ‘little things’ right – how are you going to strip back the business and build it around you and the needs of your customers? Franchisees must also embrace the leadership of owning a business – the impact their decision has on others and the opportunity to empower their employees and their local communities. A new franchisee needs to invest in their employees and build up trust as an employer of excellence to attract and retain skilled and enthusiastic employees who can be trusted with the business.

The co-pilot, not the passenger Unlike catching a bus where the driver does all the driving and navigation, and the passenger can tune out with a book, and find themselves at their destination, buying into a franchise system is like being a co-pilot of a plane. They are an active participant in the journey – helping to steer the business alongside the franchisor in order to achieve mutual success. While the franchisor will provide a lot of groundwork, for example, some recognition in the market, tools, templates and head office support, the franchisee still needs to do all the same things any small business owner does in order to stand out. Have you clearly identified your goals and objectives with your team prior to purchasing the franchise? “Relying upon a head office marketing strategy was also not sufficient to maintain or increase sales, we had to focus on training and self-assessment to ensure that our customer service levels were adequate with the ever changing expectations of our customers.” - Angus Christian, Helloworld Travel Franchisee

Simply having a well-known restaurant, professional service or consumer product will not automatically endear a new franchisee to the community. Investing in local marketing initiatives is vital to ensure a new franchisee’s venture is known in the area. Customers must not only trust the franchise brand, but their local franchisee. This means ensuring consistency but also going the ‘extra mile’ and not just cruising on the brand value of the franchise system. While many new marketing initiatives may be driven by head office, a franchisee needs to be constantly driving their innovation through their own business to ensure they are providing good customer experience.

“Simply having a well-known restaurant, professional service or consumer product will not automatically endear a new franchisee to the community.” Are you ready to take the next step? Ultimately, what is the main reason you want to become a business owner? Is it the the prestige the desire for income, or is there a driving passion for entrepreneurship, innovation and leadership? “Become involved in a business that you are passionate about. You are going to be at work for long periods of time when your business first starts. So, you may as well love what you are doing!”

the ins and outs of their business, but importantly enjoying the journey, both the risks and the rewards. “I understand buying a proven system in a franchise gives me a head-start to running a profitable business, however there is absolutely no expectation that the doors open and profit enters the front door without super hard work and effort.” - Ashlee Kelly, Listen To Your Body Franchisee

The desire for leadership and the need for life-long learning

FC Business Solutions is the only integrated consultancy focused exclusively on the franchise community. Our team of professionals has been providing specialised and expert services to franchises for many years.

With more than two million small businesses in Australia, sadly not all will succeed. While buying into a franchise system does mitigate some of the risk, it needs to be acknowledged that owning a business is a privilege.

The FC Business Solutions team are actively involved members of the Franchise Council of Australia regularly attending events, participating in committees and assisting in raising the profile of franchising in Australia.

It is a privilege to build something greater than one’s self – to build a team and empower people and a community.

FC Business Solutions is a business which has proudly been certified in accordance with the internationally recognised ISO 9001: 2008 management system which focuses our business on delivering a consistent level of quality to our clients defined by regularly reviewed processes and procedures.

- Paul Ferraro, Autobarn Franchisee

Are you prepared to educate, motivate and empower everyone that you cross paths with? As Simon Sinkek says, “leadership is an education and the best leaders think of themselves as the students, not the teachers.” In holding this true, business owners can become business leaders as they learn and

hello@fcbs.com.au (03) 9533 0028 www.fcbs.com.au

Business Franchise Australia and New Zealand 63

FE ATUR E : busi n ess serv ices

pr o file : T he I nterface Financial G ro u p

Tried, tested &

ready to go! With roots reaching back to 1972, The Interface Financial Group (IFG) has carved out a special place for itself in the commercial finance market. Serving the needs of small and mediumsized businesses, IFG has grown from the ‘one office/one location’ environment into a multi-national organization now covering eight countries on four continents. The founder of the company, Mr. John Sheehy, had a simple approach to business when he started in 1972 – that approach being, to provide a service that his clients needed and to provide it in as timely a fashion as possible. Over 45 years later IFG continues to focus on that mentality and approach – servicing clients in a timeframe that was not possible in 1972 but now, with the advent of extensive integrated technology, the service timeframe has been drastically reduced. IFG provides a cash flow acceleration service for their clients. In today’s environment clients invariably find that they are at the mercy of their customer when it comes to their cash flow, as it is their customer who controls the payment cycle and hence their business. The Interface approach allows for invoices to be turned into immediate cash once the goods have been delivered or the services performed. Giving clients the option to place a portion of their business on a ‘cash-on-delivery’ basis enables exponential growth for their clients. This form of financing is categorised as invoice discounting and while it may fall under the umbrella of the factoring financial service family, it is a unique and distinctive stand-alone service. Banks have traditionally been the provider of capital for business growth throughout the country, something that has existed for many

decades. However, there is now a noticeable shift in that role, with banks being less favorably disposed to a lending relationship with their SME customer base. Obviously, this is not a satisfactory situation for those businesses, however the fact that there are alternatives creates not only an opportunity for Interface but a viable growth pipeline for emerging businesses. Where a company’s needs cannot be met by their conventional funder, then an immediate opportunity is created for the Interface service.

very realistic and viable opportunity. IFG, having been in business for over 45 years, brings extensive expertise and history to the table for all franchisees. The extensive technology component in the franchise also provides an unparalleled opportunity for both franchisees and clients to grow their respective businesses.

Not only is the Interface service distinct in terms of performance time, it is also distinct in terms of delivery methods. Interface is organised on a franchise basis. This approach enables the organisation to have an extensive geographical reach into the marketplace through their franchisees. Working with franchisees also provides a high level of local due diligence in assessing funding opportunities and again reducing the overall time from ‘application to funding’.

The advent of technology in the Interface organization has enabled them to craft a franchise that is now basically paperless. Franchisees are no longer in the form filling business, and their efforts are very much concentrated on the ‘people’ aspects of running and building their business. For individuals who see themselves as ‘people’ people with a strong business background, then the Interface opportunity may be a ‘must review ‘opportunity. Working only in the business-to-business marketplace and only core business hours without extensive travel, and in a home-based environment with no inventory and employees to invest in, the Interface franchise is very much a work smart and not work hard opportunity.

For individuals looking to own their own business and an opportunity to enter the entrepreneurial marketplace, a white collar professional franchise such as IFG offers a

For more information: ifg@interfacefinancial.com www.interfacefinancial.com.au/franchise

64 Business Franchise Australia and New Zealand

Office Expense.

2IÃ&#x20AC;FH H[SHQVH Advertising to Purchase. $GYHUWLVLQJ WR 3XUFKDVH Employees. (PSOR\HHV Stock to Purchase & Warehouse 6WRFN WR 3XUFKDVH :DUHKRXVH 60+ Hour Weeks. 2IÃ&#x20AC;FH H[SHQVH +RXU :HHNV $GYHUWLVLQJ WR 3XUFKDVH (PSOR\HHV 6WRFN WR 3XUFKDVH :DUHKRXVH +RXU :HHNV

For more information: ifg@interfacefinancial.com www.interfacefinancial.com.au/franchise

FE ATUR E : busi n ess serv ices

e x pert adv i c e

THE IMPORTANCE OF MAKING A PROFIT

Entering into a franchise agreement may be the best business decision you ever make.

Equally important, any business, be it an SME, franchise or large corporation should aim to make an adequate profit return after market value wages to owners and maximise the return on capital investment should it decide to sell the business.

However, it’s important to look at its longterm potential rather than seeing it as a trade-off of hard earned money and/or going into debt in return for a lifestyle with a modestly paying job, warns Andy Graham, Managing Partner – Brisbane and Director, Business Advisory, RSM Australia.

Busy treading water?

Whether it’s against their better judgement or not, one thing many franchise operators don’t do every pay cycle is draw down a ‘market value wage’, along with any staff they employ. But as important as receiving a regular wage is, that’s only one of three imperatives that any successful franchise operator should expect from their business.

While Franchisors are relatively upfront about what it’s going to cost to get you into their systems, you should ensure that they also tell you what a good profit looks like. Whether you’re new to running a business, or have been doing it for decades, it’s critical to recognise that being frantically busy doesn’t necessarily mean you’re making a profit. Similarly, it’s important to realise that profit isn’t just the money received from customers for the goods you sell. The profit is simply what’s left after revenue from business activity exceeds the expenses

66 Business Franchise Australia and New Zealand

needed to keep the business going or to put in another way; profit = total revenue – total expenses. This may sound like business 101, and too pedantry to mention. But the sad reality is that too many franchisees struggle with becoming and remaining profitable. Just as your household can’t go on forever without you pulling a wage, no franchise is sustainable if it doesn’t turn a positive net profit. It’s profit that allows you to continually reinvest in your business, and will go a long way to helping you secure financing from a lender or attract investors to fund future operations or growth and expansion plans.

Understanding your financial position There is a myriad of reasons as to why you might be making a loss and the sooner you can get to the bottom of it, the better.

Andrew Graham | Managing Partner - Brisbane and Director, Business Advisory | RSM Australia

Royal Commission is a gamechanger If you’re a franchisee who’s struggling to either make and/or maintain profitability, then you need to prepare for the net negative fallout from the recent Royal Commission into banking. Like it or not, it may become even harder for franchisees to get credit as banks become more mindful of operating within increasingly tighter rules being imposed by government and other regulatory bodies, notably APRA and ASIC. With the time it takes banks to make judgement calls on loan applications likely to be considerably longer, franchisees that are used to making swift decisions, may find their ability to capitalise on new opportunities is diminished. Thirdly, assuming you are able to acquire bank funding, the cost of accessing the account facilities and payment services you’ve come to expect are likely to be higher, as bank charges rise in an effort to maintain their profit margins.

If there’s any doubt as to the financial position of your business, at any time, but especially at tax time, then bad accounting could be the root cause of your problems. No franchisee can run their business unless they have a complete financial snapshot of the business in real-time, and cloud-based accounting is an effective way to ensure you achieve this. If one of the reasons you’ve been attracted to a franchisor is the quality of their systems, then bad accounting and access to the financials is unlikely to be an issue for you. However, that doesn’t mean future earnings forecast within the franchisor’s disclosure documents haven’t been overly optimistic. Consequently, franchise fees could be one of your biggest issues if they don’t represent value for money for what you are receiving especially within a down market where the cost of doing business is going up.

like when you’re going through a period of transition or high growth. But given that non-banks – which are not currently controlled by APRA – typically don’t require SMEs/franchisees to jump through as many hoops, it’s equally important to know when they’re likely to do more harm than good. Remember, both bank and non-bank lenders have useful tools that are freely available on-line from the comfort of your own office. However, when trawling through the burgeoning number of online lending opportunities aimed at SME operators, make sure you know who you’re really dealing with and their connections to other financial entities.

Five tell-tale signs of an unprofitable franchise 1. The business is not a sound financial proposition.

Then there’s the very real possibility that interest rates may go up, even before the RBA begins a new rate rise cycle, as banks respond to pressures from both the Royal Commission and what’s happening offshore, notably the US.

Understand your options The good news is that there is now a growing plethora of alternative funding sources available to franchisees. Step one is to make sense of all the options available in the SME finance space. These include unsecured finance from non-bank lenders, new Fintechtype organisations, foreign lenders, through to crowdfunding, private equity, factoring, peer-to-peer lending, and governmentbacked mortgage securitisation schemes. The next step is to understand how each of these different funding options work. Half the battle is knowing what stages of your business’s life-cycle might complement faster and more flexible non-bank lending options,

In other words, you’ve been sold a pup and the money you will need to make to cover overheads such as rent, wages, cost of goods, utilities and loan repayments is simply unrealistic. Admittedly, all franchise owners work hard, but if sacrificing your marriage and family life has become a permanent lifestyle then you need to honestly assess whether this is sustainable long-term.

2. Difficulty in accessing financial data.

Many franchise operations come with financial reporting software that franchise owners must use. Owners should be able to get access to real-time financial information to track their income and expenses.

3. Lack of qualified, dedicated people to handle the books.

Unlike many other areas of the franchise, bookkeepers don’t require certification and its commonplace for businesses to rely on a family member, someone on

Business Franchise Australia and New Zealand 67

FE ATUR E : busi n ess serv ices

“While Franchisors are relatively upfront about what it’s going to cost to get you into their systems, you should ensure that they also tell you what a good profit looks like.”

FE ATUR E : busi n ess serv ices

e x pert adv i c e

contract or also juggling other duties, to perform this role. Whilst bookkeeping principles are fairly similar, each franchise will have its own quirks and the bookkeeper will need to be across the different financial reporting technologies that would best suit that franchise. It’s important for business owners to work with their accountants and bookkeeper and take an ‘active interest’ in the financial date produced – not just have an eye on the balance in the bank account. 4. Unreasonable franchise costs.

All franchisees have franchise fees payable, which typically cover marketing costs and administration fees. Franchisees need to understand the fees that they are paying, and what they get for those fees. They need to make sure they get value for money and use the services provided by their franchisor.

5. Poor franchisor purchasing agreements.

It is common in franchise business structures, for franchisors to negotiate deals with suppliers, and then on-sell inventory items to the franchisees. Franchisees need to regularly review these costs to ensure that the amounts

“The profit is simply what’s left after revenue from business activity exceeds the expenses needed to keep the business going or to put in another way; profit = total revenue – total expenses.” paid for their stock is better than if they source the same items themselves from other suppliers. Notwithstanding most franchise agreements will likely require the franchisee to purchase exclusively from the franchisor. Andy is a Director of Business Advisory and Managing Partner of the Brisbane Office. Andy has just completed a six year term as the National Head of Business Advisory. He is now a member of the firm’s National Executive Board which oversees the firm’s national management structures and strategy. As a natural communicator with high level problem solving skills, Andrew works closely with his clients to deliver results and outcomes that make a real difference to their business and personal goals.

68 Business Franchise Australia and New Zealand

Andy is an obsessively client focused commercial and tax adviser with a proven record of strategy development and managing growth to deliver substantial improvements to businesses. Having grown into one of Australia’s leading professional services firms over the last ninety five years, RSM Australia is committed to enabling clients through a greater understanding of what matters most to their business. In addition to local knowledge provided by their advisers in 30 offices across Australia, RSM Australia draws on their international reach and scale to ensure clients stay at the forefront of the world’s best practices, technology and innovation within a rapidly changing global economy. (07) 3225 7800 andy.graham@rsm.com.au www.rsm.global/australia

WANT TO STAY ON TOP OF THE LATEST NEWS AND WHAT’S HAPPENING AT THE FOREFRONT OF FRANCHISING?

Franchise BUSINESS

AU S TR A LI A A N D N E W Z E A L A N D

SUBSCRIBE TO Business Franchise Australia and New Zealand’s newsletter and receive all the latest franchising news delivered straight to your inbox, every week!

To subscribe visit: www.businessfranchiseaustralia.com.au

eR F x pert A N CHISE a dv PIC i c e KS

FEATURED Franchise

BK’s Takeaway BK’s Takeaway offers a great selection of ready-to-go hot food and dine-in options and is also the home of the famous Brendan Burger – one of Victoria’s top 5 burgers*. This makes BK’s Takeaway the perfect place to stop, stretch your legs and refuel your belly, when on a long drive through regional Victoria. Although BK’s Takeaway is one of Australia’s newest franchises, the original store was born 15 years ago, in the rural town of Trafalgar in the heart of Victoria’s Gippsland region. Since then, BK’s Takeaway has grown to various locations across Victoria’s regional hubs providing great Aussie food and friendly country service to both locals and visitors. After great success with our brand we are excited to bring it into the Metro areas of Australia.

FocalPoint The FocalPoint Opportunity: You can own your own training, coaching and consulting business using the exclusive Brian Tracy learning materials. You will receive full training and ongoing support and will have access to the FocalPoint professional development and business coaching resources. The FocalPoint systems, training methods and processes have been developed from 30 years of research and are well-proven, offering you a complete package with instant market credibility. The best part is that you can leverage your experience, bring your own air to the business and achieve a fast return on investment and time. Your benefits include:

Love our brand? Interested in a franchise opportunity?

• partnership with the world’s leading training organisation, active in 32 countries

We have franchise opportunities available now in various locations across Victoria!

• a suite of premium training programs and exclusive coaching modules on iPad apps

If you want to be your own boss, have a love of food, enjoy working with a diverse group of people, and have the desire to succeed, then we want to hear from you!

• multiple revenue channels—training, coaching, online learning, behavioural assessments • website, CRM program plus all marketing and sales resources • control of your own time and income

Call Tegan Now Phone: 0356332131

Phone: 0418 500 721

Email: admin@bkstakeaway.com.au

Email: aphillips@focalpointintl.com

www.bkstakeaway.com.au

www.focalpointcoaching.com

70 Business Franchise Australia and New Zealand

FEATURED Franchise

Manafry® Mobile Filtration Services Manafry® has been providing deep fryer management services to commercial kitchens for a number of years. Clients include Hotels, Restaurants, Cafes, Resorts, Aged Care facilities, Sporting venues, and Takeaways. We have the only process that genuinely purifies used cooking oils, thereby extending oil life, maintaining good food quality and reducing oil costs through a unique filtration operation on site. The service includes fryer cleaning, changing oils when necessary, and removal of waste oils from the site, a work place gain and labour saving for clients. Manafry® has successful Franchisees on the Sunshine Coast, Brisbane North, Newcastle(2), and Central Coast NSW, Adelaide South and Perth. We have several territories available in an area that spans from the Northern Gold Coast through to Kingscliffe in northern NSW. We are seeking genuine interest from self-starters who wish to build a business future in a thriving area with our help. Manafry provides exclusive territories, full training, sales assistance, filtration equipment, and help with demonstrations in territory. Estimated Investment total: $70000.00 plus the cost of an operational Van.

Enquire to Manafry® Mobile Filtration Services: Phone: 1800637638, Bob Whitlock, Director Email: manafry@bigpond.com www.mobilefiltrationservices.com

BUILD YOUR FUTURE WITH A RETAIL ICON

As one of Australia’s iconic retail brands, with a proud history over the past 70 years, we now 65 stores nationally. Our award winning have 60 franchise model commenced in 1995 and offers a vibrant product range providing you a great platform to start your own successful business in the pool and spa industry.

Our industry knowledge will help you build a strong business, becoming the local pool specialist in your territory and helping you work in a lifestyle environment. Our franchisees benefit from: Our franchisees benefit from:

Our business development and support teams will assist you in building your successful business. We have three exciting franchise models where we are looking for new, motivated and business orientated franchisees for:

Proven marketing marketing and and business business strategies strategies •• Proven

• •

Stores Clark Rubber Retail Stores $420,000 plus GST Starting from $400,000

• •

Shops Clark Pool & Spa Shops Starting from $147,500 plus GST

• •

Unparralled national •• Unparalleled nationaland andlocal localsupport support

Group buying buying power power •• Group •• No No franchise franchise renewal renewal fees fees •• Turnkey Turnkey development development and and set set up up •• Retail Retail brand brand celebrating celebrating 70 70 years years •• Multi Multi Award Award winning winning franchise franchise system system

Clark Clark Rubber Rubber Pool Pool Care Care Service Service Territories Territories Starting from $49,500 plus GST Starting from $49,500 plus

•• Unsurpassed Unsurpassed initial initial training training and and ongoing ongoing support support

If you would like to hear more about franchise opportunities in your area, please contact Dirk Heinert for a confidential discussion on (03) 8727 9999 office or mobile 0400 922 493 or dirk.heinert@clarkrubber.com.au

clarkrubber.com.au

fo c us : C lark R u bber

Join An Award Winning Team with Clark Rubber

Clark Rubber is a recognised Australian Retailer and ‘house hold name’ brand. Having an award winning national franchise network of 60 stores throughout Australia, with two franchise models plus a mobile pool service territory franchise, there are many great opportunities and reasons to join Clark Rubber.

In previous years, Clark Rubber has been recognised as the Franchise Council of Australia’s Franchisor of the year, and in 2003 Clark Rubber CEO Chris Malcolm was inducted into the Franchise Council of Australia’s ‘Hall of Fame’, making Clark Rubber a multiple award-winning business!

The Clark Rubber Commitment Clark Rubber franchisees benefit from a proven franchise system. Not only providing their franchisees with the knowledge and skills they need, but also ensuring that they have tangible business tools and support needed to help them run their business. They are with you every step of the way, whether you are taking over an existing store, starting up a new

location or territory. Clark Rubber provide support in the areas of site selection, lease negotiation, store development and in-store merchandising. Clark Rubber franchisees and their staff benefit from a comprehensive initial and ongoing training program. Covering product knowledge, customer service, retail operational and compliance topics, training is delivered through a combination of individual, group and online programs. Clark Rubber Franchisees will also receive the IT infrastructure required to manage every aspect of their business including stock control, POS, financial reporting and benchmarking. Clark Rubber’s IT helpdesk is on hand to assist their franchisees with any system related issues, keeping the business operating smoothly.

Quality Products Backed by Great Marketing Clark Rubber franchisees enjoy the combined stock buying power that only comes from being part of a large national network. The dedicated merchandise team works closely with suppliers to build product ranges across their key categories of pools, foam and rubber. In addition, the team at Clark Rubber head office source products, develop promotional offers and negotiate terms and pricing. No matter which model a franchisee may choose, they will benefit from the knowledge and expertise relevant to their business. Marketing and advertising are key to the ongoing success of any retail business. At Clark Rubber, each year they invest in brand development and national retail advertising campaigns, across all relevant and current channels, to ensure that they are

“Clark Rubber franchisees enjoy the combined stock buying power that only comes from being part of a large national network.”

72 Business Franchise Australia and New Zealand

“The uniqueness of Clark Rubber stores, with a product range across Pools, foam and rubber, provides a strong market position supported by a well-recognised and reputable brand.”

continuing to drive customers and business to their franchisees. Head office also work closely with all Clark Rubber franchisees to develop and execute effective local area marketing at a local store level.

National Strength, Local Support In addition to the national support team, all Clark Rubber franchisees benefit from the ongoing relationship with a dedicated Regional Sales Manager. Their role is to spend time with the franchisee, in their store, working with them to achieve their goals and provide regular feedback and support on all aspects of store performance. Clark Rubber Franchise Models There are three individual models that make up Clark Rubber, designed to provide flexibility to potential franchisees and markets, whilst capitalising on the strong brand reputation gained over the past 70 years.

Clark Rubber Stores Including a unique product mix of pools, foam and rubber, these stores provide strong customer appeal and income potential across all seasons. Products include modular pools, pool accessories, equipment, rubber matting, extrusions and hoses as well as being Australia’s largest retail supplier of cut foam including an in-store foam cutting service, supported by a great range of Sleepmaker innerspring mattresses and foam mattresses.

Clark Rubber stores also include their own mobile pool van, providing the franchisee with the opportunity to build a strong local market.

Clark Rubber Pool & Spa shops Leveraging the Clark Rubber brand and reputation in pools, the Clark Rubber Pools & Spa franchise model has been developed to allow for a complete focus on pools and spas sales and service. All Clark Rubber’s Pool & Spa franchises operate a pool service van, allowing the franchisee to service their customers through both the store, and at their home. Being a part of the national franchise network, they will also benefit from the great advantages of group buying, marketing and support.

Clark Rubber Pool Care Service Territories Understanding the needs of the pool and spa industry, included as part of the Clark Rubber franchise group is the opportunity to own your own mobile pool service territory. With the ability to market and service your own area, the flexibility to work from home, and the hours that suit you and your customers, this low-entry business model is a great way to run your own business yet with the support of a national brand and franchise network. At Clark Rubber, their commitment to customer service and providing their customers with solutions helps them to differentiate themselves in the market and with their customers. Coupled together with Clark Rubber’s extensive product range, you have

the opportunity to build a strong business and retail destination within your local market. All these franchise models benefit from being a part of a national franchise group. With the initial training program, ongoing support and business development across all areas of the business as outlined above, the national support team is available to assist you in achieving the best results and grow a profitable and successful Clark Rubber business. The national marketing program is developed to help drive traffic and sales for your stores and is to ensure market presence throughout the year, and for all seasons. Products are sourced to ensure the best product mix to meet customer demand and changing trends within the market. Clark Rubber’s online shop is designed to drive business direct to your store. The uniqueness of Clark Rubber stores, with a product range across Pools, foam and rubber, provides a strong market position supported by a well-recognised and reputable brand. Customer service is a key focus – and is a differentiator of Clark Rubber to many of its competitors. With a strong vision for growth now and in the future, including three franchise models in Clark Rubber store, Clark Pool & Spa shop and Clark Pool Care franchise territory, you can choose the opportunity that suits where you want to go. For more information and to enquire about current opportunities, contact Dirk Heinert on: 03 8727 9999 dirk.heinert@clarkrubber.com.au www.clarkrubber.com.au

Business Franchise Australia and New Zealand 73

sna ps h ot: Prote i n X p re s s

Accessible Health and Wellness with

ProteinXpress! ProteinXpress was founded in Australia with a focus on making health and wellness accessible to everybody quickly and conveniently.

Today’s society is more time poor and more health conscious than ever before. This, along with growing trends such as online fitness programs and people’s growing number of health concerns, has provided a gap in the market. Many juice bars and nutrition orientated brands position their smoothies and products as ‘healthy’ when in actual fact they contain more calories than a Big Mac. ProteinXpress recognised the need for a balanced, trusted health product – from this the protein revolution has been born. With 4 stores currently in NSW, ProteinXpress is dedicated to setting a new benchmark in the health market through the power of protein. Studies have shown that protein is beneficial in helping to stabilise blood sugar levels, manage weight by making you feel fuller longer and repair tissue. It is important in helping maintain strong bones and can assist in healthy brain function. The smoothie range provides a balance of quality nutrients containing at least 20g of protein and only real fruit. No ice creams, yogurts, purees or concentrates and never any refined sugars. As well as smoothies, ProteinXpress stock a range of raw treats, protein balls and cubes along with other nutrient rich snacks and beverages. This ensures the product is suitable for a wide variety of people including diabetics, vegans and anyone with any health concerns. It is a product for anyone who is health conscious and wants to make good choices. What makes the product unique is its accessibility to a wide audience through carefully created products. Customers vary from fitness fanatics who want a classic protein hit after their gym session to people who are health conscious or want to lose weight including those who have had weight reduction surgeries and are looking for options within everyday environments. Our overall philosophy is that a busy lifestyle doesn’t have to mean an unhealthy one. ProteinXpress embraces new advancements in the supplement industry through the

74 Business Franchise Australia and New Zealand

production of high quality, flavourful beverages and snacks that don’t compromise on taste. It provides a product that is dynamic and unique that has been created to provide you with the level of nutrients you’ve been promised. All the calorie and sugar counting has been done for you. The overall aim is to provide simple, easy and fast nutrition that can be trusted. We are constantly striving to be innovative and develop new products and offerings. Our culture is based on a simple ethos of putting the customer and their needs at the heart of everything. We’re passionate about what we do and the product we deliver and are looking for like-minded entrepreneurs to become franchisees. With a focus on training, education and product development, franchisees are fully supported and mentored. By joining ProteinXpress you are becoming a part of something truly unique and revolutionary.

ProteinXpress Franchise – A Healthy Business Our Business Success Formula: This is where many independent or stand alone businesses fail – they don’t have the right systems and they don’t have the right plan or support in place to grow the business. Everything we do at ProteinXpress is about making the overall business successful and your individual store successful: from our store design that reflects well our health and fitness brand, to partnering with the best suppliers, to utilising effective marketing, to recruiting and training personnel that share our passion. But most importantly, success starts by giving the customer authentic nutrient rich snacks and drinks that taste great and are affordable. Lastly we make it as easy as possible for you to focus on the things you enjoy in the business (dealing with customers and staff ) by doing for you things that may be outside of your areas of expertise or interest (setting up stores, organising product suppliers and managing high level marketing and social media activity). Our franchise is designed around you – our franchisee. For more information please contact us at: 02 8095 6250 or 02 809 123 20 franchising@proteinxpress.com.au www.proteinxpress.com.au/franchise

Flexible & affordable ﬁnance solutions for your franchise

UPFRONT COST Axsesstoday gives small businesses the ability to get what they need to succeed—without delay, and without touching a cent of their working capital. Because we understand small business, we know your equipment needs can change over time. Be it new equipment, a store ﬁt out, or the purchase of a business or franchise, our innovative and fully tailored funding solutions make it fairer, easier and faster for customers Australia-wide to realise their dreams.

1300 060 108

| franchise@axsesstoday.com.au | www.axsesstoday.com.au Business Franchise Australia and New Zealand 75

e x pert a dv i c e

The six service mindsets to achieve a postive service culture

Many argue that right now, we are more connected than ever before thanks to technology. But at what cost does this hyper-fast connection come? As franchisees, we more often than not, provide products and services to customers without ever having a face-to-face conversation. Our customers type questions or issues into live chat feeds on websites, Facebook Messenger and other online conduits. It’s actually our desire, our need, for speed and convenience that is compromising our customers’ greatest and basic needs as humans: care, kindness and one-on-one attention.

Make it emotional As well as speed, efficiency and consistency, there is a less tangible measure that we talk about and critique when we are served as customers: the emotions that we experience with an employee in the moment of service. Consider the inherent power of a service provider in their relationship with the customer: • An employee will make a customer feel important or will not. • An employee will make an interaction feel personal or will not. • An employee will be 100 per cent attentive to the customer or will not.

“How a customer feels when they interact with your brand relies on how your employee makes them feel, while serving them at the front line.” Jaquie Scammell | Author Creating A Customer Service Mindset

• An employee will give meaning to the customer’s purchase or will not.

your frontline employees that influence your whole organisation’s performance and results.

• An employee will allow the customer to feel connected to your brand or will not.

How customers feel when they interact with your employees determines how they feel about your company itself. This is what determines whether they will be a one-click wonder or a customer for life.

How a customer feels when they interact with your brand relies on how your employee makes them feel, while serving them at the front line. Yes, customers can feel a connection to your brand by watching a great video in store or on your website, or experience your brand when they taste your products; however, it is how they are treated that lingers long after this. Humans have the unique capability, unlike any robot or automated solution, to provide an interpersonal interaction that creates the social bond that we all look for when seeking connection. The real challenge is to, therefore, embrace technology and automation without compromising emotions and customer relationships.

Procedures and steps of service may be great for robots and androids, but it’s the ways in which your service staff act and the emotional connection they create with your customers that will determine your ultimate success. Rather than look at complex customer service strategies and ways to engage your staff, you must look to the most powerful and influential people in your business – you and your frontline employees.

Adopt a service mindset

Win their hearts and minds

So even if everyone in your business is already excellent at what they do, sharpening their behaviours at work will contribute to a service mindset that will give you and your organisation an extra edge.

When it comes to winning the hearts and minds of your customers, it’s the behaviours of

When we are highly tuned in to the people in front of us we start to frame questions

76 Business Franchise Australia and New Zealand

differently, pause before we speak and even start to see things from someone else’s perspective. Small business owners and leaders who operate with a service mindset help build a service culture: a high-performing culture where customer loyalty is constantly increasing. In fact, if we were to replace the word ‘customer’ with ‘humans’, we could say that our goal in business is to create greater loyalty with other humans

Your six service mindsets So the best, simplest and easiest way of developing this successful service culture is to work on your service mindset. This is a continuum of behaviours that impact your employees’ performance, which in turn impacts your customer interactions and loyalty, creating a virtuous circle that enhances your whole business. The six mindsets you need are: 1. Empathy – Practice empathy to create a team of employees who feel understood. Cultivating trust in this way is essential if you have teams who are continually coaching, mentoring, teaching and caring for others.

“When it comes to winning the hearts and minds of your customers, it’s the behaviours of your frontline employees that influence your whole organisation’s performance and results.” 2. Questions – Show sincere interest in your employees as humans to help them grow into their role. Ask the right questions, and you’ll start to encourage your staff to think for themselves and learn the effect of their decisions. 3. Energy – Shift the focus, the energy, onto supporting all employees to deliver great service. What you give attention to, grows. 4. Heart – Trust and appreciate your staff and they’ll have a greater willingness to serve, which automatically increases their discretionary effort. This creates a cumulative advantage for a business. 5. Purpose –Make staff feel valued and that will motivate them further. An engaged workforce interacts with your customers more positively and this creates customer loyalty. 6. Practice – Seek information, develop your people and helping them grow in their working roles. Knowing that you are only as good as your last performance is key to

continual growth and improvement and business longevity. What you need to see is that human capital is just that: a capital investment in your organisation and your brand. When we yield better actions from our employees we will yield better results in our business. When you do this, when you build this service mindset (instead of an automatic one), then and only then, do you start to move the needle in your business and watch you profits soar. Jaquie Scammell is a customer service relations expert. Jaquie works with leaders of large teams who want to influence their staff to love serving customers. She is also the author of the new book, Creating a Customer Service Mindset (Major Street). To find out more about how Jaquie can help your organisation visit www.jaquiescammell.com

Business Franchise Australia and New Zealand 77

PR OFI L E : midas

Midas continue to expand customer service offer! The Midas Automotive Service Centre franchise business continues to evolve its customer service offers, with a new strategic partnership to deliver time-saving, cost effective roadside assistance.

provide same-day turn around for service and maintenance work. Our role in the Support Office team is to help our franchisees fulfil that customer expectation and then delight the customer with added value that reinforces their positive customer service experience.”

“Midas is very excited that our business has partnered with 365 Roadside Assistance, one of Australia’s leading emergency roadside businesses,” stated Mark Geraghty, General Manager of the Midas business.

The “Gold Class” program contacts all Midas customers within 72 hours of completing their service or repair work and asks them to participate in a survey to assess the quality of their experience at their local Midas Service Centre. Midas has been thrilled with the success of the program, but it has highlighted that franchisees have to work extremely hard to build trust and maintain their reputation.

Midas customers now have the option to purchase a roadside assistance package on its own or they can have it included in their service package. The standard six month program includes emergency assistance with flat tyres, flat batteries, fuel and towing. The program also involves assistance in the event of a vehicle accident. The partnership between Midas and 365 Roadside Assistance is another in a series of programs released over the past 12 months to deliver greater customer satisfaction with the Midas Automotive Service Centre brand and its national network of franchised locations. Focus on the customer experience is central to the success of our business explained Mr. Geraghty. “Our franchisees work extremely hard and are under constant time pressure to

The 365 Roadside Assistance program adds even more value to the Midas franchise offer, expanding on the work done to exceed customer expectations. In 2017, Midas launched its “Gold Class” customer retention program.

One of the most successful outcomes of the “Gold Class” follow-up has been the confidence customer’s express being told about the Midas Nationwide Guarantee. Many franchise businesses have trouble offering national support because franchisees have differing views about supporting fellow franchisees. Midas franchisees understand that all customers are vital for total business success and work to ensure support extends beyond geographical boundaries. Customers can have their vehicle serviced at Midas Frankston in Victoria, but, if they are on holidays at the Gold Coast and have a vehicle problem, they can go to Midas Southport.

78 Business Franchise Australia and New Zealand

The Midas Velocity Frequent Flyer partnership has become a cornerstone for the business. Velocity Frequent Flyers get two Velocity points for every $1 they’re invoiced for qualifying services, but that’s not the whole story. Several times a year, Midas offer Velocity Frequent Flyer members the chance to earn extra points that help build the frequent flyer’s account balance. In June 2018, Midas will offer a bonus 6,000 points to any Velocity Frequent Flyer who gets a qualifying service. That’s in addition to the standard points offer. “Velocity are a great business partner! They understand their business very well and they are always looking at ways to unlock more value for their members. Midas get tremendous benefit from being part of the Velocity program, but we’ve only just scratched the surface of what our two businesses can achieve” stated Mr. Geraghty. Through ongoing program evolution focussed on improving every part of the customer experience, Midas has established itself as the national benchmark franchise brand for the Australian automotive aftermarket. As part of the Bapcor business, which also owns Burson, Autobarn and Opposite Lock, Midas enjoys the benefit of being part of a large Australian public company that has enjoyed year-on-year growth and financial success. If you would like to talk more about Midas, contact their Support Office at: (03) 8878 1122. www.midas.com.au

ARE YOU READY TO JUMP INTO THE DRIVER’S SEAT?

JOIN THE WORLD’S LEADING AUTOMOTIVE SERVICE FRANCHISE BRAND

? S A D I M N I O J WHY DEDICATED FIELD SUPPORT

NG NATIONAL MARKETI PRESENCE

YEARS OF OPERATION

OVER 80 LOCATIONS A AROUND AUSTRALI

VELOCITY FREQUEN FLYER PARTNER

DEDICATED SYSTEM SUPPORT

OW!

EN L B A IL A V A E R A S N LOCATIO

MIDAS AUSTRALIA PTY. LTD. FRANCHISING T: (03) 8878 1122 E: franchiseenquiries@midas.com.au midas.com.au Business Franchise Australia and New Zealand 79

sna ps h ot: magnetite

innovative flair brings success Run as a family business with a focus on delivering a unique product and exceptional customer service, Magnetite has grown into a successful franchise. Magnetite was founded out of a backyard double garage by two brothers, Ben and Adrian Lafleur in 1998. Coming from a cold climate in Canada, the brothers understood the need for double glazing. Being perceptive and business minded, the brothers also saw the opportunity to enter the market during the Sydney Airport Noise Insulation project. This project brought with it the need for both thermal insulation and soundproofing. Founder Ben Lafleur was involved with a franchise in Canada and understood what it took to develop a successful franchise system. He took the lead in adapting the Magnetite business model in order to help service states and territories right across Australia! “The focus of the business is to insulate existing buildings and improve the current window and door performance, rather than replace the windows,” Adrian explains, “This gives the business an environmental focus, as not only are we helping to reduce energy use but by utilising the existing window we reduce landfill.” Magnetite’s flagship product involves adding a second, internal layer of glazing to an existing window. This creates a double glazed window system. This innovative flair is what continues to bring Magnetite and all its franchisees success across Australia. “We have also expanded our product range to include secondary aluminum and timber windows,” says Adrian “we now produce weather and acoustic seals, as well as solar control films.” This broad product range, environmental focus and innovative business model has placed Magnetite at the forefront of the retrofit double glazing industry. Franchising began in 2000, and since then Magnetite has expanded to Perth, Adelaide,

Melbourne, Canberra, Wollongong, Sydney, Newcastle, Auckland and also to dealers in Launceston and Central West NSW. Magnetite is actively seeking a franchise partner to join the team in the Brisbane area. When it comes to retrofit double glazing, Magnetite are the industry experts. “We magnetically add a second layer of glazing to the inside of an existing window. This creates an airtight air cavity and a magnetic seal around the window.” Adrian explains. Magnetite retrofit double glazed windows are lightweight and offer perfect clarity. This not only ensures satisfied customers, but also means that as a Magnetite franchisee, you know you are providing a product and service you can be proud of.

The Perfect Fit Adrian described the ideal candidate for a Magnetite franchisee. “Ideally someone who loves working with their hands - possibly and ex tradesperson or someone with residential sales experience who wants to be their own boss.” A new Magnetite franchisee would need to be hands on with the installation in the early days or have a reliable source of labour initially. Magnetite stand out from the competition because they retain the existing windows and simply add a second layer. This saves time,

80 Business Franchise Australia and New Zealand

money, reduces environmental impact, and give the franchisee a quality, reliable product to provide. The magnetic seal allows the panels to be removed easily for cleaning and to let in fresh air, while ensuring an airtight seal. Magnetite have been operating for 20 years, developing a good reputation in the market while gaining extensive experience in overcoming boundaries and solving problems. As a Magnetite franchisee, you will receive initial training as well as ongoing training from head office. Magnetite is passionate about seeing their franchisees succeed and provide the necessary support and training to ensure their success. Over the next 12 months, Magnetite hope to extend their share into the commercial sector. “While 80 per cent of our market is residential, we are starting to gain traction in the high-rise and commercial fit-out area” Adrian says, “this leads to much larger jobs with greater margin. We have been involved in several infrastructure soundproofing projects in both Adelaide and Sydney in the last 12 months, which provide a steady stream of work.” If you are interested in becoming the next Magnetite franchise partner, contact: (02) 9565 4070 adrian@magnetite.com.au

Fifo Capital – the sophisticated Business model for Entrepreneurs and Business leaders It’s still not too late to get a slice of this outstanding $64 billion KPXQKEG ƇPCPEG KPFWUVT[ 9JKNG UQOG OCTMGVU CTG PQY ENQUGF QWV YG JCXG QRRQTVWPKVKGU KP UGXGTCN OCLQT OGVTQRQNKVCP CPF TGIKQP EGPVTGU

In the recently published Australian Top Franchise awards, Fifo Capital was rated in the Top 5 Franchises for the Lifestyle category, as voted by our Franchisees. The network’s performance has been amazing in 2017. Turnover for the year was over $260 million, bringing our total lend to well over $1 billion! We have only scratched the surface of this huge industry and we are now ready to take the business to the next level.

“The decision to join the Fifo franchise has delivered beyond my wildest dreams, I hit the $1 million mark in finance written for my first year!” Mark Edwards – Fifo Franchisee

With potential returns in-excess of 50% annualised per annum, highly secured assets and very low overheads, there is simply no business model that can compare.

“The Fifo Capital business model is fantastic, with minimal effort you can generate high returns, its a great lifestyle business with few overheads.” Jane Lombard – Fifo Franchisee

The key driver behind our success is undoubtedly the people. Our Business Partners provide a highly valued service to the SME community and received a Net Promoter Score (NPS) of +63% from their clients for 2017.

Find out more about this QRRQTVWPKV[

To make your journey easier, we now have an Investor program running providing capital. You can use your own capital or our Investor capital and lend funds using our proven systems and processes.

Andrew Roberts 1300 852 556 I 0438 801 575 www.fifocapital.com.au

Would you prefer just to be an investor? We want to talk to you also!

Business Franchise Australia and New Zealand 81

e x pert a dv i c e

Why we need 100 per cent less meetings

Not all meetings are bad – some get cancelled, as the joke goes. In the modern workplace, two issues consistently top the list of productivity killers.

One is the ever-increasing volumes of email that fills up our inbox and keeps us in the office later than is good for us. The other is meetings. And not just the volume of meetings, but a range of issues that can make meetings an expensive drain on our precious time and productivity. At senior levels, meetings are one of the key ways of getting things done, and keep work moving. But sometimes when we have a hammer, everything looks like a nail. Meetings will always be a part of our working week, but are only one type of activity a manager or leader should allocate time and attention to. As well as meeting time, they also need time alone to ‘do’ their priorities and emails. They should allocate time and space to have more informal discussions with their team, their boss and their key stakeholders. And finally, they should but often don’t, protect time to think. A manager or leader with no time to think risks being reactive and ineffective. Of course, thinking gets done. But often outside of core working hours, which are filled full of meetings, interruptions and issues to be resolved.

“At senior levels, meetings are one of the key ways of getting things done, and keep work moving. But sometimes when we have a hammer, everything looks like a nail. Meetings will always be a part of our working week, but are only one type of activity a manager or leader should allocate time and attention to.” 82 Business Franchise Australia and New Zealand

cent reduction in wasted group time by planning our meetings more effectively, and communicating clear objectives and agendas to the attendees. Maybe if we had more time to do, discuss and think, we would have to space to plan more focused and productive meetings. So, I reckon these all add up to 100 per cent less meetings. This tongue-in-cheek idea can be a great way to get your team on board with making your meeting culture more productive.

“Meetings should be a participation sport, not a spectator sport. If two people are doing all the talking and six are looking on, they are spectators who may not add any value, or really need to be there.” Dermott Crowley | Founder and Director | Adapt Productivity

Don’t overfill your schedule

100 per cent less meetings

Now many factors impact on a manager’s ability to allocate time in a balanced way, but one of the key factors is likely to be too much time allocated to meetings, and not enough time protected for the other activities during the day. I believe most managers need to be more ruthless about how much of their time they give away to meetings. It is not unusual for my senior clients to spend 80 per cent or more of their week in meetings, leaving little time for anything else. Like a kettle with a ‘fill only to here’ mark, our schedules should have a fill mark that we cannot go above!

This is why I firmly believe most organisations should aim for 100 per cent less meetings. Yes, 100 per cent less! Think about it this way - I reckon we could easily have 25 per cent fewer meetings in our week and would probably find that our productivity actually increased. We should also strive for 25 per cent shorter meetings. Most meetings are scheduled for one hour, purely because our calendars have convenient one-hour timeslots. Parkinson’s law suggests that the work will always expend to fill the time available, so one-hour meetings will take an hour, but you could achieve as much in 45 minutes if you were all focused.

But too many meetings are only a part of the issue. Many of the meetings we attend go for too long, have too many people involved, and are not organised or run effectively. These issues make meetings unproductive for all involved, and can impact the productivity of entire teams, divisions or organisations.

We could have 25 per cent less participants in many meetings. Meetings should be a participation sport, not a spectator sport. If two people are doing all the talking and six are looking on, they are spectators who may not add any value, or really need to be there. Finally, we could achieve a 25 per

Meetings, when used properly, are a fantastic tool to collaborate and work with others. But they should be used with care, and with a clear knowledge that they are an expensive way of working for all involved. And while they cost real money in terms of the wages and overheads, the real cost is the opportunity cost that every person in every meeting has to pay. Sydney-based Dermot Crowley is a productivity author, speaker, coach, trainer and thought leader. A 20-year veteran of the productivity training industry, he is the creator of the Smart Work program and is the founder and director of Adapt Productivity. His passion for helping modern executives work more productively with their technology has led him to work with many senior executives and leadership teams in organisations such as the Commonwealth Bank of Australia, Citi, Deloitte, Allens Linklaters and KPMG. He is also the best-selling author of Smart Work (Wiley). www.adaptproductivity.com.au

Business Franchise Australia and New Zealand 83

s h owcase : J im’s P ool Care

Jim’s Pool Care hits 100

and you’re invited to join the party! Jim’ Pool Care is about to triumph an exciting milestone of 100 Franchise Owners. A growing customer demand for home services and a business model that is built around Franchisee goals has allowed for this great success. Jim’s Pool Care Mobile Pool Shops are in all major cities around Australia and are now growing in larger regional centers. The attraction for new franchise owners and an exciting part of the pool industry is the ability to sell ongoing services, retail items and of course charge for your time. Jim’s Pool Care Mobile Shops offer all these income streams. Services include pool cleaning, regular maintenance, pool heating, inspections, lighting, pool blankets, and robotic cleaners.

84 Business Franchise Australia and New Zealand

How do you build a Franchise System to 100 sites? As a key division of the Jim’s Group, Jim’s Pool Care began 14 years ago in Western Australia. Owner and General Manager Brett Blair has seen the franchise chain grow from around 30 to 99 franchisees and 13 Regional Franchisors over his nine years in the role. Mr Blair believes a key success factor has been franchise satisfaction. By offering a system that is easy to follow it allows owners to build a business to suit their lifestyle and goals. Brett says, “The Jim’s Pool Care concept is a true mobile pool shop that not only provides pool maintenance but sells a full and complete range of pool equipment and chemicals. This means our franchisees can charge for their time and earn great margins on lucrative chemical and pool equipment products.” This means you can work smarter and not harder by building long term relationships with customers. Brett told us, “Reflecting on the last nine years and this amazing growth of Jim’s Pool

Care and brand in the market place, I am very proud of the team and the individuals who invested in our business and invested in themselves. Their reward is now they are in a business that has no limits on their growth, they have full flexibility over their lifestyle choices and they are in fact their own boss. It is not easy for any new business to start up and it takes hard work each time, but my team are always here and committed to be part of the journey.”

A Network that Works There are currently over 3800+ franchisees making it one of Australia’s most recognised brands. Jim’s Pool Care encourages the owners to build strong local relationships and to leverage off the other Jim’s Divisions who are also out there every day in customers’ homes and backyards. While each Division has a dedicated marketing team and website, all Jim’s franchisees are encouraged to crosspromote the other 40 divisions, using local area marketing, which is extremely useful to a newly launched franchise. Brett told us, “Jim’s Pool Care has worked hard to develop a strong and supportive culture. The great thing about the Jim’s system is if new franchisees ever need any help, the support team is only a phone call away as we have an amazing network of friendly and helpful franchisees, franchisors and suppliers.” To support our franchisees and encourage continual professional development, we ensure we have regular meetings and training sessions throughout the year. Many of these sessions are delivered by suppliers that educate the Jim’s Pool Care team on the latest equipment, technology and water management processes. This ensures we are able to help customers and deliver the best service.

“To support our franchisees and encourage continual professional development, we ensure we have regular meetings and training sessions throughout the year.” This strong support network is reinforced with an annual franchise convention, where franchisees fly in from all around Australia. The conventions are usually 3 - 4 days where they get to hear from other franchisees, industry experts and sales and motivation coaches, which provide a great opportunity to learn and network with other franchisees. There are some really great stories shared each year at our annual conference, of business success and innovative ideas right around the country.

Opportunities to Earn It is important when looking at a business, consider how many streams of income

are available. With a Jim’s Mobile Pool Shop this includes casual pool servicing, regular maintenance programs, the sale and installation of new pool equipment, and a range of pool accessories. This covers domestic pools, Body Corporates, Hotels and Commercial opportunities. Jim’s Pool Care franchises are now for sale in selected locations across Australia. The price for a new site starts at $69,000 and includes a complete start-up package. From time to time there may be some established re-sale opportunities which can be discussed upon enquiry. Jim’s is committed to new franchisees and their success by offering a Pay for Work Guarantee of $1500 (incl. GST) per week. Conditions apply, but his means if you follow all the systems, and do not meet the weekly guarantee at the end of the month, you can be topped up the difference. Another exciting point of difference is a flat monthly franchise fee is charged, which is not percentage based. This means the harder you work; the more money you can make. This is a really important factor for many of our buyers as they are not hamstrung with increasing fees by growing a large business if they choose.

What does it take? “When looking for a franchisee, we are ideally looking for somebody that is personable and able to build great customer relationships, as we are not only about one- off jobs in pool care, it’s about the ongoing regular maintenance. We are looking for people that are motivated to get into business for

Business Franchise Australia and New Zealand 85

s h owcase : J im’s P ool Care

“There are some really great stories shared each year at our annual conference, of business success and innovative ideas right around the country.”

themselves, have a positive attitude and are able to get out on the road and build their own business with our systems. I am very proud of the team we have built and the service they provide to pool owners around the country.” The recruitment and application process starts with an initial meeting, usually over a coffee and is a discovery phase for both parties. Potential franchisees are then offered a day on the road with an experienced franchisee. Jim’s Group fully believe in being transparent all the way through the process and potential franchisees are encouraged to ask as many questions as they want. After they have been out on the road and experienced for themselves how the business works and if keen to move forward, the next step is to start formalising the application. Part of this process is selecting a territory to build the business. Usually the location is close or near to home to help reduce travel times and to help maximise chargeable hours for the franchisee. It also means that they can pop home if needed or help out with family commitments if they arise.

How can you grow? “We have franchisees from all walks of life including trades, banking, engineering, administrative and existing industry professionals. Our franchisees don’t need to have existing industry skills as Jim’s Pool Care provides comprehensive training; they just need to be willing to try new things, follow the systems we have developed and provide great customer service,” Brett says. This in-house training starts with three days at the Jim’s Group Training Centre in Melbourne. All franchisees, from around the country, fly to Melbourne to meet Jim Penman and to learn more about the Jim’s system and how to become successful in business. The franchisees then go back to their respective cities and states where they complete an on-the-road and face to face pool school training program which lasts approximately 15 days with their local Franchisor and trainer.

To make it easier for new business owners, Jim’s Pool Care have been leveraging the latest technology for many years including digital water testing and cloud based invoicing which help with accuracy and the ability to improve cash flow. This also enables real time business reporting and customer management that can be discussed with their local franchisor. Working with the best brands in the pool industry, including Astral, Zodiac, Maytronics, Daisy and Sunbather, the support that the franchisees receive from the brands with regard to ongoing training and product support is impressive. Franchisees are encouraged to enhance their professional development each year, attend local team meetings and training sessions. Jim’s Pool Care also encourage franchisees to become specialised if they wish in certain pool areas. To help franchisees be the best they can be, all new franchisees are now required to complete the Certificate III &IV Pool Technician course, which is a national accredited qualification. This is provided in conjunction with the in house training completed by Jim’s Pool Care.

86 Business Franchise Australia and New Zealand

“Ongoing training is provided by using a local regional franchisor model. This is perfect for a new business owner. We have someone on the ground in every region that provides the ongoing training and support. Once trained, every month, as a minimum, the regional franchisor will contact the franchisee to provide technical and business support. There are between six - eight local regional meetings a year, which allows all the franchisees in that particular region to get together and share ideas and attend a range of supplier training. This provides our franchisees with a strong support network,” says Brett. A Jim’s Pool Care franchise is a mobile retail business with huge opportunities. This system provides you with the opportunity to work outside, to work your own hours, to be your own boss and to build your business without limit. If you too would like to take control of your future, contact Jim’s Pool Care now on: 131 546 info@jimspoolcare.com.au www.jimspoolcare.com.au

W^ EĂƚŝŽŶĂů &ƌĂŶĐŚŝƐĞ /ŶƐƵƌĂŶĐĞ ƌŽŬĞƌƐ WƚǇ >ƚĚ E͗ ϲϮ ϭϱϭ ϳϳϰ ϲϲϴ ŝƐ ĂŶ ĂƵƚŚŽƌŝƐĞĚ ƌĞƉƌĞƐĞŶƚĂƚŝǀĞ ; Z>E ϭϮϱϲϭϳϬͿ ŽĨ WƌŽĨĞƐƐŝŽŶĂů ^ĞƌǀŝĐĞƐ ŽƌƉŽƌĂƚŝŽŶ WƚǇ >ƚĚ E ϭϭϵ ϴϯϱ ϲϭϭ ; &^> ϯϬϱϰϵϭͿ

Business Franchise Australia and New Zealand 87

PR OFI L E : B egin B right

Begin bright Leading School Readiness and Primary Tutoring franchise, Begin Bright, has centres across New South Wales, Victoria and Queensland. Get to know Franchisee Janelle Dimmock from Begin Bright Hope Island, Queensland. Janelle Dimmock opened Begin Bright Hope Island in October 2017. After positioning her business in a bustling shopping centre, and with attention to detail and commitment, Begin Bright Hope Island has become a busy centre! Janelle has funnelled her various experiences within her 25 years in the education sector, to build a great business that has already had an impact on hundreds of Gold Coast children. Transitioning from the classroom environment into a small business owner has allowed Janelle to focus on what she loves the most; making a difference to children’s education. Although offering a new set of challenges, owning her own business has allowed Janelle to have the flexibility to choose the hours she wants and has given her back the time and energy to give to her family. “My role as an Early Years Support teacher made me realise the necessity of good pre-prep programs to ensure children are equipped to be successful learners once they start school. Working with so many children who were struggling from such a young age to meet the demands of the curriculum made me realise that I wanted to make a difference to support these young learners.” Janelle considered opening her own centre to provide tutoring and school readiness after recognising the need to ensure children are well prepared to start school and seeing the demands on these young children increase each year. Janelle was enticed by the philosophy of the Begin Bright business, and the structure and support that the franchise model offered. In addition, what made Begin Bright such an exciting opportunity was the connection with the parent company; Cognition Education Group. Cognition Education Group built Visible Learningplus, the world renowned professional learning program for educators in collaboration with Professor John Hattie. As a leader and educator, and having trained as a facilitator in Visible Learningplus Janelle was confident in the credibility that a company such as Cognition Education brought to the Begin Bright brand, and assured the validity of the company as 21st Century educators. Utilising various components of the Group, Begin Bright franchisees benefit from infrastructure support, program development and business guidance.

88 Business Franchise Australia and New Zealand

And for Janelle, as they say…the rest is history. Begin Bright franchise sets out a clear business structure, which is ideal for those who are new to owning their own business, whilst offering flexibility to accommodate the new business owners past experiences.

About Begin Bright Founded in 2008, franchised in 2011, growing to over 30 centres over Australia and delivering 84 000 sessions a year, Begin Bright focuses on creating happy, smart and confident children through our School Readiness program and our Primary Tutoring classes. Designed to develop and support children, Begin Bright centres ensure children are given the greatest opportunity to grow into well-rounded, engaged learners, capable of fulfilling their utmost potential. Becoming a Begin Bright Franchisee means joining a team that is focused on helping you deliver great results. At Begin Bright, we combine our passion for children’s education with commercial expertise. If you have: • Passion, commitment, and drive • Strong leadership skills • Good people skills • Entrepreneurial flair and a business mind • An ability to have fun and work with an energetic and vibrant organisation ... enquire now to find out more about joining the Begin Bright Franchisee team. Brighten your future with Begin Bright www.beginbright.com.au/franchise

e ow is n ch ies ! an it le Fr rtun ilab a po av op

JOIN AUSTRALIA’S LEADING SCHOOL READINESS AND PRIMARY TUTORING FRANCHISE

OWN A BEGIN BRIGHT CENTRE IN 5 EASY STEPS: 1. REGISTER ON OUR WEBSITE 2. MEET OUR TEAM 3. SUBMIT AN APPLICATION 4. SECURE YOUR TERRITORY 5. BEGIN YOUR TRAINING

Enquire today: www.beginbright.com.au/franchise

Business Franchise Australia and New Zealand 89

sna ps h ot: deckseal

Join The DeckSeal Team! Since 2007, DeckSeal have been committed to providing Australians with the highest quality timber restoration and preservation services. DeckSeal specialise in the restoration and preservation of all structural timber elements. They undertake a wide range of projects including decking, timber cladding, fences and screens, bench seats, pool boxes, garage doors, planter boxes, doors, window frames, outdoor furniture, high pressure washing and concrete/ paving cleaning and sealing.

AFTER

Exciting New Opportunity DeckSeal now has franchising opportunities in Bayside and Eastern VIC, as well as other territories in Bellarine Peninsula, Western Suburbs, North Suburbs, South Eastern Suburbs, City, Inner Bayside, Bass Coast and regional Victoria. Thanks to booming growth in the market due to time poor consumers, there has been an increasingly high demand for DeckSeal’s services. Deckseal have worked diligently over the years to refine their expertise - sourcing the finest products and establishing simple to follow methods that deliver the most outstanding results for their clients. The team at DeckSeal care about their work, and have very high standards. These high standards are reflected through the countless satisfied DeckSeal customers! As a family owned business, DeckSeal’s reputation and quality is extremely important. They are the industry leaders and the largest deck restoration specialists in Victoria, making them a brand you can rely on.

Join the DeckSeal Family If you think you possess an honest and hardworking nature with a strong work ethic, you could be the perfect fit as a DeckSeal franchisee. DeckSeal are seeking franchisees who are organised and focused on success. Good communication skills and a strong focus on customer service is at the heart of DeckSeal’s business. If you are a positive team player who is looking for a new investment venture and are committed to growing a business for your own or your family’s future, DeckSeal might be the

“DeckSeal specialise in the restoration and preservation of all structural timber elements.”

perfect opportunity for you. Someone who is practical and equipped with basic handyman skills and unafraid of some physical work is the ideal fit for a DeckSeal franchisee.

DeckSeal Support You When joining the DeckSeal family, you are provided with all the training and support to confidently tackle any job. The DeckSeal Franchisee Package is designed to maximise the opportunity for you to build and expand your own successful business - from practical skills to software systems and training manuals, DeckSeal has it covered. On the job training in - quoting and pricing, trade techniques and skills, equipment, tool and product selections, customer service, complete operational and technical manuals and easy to manage software is all provided. Centralised Marketing and sales support is also available.

90 Business Franchise Australia and New Zealand

BEFORE

If this sounds like the perfect franchise opportunity for you, contact DeckSeal on: 1800 332 525 0410 537 164 admin@deckseal.com.au www.deckseal.com.au

“DeckSeal now has franchising opportunities in Bayside and Eastern VIC, as well as other territories in Bellarine Peninsula, Western Suburbs, North Suburbs, South Eastern Suburbs, City, Inner Bayside, Bass Coast and regional Victoria.”

Since

1920 A global leader in tools & franchising

Mobile showroom

Extensive training & support

A proven & established business model

Be In Business With the Best

A market leader for mechanics

Give customers personal service & premium products

Take Our Online Discovery Tour AUS: 1800 810 581 NZ: 0800 441 762

sota.franchise@snapon.com www.snapontools.com.au/franchise

185x135mm Mag Ad - 250117.indd 1

28/01/2018 11:01:53 PM

TO THE 2018

FRANCHISING & BUSINESS OPPORTUNITIES EXPO’S FOR BUSINESS FRANCHISE READERS!

Franchising & Business Opportunities Expo’S 2018: Brisbane: 21-22 July

Brisbane Convention & Exhibition Centre, South Bank

Melbourne: 25-26 August

Melbourne Exhibition Centre, South Wharf

Don’t pay at the door, entry is free for readers by entering the code BFM when purchasing tickets online.

“Grab your ticket now, it’s really time to stop dreaming and start doing!” For more information go to

www.franchisingexpo.com.au Business Franchise Australia and New Zealand 91

e x pert a dv i c e

Finding your Perfect Match –

Trickier than Tinder! Top tips in choosing the franchise that’s right for you!

The cyberage has changed so many of the ways we conduct our life, from ordering groceries to finding Mr or Ms Right. For the big decisions however, most of us use the internet as a research tool. We weigh up what’s available and then we go out and walk-the-walk to make that final choice. Buying a franchise is very much like finding your life partner. Some might say that given franchisees spend an average seven years in a network, it outlasts many romantic partnerships! What can you take from your dating experiences, as you look to tie your fortunes to the franchise network that will fulfil your hopes and dreams for future security? Knowing as much as you can and building trust are obviously key. However, what

“Ask other franchisees about the costs and how long it took them to be profitable, so you figure out how much operating capital you will need to cover your costs until you turn a profit.” Suzanne Jarzabkowska | CEO and Partner | DCS Group

questions do you ask and when? What can you learn about them from others in their circle? When do you meet the folks and how do you keep an open mind while still testing the credibility if it all seems too good to be true? Chemistry is great, but there’s also nothing like some trusted advice and careful planning before you say “I do”. Let’s look at some of the commercial, legal and cultural issues to explore so you can genuinely evaluate whether a franchise is right for you and a good proposition for the future. There is always risk – how do you assess it and how can

92 Business Franchise Australia and New Zealand

you reasonably manage and contain it to best ensure the happiness and success you desire?

But it’s so hard to decide! The statistics always tell a story: marriages fail – and so do businesses. In fact four out of five independent small businesses fail in the first five years and of those, about half of them fail in the first year. Comparatively, approximately one out of five franchise businesses fail in a five year period. Much of this can be attributed to the proven and profitable business model with systems,

a brand, marketing, a reliable supply chain, training and ongoing support. However, simply buying a franchise doesn’t ensure you will be successful. Let’s define what you want, what you’re prepared to commit and how to find and evaluate what’s on offer!

What do I want? Even if most of us only know what we DON’T want! You will be committing your time as well as your money. So number 1: successful, profitable franchisees are owner/operators – not negotiable! A seven day a week business, such as a fast food outlet may require working public holidays and nights. You may need to employ staff or family members and one of the family may be giving up a job to work in the business. A work from home, mobile or a part-time franchise that fits around school children, or a semi-retired lifestyle may have less impact on your life and your family.

How much can I commit? Always the big question! What IS the total commitment required including operating capital to pay rent, staff, utilities, cost of goods, loan repayments, royalties etc, until the business becomes profitable? And factor in interest on loans, your wage and the time it will take to recover your original investment. Can you meet your current commitments like home, car, credit card and still maintain your lifestyle if you buy this franchise? It may take many months to build the business and match your current income. So how much can you really afford? Be realistic about how much you will really need to survive, even if it takes longer to become profitable than you plan.

How does the profile stack up in reality? Okay, you’ve met a few times and this is looking good….maybe this is the one! But how can you tell? Firstly you need a business plan that includes some financial information or a model and trading data - a Profit & Loss statement (P&L) from other franchisees’ and/or corporate stores if possible - so you can to figure out if the business is profitable. You need to know at a very basic level how many goods or services you need to sell or how many clients you need to see each day, and what the average spend would need to be to break even, after meeting all your overheads. Ask the franchisor and speak to other franchisees so you can judge whether the numbers add up for the site you’re considering. The best business concept won’t work if there is not enough traffic to make the sales you need.

You’ll also need a good handle on the operating costs. Very roughly, cost of goods (COGS) and wages should each be around 30 per cent respectively and rent should not be more than about 10 per cent of turnover. But you need to know what is sustainable in the network you are considering. Ask other franchisees about the costs and how long it took them to be profitable, so you figure out how much operating capital you will need to cover your costs until you turn a profit.

How do I figure out if it will last? There’s no answer to this or anything in life you can only evaluate everything you can find out and manage the risks. Calculating your return on investment (ROI) simply put - if the financial information is as close to accurate as you can get, and factoring in interest on loans to fund your franchise, your operating capital and your wages - how long will it take to get back all the money you have invested? A very rough guide to ROI businesses: • under $100K should return the investment in 12-24 months • $180-400K should return the investment in 2.5 to 3.5 years • $500-$850K should return the investment in 4 years+ • over the $1M mark may take 5 or more years But the larger the investment, the larger you would generally expect your annual remuneration. Under $100 may return a $5070K annually whereas a $1.2M business may return $250-400K annually in time. If you can meet the debt, the interest and a living wage in the first year, you should be building a sustainable business. Generally the business should grow more rapidly over the next three-four years and your ROI will be realised as your business matures. You’re aiming to pay down residual debt more quickly from this stage to be debt free in five years. The term of your franchise agreement (and your lease) need to be long enough to get back your initial investment and hopefully build some capital plus the eventual value of the goodwill when you sell. For this reason, it is good to secure an option for second term in your franchise agreement.

It’s often the little things that turn you off The thing that didn’t seem like a deal breaker when you were dating, could be a deal breaker in the long run - so look to the seemingly little things.

a very rough guide to roi businesses: • under $100K should return the investment in 12-24 months • $180-400K should return the investment in 2.5 to 3.5 years • $500-$850K should return the investment in 4 years+ • over the $1M mark may take 5 or more years What to look for: • Is the business seasonal with variation in sales throughout the week or year, or even throughout the day? Knowing this will help you staff the business and determine if there is enough revenue in the busy times to offset the quieter times. • The location of your franchise business is important as there can be a difference between outlets in the same network. Go to the suburb you are considering - work out whether there are enough potential customers and check out your competitors. Examine your franchise agreement to see if you have an exclusive operating or marketing territory. • Fit out costs can lead to a serious fall-out between the franchisor and franchisee. Confirm whether the fit out costs are fixed or if they’re estimates contact the contractors directly to clarify and agree how the fit out and costs will be managed to ensure you have enough money. Blowing the budget during the fit out can seriously impact the operating capital intended to run the business and jeopardise your success. • Leases - check the terms and ensure your franchise agreement and lease terms line up.

Can I “try before I buy”? Yes, but only a taste! It’s very important to check out the Operations Procedures and Training Manuals. They should tell you exactly how to run your business: systems procedures, ongoing support, marketing - by the franchisor, your responsibilities to the franchisor regarding financial reporting, attendance at conferences and minimum performance criteria onboarding, training for you and your staff and whether there may be any additional

Business Franchise Australia and New Zealand 93

e x pert a dv i c e

“Your genuine commitment to the brand will motivate your employees, inspire loyalty from your customers’ and ensure your profitability.”

costs. Your compliance to these manuals may be tied to your franchise agreement so review this in the franchisor’s office if necessary before signing the agreement.

Do your values align, do you want the same things? This is a deal breaker isn’t it? You need to maintain the passion and commitment as this is going to define your life in a large measure for many years to come. Does the business match your experience and skills, are you passionate about the industry, the service and products, do you share the franchisor’s vision and believe in the company’s mission? Your genuine commitment to the brand will motivate your employees, inspire loyalty from your customers’ and ensure your profitability.

The awkward conversation It’s the inevitable conversation that you know will determine the final outcome. The agreement both parties undertake and the pledge they make to each other. The franchise agreement is similar - you may get a mountain of documents, so break them down and examine them page by page. Read every line in every document. Don’t be intimidated by the language - highlight anything that doesn’t make sense or you don’t agree with. Make notes on the side with questions to ask your accountant or lawyer, as you’ll get the best response from your advisors by identifying your concerns.

Looking at the circle of friends and family to get the bigger picture Just like quizzing your potential partner’s friends and family to get some background, you will need to identify relevant business partners to speak to. Research the business on the internet, look up old press releases, go into several outlets and watch how the staff and customers interact. Most importantly, speak to other franchisees about life as a franchisee and what it’s like being part of the network. Mention any concerns, ask them about how responsive the franchisor is and see what independent verification you can get for everything they tell you. Speak with former franchisees and even competitors of the franchise you are considering, to gain as much information as possible.

Meeting the parents! Nerve-wracking, but necessary! Your interview with the franchisor (or recruiters) will be similar. You will answer questions about your background, intentions and ability to run the franchise. But it’s also the perfect opportunity for you to make a good impression and a chance for you to ask the franchisor questions about their business expansion plans. This can include details of training, locations and what expenses may arise. Lastly, understand their vision for the brand and identify the culture of the network to see if your values are aligned.

94 Business Franchise Australia and New Zealand

Take trusted advice before taking the big step Under the Franchising Code of Conduct franchisors are required to provide a Statement of Independent Advice to franchisees prior to entering into the franchise agreement advising them to seek legal, business and accounting advice. You wouldn’t buy a house without a building or pest report or a conveyancer/ lawyer to handle the contracts. Buying a franchise is no different – it is simply common sense to pay the relatively small amount to engage professionals to assist and protect you. Be certain to get the commercial and legal advice in writing and try to negotiate a fixed fee for the services. DCS Group CEO and partner, Suzanne Jarzabkowska, heads up the multidisciplinary franchise team at DC Strategy. She has achieved successful outcomes as an entrepreneur in the private sector, in the international NGO sector and in the franchise industry. Suzanne specialises in organisational behaviour, performance and change management, franchise development, risk management and conflict resolution. She writes and presents widely domestically and internationally advising franchise networks, private enterprise, public sector and not-for-profit organisations. suzanne.jarzabkowska@dcstrategy.com

Resources at your fingertips!

CURRENT TITLES INCLUDE: Business FRANCHISE Australia and New Zealand magazine The Magazine for Franchisees, Bi-monthly publication The Australian and New Zealand Business FRANCHISOR magazine The Magazine for Franchisors, Quarterly publication Australian and New Zealand Business FRANCHISE DIRECTORY Annual publication The FRANCHISE GUIDE Annual publication CGBâ&#x20AC;&#x2122;s website also provides an additional advertising and information format and complements our publications.

www.businessfranchiseaustralia.com.au Business Franchise Australia and New Zealand 95

PR OFI L E : FR A N C H I S I N G E X P O

Franchising Expo has the answers

Peddler Café will showcase its new mobile café concept at the Brisbane Franchising Expo in July.

Anyone thinking about owning their own business will find plenty of answers to all their questions at the Franchising Expo, to be held in Brisbane this July and in Melbourne in August. “In light of recent publicity about franchisors who aren’t doing the right thing by their franchisees, it’s more important than ever to meet the people behind the brands, ask the hard questions and talk to franchisees as well,” says Exhibition Manager Fiona Stacey. “It’s a matter of finding the right people to help you on your journey – be they franchisors, lawyers, consultants, accountants or other advisors. All those people are available at the Expo, and more than willing to answer all your questions.” Stacey adds that entering a franchise agreement is a serious business, and it should not be undertaken lightly. “It is crucial that you do extensive research on any franchise

you are looking at,” she says. “The Franchising Expo is a great place to start, or dig deeper into a concept you’re considering.”

In addition to meeting the people behind the brands, visitors find great benefits in attending the free seminars.

The Melbourne Franchising & Business Opportunities Expo in August is traditionally the biggest of the year, and will once again be a highlight of the Victorian Small Business Festival. Meanwhile there will be plenty of buzz in Brisbane this July, with new concepts to see and motivating presentations from seminar speakers.

Stacey confirms that Jim Penman from Jim’s Group will give a keynote ‘Every customer a raving fan’ at both the Brisbane and Melbourne Franchising Expos. “Visitors simply must see this presentation,” she says. “It’s a great insight into an Aussie icon and what makes his franchise group such a success.”

New franchise concepts at the Brisbane Franchising Expo include the mobile Peddler Café, Simply Bond Cleaning, and Healthy Inspirations’ weight loss support franchise; while unique wellness centre OsteoStrong and Harness Training health and safety training will be introducing their brands at both the Melbourne and Brisbane events. Well-established franchise brands can also be found at both shows, including Poolwerx, Aussie, Clark Rubber, Jim’s Group, MBE and more. Subway, which made its Australian debut at the Franchising Expo in the 1990s, will be showcasing its new ‘Fresh Forward’ design.

96 Business Franchise Australia and New Zealand

For more information and a seminar program, go to www.franchisingexpo.com.au. If you are interested in exhibiting, contact Fiona Stacey on 03 9999 5464 or email Fiona@specialisedevents.com.au

Special reader offer: Register for FREE at franchisingexpo.com.au with promo code BFM. Save $20!

Want to be your own boss? Learn how to get into your own business

franchising & business expo opportunities FREE sem inars

MEET the e

xhibitors

E FRE ice adv

Sydney 17-18 March Perth 6 May Brisbane 21-22 July Melbourne 25-26 August Get your free ticket online using code BFM franchisingexpo.com.au

ENDORSED BY

Business Franchise Australia and New Zealand 97

h ot topi c s

Behind the

headlines Franchise inquiry receives almost 100 submissions More than 60 submissions to the latest inquiry into the Australian franchise sector have been uploaded to the inquiry website so far, with more expected to be added in the near future. Submissions are uploaded to the inquiry website as they are received and processed by the inquiry committee and secretariat. Submissions be redacted in some cases, and submissions received in confidence may not be uploaded to the website altogether. A breakdown of the submissions uploaded to date indicate that current or former franchisees are the single largest group of submitters, accounting for around 32 per cent all submissions, followed by about half that number of franchisors at 16 per cent of submissions. Business groups such as the Franchise Council of Australia and others, government agencies at state and federal level,

and consultants to the franchise sector have lodged submissions in roughly equal numbers, accounting in total for just over 40 per cent of total submissions. Various smaller groups have also lodged submissions including law firms and legal groups, academics, and one trade union.

The greatest diversity in submission responses lies with the other groups of submitters, including the Australian Competition and Consumer Commission (ACCC – see story below), who range from recommending no changes to substantial changes to the Franchising Code. Public hearings are expected to be conducted by the inquiry committee ahead of a reporting deadline of September 30.

Franchisee submissions generally convey personal stories of loss and attribute blame to the franchisor for low sales, high rents, excessive fit-out costs, rebates, increased competition, poor marketing, and poor support; but rarely include specific recommendations or address the inquiry’s terms of reference. Several highly critical media reports have been generated recently based on claims made in franchisee submissions.

Australian announced as interim Subway global CEO

Franchisor submissions generally focus more on the terms of reference, and claim that the Franchising Code is operating well and requires little - if any - change.

Chief business development officer, Trevor Haynes began his Subway career in Australia as a field support manager in south-east Queensland in the mid 2000’s, and has held

98 Business Franchise Australia and New Zealand

A former Queensland area manager for international fast food chain Subway has been announced as the company’s acting global CEO.

a number of senior roles in the brand around the world before being appointed interim CEO of the world’s largest restaurant chain on 2 May 2018.

10. Amend the Oil Code to align with relevant rights and obligations under the Franchising Code of Conduct.

Haynes is based at Subway’s corporate headquarters in the United States, and will oversee the day-to-day operations of the company until it appoints a permanent CEO. Outgoing CEO, Suzanne Greco, will officially retire on June 30 2018, after working for Subway for 45 years in various roles.

Starbucks signs $9.48 billion deal to sell branded coffee

ACCC recommends significant changes to Franchising Code

In what is considered a win-win situation by both parties, Starbucks will increase brand recognition outside of North America and Europe and can focus on developing its retail business, while Nestle is buying immediate scale in North America, a market in which it has always struggled. It also affords Nestle expansion opportunities worldwide by leveraging the Starbucks brand. Starbucks’ coffee and food products generate annual sales of USD$2 billion.

The Australian Competition and Consumer Commission (ACCC) has made 10 significant recommendations to the Franchising Code of Conduct, the Oil Code, or its governing law, according to its submission on the inquiry website. The ACCC is the government agency responsible for administering both the Franchising and Oil Codes, and its inquiry submission could be quite influential. The recommendations are: 1. To include financial penalties for all breaches of both the Franchising Code and Oil Code. (Financial penalties don’t apply to the Oil Code currently, and only to certain provisions of the Franchising Code); 2. Financial penalties to apply where franchisors don’t comply with notices requiring them to provide information or documents they are required to keep under either Code; 3. Financial penalties to apply where an unfair contract term provision exists in a standard-form contract; 4. That the current financial thresholds that apply for small businesses under unfair contract term protections be raised; 5. The ACCC be given powers to compel franchisors to provide documents to obtain evidence about unfair terms in contracts; 6. Amend the Franchising Code to require franchisors to disclose meaningful information about establishment costs and expenses to potential franchisees; 7. Require franchisors to provide certain financial information on the resale of an existing or previously franchised business;

International coffee giant Starbucks has signed a $9.48 billion deal with Swiss food company Nestle for the perpetual rights to market its coffee and food products, according to a media report.

Meanwhile Starbucks has also announced plans to double its store network in China over the next five years to 6,000 outlets, which will mean opening a new store on average once every 15 hours.

Fourth class action commences against Retail Food Group A fourth class action has commenced against publicly-listed multi-brand franchisor Retail Food Group following the announcement of a new shareholder class action backed by a major litigation funder, according to a media report. Lawyers Phi Finney McDonald claim that investors who bought RFG shares between April 2017 and February 2018 were not informed that RFG’s financial model had material financial risks and that its franchise network was deteriorating. The claim is backed by litigation funder IMF Bentham. RFG’s share price collapsed following a number of adverse media reports about its business from December 2017 to March 2018, and the announcement in March of substantial losses and widespread store closures. RFG is also facing two other shareholder class actions, as well as a class action by its franchisees.

8. Prohibit franchisors from passing on to potential franchisees the legal costs of preparing, negotiating and executing documents;

Melbourne-based delivery platform buys Aussie Farmers Direct assets

9. Amend the Oil Code to include a recordkeeping obligation, and to give notices in writing;

Melbourne-based delivery platform YourGrocer has purchased the brand and database of failed grocery home delivery

Jason Gehrke | Director Franchise Advisory Centre

franchise Aussie Farmers Direct (AFD), according to a media report. YourGrocer, which is not a franchise, has rapidly grown in the Melbourne market, and will leverage AFD’s 100,000-strong customer database to expand into the Sydney market. The business provides customers with access to local butchers, fishmongers, greengrocers, markets and independent online grocery retailers. YourGrocer will also use the AFD brand as a “stamp of quality” on boxes of fruit and vegetables. AFD’s failure has been attributed to a number of issues including poor quality produce and insufficient investment in infrastructure. Administrators wound up AFD in April 2018 after failing to sell the business. Creditors were left $69.2 million out of pocket and 100 franchisees were left without businesses. YourGrocer is looking to hire some former AFD franchisees as part of their delivery team but will not change their business model to a franchise.

US franchisors eager for Aussie expertise A series of workshops held by the Franchise Advisory Centre in Los Angeles in May attracted strong interest from US franchisors. Franchise Advisory Centre director Jason Gehrke conducted four professional development workshops for US franchisors in Los Angeles from May 22-24. The workshops covered establishing franchise advisory councils, franchise recruitment, managing franchisee underperformance, and managing resales of existing outlets. Workshops conducted by the Franchise Advisory Centre recently in New Zealand were again supported by franchise lending specialist Westpac NZ, while the US workshops were endorsed by the International Franchise Association and awarded Certified Franchise Education (CFE) points to all participants. www.franchiseadvice.com.au

Business Franchise Australia and New Zealand 99

pr of ess i ona l s er v i c es l i st i n gs

Level 6, 64 Marine Parade (Po Box 10857) Southport Qld 4215 P 07 5591 2522 F 07 5591 2511 Contact Peter Thelwell E pt@ippartnership.com.au www.ippartnership.com.au A specialist Franchising and Intellectual Property legal and consulting firm, providing comprehensive advice for Franchisors from conception through to recruitment of Franchisees and ongoing management of the franchise. Clients receive expert, cost-effective advice on a collaborative basis with the firm taking great pride in its long term relationships with Franchisors. Expert advice and assistance is also provided to Franchisees buying & selling businesses as well as in relation to disputes.

67 Fitzroy Street Surry Hills NSW 2010 105 Wellington Street St Kilda VIC 3182 59 Doggett Street Newstead QLD 4006 P 1300 544 755 E info@legalvision.com.au https://legalvision.com.au

LegalVision is a market disruptor in the commercial legal services industry. Our innovative business model and custom-built technology allows our lawyers to provide a faster, better quality and more cost-effective client experience. LegalVision is a leader in delivering legal services in Australia and has assisted more than 50,000 businesses and franchises. The firm was awarded New Law Firm of the Year at the 2017 Australian Law Awards, named 2018 Fastest Growing Law Firm in APAC by the Financial Times and recognised as a finalist as 2017 Supplier of the Year at the MYOB FCA Excellence in Franchising Awards. Our experienced lawyers can assist franchisees and franchisors with a breadth of franchising matters. Our services include reviewing and drafting franchise documentation or leases, assisting with selling or buying a franchise and resolving franchising disputes. As a full-service law firm, we can also assist with employment law, intellectual property, disputes and litigation, business structuring and regulatory compliance. If you would like to discuss your franchise matter, contact the LegalVision team today.

fr an chise specialists

Lvl 2 100 Wellington Parade, East Melbourne VIC 3002 P 03 9604 9400 F 03 9419 7735 Contact Robert Toth E robert@mmrb.com.au www.marshmaher.com.au robert toth - 30 YEARS OF FRANCHISE INDUSTRY KNOWLEDGE AND EXPERIENCE. ACTING FOR LOCAL AND INTERNATIONAL FRANCHISES. Members of: Franchise Council of Australia (FCA) International Franchise Lawyers Association (IFLA) Marsh & Maher Richmond Bennison Franchising, Licensing and Distribution Group act for local and overseas companies entering the Australian market and have a network of experienced consultants to assist clients with demographic, feasibility, market research and preparation of business entry plans to ensure the best success for our clients.

100 Business Franchise Australia and New Zealand

Level 2, 129 Melville Parade, Como WA 6152 P 08 9364 9988 Contact John Dorazio E johnd@ww-wa.com.au Wayland WA is an independent firm of www.ww-wa.com.au

Walker Perth based Chartered Accountants and Business Advisors who provides a friendly, efficient and professional service for both developing and established franchises. We can assist you with: • Fixed priced service packages - including all bookkeeping, tax and accounting needs • Due diligence services when you are thinking about buying - or selling • Growth strategies • Marketing fund audits • Business planning and structuring Walker Wayland has offices based in every Australian mainland State and in New Zealand.

don’t miss an issue T H E

T H E

F O R

N E A Z I M A G

RA LIA

W an d NE

ZE AL

F O R

VOL 11

01 VOL 12 ISSUE

& LE GA

L AD VIC

FIN ANC IAL

ADV ICE & LEG AL

F R A N C H I S E E S

G NEWS MEDIA 101 CHISINHTS FRAN OW YOUR RIG FOR FRANCHISEES

LAT EST

NEW S

$6.95 (AUD),

inc. GST.FRA NCH

E ISING FEATUR RETAIL FRANCH RY ISE DIRE CTO

$7.95 (NZ) inc.

GST.

ORY ISE DIR ECT

ICE & LEG AL ADV FINA NCIA L

S LATE ST NEW

FRA NCH

$6.95 (AUD), $7.95 (NZ) inc. GST.

FINANCIAL & LEGAL ADVICE

FRANCHISES IN YOUR PRICE RANGE