JAN/FEB BUSINESS FRANCHISE Australia and New Zealand

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 13 ISSUE 02 jan/feb 2019

AUSTRALIA and NEW ZEALAND

find success with

7-eleven

driving sales with

social media: an expert’s guide

retail special feature

franchising

Putting Your Best Foot Forward For Finance

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b us i n ess f r an c h i s e m ag 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

From the

AUSTR ALIA and NEW ZEAL AND

BUSINESS FRANCHISE AUSTRALIA and new zealand VOLUME 13 ISSUE 2, JAN/FEB 2019

Editor

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 PRODUCTION: Christine Roberts. production@cgbpublishing.com.au ACCOUNTS: accounts@cgbpublishing.com.au GRAPHIC DESIGN: Jejak Graphics - Michelle Quinn jejak@bigpond.com COVER IMAGE: 7-ELEVEN 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

Happy New Year, and welcome to the January/February issue of Business Franchise Australia and New Zealand.

2019 is set to be a fantastic year in franchising, with the many changes that took place throughout 2018 paving the way for a bright and positive year ahead.

7-Eleven feature on the cover of our January/February issue, with a great cover story all about the successes of franchisee, Mandeep Singh. The transition from a 7-Eleven corporate store manager to a 7-Eleven franchise partner provided Mandeep with increased flexibility and control, and he and his family have continued to find success with 7-Eleven.

The feature for this issue of Business Franchise Australia and New Zealand is retail franchising, and we have some great profiles and expert advice articles to inform you about all the happenings in this thriving industry within the franchising sector.

In this issue, FC Business Solutions have written an insightful article on how retailers can win back customers to brick and mortar stores â&#x20AC;&#x201C; unsurprisingly, the answer is digital. The National Retail Association take a look at the impact of the Vulnerable Workers Act on franchisor/ franchisee relations one year on, along with profiles from Clark Rubber, BoConcept, The Lott and many more!

As usual, you will find the latest news, best industry profiles and most informative expert advice articles from experts in franchising throughout the pages of the latest issue of Business Franchise Australia and New Zealand.

Enjoy our January/February 2019 issue!

Meaghan Galindo Editor

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 5 9:08 AM

contents

january/february 2019 On the Cover 12

Cover Story: Find Success with 7-Eleven

40 Special Feature: Retail Franchising 52 Driving Sales with Social Media: An Expertâ&#x20AC;&#x2122;s Guide

12

In Every Issue 8

16

66

Whatâ&#x20AC;&#x2122;s New! Announcements from the Industry

14

The FCA Farewells Bruce Billson

40

Feature Editorial: Retail Franchising An Industry on the Rise

82

Hot Topics: Behind the Headlines

86

Professional Services Listings

88

Listings

91

A-Z Directory

Franchise Council of Australia

Jason Gehrke, Franchise Advisory Centre

Profile 74

70

Franchising Expo: Fact Finding Face to Face

Franchising Community 68 A Life of Franchising: Q&A with Jim Ainsworth

Focus Feature

76

20 Fresh Juice Vending: A Unique Australian

Franchise Opportunity

also in this issue: Appliance Tagging Services. ...................... 79, 91

Expert Advice

Battery World................................................................91 Begin Bright...................................................................91

16 The Case for Mandatory Registration of Franchise Systems Stephen Giles | Norton Rose Fulbright

22

Why Expert Advice is Crucial

Books and Gifts Direct........................................... 92 BK’s Takeaway.............................................................91 Cashflow It........................................................................ 4

Rostom Manookian | DC Strategy Lawyers

Crema Espresso........................................................ 92

24 The Impact of the Vulnerable Workers Act on

Franchisor-Franchisee Relations Alex Millman and Linsday Corroll, | NRA Legal

DeckSeal. ....................................................................... 92 Ecomist............................................................................ 93

28 Putting Your Best Foot Forward for Finance James Scurr | Cashflow It

Fasta Pasta.................................................................... 93 FranGlobal. .................................................................... 80

30 5 New Year’s Money Management Resolutions John Corias | M.A.S Accountants

FC Business Solutions............................................ 15 Gecko Sports............................................................... 93

62 Important Industry Information Explained DC Strategy

Harmoniq........................................................................ 86

64 How to Get your Story Idea to the Local Reporter Pete Burdon | Franchise Media Training

InXpress. ......................................................................... 94

Hog’s Australia.......................................................3, 94

Jim’s Pool Care........................................................... 94

66 Workplace Safety Legislation and Franchisors Carlie Holt | Sparke Helmore Lawyers

Just Cuts Australia.................................................... 94

70 Local Area Marketing: What’s Working Now and What Isn’t Yvette Sholdas | Remarkable Franchises

Just Cuts New Zealand......................................... 94

76 Stronger Investigative Powers Mean Better Protection

for Franchisees Louise Wolf | MST Lawyers

Jejak Graphics. ............................................................87

IP Partnership.............................................................. 86

Laser Clinics Australia.................................. 95, 100 Listen to Your Body.................................................. 95 Luxaflex.................................................................... 45, 95 Legal Vision................................................................... 86 Magnetite Windows. ................................................ 95 Marsh & Maher Richmond Bennison Lawyers........................................................................... 86 Midas Australia............................................................ 95 NonoShield.................................................................... 96 National Franchise Insurance Brokers...........27 Ryco 24•7....................................................................... 96 Snap Printing................................................................ 96 Snap-on Tools..................................................... 65, 96 Spray Pave Australia.................................................97 The Interface Financial Group.............................97

58

Theobroma, Chocolate, Lounges, Paviliions, Bars.............................................................97 Thermawood.................................................................97

what’snew!

ANYTIME FITNESS LAUNCHES NEW GYM DESIGN Vibrant colours and superior features will enhance customer experience “From the very beginning, Anytime Fitness has been driven by a strong determination to help more people improve their health with fitness. Not only have we made fitness more accessible by bringing the 24-hour gym model to life, but our welcoming and inclusive culture builds communities. We’re committed to ensuring everyone who steps through our doors feels welcome and confident,” said Arthur McColl, CEO of Collective Wellness Group, the parent company of Anytime Fitness Australia. “Our new design concept embraces and enhances the favourite features of our existing gyms, identified by our current members, such as top-of-the line equipment, larger free weight areas, and private changing rooms. We’ve focused on creating an environment where members feel empowered, not intimidated, to get over the hurdles of improving their health.”

Anytime Fitness, Australia’s largest gym chain and the world’s fastest-growing fitness centre for 10 consecutive years, has unveiled new interior design plans for its gyms across the country.

Designed to create a welcoming and personable customer experience via vibrant colour schemes and efficient, inviting layouts, the first gym in Australia featuring the new design is located in Ripley, Queensland.

The new design is flexible, efficient and adaptable to many configurations. It was developed with the aim of a global and consistent roll-out, providing the same user experience and brand recognition in every Anytime Fitness club. The new design is being progressively rolled out across Australia in both new clubs and those going through refresh.

Visit https://www.anytimefitness.com.au for more details.

QUEST CELEBRATES 30th ANNIVERSARY AND OUTSTANDING FRANCHISEES AT 2018 GALA Quest Apartment Hotels celebrated its 30th anniversary and the outstanding performance of its franchisees at its annual Gala Dinner at the National Gallery of Victoria.

The team at Quest Bundoora had a successful night, taking home the night’s top prize, the National Franchise of the Year, and the Regional Franchise of the Year for Victoria and Tasmania.

The Franchise of the Year Awards recognises superior guest service standards, business performance and the franchise’s excellent demonstration of company values at the regional and national levels.

Quest Executive Chairman Paul Constantinou said the award recognises the franchisees’ professionalism and commitment to running one of Quest’s most successful and profitable franchises.

“Quest Bundoora continues to deliver the premium home-away-fromhome experience expected by our guests, a reputation that Quest has maintained since its inception thirty years ago. I congratulate Mark O’Shea and the team at Quest Bundoora for their hard work and dedication and wish them another successful year,” Mr Constantinou said.

Paul Goldsmith was inducted into the Hall of Fame which acknowledges outstanding contribution and commitment to the Quest network. Mr Goldmith started his journey at Quest more than twenty years ago as a financial controller. Since purchasing his first franchise in Melbourne’s eastern suburbs, Mr Goldsmith has owned seven Quest franchises with current holdings in Glen Waverly and Notting Hill.

8 Business Franchise Australia and New Zealand

Bianca Tachdjian from Quest Ivanhoe received the highly coveted Chairman’s Award. Ms Bianca Tachdjian was personally selected by the Chairman from a highly competitive pool of individuals representing onehundred-and-thirty Quest franchises across Australia. Mr Constantinou said the award recognises Ms Tachdjian’s outstanding service. https://www.questapartments.com.au/

BANSAL GROUP OPENS BACK TO BACK CARL’S JR. LOCATIONS IN HOPE ISLAND AND ROTHWELL

Franchise Council welcomes $2b boost for SME loans The Franchise Council of Australia has welcomed the Federal Government’s response to calls from business and lenders to act to underpin availability of credit for cash-starved small to medium businesses (SMEs).

Carl’s Jr. brought Christmas early to Hope Island and Rothwell residents with the opening of its fifth and sixth freestanding drive-thru locations in Queensland in December last year.

Carl’s Jr. Queensland franchisor, the Bansal Group, is continuing its expansion into the fast-growing Hope Island and Rothwell communities, following successful launches in Redbank Plains, Pimpama, West Ipswich and Eagleby earlier this year.

Pimpama has been the most successful launch to date for the Bansal Group, so the franchisor is excited to give Gold Coast residents another nearby location to satisfy their Carl’s Jr. cravings.

The new Carl’s Jr. is located in Hope Island Marketplace, a $65m cutting-edge retail development on the intersection of Broadwater Ave and Mervyn Drive. The marketplace answers consumer demand from the rapidly-expanding Hope Island area and is positioned to be a community hub with Woolworths, Aldi, a medical centre, and 36 specialty retail outlets within the space.

And after multiple locations to the south, the Bansal Group is finally giving Brisbane’s north side a Carl’s Jr. in the growing area of Rothwell.

Carl’s Jr. will set up shop in the coastal community in the new Rothwell Village Development on the corner of Deception Bay Road and Morris Road.

The Bansal Group has earmarked at least another 15 restaurants for Queensland with Slacks Creek set to open January 2019, and locations in Logan Hyperdome, Burpengary, Berrinba, Townsville, Toowoomba and Rockhampton later in the year.

The Hope Island and Rothwell Grand Openings will be on December 6 and 13 at 8.30am. The Bansal Group is beefing up the deal for the first 50 people through the door at each location, who will win vouchers to eat free for a whole year!

For more information on CKE franchise opportunities, please visit www.ckefranchise.com

“The Government’s new small business funding policy recognises that it has become increasingly harder for small businesses to obtain finance other than on a secured basis, typically, against their main personal assert – their home, and costs are higher than they should be”, says FCA CEO Mary Aldred.

“We understand that the new government fund will underpin SME loans issued by smaller banks and non-bank lenders, boosting funding to lend to small businesses and potentially lowering SME borrowing costs” says Ms Aldred.

“It’s always been a challenge for small business to access debt finance, but the situation has worsened as the banking Royal Commission has waved the big stick of stricter lending laws and loan serviceability rules,” says Ms Aldred.

“Franchising mainly comprises small businesses which make a major contributor to the Australia economy – there are 1,200+ different franchise systems, over 80,000 franchised businesses and more than 500,000 people employed in the sector across urban, rural and regional Australia. We want to see them grow and succeed and a transition from credit squeeze to credit crunch would have severe impact” says Ms Aldred.

“The FCA has been greatly concerned that any extension of the consumer responsible lending regime into SME lending could have significant negative impact in a sector already struggling in a tight market environment.”

“The FCA believes that potentially vulnerable customers should be protected without restricting finance to customers who can afford it” says Ms Aldred.

“Small business is increasingly being squeezed on a number of fronts.

This includes escalating energy costs, compressed margins, a complex industrial relations framework and availability of finance,” says Ms Aldred. “We don’t want to see a slowing of investment from the sector because that will have adverse implications for economic growth and jobs,” she added. https://www.franchise.org.au/

Business Franchise Australia and New Zealand 9

what’snew!

New kid on the block: Guzman y Gomez launches healthy fast food for kids that won’t break the bank Juans for guilt-free dinner or lunch because Little G’s kids’ meals have no artificial colours or flavours — it’s all real food, made fresh daily with high-quality ingredients.

The new kids’ menu is low in sugar, a source of fibre & protein with no artificial colours or flavours Holy Burrito! Mums and dads of Australia can rejoice because Guzman y Gomez just launched a brand new kids’ menu and meal deals for only $8.90.

Finally, Aussie parents can take their little

away the fry pan parents, the Ground Beef is gold and we haven’t met a kid who doesn’t love it yet).

The launch of Little G’s is the latest move

by GYG in its mission to reinvent fast food.

Following months of careful menu design and innovation, busy parents can now feed their children delicious, healthy and authentic Mexican food that’s low in sugar, on-the-go.

Who said fast food had to be bad food!

Presented in a fun-filled meal box featuring traditional Mexican artwork, Little G’s also includes a surprise that will make the kids want to show you their ‘street side’ with an exclusive range of custom-designed temporary tattoos for the little Juans to get creative and express themselves. Steven Marks, Global CEO, Founder of Guzman y Gomez said:

Mums and dads won’t have to choose between eating somewhere they love and keeping the kids happy — a win/win for the whole family.

“We’ve spent a long time getting the Little G’s meal perfect and I know it’s going to be a hit with both kids and their parents.”

Packed with fibre and protein, Little G’s comes with a choice of a Little G Burrito, two quesadillas or Kids Nachos, served with skinon preservative free fries or carrot discs and a water — all for just $8.90.

The Little G’s meal range is designed for burrito lovers aged 3-8 years old and is perfect for a post-sport feed, birthdays, or if you’re just looking for a nutritious option to satisfy hungry mouths on the weekend. Whatever the occasion, GYG has got your back!

The Little G Burrito and Kids Nachos are served with GYG’s new filling — Ground Beef (Aussies call it “Mince”) made from a traditional Mexican recipe, passed down through the family of Guzman y Gomez Head of Menu Innovation, Cindy Flores (put

Little G’s is available from today, so get the whole family down to your nearest GYG where there’s something for everyone. https://www.guzmanygomez.com/

Soul Origin soars with the Manly Warringah Sea Eagles Soul Origin has launched an exciting new partnership with the Manly Warringah Sea Eagles which will help promote the brand nationally via the powerful NRL audience.

Soul Origin CEO, Mr Chris Mavris joined Sea Eagles players Dylan Walker, Kane Elgey and Rueben Garrick to launch the partnership which sees Soul Origin as the Club’s new front of shorts sponsor.

Since opening their first store in 2011, Soul Origin has grown rapidly to 107 stores across the country, serving a wide range of delicious and wholesome breakfast and lunch options.

“We’re delighted to launch this new partnership with the Sea Eagles and we will be extremely proud when the guys run out on to the field for the first time with our branding across the front of their playing shorts,” says Chris Mavris.

“We recently celebrated the opening of our 107th store and today we celebrate another strong step forward in our ongoing growth as we align with the Manly Warringah Sea Eagles, one of the strongest and most successful brands in Australian sport,” Mr Mavris adds.

10 Business Franchise Australia and New Zealand

“It’s great that Soul Origin has chosen to partner with us and we’re looking forward to representing them proudly both on and off the field,” Sea Eagles’ Dylan Walker said.

“Thanks to Chris and the Soul Origin team, we’re looking forward to a big 2019 season together.”

For more information on Soul Origin and to find your closest local store visit https://www.soulorigin.com.au/

Hungry Jack’s restaurant to the next level.

“We’ve been serving our famous flame grilled burgers to Australians for more than 45 years and, during this time, our business has continued to evolve to meet the needs of our valued customers.

“Our partnership with Menulog recognises customer demand for delivery and will allow Australians to order Hungry Jack’s from the comfort of their homes. “We strive to work with the best suppliers and this extends to our delivery partners. With leading technology, compatible with our own advanced systems and more than 12 years’ experience, Menulog is the right choice in delivery partner for our brand. Our customers can expect the same high-quality experience they receive in our restaurants and drive-thrus.We aim to make delivery a significant part of our business,” Mr Parkinson said.

Hungry Jacks and Menulog Strike Whopper of a Deal Australia’s favourite locally-owned burger brand, Hungry Jack’s, has today announced an exclusive partnership with online food delivery service, Menulog, to bring Hungry Jack’s meals right to Australians’ doors.

The two Australian companies have teamed up to offer Hungry Jack’s’ full range of famous burgers, meals, desserts and sides

available for online ordering and delivery across the country. The partnership will ultimately see Hungry Jacks available for delivery to more than 1,604 suburbs across Australia.

Hungry Jack’s CEO Adam Parkinson says the partnership with Menulog will significantly bolster the company’s offering for customers and take the convenience of ordering from a

Menulog delivery adds to existing ordering options available via the ‘My HJ’s App’, including Skip the Queue and Quick ReOrder functionality. Joining Menulog also allows Hungry Jacks to reach Menulog’s customer network of more than three million Australians.

For a list of Hungry Jacks stores available on Menulog, visit: www.menulog.com.au/ content/national-brands/hungry-jacks/

Frozen yogurt all the way from the USA! Tutti Frutti partners with DC Strategy International franchise sensation Tutti Frutti Frozen Yogurt is back, bigger and better than ever!

expanded the franchise across 4 countries, with 35 locations operating worldwide, with another 5 set to open in 2019.

After years of hugely successful growth worldwide, this beloved American company has had a revamp, but still upholds its mission of providing high quality, healthy frozen yogurt, as well as giving control back to their customers through a modern self-serve concept.

Having researched and experienced the market first-hand, the pair identified an opportunity in a great segment of the market, resulting in the re-working and re-modelling of the well-known Tutti Frutti brand.

Through their extensive experience within the Lollipop’s franchise, the pair have refined the Tutti Frutti model, focusing on higher profitability for the franchisee, including site identification and new product lines.

Respected and experienced franchisors Tim Newman-Morris and Bret Stremski, Directors of the successful Lollipop’s Playland franchise, are the brains behind the Tutti Frutti revamp, bringing with them a wealth of knowledge and success.

Both directors have played the role of franchisee, with Bret having franchised with McDonald’s & Tim with the original Australian Lollipop’s franchise. Safe to say, the pair possess a wealth of knowledge focused on targeting higher profitability for the franchisee. Lollipop’s has been successfully operating for over 20 years, and the pair have

Tutti Frutti first opened its doors in SouthernCalifornia back in 2008, and is now available in more than 25 countries around the worldincluding 10 sites right here in Australia, where they opened their Melbourne companyowned store in 2011. Now, Tutti Frutti has over 600 sites open worldwide, and is expanding quickly! https://dcstrategy.com/franchisor/tuttifrutti/

Business Franchise Australia and New Zealand 11

c over sto ry: 7-El e v en

find success with

7-eleven

For Mandeep Singh, the desire to continue to strive to achieve while having the flexibility he needed for his young family was a key motivator in his transition from being a 7-Eleven corporate store manager to a 7-Eleven franchisee.

Mandeep joined 7-Eleven in 2016, as a store manager.

“I really enjoyed being a corporate store manager, but I wanted to do more. The energy from the team was infectious. I wanted to do better, and the high performance culture of the team really connected with me.”

Mandeep found the atmosphere at 7-Eleven very motivating, with one on one encouragement and support for his personal goals.

“Everyone was very approachable, it wasn’t like someone was your boss in your store, just lots of support and encouragement to succeed. When I was looking at what I wanted to do next, my State Manager, Nick Maddox, encouraged me to spend some time thinking about what my goals were, and what I needed to focus on to achieve them,” he said.

In choosing to become a 7-Eleven franchisee, Mandeep said that the structure and support available was really important to him.

“The key difference between being a corporate store manager and a franchisee is stronger financial benefits and more flexibility for my family.”

12 Business Franchise Australia and New Zealand

“I really enjoyed being a corporate store manager, but I wanted to do more. The energy from the team was infectious. I wanted to do better, and the high performance culture of the team really connected with me.”

“When I joined 7-Eleven, I had only 7 months retail experience. Before I joined, I was in procurement and graphic design. Before I was at 7-Eleven, I was already looking into restaurants and operating my own business. I had run businesses before and knew how hard it was. My daughter was about to be born, and I wanted to make sure my next move would give me not only the chance to be successful, but also the flexibility my family needed,” Mr Singh said.

“7-Eleven has a really well developed structure and system which I had used as a corporate store manager to manage the store. The system lets you focus on running your store and managing your team. Marketing and everything else is taken care of, and there is lots of support and back-up for helping you manage your business’ performance,” he said.

His experience as a 7-Eleven corporate store manager helped to ensure Mandeep could hit the ground running as the owner of the business with the support of his team.

“I knew the store well as I was running it for two years so the transition was easy. My team continued with me, I know them well and they have really helped support my success.

You need to support your team wherever you can, and my team respect me for what I do.

I lead by example, I do what I ask them to do. It’s really important to show them that what they do is important. We have dinners as a team every few months, keeping them motivated is really crucial.”

Mandeep’s next focus with his team will be on increasing fuel to merchandise conversion rates to take advantage of the volume of customers coming to his store to buy fuel. He sees coffee as a strong opportunity for growth.

“The next thing is fuel conversion, we have such an opportunity with the volume of fuel customers so I’m going to be working with my team to be the first 7-Eleven fuel store in Western Australia to be selling 500 cups per day,” Mandeep has also embraced the chance to take ownership of driving customer engagement through community support.

“I make decisions about my local area marketing and community support. I can create really strong connections with the local community by being part of their local clubs and organisations. That investment in the community over the past six months I have been the franchisee has not only helped those organisations with their work in the

community, but has also given me new regular customers. Our weekend trade is busy because of the connections with the local sporting clubs.”

The transition to becoming a franchisee has proven to be a good choice for Mandeep and his family, with the store continuing to enjoy double digit growth.

“The key difference between being a corporate store manager and a franchisee is stronger financial benefits and more flexibility for my family. My wife works in the store with me, we juggle our work around our family

responsibilities and other commitments.

It means we can both work, and still have family time. I spend more time in the store as a franchisee, but I can schedule that around what suits me, and spend time with the local community on the weekend. For me, I think success is driven by being true to myself and working hard.”

If you would like to be like Mandeep and find success with 7-Eleven, get more information on becoming a 7-Eleven franchisee at: http://franchise.7eleven.com.au

Business Franchise Australia and New Zealand 13

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

FCA Farewells Chair

Bruce Billson The FCA Board has sincerely thanked Bruce for his effort, steering the FCA through difficult times.

Since he first took up the role FCA Executive Chairman in June 2016, Bruce has overseen development of a new strategic plan to renew organisational focus, refresh the FCA team and re-energise engagement on matters of greatest priority and importance to the franchise community.

Bruce’s clarity of purpose enabled a greater focus on the key challenges, opportunities and value presented by the franchise model of enterprise as a key driver of economic and entrepreneurial success.

Following two and a half years’ tireless effort and commitment to further franchising in Australia, Franchise Council of Australia Chair Bruce Billson retired as an FCA director at the end of December 2018 to pursue some personal business initiatives and opportunities.

He was determined to achieve a ‘turn around’ of the FCA, utilising key performance indicators around membership and renewals, partnership, event participation, program enrolment and organisational performance.

The result has been initiatives that have been well received by members, demonstrating that the FCA is on track enhancing the value and benefits it provides to members of the franchise community.

Always a firm believer in the need to build and strengthen understanding in the broader community and amongst policy and decisionmakers about franchising, Bruce focused the FCA on revealing the diversity and enormous

14 Business Franchise Australia and New Zealand

contribution franchising makes to our economy and local communities.

He led delegations of franchise business leaders and Board representatives at meetings with Ministers, MPs and senior bureaucrats, which demonstrated his ‘skin in the game’ leading voice approach.

Other initiatives included review of the FCA’s governance, committee and taskforce/ working group structures, composition and arrangements, in consultation with members, to shape reform recommendations.

Bruce generously donated his time, experience and insights to the Board deliberations and advancing the FCA’s visions and strategies and the hallmark of his leadership was the political and commercial acumen he provided the Board and FCA. The FCA Board thanks Bruce for his tireless work and valued contribution, alongside a revitalised, more focussed and capable FCA team who have already achieved a great deal.

There is no doubt that Bruce’s input and views have been greatly valued by the Board and membership who wish him well as he focuses on new business initiatives and opportunities in 2019. www.franchising.org.au

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M E NTOR I NG

PR E S EN TAT IO N S

PL A NNI N G

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The case for

mandatory registration of franchise systems

Despite having one of the most comprehensive disclosure and conduct based regulatory regimes in the world, overseen by a regulator with strong investigative and enforcement powers, too many things fall through cracks, according to corporate and commercial lawyer, Stephen Giles, global leader of Norton Rose Fulbright’s International Franchising Business Group.

Distilling the various submissions to the Parliamentary Franchising Inquiry in 2018, and objectively reviewing the issues and apparent underlying causes, a few key structural themes emerge:1. Too many franchise systems are not complying with the existing regulatory framework; 2. Not enough franchisors have elected to register on the voluntary Australian Franchise Registry. In its submission to the franchising inquiry, Frandata Australia, which administers the Registry, indicated

“Although some improvements could be made to the Franchising Code, and ACCC enforcement could be enhanced, these changes will not be sufficient to restore confidence in Australian franchising.”

Stephen Giles | Global Leader, International Franchising Business Group Norton Rose Fulbright

that it felt the registration pre-requisites to lodge a compliant current disclosure document and franchise agreement were a significant reason why some franchise systems failed to register. The concern for the sector is that the Registry’s compliance pre-requisites are in fact statutory obligations under the Franchising Code.

Although the ACCC is able to access the Registry it does not appear that the ACCC currently considers the Registry when framing enforcement activities.

3. Too many franchisees are not meeting the underpinning expectation that they will use the Franchising Code framework to assist them in conducting proper due diligence. Specifically, too many franchisees are choosing to ignore the strong and explicit recommendations in the Franchising Code (and the mandatory documents provided by franchisors to every prospective franchisee) to obtain legal and business advice;

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4. Franchisees, the media and the general public expect more assurance around franchisor compliance than is currently provided by the Franchising Code, which is essentially disclosure based and assumes franchisees will accept their obligations to undertake due diligence; 5. The ACCC’s largely complaints-based enforcement activities are not sufficient, and no amount of further resourcing will solve that problem. Industry experts would say that it is hard to objectively fault the enforcement activities of the ACCC, but the clear conclusion from numerous submissions to the Franchising Inquiry critical of the ACCC is that the ACCC is simply not positioned to provide the level of comprehensive sector oversight that franchisees appear to expect.

Although some improvements could be made to the Franchising Code, and ACCC enforcement could be enhanced, these changes will not be sufficient to restore confidence

in Australian franchising. On the flip side if the total burden of responsibility for the success of a franchisee’s business is placed on the shoulders of franchisors this undermines the very essence of the collaborative business model that drives the competitive advantage franchising enjoys over other business structures.

Mandatory registration of franchise systems could provide significant additional protection for franchisees, but not tip the balance too far or remove the important duality of responsibility that should underpin a business joint venture where the franchisee enjoys all net income and capital growth benefits. If it is industry led, mandatory registration will not impose excessive compliance costs on franchisors or franchisees. It would also be relatively simple to administer.

“Registration of franchise systems is not a new idea. Indeed it occurred prior to the introduction of the Franchising Code of Conduct in 1998, and was recommended by various State and Federal franchise inquiries.”

How would registration work?

The registration system would be relatively simple, and could be incorporated into the Franchising Code of Conduct:• Franchisors would be required to be registered on an approved public registry to engage in the granting of franchises.

Registration would require franchisors to provide a certification in relation to certain matters or corporate details, and to confidentially provide a copy of their current franchise agreement and disclosure document;

• If they failed to renew their registration, or had their registration cancelled or suspended, franchisors would be unable to enter into new franchise agreements.

(They could continue to operate their businesses, and would of course continue to be obliged to comply with their obligations to franchisees under existing franchise agreements.)

• On registration franchise brands would be given a distinctive registration number;

• Failure to register would not of itself trigger any fine or other penalty. However any franchise agreement entered into by an unregistered franchisor would be voidable at the option of the franchisee, who would be entitled to a full refund of all monies paid;

• The Register would be publicly searchable by any person free of charge, with a flexible search mechanism permitting searches by brand;

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“Mandatory registration of franchise systems could provide significant additional protection for franchisees, but not tip the balance too far or remove the important duality of responsibility that should underpin a business joint venture where the franchisee enjoys all net income and capital growth benefits.”

• Other compliance obligations contained in the Code would still apply, and would be enforceable by the ACCC. So failure to register could, and often would, trigger an investigation or audit by the ACCC, and prosecution or other enforcement action would occur if the failure to register related to non-compliance with the Code obligation to update disclosure documentation; Registration of franchise systems is not a new idea. Indeed it occurred prior to the introduction of the Franchising Code of Conduct in 1998, and was recommended by various State and Federal franchise inquiries.

The main objections to registration were cost, on the assumption that the registration system was Government operated, and preference for lighter touch industry regulation.

Those objections would remain valid if the registration system was Government operated, but I believe an industry led but Government backed initiative would receive positive sector support. Whereas a Government funded registry would probably cost in excess of $20 million per annum to establish and operate, an industry led initiative would be self-funding at relatively modest cost from franchise system annual registration fees.

Mandatory registration is not a complete panacea, but it does deliver several significant new benefits:1. It ensures core fundamental compliance obligations are met by all franchise systems, not just those that chose to do so or are audited by the ACCC; 2. It provides additional information for prospective franchisees and their advisors in an easily searchable registry; 3. It provides an early warning mechanism that could alert the ACCC to possible breaches of the law.

Unless the Government was prepared to provide some form of statutory indemnity registration would not include the vetting or audit of submitted documents. However the ACCC has the statutory indemnity, and these functions are probably best left with the

ACCC. Registration augments disclosure, and would sit well alongside additional Code changes recommended by the franchise sector, such as mandating that franchisees obtain legal and business advice.

If the franchise sector genuinely wishes to restore confidence in Australian franchising it must embrace a significant new substantive initiative. Tinkering with the wording of the Franchising Code is not enough. The time has come for the Australian franchise sector to embrace an industry led initiative for the mandatory registration of Australian franchise systems.

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Stephen Giles heads the Franchising and Consumer Markets Group at international law firm Norton Rose Fulbright. He practises in franchising, distribution strategy, competition and consumer law, mergers and acquisitions. He is also a director of the Franchise Council of Australia, a shareholder in Frandata Australia and an investor in several Australian franchise networks. Norton Rose Fulbright is one of the world’s leading law firms, with offices in 58 locations throughout Asia, Europe, North America, South America, Africa and the Middle East.

For more information contact Stephen at: Stephen.giles@nortonrosefulbright.com

UNIQUE

AUSTRALIAN FRANCHISE OPPORTUNITY WITH

Freshly squeezed Orange Juice vending machines are rapidly growing in the global market and we are now currently looking for franchisee partners to replicate this successful venture in Australia.

By offering Australian consumers a 100% natural, deliciously healthy alternative drink option to what is currently available - with no added preservatives and made from Australian grown and sourced fruit - itâ&#x20AC;&#x2122;s a win-win business concept that is good for investors and the consumers alike.

The Opportunity We provide an easy way to get you started on your very own business with the necessary support to allow you to focus on core operations.

Our offer starts at a minimum commitment of 10 machines and our fee structure has been designed to align our success to YOUR success.

In particular partnering with us means we will provide: t Delivery of the machines to your warehouse t Support for the installation of the machines t Major maintenance and express repairs to minimise downtime t Supply of spare parts t Software upgrades t 24/7 customer service call centre t Training for your technicians t A roadmap guide to get you up and running t Marketing support at the national level t Business guidance

For further information, or to request a full investment memorandum please contact us via email in the first instance at: robert@freshjuicevending.com.au

Business Franchise Australia and New Zealand 19

Fo c us Feature : Fresh J uice V ending P ty Ltd

Fresh Juice Vending:

A Unique Australian Franchise Opportunity Fresh orange juice vending machine company, Fresh Juice Vending Pty Ltd, are looking for committed partners eager to take the step towards becoming their own boss!

Freshly squeezed, chilled orange Juice vending machines are rapidly growing in the global market, with a well-established and successful, proven business model in Singapore. The team at Fresh Juice Vending are currently seeking enthusiastic franchise partners to replicate this successful venture in Australia.

• Major maintenance and express repairs to minimise downtime

Get up and running quickly

• Quarterly machine maintenance inspection

When you partner with Fresh Juice Vending, you can set up your business with a minimum of fuss, or heavy financial commitments, in no time at all. The team at head office will work with you to find the very best locations, ensure a supply of fresh oranges, and provide you with the procedures and processes to replenish and maintain these smart machines to collect the funds.

Fresh Juice Vending provide an easy way for you to get started in running your very own business, with the added support that being a part of a successful network provides. The offer starts with a minimum commitment of 10 machines, and the fee structure has been carefully designed to ensure YOUR success as owner of the vending machines.

When you partner with Fresh Juice Vending, they will provide: • A roadmap guide to get you up and running • Support for the installation and start-up of the machines

• Supply of spare parts • Software upgrades • 24/7 customer service call centre • Training for your technicians • Marketing support at the national level • Business guidance from both the Machine Manufacturer and Master Franchisor

Australians Love Chilled Fresh Orange Juice!

According to Statista (a market research and data publishing specialist company), the overall Orange Juice market is circa $760m as of 2018, with this number expected to grow steadily in the coming years. In recent years, Australian consumers have been shifting their taste preferences from highly processed juices to freshly squeezed juices. This means that now is a great time to invest in this trending market by offering a quality, convenient and healthier option for consumers.

In addition to these impressive numbers and customer demand, oranges are available allyear round and grown locally in various parts of Australia, depending on the time of year, making them accessible and non-seasonally dependent.

“Australian consumers have been shifting their taste preferences from highly processed juices to freshly squeezed juices. This means that now is a great time to invest in this trending market by offering a quality, convenient and healthier option for consumers.”

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By offering Australian consumers a 100% natural and deliciously healthy alternative drink made from Australian grown and sourced fruit - it’s a win-win business concept that is good for investors and the consumers alike.

support, the skills and expertise provided

by Fresh Juice Vending ensures that you experience a smooth journey in setting up and running your own successful business.

High Customer Demand There are a high number of potential hightraffic locations for the orange juice vending machines, including corporate buildings, petrol stations, airports, shopping centres, health and fitness centres, hospitals, schools / colleges and universities, just to name a few. Consumers in all these locations are increasingly asking for healthier alternatives to existing vending machines. The team at Fresh Juice Vending want to help you capitalise on this trend and bring this unique OJ vending machine, the first of its kind in Australia, to members of the public.

By offering Australian consumers a 100% natural, chilled and deliciously healthy alternative drink option to what is currently available - with no added preservatives and made from Australian grown and sourced

fruit - it’s a win-win business concept that is good for investors and the consumers alike!

Proven Success Fresh Juice Vending Pty Ltd are an Australian company with an exclusive Master Franchise Agreement for Australia with Fruits Vending Pte Ltd, the machines manufacturer and supplier in Singapore. The head office team in Singapore has years of experience providing machines, service and oranges to Singapore, Kuala Lumpur, South Korea, Hong Kong, Sri Lanka and Thailand, meaning Fresh Juice Vending franchise partners have access to valuable business expertise and advice, marketing, people management and consulting experience. In addition to providing you with ongoing franchisee

The team at Fresh Juice Vending can help you expand and maximise your business and we are also seeking existing vending machine operators looking to expand their offering and integrate a healthy and lucrative option to their portfolio.

A Superior Product After scanning the global market, Fresh Juice Vending decided on the Fruits Vending model of fresh orange juice vending machine as being second-to none in quality and innovative smart technology.

The Fresh Juice Vending team are committed to bringing the highest quality chilled fresh juice vending machine to Australia, which has been designed and made in Singapore and has demonstrated proven success in the market.

Product Highlights: • 500 pieces of oranges capacity (approximately 120 drinks) • 4-5 oranges per serving • Approximate volume 12oz or 350 - 380ml dispensed • Full cold system storage, between 3 to 6 degrees Celsius • Smart technology including 3G wireless real-time monitoring • 22 inch LCD with audio and video • QR code, Cash and Cashless payment system • 1/1000 fault rate, minimising downtime For further information, or to request a full investment memorandum please contact us via email in the first instance at: robert@freshjuicevending.com.au

Business Franchise Australia and New Zealand 21

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Why Expert Advice is Crucial

No human being can do everything. No human can be everything. That is why seeking advice when necessary is important. In fact, it is one of the most important business growth strategies your business can adopt, particularly in relation to matters that require legal action or assistance.

J.P. Morgan once said “I don’t want a lawyer who tells me what I can’t do. I hire a lawyer to tell me how I can do what I want to do!”

If you have a lawyer who can give you sound, practical and commercial advice, he or she will be able to guide you through the complexities of regulatory compliance encountered by any business throughout day-to-day operations.

It is therefore essential that you find a lawyer who trusts and believes in you, and your business. He or she will be invaluable to you in handling an environment that is regularly complicated by changes to legislation and the application of law, along with managing the business challenges of constructing. Alongside these changes, lawyers provide knowledge and advice for you when it comes to implementing

22 Business Franchise Australia and New Zealand

and appropriately managing a business plan over time, which will secure your business’s future: It all boils down to connecting with people.

It is important to engage expert legal advice early and build a relationship with your lawyer. He or she will add value to your business and ensure that you are properly advised in the decisions you make to grow your operations. Your legal advisor needs to be more than a legal expert delivering legal advice - they must put their legal advice into context of what it means for a client’s business, and deliver it in a manner that assists with the client’s business goals and expectations. It is understood that such an expert may come at a cost, however that cost is reflective of the

“It is important to engage expert legal advice early and build a relationship with your lawyer. He or she will add value to your business and ensure that you are properly advised in the decisions you make to grow your operations.”

Rostom Manookian | Legal Practice Director | DC Strategy Lawyers

shareholders, the drafting and advising on commercial agreements among other things are part of the services your expert legal advisor can help you with to ensure that your business concept will translate into a functional and effective model during day-today operations. Getting this work done early is always likely to be the cheaper option in the long run, saving you a substantial amount of time down the track if something goes wrong, whilst also preventing you from receiving a large and unexpected tax bill. Once you have been issued a letter of demand, court summons or complaint, the problem already exists and you will need to incur costs to resolve it.

Whether you are a franchisor or a franchisee, your lawyer will be at your side to explain the franchising compliance requirements and help you to understand the franchise process. Whether you’re the franchisor or a franchisee, your lawyer will always strive to present you with sound, practical and unbiased commercial advice, which you can then rely on to build your franchise. This will apply whether you are a property developer, an established business or a start-up business. learning required prior to assisting you, giving you the opportunity to make an informed decision based on your individual rights and needs. This helps you to avoid situations or outcomes that unfairly impact you, as well as obtaining your desired outcome faster and with greater certainty than trying to work it out on your own.

Expert legal advice will build the foundations for your business operations in a way that is binding and enforceable in the future. Legal advice should be considered as a precautionary measure, not just the way in which you manage or resolve a problem when things go wrong. The correct structure for your business, the preparation of a shareholder agreement to regulate the relationship between

It is a true and well known fact that most business leaders are not interested in reading a long legal brief. You are busy and don’t have the time to read a 10-page document; we know that you want a 1-2 page document containing an opinion or recommendations of action that can be used in decision making by executives or those at board level. As a business leader, you need to engage an expert legal advisor who understands your business, whilst also building a relationship with them to ensure that you can communicate and share advice and recommendations appropriate to your business. Without the legal advice of an experienced lawyer, you might miss or misrepresent facts that can prove detrimental to your business.

An experienced lawyer can explain to you

“Whether you are a franchisor or a franchisee, your lawyer will be at your side to explain the franchising compliance requirements and help you to understand the franchise process.”

how to achieve your business goals and advise what steps need to be taken in order to grow and develop your business. Your expert advisor should be able to anticipate client needs, focusing on the business goals whilst continuing to maintain effective communications with the client. He or she will help you avoid problems, instead of waiting until they are created, therefore you avoid making mistakes that could land you in trouble.

About Rostom Manookian Rostom is admitted to practice in NSW and Victoria and is an experienced lawyer with in-depth knowledge and experience in many industries including, hospitality/ restaurant/liquor licensing, franchising, and commercial property. Prior to joining DC Strategy Lawyers as the firm’s Legal Practice Director, Rostom operated his own legal practice for more than 4 years.

Rostom merged his practice with DC Strategy Lawyers to take advantage of the synergies between the two firms. Rostom is committed to delivering consistent quality and value to his clients and aims to establish a reliable, trustworthy, responsive relationship with clients to ensure continued delivery of quality service that his clients have come to expect from him.

Rostom.Manookian@dcstrategy.com https://dcstrategy.com/services/legal/

Business Franchise Australia and New Zealand 23

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One year on:

the impact of the Vulnerable Workers Act on franchisorfranchisee relations

Just over one year ago, the much-touted Fair Work Amendment (Protecting Vulnerable Workers) Act 2017 (VW Act) came into effect with much anticipation and trepidation.

Since this Act provided the Fair Work Ombudsman (FWO) with the ability to seek significantly higher penalties for breaches of the Fair Work Act 2009 (FW Act) and to make franchisors liable for employment entitlements owed by franchisees, it was thought in some circles that this relatively small Act would destroy the franchising sector as we know it.

“The important thing for franchisees to remember in this process is that the intervention of the franchisor is not personal. It is part of a wider process to protect the business and the business model, nothing more.”

Lindsay Carrol | Legal Practice Director National Retail Association, Legal

One year on, and the effect of the VW Act is being felt, but not in the courtroom or in the actions of the FWO, but in the relationship between franchisor and franchisee.

A muted regulatory response The government’s reasoning behind making franchisors liable for the contraventions of their franchisees was two-fold:

(1) to encourage franchisors to take positive steps to ensure that their franchisees were operating in compliance with the law; and (2) to allow the FWO to target the franchisor (which typically has deeper pockets) so that employees are more likely to be paid their outstanding entitlements by a commercial entity rather than under the Fair Entitlements Guarantee (FEG).

In the 13 months since the franchisor liability provisions came into effect, the FWO has not commenced any legal proceedings against a franchisor in reliance on those provisions.

To an extent, this is likely due to the extended process the FWO undertakes before it gets to the point of litigation – legal proceedings are expensive even for the government, and are therefore a last resort rather than a first response.

The FWO’s enforcement policy also emphasises that the office take the course of action most likely to achieve the policy outcomes of the FW Act. As we will see below, the activity of franchisors is making litigation somewhat unnecessary in this respect.

Since franchisors can only be held liable for contraventions by their franchisees occurring after 27 October 2017, it is more than likely

24 Business Franchise Australia and New Zealand

that we won’t see any litigation under this clause, if any, until 2019 if not later.

A proactive response from the sector Whilst the FWO’s response to the VW Act may not be immediately identifiable, the franchise sector’s response has been increasingly proactive as franchisors take ‘reasonable steps’ to protect themselves from liability, particularly since the FWO released its guidelines on this point.

The most extreme case of this was of course Caltex, which decided that the risk created by the VW Act was simply too great and bought back all of its independent franchise outlets. A dramatic response, to be sure, but one which that business felt was the best means to protect itself.

Lower down the chain of reactions, we have

increasingly seen franchisors undertake closer supervision of their franchisees, and including provisions in their franchise agreements to allow this to occur more readily and impose penalties where contraventions are uncovered.

Some franchisors are going one step further and actively auditing their franchisees. Whilst some are doing this on a ‘random sample’, others are undertaking a systematic, wholeof-network approach to ensure that no stone is left unturned. In some cases, this amounts to a significant investment on the part of the franchisor to ensure that everything is shipshape. Both of these steps form part of the guidelines issued by the FWO on this point.

However, this sometimes causes tensions between franchisor and franchisee – after all, the franchisee went into business to be their own boss, not to be beholden to someone higher up the pecking order. Whilst some franchisees welcome the intervention of the

franchisor, others are rankling under the increased supervision.

It’s not personal The important thing for franchisees to remember in this process is that the intervention of the franchisor is not personal.

It is part of a wider process to protect the business and the business model, nothing more.

By the same token, franchisors need to remember that their franchisees are in business as independent operators. Entering their business to check compliance with the FW Act and the franchise agreement is not a blanket authority to start treating the business like your personal plaything.

Mutual respect and understanding between both parties is essential for the franchise model to work in this new paradigm, so care

Business Franchise Australia and New Zealand 25

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“Most importantly, both franchisor and franchisee need to remember that the relationship between them is symbiotic – you need each other to succeed.”

should be taken to respect the mutual sense of propriety both sides will have – over the individual business, and over the brand.

“In the 13 months since the franchisor liability provisions came into effect, the FWO has not commenced any legal proceedings against a franchisor in reliance on those provisions.”

Franchisors come bearing gifts Forcing franchisors to make compliance with the FW Act one of the cornerstones of their brand was one of the intended outcomes of the VW Act, and so far as we can tell it appears to be working.

One of the increasingly more common methods by which franchisors are mitigating their risks under the VW Act is to provide additional training on industrial relations laws to their franchisees in addition to the usual brand awareness training used to make franchises consistent across the network.

Franchisors are providing this in a variety of different methods – some are relying on internal trainers to visit individual franchisees, whilst others conduct group training sessions for new and existing franchisees with external trainers, and increasingly this external trainer is the relevant industrial organisation.

Some franchisors are simply pushing their franchisees towards the resources available on the Fair Work Ombudsman’s website, and whilst this is a good place to start we doubt that it will be enough to ensure compliance or mitigate the risk to the franchisor – indeed, former Fair Work Ombudsman Natalie James said as much. The more tailored the solution, the more effective it is likely to be.

As a franchisee, full advantage should be taken of these resources as they are made available. Certainly it best behoves the franchisee to proactively ensure their own compliance than wait for the franchisor to compel it.

Alex Millman | Senior Workplace Relation Advisor National Retail Association, Legal

Symbiotes, not parasites Most importantly, both franchisor and franchisee need to remember that the relationship between them is symbiotic – you need each other to succeed.

In real terms, the franchisor needs the franchisee to run the revenue-generating operations of the brand. The franchisee needs the franchisor to provide the resources to ensure that this revenue does not go down the drain thanks to some simple error in payroll.

Importantly, franchisees should remember that where there is non-compliance with the FW Act, they are the ones liable first and foremost.

The franchisor may never be liable – in fact, most (if not all) of the steps that they are taking are designed to ensure that they are not liable, even if the franchisee is. However, part and parcel of this is providing the franchisee with the resources they need to make sure that they are operating within the confines of the law.

When the resources – the training, the guides, the checklists – are offered, don’t look a gift horse in the mouth. Bite the bullet and accept them – it can only help in the long run.

26 Business Franchise Australia and New Zealand

Lindsay Carroll is the Legal Practice Director at the National Retail Association and is a leading workplace relations specialist.

She regularly advises members on issues including termination of employment, redundancy and workforce restructure, managing threats of industrial action, disputes and disciplinary matters. She has experience assisting members in complex enterprise level negotiations and in the design and implementation of industrial strategies.

Alex is a Senior Workplace Relation Advisor at the National Retail Association.

He provides advice and representation to over 19,000 retail, fast food and quick service outlets nationwide. Whilst focusing on employment law, Alex also advises and represents members in general commercial litigation in various State courts, and also advise generally on compliance with applicable registered organisations legislation.

Contact the NRA for more information on 1800 RETAIL (738 245) or visit https:// www.nra.net.au

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Business Franchise Australia and New Zealand 27

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Putting Your Best Foot Forward For Finance The finance landscape in Australia has undergone significant changes in recent years. As a result, the number and type of finance options available to small business owners has increased significantly, leaving many overwhelmed about which option is best for them and their business.

Many first time franchisees are unaware of what the first step is when seeking finance for their business, adding stress to what should be a simple process. Having a greater understanding of your finance options and what the process entails will put you in a better position to make educated choices.

What Do You Need For A Finance Application?

Submitting a strong application sets you up for success when applying for finance. Not having a good understanding of what lenders will want to see in your application can cause time delays as they seek out additional information, and can even dampen your chances of approval. The most important consideration for a lender is the viability of your business and your capacity to repay the loan.

Each lender has their own unique application process, and gaining access to finance from an alternative lender can be a considerably different process to that of a bank. Whilst there is some standard information that all lenders will likely ask for, certain characteristics can influence what the requirements of an application are, such as the type of business, value of the loan and experience of the business owner.

The most common requirements when lodging a finance application are the following: a completed application form from the lender,

28 Business Franchise Australia and New Zealand

a valid form of identification, a business plan, an Asset & Liability Statement, a Commitment Schedule, financial projections, personal and company tax returns, an ATO Notice of Assessment and Business Activity Statements. Whilst you might not need all of these it is a good idea to have them on hand, to ensure a smooth process.

When gathering all the information required to complete your finance application, a key consideration is that the information is accurate. Errors can have a significantly negative impact on your application and can even bring your credibility into question.

Responsible lending practices are in place to protect both the borrower and lender, and ensuring that your application is truthful allows both parties to make an informed decision about your funding.

What Are Lenders Looking For? When assessing an application, lenders are generally guided by â&#x20AC;&#x2DC;The 5 Câ&#x20AC;&#x2122;s of Creditâ&#x20AC;&#x2122;, a set of principles that aid in evaluating the borrower and their businesses viability. When

preparing your application for submission, these principles should be kept in mind.

Character. This refers to the borrower themselves and encompasses things such as your reputation, your willingness to pay the debt, the results of credit reports and any information found as a result of social media and Google searches.

“When assessing an application, lenders are generally guided by ‘The 5 C’s of Credit’, a set of principles that aid in evaluating the borrower and their businesses viability.”

James Scurr | Founder & Managing Director | Cashflow It

Capacity. This solvely considered your financial capacity to repay the loan. When assessing capacity lenders will take into account your income, expenses and any other financial obligations such as existing debt.

“Achieving the right mix of debt and equity finance and continuing to manage this throughout the life of your franchise business will encourage long-term success and sustainability.”

Capital. This is more of a general look at your overall financial position. Lenders will likely evaluate your net assets and their liquidity. This is an important consideration if circumstances become difficult, as assets may have to be liquified to provide cash to meet your immediate financial obligations.

Collateral. What is considered where will vary depending on which specific lender you choose to fund through. For more traditional lenders and banks, collateral or security often comes in the form of your home or property. However other alternative lenders may choose to use the assets being finances as security for the loan. In addition to this, Director’s Guarantees or Personal Guarantees may also be requested as a further form of security.

Conditions. The conditions encompass the terms on which the finance will be offered to you, the borrower. This will vary for each lender but generally includes the interest rate, fees and contract term.

Managing Your Expectations Despite how brilliant your application to a finance lender is, it is important to manage your expectations. Occasionally franchisees expect to utilise debt finance as the sole source of funds for their business. As a general rule, this is a dangerous move for both the lender and borrower, and would only be considered in very rare cases. Responsible lending guidelines play an important role in the type and level of funding a finance provider may choose to give you. This is because taking on an unrealistic level of debt is one the fastest ways to put your business at risk, and lenders don’t want to see their clients fail!

Debt financing is a great tool to be used in lieu of working capital when funding expensive items such as equipment and fitout. However it is important to realise that it shouldn’t be your only source of funds. Achieving the right mix of debt and equity finance and continuing to manage this throughout the life of your franchise business will encourage long-term success and sustainability.

Don’t Just Take Our Word For It Finally, one of the most important steps when seeking finance for your franchise business is to get advice. The best time to do this is before you even start applying with banks or alternate lenders. This advice should come from professionals, whether that be an accountant, lawyer or business advisor, make sure it is someone who has your best interest at heart. These professionals can help you establish what business structure is best for you, provider a better understanding of your role and responsibility as a business owner, explain your obligations surrounding tax and GST, review agreements and advise of potential risks.

After consulting with qualified professionals, you may also consider seeking some advice from people within the franchise network.

Seeking out existing franchisees can provide you with a unique insight into how your particular franchise system works and can produce some invaluable advice to help prepare you for your franchise journey.

Unfortunately for many franchisees access to finance has been seen as a hurdle to overcome in their franchising journey. However as new funding options become more accessible for SMEs, getting the funds to start your business is no longer a struggle. Although it is not always a given, having a good understanding

of the application process and putting your best foot forward will give you the best chance for success.

About James Scurr Seeing a gap in the market, James founded Cashflow It in February 2014 after garnering financial services experience with a publically listed company where he developed a successful division within the group.

It is James’ experience as a franchisee, however, that ensures Cashflow It meets its customers needs better than any other equipment finance company in Australia.

Spending almost a decade as a successful multi-unit franchisee for companies including Boost Juice, Dreamy Donuts and other independently owned businesses, James has extensive franchising and small business experience, and has an acute understanding of Cashflow It customers’ requirements.

James holds a Bachelor of Business, majoring in Management and Accounting from Queensland University of Technology. He is an internationally recognised Certified Franchise Executive (CFE) and a Frandata Registered Franchise Lending Specialist.

For more information contact Cashflow It on: 1300 659 676 or visit http://info.cashflowit.com.au \

Business Franchise Australia and New Zealand 29

e x pert a dv i c e

5 New Year’s money management resolutions to keep your business firing on all cylinders in 2019

Every year without fail, January comes rolling around and we set resolutions to better our personal lives; such as eating healthier or joining a gym. Unfortunately, only 9 per cent of those who set a goal on January the 1st will achieve their New Year’s target.

This makes it much more important to also evaluate the changes you can make to improve your business and most importantly, make them stick. Setting a goal each year will show you how your business has changed and motivate you to strive forward.

John Corias, Senior Partner of small business accounting firm m.a.s accountants shares his top five money management resolutions to keep your business heading in the right direction in during 2019.

“Cash flow is the core essence of any small business, with 41 per cent of Australian small businesses failing due to poor cash-flow management.”

John Corias | Business owner & Senior Partner | m.a.s accountants

1

Learn strategies to sharpen up cash flow

“Cash flow is the core essence of any small business, with 41 per cent of Australian small businesses failing due to poor cashflow management. Avoid becoming one of the statistics and get on top of your business finances now. Simply put, you have a cash flow problem if your outgoings are more than your incomings. If your business structure allows it, a great way to alleviate cash flow headaches is to take payment via credit card or direct debit. This puts you in control of getting paid on time and allows for more cash into your account more often.”

30 Business Franchise Australia and New Zealand

2

Don’t stick your head in the sand

“Many small businesses find it hard to keep on top of both current and future tax obligations.

Don’t just stick your head in the sand, it’s important to keep yourself up to date with the constant changes in tax laws and regulations.

If you don’t understand something, educate yourself. If that’s proving costly time-wise, take up the services of an accountant as soon as you can. The longer you wait before seeking help, the more you might end up having to back pay in tax. This is a cash flow stress your business can avoid. Another way to keep an eye out for these things is to invest in a good piece of accounting software (i.e. Xero) that integrates with your business - smarter technology can ease the pressure.”

“It’s essential to take some time and reflect on your past year and assess your business’s growth, revenue and sales goals. How do they compare to last year?”

3

Review growth, revenue and sales goals

“It’s essential to take some time and reflect on your past year and assess your business’s growth, revenue and sales goals. How do they compare to last year? Was there anything about your spending last year that raises any red flags? This can help you understand how your business has evolved from the previous year. The bottom line is crucial for any business to stay profitable. If your business has had no significant growth, try to figure out why.”

4

If you’re not happy with your accountant, take charge and search for a new one “The New Year is a great time to re-assess your business needs. You might be looking for an accountant to keep on top of business tax payments or looking to switch due to an unsatisfactory current accountant. Either way, there are ways to ease into the transition, so it won’t be such a challenge. Make sure you are communicating with your current accountant for a smooth handover and any outstanding work will be performed by the new accountant. Do sufficient research whether it’s through referrals from your contacts, internet searches or advertising. Prepare your objectives and reasons for looking for a new accountant before you meet with them, so you can ensure they are providing the exact services you require. Take as much documentation with you as possible relating to your accounts, as this will help your new accountant and also give you an idea of the time and cost involved in fixing up the accounts. Lastly, ensure they are a registered tax agent and not prohibited by law from providing the promised services.”

5

Learn to say ‘no’

“Small business owners are constantly on the lookout for new clients, partnerships and opportunities to increase growth. Take a step back in 2019 and try to understand that it’s not the best for your business to constantly say “yes” to every opportunity that arises. The real lesson here is to be selective with your decisions and make sure they align with your long-term goals.”

John Corias is the business owner and Senior Partner of m.a.s accountants with 27 years of experience in small business accounting having worked with a variety of clients who all have different needs. m.a.s accountants is the original accounting office; servicing Sydney and Melbourne small business accountancy needs for over 55 years. They are a dedicated team of experienced small business accountants.

Sydney - 02 9211 5000 Melbourne- 03 8866 1555 www.masaccountants.com.au

Business Franchise Australia and New Zealand 31

Don’t miss an issue

Get the App C OV ER STO RY: 7- E L E V E N

FIND SUCCESS WITH

“I really enjoyed being a corporate store manager, but I wanted to do more. The energy from the team was infectious. I wanted to do better, and the high performance culture of the team really connected with me.”

7-ELEVEN

“When I joined 7-Eleven, I had only 7 months retail experience. Before I joined, I was in procurement and graphic design. Before I was at 7-Eleven, I was already looking into restaurants and operating my own business. I had run businesses before and knew how hard it was. My daughter was about to be born, and I wanted to make sure my next move would give me not only the chance to be successful, but also the flexibility my family needed,” Mr Singh said.

“7-Eleven has a really well developed structure and system which I had used as a corporate store manager to manage the store. The system lets you focus on running your store and managing your team. Marketing and everything else is taken care of, and there is lots of support and back-up for helping you manage your business’ performance,” he said.

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

His experience as a 7-Eleven corporate store manager helped to ensure Mandeep could hit the ground running as the owner of the business with the support of his team.

For Mandeep Singh, the desire to continue to strive to achieve while having the flexibility he needed for his young family was a key motivator in his transition from being a 7-Eleven corporate store manager to a 7-Eleven franchisee.

Mandeep joined 7-Eleven in 2016, as a store manager.

“I really enjoyed being a corporate store manager, but I wanted to do more. The energy from the team was infectious. I wanted to do better, and the high performance culture of the team really connected with me.”

Mandeep found the atmosphere at 7-Eleven very motivating, with one on one encouragement and support for his personal goals.

“Everyone was very approachable, it wasn’t like someone was your boss in your store, just lots of support and encouragement to succeed. When I was looking at what I wanted to do next, my State Manager, Nick Maddox, encouraged me to spend some time thinking about what my goals were, and what I needed to focus on to achieve them,” he said.

In choosing to become a 7-Eleven franchisee, Mandeep said that the structure and support available was really important to him.

“The key difference between being a corporate store manager and a franchisee is stronger financial benefits and more flexibility for my family.”

12 Business Franchise Australia and New Zealand

“I knew the store well as I was running it for two years so the transition was easy. My team continued with me, I know them well and they have really helped support my success.

You need to support your team wherever you can, and my team respect me for what I do.

I lead by example, I do what I ask them to do. It’s really important to show them that what they do is important. We have dinners as a team every few months, keeping them motivated is really crucial.”

Mandeep’s next focus with his team will be on increasing fuel to merchandise conversion rates to take advantage of the volume of customers coming to his store to buy fuel. He sees coffee as a strong opportunity for growth.

“The next thing is fuel conversion, we have such an opportunity with the volume of fuel customers so I’m going to be working with my team to be the first 7-Eleven fuel store in Western Australia to be selling 500 cups per day,” Mandeep has also embraced the chance to take ownership of driving customer engagement through community support.

“I make decisions about my local area marketing and community support. I can create really strong connections with the local community by being part of their local clubs and organisations. That investment in the community over the past six months I have been the franchisee has not only helped those organisations with their work in the

VOL 13 ISSUE 02 JAN/FEB 2019

AUSTRALIA and NEW ZEALAND

FIND SUCCESS WITH

7-ELEVEN

DRIVING SALES WITH

SOCIAL MEDIA:

community, but has also given me new regular customers. Our weekend trade is busy because of the connections with the local sporting clubs.”

responsibilities and other commitments.

It means we can both work, and still have family time. I spend more time in the store as

a franchisee, but I can schedule that around AN EXPERT’S GUIDE

The transition to becoming a franchisee has proven to be a good choice for Mandeep and his family, with the store continuing to enjoy SPECIAL FEATURE double digit growth.

RETAIL

“The key difference between being a corporate store manager and a franchisee is stronger financial benefitsFRANCHISING and more flexibility for my family. My wife works in the store with me, we juggle our work around our family

what suits me, and spend time with the local community on the weekend. For me, I think success is driven by being true to myself and working hard.”

If you would like to be like Mandeep and find success with 7-Eleven, get more information on becoming a 7-Eleven franchisee at: http://franchise.7eleven.com.au

Business Franchise Australia and New Zealand 13 PUTTING YOUR BEST FOOT FORWARD FOR FINANCE

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

FINANCIAL & LEGAL ADVICE

LATEST NEWS

FRANCHISE DIRECTORY

www.businessfranchiseaustralia.com.au 32 Business Franchise Australia and New Zealand

retail

VOL 13 ISSUE 02 jan/feb 2019

retail

franchising an industry on the rise

RETAILERS MUST EMBRACE CUSTOMER FEEDBACK how do you recruit and select the

BEST SALES PEOPLE

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

42

Contents On the Cover 40 Special Feature: Retail Franchising: An Industry on the Rise

48

48 Expert Advice: Retailers Must Embrace Customer Feedback 58 Expert Advice: How do you Recruit and Select the Best Sales People?

36 Whatâ&#x20AC;&#x2122;s New:

Announcements from the Industry

52

42 Expert Advice: Retail - Taking It Offline

FC Business Solutions

46 Profile: Clark Rubber: The Clark Rubber Commitment 48 Expert Advice: Retailers Must Embrace Customer Feedback

Vicky Katsabaris | Qualtrics

50 Profile: Carpet Call and Solomons Flooring: Exciting Opportunities 52 Expert Advice: Driving Sales With Social Media

Melissa Haywood | Head of Vista Print Australia

55 Focus Feature: BoConcept: Australiaâ&#x20AC;&#x2122;s Superior Retail Franchise 58 Expert Advice: How do you Recruit and Select the Best Sales People?

58

Mike Adams | Author

60 Profile: The Lott: When Australia Dreams, we all win!

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 35

what’snew!

Woolworths Group CEO Brad Banducci said that the transaction is “positive for our customers, our team and our shareholders.”

“The agreement will continue to strengthen the opportunities our customer have for greater value when shopping with us, with the benefits of Woolworths Rewards program and the duel discount offer set to continue,” he said.

EG Group is the leading petrol forecourt retailer in Europe and has had recent success in the US.

Woolworths to sell fuel business for $1.7 billion Woolworths Group has announced plans to sell its petrol business to British retailer, EG Group for $1.725 billion. The supermarket giant has entered into a 15year commercial alliance with the global leader in fuel and convenience retailing.

As part of the deal to sell its 540 fuel convenience sites, Woolworths will also commence a wholesale food supply agreement to the network. Woolworths’ four cent per litre fuel discount will continue and customers will continue to earn Woolworths Rewards points on fuel and merchandise.

“We are committed to investing in the site network, introducing leading retail brands, developing the alliance with Woolworths and working with the exceptional management team,” EG Group founder and co-CEO Mohsin Issa said.

On Monday morning, Woolworths announced that its chief legal officer and company secretary Richard Dammery will step down from his role in late January 2019.

Dammery played an important role in the group’s petrol transactions and the recent sale of the fuel business. https://www.woolworths.com.au

Lease changes to give NSW retailers access to better data Retailers in NSW will have the ability to access information on sales reporting and occupancy costs from shopping centre landlords, improving transparency and accountability as of January 1, 2019.

The change comes as a result of a partnership between the Australian Retailers Association, the Pharmacy Guild of Australia and several other industry bodies that have developed the Retail Industry Code of Practice – The Reporting of Sales and Occupancy Costs.

“This landmark achievement for retailers in NSW will provide vital information to tenants in shopping centres, allowing them to betterunderstand the real value of their leases,” ARA executive director Russell Zimmerman said.

“The implementation of this code will help to give some power back to retail tenants and give them some added certainty when it comes to negotiating with their landlords.”

While the collection of sales data has been the norm for some time, the way it is collated and reported has created long-running issues of contention for retailers.

transitional period to July 1, 2019, will allow shopping centres to sign up for and implement the changes.

Ensuring that all relevant parties have access to this data means that landlords, retailers and third parties can make tenancy, marketing and stock-ordering decisions with a more complete understanding of what is selling and what isn’t in a particular store.

“We will be working to implement this code nationally over the medium-term, and with rising costs, increasing competition and patchy sales growth creating some headwinds for retailers, big wins like this can make a substantial difference,” Zimmerman said.

The Shopping Centre Council of Australia (SCCA) has agreed to the code, which will be implemented in the new year. A six-month

Visit http://www.businessfranchiseaustralia.com.au/latest-news for more details

36 Business Franchise Australia and New Zealand

Australian Skin Clinics launches Australia’s first media-aesthetic rewards program ‘clubblue’ In an industry first, Australia’s experts in laser and skin rejuvenation Australian Skin Clinics have launched their rewards program, clubblue, into their clinics nationwide. The program works on a credits-based system, allowing clients to earn a percentage of their spend back in credits, known as ‘bluedollars’.

Christie Harris, Chief Marketing Officer of Australian Skin Clinics, said the program was built to reward clients for rewarding themselves.

“We wanted to find a way to show our customers that they deserve the best service and reward them for coming to us for their medi-aesthetic treatments,” said Christie.

“This program has been in the works for over 12 months, with clubblue really coming to life over the last six months thanks to a lot of hard work behind the scenes to ensure the introduction was a smooth transition for our franchisees and entire network.”

Any client who makes a purchase between $1.00-$1000 will sit at the Turquoise level, moving up to the Sapphire level if they spend between $1000 and $2000 in a 12-month period. Those clients who spend over $2000 in a 12-month period will be most rewarded at the Blue Diamond tier.

“Each bluedollar is worth $1AUD. This value was chosen to make the program simple, as

well as give clients a sense of earning and spending real money with real value. We have all been involved with loyalty or rewards programs where 50,000 points will buy you a toaster, which is not what we wanted to give our clients,” said Christie Harris.

and they don’t have to be concerned with membership cards or remember to claim at every appointment. Instead, Australian Skin Clinics will provide clubblue members with a free, limited edition keyring as a thank you for being ‘part of the club’ (while stocks last).

“Even clients who visit infrequently will be rewarded because everyone deserves it, no matter how much you spend with us. The program is an investment into our clients because ultimately, they come first.”

For a limited time, Australian Skin Clinics will be offering a free customised keyring to all clients who make a purchase in December.

Clients automatically become a member when they make a purchase or book an appointment, meaning the transition is simple

Terms and conditions apply, bluedollars are not redeemable for cash and cannot be earned or redeemed on injectable stock and services.

For more information visit www.australianskinclinics.com.au.

Dymocks opens 17th Victorian store Book retailer Dymocks has opened its 17th store in the state of Victoria at Highpoint Shopping Centre in Maribyrnong. The store is the first to open in the state in two years.

As per customer demand, 15 per cent of floor space is dedicated to nonbook products, with a strong emphasis on gifts, cards and stationary.

“The store looks fantastic and will become a destination zone for Highpoint book-lovers,” franchise owner Michelle Lee said.

“It’s designed as a vibrant, welcoming space for customers to mingle and browse the shelves. Dymocks is constantly evolving its store design to keep pace with today’s customer.”

The location features a more modern, open interior, and includes digital display screens and signage in order to ensure customers are kept up-todate on any changes made in the store.

Lee said the book retailer has a significant customer base in the Melbourne metro area. https://www.dymocks.com.au

Business Franchise Australia and New Zealand 37

what’snew!

developed in partnership with Inhaabit.

Users can also move around the space and see the product from any angle. They can place multiple products together to compare sizing, and combine them with dining and lounge settings, to build the perfect outdoor arrangement.

The initiative is meant to alleviate customer hesitation at the point of purchase. Barbeques Galore noted that summer is peak season for barbeque purchases.

Retail chain uses augmented reality to assist sales Specialty retailer Barbeques Galore has become the latest retailer to develop a mobile app that lets customers ‘see’ what their products will look like in situ before buying.

at a location inside or outside their home – a patio for instance – and see whether a product will fit in the space and what it will look like. An Android version of the app will be launched later this year.

The newly launched app includes an augmented reality (AR) feature that makes it possible for customers to point their iPhone

Over 100 popular products, including barbeques and outdoor furniture, are available in ‘ultra-realistic detail’ in the app, which was

“Traditional retail sales channels such as showrooms, catalogues and websites are key customer experiences in the pathway to purchase, we are now excited to add to this with our at home app. It is a move to continue supporting our customers in the channels they move to and play and continue our status as a category leader,” said Barbeques Galore CEO Luke Naish.

“By giving customers the best way possible to see our products within their home environment, we are helping them make the best purchase when they come in-store.”

Ikea and Redbubble launched similar services last year, shortly after Apple launched its ARkit, which made it easier for developers to integrate AR functionality into mobile apps. https://www.barbequesgalore.com.au

Appliance rental franchise pays $257k for lending breach Local Appliance Rentals (LAR) has paid $257,500 after ASIC identified concerns regarding LAR meeting its responsible lending obligations and its supervision of franchisees.

LAR provides consumer leases nationally through a franchise model, including in regional and remote areas of Australia such as the Tiwi Islands, Katherine, Broome and Thursday Island which have a high Indigenous population and limited options for purchasing household goods. LAR mainly leases household goods to low-income consumers, including those who receive payments from Centrelink.

A Court Enforceable Undertaking requires LAR to remediate affected consumers, appoint an independent compliance consultant,

and pay a Community Benefit Payment of $100,000 to The Smith Family.

Three infringement notices totalling $157,500 were also issued for concerns relating to responsible lending failures following ASIC’s review of LAR’s consumer lease contracts.

LAR paid these infringement notices on 27 September 2018.

ASIC entered into the EU and issued the infringement notices as it was concerned

38 Business Franchise Australia and New Zealand

that low-income consumers often have little flexibility in their spending and may have to go without essential items or default on other financial commitments, including rent and utility bills, due to responsible lending failures by firms. LAR will provide remediation to affected consumers, including those who made excess payments or were charged excessive late fees. https://asic.gov.au/

Coles opens first newformat store in Melbourne

Supermarket giant Coles opened the doors to its first Coles Local store in Melbourne’s Surrey Hills on Tuesday, unveiling a completely new look and smaller format.

The rustic style of the neighbourhood store (the traditional red-and-white design is nowhere to be seen) suits the tailored, sustainable offering that the store promises.

About half the size of a full-size Coles supermarket, the new store is approximately 1280sqm and designed specifically to meet the needs of the local community with a range of local and imported products.

Pandora scaling back new stores as part of global reset

Customers can take advantage of the store’s in-store barista and chef, a food waste digester, 100 per cent Australian-grown fresh food, as well as a new range of Coles Local branded products.

Jewellery retailer Pandora has unveiled an initiative that it hopes will reignite sustainable revenue growth, Programme Now, after group revenue dropped 3 per cent in the third quarter of 2018.

Coles CEO Steven Cain said the new store gives the community “the convenience of a supermarket with the character of a specialty store”.

“The great thing about Coles Local is that it makes life easier for our customers and helps them explore their love of food. Our customers have told us they’re often juggling shopping with a busy family and work schedule, so there will always be a friendly team member who can help them find the specialty products they want to take home for their families,” Cain said.

The Surrey Hills store is focused on supporting Australian suppliers, sourcing products from Backyard Honey, Meatsmith, Brunetti, MoVida and more. Its fresh food offering including meat and seafood is 100 per cent Australian-grown. https://www.coles.com.au/coles-localunveiled

Under the programme, Pandora will significantly reduce its franchise acquisitions and scale back new store openings. For the stores it does open, it will concentrate on growth markets, such as China, India and Latin America. It hopes the move will grow like-for-like sales, if not total sales.

In order to achieve this, the business plans to enhance its marketing, personalisation, digital and e-commerce capabilities, as well as the in-store customer experience.

Pandora also noted that part of its success moving forward lies in execution in all parts of the value chain, as well as more closely coordinating parts of the business to work in tandem, to reduce costs.

The implementation of the programme, as well as the weak Q3 results, however, have led the company to revise its expected FY18 financial guidance.

Pandora has cut its annual revenue forecast from between 4 and 7 per cent to between 2 and 4 per cent, or DKK 1.4 billion to DKK 1.2 billion ($296 million to $253.9 million).

“The third quarter results were unsatisfactory and we adjust our full year guidance,” Pandora chief financial officer Anders Boyer said.

“We have taken the first major step in the programme today by changing our network expansion plan. We have confidence in a strong future for Pandora and will use 2018 and 2019 to reset the business.”

Pandora expects revenue and total like-for-like growth to be impacted through to 2020 by the planned reduction of mark-downs, though this is likely to cause a margin neutral result on the group level. https://au.pandora.net

Business Franchise Australia and New Zealand 39

FE ATUR E : r e ta i l fr anch isi ng

FE AT U R E A R T I C L E

retail

franchising

an industry on the rise rises from last year, and shows that retail is still a growth industry year-on-year, albeit it small and despite a continuing squeeze on the economy.

The options are endless

As a retailer, or potential retailer, your product is the most important component in your business. It should be top quality and something you believe in.

However, it cannot stand on its own. If you don’t have a sound business plan, a strong marketing strategy and a firm grasp on your financial status – the quality of your product becomes second tier.

To succeed in retail, you must be a shrewd business person who considers all facets of the business.

It’s a common misconception that the retail industry can be narrowed down to a variety

of clothing stores. In actuality, retail is so much more than what’s on the rack. Nearly every store in every shopping centre is a cog in the capitalist economy that is retail. Any business focused on the sale of products, is a part of the huge industry of retail. In fact, any business that provides goods and services created solely for consumers wants and desires could be considered retail.

Retail could be high end products or a giant department store, a two dollar shop or toy store. Either way, there are a lot of different retail franchises that are successful and well known throughout Australia and New Zealand. For investors looking to explore different types of opportunities that focus on customer services and sales, a stroll through the local shops can help determine which type of retail best suits your personality and interests.

An industry on the rise According to recent Retail Trade figures by the Australian Bureau of Statistics, Australian retail turnover rose 0.5 per cent in October 2017, which followed a 0.1 per cent rise in September 2017. This follows similar

40 Business Franchise Australia and New Zealand

Do you have visions of owning your own quaint little dress shop in the local village, or a big name coffee house in the flash shopping centre in the city? Want to get your hands on some of this money being handed over by eager consumers?

These are tempting ideas, but tread carefully.

Over the years, global economies have affected nearly every industry. Australians are much more selective now with their money. Consumers are more conservative, more willing to seek out a ‘good deal’ and more willing to wait for the items they want.

This means retailers are competing in a highly competitive arena, as they fight to win the dollars that are being spent.

On top of this, commercial rental rates have skyrocketed, with large shopping conglomerates pushing for leasing rates based not on what the market can bear, but what they can scrape out of their tenants.

So, if the cost of doing business has gone up, is it still worth the risk of entering the retail market? Of course it is, as long as you do your due diligence.

Security in franchising This is where the benefits of entering the franchise industry come into play. If you know you want to own a corner bakery, why

FE ATUR E : r e ta i l fr anch isi ng “Despite the drop-in consumer confidence, people are still spending. Perhaps not as quickly or as easily as before – but they are still spending.”

not purchase a bakery franchise? Although it is romantic to envision the sign over your bakery having your own name on it, this would also be symbolic of the situation to follow: you would be on your own. You would have to develop your own business plan, secure funding, choose a site, negotiate your lease, supervise your fitout, formulate a marketing strategy, source your products, and then actually run the business. Are you tired yet?

Imagine if all of this work had been done for you already? This is the beauty of franchising; a great majority of the work is already sorted. Retail is romantic, in a sense, but it is also risky. As opposed to the service sector, or the work-from-home business options, in retail you have bigger costs and bigger risks. Franchising is a way to minimise these risks for you.

A support network Despite the drop-in consumer confidence, people are still spending. Perhaps not as quickly or as easily as before – but they are still spending. Being part of a franchise system that has weathered previous economic storms, and knowing that you are an integral part of a larger network, can give you the strength and knowledge to not only survive retail lulls, but continue to prosper.

Online spending Along with the physical site you eventually choose, hopefully with the help of your franchisor’s site selection strategy, you also now have an online storefront to consider.

According to the NAB Online Retail Sales Index, online retail spending in Australia currently stands at $23.28 billion to August 2017, which accounts for around 7.5 per cent of traditional retail spending. This figure is up 10.3 per cent from last year, and is surely poised to keep growing. Social Media is a powerful tool, and one that can not be ignored. The benefits of utilising the social media platform include reaching a large audience to develop and instill brand awareness, increasing the effectiveness of marketing plans and creating an interactive experience for your current and potential customers.

“Retail could be high end products or a giant department store, a two dollar shop or toy store. Either way, there are a lot of different retail franchises that are successful and well known throughout Australia and New Zealand.”

You as the driver

passionate about your product, committed to offering the best service to your customers, and willing to work hard to make your business successful.

In the end, the choice will be yours.

Whether you decide to go forth into the world of retail and whether you choose to do this as part of a franchise, it is ultimately up to you to define your success. You must be

Enjoy our retail feature in this issue of Business Franchise Australia and New Zealand, full of expert advice, insightful interviews and interesting profiles on many of the industry leaders in retail franchising!

Business Franchise Australia and New Zealand 41

FEATURE : r e tai l fr anchising

e x per t a dv i c e

Taking it off-line

This holiday season has once again seen more shoppers move towards online shopping. How can retailers win back customers and lure them into bricks and mortar stores? Ironically, the answer is digital.

42 Business Franchise Australia and New Zealand

Our lives are busier, and we are fitting more into our days than ever before. This is the case for both our working and personal lives.

Watching a television show or a movie from the couch was once relaxation, yet now, it is not uncommon for people to unwind with the latest Netflix offering plus their phone or tablet handy for social media updates, emails or browsing online. In fact, browsing online stores has become a way to relax for many people. According to research undertaken

by PayPal, 69 per cent of Gen Z shoppers (22 years of age and younger) shop online for relaxation – the same figure as watching television. And this trend is not just a matter of age, 35 per cent of Baby Boomers (those aged between 50 and 64 years of age) also enjoy online shopping as a way to unwind.

The cost on in-store retailers The change in behavior, combined with the attractiveness of online shopping, is causing significant headaches for the retail sector. The rapidness in the growth of online shopping cannot be overstated, or underestimated. Research undertaken

by Roy Morgan shows that over a twelvemonth period to March 2018, 9.46 million Australians aged 14 and over purchased something online in an average four-week period – an increase of 2.3 million people since 2014.

As more people purchase online, and combined with rising labour costs, rent and fit-out and merchandising costs, bricks and mortar retailers are struggling.

The lure of online shopping There is much to like about online shopping – some of which is hard for bricks and mortar stores to match.

Promotions such as free shipping and returns are highly attractive to online shoppers, not to mention a range of payment options including the popular AfterPay system, which spreads payments across several weeks, make online shopping highly desirable.

Furthermore, saving time in car parking and ease of comparing features and price online are factors that customers love.

We are also seeing a number of fascinating online tools becoming available to help people with their internet purchases. For example, Ray Ban offer a ‘virtual mirror’ online to allow customers to see how the sunglasses will suit their face.

And they are not alone in developing these sorts of augmented reality services to assist customers in their purchases. According to research undertaken by PayPal this year, five per cent of 404 online retailers surveyed had developed an interactive experience for customers, while a further 32 per cent said they were developing, or intending to develop an augmented reality experience.

These sorts of services also get the thumbs up from customers, with 51 per cent of mobile commerce shoppers wanting to see further augmented reality services. Customers enjoy having the ability to see the products in a different light or even share with friends via text message or messenger services.

There is no doubt this sort of app development can be expensive, it presents a strong opportunity for retailers to engage with online shoppers and those using mobile devices first.

A clever use of technology that interacts with customers that is fun and engaging can capture the attention of shoppers.

Social apps that allow people to engage with brands through photography, social media and gaming can encourage users to spend more time on a brand’s website or apps. Furthermore, specific and relevant information and a well-designed website can help give the shopper the information they need to simplify their buying journey.

Yet doubts remain…

Despite the convenience and range of services offered to online shoppers, many customers still have concerns about buying online.

Of 1012 customers surveyed by PayPal, 88 per cent were worried about buying the right size, 82 per cent were concerned with how the item would look on them at home and 45 per cent felt they were more likely to purchase after being able to try the item.

This offers significant opportunity for those operating in the retail space: people still like to see the product in person.

And the services appear to work. With 67 per cent of consumers browsing retail sites simply for fun with no intention of buying, yet an astounding 77 per cent made an impulse buy.

There are also other benefits to the in-store experience for customers including the immediacy of their purchase – they can buy a piece of clothing that day to wear to an event that night, or pick up a gift on their way to a party.

The PayPal survey identified that, while a strong demand from customers for augmented reality services, 25 per cent of businesses indicated they have no intention to develop such services.

The social experience of shopping with family and friends remains a strong drawcard, coupled with many shopping complexes offering extras such as cinemas and dining.

Business Franchise Australia and New Zealand 43

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“A clever use of technology that interacts with customers that is fun and engaging can capture the attention of shoppers.”

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e x pert advi c e

How to harness this While the trends seem to be encouraging a move towards online shopping, there is no reason that retailers can’t harness the power of mobile and digital shopping to encourage customers back to stores.

Once a customer may have looked in eight or nine physical stores for the perfect bag, they might now undertake their research on their phone or computer, narrowing it down to a couple of bags they want to look at in person based on price, quality, fabric, size or other factors.

The critical opportunity here is to engage the customer and ideally, move them in store as one of their choices.

One way to look at it is that online shopping is now window shopping. And instead of luring customers in-store with dramatic visual merchandising, it is now engaging them with apps, social media, website and games to then invite them into your store.

Successful online tools may engage audiences but then facilitate them to come into store.

It’s important to consider the benefits people may gain from online shopping but adding the benefits of in-store purchasing to make the bricks and mortar outlet a perfect combination.

For example, if time and convenience in online shopping is a factor for your clients, what online tools could support customers.

Online stock availability checkers or click and collect options could drive digital sales back in-store.

If customers like the ability to compare

products and prices to help them make their decisions, consider how tools that offer comparisons between your stock could support their decision making, or whether apps that allow customers to personalise goods and share with their friends via social media or messenger service for a second opinion could encourage customers to then visit your store to see the products in person.

Consider how best to promote other services offered in-store to encourage people back to the retail space? Personalisation of products, events, photo set ups for selfies, loyalty savings or exclusive sneak peeks at new stock may have a place in the mix and can be promoted via online apps or games.

Marketing promotions and competitions may still be useful as part of the mix, the reality is that they alone will not lure shoppers in, particularly with the range of online services now available. Using these online services to engage with customers can make a big difference in bringing them back to stores.

“The change in behavior, combined with the attractiveness of online shopping, is causing significant headaches for the retail sector. The rapidness in the growth of online shopping cannot be overstated, or underestimated.”

augmented reality, social media, website design, apps and games, the franchisor and franchisee can harness the power and benefits of online shopping to then guide shoppers through their buying experience in-store, while delivering convenience for the customer, superior product and value.

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

The questions for franchising

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.

The interaction of online and retail has been long-debated within the franchise sector for years. Are online sales the domain of the franchisor or franchisee? How is the revenue best split? How are territories allocated online vs in-store? These questions have never been completely answered by many brands, and continue to be problematic.

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.

One way to address this issue is to look at the role of online vs in-store sales as a collaboration, not a competition. By using

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

44 Business Franchise Australia and New Zealand

Design and Innovation Leaders

Integrated Marketing

Patented Products

Build Yourself a Business With the market leaders by your side, establishing and managing your own Window Coverings business is a highly rewarding experience. Having partnered with small business in Australia for over 60 years, we understand the support behind the products are just as vital for business success. The Luxaflex Window Fashions alliance programs provide comprehensive marketing, training, development, networking, incentives, events and showroom fitouts to support our innovative high yield product range.

With opportunities available in numerous prime positions, the time to join our highly successful network of Luxaflex Window Fashions showrooms is now. Contact Damon Gardner on 02 9638 8000 or damon.gardner@hunterdouglas.com.au to discover the possibilities of the Luxaflex Window Fashions alliance programs.

Business Training & Support

Š Copyright 2018 Hunter Douglas Limited [ABN 98 009 675 709]. Ž Registered Trade Marks of Hunter Douglas Limited. C15499_01.2019

Business Franchise Australia and New Zealand 45

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pr o file : C lark R ubber

The Clark Rubber Commitment Clark Rubber franchisees benefit from a proven franchise system. Not only does Clark Rubber provide their franchisees with the knowledge and skills they need, but also ensure that franchisees have tangible business tools and the support needed to help them run their business.

The team at Clark Rubber 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, investments in brand development and national retail advertising campaigns are paramount across all relevant and current channels to ensure that they are 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.

Clark Rubber Pool Care Service Territories 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 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.

Coupled with Clark Rubber’s extensive product range, you have the opportunity to build a strong business and retail destination within your local market.

The uniqueness of Clark Rubber stores with a product range across Pools, foam and rubber, provides a strong market position

46 Business Franchise Australia and New Zealand

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.

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!

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

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 have 60 stores nationally. Our award winning 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 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: • • Clark Rubber Retail Stores • Starting from $420,000 plus GST • •

Clark Pool & Spa Shops Starting from $147,500 plus GST Clark Rubber Pool Care Service Territories Starting from $49,500 plus GST

Unparalleled national and local support Proven marketing and business strategies Group buying power No franchise renewal fees Turnkey development and set up Retail brand celebrating 70 years

•

Multi Award winning franchise system

•

Unsurpassed initial training and ongoing 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

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e x pert advi c e

Retailers must embrace customer feedback to deliver a superior customer experience

In this highly-connected age, customers are quick to share their experiences with a broad network of people.

There have been numerous recent examples where negative experiences gain a wide reach through social media platforms. People value the opinions of their peers and if they hear a brand has failed to provide a positive customer experience, theyâ&#x20AC;&#x2122;re more likely to vote with their feet, taking their business elsewhere.

While this can be a worry for businesses, the benefits of social media fall both ways.

Customers can share their experiences, good and bad, but retailers can also listen to what their customers are saying. In theory, this should make it simple to deliver an experience that delights customers and has them lining up not only to buy from the company again but also to recommend it to their friends.

Customer experience (CX) is therefore a key differentiator for brands in todayâ&#x20AC;&#x2122;s competitive and globally connected marketplace. To deliver superior CX, offline retailers must collect, analyse, and act on real-time feedback from customers about their experiences and expectations, as well as their future intentions to recommend or purchase. However, according to new Qualtrics research, a significant proportion of shoppers in Australia and New Zealand believe their feedback never reaches someone who can make a difference.

Qualtrics conducted a multinational survey of 1,700 in-store shoppers, including respondents from Australia and New Zealand, to understand customer services concerns across the retail industry. The insights from the research showed that customers believe their feedback is ignored 45 per cent of the time regardless of whether complaints are made via social media, surveys, or directly to staff. Despite this, shoppers still have high expectations for how quickly retailers should respond to questions

48 Business Franchise Australia and New Zealand

and complaints, with 42 per cent of shoppers expecting a response to their social media post on the day of posting. The majority of customers expect a response within a few days (82 per cent).

The research showed the impact of negative experiences on new customer acquisition, finding that for 59 per cent of customers their expectations about retailers are set through social media or referrals from family and friends. Further, 58 per cent of shoppers blame a retailer if one of their employees provides unfriendly or unhelpful service.

That heavy reliance on previous experiences demonstrates that itâ&#x20AC;&#x2122;s critical for retailers to deliver a consistent, seamless experience every time and more importantly, act on the feedback they receive. Those that fail to do so are missing out on a huge opportunity to grow their business. Worse, they can contribute to a narrative in which their business is portrayed as the villain, perpetuating a perception that could snowball into further negativity for the

Vicky Katsabaris | Head of Customer Experience Growth and Strategy, Principal Consultant | Qualtrics

unhappy customers into loyal ones. In this instance, responding in the moment is extremely valuable. retailer, affecting its ability to attract new customers.

Most companies offer a platform for feedback, whether it’s a simple Facebook page or more formal feedback mechanisms.

However, too many companies gather this feedback then fail to act on it. Retailers who do this may as well stop asking for feedback altogether. The damage that can be done by failing to act on feedback can be significant, and can be worse than never asking for feedback at all. They risk their customers developing a more intensely negative opinion of the brand.

This is because people want to be heard.

When a company says it’s listening and they act on customer feedback, they demonstrate that they care. Their customers are more likely to engage with that company if they believe their voice has been heard and their suggestions considered. Even if the customer’s initial experience was negative, by demonstrating that the business is eager to rectify the situation, retailers can turn

Retailers also need to know which feedback to respond to. Retailers who have sophisticated CX management platforms are able to understand what truly matters for customers, and what doesn’t. To be successful, retailers must gain an insight into overall customer behaviour, not just the opinions of individuals. They also need to learn how to identify and attract key demographics to their store. By implementing feedback channels, retailers can begin to build a more comprehensive picture of what customers like and dislike, and what drives certain behaviours.

listening posts at the right moments to learn about customer needs in real-time – not annually or in an ad-hoc way. Retailers need to constantly review the customer experience they’re delivering. Working with feedback in real time is an absolute requirement for retailers that want to close the customer experience gap. Doing this across all the key customer touchpoints and moments that matter and then providing their people with timely access to this feedback will deliver the greatest benefits.

Responding to customer feedback at scale is also important because not every customer takes the time to provide feedback.

By aggregating customer feedback and understanding what matters, especially for high value customers, you’re able to make changes crucial for business growth. By focusing on customer needs, retailers can identify the right areas for improvement as well as potential areas for business growth and further success.

Vicky Katsabaris is a principal consultant and customer experience subject matter expert at Qualtrics. She provides expert guidance to organisations implementing customer experience programs. Prior to joining Qualtrics, Vicky spent 3 years as the General Manager of Customer Advocacy strategy at Telstra, leading the team responsible for developing Telstra’s corporate strategy for improving customer advocacy. Prior to Telstra, Vicky was the Director of Customer Experience at VMware where she lead the implementation of the CX program across Asia Pacific, Japan.

Doing this successfully means installing

www.qualtrics.com

Business Franchise Australia and New Zealand 49

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“Retailers also need to know which feedback to respond to. Retailers who have sophisticated CX management platforms are able to understand what truly matters for customers, and what doesn’t.”

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pr o file : Carpet Call and Solomons Flooring

Opportunities at

Carpet Call and Solomons Flooring!

The Carpet Call and Solomons Flooring group has been a part of the Australian flooring industry for decades. Solomons started in Adelaide back in 1890, with their first store on Gouger Street and Carpet Call opened their first store in Brisbane in Alderley in 1975.

Since then, both brands have been installing high quality flooring throughout Australia.

Now there are over 120 retail and franchised stores nationally.

The group have over 55 franchised stores in both brands across Australia and are well represented in all capital cities and many regional towns and cities. There are fantastic opportunities for growth through Queensland and New South Wales in particular, as well as small pockets of areas in the other states.

The beauty of the model is that it works extremely well as a stand-alone flooring business with a focus on carpet, vinyl, timber and laminates - but it also can be bolted onto an existing business, like tile shops, blinds and shutters retailers or even home furnishings businesses. The Modular program means that with as little as 40m2, existing retailers can add a Carpet Call or Solomons Flooring franchise into their existing business. The great benefit of this is low set up costs as well as little to no increase in overheads like wages, electricity, security etc.

Over the years, tens of millions of dollars have been spent establishing the Solomons and Carpet Call brand names. This symbolises experience, trust and consumer confidence, with an undeniable reputation for quality, range and genuine value. This position of strength maximises benefit for your investment.

NATIONAL ADVERTISING Advertising has always played a pivotal role in the groupâ&#x20AC;&#x2122;s success. The consistency and professionalism of the high impact advertising campaigns makes your selling job that much easier. National advertising expenditure is constantly increasing, due to the growth in existing store sales as well as new store openings across Australia. Carpet Call and Solomons Flooring utilise their advertising spend wisely, with a combination of strategically placed national TV campaigns, coupled together with full colour national distributed catalogues, and online marketing strategies.

FRANCHISEES ARE NOT COMMITTED TO LARGE STOCK HOLDINGS The Carpet Call Group maintains a comprehensive stock holding of carpet, timber, laminate and vinyl in the industry.

Carpet is cut and distributed to the franchisee on an as required basis. This is all handled by a computerised stock enquiry and order processing system. You are relieved of the huge financial burden of carrying stock. This single factor has been a major contributor to past failures in the floorcoverings industry. Your working capital is not tied up in expensive stock and there are no short ends or wastage for you to dispose of.

50 Business Franchise Australia and New Zealand

LOW-COST ENTRY GETS YOU OFF TO A GOOD START Compared to other franchise operations, your initial entry cost into the Solomons or Carpet Call Franchise System is extremely low. This allows you to use your valuable capital for all those important aspects of the business â&#x20AC;&#x201C; positive cash flow, adequate working capital, store set up and signage, local promotion and advertising and so on. For as little as $80,000 you can open a brand-new store and hit the ground running on the path to financial independence.

SUPPORT IS ALWAYS THERE Each state has a dedicated State Franchise Manager who will assist you in the opening of your business, initial and ongoing training and support, marketing planning and to answer any questions you have throughout your time as a franchisee. On top of this, the network is backed by some of the most trusted names in flooring. Companies like Victoria Carpets, Feltex, Godfrey Hirst and Karndean are all available to offer support and training whenever you need it.

For a confidential discussion, please contact Jack McClane, National Franchise Manager on 0402791187 to see if owning a Solomons Flooring or Carpet Call store is right for you! jack.mcclane@floorstores.com.au

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e x pert advi c e

Driving Sales With Social Media:

An Expert’s Guide by the Head of Vistaprint Australia, Melissa Haywood With the rise of social media over the last decade, information has become easier to access and disseminate than ever before. In creating a data-abundant and hyper-connected world, these online communities have become well-known tools to bring brands and consumers together in the mere touch of a button.

Put simply, social media sites and applications offer business owners greater marketing opportunities. Social media allows brands to build and understand their market in a more intimate and efficient way than through traditional media’s one-way channels of communication.

when she graduated from university into a career in Direct Marketing. She built her career first by managing databases and direct mail, followed by an expansion into a Marketing Director role that also managed email, website, display marketing, search marketing, and social media.

Head of Vistaprint Australia, Melissa Haywood, believes that social media enables retailers to connect meaningfully with consumers and ultimately drive sales for their business. “When equipped correctly, social media is an important and almost essential way for small businesses to stand out from competitors,” Melissa says.

“Platforms like Facebook, Pinterest, and Twitter should be at the forefront of retailer’s minds in effectively reaching consumers with promotions to increase their bottom line.”

Today, Melissa applies her skills to the exciting world of customised products for Vistaprint, empowering everyday Australians to grow their own businesses successfully, no matter the size. “Throughout 20 years of providing top-quality printed products at affordable prices, Vistaprint has empowered millions of business owners around the world to market themselves professionally,” Melissa says.

Melissa’s career began almost 20 years ago

52 Business Franchise Australia and New Zealand

“From day one, Vistaprint has been committed to helping Australians build their business to be stronger than ever.

Melissa Haywood | Head of Vista Print Australia

“Social media is an opportunity for you to extend your relationship with the customers who have helped build you and your business up along the way.”

Our company vision continually inspires me to consider innovative solutions to connecting brands and consumers, whether it be through Vistaprint’s premium variety of business cards or cutting edge digital marketing tools.”

To give you the shortcut to success, Melissa has shared her expert tips promoting sales for your business with social media. Whether you are already familiar with using social media or have had no experience, Melissa says maiximising social media as a marketing tool comes down to five key rules:

1. Be where your audience is Why spend precious time and energy on platforms that your key demographic are not engaging with? Look at your target demographic and figure out where they’re most active. If your business is B2B based,

then LinkedIn is where you should invest time and energy. However, Instagram is perfect for those targeting B2C, especially a younger demographic.

From here, you can build you audience by using relevant keywoods to find the right social networks and friend, follow, and connect with individuals with profiles related to your industry. Remember, no matter how suitable your platform or convincing your message is, without a following, your efforts will fall on deaf ears.

2. Show off user generated content Social media is an opportunity for you to extend your relationship with the customers who have helped build you and your business up along the way. Whether it be reposting positive testimonies on your social media pages, or recognising their posts and tweets: like, follow, and share their messages- this acknowledgement will be recognised by your

existing customers. These simple interactions are more authentic and effective than any forced advertising, as you are letting actual customers do the selling and convincing for you.

By engaging with market rather than writing at them with a message, you will create opportunities for conversation about your product or service to naturally develop. Social media should be used as a listening tool to increase the prospects that consumers will consider and remember your call-to-action among the cluttered market of brands vying for attention. Part of creating a community around your business is engaging with real people posting about your product. You can build this content from actual customers by creating a branded hashtag and incentivising its use through giveaways. Another strategy to generate interest and showcase real people using your product is by creating a Facebook group related to your product or service.

Business Franchise Australia and New Zealand 53

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“Why spend precious time and energy on platforms that your key demographic are not engaging with?

Look at your target demographic and figure out where they’re most active.”

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e x pert advi c e

“Arguably the most important way to promote sales is through eye traffic.

As almost every business’ sales campaigns are multi-dimensional, it’s important to utilise every available resource- and increasingly, social media- to share promotions, deals and sales with your customer base.”

3. Boost eye traffic through ‘influencers’ Arguably the most important way to promote sales is through eye traffic. As almost every business’ sales campaigns are multi-dimensional, it’s important to utilise every available resource- and increasingly, social media- to share promotions, deals and sales with your customer base. The more people who know about your campaign, the more sales you will close.

A ‘go-to’ guide to social media marketing would not be complete without an influencer engagement strategy. The hype around profiles with audiences of thousands is exactly that- the mass of trusting followers that influencers reach with their daily posts.

Identifying and negotiating collaberations with key influencers among your target market has the power to drive sales- so

coordinate discount codes, product reviews, how-to-content, and product features with these thought leaders to promote your brand. Influencers are sources of increasingly creative content which you should leverage to tell a unique and engaging story about your brand.

4. Consistency is make or break You must ensure to use the same handle for all of your social media platforms, as branding plays a significant impact on your growth across social media. If you are not easily accessible across platforms, it makes it near impossible for valued and dedicated customers to show their support by liking, following and reposting.

Creating a content calendar- that is, planning your social media posts- will also assist you in seeing consistent enagement

from your audience. Preplanning your strategy has the multibenefit of making it clear for you to determine which activities to assign to each of your team members.

5. Always link back to the product To make it easier for your customers to purchase your products, always ensure you have created click-through from all social platforms straight to your website. If it’s too complicated in any way, a potential customer will turn their attention elsewhere. Take advantage of social media features designed for business users through streamlined tools like Instagram’s product tagging and by including links in your bios and within your content.

Melissa Haywood’s career began almost 20 years ago when she graduated from university into a career in Direct Marketing. Today, as the Head of Vistaprint Australia, Melissa applies her skills to the exciting world of customised products, empowering everyday Australians to grow their own businesses successfully, no matter the size.

To find out more, email eupublicrelations@vistaprint.com

54 Business Franchise Australia and New Zealand

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BoConcept are planning to open at least seven more stores in Australia within the next four to five years, and are looking for franchise partners who have the synergy and resources to be a part of this established and proven franchise model.

Opening Up to Australia Bill Zheng opened his first BoConcept store in 2012, and has since opened a second Sydney store. “My advice to new franchisees is this: if you work hard and follow the system, the financial rewards will follow.

When you can achieve the financial results you are looking for, with the support of an international, established business behind you, why wouldn’t you join?” says Bill.

Africa. As BoConcept begins expanding within Australia, Australian consumers will continue to have access to be best quality Scandinavian design right on their doorstep. On top of the consumer benefits, entrepreneurs and business savvy Australians also have the exciting opportunity to join this expanding brand as an Australian franchise partner.

and expertise, BoConcept is ready help all of their customers create modern and sophisticated homes and living spaces. The organisation offers an array of benefits for their franchise partners, making BoConcept the superior choice in retail franchises.

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The team at BoConcept have a passion for producing impeccably crafted pieces for the home, with Scandinavian design principals at its core. As an organisation with style

When BoConcept’s Sydney franchise partner, Bill Zheng, first opened his store, he worked closely with Head Office to plan and begin the store opening process.

56 Business Franchise Australia and New Zealand

Support of a Global Brand

In conjunction with the marketing team, the dedicated Store Opening team at BoConcept are responsible for supporting franchisees in a wide range of aspects when opening a new BoConcept store. This varies from the Store Designers designing and completing the store layout in a range of sizes to the Opening Support team who assists the franchisee in warehouse set up, store routines and more.

The BoConcept IT system supports the processes in the stores by making administration, reporting and performance evaluation easier to access and work with.

This ensures that Bill no longer needs spends hours each week inputting codes into a generic stock control system. A business intelligence system has been added to enable the use of sales statistics and more from the IT system database. In addition to this, supply chain management and benchmarking are streamlined throughout the chain with logistics and performance improvements as a result.

A Superior Franchise Option By collaborating with world renowned designers, BoConcept continuously cultivates brand credibility and integrity, a huge benefit for their many successful franchise partners. BoConcept as a brand is globally renowned for its style, quality and fair price. Becoming a BoConcept franchisee means joining the ranks of this successful, stylish and profitable organisation. With 15,000,000 website visitors and 4,000,000 in-store visitors per year, you know you are partnering with a brand and company you

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An experienced marketing team supports and advises franchisees in all communication aspects as well as provides all the international, national and local materials required to efficiently generate in-store traffic, including catalogues, flyers, in-store materials, advertisements, direct mails, social media content, press releases and much more.

“An experienced marketing team supports and advises franchisees in all communication aspects as well as provides all the international, national and local materials required to efficiently generate in-store traffic, including catalogues, flyers, in-store materials, advertisements, direct mails, social media content, press releases and much more.”

can take pride in and find success with. With premium quality and design at reasonable prices, BoConcept franchisees are able to offer their customers affordable luxury.

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 focused 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 model for generating quick cash flow, ideal for their franchise partners. These numerous franchisee benefits, combined with the superior customer experience offered by BoConcept mean you can design your perfect lifestyle with a BoConcept franchise.

The BoConcept Customer Customising and designing furniture and accessories according to the needs – and dreams – of their customers, BoConcept appeals to the urban-minded. Customers can choose their own design, size, shape, colour and material of an expansive range, ensuring a coordinated look where design, colours and materials always match.

Simplicity and functionality are at the core of BoConcept’s values, and the modern and original furniture designs are specifically designed for the urban lifestyle.

As Australian cities expand up, rather than out, this lifestyle is only becoming more common. Adaptable to fit big or small spaces, clients can customise their furniture to adapt to their life and living spaces, helping them to get the most of their available space.

BoConcept provides their franchisees with all the tools they need to offer their customers the best of the best. Their interior design service with complimentary systems and furniture customisation options make it easy for franchise owners to offer additional services to their local customers - and that’s why BoConcept is loved by its customers and franchise partners across the world.

Limitless Potential There is so much potential within the Australian market to grow, develop and succeed with BoConcept, with franchise opportunities available for the right people across the country. The interest and capacity to have one or more BoConcept stores is greatly encouraged.

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 57

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How do you recruit and select

the best sales people?

At this busy time of year, many companies will be looking to hire new salespeople. Get the selection wrong and it will cost you somewhere between half a year and a full year of their annual target, plus reputation damage. Get it right and you’ll have delighted customers and a growth asset for your business.

Most companies rely on unstructured interviews and proprietary psychometric tests for sales recruiting. And the results are abysmal. You must use a realistic simulation to assess sales candidates.

Multiple studies confirm that work sample and ability tests are the most valid and reliable selection tools across a wide range of employment categories. Unstructured interviews rank way down the list of valid techniques. The issue for sales recruitment is; how to create an efficient repeatable work sample test for a role that it is mostly about conversation skill?

Enter the sales simulation. Prepare a scenario for a common selling situation — a page of text or two or three PowerPoint slides is sufficient to describe the scenario for the candidate. Hidden from the candidate will be a list of issues, objectives and opportunities they must probe for. Give the candidates a day or two to prepare.

One person in your company (or a consultant) is designated to play the role of ‘customer’. Its best if that person has not been influenced by the candidate’s cvs. The simulation should be performed over a recorded video conference so that the interview can be easily shared with the selection committee.

In the simulation, the ‘customer’ will attempt to play their role in standard way for each candidate; answering all candidate questions without being difficult (there’s no need to add additional stress). The simulated sales conversation typically lasts between 10 and 25 minutes. After the simulation, you should ask a couple of specific followup questions and get the candidate to write a follow-up email, if writing skills are important.

Carefully review the simulation video and score against these categories: • Rapport building. How did the candidate establish rapport at the beginning of the meeting? Did they share personal stories?

• Situation understanding. How did the candidate engage the customer to understand their situation? You are looking for diagnostic questions and empathetic listening • Probing for objectives and issues.

Was the salesperson able to uncover the motivations of the buyer? What does the buyer want and what do they not want?

• Consequences. What will it mean for the buyer to achieve their objectives? Can the candidate discover both business and personal consequences for a purchase?

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FE ATUR E : r e ta i l fr anch isi ng • Constraints. Was the candidate able to uncover any constraints that need to be taken into account in this buying situation?

“Multiple studies confirm that work sample and ability tests are the most valid and reliable selection tools across a wide range of employment categories.”

• Proposing and asking. How did the candidate ask for the business or propose a suitable next step? You are listening for specific phrasing.

• Planning and preparation. How well did the candidate research your company and prepare for the simulated meeting?

I’ve performed hundreds of candidate simulations across multiple industries and it’s my experience that fewer than 10% navigate through all of these aspects of a sales conversation. It’s an exceptional candidate that uncovers the consequences for the buyer and their constraints and very few know how to ask for the business.

Follow-up questions No doubt each candidate will claim past sales successes but how do you know if they’re telling the truth? You can assess storytelling skills and their honesty by asking: “Tell me about the most important sale that you have made” You’re listening and scoring for • Is it a story? The best salespeople tell stories to teach influence and persuade.

Mike Adams | Author

Be wary of candidates that fail to respond with a narrative (a sequence of events).

• Is the buyer described in the salesperson’s story? Good salespeople solve problems for their buyers. Be suspicious if the story is just about the ‘heroic’ salesperson.

• Is it believable? True stories of sales success include references to good and bad fortune and vulnerabilities. Watch their eyes as they recall the events of the sale.

not just for the new skill but also for the learning process.

• A story that reveals their motivation for learning.

If you follow a structured selection process that includes a realistic simulation and tests for storytelling skill you’ll recognise and select the best salespeople!

You’re listening for

Mike Adams is a business storytelling specialist and author of Seven Stories Every Salesperson Must Tell. Mike has managed sales teams in the UK, Russia and throughout Asia for international corporations such as Schlumberger, Siemens, Nokia and Halliburton and has sold over a billion dollars of products and services over his career. Since 2014, Mike’s storytelling consulting practice has been helping sales teams find and tell their best stories.

• Immediate enthusiasm. Enthusiasm

Find out more at www.gifocus.com.au

Finally, you need to assess the candidate’s ability to learn new skills. They’ll need to learn about your company, customers and products and services. And business is changing so rapidly that continuous learning will be ongoing requirement.

“Tell me about the last new skill you acquired?”

Business Franchise Australia and New Zealand 59

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pr o file : the lott

When Australia dreams, we all win!

Are you looking to grow your business by selling a product Australians know and love? If so, franchising with the Lott – Australia’s Official Lotteries could be for you!

The Lott offers Australia’s official lottery games from NSW Lotteries, Golden Casket, Tatts and SA Lotteries. This includes games like Saturday Lotto, Monday & Wednesday Lotto, Oz Lotto, Powerball and Instant Scratch-Its. Investing in a the Lott franchise gives you the potential to increase revenue and join a strong Australian retail network that has been operating for more than a century.

A franchise from the Lott is the perfect complement to a range of small businesses; including convenience stores, convenience supermarkets, pharmacies, tobacconists, newsagencies and more.

General Manager Lotteries Retail Antony Moore said investing in a franchise with the Lott as a companion to your business could be the perfect way to drive additional traffic into your store.

“Adding the Lott products to your business attracts additional customers to your existing business, increases store visitation, and can

potentially add to your customers’ basket size,” he explained.

“With each product sold, you will receive a commission and importantly ongoing operational, marketing and retail support to make the most out of your lotteries business.

“Australia’s official lotteries have been operating for more than a century and the Lott is the trusted mark in the Australian lottery landscape. We continue to invest in in-store customer experiences, innovative marketing campaigns, and new retail image technology so our franchisees can reap the rewards.”

One long-standing franchisee with the Lott is Bishops News Nextra in Goondiwindi.

This outlet has been operating a the Lott

by Golden Casket franchise for 50 years and is testament to the ongoing support the Lott provides franchisees as their businesses change and grow.

Bishops News Nextra owner Jack Bishop said his grandfather, Victorian watchmaker Archie Bishop, first opened the store in 1911 to offer locals their daily dose of news and keep them up to date on the world’s current affairs.

“Since then, four generations of the Bishop family have worked in store and it has seen many changes to meet the changing needs of our community,” he said.

“You can’t beat the thrill of helping one of your customers become a lottery winner!

“After all these years, people always ask me how to win the big one. My advice has never changed – you’ve got to be in it to win it.

You can’t get crook at the fella that wins. If you’ve got a ticket in your hand, you’re in with a chance.”

Mr Bishop shared how much change he had seen over the years to the lottery business as well as changes in his store.

“Importantly, we’ve been prepared to change with the times and that’s how we’ve prospered,” he said.

“Lotteries has been a big part of our business for more than a century and long may it continue!

“We diversified a few years ago and started offering personalised engraving and gifts, which is the perfect accompaniment to the Lott and the newsagency side of the business. People often stop in, pick up a gift, grab a card and include an Instant ScratchIts or lottery ticket too.”

Incorporating the Lott in your outlet could be more attainable than you think. If you would like to find out more information, please refer to the website thelott.com/ franchisee or email franchiseenquiries@ thelott.com.

For more information please contact: Bronwyn Spencer the Lott, Senior Public Relations Executive 0457 731 671 franchiseenquiries@thelott.com

60 Business Franchise Australia and New Zealand

CRT

When Australia dreams, we all win!

Why join us at the Lott?

The Lott* offers Australia’s official lottery games which Australians trust and love!

Each year Australia’s Official Lotteries make dreams come true. With the help of our retailers, Australia’s Official government-regulated Lotteries play an important role in helping to support Australian communities with over $1.1 billion^ available for hospitals, schools and sporting groups. ^ State Lottery Taxes FY18 Australia-Wide (ex.WA).

We are Australia’s largest franchise network with almost 4,000 franchisees, operating across all of Australia, except for WA.

*The Lott represents Australia’s Official Lotteries which are sold by licensed entities: Tattersall’s Sweeps Pty Ltd, Tatts NT Lotteries Pty Ltd, New South Wales Lotteries Corporation Pty Ltd, Golden Casket Lotteries Corporation Ltd, and Tatts Lotteries SA Pty Ltd.

Business Franchise Australia and New Zealand 61 CRTV-14554-Retail Sales Leads Pack - Bus Franchise Ad.indd 1

17/12/18 8:59 am

e x pert a dv i c e

important

Industry Information Explained Self-Managed Super Funds; an update on the new Retail Leases Act; an explanation of Shareholder Agreements and Company Constitution; and what you need to know about business names and company names and trade marks?

The Retail Lease Act (RLA) regulates the relationship between landlords and tenants of retail shops.

The new legislation will be beneficial to both lessors and lessees.

The following is a summary of the main changes: • removes the minimum five-year term requirement for retail shop leases; • excludes leases of premises used for certain non-retail purposes from the RLA; • confers a right to compensation on a tenant who terminates a retail shop lease during the first six months because they were not provided with an appropriate disclosure statement; • reinforces the need for a landlord to be accurate when disclosing and estimating outgoings in the disclosure statement;

What is a Self-Managed Super Fund (SMSF)?

A SMSF is a superannuation trust structure that provides benefits to its members upon retirement, where the SMSF members are also the trustees of the fund.

If you already have a SMSF speak to us if you are looking to purchase a property through the SMSF as there are regulatory requirements that you must comply with. Borrowing or gearing your super into property must be done under strict borrowing conditions called a “limited recourse borrowing arrangement”. A limited recourse borrowing arrangement can

only be used to purchase a single asset, for example a residential or commercial property.

If you are considering setting up a SMSF, you must meet the “sole purpose test”. Contact us to discuss how we can assist you in setting up a SMSF and how you can use your SMSF to purchase an asset.

Changes to the Retail Leases Amendment (Review) Act 2017 (NSW) - what does this mean to you or business?

The Retail Leases Amendment (Review) Act 2017 (NSW) commenced on 1 July 2017.

62 Business Franchise Australia and New Zealand

• provides a specific time frame for return of bank guarantees to tenants; • excludes online sales revenue from turnover rent calculations except in certain cases; • prevents landlords recovering mortgagee consent costs from tenants; • allows the landlord to include certain management fees charged by the landlord as part of the outgoings; • clarifies the procedure for tenants to seek landlord’s consent to an assignment; • clarifies when the demolition provisions will operate; and • changes the time frames for return of signed leases and lodgement for registration.

Intellectual property often represents a significant asset of your business.

Imagine the well-known brands of Apple, Facebook, Twitter, Google or Yahoo without the ability to protect their brands internationally.

A registered trade mark is your businesses most valuable marketing tool, as well as an appreciating asset on your balance sheet.

Registering a trade mark offers the strongest protection to prevent or stop other businesses from using your business name. If you have invested time building your businesses reputation and identity around your business name, then you should protect it.

If you have any questions on whether a trade mark is right for you, please contact us. We can assist in registering your trade mark for your business and protecting it.

Company Constitution & Shareholder Agreement Explained As lawyers we are often asked to draft shareholder agreements. It is important to understand that not all shareholder agreements are the same. The circumstances and requirements for each company are different. Care should be taken when preparing a shareholder agreement.

A shareholder agreement is intended to work alongside the company constitution to govern the relationship between shareholders and directors with more specific rules, rights and obligations. Although the company constitution and shareholder agreement both govern similar rights and obligations, they do address different topics depending on the circumstances of the company.

A company constitution is governed by the Corporations Act 2001 (Cth). A shareholder agreement is a commercial contract which deals with specific management matters negotiated between the shareholders whereby the parties involved are able to contract whatever matters they wish to include in the shareholder agreement provided it does not conflict with the Corporations Act 2001 (Cth).

What you need to know about business names, company names, domain names and trade marks If you are in the process of setting up your business, it is important that you know the difference between business names, company names, domain names and trade marks.

It is a common misconception that the registration of a business name, company name or a website domain name confers some form of ownership or exclusive rights to the use of that name in Australia.

The reality is that it does not!

Only a registered trade mark will confer proprietary rights. Having a registered trade mark can provide legal protection for your business, its brand and goodwill and gives you statutory rights to prevent another business from using the same or similar trade mark.

Whether you’re a franchisor or a franchisee, consult the franchise lawyers at DC Strategy. Our end-to-end legal team ensure all your legal obligations are met to protect your business interests and give you the security and confidence to grow what matters most- your future.

This means creating documents and structures that are skilfully tailored to your specific business by people who know the ins and outs of franchise law.

Our experienced franchise lawyers know the Franchising Code of Conduct inside out. We’ll work with you to build an efficient, successful business that complies with the Code’s requirements. Our skilled team can work with you to draft or review legal documents, and can provide mediation and litigation services. Working collaboratively with the consulting, recruitment and brand & marketing teams, we deliver a holistic, thoroughly thought out service that’s helpful and relevant to you.

Contact us to discuss on how we can help in preparing a shareholder agreement for your company.

“It is a common misconception that the registration of a business name, company name or a website domain name confers some form of ownership or exclusive rights to the use of that name in Australia.”

Business Franchise Australia and New Zealand 63

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How to get your story idea to the local reporter

In the last issue I looked at what local reporters look for in their stories. Now that you have a good idea about that, the next stage is understanding how to get your idea in front of that person.

This is a vital step, as a lot of great ideas never make it into the news. There are different reasons for this, but a common one is that reporters have just never even heard them.

Why? Most reporters get swamped with emails.

The good news is that the vast majority come from people who have no idea what the media are looking for and are focused on their own needs and wants, rather than those of the media outlets and their audiences. In other words, they would never succeed in their pitches.

This is where you have a huge advantage.

You know what they are looking for. But you still need a way to stand above the crowd and get the reporter to give your story idea the attention it deserves.

The first way to do this was covered in the article a few issues back. That focused on how to get on his or her radar. Like any business relationship, you are far more likely to listen

“Like any business relationship, you are far more likely to listen to an idea from someone that you know than someone who suddenly rings you or sends you an email out of the blue.”

Pete Burdon | Founder & Head Trainer | Franchise Media Training

to an idea from someone that you know than someone who suddenly rings you or sends you an email out of the blue. That’s your first advantage.

If you have spoken to the reporter, you should know how they want to receive your pitches. If you haven’t, email is still the preferred option of most.

The subject line is critical here. If this is boring, the email may well get deleted before it’s even been opened.

The subject line has to hook the reporter enough to make him or her open the email.

A good way to come up with the right subject line is to check out the front page of your local metropolitan newspaper. The headlines there are all designed for the same purpose.

Obviously they need to explain what your idea is about, but it needs to do this in the most exciting way possible.

There are a few things that need to be in the body of your email pitch. Firstly, you need to sum up your idea as quickly as possible.

Engage the report with the idea so they keep reading.

64 Business Franchise Australia and New Zealand

The other thing is missing from most pitches.

You need to say why you think the idea would be of interest to the audience of the media outlet. That’s the one and only criteria that will decide whether the reporter moves ahead or not. Remember, this is not about you, it’s about the audience of the outlet.

In the next issue, we’ll look at how to write press releases. These can help you get better media coverage in the local media. They’re not essential, but they’re one option if you have the time.

The article will also look at how to frame your pitch in both email and press release formats.

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.

Since

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

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28/01/2018 11:01:53 PM

Franchising & Business Opportunities Expo’S 2019:

Sydney: 23-24 March

International Convention Centre, Darling Harbour

Brisbane: 1-2 June

Brisbane Convention & Exhibition Centre, South Bank

Melbourne: 24-25 August

TO THE 2019

FRANCHISING & BUSINESS OPPORTUNITIES EXPO’S

FOR BUSINESS FRANCHISE READERS!

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 65

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Workplace safety legislation

and franchisors

“The wording of the Work Health and Safety Act 2011 goes beyond a traditional employer-employee relationship and captures any business that directs or otherwise controls the manner in which work may be conducted.”

Carlie Holt | Partner | Sparke Helmore Lawyers

Recent changes to workplace safety legislation in most states and territories have led some franchisors to question whether the legislation affects them given it is their understanding that they do not directly “employ” persons working in a franchised business. Nothing could be further from the truth.

The wording of the Work Health and Safety Act 2011 (the WHS Act) (applicable in all states and territories except Victoria and Western Australia1) goes beyond a traditional employer-employee relationship and captures any business that directs or otherwise controls the manner in which work may be conducted.

The Act achieves this by imposing duties on “persons with the conduct of the business or undertaking”, commonly referred to as a “PCBU”.

The general duty The WHS Act imposes a duty on PCBUs to ensure the health and safety of individuals (workers or other persons), so far as reasonably practicable.

The duty cannot be delegated and—where

66 Business Franchise Australia and New Zealand

more than one organisation is involved—all organisations involved will concurrently have that duty and must fulfil it to the extent they have control over the particular activity, giving rise to a risk or hazard.

In practical terms, this means an organisation with “an undertaking” or business will have a duty to ensure the health and safety of persons who are affected by its operations—whether as employees, contractors, subcontractors or members of the public. No more is required than what is “reasonably practicable” for that organisation to do.

“Reasonably practicable” What is “reasonably practicable” is determined, objectively, with regard to the particular circumstances of the business or undertaking and the extent to which that business can control matters giving rise to the risk or hazard. Factors taken into account in assessing reasonable practicability include: • the knowledge of the hazard or risk • the likelihood of a hazard of risk occurring • the degree of harm that may result • whether any controls or mitigation strategies are known, and

“The commercial arrangements between a franchisor and its franchisees do not, in and of themselves, absolve a franchisor of its WHS obligations.”

• the costs associated with seeking to address any potential hazard or risk.

Officers “Officers” of a PCBU (i.e. directors or individuals who make or participate in decision making that affects a substantial component of the PCBU) also have an obligation to exercise due diligence to ensure the PCBU complies with its obligations.

“Due diligence” includes ensuring appropriate resources are available as well as remaining informed, making enquiries and implementing action as necessary with respect to potential health and safety risks.

reasonably practicable in their circumstances.

As a minimum, franchisors should: • ensure appropriate mechanisms are being implemented by franchisees (the extent of the involvement required by the franchisor will depend on what is reasonably practicable in the circumstances), and • consult, co-operate and co-ordinate activities with the franchisee/s when determining how the franchise arrangements are to operate.

While putting documentation in place, setting out policies, procedures and checklists is a good starting point, franchisors should also demonstrate the continued use, review and improvement of these systems as required.

Sparke Helmore Lawyers Sparke Helmore Lawyers has a client first approach to everything we do. We are a firm with more than 800 people working from nine offices across Australia, serving the needs of the insurance, government, financial

services, technology, mining, construction and property sectors. Our expertise spans corporate and commercial to construction, workplace to insurance, IP to IPOs, mining to manufacturing, and property to procurement.

About Carlie Carlie is the first person many organisations call when a workplace incident occurs. Carlie is onsite immediately, giving clear advice about what steps to take in the first hours and subsequent days. Sometimes these incidents lead to coronial inquests or companies and their executives being prosecuted; all matters that Carlie assists with. Carlie has been involved in many high profile coronial inquests and SafeWork prosecutions. Many of Carlie’s clients work 24 hours, seven days a week and her clients are confident that she is always just a phone call away regardless of the time of day, or night.

Visit https://www.sparke.com.au for more information

What this means for franchisors Courts have made clear that franchisors and franchisees may be PCBUs. The commercial arrangements between a franchisor and its franchisees do not, in and of themselves, absolve a franchisor of its WHS obligations.

“The duty cannot be delegated and—where more than one organisation is involved—all organisations involved will concurrently have that duty and must fulfil it to the extent they have control over the particular activity, giving rise to a risk or hazard.”

Franchisors and franchisees are concurrent duty holders and must each do what is

THE WHS PLATFORM FRANCHISE GROUPS TRUST.

SAFETY NAVIGATOR www.safetynavigator.com.au

Business Franchise Australia and New Zealand 67

F r an c h i s i n g C o m m u n i t y

A & Q

A life of franchising

with

Jim Ainsworth Jim and Linda Ainsworth have been involved in the franchising sector for close to 30 years, working with some of the leading names in franchising.

After gaining years of invaluable business experience, Jim decided to get involved with Hume Employment, a not-for-profit organisation providing quality services to aid with youth employment, in particular through group training, labour hire, permanent recruitment, school-based pre-apprentice support training and HR services.

Business Franchise Australia and New Zealand sat down with Jim Ainsworth for a chat about his time in franchising and his work with Hume Employment.

How long have you been involved in franchising?

We have been involved in franchising of sorts for nearly 30 years, and recently celebrated our one year anniversary operating the Albury Mad Mex restaurant.

How did you first enter the franchising industry?

Linda and I began with Healthy Life health foods back in 1989, when we purchased an existing store in Albury. At the time, the group was owned by Blackmores vitamins and run under a license system. When Blackmores elected to sell out a few years later, we were included in a number of store owners who got together and purchased the group, subsequently developing it under a franchise system. So, for a number of years we had a foot in both camps until the group was sold to Health Minders who were a wholesaler.

Subway came along and in July 2000 we opened our first store, at that time there were approximately 240 stores in Australia.

We opened our first Mad Mex restaurant in September 2017 and haven’t looked back.

Having a product we can fully stand behind is paramount for us. Being able to offer healthy, fresh food with quality ingredients is amazing.

What advice would you give someone thinking of entering the franchising industry - either via purchasing a franchise, franchising their business or offering a service?

I think one of the main misconceptions is that the business will run itself. People think that because a franchise has good systems it will easily operate under management and at times

68 Business Franchise Australia and New Zealand

people like ourselves made it look easy. When we had six Subway stores it meant I wouldn’t be hands on every day working in the store, so I was forced to step back a little. It takes a lot of hard work to get to this point, and we still provide a lot of training and background support to keep everything functioning effectively. Most days I still put on my uniform and visit the stores to see where I can assist.

Otherwise, do your homework. How long has the franchise been operating? People can often get excited about something new that hasn’t got a track record yet. It’s also important to find out about the culture; talk to other franchisees and as many people as you can at head office, find out how they operate. This is why we were attracted to Mad Mex. We loved the “can do, will do” culture.

How does your work in franchising influence and compliment your work with Hume Employment Services?

My position at Hume employment is voluntary, I am chair person of a board of directors that give our time voluntarily to provide a service to the community. This has been a steep learning curve for me as all decisions are made by the board as a group.

When we’re at the restaurant, Linda and I make daily decisions between ourselves,

“We have been involved in franchising of sorts for nearly 30 years, and recently celebrated our one year anniversary operating the Albury Mad Mex restaurant.”

“I think one of the main misconceptions is that the business will run itself. People think that because a franchise has good systems it will easily operate under management and at times people like ourselves made it look easy. ”

whereas you can’t do this being a part of a board. It has definitely expanded on my leadership skills as it has taught me to better interact and work with the other board members who, initially, I had never met.

Tell me a little about the work of Hume Employment Services?

Hume is part of the recruitment industry and, to a lesser extent, the training industry. We are a not-for-profit and provide a quality service to the youth employment in particular through group training, labour hire, permanent recruitment, school-based pre-apprentice support training and HR services.

To find out more about Hume Employment, call: (02) 6024 0200

Business Franchise Australia and New Zealand 69

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Local Area Marketing:

What’s working now and what isn’t We’re in a time where the speed and rate of change is accelerating. A time where the businesses closest to the customer wins!

More and more, the internet is where our lives will be, and we need to wrap our heads around what that means.

We live in a mobile phone world.

Nearly two-thirds of the world’s population now has a mobile phone, and more than half of the world’s web traffic now comes from mobile phones. And staggeringly, more than one in five of the world’s population shopped online in the past 30 days.

Undeniably, modern consumer behaviour and habits have altered drastically. Consumers

are responding to other media far more than emails. 1.37 billion of Facebook’s 2 billion users, 12 million of those Australians, are responding daily without Facebook needing to send them any emails.

And if the consumers’ preference for social media over emails isn’t enough, instant messages sent from platforms like WhatsApp, Facebook messenger, WeChat, QQ, Viber, Line, Skype, Snapchat and Slack have overtaken email as the top form of online oneto-one and group communication.

In our omni-channel world, few customers are loyal to only one channel. Which means in 2019, if your local marketing strategy isn’t multi-channelled you better get back to the drawing board! And fast!

We’ve gone from mass marketing to a market of one! Customisation and personalisation is on the rise.

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Today, you want to gather attention. As much as you can. And it needs to be deep attention, because you can trade on that. And here’s three areas that are working now to do that.

Mobile marketing a must Optimised mobile everything, even your emails, is something you should have done by now.

Mobile email opens have grown by 180 per cent in the past three years. According to Email Monday, 79 per cent of people use their smartphone for reading email. This is a higher percentage than those who use it to make calls. And knowing 70 per cent of consumers delete emails immediately that don’t render well on a mobile device, you better have this nailed too.

A poor mobile presence can make your company look unprofessional and out of touch

with the modern customer. To make the right impression, optimise everything for mobile.

And if you haven’t, it needs to be high on your 2018 agenda. No excuses.

The percentage of total global internet usage via mobile exceeded all desktops in October 2016.

In 2017, over 60 per cent of people accessed the internet via mobile phones. And mobile devices, excluding tablets, accounted for 49.7 per cent of all web page views worldwide.

Data has shown that mobile marketing is profitable and shouldn’t be ignored, particularly in the local-scape. With 40 per cent of mobile searches having a local intent, even local businesses must be equipped with a mobile strategy!

I could go on and on! Mobile offers are redeemed 10 times more frequently than print offers; 48 per cent of millennials view video solely on their mobile!

The facts stack up and considering how ingrained mobile devices are in our lives as both consumers and professionals today, don’t consider this a ‘trend’. It’s a staple.

Don’t start with a funnel, start with a following As speed grows and time shortens, we have moved from a 1-lane to 2-lanes to now a 3-lane economy. Which means what people are willing to pay (and what you can earn) continues to shift dramatically.

Ignore this shift at your own peril and at the risk of getting left behind and no longer being relevant to your customers.

Twenty years ago, being a single lane economy, all you needed to do was get in front of customer to get a sale. And provided they were willing to pay you, you were in business.

You could take people’s time and attention for granted.

Ten years ago, we moved to a 2-lane economy.

While you could still grab people’s attention with an advertisement, flyer or phone call, you could no longer take their attention for granted. You needed to earn their attention to earn their money, and get a sale.

This was the basis of Advertising’s AIDA (attention, interest, desire, action) formula. If you paid for advertising you got the attention, moving the potential customer from the fast lane to the slow lane. And having earned their attention you could now earn their money.

Today, we have grown to a 3-lane economy.

Attention can no longer be bought, because consumers are not spending time watching

“In our omni-channel world, few customers are loyal to only one channel. Which means in 2019, if your local marketing strategy isn’t multi-channelled you better get back to the drawing board! And fast!”

Yvette Sholdas | Co-founder | Remarkable Franchises

ads. Time from your potential customers needs to be earned. And if people haven’t paid you attention, they won’t pay you time. And if they aren’t paying you time, they won’t pay you money.

Success today doesn’t start with a funnel, it starts with a following. And if you have a following, people are paying you attention, not yet their time or money.

Everyone on social media is already maxed out on time, in the fast lane of the highway.

Earn their attention through valuable content, engagement or experiences and your following will grow.

Then you can invite your most avid followers to join your community, where they opt to invest more time with you. This is your middle lane. And only then invite your most active community members to become your customers.

If what you offer has been worth their attention and their time, it’s far simpler for them to trust that your higher-level products or services will be worth their money. This is your slow lane.

If you don’t have these three lanes, and you’re not managing the flow from follower, to community to customer, you’re missing out or you’re trying to push people to the sale when they’re not ready. And you’re probably wondering where all the customers are!

Don’t try and hitch a ride in the fast lane.

Nurture a community over building a list.

Today, proximity is the primary ranking factor in local searches. After all, what’s nearby is the fundamental aspect of local discovery.

What is changing though is the filter that will overlay proximity. And this filter is the consumer. Thanks to fiefdoms like Google, Facebook, Apple and Amazon, what we know about customers is only going to increase.

Day by day, the amount of customer and behavioural data is growing.

In the future you can expect that the consumer and their individual preferences will play a bigger role in filtering local discovery of your business.

Overwhelming hey! Filters, preferences, beacons, digital assistants – getting your head around how to leverage at the local level – where do you start?

Largely, local engagement is still dependent on who you’re targeting and where they’re putting their attention. And developing your local strategy and campaigns to these channels.

Stripping it back to the basics, it’s critical to distinguish between customers today.

As consumers we want a more personalised experience. We are increasingly expecting you to know our personal preferences, and to engage us accordingly.

You have a wealth of data at your figure tips – whether you know it or not!

Big data and the market of one Long gone are the days of mass marketing! No longer will you get away with the mass blast, one-size-fits-all messaging and expect a good dose of attention that converts to sales.

The shift to customisation and more personalised products and engagement is well underway. And some of greatest growth opportunities lie in personalising for one instead of standardising for a thousand.

We’ve entered an exciting time for local marketing. Big Data, digital assistants,

augmented reality and beacons will fundamentally change the way consumers discover locations.

Your database, POS (point of sale) system, and your CRM most likely has information you can use to personalise engagement and customise communications to make customers and potential customers feel special, like you know them personally.

And the old adage - knowledge is power holds true today. Knowing your clients gives you the ability to tailor each customer’s experience. Capture and use client data to better target the right customer with the right message at the right time.

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In summary…

Locally, there are so many things you can do.

Even small things. Get creative, think outside the box!

Get closer to your customers. Listen and observe them. They’re communicating to you in more ways than you realise – where they shop, where they’re putting their attention, where they go for different products, services, where they’re searching, where they’re spending their time tells a story. Get closer to your customers.

Commit to learning. Be aware of what’s happening around you. There are signs everywhere on the right direction to get more attention from your market, for your products and services, and in your location, if you’re watching.

Talk to your peers. Collaborate. Join a franchise learning network where many are learning from many. Share your experience.

Learn from others. Leverage!

In wrapping up, use this list of local, tried in the trenches tactics that have worked for franchises in 2017.

• In regional areas, radio and television are still reaching people and driving leads, as are brand ambassadors. A key point to note

here is that the real celebrities - outside of regional areas - are not as famous as the influencers on social media platforms these days.

• YouTube and preview ads are a great option to consider in place of usual tv advertising – you can get a more targeted reach at a lower investment.

• Campaigns and competitions through social media channels – Facebook, Instagram and Pinterest. Be creative!

• Some businesses have found a resurgence of networking memberships; BNI and Chambers of Commerce bring good results.

• A good referral program is still a must and can be effective. Think out of the box with this and make sure you’re appealing to your market and delivering something that gives them value and is easy.

• SMS and MMS are other successful and responsive methods to use, although be sensitive to your market’s tolerance in this space.

So, what will you do differently this year?

Have you got mobile nailed? Are you taking an omni-channelled approach? Or is it back to the drawing board for you? And if you’re not sure where to start, then get some help.

Yvette Sholdas, co-founder of Remarkable Franchises, leaders in franchise culture, franchisee education and business growth, started, built and sold her first business at 21. She is a qualified Project Manager, with a 20-year corporate career in financial services, managing small and multi-million-dollar projects and programs, nationally and internationally.

Since 2007, through Yvette’s five businesses, she has worked across more than 40 industries, training, mentoring and consulting with 1000’s of people in SME’s, franchise brands, including franchisees and their teams, to market and grow their businesses and develop their people.

Take them, try them, make them your own, if it’s appropriate for your market.

For more information, please contact Yvette at Remarkable Franchises on:

Whatever you do make sure you track and measure, adjust and be sure it’s working for you.

0409 292 588 yvette@remarkablefranchises.com.au www.remarkablefranchises.com.au

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FRANCHISE DIRECTORY 2019 INSIDE: OVER 2000 BUSINESSES LISTED

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PR O FI L E : franchising expo

Fact-finding face to face Researching a business opportunity can feel overwhelming if you’re faced with pages and pages of search engine listings – what you really need is someone knowledgeable to explain it to you personally.

That’s why people have been coming to the Franchising & Business Opportunities Expo for over 30 years, to discover business ideas and meet the experts face to face.

“It’s important to do some research online, but nothing can replace meeting real people who can explain the ins and outs of their business venture,” says Exhibition Manager Fiona Stacey. “And visitors are often inspired by business ideas in industries they had never even considered!”

Held in Sydney, Brisbane and Melbourne, the first Franchising Expo for 2019 opens 23-24 March at ICC Sydney in Darling Harbour.

“ICC Sydney is a stunning venue and we are looking forward to an action-packed show,” says Stacey. “Being at Darling Harbour means there are many options for public transport and parking, and the exhibition facilities are second to none.”

Visitors to the show will not only benefit from meeting franchisors and franchisees on the stands, but also from listening to experts and advisors speaking in the free seminar program.

The Franchisee Success panel sessions presented by the Franchise Council of Australia are always popular, featuring successful franchisees and franchisors.

The Sydney Franchising Expo will showcase a wide spectrum of business ideas, from established brands such as Aussie mortgage brokers, Snap, Pack & Send and Poolwerx to up and coming business concepts like Flatpack Assembly Services, Venture X, Dippin’ Dots, Shingle Inn, Supatramp and Miniso Australia.

“Hearing from franchisees in person gives a great insight into the challenges and opportunities of owning a franchise,” adds Stacey.

“They are very frank about their experiences – what has worked well for them, and what hasn’t!”

As the new year comes around many people are considering their lifestyle and career choices,” reflects Fiona Stacey. “For many, it’s time to make a fresh start, and there is no better place to get advice, be inspired and find your dream business than the Franchising Expo.”

Sydney’s show will be followed by Franchising Expos in Brisbane 1-2 June and Melbourne 24-25 August.

For more information go to: www.franchisingexpo.com.au

Reader special: Register to visit any Franchising & Business Opportunities Expo for FREE using code BFM at Nothing can replace meeting face-to-face with people who can explain the ins and outs of their business venture

74 Business Franchise Australia and New Zealand

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Stronger Investigative Powers of ACCC and ASIC mean

Better Protection for Franchisees “Whilst both ASIC and ACCC have been active in sending the message about UCT, they have expressed that additional powers are needed to enable ACCC and ASIC to be more effective at forcing parties to remove UCT from small business agreements instead of waiting to be caught.”

Louise Wolf | Senior Associate | MST Lawyers

It is two years since the unfair contract terms (UCT) legislation commenced in Australia, making unfair clauses within certain types of business to business contracts unenforceable.

In that time, both ACCC and ASIC have been actively enforcing UCT legislation. But have their actions been enough to reduce instances of UCT in small business contracts?

Before addressing that question, a reminder on how the UCT laws apply.

First, the contract must be a “standard form contract” entered into or renewed after 12 November 2016. Standard form contracts are prepared by one party and are not subject to negotiation. When required to determine whether a contract is a standard form contract, courts generally take into account the following factors: • bargaining power between the parties;

party are taken into account by the contract.

Importantly, when a party seeks to rely on the unfair contracts regime in court, there is a presumption that the contract is a standard form contract. The opposing party must prove, with evidence, that the contract is not a standard form contract.

• whether there were discussions prior to the preparation of the contract;

Second, the contract must be a “small business contract”. That is, a contract for:

• whether one party was required to accept or reject the contract;

• the supply of goods or services, or a sale or grant of an interest in land; and

• opportunities to negotiate the terms of the contract; and

• at the time the contract is entered into, at least one party is a small business; and

• whether the characteristics of the other

• one of the following applies:

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“The “totality of the consideration” payable under the contract does not include any consideration that is contingent on an event occurring or not occurring. Importantly, the upfront price will include non-monetary consideration.”

supply, sale or grant under the contract; and • disclosed at or before the time the contract is entered into.

The “totality of the consideration” payable under the contract does not include any consideration that is contingent on an event occurring or not occurring. Importantly, the upfront price will include non-monetary consideration.

Third, the term in the contract must be unfair.

An unfair term is a term that: • causes significant imbalance between the parties’ rights and obligations; and • is not reasonably necessary to protect the legitimate interests of one party; and • would cause detriment (whether financial or otherwise) to a party if it were to be relied on.

The ACCC has provided examples of terms that may, depending on the context, be unfair.

These include: • terms that permit one party to avoid or limit performance of the contract; • terms that permit one party to terminate the contract for trivial breaches; • terms that permit one party to vary the terms of the contract; • terms that permit one party to renew or not renew the contract; o the contract has a duration of 12 months or less and the upfront price payable under the contract is less than $300,000; or

• terms that permit one party to vary the upfront price payable under the contract, without giving the other party the right to terminate; or

o the contract has a duration of more than 12 months and the upfront price payable under the contract does not exceed $1,000,000.

• terms that limit one party’s right to sue another party.

A “small business” is a business that employs fewer than 20 people. This is calculated by a headcount of each full time and part time employee and each casual employee that is employed on a regular and systematic basis.

A term of a small business contract cannot be declared unfair if it: • defines the main subject matter of the contract; or • sets the upfront price payable under the contract; or

The “upfront price” payable under a contract is the totality of the consideration that is:

• is a term required, or expressly permitted, by a law of the Commonwealth, a State or a Territory.

• provided, or is to be provided, for the

These types of terms must be assessed in the

context of each contract to ascertain whether there are other clauses which mitigate or balance any unfairness.

So how have the ACCC and ASIC acted to enforce the UCT laws? Actions have been brought by the ACCC and ASIC against various parties.

In October 2017, the waste management company JJ Richards & Sons Pty Ltd (JJ Richards) was found to have eight unfair terms in its small business standard form contracts. These terms had the effect of: • binding customers to subsequent contracts unless they cancel the contract within 30 days before the end of the term; • allowing JJ Richards to unilaterally increase its prices; • removing any liability for JJ Richards where its performance is “prevented or hindered in any way”; • allowing JJ Richards to charge customers for services not rendered even when caused by reasons beyond the customer’s control; • granting JJ Richards exclusive rights to remove waste from a customer’s premises; • allowing JJ Richards to suspend its service but continue to charge the customer if payment is not made after seven days; • creating an unlimited indemnity in favour of JJ Richards; and • preventing customers from terminating their contracts if they have payments outstanding and entitling JJ Richards to continue charging customers equipment rental after the termination of the contract.

Each of the above eight unfair terms was declared void. In addition, JJ Richards was ordered to establish and implement a three year ‘ACL compliance program’ for every employee or person involved in the company’s business. JJ Richards was also required to publish a corrective notice on its websites and to provide a copy of the court orders to all of its small business customers affected by the unfair terms.

In July 2018, twelve terms in standard form contracts used by two subsidiaries of Servcorp

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“Importantly, when a party seeks to rely on the unfair contracts regime in court, there is a presumption that the contract is a standard form contract.”

it would allow the ACCC to use its powers of investigation under section 155 of the Competition and Consumer Act 2010 (Cth) (CCA) to actively investigate matters that may constitute a contravention of the CCA and/or Australian Consumer Law, rather than simply relying on evidence provided voluntarily.

Limited (Servcorp Parramatta Pty Ltd and Servcorp Melbourne 18 Pty Ltd) (together Servcorp) were declared to be unfair and therefore void.

Such terms had the effect of: • automatically renewing a customer’s contract, unless the customer had opted out, and allowing Servcorp to then unilaterally increase the contract price; • permitting Servcorp to unilaterally terminate contracts; • unreasonably limiting Servcorp’s liability or imposing unreasonable liability on the customer; and • permitting Servcorp to keep a customer’s security deposit if a customer failed to request its return.

Servcorp were ordered to implement a two year ACL compliance program after their standard form contracts were found to include unfair terms. They were also required to pay $150,000 in costs to the ACCC. After an ASIC review, Prospa Advance Pty Ltd (Prospa) was found to have a number of unfair terms in its standard form loan agreement for small businesses. ASIC required Prospa to make a significant number of amendments to its standard form loan agreement, including: • changing an early repayment clause so that early payment of a loan is allowed without Prospa’s consent, and making discounts for early payment mandatory instead of at Prospa’s discretion; • significantly narrowing the circumstances in which Prospa could rely on a ‘unilateral variation’ clause to vary the agreement without the consent of the borrower and extending the notice period to 60 days; • amending the ‘events of default’ clauses to

ensure that borrowers can remedy certain defaults, ensuring changes of control to the borrower entity are allowed with the Prospa’s consent (which consent cannot be unreasonably withheld); • removing an ‘entire agreement’ clause, so that Prospa was not absolved of responsibility for representations it made to borrowers that were not recorded in the written loan agreements; • narrowing the borrower’s indemnity, so that it does not cover third parties, or losses that are caused by the fraudulent, negligent or wilful misconduct by Prospa; and • changing provisions relating to guarantors, to allow guarantees only be given by certain parties connected to the borrower and limiting the guarantor’s liability so that the guarantor is not liable for any increase in the amount of the loan principal and interest agreed at the start of the loan.

Whilst both ASIC and ACCC have been active in sending the message about UCT, they have expressed that additional powers are needed to enable ACCC and ASIC to be more effective at forcing parties to remove UCT from small business agreements instead of waiting to be caught.

In August 2018, in a speech given at the Council of Small Business Organisations Australia’s National Small Business Summit, Mr Rod Sims, chair of the ACCC explained the weaknesses in the regime that were hampering ACCC’s efforts. He stated, “The regime has two significant flaws: first, unfair contract terms are not illegal, and second the ACCC cannot seek penalties when the court has declared an unfair contract term void, nor can we issue infringement notices for contract terms that are likely to be unfair.” If unfair terms are made illegal, Mr Sims also noted,

78 Business Franchise Australia and New Zealand

Mr Sims said that the ACCC would consider recommending the broadening of the definition of ‘standard form contract’, to capture transactions that would typically be expected to be ‘small business’ transactions but are falling outside the scope of the current UCT provisions.

At the Legal Symposium of the National Franchise Convention held in October 2018, ACCC Deputy Chair Mick Keogh echoed such concerns, saying they were “… lacking a legal impediment, and without fear of financial penalties, businesses have an incentive to include potentially unfair terms in their contracts. We want to see this changed to more adequately protect small businesses, including franchisees.”

On 18 October 2018 the Treasury Laws Amendment (Australian Consumer Law Review) Bill 2018 (Bill) was passed by both houses of Parliament and shortly thereafter given royal assent. The Bill gives the ASIC and ACCC investigative powers to assess (amongst other things) whether any terms in a small business contract entered into after 26 October 2018 may be unfair.

This greatly improves the powers of the ACCC and ASIC. However, watch this space for possible future action by the ACCC, ASIC and parliament to further strengthen their powers to protect small businesses from unfair contract terms.

Louise is a Senior Associate in MST Lawyers’ Corporate Advisory and Franchising Team with expertise in franchising, intellectual property and privacy law.

Louise focuses her practice on providing practical and commercially sensitive advice about franchising, intellectual property and privacy related matters to both national and international corporates, franchisors and franchisees. +61 3 8540 0242 +61 3 8540 0200 www.mst.com.au

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Behind the

headlines RFG unsustainable as former execs face Inquiry grilling The performance of multi-brand publiclylisted franchisor Retail Food Group (RFG) is “unsustainable” according to its new chairman, and will need to sell assets including its corporate bakery, and potentially brands Crust Pizza and Pizza Capers to pay down debt, according to media reports.

New chairman Peter George told RFG shareholders at the company’s annual general meeting that the company’s current financial performance was unsustainable, and that it was important to acknowledge the enormity of the turnaround required to repair the business.

Meanwhile former RFG managing director Tony Alford, and executives Andre Nell and Alicia Atkinson have reluctantly appeared at the final hearing of the Franchise Inquiry, to answer questions about their involvement in the operation of RFG’s franchise brands.

All three had previously refused multiple requests by the Joint Parliamentary Committee to appear before the Inquiry, with Alford launching a failed last-minute High Court challenge to the Committee’s ability to compulsorily call witnesses.

During their testimony, Alford and Atkinson were frequently combative with the Inquiry committee, and prefaced nearly all of their statements and answers to questions with

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the word “privilege” according to their legal advice, even though the Committee had reiterated that the hearing’s proceedings were already protected by Parliamentary privilege.

Alford claimed to have no knowledge of why RFG would write down the value of its assets by $427 million within months of him standing-down from his role, and could not recall details relating to his time at the helm of the company. Both Atkinson and Alford provided written answers to questions on notice previously provided by the committee, but gave few details in their responses.

In a rare move, the appearance of the executives at the Inquiry even received mainstream television coverage.

The final hearing of the Franchise Inquiry was held specifically to hear from the former RFG executives on November 26.

Private equity tests sale of Australian chain Boston-based, private investment firm Bain Capital has pitched its food franchise business Retail Zoo to potential investors as a “five-pronged growth prospect” following a strategic review of the business by US investment bank Citi to ascertain options for exiting the investment, according to a media report.

Bain acquired 70% of Retail Zoo in 2014 in partnership with the founders of the fruit juice and smoothie’s business, Boost Juice, a core company operating under the Retail Zoo umbrella and one which is expected to attract the most interest from potential investors.

Brands operating under Retail Zoo include Salsa’s Fresh Mex Grill, coffee chain Cibo Espresso, and American-style burger chain Betty’s Burgers which intends to leverage its 40-store network into a franchise model domestically, before looking to grow offshore.

Interested parties estimate that Retail Zoo is generating around $400 million in network sales and EBITDA of up to $50 million per year.

Max Brenner sale completes The owner of cinema chain United Cinemas, Roy Mustaca, has bought failed chocolate café Max Brenner ending a tumultuous few months for the business during which it was placed into voluntary administration, had its national franchise agreement terminated, and had a previous sale cancelled at the eleventh hour by its liquidator.

Shareholders reject Harvey Norman directors Shareholders of listed furniture and home electronics retailer Harvey Norman have voted to reject the company’s remuneration report and adoption of executive and directors’ pay packages, according to a media report.

The Australian Shareholders’ Association (ASA), citing concerns over the company’s lack of independent directors and other issues, had urged investors to reject the report, resulting in a 50.6% vote against the report.

The result marks a “first strike” which, if repeated next year, may see the board ousted.

Executive chairman, Gerry Harvey, justified the board’s make up because, unlike other publicly listed companies, it is majority owned by the Harvey family and other company insiders.

NZ pizza chain ends home delivery of fireworks New Zealand chain Hell Pizza will no longer deliver fireworks as a side order in the lead up to and on Guy Fawkes Night following increasing “calls for social responsibility”, according to a media report.

The pizza-fireworks combo has been a top seller for the last five years and was promoted as “a whole night’s worth of entertainment”.

While the combo was only on offer from November 2 to November 5 each year, it significantly contributed to franchisee’s sales.

However, increasing negative feedback about anti-social behaviour and the safety of animals has begun to outweigh the positive feedback from fireworks customers.

Book chain continues to open stores Privately owned Australian bookstore chain, Dymocks, has opened its 17th store in the state of Victoria, the first in two years in that state, dedicating 15% of floorspace to non-book products such as gifts, cards, and stationary, according to a media report.

NSW retailers improve access to leasing data A new Code of Practice related to the reporting of sales and occupancy costs in New South Wales will be phased-in starting January 1, 2019, giving retailers, landlords, and other stakeholders access to tenancy data, according to a media report.

Domino’s grows same store sales Listed fast food chain Domino’s Pizza reported an increase in same-store sales of 2.9% for the first 17 weeks of FY19, with full-year guidance for growth between 3% and 6%.

Domino’s has also enhanced its order app, Pizza Chef, by adding an augmented reality (AR) feature which allows users to visually customise their pizza and see it being created first hand. (This article has been updated from last issue).

The rise of service subscription models Transport subscription services for domestic and international travellers seeking more efficient, affordable, and pleasant methods of travel are evolving from the concept of ride sharing, according to a media report.

Ride sharing, car share, and car subscriptions are promoted as being not only cheaper, but also more environmentally friendly than car

Jason Gehrke | Director Franchise Advisory Centre

ownership, and the airline industry is also investigating and developing subscriptionbased models. Subscribers of Surf Air, a private airline in the US and Europe, can access unlimited flights for a flat monthly fee, a concept that could benefit air carriers by allowing them to accurately predict their revenue for the year based on user data and the number of renewed subscriptions.

Fast food chains to home deliver with Menulog Fast food chicken and burger chains, KFC and Hungry Jacks, have each partnered with online food and beverage ordering platform Menulog to offer home delivery of orders from more than 90% of KFC restaurants, and from Hungry Jack’s restaurants in more than 1,600 suburbs across Australia, according to a media report.

Red Rooster launches new look store and delivery guarantee Roast chicken specialty chain Red Rooster has launched two new restaurant designs at locations in Victoria and Queensland as part of a long-term national strategy to revamp their stores, enhance customers’ in-store experience, and showcase the “Aussie spirit and heritage,” according to a media report.

The restaurant has also announced a 30minute delivery guarantee for online orders.

Pizza Hut adds chicken wing brand Pizza Hut parent company Yum! Brands has introduced speciality chicken chain WingStreet’s chicken wings to all of its Australian restaurants, according to a media report.

Pizza franchisees brief lawyers over 10% sales slump Franchisees of US pizza restaurant chain Papa John’s may continue to receive financial assistance in 2019 and have been offered royalty reductions and funding for advertising

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after the company reported comparable sales slumped 9.8% in North America, according to a media report.

Papa John’s has been struggling since allegations of sexual harassment in the chain, and reports of the former company chairman using a racial slur and controversially commenting on the NFL anthem protests, came to light. Franchisees, through a restaurant owners association, have hired an industry attorney to represent them in talks with the company, frustrated that damage to the brand’s image is severely impacting their bottom line.

Uber faces massive Australian class action Ride sharing company Uber is facing allegations of conspiracy by unlawful means in a class action lawsuit that includes thousands of taxi and hire-car drivers, operators, and licence holders in Victoria, New South Wales, Queensland, and Western Australia, according to a media report.

Law firm Maurice Blackburn is seeking compensation for the loss of driver income and the devaluation of taxi and hire car licence plates since Uber entered the Australian market in early 2014 prior to government regulation. If successful, the settlement could eclipse the $700 million Black Saturday class action, the largest class action in Australia to date.

Government reviews unfair contract terms laws Two years after the introduction of unfair contract terms legislation to apply to businessto-business contracts, the Federal Government has announced a review of the impact of the legislation on stakeholders, including whether the objective for the original reform has been met.

IP & copyright review consultation The Australian Government agency that administers intellectual property (IP) rights and associated legislation, IP Australia, has released for comment draft regulations related to the phasing out of the innovation patent system, improving how translations of patent documents are filed with IP Australia, and other changes, according to a government release.

Auto franchisor chairman faces fraud charges Controversial chairman of Japanese auto manufacturer Nissan, Carlos Ghosn, is facing charges related to allegedly underreporting

his income and misusing company funds, according to a media report.

Ghosn, the leader of multinational automobile leader Renault-Nissan-Mitsubishi, together with another senior executive, is accused of offences involving millions of dollars following a whistle-blower instigated investigation. Nissan issued a seven-minute long apology prior to a press conference when the story broke and is reported to be cooperating with prosecutors.

Proposal to tighten on black economy A treasury discussion paper addressing recommendations from the Black Economy Taskforce’s 2018 report is proposing that the Australian Taxation Office (ATO) be granted stronger powers to catch and penalise tax avoiders and evaders, according to a media report.

embattled company aims to stabilise itself by reducing costs, improving the performance of franchises, and better serve franchise and non-franchise customers through “brand promotion, product innovation, and superior service”.

Recent media reports have also indicated that it is preparing to sell-off one or more of its franchise brands to pay down debt ahead of a banking repayment deadline.

Union campaigns against fast food worker abuse A shop assistants union is launching a “no one deserves a serve” campaign to raise awareness around customer abuse of retail staff, according to a media report.

Key suggestions in the paper relate to an extension of the ATO’s power to access telecommunications data, travel bans for Australian taxpayers with outstanding tax obligations, and increased penalties for businesses engaging in sham contracting.

Members of the union have reported incidents ranging from having hot and cold drinks thrown on them to being threatened with rape and physical harm including death. The Australian Retailers Association (ARA), while acknowledging that unions and industry associations don’t always agree, described the abuse as an “emerging crisis management issue” and offered unions absolute support in their efforts to ensure the safety of workers.

Further delay to Franchise Inquiry report

Former RFG MD unable to answer Inquiry questions

Following the last of the public hearings for the Franchise Inquiry on November 26, the Parliamentary Joint Committee on Corporations and Financial Services has announced a further deferral of its report from December 6 to 14 February 2019, more than four months after its original due date of 30 September 2018.

Former Retail Food Group managing director Tony Alford has been unable to answer questions on notice put to him by the Franchise Inquiry following his reluctant appearance before the Inquiry Committee on November 26, according to the Inquiry website.

A total of nine public hearings were conducted for the inquiry, including two evening hearings which featured testimony from only one organisation – Retail Food Group. The Inquiry received 216 submissions listed on its website, with media reports previously indicating that a large number of confidential submissions were also received, but not published.

RFG CEO resigns, executive chairman takes over As part of a “major restructuring”, the CEO of multi-brand listed franchisor Retail Food Group (RFG) has resigned after less than one year in the position, according to a company announcement.

RFG’s new executive chairman Peter George, who recently described the company’s performance as unsustainable, will assume CEO responsibilities “for the time being”.

According to the announcement, the

84 Business Franchise Australia and New Zealand

In response to six written questions (Item 33) put to him by the Joint Parliamentary Committee arising from his testimony at the November 26 hearing, Alford, via his lawyers, has responded that he does not have the capacity to answer as relevant records are kept with RFG (including for example, his own employment agreement), or that a specific answer is not possible.

In response to the Committee’s question about the number of company directorships he held, Alford responded that that a search of ASIC records online came back with “Too many records found to continue extract”.

In response to another question about the number and type of properties owned jointly with former RFG executive Alicia Atkinson, Alford responded that no properties were jointly owned, but both individuals were shareholders in companies with owned an unspecified number of properties.

During their testimony at the Inquiry hearing, Alford and Atkinson were frequently

combative with the Inquiry committee, and prefaced nearly all of their statements and answers to questions with the word “privilege” according to their legal advice, even though the Committee had reiterated that the hearing’s proceedings were already protected

by Parliamentary privilege. Prior to the hearing itself, Alford sought to avoid giving testimony into the affairs of RFG which led to the Inquiry by launching a failed High Court challenge to the Inquiry’s ability to compel him to appear.

The final hearing of the Franchise Inquiry was held specifically to hear from the former RFG executives, including former CEO Andre Nell.

SumoSalad to merge with online meal provider Australian salad bar chain, SumoSalad, will merge with omnichannel brand THR1VE in a move described by the founder of SumoSalad as “the first step towards the creation of a house of wellness brands”, according to a media report.

THR1VE, which currently specialises in nutrition solutions, brings technology and direct to consumer e-commerce skills to the partnership in a deal designed to provide a “consolidated offering”, while SumoSalad offers its brand positioning and awareness, national footprint and operations. THR1VE has placed its restaurants into voluntary administration acknowledging that, for the benefit of the partnership, only one restaurant chain is viable

Domino’s opens 700th store in Australia Australia’s largest pizza franchise, Domino’s, has opened its 700th national store in regional Queensland, showcasing a design using recycled materials such as pre-loved bricks as part of the company’s move towards becoming a “sustainable and eco-friendly company”, according to a media report.

Mad Mex to open in Singapore Australian-based fast food restaurant chain Mad Mex Mexican Grill will open four stores in Singapore by early 2019, according to a media report. The stores will be converted from existing outlets owned by Mad Mex co-owner, the Singaporean-based 4FINGERS Group.

KFC operator grows profits by 25% Collins Foods, listed operator of fast food chicken chain KFC Australia, has increased its underlying net profit after tax (NPAT) by

25.9% in the first half of FY19, attributing a significant part of the growth to the success of KFC’s delivery operations which it intends to double in the next six months, according to a media report.

Godfreys founder passes away aged 100

The Salvation Army, and even kiddie rides in suburban shopping centres. Cashless economies are a global trend: in China buskers have specialised QR codes allowing passers-by to donate via messaging apps, while in Sweden church-goers donate via a tap-andgo app and most cafés and transport only accept card payments.

John Johnston, co-founder of national vacuum cleaner retailer Godfreys, has died, aged 100, just months after successfully regaining private control of the then publicly listed company, according to a media report.

More homeowners face risk of negative equity

Uber plans IPO; Pays minimum wage

Borrowers in negative equity essentially must pay off mortgages which are greater than their properties are worth, meaning that if they sell, they will still owe money to their lender – potentially at higher interest rates. Forecasters are predicting a further 20% drop in the property market, which could potentially eliminate equity obtained via a purchaser’s 20% deposit and push borrowers into negative equity.

Ride-hailing company Uber Technologies Inc has reportedly filed paperwork in the US for a 2019 initial public offering (IPO) which, despite announcing a $1.07 billion loss for Q3 FY2018, may be worth up to $120 billion, according to a media report.

Meanwhile in New York, Uber drivers will be paid a set minimum wage by the company following a vote by the New York City’s taxi and limousine commission (TLC) to protect workers by “putting a floor under their earnings”, according to a media report.

Government announces SME mental health package The Australian government has announced a $3.6 million policy package aimed to address mental health issues in small business, according to a media report.

The funding will focus on providing advice and support services for SME owners with mental health issues, with a longer-term view to develop further policy in the area. Recent research into workplace mental health found that every dollar spent on workplace mental health in small businesses returns $14.50 in productivity benefits.

Australia could be cash-free in three years A University of New South Wales (UNSW) economist claims Australia could operate without cash within three years, supporting a statement by Australia’s central bank that notes and coins are likely to become a “niche payment” in the future, according to a media report.

ATM transactions in Australia have nearly halved since 2010, while tap-and-go transactions are increasing, and contactless payments have quadrupled. As fewer Australians carry cash, tap-and-go technology is, by necessity, being adopted by operators across all sectors including charities such as

Mortgage holders across Australia are facing the risk of negative equity as the fall in house prices accelerates, according to a media report.

Electronics retailer adopts checkout-free technology European consumer electronics retailer, MediaMarkt Saturn, will offer mobile selfcheckout at their largest store in Hamburg, Germany, on the back of a successful trial of the technology, according to a media report.

Shopping centre opens dog lounge A Korean shopping centre and theme park is describing itself as “a pet-friendly shopping mall that both customers and pets can enjoy” after opening the country’s first dog lounges for customers and their pets, according to a media report.

Microdonations drive scholarships Microdonations raised from more than one million transactions in which customers rounded-up their purchases to the nearest dollar from pizza chain Domino’s have funded eight college scholarships in 2019, according to a media report.

Amazon to expand into airports Online retailer Amazon is considering expanding its bricks-and-mortar Amazon Go stores into major airports in the United States, including Los Angeles International, describing the concept as a “natural fit” whereby customers can make quick, hasslefree, contactless purchases while travelling, according to a media report. www.franchiseadvice.com.au

Business Franchise Australia and New Zealand 85

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100 Harris Street Pyrmont NSW 2009 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 custombuilt 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.

86 Business Franchise Australia and New Zealand

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.

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;.

Posters

Manuals

JEJAK GRAPHICS

a lasting impression

PH: 0422 267 639 EMAIL: jejak@bigpond.com EXAMPLES: www.issuu.com/jejakgraphics

l i st i n gs

FRANCHISE 7-ELEVEN STORES PTY LTD 357 Ferntree Gully Rd, Mt Waverley VIC 3149 Ph: 03 9541 0711 Website: www.franchise.7eleven.com.au

APPLIANCE TAGGING SERVICES 80 Patterson Road, Bentleigh VIC 3204 Ph: 1300 287 669 Fax: 03 9557 4854 Email: steve@ats.com.au Website: www.appliancetaggingservices.com.au

NATURE OF BUSINESS

OUTLETS

ASSOC MEMBER

INITIAL FEE

MIN INVEST

CONVENIENCE RETAIL & FUEL

670+

FCA, AACS

(site specific– part of Min. Investment)

Average of $775,000

ELECTRICAL TEST AND TAG

56

FCA

$35,000

$52,000 + GST + Vehicle

BATTERY RETAILER

110

FCA / ARA

Initial Fee $55,000 (Excl GST)

250,000 (Excl GST) Incl the initial franchise fee

SCHOOL READINESS & PRIMARY TUTORING

30+

Franchise Council of Australia

$48,000

$70,000 (includes Franchise Fee)

FAST FOOD, HAMBURGERS, FISH & CHIPS

3

FCA, VECCI, C4G

$30,000

$150,000

FURNITURE & INTERIOR DESIGN RETAIL STORES

300+ brand stores in 65 countries

BFA, IFA, DFV

$40,000 per store opening

$600,000

DIRECT SELLER OF BOOKS AND GIFTS

100+

-

New: $1-$10,000 / Existing: Dependent on size

Up to $20,000 dependent on requirements

RETAIL, POOL & SPA SERVICE

60

FCA, SPASA

$60,000

From $420,000 + GST

PREMIUM CAFÉ FRANCHISE

20

Franchise Council of Australia

Dependent on Site $50,000 + GST conditions $300K Incl. Training $500K

DECK AND TIMBER RESTORATION

5

-

$65,000 + GST, $30,000 + GST (incl Franchise Fee) + vehicle

HYGIENE PRODUCTS & SERVICES

33 in AUS, 18 in NZ

Franchise Council of Australia

None

$10,000 - $300,000

AUTHENTIC ITALIAN FAMILY FOOD FRANCHISE

20

Franchise Council of Australia

$50,000 + GST

$500,000 $700,000

FLOORING

over 120 retail & franchise stores

-

-

-

VENDING MACHINES

-

-

10 machines at $13,750 each

$10,000

KIDS MOBILE SPORTS & FITNESS

10

FCA

Initial Fee $38,000 +GST

$41,800 inc GST

RESTAURANT

75

FCA, FANZ

Initial Fee: $50,000

$350,000+

FREIGHT AND LOGISTICS

Aust 50 Intl 200+

-

$64,950

$64,950

MOBILE POOL SHOP & POOL SERVICE

100+

FCA

$69,000

$69,000 + Vehicle

HAIRDRESSING

210+ across Australia, NZ & UK

FCA

$18,000 $35,000

$80,000 - $240,000

SKIN TREATMENTS, LASER HAIR REMOVAL & COSMETIC INJECTABLES

101+

FCA

$50,000

$290,000 $350,000

GROUP PERSONAL TRAINING

12 Studios

FCA

Franchise Fee $20,000

-

BATTERY WORLD Level 3, 203 Wharf Street, Spring Hill QLD 4000 Ph: 1300 793 209 Email: franchise@batteryworld.com.au Website: www.batteryworld.com.au/Franchise-Opportunities

BEGIN BRIGHT Support Office, 20 / 8 Corporation Circuit, Tweed Heads South NSW 2486 Ph: 1300 234 462 Email: franchise@beginbright.com.au Website: www.beginbright.com.au/franchise

BK’s TAKEAWAY 95 Princes Hwy, Trafalgar VIC 3824 Ph: 03 5633 2131 Email: admin@bkstakeaway.com.au Website: www.bkstakeaway.com.au

BOCONCEPT HQ | Herning, Denmark Business Dev. Manager Ph: 0474 278 485 Email: franchise@boconcept.com Website: www.boconcept.com/franchise

BOOKS AND GIFTS DIRECT Level 10, 8 West Street, North Sydney NSW 2060 Ph: 02 9899 9655 Email: enquiries@booksgiftsdirect.com Website: www.booksgiftsdirect.com

CLARK RUBBER FRANCHISING PTY LTD Administration Building, 254 Canterbury Road, Bayswater VIC 3153 Ph: 03 8727 9999 or 138090 Fax: 03 9729 3266 Email: dirk.heinert@clarkrubber.com.au Website: www.clarkrubber.com.au/franchise

CREMA ESPRESSO 16 Ashmore Road, Bundall QLD 4217 Ph: 07 5532 7727 Mob: 0417 637 626 Email: antony@cremaespresso.com.au Website: www.cremaespresso.com.au

DECKSEAL PO Box 4093, Burwood East VIC 3151 Ph: 1800 332 525 Email: admin@deckseal.com.au or info@deckseal.com.au Website: www.deckseal.com.au

ECOMIST Unit 4/28 Barcoo Street, Chatswood NSW 2067 Ph: 0447 743 157 Email: info@ecomist.com.au Website: www.ecomist.com.au

FASTA PASTA PTY LTD Level 1, 137 The Parade, Norwood SA 5067 Ph: 08 8304 8600 Fax: 08 8332 8389 Email: franchise@fastapasta.com.au Website: www.fastapasta.com.au

FLOOR STORES FRANCHISING 24 Jutland Street, Loganlea QLD 4131 Ph: (07) 3489 1361 Mob: 0402 791 187 Email: jack.mcclane@floorstores.com.au Website: www.floorstores.com.au

FRESH JUICE VENDING Robert Walsh Email: robert@freshjuicevending.com.au

GECKO SPORTS Melbourne VIC 3184 Ph: 0417 159 807 or 1300 432 565 Email: franchise@geckosports.com.au Website: www.geckosports.com.au

HOG’S AUSTRALIA H/O: 152 Shore Street Cleveland QLD 4163 Ph: 1800 464 783 Email: geoffhargreaves@hbca.com.au Website: www.hogsbreath.com.au

INXPRESS AUSTRALIA PTY-LTD 3/14 Burke Crescent North Lakes QLD 4509 Ph: 1300 469 773 Email: david.wilkinson@inxpress.com Website: www.inxpress.com.au

JIM’S POOL CARE 48 Edinburgh Road, Mooroolbark VIC 3138 Ph: 131 546 Email: info@jimspoolcare.com.au Website: www.jimspoolcare.com.au

JUST CUTS™ Level 1, 4-6 Kingsway, Cronulla NSW 2230 Ph: (AUS) 02 9527 5444 (NZ) 0800 100 114 (toll free) Email: bdm@justcuts.com Website: www.justcuts.com

LASER CLINICS AUSTRALIA Level 2 / Unit 21, 39 Herbert Street, St Leonards NSW 2065 Ph 0402 171 399 or 0400 303 272 Email: franchiseopportunities@laserclinics.com.au Website: www.laserclinics.com.au/franchise-opportunities

LISTEN TO YOUR BODY First Floor 19/21 Centreway, East Keilor VIC Ph: 03 9331 5673 Email: franchise@listentoyourbody.com.au Website: www.listentoyourbody.com.au

88 Business Franchise Australia and New Zealand

FRANCHISE

NATURE OF BUSINESS

OUTLETS

ASSOC MEMBER

INITIAL FEE

MIN INVEST

WINDOW FASHIONS

148

-

-

$100,000 to $150,000

$20,000 $50,000

$20,000

LUXAFLEX 338 Victoria Road, Rydalmere NSW Damon Gardner Ph: 0459 654 146 Email: damongardner@hunterdouglas.com.au Website: www.luxaflex.com.au

MAGNETITE 36 Garema Circuit, Kingsgrove NSW 2208 Ph: 02 9565 4070 Fax: 02 9565 4080 Email: info@magnetite.com.au Website: www.magnetite.com.au

MIDAS 76-92 Station Street, Nunawading VIC 3131 Ph: 03 8878 1122 Email: franchiseenquiries@midas.com.au Website: www.midas.com.au

WINDOW INSULATION

6 franchises AWA, HIA, WFAANZ & 12 dealers

$50,000 FCA, AAAA, ACRA Franchise Fee + Set-Up Costs

AUTOMOTIVE MECHANICAL SERVICE & REPAIR WORKSHOP

80+

MOBILE SKIP HIRE

16

FCA

$67,000 $97,000

$67,000

SOLAR SHEILDING NANOTECHNOLOGY WINDOW TREATMENTS

1

-

$26,000

@26,000

BEAUTY & LASER CLINIC

5

FCA

$50,000 plus GST

$250,000 to $550,000 plus GST

HYDRAULIC SERVICE AND MOBILE CONNECTOR SPECIALISTS

120

-

$15,000

VARIOUS OPTIONS

GLOBAL FITNESS GYM FRANCHISE

2500+ Clubs worldwide 26 Countries

Fitness Australia

$58,000

$500,000

MOBILE TOOLS AND EQUIPMENT FRANCHISE

175+

FCA / FANZ

Start-up cost from $50,000

-

RESURFACING

100+

-

-

$20,000 to $64,350 Finance avail from $75 p/w

PROVIDES UNIQUE SPOT FACTORING PROGRAMME

60 worldwide

FCA, IFA, CFA, Irish FA

$34,500

$50,000+

LOTTERIES

Approx 4000

-

Varies dependent on state/territory

Varies dependent on state/territory

FCA, BFA

$40,000

$150K - $400K depending on size & concept

AWA

$40,000

Varies depending if vehicle needed

MOBILE SKIPS Unit 2, 26-36 High Street, Northcote VIC 3070 Ph: 1300 675 477 Email: franchising@mobileskips.com.au Website: www.mobileskips.com.au

NANOSHIELD 2/5 Michellan Court, Bayswater VIC 3155 Ph: 1800 267 924 (1800 COSY 24/7) Email: info@nanoshield.com.au Website: www.nanoshield.com.au

NIRVANA BEAUTY LASER CLINICS NSW Ph: 0413 564 565 Email: marc@nirvanabeauty.com.au Website: www.nirvanabeauty.com.au

RYCO 24.7 19 Whitehall Street, Footscray VIC 3011 Ph: 03 9680 8000 Fax: 03 9680 8001 Email: sales@ryco247.com Website: www.ryco.com.au

SAFETY NAVIGATOR Ph: 1300 858 818 Email: systems@safetynavigator.com.au Website: www.safetynavigator.com.au

SNAP-ON TOOLS PO Box 6077, Seven Hills NSW 2148 Ph: Aus: 1800 762 766 NZ: 0800 762 766 Email: Sota.franchise@snapon.com Website: www.snapontools.com.au

SPRAY PAVE AUSTRALIA GPO Box 501, Greenacres SA 5086 Ph: 1800 688 888 Fax: 08 8266 5360 Email: spraypave@senet.com.au Website: www.spraypave.com

THE INTERFACE FINANCIAL GROUP IFG 50/50 Level 32, 8 Exhibition Street, Melbourne VIC 3000 Ph: 1300 957 900 Email: ifg@interfacefinancial.com Website: www.interfacefinancial.com.au/franchise

THE LOTT 87 Ipswich Road, Wooloongabba QLD 4012 Email: franchiseenquiries@thelott.com Website: www.thelott.com/franchisee

THEOBROMA, CHOCOLATE LOUNGES, PAVILIONS, BARS 3A Kia Crt, Preston VIC 3072 Ph: 03 9480 1030 or +61 431 727 004 Email: franchising@theobroma.com.au Website: www.Theobroma.com.au

THERMAWOOD RETRO-FIT DOUBLE GLAZING PO Box 1007, South Melbourne VIC 3205 Ph: 04 555 55 330 Email: info@thermawood.com.au Website: www.thermawood.com.au

CHOCOLATE LOUNGES, 11 worldwide PAVILIONS, BARS

RETRO-FIT DOUBLE GLAZING

4 AUS, 42 NZ

$200,000+, plus GST

A-Z Listings are a great way to promote your business For more information call 03 9787 8077 (or +61 3 9787 8077from outside of Australia) and speak to one of our Sales Executives or go to: www.businessfranchiseaustralia.com.au Business Franchise Australia and New Zealand 89

A-Z LISTINGS ARE A GREAT WAY TO PROMOTE YOUR BUSINESS

ralia’s Hog’s Aust use Steakho

is home to the ’s Steakhouse d Hog’s Australia ed prime rib an ok co w slo ur famous 18-ho taurant group, res ed lov ch curly fries. A mu operation rate 30 years of Hog’s will celeb ts across ran tau res 75 asts next year and bo . nd w Zeala Australia and Ne hed it’s quick Australia launc Last year, Hog’s a smaller , ss pre Ex Hog’s service model,

llements the ful sition that comp of both a footprint propo m for the es tak ts. It service restauran es and service shopping centr static offering in trucks, and d foo e bil ll as mo stations, as we rgers. specialises in bu ing its Mexican begun expand na.

Hog’s has also y Mexican Canti nk Fu e, his nc fra h the restaurant Mexican food wit c nti the au ers Funk y’s off nable price, as ients at a reaso freshest ingred ly atmosphere. live d an t ran well as a vib @hbca.com.au Contact: disco

Making an appearance every month in Business Franchise magazine.

Each detailed, 4 color A-Z listing comes with a 150 word write up and your logo.

Excellent for branding and recognition.

Choose a 12 or 6 month package or simply add the A-Z directory onto your FOCUS, PROFILE or ad!

To learn about the A-Z directory or any other products, please contact Kathleen Lennox: kathleen@cgbpublishing.com.au

www.businessfranchiseaustralia.com.au

a-z d i r ecto ry

7-ELEVEN At 7-Eleven, we take a different approach to franchising.

We take care of the things that are a hassle about being a small business owner, and provide you with support every step of the way.

We’re looking for people with bundles of

APPLIANCE TAGGING SERVICES Looking for a franchise with on-going repeat business, large territories and access to an existing client base to get you started?

With over 12 years’ experience, ATS are Australiawide specialists in Electrical Testing and Tagging in accordance with AS/NZS 3760:2010. Providing expert technical, admin, business and sales support, access to our National client base and comprehensive on and off-site training, ATS are committed to helping its franchisees grow profitable and successful businesses.

Battery World Over the past 20 years Battery World has expanded to be the largest and most comprehensive Australian battery retail franchise.

The Battery World franchise network is a fast growing, sustainable, reputable franchise that continues to dominate the specialist battery market.

energy, love providing customers with great service, are great leaders and communicators and have an eye for detail.

So if you think you’ve got what it takes, we’d love to hear from you.

For more information: 03 9541 0711 www.franchise.7eleven.com.au

No prior electrical experience is required, just a passion for safety and a commitment to growing your business.

With low entry fees, minimal franchisee administration, and average returns between $1,000 and $3,000 per week an ATS franchise may be just the opportunity for you.

ATS were named FCA Emerging Franchisor of the Year 2011 and the FCA National Franchisee of the Year 2013 (less than 2 staff).

For further information please contact Steve Wren, National Sales Manager on 1300 287 669, email steve@ats.com.au or visit www.appliancetaggingservices.com.au

to start your own business backed by a nationally established franchise network.

Our Batteryologists are everyday people who have a passion for their work and for helping their customers.

To find out more on becoming a Batteryologist and becoming your own boss contact us today!

With over 110 stores Australia wide and with more set to open in 2019, it’s never been a better time

Call us on 1300 793 209 or visit: www.batteryworld.com.au/Franchise-Opportunities

BEGIN BRIGHT

owners! Becoming a Begin Bright franchisee means you’re equipped with operation and management support, a state of the art online booking system and strategic guidance – enabling you to run your best business!

Begin Bright has been leading Australia’s School Readiness and Primary Tutoring market over the last 10 years, and is now expanding with new territories available throughout Australia!

Since 2008 we’ve grown to over 30 centres, delivering 84,000 sessions each year, with the mission is to help children become happy, smart and confident.

With exciting opportunities for growth, there’s no better time to join our network of business

BK’s Takeaway BK’s Takeaway is a retail food outlet specialising in hot and tasty ready-to-go food and also offering a variety of dine-in options.

BK’s Takeaway is all about traditional Australian fare – from hamburgers, potato cakes, and fish and chips, to sandwiches, coffee, and lots more.

BK’s Burgers were also voted one of Victoria’s top 5 burgers.

The BK’s Takeaway franchising system is based on over 20 years experience in the food and beverage

No matter your background, franchising with Begin Bright is an exciting decision.

For more information, or to enquire about how you can start your journey with us, visit our website today: www.beginbright.com.au/franchise

®

industry. This means we have the right systems and processes in place to enable franchisees to build highly profitable businesses.

Becoming a franchisee with BK’s gives you the advantage of learning from our industry experience team to help you get started in your new venture.

Not only will you receive on-going support from us, but you’ll also be part of a growing family of franchisees sharing similar goals and objectives.

Call Tegan on 5633-2131 Email: admin@bkstakeaway.com.au Web: www.bkstakeaway.com.au

Business Franchise Australia and New Zealand 91

a-z d i r ecto ry

BoConcept

Why join BoConcept?

With over 25 years of franchise experience and 300+ stores in 65 countries, BoConcept is a truly global brand and an established, proven and strong franchise model.

• Global brand with 300+ stores in 65 countries • Outstanding reputation and demand worldwide • Successful business, expanding to 600+ stores in a few years • Experienced and solid franchisor, with a strong and proven concept • Business concept with a quick generating cash flow model • Exceptional training and support in all business areas • High standard store opening process to help the stores perform from day 1 • Extensive Marketing support • Unique Interior Design Service – a powerful tool to differentiate

We are looking for franchise partners in the main cities of Australia who have the synergy and resources to be part of our success story.

For further information: Email: franchise@boconcept.com Website: https://www.boconcept.com/franchise

BOOKS AND GIFTS DIRECT

direct seller of books and gifts across Australia, we use our strong buying power and proven business franchise model, to save money for the consumer and to help you build a prosperous and successful business.

Invest in a superior retail franchise and partner with a global design brand.

From Denmark to the world since 1952, BoConcept specializes in premium quality interior design for the cosmopolitan minded customer, creating outstanding modern and sophisticated living spaces at affordable prices.

Books and Gifts Direct is Australia’s largest direct seller of books and gifts.

We sell our products from lunchrooms and reception desks in more than 25,000 workplaces around Australia. Workplaces include schools, childcare centres, businesses, hospitals, community centres and other corporate entities.

We also sell online.

Our books and gifts sell up to 70 per cent off recommended retail price. As the leading

Clark rubber Clark Rubber is a well-known and iconic Australian business, and has been a part of the retailing landscape for 70 years. Clark Rubber commenced franchising in 1995 and since then has grown its store network to more than 60 locations nationwide.

In 2006 Clark Rubber was awarded the prestigious ‘Franchisor of the Year’ honour by the Franchise Council of Australia, and today, Clark Rubber is Australia’s leading foam, rubber and pool retailer.

For the opportunity of a lifetime… and to realise your dream, apply now: https://booksgiftsdirect.com/franchise/applynow enquiries@booksgiftsdirect.com 02 9899 9655

Clark Rubber offers a unique business proposition which includes business development, site selection, comprehensive training and ongoing marketing and IT support. Clark Rubber has identified several great opportunities for further growth, and is now looking for friendly, customer service-orientated business people to join its network.

For further information and to register your interest, visit clarkrubber.com.au/franchise or call 13 80 90 or direct (03) 8727 9999

Crema Espresso

• A proven business with a simple operation;

Crema Espresso is a franchise that is continually evolving. Already well known for their food and premium coffee, Crema stores are beginning to make waves in the retail community with their store designs.

• Local support;

When recruiting new franchisees, Crema is always looking for community minded people. The business believes that this mind set and attitude brings a warmth and connection to customers that is invaluable.

Crema Espresso provides a business with supervision and consulting readily available. This includes everything from full operation manuals, point of sale terminal, uniform package, store design & fit out together with ongoing research and development supported through marketing and advertising.

Joining the Crema Espresso team gives you the opportunity to own your own business, but not just any business.

DeckSeal DeckSeal lead the way in deck and timber restoration and maintenance services, specializing in the treatment of new and existing timber decks, structures and features.

We are a unique business, delivering in an extremely underserviced market space. DeckSeal offers everyday people the perfect opportunity to capitalise on their existing skills or quickly build a new set without the burden of learning a new trade. Full training and ongoing support are provided with operational manuals.

Specialists in all aspects or timber restoration, preservation and outdoor maintenance, we undertake a wide range of projects including: decking, timber cladding, fences, screens and garage doors to name a few. We also clean and seal concrete and paving.

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• Flexible floor plans; • Regional advertising; • A four week training program; • Ongoing learning for franchisees and their staff; • Store development assistance; • Design support; • Lease negotiations • Staff guidance; and • Much, much more.

Crema Espresso where coffee is the souvenir of the experience.

Contact: antony@cremaespresso.com.au www.cremaespresso.com.au

A timber deck is an iconic part of the Australian outdoor lifestyle and a key feature in countless homes across the country.

With a continual flow of enquiries and an overwhelming demand for our services, we just cannot keep up. DeckSeal currently has territories available in the Western, Northern, South Eastern, Bayside, Geelong/Bellarine Peninsula and Mornington Peninsula regions.

Our territories are large and are all in huge demand for our services. Our current franchisees are enjoying the benefits of the DeckSeal model and are booking at least 6 weeks in advance.

If you want to be your own boss and have the support of a franchise system, love working outdoors and want a better work/life balance then a DeckSeal franchise is not to be missed.

Contact Danielle on 1800 332 525 or email admin@deckseal.com.au

ECOMIST AUSTRALIA Established in 1994, Ecomist Australia is a leading provider of premium quality hygiene products and services, specialising in Odour Control and Insect Control.

Our core product is an innovative programmable aerosol dispensing system that won an award for the Best New Product from The Aerosol Association of Australia and New Zealand. Our aerosol products are manufactured in New Zealand and we offer a natural insect killer and over 50 fragrance options with French perfume.

FASTA PASTA With our authentic Italian background and 30 year success story, Fasta Pasta is now Australia’s largest, independently owned group of ‘fresh pasta’ Italian restaurants. An innovative ever-changing menu, with healthy options and a commitment to outstanding service, have all contributed to Fasta Pasta being voted Roy Morgan’s ‘Quick Service Restaurant of the Year’ in 2012.

Loved for our affordable, fresh, family meals in relaxed fully licensed surroundings, this is a great

floor stores franchising carpet call and solomons flooring The Carpet Call and Solomons Flooring group has been a part of Australian flooring for decades. Solomons started in Adelaide back in 1890 with their first store on Gouger Street and Carpet Call opened their first store in Brisbane in Alderley in 1975. Since then, both brands have been installing high quality flooring throughout Australia. We have over 120 retail and franchised stores nationally.

We have over 55 franchised stores in both brands across Australia and are well represented in all capital cities and many regional towns and cities. We have fantastic opportunities for growth through Queensland and New South Wales in particular, as well as small pockets of areas in the other states.

The beauty of our model is that it works extremely well as a stand-alone

fresh juice vending Freshly squeezed Orange Juice vending machines are rapidly growing in the global market and we ‘re now currently looking for franchisee partners to replicate this successful venture in Australia.

By offering Australian consumers a 100% natural, deliciously healthy alternative drink option to what is currently available - with no added preservatives and made from Australian grown and sourced fruit - t’s a win-win business concept

Our ultimate aim is to enhance the environments of our customers through our high quality products and excellent after-sales service.

Over the last 23 years we have developed a secure and proven franchising business model. Each Ecomist franchise has its own exclusive territory based on post codes and purchase price is generally 2x the net income of the existing business.

If you are interested in finding out more, please contact Gary Vandoros on 0447 743 157, email gary.vandoros@ecomist.com.au or visit www.ecomist.com.au

opportunity to be part of our winning national organisation.

Extensive initial training and ongoing support is provided. New franchisees undergo 12 weeks of training in one of our company restaurants covering areas such as, front of house, kitchen (all areas), necessary bookwork, PPS, and Management skills.

For more information on joining a successful franchise call 08 8304 8600, email franchise@fastapasta.com.au, or visit our website, www.fastapasta.com.au

flooring business with a focus on carpet, vinyl, timber and laminates but it also can be bolted onto an existing business, like tile shops, blinds and shutters retailers or even home furnishings businesses. Our Modular program means that with as little as 40m2, existing retailers can add a Carpet Call or Solomons Flooring franchise into their existing business. The great benefit of this is low set up costs as well as little to no increase in overheads like wages, electricity, security etc.

Over the years, tens of millions of dollars have been spent establishing the Solomons and Carpet Call brand names. This symbolises experience, trust and consumer confidence, with an undeniable reputation for quality, range and genuine value. This position of strength maximises benefit for your investment.

For a confidential discussion, please contact Jack McClane, National Franchise Manager on 0402791187 to see if owning a Solomons Flooring or Carpet Call store is right for you.

that is good for investors and the consumers alike. We provide an easy way to get you started on your very own business with the necessary support to allow you to focus on core operations.

Our offer starts at a minimum commitment of 10 machines and our fee structure has been designed to align our success to YOUR success.

For further information, or to request a full investment memorandum please contact us via email in the first instance at: robert@freshjuicevending.com.au

GeckoSports

Reasons to invest in a GeckoSports Franchise...

Own a GeckoSports Franchise today!

• Low level investment • Low overheads • Multiple channels of revenue • Excellent margins & profitability • Non-seasonal -> operate all year round • Weekly and monthly cashflow • Accredited Government funded programs • Website referral system • Supportive operating system & environment • Sports & Fitness fun programs • Diversity -> no day is the same • FUN + ACTIVE + REWARDING!

*KIDS SPORTS & FUN FITNESS* Do you find the traditional 9-5 job stuck indoors all day unappealing... you’re not alone! A GeckoSports franchise instantly gives you the work/life balance you’ve only ever dreamed of. Become your own boss where you have the autonomy to work within your local community engage with kids, families, schools, sports clubs, councils and more delivering fun active kids sports and fitness programs!

Imagine being able to follow your life’s passion and desire to keep kids active while improving their health and wellbeing!

For more information contact our Franchise Director Kim O’Donnell at 0417 159 807 or 1300 432 565 Email: franchise@geckosports.com.au

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Hog’s Australia’s Steakhouse Hog’s Australia’s Steakhouse is home to the famous 18-hour slow cooked prime rib and curly fries. A much loved restaurant group, Hog’s will celebrate 30 years of operation next year and boasts 75 restaurants across Australia and New Zealand.

Last year, Hog’s Australia launched it’s quick service model, Hog’s Express, a smaller

InXpress Do you want to join one of Australia’s fastest-growing franchise businesses? As an InXpress franchisee you have the rare opportunity to capitalise on one of Australia’s fastest growing industry sectors: freight and logistics!

Utilising global super brands like DHL,TNT, TOLL and Startrack, InXpress Franchisees consult small/medium business on their freight and logistics ensuring they receive world-class service and extra mile customer service. InXpress is not your average franchise.

Benefits: • Low entry costs • Low risk • No inventory and no warehousing,

JIM’S POOL CARE MOBILE POOL SHOPS Join our team and Australia’s largest franchise system to build a business that suits your goals and lifestyle.

Owning a Jim’s mobile pool shop means you can earn money from multiple streams. You charge for your time and charge for the lucrative pool items such as chemicals, pool equipment and pool accessories. This means your income is not limited by how many hours you can work and gives you

JUST CUTS™ australia Join the largest, most successful hairdressing network in the Southern Hemisphere, servicing over 100,000 clients each week! Just Cuts™ offers a fixed franchising fee, with flexible finance options and ongoing business and marketing coaching, guidance and support. Did you know that most Just Cuts™ Franchise Owners are not hairdressers and just over half own more than one salon?

Why? Because our proven systems, support and training allows your Stylists to easily run the business for you.

JUST CUTS™ new zealand Join the largest, most successful hairdressing network in the Southern Hemisphere, servicing over 100,000 clients each week! Just Cuts™ offers a fixed franchising fee, with flexible finance options and ongoing business and marketing coaching, guidance and support. Did you know that most Just Cuts™ Franchise Owners are not hairdressers and just over half own more than one salon?

Why? Because our proven systems, support and training allows your Stylists to easily run the business for you.

94 Business Franchise Australia and New Zealand

footprint proposition that complements the fullservice restaurants. It takes the form of both a static offering in shopping centres and service stations, as well as mobile food trucks, and specialises in burgers.

Hog’s has also begun expanding its Mexican restaurant franchise, Funky Mexican Cantina.

Funky’s offers authentic Mexican food with the freshest ingredients at a reasonable price, as well as a vibrant and lively atmosphere.

Contact: disco@hbca.com.au

• No vans or trucks • High passive income What It takes to succeed: • High energy individuals who enjoy a fast paced environment • A passion to build a successful business • No previous experience in freight & logistics is required Locations currently available: • Newcastle,NSW • Perth.WA • Adelaide,SA • Brisbane,QLD

• Wolloongong.NSW • Melbourne.VIC • Sydney,NSW • Hobart,TAS • Geelong,VIC For more information, visit http://inxpressfranchises.com/ Contact our franchise development team on 1300 097 857 or sales.au@inxpress.com.

scope to grow the business to a level that suits you.

Another great bonus is our FLAT franchise fee. Yes, our fee is a flat franchise fee system so you can work hard and earn as much as you like and pay the same at fee with all training and ongoing support included.

If you are ready for a change then you need to put us on your list.

We have selected opportunities around Australia so give us a call and come for a ride along.

For more information ph: 131546 or visit www.jimspoolcare.com.au

Just Cuts™ are also excited to announce our kiosk option! With only 49 sites available Australia wide, you can buy yourself a new lifestyle from just $80,000!

Just Cuts™ Franchisees also have exclusive access to our professional retail range made in Europe; JUSTICE Professional™.

Contact: Luke Manning 0439 130 499 or 1800 334 498 Email: bdm@justcuts.com Website: justcuts.com/franchising LinkedIn: Just Cuts™ Franchising

Just Cuts™ are also excited to announce our kiosk option! With only 49 sites available Australia wide, you can buy yourself a new lifestyle from just $80,000!

Just Cuts™ Franchisees also have exclusive access to our professional retail range made in Europe; JUSTICE Professional™.

Contact: Luke Manning 0439 130 499 or 0800 100 114 (toll free) Email: bdm@justcuts.com Website: justcuts.com/franchising LinkedIn: Just Cuts™ Franchising

Laser Clinics Australia At Laser Clinics Australia, our vision is to provide affordable, effective and safe non-invasive cosmetic treatments to all Australians.

Since 2008, Laser Clinics Australia has grown to be the largest provider globally of laser hair removal, cosmetic injections and skin treatments.

Laser Clinics Australia is an award-winning business with over 100 clinics in Australia and still growing.

Laser Clinics Australia offers every franchisee partner a unique franchise business opportunity. Each location we open is a 50/50 partnership between the franchisee partner and Laser Clinics Australia. Our unique business

LISTEN TO YOUR BODY (LTYB) In fitness, one size doesn’t fit all. LTYB sessions are individually programmed to drive 90%+ retention rates across all studios and build a strong local fitness community.

Established in 2004, LTYB has proven progressive systems, high level franchisee support and strong goals of member results and Franchisee Profitability.

LTYB look for motivated people who have a passion to make a difference to member’s lives. To be successful in the fitness industry, you need to walk the talk and continue to grow as a business leader and fitness leader.

LUXAFLEX® Window Fashions Join the Luxaflex Dealer Network

Luxaflex Window Fashions offers Australia’s largest range of window coverings for inside and outside the home.

The Luxaflex Alliance is a market leading license program that allows access to our trusted brands, trademarks and marketing programs. Designed for small to medium sized businesses, the minimum criterion of loyalty of window covering purchases is required, along with the sale of the entire Luxaflex range.

MAGNETITE WINDOWS Do you have a trade license or are you hands-on? Do you want to become your own boss?

Your WINDOW of opportunity is now.

As noise and energy efficiency are prominent issues plaguing home owners, now is the perfect time to become part of an expert team who solve these issues every day.

Magnetite specialises in double glazing existing windows, as the core offering in a product range that includes seals, tint and other complementary window treatments. Our

MIDAS Midas is a trusted household name with over 40 years of experience in the Australian market. Initially establishing itself as an exhaust and muffler specialist, we’ve now become the auto service experts specialising in car service and repairs for all makes and models, SUV & 4WD’s, brakes, suspension and, yes of course, we still do exhausts.

There are currently over 80 Midas Auto Service Expert centres across Australia and we have an ambitious plan to grow our network across Australia.

We are always looking for new franchisees who have

partnership model reduces start up and ongoing operational costs.

We seek out the most motivated individuals who will be empowered to take on the day-to-day responsibilities of running a successful clinic. Franchise partners receive a $100,000 salary from day one.

We are looking for franchisees for new clinic locations in Victoria, Queensland, Western Australia, Tasmania and are now launching into the New Zealand market.

Visit: www.laserclinics.com.au/franchise-opportunities Email: franchiseopportunities@laserclinics.com.au Call Liz Seeto +61 402 171 399 or Fiona Harcourt +61 400 303 272

LTYB currently have 12 Studios in Victoria and Queensland with expansion plans Australia Wide. We offer our franchise partners an exclusive territory, full marketing support, IT and Software support, Online Operations Manual access and training, Studio business coach, Franchisee Induction program, supplier discounts, professional development opportunities and everything required to open your studio.

We are currently recruiting Franchise partners Australia wide. For further enquiries, feel free to contact: Ph: 03 9331 5673 Email ben@listentoyourbody.com.au Website: www.listentoyourbody.com.au

The Alliance program is based on effective showroom presentation, advertising and marketing, Wed-based technology, training and business administration support tools.

No experience is required to enter the Programs as all training is provided, which focuses on enhancing the customer experience and increasing your profitability.

For more information on joining the Luxaflex Alliance Program contact the Luxaflex Sales and Operation Manager Damon Gardner on 02 9638 8000 or email damon.gardner@hunterdouglas.com.au

solutions provide all the benefits of double glazing without the hassle of replacement windows. At Magnetite, we aim to exceed our customer’s expectation of comfort.

We believe this starts with the first contact and continues through an assessment, installation and after sales service. Join the team that has: • 18+ years technical and practical experience • #1 place in a niche market, with a unique product range • Comprehensive, hands-on training, with ongoing business and technical support • Average franchisee tenure now over 15 years.

To learn more, visit www.magnetite.com.au

a passion for all things automotive. Buying into a franchise gives you piece of mind that you are buying into a trusted brand and a proven system, as we have already worked out the pitfalls and created a solid foundation for you to build your business.

Midas franchisees are comprehensively supported in all areas of business, including workshop operation, national & local marketing, a segment leading fully integrated point-of-sale system and ongoing local field management expertise.

(03) 8878 1122 franchiseenquiries@midas.com.au

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NANOSHIELD NanoShield’s energy saving nanotechnology window treatments will add value to homes by improving thermal comfort, energy saving, UV protection and condensation suppression.

Franchises are available for discerning and passionate individuals who want to join a strong team and help improve the quality of life for Australians through the sale and installation of NanoShield Cosy 24/7! Share in this exciting ground floor opportunity as we match a globally

Ryco RYCO Hydraulics is one of the largest hydraulic hose and fittings manufacturers in Australasia.

The RYCO Trade Mark has been established in the industrial market for over sixty years and is a trusted name for quality products and service.

and is a successful channel to market for the RYCO group.

Target markets for RYCO 24•7 “product and services” being emergency breakdown and installation of hose and fittings to a large range of industries.

The RYCO 24•7 Mobile Connector Specialists franchises was established over twenty years ago

Training is provided and conducted at RYCO’s design centre in Melbourne, or at the RYCO 24•7 Mobile Connector Specialists designated Service Centre. RYCO’s training packages meet a Nationally Recognised Standard and cover all aspects of the identification of hydraulic hose and fittings.

Safety Navigator

desktop and mobile devices, and is

Safety Navigator is leading provider

backed by unlimited training and support,

of cloud based health and safety and

making your initial rollout across the

incident reporting platforms for Franchise

network, and ongoing compliance…

Groups in Australia and New Zealand.

easy. Simplify. Engage. Comply.

Safety Navigator is available across

www.safetynavigator.com.au

Snap Print Design Websites

Success Story that has expanded its successful franchise model into Master Franchises in Ireland, China, New Zealand.

RYCO 24•7 is a member of the Franchising Code Council Limited, which administers the Franchising Code of Practice.

SAFETY NAVIGATOR

dominant product with an effective business system to provide a cost-effective solution to a rapidly growing market with minimal competition in its class. Our unique business is simple to operate, scalable, affordable and highly rewarding.

NanoShield treatments are generally carried-out during the day providing excellent work life & family balance.

Contact: Ray Liew 1800 COSY 24/7 (1800 267 924) www.nanoshield.com.au

The sophisticated Snap Centre of today is a far cry from the convenience of the corner printer of the 60’s.

Snap is one of the most recognised brands in Australia with a reputation in its field of quality production and service, and a commitment to people.

Snap continues to evolve its franchise model and is building on its reputation for innovation and embracing change through the introduction of new products and services combining the best of traditional print with online marketing solutions.

We are Multiple Award Winning Australian Franchise

SNAP-ON TOOLS Snap-on Tools Australia & New Zealand is a mobile franchise operation putting high quality tools and equipment into the hands of mechanics, engineers, and other professional tool users across the country.

Snap-on Tools is a subsidiary of Snap-on Incorporated, a leading global innovator, manufacturer of tools, diagnostics and equipment solutions for professional

96 Business Franchise Australia and New Zealand

For more information please contact Kevin Lacey at: Phone (02) 8870 5106 Email: franchiseenquiries@snap.com.au Website: www.snap.com.au Facebook: https://www.facebook.com/ SnapPrintDesignWebsites/ Twitter: https://twitter.com/SnapAustralia?ref_src=twsr c%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor LinkdIn: https://www.linkedin.com/company/snapprinting/

technicians, with an established network of franchise operations across the globe.

After 30 years in the Australian market, Snap-on continues to perform, providing robust financial results for its network of over 175 franchisees.

Extensive training and ongoing support is provided - no previous mechanical experience required.

Snap-on offers an exclusive finance package to assist new franchisees.

SPRAY PAVE AUSTRALIA Pty Ltd Earn up to $3,500 per week.

We are a National Company specialising in all treatments and decorating for existing concrete.

If you wish to have a profitable home based business, with lifestyle hours, then we can direct work to you.

All existing concrete is a job waiting for our treatments. Domestic, commercial and Goverment.

This is not a Franchise. Instead it’s an un-restrictive, fully supportive, Business License system. You chose when, where and how you work. No more rules or fees. You keep all your profits.

Full investment $37,500 or use our easy payment plan from $7,500 deposit, plus monthly payments.

Includes airfares to Adelaide Head Office Training Centre.

Established in 1991, Security with Australia’s largest and oldest network. FREE CALL 1800 688 888 Website: www.spraypave.com

THE INTERFACE FINANCIAL GROUP - IFG 50/50

franchise network in Australia, New Zealand, Canada, the Republic of Ireland, the United Kingdom, the United States, Mexico and South Africa.

The Interface Financial Group franchisees provide shortterm working capital for businesses by purchasing their invoices at a discount.

In the current economic climate SMEs need working capital but banks are unwilling or unable to provide it. Many of these businesses are turning to Interface for a solution.

Interface has been in the alternative finance market business since 1972. It is the leading alternative funding source for business, and distributes its service through its

The IFG 50/50 franchise offers the opportunity to get started quickly and with a more modest capital base. Why? Because we syndicate all transactions with our franchisees 50/50. Franchisees do the ‘people work’ - we do the ‘paperwork’ – a great combination to achieve an aboveaverage return.

the lott

Incorporating the Lott in your outlet could be more attainable than you think. If you would like to find out more information, contact us on the contact details below!

The Lott Thelott.com/franchisee Email: franchiseeenquiries@thelott.com Phone: VIC, TAS & NT – Tatts, Tatts NT – 07 3877 1095 NSW & ACT - NSW Lotteries – 07 3877 1118 QLD - Golden Casket – 07 3877 1117 SA - SA Lotteries – 07 3877 1096

Join us at the Lott – Australia’s official lotteries!

The Lott offers Australia’s official lottery games which Australians trust and love! We are one of Australia’s largest franchise networks with almost 4,000 franchisees operating across all of Australia, except WA. Our franchise system complements a range of businesses including convenience stores, convenience supermarkets, convenience fuel outlets, pharmacies, tobacconists, newsagencies, hotels and clubs (SA), and more!

Theobroma, Chocolate Lounges, Pavilions, Bars The earliest record of chocolate was over two thousand years ago in the central American rainforest where the tropics is the ideal climate for the cultivation of the plant from which chocolate is derived, the Cacao Tree, Latin name “Theobroma Cacao” or “Food of the Gods”.

The concept was developed in response to the spiraling demand of high quality chocolate and chocolate beverages with the added enhancement of a full food menu, with some stores even offering a licensed venue.

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

Our franchise offers: • Innovative and unique concept that includes all of life’s pleasures- chocolate, coffee, food, alcohol and retail.

• Highest quality chocolate products.

• Full training provided.

• Professional support team with a range of skills to assist you.

With new stores opening in countries across the globe, be part of something special.

Contact Ben on +61 431 727 004 E: ben@theobroma.com.au www.theobroma.com.au

Thermawood

Become part of the success story with:

Thermawood Retro-Fit Double Glazing System is designed to retro-fit double glazing into existing wooden windows.

Proven systems and processes with the Thermawood Patented drainage system.

• Full Training and ongoing support • Strong industry Growth • Full Advertising & Marketing • Patented product new to the Australian Building industry.

We are looking for passionate self-motivated people to join the Thermawood team.

Retro-Fitting fitting double glazing into existing wooden windows allows the home owner to retain the character of their windows, be more energy efficient, reduce energy costs and reduce noise.

Please contact Thermawood Retro-Fit Double Glazing for more information.

Along with installing double glazing Thermawood installers also fit draft/sound seals to all types of windows including double hung windows, casement windows and doors.

Info@thermawood.com.au www.thermawood.com.au 0455 555 330

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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 • 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 in Australia and New Zealand Visit laserclinics.com.au/franchising or www.laserclinicsfranchising.com/nz for more information. Call Liz Seeto +61 402 171 399 or Fiona Harcourt +61 400 303 272.

We’re with you.