July/Aug 2019 BUSINESS FRANCHISE Australia and New Zealand

VOL 13 ISSUE 05 jul/aug 2019

La Porchetta THE RIGHT INGREDIENTS FOR A BRIGHTER FUTURE

TOP TEN TIPS FOR TAX TIME special feature

ON THE ROAD

MOBILE FRANCHISES TOP TIPS FOR PROFESSIONALS

LOOKING TO OWN A FRANCHISE BUSINESS

For the love of business Passion is the backbone to any successful business. At SNAP, our passions are print and building businesses. As part of our network, you’ll be supported by a team with the expertise and passion to see your business reach its full potential.

Boasting a 120 year history in the print and design industry and with 40 years in franchising, SNAP is 100% Australian owned and operated. We have over 140 Snap Centres locally and we are internationally franchised in Ireland, New Zealand and China.

Nothing beats the satisfaction of owning your own business and becoming your own boss, with the security and freedom to dictate your working day and lifestyle.

Some reasons why SNAP is the right choice for you: Become part of a Multi Award Winning Australian Franchise network Join a growing market space in digital print Open doors with a powerful and recognised brand Have sales leads generated for your business Be supported in your local area marketing programs

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Franchise Opportunities Available Now! If you want to learn more about becoming part of the SNAP team, we’d love to hear from you!

P. 1300 810 233 E. franchiseenquiries@snap.com.au www.snap.com.au

Be the

LEADER OF YOUR OWN SUCCESS Welcome to a world of opportunity, brought to you by 7-Eleven, the brand that’s world famous.

A 7-Eleven franchise is a partnership in success.

When you buy a 7-Eleven franchise, you buy two things. Firstly, a brand name that’s recognised around the world, and secondly a business system that works, one that provides more support than most other franchise networks.

BENEFITS OF BEING A 7-ELEVEN FRANCHISEE Our stores are open 24/7, so we’re with you 24 hours a day, supporting you in every part of your operation.

From setup, to training, to marketing, and even to book-keeping, we’ll help you turn your new business into a solid investment.

We set up shop for you and give you

full training

We take payroll admin off your hands

and help with the book-keeping

We deal with suppliers to get you the

best products

We manage the fuel

Financials

Contact Details

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

Franchise Development Managers

The 7-Eleven franchised business model is one with a difference, because we tie our financial success to the success of our Franchisees.

7-Eleven shares in the profits, so it’s in our interest to ensure that we continually work with you to meet the needs of your customers to grow sales, and to grow profits.

Our gross profit split is determined progressively, and there are other shared income stream profits, such as commissions.

We have brands you won’t find anywhere

Brett Reading Queensland

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

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

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

else

We provide advertising and promotional

support

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

FRANCHISING

Finance your Equipment & Fitout with Franchise Finance Australia Finance Australia can get you the equipment you need for your franchise today.

What Can We Fund?

- New Store Fitouts - Store Refurbishments - Business Re-sales - Equipment Purchases - Vehicles, Trailers & Vehicle Fitouts - National Equipment Roll-outs

Why Choose Us? - Competitive Rates - 24/7 Customer Service - Repayments Can Be 100% Tax Deductible - Terms Start From Just 12 Months - Flexible End Of Term Options - Fast Online Application Process

FRANCHISE

FINANCE AUSTRALIA

Call us on 1300 659 676

Division of

GROUP

b us i ness f r an c h i s e m ag az i ne aust r a l i a an d ne w zea l an d

AUSTRALIA and NEW ZEAL AND

AUSTR ALIA and NEW ZEAL AND

From the

BUSINESS FRANCHISE AUSTRALIA and new zealand VOLUME 13 ISSUE 5, jul/aug 2019

Publisher

president: Colin Bradbury. colin@cgbpublishing.com publisher: Vikki Bradbury. vikki@cgbpublishing.com SALES & marketing manager: Kathleen Lennox. kathleen@cgbpublishing.com.au EDITORIAL: Hayley Drew. editor@cgbpublishing.com.au PRODUCTION: Mallory Anderson. production@cgbpublishing.com.au ACCOUNTS: accounts@cgbpublishing.com.au GRAPHIC DESIGN: Jejak Graphics - Michelle Quinn jejak@bigpond.com COVER IMAGE: LA PORCHETTA TO SUBSCRIBE: www.businessfranchiseaustralia.com.au or www.isubscribe.com.au CGB PUBLISHING PO BOX 968 MT ELIZA, VICTORIA 3930 TEL: (03) 9787 8077 FAX: (03) 9787 8499 Email: cgb@cgbpublishing.com.au www.businessfranchiseaustralia.com.au www.businessfranchisemagazine.co.nz

This issue of Business Franchise Australia and New Zealand follows the successful Franchising & Business Opportunities Expo in Brisbane, which was a great opportunity for future franchisees to absorb the best that the industry has to offer, read more about it on page 82.

La Porchetta is featured on the cover of our July/August issue, our cover story delves into how the La Porchetta brand, built on providing traditional Italian meals and warm service, has adapted to the demands of the contemporary consumer in a changing marketplace.

Our special feature this issue is On the Road: Mobile Franchises, be sure to check out FC Business Solutions’ top tips for mobile franchisees and Brian Keen’s expert advice piece on mobile franchise versus bricks and mortar.

Inside this issue of Business Franchise, you’ll find insightful articles from a range of experts including, Dr Sudha Mani – Senior Lecturer at Monash University, Alexander Millman – Senior Workplace Advisor and Associate at the National Retail Association and Justine Williams – Assistant Commissioner of Small Business at the ATO who has offered up the tax office’s top ten tips just in time for tax season.

As always, the magazine is packed with latest news, expert advice articles and opportunities from the franchising industry.

Business Franchise readers can gain free entry to the Franchising & Business Opportunities Expo held each year in Sydney, Brisbane and Melbourne. The next expo will be at the Melbourne Exhibition Centre on 24-25 August. Simply visit www.franchisingexpo.com.au and use the code BFM when purchasing to secure your free ticket.

Enjoy the read.

Vikki Bradbury Publisher

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

contents

july/august 2019

On the Cover

12

12

Cover Story: La Porchetta - The Right Ingredients for a Brighter Future

24

Top Ten Tips for Tax Time

41

Special Feature: Fixed vs Mobile Franchises

18

Top Tips for Professionals Looking to Own a Franchise Business

In Every Issue

32

36

8

What’s New!

Announcements from the Industry

14

A Message from the CEO

Mary Aldred, Franchise Council of Australia

46

Feature Editorial: On the Road: Mobile Franchises

86

Hot Topics: Behind the Headlines

Jason Gehrke, Franchise Advisory Centre

89

Professional Services Listings

90

Franchise Listings

92

Franchise A—Z Directory

Snapshot 34

Spray Pave Australia: High Profits from an Unusual Industry

80 FCF Fire & Electrical Wants You!

Focus Feature 35

National Franchise Insurance Brokers: Ensure Your Insurance

67 Speed Queen: It all Comes out in the Wash

52

74

Profiles 22

Tutor Doctor: Hanging the Trajectory of Student’s Lives

26

The Lott: Franchising with the Lott! A Customer-Focused Business

38

Zarraffa’s Coffee: Training for Business Success

62

Clark Rubber: The Clark Rubber Commitment

70

Flip Out: Be a part of the Flip Out Global Success Story

82

Franchising Expo: Find the Answers at the Franchising Expo

also in this issue: 7-Eleven...................................................................... 3, 92

Expert Advice 16

How to Become a Leader Others are Inspired to Follow

Appliance Tagging Services. .............................. 92 Battery World....................................................... 31, 92

Shelley Flett | Author ‘The Dynamic Leader’

18 Top Tips and Expert Advice for Professionals Looking to

Own a Franchise Business

Zoe Baker | Australian Skin Clinics

BK’s Takeaway............................................................ 92 Boost Juice................................................................... 92 DeckSeal. ....................................................................... 93

20

How to Write Press Releases and Email Pitches for Local Reporters Pete Burdon | Franchise Media Training

Ecomist Australia....................................................... 93

24

Top Ten Tips for Tax Time

Fasta Pasta.................................................................... 93

28

Run ‘Your’ Business, Not Your Predecessor’s

32

The Crucial Steps to Ensure the People You Hire are able to Deliver

64

Selling Your Franchise or Coming to the End of Your Term

72

Zero Incidents: Ten Tips to Work Towards a ‘Risk Free’ Workplace

74

What can Franchisors (and Franchisees) do to Reduce the Risk of Franchisee Insolvency?

78

Unleashing the Franchising Taskforce: How You can Prepare Your Business as a First-Timer

84

Franchise Expo Pro Strategy Session

Justine Williams | Australian Taxation Office

Alexander Millman | National Retail Association

Karen Gately | Corporate Dojo

Robert Toth | Marsh & Maher Richmond Bennison

Chris Beasley | Safety Navigator

Dr Sudha Mani | Monash University

Spencer Slasberg | Bennett & Philp

George Knauf | My Perfect Franchise

Fixed vs Mobile Franchises Feature

FC Business Solutions...................................... OBC Franchise Finance Australia. .................................. 4 Hamoniq. ........................................................................ 89 Interface Financial Group...................................... 88 InXpress. ......................................................................... 94 IP Partnership.............................................................. 89 Jejak Graphics. ............................................................81 Jim’s Pools Care. ....................................................... 94 Just Cuts Australia.................................................... 95 Just Cuts New Zealand......................................... 95 Listen To Your Body................................................. 95 Lock & Roll..................................................................... 95 Magnetite Windows. ................................................ 96 Marsh & Maher. .................................................. 77, 89

42

What’s New! Announcements from the Industry

46

Feature Editorial: On the Road: Mobile Franchises

48

Expert Advice: The Pros and Cons of a Mobile vs a Bricks and Mortar Franchise

52

Expert Advice: Mobile Franchisee Tips: Put Yourself in the Driver’s Seat Corina Vucic | FC Business Solutions

RYCO 24•7.....................................................................97

54

Expert Advice: How the Virtual Workplace is Transforming Human Resources

Safety Navigator..........................................................77

Ruth MacKay | OURTEL Solutions

Snap-on Tools..................................................... 61, 97

56

Have Your Say: Being Agile in a Fast-Paced World

58

Expert Advice: The Only 4 Things You Need to Know About Marketing Your Franchise Business

Troy Mckinna | Agents of Spring and Calm & Stormy

Mobile Skips................................................................. 96 Nanoshield..................................................................... 96 Nirvana Beauty. .......................................................... 96

Brian Keen | Franchise Simply

Beth Pocklington | Gymbaroo

Regus.................................................................................21

Snap Print & Design....................................... IFC, 97 Theobroma Chocolate Lounge......................... 98 Thermawood................................................................ 98

what’snew!

Bubble tea franchise brewing in Melbourne This spring, fans will be able to get their favourite bubbly drink at a new store opening in Westfield Plenty Valley. The lively shopping centre is situated in the suburb of Mill Park in Melbourne.

The Little Cha’s first store opened in 2017 with a mission to westernise bubble tea and bring its delicious fruity flavours to the Australian population. To date, the company has 10 successful stores in popular locations across New South Wales and Western Australia, as well as an international location in Taiwan.

Founder of The Little Cha said, ‘The bubble tea industry has extreme growth potential.

If you look back to five years ago bubble tea was a concept very fresh and unknown to Australians, compared to now where the product is a known and loved staple in Australian’s diets. Whilst there is still a focus on the Asian demographic, we know and believe that there is room for growth for the western demographic also.’

popularity of Asian brands and concepts in Australia, as a nation we are very open to trying new things. We have a goal to become a core part of the Australian lifestyle.’

‘Australians love anything fresh, fruity and trendy. We have combined those three things into one brand. Not to mention, the

‘Around 70 per cent of The Little Cha customer-base originates from a westernised culture - this is a very good indication

that we are reaching our goals and target market. We have tailored our flavours and bubble tea varieties to suit everyone but have especially focused on providing popular and recognisable options to cater for people from a westernised background.’ www.thelittlecha.com

Diggermate reaches franchise milestone The Diggermate franchise has hit a double figure milestone with its 10th franchise officially open in Echuca, Victoria.

Proud franchisees, Phil and Melissa Gregory relocated to the industrial area in Echuca to set up maximum exposure for the new machine hire franchise.

The new location offers machinery hire for 1.7T mini excavator, 300mm & 450mm auger with auger driver, wet hire, and machine delivery. Diggermate customers in nearby areas including Moama, Deniliquin, Kyabram, Shepparton and Bendigo can also benefit from the new location.

The Diggermate franchise network has grown substantially over the past year, with new sites open in multiple states, including Victoria, Queensland and South Australia. There are also plans for future operations in New South Wales and Western Australia.

Mick Watkins founder of Diggermate said, ‘We’re super excited about the 10th franchise and it’s a huge milestone in the Diggermate story. No doubt when you hit double figures with anything substantial in your life it’s time to celebrate.’

‘We are even more excited that we have been able to help new business owners to launch a successful business and we have seen the changes in people’s financial lives and family lives as a result, so that is the most rewarding thing.’

‘Our goal is to double that number by the end of the year, so we

8 Business Franchise Australia and New Zealand

are super motivated to get this happening. We have put some great initiatives together for new locations.’

Diggermate is a unique opportunity that requires a limited number of hours per week. There is the possibility to run a Diggermate business on the side of your day job, or full-time as a dedicated franchisee. www.diggermate.com.au

7-Eleven signs new partnership to support the youth of Australia

Kwik Kopy Five Dock Crowned 2019 Franchise of The Year The 7-Eleven Good Cause program continues to develop, with their youth pillar partnership with ReachOut recently launching.

ReachOut is Australia’s leading online mental health organisation for young people and their parents. Their practical support, tools and tips help young people get through anything from everyday issues to tough times. The information they also offer parents makes it easier for them to help their teenagers.

7-Eleven CEO Angus McKay says the partnership allows us to give back to those people who are our customers.

‘We set out to put together a program called Good Cause, it has four pillars that guide our areas of support – food, migrants, youth and community. The ReachOut partnership fits solidly into the pillar that is about youth, it’s about our ability to talk to those people who come to our stores, to help people become part of a wider network but for us ultimately to give back to those who shop in our stores,’ Mr McKay said.

‘We firmly believe that as a business you not only get to take customers with you on a journey as customers, but we need to give back to those customers as part of the community.’

ReachOut has been changing the way people access help since launching as the world’s first online mental health service more than 20 years ago. Everything they create is based on the latest evidence and designed with experts, and young people or their parents. That’s why their digital self-help tools are trusted, relevant and easy to use.

ReachOut CEO Ashley de Silva says the partnership will help them to reach more people to provide support. ‘ReachOut is all about digital support to help young people with whatever life throws at them. We’re excited to work with the team from 7-Eleven because so many of their customers, suppliers and staff are the young people and parents our service is designed for. We’re looking forward to working together in the years ahead to help drive innovative approaches so we can help even more people,’ Mr de Silva said.

Available for free anytime and pretty much anywhere, ReachOut is accessed by 132,000 people in Australia every month, more than 1.58 million each year.

Over the coming three years 7-Eleven will be working with ReachOut to reach over 1 million young people and parents who need support navigating the bumpy road that is teenage years. www.7elevenstories.com.au

Kwik Kopy Five Dock has been crowned winner of the 2019 Franchise of The Year Award. The national award was held in Melbourne in April and runs annually by Kwik Kopy Australia to recognise the most efficient and profitable centres.

The award ranks centres by using the top quartile in four key areas including, sales turnover, profit before owners draw, production efficiency as well as owner’s profit percentage.

David Bell, Managing Director at Kwik Kopy Australia has described the win as ‘highly deserving’, as the centre was struggling when it was bought five years ago but has since transformed to be one of the best Kwik Kopy businesses.

‘Kwik Kopy Five Dock is the only business in 10 years to get double digit growth three years in a row and break into the million sales club.

The owner is a giver, not a taker. He is a member of the performance group, and is an innovator’ said Bell.

Commenting on the award, Paul Lindsay owner of Kwik Kopy Five Dock said ‘As soon as I bought the business my first challenge was to get customers to trust Five Dock again. I emailed every customer on the database to let them know that I would fix any past issue and give them a positive experience.’

‘The key to my success has been outstanding customer service and fast turnaround times on print and quotes’ said Lindsay. ‘I aim to give everyone the best possible level of service and quality, I turn around 99 per cent of quote requests within 20 minutes.’

‘There is no deadline too tight, customers often call up or email a request that they think is going to be very difficult to achieve and I simply say yes, I don’t think we have ever turned away a request and always meet the deadline.’

‘I brought a lot of experience to this business which also makes me fairly unique in the franchise print industry, I am an offset printer by trade, and I have worked as an employee at several different Kwik Kopy centres across 21 years.’

The Franchise Of The Year award winner believes the secret to success is, ‘work hard, always make sure you are open with your customers, don’t try to hide mistakes from them, be honest if there has been an issue that may delay their work and don’t promise something if you cannot deliver on that promise.’ www.kwikkopy.com.au

Business Franchise Australia and New Zealand 9

what’snew!

Sofitel Sydney Wentworth partners with Archie Rose Distilling Co to celebrate the Archibald Prize 2019 For the 15th consecutive year, Sydney’s ‘hotel for the arts’ Sofitel Sydney Wentworth is proud to be the Official Hotel Partner of the 2019 Archibald Prize, now on at the Art Gallery of NSW until 8 September 2019.

This year, Sofitel Sydney Wentworth have partnered with the award-winning Archie Rose Distilling Co, to celebrate Australia’s most extraordinary art event with art-inspired cocktails and the ever-popular Archibald High Tea. For the first time, new partner Archie Rose Distilling Co, have curated two Archie cocktails available in Soiree Bar from now until 31 July 2019.

Experience a creative, art-inspired range of gin-based cocktails including the light, fresh and clean ‘The Archibald’ featuring Archie Rose’s Signature Dry Gin, dry sherry, soda with a lemon twist; a perfect start to your Archibald Prize experience.

Find out more www.sofitelsydney.com.au/archiecocktails

7-Eleven Australia wins the Canstar Most Satisfied Customers – Service Stations Award for second year running The 7-Eleven Australia team is celebrating winning back to back Canstar Most Satisfied Customers – Service Stations awards. 7-Eleven Australia beat 10 other brands to receive the 2019 award, following on from the 2018 recognition.

The award is based on the results of extensive independent customer research conducted by Canstar into the experiences of service station customers Australia wide. Customers who filled up a vehicle at a service station in the last month were asked to provide feedback on their overall customer satisfaction, and their score out of five for store appearance and cleanliness, service, petrol price, convenience, facilities and product range.

The 7-Eleven team received top marks of five stars in the ‘Appearance & Cleanliness’, ‘Service’, ‘Convenience’ and ‘Range of Other Items’ categories.

Angus McKay, 7-Eleven CEO, said the award was great recognition of the collective effort and focus from the total 7-Eleven team on working together to provide an extraordinary experience to the company’s customers.

‘I’d like to thank our customers who have

recognised us two years in a row, and Canstar for this award. In retail, you’ve got to do a lot to make sure that every single transaction is a great one, and in our business, that means getting it right for more than 240 million transactions a year. That can’t happen without the collaborative efforts of our franchisee partners, our store leaders, store teams and the support office.’

‘This award confirms customers appreciate 7-Eleven’s outstanding offer. We are investing to ensure our support office team deliver innovative store formats, and a compelling range of convenient products and services including our fantastic fresh food and $1 coffee offer. Our store-based teams do a brilliant job of delivering the offer to our customers through the high standards and great value they provide and their great service in-store,’ McKay said.

McKay also believes customer appreciation of the quality and value of the brand’s fuel offer contributed to the win.

‘We’re really pleased to offer high quality Mobil fuels, and provide great value to customers through the use of our market leading fuel app. The 7-Eleven Fuel App has

10 Business Franchise Australia and New Zealand

been downloaded more than 1.7 million times, and has generated total fuel savings of more than $11 million since launch.

Customers also love the product offers and ‘freebies’ they get through the fuel app.’

‘I’m very proud of the more than 10,000 strong team who have contributed to making this recognition possible. Thanks to every person in our network for your ongoing commitment to going that extra mile to make our customers’ experience with 7-Eleven extraordinary’ McKay concluded.

The 7-Eleven Fuel App is available now to download from the App Store or Google Play.

For more information on the 7-Eleven Fuel App visit www.7eleven.com.au/fuel-app

New franchise ratings system identifying high performers in initial ratings others, and a means for comparing franchise systems and determining eligibility for new franchisee recruitment initiatives.

FRANdata expects many of the initial ratings in progress to achieve a minimum four-star rating.

these are demonstrating superior transparency and performance across the standards being assessed.

The recently launched objective ratings system for Australian franchise brands has been adding several brands per week and many of

If Australia follows US trends the Franchise Rating Scale will quickly become an assessment mechanism for financiers and

The Franchise Rating Scale is based on a set of standards that enable a consistent evaluation of Australian franchise systems.

The foundation of these standards is the objective measurement of performance across critical areas of a franchise system, drawn from 30 years of Australian and US franchise information and experience.

The performance outcome metric is a graduated star rating scale. www.frandata.com.au

New-build Mercure hotel announced for Sydney’s Rouse Hill

Accor is pleased to announce a new partnership with Lewis Land Group to bring a new-build Mercure hotel to Sydney’s Hills district.

Currently under construction, Mercure Sydney Rouse Hill is being developed alongside The Fiddler Hotel, a major dining and entertainment venue. The Fiddler Hotel underwent a major redevelopment in 2010 and has become a popular venue for casual dining events.

Designed by Architect Mostaghim & Associates, Mercure Sydney Rouse Hill will house 78 modern guest rooms, including 67 standard, seven family and four disability rooms spread across the four-story hotel.

Expected to open in July 2019, Mercure Sydney Rouse Hill will also house a fitness centre and swimming pool, new conferencing and events spaces, while dining venues will be provided to hotel guests through The Fiddler’s existing entertainment complex.

Accor Chief Operating Officer Pacific, Simon McGrath said the development is a strategic and welcome addition to the Group and will positively contribute to the economic growth of Sydney’s North West.

‘Development in Sydney’s west is gaining momentum and the opening of a new international-quality midscale hotel will positively contribute

to the economic and tourism growth of the area through job creation and services.’

‘Accor is delighted at the opportunity to partner with Lewis Land Group and introduce the Mercure brand to Sydney’s Hills District adding quality new hotel supply. Mercure Sydney Rouse Hill will deliver authentic, locally inspired service and experiences to both business and leisure travellers,’ said Mr McGrath.

Guests of Mercure Sydney Rouse Hill be able to earn points and privileges via Accor’s award-winning loyalty program - Le Club AccorHotels. The program is free to join and can be used across more than 4,800 hotels, resorts and residences across 100 countries.

Mercure Sydney Rouse Hill is located corner of Commercial and Windsor Roads, Rouse Hill NSW 2155. The hotel is approximately 45 minutes by road from Sydney International Airport and Sydney CBD. Mercure Sydney Rouse Hill joins a global network of over 50 Mercure hotels across Australia and New Zealand and over 800 worldwide.

For more visit accorhotels.com or mercure.com

Business Franchise Australia and New Zealand 11

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

The Right Ingredients for A Brighter Future La Porchetta Satisfies an Appetite for Change

Much loved brand La Porchetta recently joined a select list of franchises that measure their success in decades and innovation, this has been one of the key drivers of its longevity and success.

The brand that was built on providing traditional Italian meals with warm service, is also a market leader when it comes to adapting to the demands of the contemporary consumer.

The La Porchetta brand began more than 30 years ago, when two young Italian migrants purchased a run-down pizzeria in North Carlton, close to Melbourne’s Italian hub. It was 1985 and La Porchetta was then a takeaway business only. The new owners, Rocky Pantaleo and Felice Nania were passionate and hard-working, and their reputation for preparing great food spread quickly. In that pre-delivery era, there were soon long lines of people waiting outside the small shopfront to pick up a La Porchetta pizza or pasta to take home.

The first change that Rocky and Felice made was to transform La Porchetta into a licenced, a-la-carte restaurant. Their great meals and excellent value were already legendary and now customers could enjoy both, in a welcoming and vibrant restaurant. La Porchetta became renowned as a special place to experience good food and a passion for life, and the seeds were sown for its future success as a much loved brand.

By the late 1980s Rocky and Felice’s vision had become clear. They wanted to develop the largest Italian-style, franchised restaurant group in Australia and New Zealand and in 1990, the first franchise opened

12 Business Franchise Australia and New Zealand

“Throughout our growth and modernisation, we’ve retained that unique offering, while still meeting the challenges of a changing marketplace.” in Melbourne’s north. It served the same delicious food and had the same, warm, family atmosphere as the Carlton restaurant.

It quickly became a local favourite.

As La Porchetta grew, consumer expectations began to change and La Porchetta needed to adapt. Increasingly time-poor customers preferred to meet with family and friends in their favourite local restaurant, rather than prepare a dinner party at home, so La Porchetta restaurants created function spaces for special events.

With the brand’s family values, a natural addition to functions was the introduction of children’s birthday parties. La Porchetta created “Mini Chef ” events at which children could not only have fun, but also learn about food preparation by making simple pizzas with basic ingredients.

Consumer tastes change with new and emerging trends and La Porchetta regularly reviews its menu to reflect these. With an increased focus on health, the brand responded with innovative menu changes that provided lighter options, while retaining the authentic Italian flavours that customers wanted.

While changes such as these may look simple, at La Porchetta, each new innovation is preceded by extensive consultation with franchisees and research and planning by the support office team. Many ideas are collaborated on with franchisees via the Franchise Advisory Committee.

“As a brand, we’re very focussed on innovation and development to stay ahead of the game,” says La Porchetta CEO Sara Pantaleo. “Our team has ears to the ground when it comes to food and restaurant trends and we’re also informed by the latest industry research. For us, innovation is a team effort, with input from everyone involved, including franchisees, customers and suppliers. We listen to what all our people are telling us and that’s what helps us retain our loyal customers and attract new ones.”

As customers and businesses moved online, La Porchetta was an early adaptor with electronic solutions, such as web and app ordering, as well as, electronic menu boards in restaurants.

“Each new development is designed to make the customer experience as easy as possible,” says Ms Pantaleo. “And that helps drive sales for franchisees.”

Today’s consumer wants the convenience of home delivery and La Porchetta was

quick to respond. In order to ensure smooth introduction of this new service, home delivery was first trialled at selected restaurants. Before being introduced across the group, all La Porchetta’s technology platforms, including online ordering and point of sale, were reviewed to ensure customers could easily order by phone and online.

make them as easy as possible. “As focussed as we are on customer demands, we ensure that innovation and modernisation are not difficult or stressful for franchisees and their staff,” said Ms Pantaleo. “We develop comprehensive training and support packages for each new innovation, and the beauty is, all these changes ultimately enhance revenue potential for franchisees.”

Franchisee, Ronnie Barrese, says La Porchetta listens to franchisees and moves with the times and that’s one of the reasons he has been with the brand for over 20 years.

“La Porchetta really supports innovation,” says Mr. Barrese. “They understand that franchisees know best what their customers want. The secret to success in a business like ours is to go where the public is taking you and that’s exactly what they do.”

La Porchetta is today a transnational franchise and a trusted brand, known for its quality, value and warm service. “We began as a family-run, family-oriented business, which was like a local Italian kitchen for many of our customers. Throughout our growth and modernisation, we’ve retained that unique offering, while still meeting the challenges of a changing marketplace. That’s why we’re now enjoying the custom of younger patrons as well,” says Ms Pantaleo. “Over the last 30 years we’ve worked hard to ensure we stay ahead of the game without compromising our core values.”

In recent years, Mr. Barrese noticed a distinct trend among his customers towards vegan dining. This was supported by research coming into La Porchetta that veganism and “flexitarianism” - where people want to eat vegetarian or vegan once or twice a week - was an emerging trend. Following an exhaustive process of researching menu options, ingredients and customer responses, a new vegan menu was rolled out across La Porchetta late last year.

For Mr. Barrese, menu innovation is just one of the ways in which La Porchetta has innovated to meet changing consumer trends.

“La Porchetta has changed a lot in recent years,” he says. “If you owned a franchise 15 years ago, you wouldn’t recognise it today, because we’ve developed so much. That’s one of the strengths of this brand.”

Each new innovation also requires La Porchetta to review its systems and processes to streamline changes for franchisees and

Opportunities are now available for aspiring restaurant franchisees who want to be part of a long-established and successful franchise system.

WHY LA PORCHETTA? • A proven profitable operation.

• A much loved and recognised national brand.

• Strong local area marketing support and advice.

• A commitment to innovation and brand development.

• Regular franchisee meetings where you can network and learn from other likeminded professionals. www.laporchetta.com.au

Business Franchise Australia and New Zealand 13

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

Regions respond enthusiastically to franchise opportunity Fostering a strong and diverse small business sector is a significant component of a sustainable local economic development strategy.

For many regional centres, slowing commercial investment has resulted in a shortfall in the range of retail and small business services and entrepreneurial opportunities.

To help address this, the Franchise Council of Australia began a campaign in 2019 to support regional revitalisation by highlighting franchises as an efficient, innovative tool to address service and small business ownership gaps.

“The Franchise Council of Australia began a campaign in 2019 to support regional revitalisation by highlighting franchises as an efficient, innovative tool to address service and small business ownership gaps.”

Mary Aldred | CEO | Franchise Council of Australia

The result was outstanding and the FCA is now organising introductions between franchise members and local government in several regions, on the path to become Australia’s foremost small business and franchise system matchmaker.

The FCA sent letters of invitation to nearly 80 regional economic development officers across Australia and is now in discussion with a number of councils interested in attracting new franchised businesses.

The regional councils have approached the FCA mindful that selective franchises which address identified service and small business gaps in their area will help create a more diverse business mix, new employment opportunities and core activity in the community.

At the same time, the FCA sent an email to members to ask if they were interested in setting up in specific regions and looking to identify potential franchisees and business operators.

Franchises offer the brand recognition, efficiency and economies of scale advantages of a chain store, while retaining the local economy and entrepreneurial benefits that are hallmarks of independent small businesses

14 Business Franchise Australia and New Zealand

which help local economies strengthen and expand their base.

The franchise business model provides an organisational system and corporate support that lowers barriers to entry. Reducing these traditional obstacles may greatly enhance opportunities for many first-time entrepreneurs who traditionally lack adequate resources, access to capital, and extensive industry experience.

As CEO, I’m leading a small but focused FCA delegation in July meeting with regional economic development officers, councillors, local chambers of commerce and key regional landlords between the West Australian coast and northern New South Wales to discuss and introduce franchises which could breathe life back into their economies and communities

“The benefit of introducing franchised businesses is not just economic, but also has positive social and community impact. Often you will find franchisees passing on the knowledge they have gained through their training and support to other local businesses. Healthy businesses create healthy communities.”

through matching local businesspeople with some of the nation’s most successful franchise systems.

In doing so, we clearly acknowledge the model for the program developed with Greater Hamilton Council in south-western Victoria.

The Greater Hamilton region promoted its business opportunities to franchisors and franchisees at the FCA’s National Convention in Melbourne in October 2018 and produced a detailed information kit to assist franchise systems evaluate the opportunities in the region.

The Greater Hamilton regional presence at NFC2018 was a fantastic introduction to the industry and a surprise to many attendees, with Hamilton receiving positive feedback for their proactive approach to generating business growth for the region.

The central geographical location for a franchise territory, projected population growth of the region and the stable regional spend that is demonstrating an upward trend, were significant considerations for franchisors.

“Franchises offer the brand recognition, efficiency and economies of scale advantages of a chain store, while retaining the local economy and entrepreneurial benefits that are hallmarks of independent small businesses which help local economies strengthen and expand their base.”

Since then, the council team and a few franchise systems have been in discussions aligning potential franchisees with franchisors. Other franchisors are redesigning their geographical territories or examining their business models to adjust to a smaller catchment.

Franchisors noted that when you see a local council investing in infrastructure for its CBD, then this is a sure sign of growth throughout the region.

Through my own regional background, I know how much franchised businesses contribute to rural and regional Australia, and the FCA has been delighted to assist Greater Hamilton as well as discuss the opportunity with several more councils across Australia.

The benefit of introducing franchised businesses is not just economic, but also has positive social and community impact.

Often you will find franchisees passing on the knowledge they have gained through their training and support to other local businesses. Healthy businesses create healthy communities.

By helping to meet the needs and maximise the opportunities for interested franchisors and franchisees, as well as providing a crucial

link between local government and business, the FCA can further enhance the success of the local economy, maintain population growth and diversify the service offering for the community.

and local regions in utilising this program to participate in the nationwide strategy to leverage the benefits of franchising to rebuild and strengthen Australia’s local economies and communities.

We would be pleased to discuss further how the FCA can assist both our members

www.franchise.org.au

Business Franchise Australia and New Zealand 15

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How to become a leader others are inspired to follow “No longer are employees grateful just to have a job, they now want fulfilment and they want to know that someone has a vested interest in their success.”

always appear busy. They don’t pay too much attention to individuals unless it’s regarding performance and are action-oriented. They often speak more than they listen and may struggle with high attrition and unplanned absences.

Over 50 per cent of employees, when applying for a job, will look for the ‘quality of manager’, according to a Gallup study.

Staff want a leader who is inspiring, cares about people and is interested in growth and development.

No longer are employees grateful just to have a job, they now want fulfilment and they want to know that someone has a vested interest in their success.

For leaders to inspire others to follow them, they need to be intentional in their actions and aware of what’s going on around them, rather than simply doing what comes naturally to them. You see most leaders have a natural preference for either, people and building relationships or delivering outcomes.

People and building relationships. They prioritise people over task and tend to focus on building relationships with their team. They always have time for a conversation, never miss a one-on-one meeting and protect their team from the pressure to deliver. But this can also have negative effects. They often avoid having performance conversations and tolerate behaviours that affect outcomes over time.

Delivering outcomes. They prioritise task over people and tend to focus on getting things done. They move with purpose and

16 Business Franchise Australia and New Zealand

To become a leader that others are inspired to follow, you must be good at both nurturing relationships and driving performance. One must not come at the expense of the other.

For new leaders in particular, the concept of finding a balance between people and task can become overwhelming. The three core components to build awareness around and become intentional about are: investing in relationships; inspiring respect; and, influencing results.

Invest in relationships The first priority for a leader, to inspire others to follow, is to develop, deepen and nurture relationships with their staff. Be authentic and take a genuine interest in who they are as people, not just employees. Treat them like friends and be prepared to talk about life topics, not just work topics and nurture the relationship through building trust. The Gallup study also found an alignment to loyalty where employees who “feel that they

can talk with their manager about non-workrelated issues plan to be with their current organisation one year from now.”

Inspire respect The second priority for a leader is to earn the respect of their staff. This involves seeing other perspectives and acknowledging that there are no ‘right’ or ‘wrong’ ways of doing things, just different. When leaders can swap judgement for curiosity and take on different views and opinions, they let go of their tight grip on reality and become open to possibility.

A leader who listens more than they speak will gain the respect of their staff over an opinionated leader who appears to have all the answers. Respect is also about being adaptable in how they communicate. A leader that others are inspired to follow will determine the most optimal approach to a situation with consideration of the context, the audience and the environment they’re in at any given time.

Influence results The third priority, after a leader has built solid relationships and gained the respect of their staff, is to empower them to perform at their best. Staff need clear objectives, realistic timeframes and a commitment to deliver on

“To become a leader that others are inspired to follow, you must be good at both nurturing relationships and driving performance. One must not come at the expense of the other.”

Shelley Flett | Author ‘The Dynamic Leader: Become the leader others are inspired to follow’

their promise. Leaders who are clear with staff around goals and expectations are much more likely to keep them engaged.

Just as important as empowering staff, a leader must hold them accountable for their commitments and allow them to reflect on the role they played in any missed opportunities.

They also need to create the right environment, support and encouragement for their staff to learn and grow.

When staff know and respect their leader they will assume greater responsibility for their individual performance along with the performance of their team. They will do what it takes to ensure ongoing and sustainable results.

The focus cannot be on just one area, a

leader must be balanced in their approach and intentional about what they do. Finally, becoming the leader that others are inspired to follow isn’t about doing more, it’s about doing different! So DO DIFFERENT! Shelley Flett is an expert in leadership development and team performance, with over a decade of experience in operations and call centres across banking and telecommunications. She is focused on maximising efficiency and building high performance team cultures. Shelley is the Author of ‘The Dynamic Leader: Become the leader others are inspired to follow’.

For more information about how Shelley can help your leaders visit www.shelleyflett.com

Business Franchise Australia and New Zealand 17

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Top tips and expert advice for professionals looking to own a franchise business

If you’re interested in working for yourself but aren’t quite sure where to start, owning a franchise business can be a viable alternative to starting your own business while benefiting from the experience of a big business network.

But just like any unchartered territory, it is important to consider your options, take the time to research the right industry for you and, of course, seek advice from an experienced source.

Australian Skin Clinics Franchisee Zoe Baker did just that and is now running two successful clinics in Sydney’s Northern Suburbs, Warringah Mall and Chatswood.

We spoke with Zoe to get her insights into how to be successful in your own franchising venture.

Where to start?

Search engines are a great, basic starting point, but there are also franchising events, great franchising magazines, word of mouth referrals and of course websites like Business Franchise Australia and New Zealand.

“The support the franchisor offers their franchisees is invaluable. You will be surrounded by a knowledgeable network, making a huge difference to your own business development.”

18 Business Franchise Australia and New Zealand

Be sure to get your accountant involved straight away to determine whether you’re making a financially feasible decision and obtaining the services of a solicitor that specialises in franchise law is a must when considering getting involved in a franchise – cover all your bases.

What will be the best industry for me?

It’s imperative you choose an industry you are passionate about or think you will enjoy working in so that you stay motivated, as

most of that is already done for you.

The support the franchisor offers their franchisees is invaluable. You will be surrounded by a knowledgeable network, making a huge difference to your own business development.

“If you are able to look around and say to yourself that you love the team you have created and the business you have built, and if it has helped you achieve the things you set out to do... then you have done the right thing.”

How do I build the right team?

Creating the right team to help you reach all your business goals is extremely important.

The biggest thing to look for in staff is their attitude and cultural fit to the team you’re looking to build.

You want to drive an amazing customer experience and not compromise on that, as it’s what remains at the core of most franchises and your business goals.

Your staff members need to complement the rest of the team as well as your brand and mission, they should be passionate about the business, industry and services offered to help you reach your goals. Just look either side at your fellow franchisees and you can pinpoint performance down to staff and customer experience.

Again, the support network from the franchisor will help you through this process with guidance on employment, team structure and employee training.

Is there any growth in franchising beyond your own franchise?

The Franchise Council of Australia (FCA) is the nation’s peak body for franchising.

Becoming a member of your franchise’s council should be at the top of your list of goals, as that’s how you will be able to work closely with the FCA and provide input and insight into the world of franchising, helping mould it into what you think it should be.

“You want to drive an amazing customer experience and not compromise on that, as it’s what remains at the core of most franchises and your business goals.”

Ask the questions, make enquiries and make it a priority to become a member, if you really want to get the best out of franchising entirely.

Zoe Baker | Franchisee and Partner Australian Skin Clinics Warringah Mall and Chatswood

owning a franchise, just like any business, can be all consuming at times but the rewards are worth it.

If you are able to look around and say to yourself that you love the team you have created and the business you have built, and if it has helped you achieve the things you set out to do i.e. have more time to spend with family and pick up the kids from school, then you have done the right thing.

As an example, according to the Australian Bureau of Statistics, the medi-aesthetic, hair and beauty sector represents a $3.8 billion industry and is only growing thanks to the

world of online bloggers and eager consumers, making it a great industry to get involved with.

What do I need to know about franchising?

The best thing about getting involved with the right franchise is the support you will receive. There is a lot of work to be undertaken when starting your own brand or business i.e. researching competitors, choosing a business structure, registering a business name, choosing an accounting system etc, but the great thing about owning a franchise is that

Australian Skin Clinics has more than 45 clinics across Australia, offering a variety of treatments from laser hair removal and skin treatments to their newest treatments CryoDefine Fat Freezing, Micro-Needling and LED Light Therapy.

Zoe Baker is a franchisee and partner of two successful Australian Skin Clinics, Warringah Mall and Chatswood. Zoe is also a member of Australian Skin Clinics’ Franchisee Council who meet quarterly to discuss improving processes as well as new training for staff and owners. www.australianskinclinics.com.au/ franchise

Business Franchise Australia and New Zealand 19

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How to write press releases

and email pitches for local reporters press releases is about. This is vital because if this isn’t done, the reporter will stop reading.

Preferably the headline would fit across one line and the first sentence would be no longer than 25 words.

Press releases are different from other documents because they use what’s called an inverted pyramid. That means the most interesting news comes first, followed by the background.

Paragraphs need to be short and punchy, while the entire release should be limited to one page if possible. They are also written in third person, but need at least two interesting direct quotes from someone. These will appear between speech marks.

“Press releases are different from other documents because they use what’s called an inverted pyramid.

That means the most interesting news comes first, followed by the background.”

Pete Burdon | Founder & Head Trainer | Franchise Media Training

A press release is a written document that you send to media with the aim of enticing them to produce their own story about the contents.

They are written in the same format as the stories you see in newspapers.

Do you need them?

Press releases can help your chances of getting attention from the local reporter. If written well, the reporter can almost just cut and paste them into the newspaper. This sometimes happens, but usually they will create their own story and possibly contact you for more information.

Having said that, often a quick email pitch is

The final thing is the importance of contact information. This should appear at the bottom of the release and include both an email address, website address and phone number. The best number to give is a cell phone because you want to be available to the reporter. If you won’t be available, don’t put the release out until you are.

Other important points Unless the reporter asks otherwise, paste the contents of your press release into the body of your email under your pitch. Media outlets don’t like opening attachment for fear of viruses.

all you need. My advice is to write the press release if you have the time, or it’s a major issue you really want covered by local media.

But otherwise stick to an email pitch. The last thing you want to do is avoid contacting the reporter at all.

Press releases are simple to write, but along with my instructions here, you are best to search online for some actual examples.

Government websites usually publish good ones, but there’s a huge range in quality across the web.

If you do send an email pitch only, keep it brief. Sum up the idea in a few sentences and tell the reporter why you think it would benefit locals to see the story. Also make sure there is a news hook in the subject line to make sure the reporter opens it. We discussed news hooks in the issue before last.

Franchisees have major opportunities to generate publicity in local media, as discussed in earlier columns. It grows profiles, reputations and bottom lines without costing a cent. But only those who take action reap all these benefits.

Press release formatting You’ll find with a brief Internet search that press releases vary slightly in their format, but there are some essential things that are common to all effective ones.

Firstly, the headline and first paragraph have to include a news hook and sum up what the

20 Business Franchise Australia and New Zealand

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.” www.franchisemediatraining.com

AN INNOVATIVE NEW INVESTMENT OPPORTUNITY TO FRANCHISE WITH REGUS

Business Franchise Australia and New Zealand 21

PR O FI L E : tutor doctor

Changing the trajectory of student’s lives first Tutor Doctor territory in Penrith in June 2018, started her first week of business with four sales and has added two education consultants to her team to handle the demand.

The supplemental education segment is one of the fastest growing industries in the world of franchising. Schools around the world are struggling to prepare students for increasingly competitive college admissions and a decreasingly labour-oriented workforce.

Parents and students are seeking alternative solutions to meet their education needs. Thus, tutoring services are stepping in to fill the gap, and Australia is not the exception. Tutor Doctor is a leader in providing one-to-one supplementary education to students and adults through in-home tutoring around the world, backed by a network of over 640 franchises in 15 countries.

Franchisee Alison Hope, who opened her

While some of her instant success can be related to the population growth and demand for tutoring services, Hope also points to her passion for education. “Tutor Doctor caught my attention immediately because I am so passionate about education,” said Hope. “This concept provided an opportunity to contribute to the education of children and adults in my local community. Tutor Doctor offers such a unique way of matching the right tutor with each student, that it stood out amongst the other franchise options in the education industry.”

Hope’s first location opened in Penrith, a fast-growing area in Western Sydney. The market is filled with families that were on the hunt for better tutoring options for their students and found a fast fit with Hope’s Tutor Doctor. “Families love the idea of one-to-one support for their child,” said Hope. “With Tutor Doctor, the tutor comes to their house, so it doesn’t disrupt the whole day for the family. Every parent just wants the best start in life for their child, and Tutor Doctor is able to provide the type of support that helps every child reach his or her full potential as a person, not just academically.”

In her first month of business, Hope has travelled to different homes throughout her community and helped students with all different needs, from a child who was struggling and starting to lose confidence, to a student who didn’t see the point in school and had lost all motivation. She would evaluate students in the initial consultation to identify their needs and then match that student with a qualified tutor – one that can best help that student in the situation they are facing.

22 Business Franchise Australia and New Zealand

“I have been blown away by the quality of amazing tutors who have joined my team at Tutor Doctor Penrith,” said Hope. “Our tutors need more than just knowledge. They need to be able to pass on that knowledge to a student in a simplified way. It’s crucial that they think outside the box and continue to get students excited to learn.”

As Hope continues to spearhead growth in the Sydney market, the Tutor Doctor team is looking to mimic her success with additional territories to fill a gap in the market. There are 16 territories already established in the Australian market and Tutor Doctor has a capacity to grow in markets such as Sydney, Melbourne, Perth, Brisbane and Adelaide.

“Tutor Doctor provides a service that is badly needed in Australia, as in other parts of the world. Teachers have large class sizes to look after, and children sometimes do not get the individual attention they need. Tutor Doctor makes a difference for every child through our individualised, in-home one-to-one tutoring,” said Dennis Campbell, Vice President of Global Franchise Development at Tutor Doctor. “Plus, the lack of overhead and setup costs makes it a win-win for our franchisees.”

For more information please visit www.tutordoctoropportunity.com

Business Franchise Australia and New Zealand 23

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Top ten tips for

tax time

There’s so much to think about as a franchisee, especially when the end of financial year and tax time roll around.

We know the tax system is complex and it can be difficult to understand all your obligations.

So here are my top ten tips to make it easier for you to get your tax right and avoid common mistakes that small businesses make.

1

Gather your records

To prepare for lodging your tax return, you need to gather and sort your records from the financial year, including cash, EFTPOS and online transactions covering: • Sales and other business income.

• Expenses you can claim as a deduction such as staff wages, contractor expenses, and operating expenses.

This will allow you or your registered tax agent to work out how much income you need to report and which deductions you can claim.

You’ll need to keep these records for at least five years once you’ve lodged your return.

2

Check for other types of income

When lodging your tax return, you need to report all income you make through your business. As well as sales you made in person or online, check if you have any of the following types of income to report: • Cash sales • Bank account interest • Rental income from property that your business owns • Assessable government payments (such as fuel tax credits).

3

Take advantage of what you’re entitled to

You can claim a deduction for most of your business expenses, if you follow these three golden rules: 1. The expense must have been for your business – not for private use.

2. If the expense is for a mix of business and private use, you can only claim the portion that is used for your business.

3. You must have records to prove the expense and show how you worked out the business portion of an expense.

24 Business Franchise Australia and New Zealand

If you buy a business asset that costs under a certain threshold, you can claim a deduction for it in full in the financial year using the instant asset write-off – check ato.gov.au/ instantassetwriteoff to find out more.

There are other concessions you can take advantage of as a small business, such as the income tax offset (for sole traders and individuals in a partnership) or the lower company tax rate (for companies). See the full range at ato.gov.au/concessionsataglance

4

Enhance your record keeping

Good record keeping sets your business up well, makes it run smoother and can help you to identify issues before they become problems. It will also make it easier to get ready for tax time next year – and every year.

Tax time is a great time to review your record keeping practices and look for ways to improve it. For example, you could consider keeping your records electronically, which saves you time and money in the long run.

If you’re a sole trader, you can use the myDeductions tool in the ATO app to record your income and expenses throughout the year. At tax time you can send a copy to your registered tax agent or upload your data into your tax return.

“Going online is the quickest and easiest way to manage your tax and super. Use the Business Portal to prepare and lodge activity statements and annual reports, manage your accounts and update your registration details.”

Justine Williams | Assistant Commissioner of Small Business Australian Taxation Office

6

Check your competition

Reviewing your records for tax time also provides a good opportunity to use our small business benchmarks to compare the performance of your business with your competitors. They’re available for more than 100 industries at ato.gov.au/ BusinessBenchmarks Speak with your registered tax agent or use our record keeping evaluation tool to see if you’re still on the right track – visit ato.gov.au/ recordkeepingevaluation

5

Keep an eye on your cash flow

Once you’ve got your records in good shape, you’ll also be in a better position to assess your cash flow. Your inward and outward cash flow is what keeps your business going. You need to make sure your business is likely to make money and will have enough cash available at the right time to pay your bills and meet your tax and super obligations.

Prepare a cash flow projection and refer to it regularly. There’s information on our website about how to do this, or ask your registered tax agent to help you set one up.

“If you’re a sole trader, you can use ATO Online services and the myDeductions tool in the ATO app to make managing your tax and super even easier.”

If you use a registered tax agent, chat with them about where your business sits in comparison with the benchmarks. Ask them about steps you can take to improve your performance.

7

Go online

Going online is the quickest and easiest way to manage your tax and super. Use the Business Portal to prepare and lodge activity statements and annual reports, manage your accounts and update your registration details.

If you’re a sole trader, you can use ATO Online services and the myDeductions tool in the ATO app to make managing your tax and super even easier.

8

Make the most of your visit to your tax agent

Most small businesses lodge their tax return through a registered tax agent. When you have

your yearly appointment with your agent, why not take the opportunity to speak with them about more than your tax return? They could help you to identify areas of improvement or check that your record keeping processes meet requirements.

Don’t forget that you’re responsible for what’s reported in your tax return. Your agent can only report what you tell them, so my next tip is crucial too…

9

Ask for help and stay informed

If you’re not sure about something, just ask us or your registered tax agent. If you’re feeling overwhelmed or getting behind with your obligations let us know as early as possible so we can work with you to find a solution.

You can also use our range of free resources to educate yourself and stay up-to-date. Start by subscribing to our Small business newsroom at ato.gov.au/sbnews and following us on social media.

10

Look after your mental health

Finally, running a small business can be stressful. Long hours, cash flow pressures, endless paperwork, and the blurring boundaries between work and family life can take a toll on mental health. The ATO offers a range of services aimed at helping businesses stay on track. For more information about how the ATO can help visit ato.gov.au/ smallbizmentalhealth The ATO is here to help you this tax time and throughout the year. Visit ato.gov.au/ sbsupport to find out about our support services and tools, and how to contact us if you have any questions.

Justine Williams is an Assistant Commissioner of Small Business at the ATO. Her role involves working across the ATO to make it easier for small businesses to understand and meet their tax and super obligations. She is focussed on ensuring that expanded and improved digital services make it easier for viable small businesses to thrive.

Business Franchise Australia and New Zealand 25

PR O FI L E : the lott

Franchising with the Lott!

a customer-focused business Are you a customerfocused operation looking to grow your business with a franchisor who believes in putting the customer’s experience first? 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, which give customers the chance to dream big every day.

Investing in a franchise with the Lott gives you the potential to increase revenue, provide opportunities for staff development and join a strong customer-focused 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.

Mannum Green IGA Fresh supermarket in South Australia is one of the small businesses that introduced a franchise from the Lott.

The owner Samantha Luck said by adding a franchise with the Lott to her convenience store, she began to see an increase in customers repeatedly visiting her store.

“Lotteries has undoubtedly increased the repeat customers returning to our store each week,” she said.

“It has added another opportunity for us to interact with our customers.

“The addition of the new kiosk has added a chance to show our wow factor when customers enter the store.”

This sentiment is something that other franchisees with the Lott echo, such as Kellie from Supanews Erina Corner in New South Wales.

“Lotteries brings new customers into our store and our staff love to interact with them,” she explained.

“They love to tell them all about the new and exciting products that lotteries offer.

“The new lotteries retail image was just what we needed to revamp and improve the quality of our customer experience.”

In 2019, the Lott announced its plans to launch a new retailer remuneration model,

which focuses on seamless shopping experiences for customers as well as performance based remuneration, which gives each franchisee the potential to earn bonus commission if they achieve required results.

The Lott’s new program is subject to regulatory approval and a small price increase in some lottery games.

It is unable to be introduced to South Australian retailers at this stage. The Lott is currently working with regulators and government to define the approach so that South Australian retailers may be included in the future.

These changes come as the Lott is introducing a range of exciting new initiatives, including free membership and faster access by winners to their prizes.

For any small business owners thinking of becoming a franchisee with the Lott, these customer and retailer focused changes will mean you have the opportunity to join Australia’s largest retail franchise network and an industry-leading franchise business.

For more information on franchising with the Lott and the Retailer Remuneration Program please contact franchiseenquires@thelott.com or www.thelott.com/franchise

26 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 27 CRTV-14554-Retail Sales Leads Pack - Bus Franchise Ad.indd 1

17/12/18 8:59 am

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Run ‘your’ business,

not your predecessor’s

It is often said that humans are social animals – we want to be part of something bigger than ourselves. Our connection to community and the adage ‘it takes a village to raise a child’ is a well-known reflection of this.

For people starting out in business it’s much the same. While there are many inspiring stories of people building new businesses from the ground up, many people prefer to take on

a tried-and-true, established business.

This is where franchising comes in. Taking over a franchise is one of the easiest ways to get started in business. All the systems are in place, trained staff are already available, and by and large the marketing is left to the franchisor, so you don’t have to worry about expensive advertisements in prime-time TV slots.

However, those who take over a franchise without giving every aspect of the business a critical examination could easily end up taking over little more than a persistent headache. Despite this, by keeping a few key points in mind, you can get your new business running on the right foot.

28 Business Franchise Australia and New Zealand

The sins of your predecessor shouldn’t become yours Regrettably, it seems that some franchisees go into business understanding plenty about supply and demand, inventory management, and account keeping, and next to nothing about the laws of employment.

These franchisees seemingly expect to simply be able to pick up whatever the old franchisee did, and blithely carry on along the same path. Those who take this approach ought to be wary, as down that path lies the very real prospect of a financial disaster.

The adage that ‘ignorance of the law is no defence’ holds as true today as it did when first

“When businesses change hands, and staff move from one employer to the other, one of the main questions that a new franchisee needs to ask is - what is going to happen to employee entitlements?”

Alexander Millman | Senior Workplace Advisor and Associate National Retail Association

“Those who take over a franchise without giving every aspect of the business a critical examination could easily end up taking over little more than a persistent headache.”

when you are considering buying their business.

can come to bite the unsuspecting hirer through unfair dismissal proceedings.

When businesses change hands, and staff move from one employer to the other, one of the main questions that a new franchisee needs to ask is - what is going to happen to employee entitlements? uttered; copying someone else’s ignorance is similarly no defence.

Before taking on a new business, you must always make sure for yourself that you know what industrial instrument – be it a modern award or enterprise agreement – will apply to your employees. The best way to do this is to seek professional advice from a specialist in employment law.

Communicate about shifting obligations Ensuring that you meet your obligations under relevant legislation (specifically, for our purposes, the Fair Work Act 2009) starts with clear communication with the old franchisor

That first question is a question of debt, in that employee leave entitlements are a liability owed to the employee by the business. New franchisees should be clear about whether they will be taking on these liabilities or if the old franchisee will pay them out before the transfer; this will affect both the value of the business at the time of sale and the leave liability owed to those employees by the new franchisee.

In a similar vein, new franchisees should always seek legal advice before employing any staff from the old franchisee, as there are number of technical legal rules around the concepts of ‘service’ and ‘continuity of service’ that, if not properly understood and managed,

Love thy neighbour, but check his maths When taking over a new franchise you will doubtless, having read this article, make sure that you aren’t repeating any mistakes made by your predecessor.

Similarly, it is important to make sure that you are operating in accordance with the law, regardless of what your colleagues or neighbours in your shopping precinct tell you.

Just because another business is doing things differently doesn’t mean that they are right – it can simply mean that they are wrong and have yet to be caught!

A recent example of this occurred in Easter this year when the National Retail Association’s employment law hotline was flooded with calls asking which days were public holidays, often accompanied by the assertion that ‘another shop in the centre

Business Franchise Australia and New Zealand 29

e x pert a dv i c e

isn’t paying public holiday rates because they say it’s not a public holiday’. These business owners – a lot of them franchisees – did the right thing by checking; if they had copied their neighbour, in most cases they would have been wrong.

The ‘follow the herd’ mentality has previously been seen in franchise networks. One of the key findings from the Fair Work Ombudsman’s 7-Eleven investigation was that franchisees were copying each other’s methods of breaching their obligations under industrial laws, usually justified by one reason or another but nevertheless being incorrect. The fact that these businesses copied others breaching the law in no way protected them from liability.

Learn what affects you There is nothing worse than coming into a business, everything is going smoothly, and then suddenly someone tells you of some obscure law which means you’ve actually mucked things up already.

While many industrial laws are set in stone, and changes are often advertised well in advance, you need to be careful that you truly understand what affects you. Don’t just read the headline – read the article too.

“Taking on a franchise business is a bold statement to the world at large that you are competent, and confident, enough to be both your own boss and the boss of your employees.”

This is particularly true if you are going into a retail business; by July 2019, the modern award for the retail industry will have seen five changes to rates of pay in two years, with at least four more to follow by March 2021.

Laws around trading hours and public holidays also change from year to year – often thanks to the exercise of ministerial power through government “Gazette Notices” – so you must never presume that what you did last year will be correct this year. You need to know to look out for these changes, as more interesting headlines often sweep them to the bottom of the news reel.

‘Own’ your business Taking on a franchise business is a bold statement to the world at large that you are competent, and confident, enough to be both your own boss and the boss of your employees.

Embrace this and do things properly from the start. Get your own independent legal advice, and don’t be afraid to shake things up if and when it’s needed.

30 Business Franchise Australia and New Zealand

As the National Retail Association’s Senior Workplace Advisor and Associate, Alexander Millman provides advice and representation to a collective network of more than 28,000 retail, fast food and quick service outlets nationwide.

While specialising in the complexities of employment law, Mr Millman also advises and represents members across general commercial litigation in various State courts.

The National Retail Association is Australia’s largest and most diverse industry association. As a not-for-profit organisation its members range from small, family-owned and operated businesses to leading national brands and span nearly every retail category including fashion, groceries, department stores, household goods, hardware, fast food, cafes and services. The NRA is the only retail industry association to deliver practical legal advice through its wholly owned and incorporated legal practice, NRA Legal. www.nra.net.au

WANT TO BE YOUR OWN BOSS? Join the leading battery retailer in Australia and become part of a franchise network that has over 20 years of stable growth behind it. With 110 stores nationwide and with more set to open in 2019, it has never been a better time to start your own business backed by a nationally established franchise network.

To ďŹ nd out more on becoming a Batteryologist and your own boss contact us today!

batteryworld.com.au 1300 793 209

BECOME A BATTERYOLOGIST Business Franchise Australia and New Zealand 31

e x pert a dv i c e

The crucial steps to ensure the people you hire are able to deliver How often have you or other members of your leadership team hired people into your organisation who have then failed to perform to an acceptable standard.

Reflect for a moment on the detrimental impacts on your time, energy, resources and team of people failing to deliver on the promises they make through the hiring process to their job well.

Adopting a planned, considered and disciplined approach is fundamental to your ability to accurately predict the likelihood of someone being successful in their role

“Adopting a planned, considered and disciplined approach is fundamental to your ability to accurately predict the likelihood of someone being successful in their role and your organisation.”

Karen Gately | Author and Founder | Corporate Dojo

and your organisation. Leveraging a variety of assessment techniques to validate your observations and build a full picture of the candidate’s potential throughout the process is key to predicting success.

As widely referenced research by US Professors Frank Schmidt and John Hunter reveals

“While it can be tempting to hire the person with the most experience or impressive technical qualifications, your choice should never be at the expense of recruiting people who are likely to behave in the ways you need them to.”

32 Business Franchise Australia and New Zealand

unstructured interviews have a predictive validity of just 38 per cent. The strongest predictors of performance they report are structured interviews and testing.

The study analysed 85 years of research to identify the most effective methods for hiring people who will excel in their roles, as well as the least effective. It’s important to note that while structured interviews and testing ranked highly, the validity ratings of each were 54 per cent and 51 per cent respectively. Suggesting a blend of strategies is necessary in order to achieve the level of predictive validity needed to enable effective decision making.

It’s essential that you leverage each step in your recruitment process to assess both what people are capable of and how they are likely to go about achieving what they need to. Assess also the depth of each candidate’s desire to do the job and alignment of the opportunity you have on offer with their career aspirations.

Assess capability Look for evidence that candidates have the ability to apply their knowledge, skills and experience within the context of the role you are hiring for. Avoid the common error of presuming because someone has attained a level of qualification or seniority

that they are capable of effectively leveraging their experience to perform well for your organisation.

Explore the extent to which candidates understand the core objectives, responsibilities and complexities of the role. Test also their willingness to confront the challenges in the role and have the resilience to drive change if required. Contemplate the extent to which the candidate will be able to respond to irregularities, breakdowns and other unanticipated events.

“While recruitment is not an exact science and can better be described as an art, there are steps you can take to ensure you hire the right people.”

Assess culture fit Cultural fit is the extent to which a person’s approach to doing their job and being a member of your team is aligned with the values of your business. While it can be tempting to hire the person with the most experience or impressive technical qualifications, your choice should never be at the expense of recruiting people who are likely to behave in the ways you need them to.

Time and again I observe leaders make the fatal mistake of prioritising the skills and qualifications of a candidate whilst ignoring the clear signals of culture misfit; I am yet to see these decisions turn out well. Without exception they have struggled to leverage the person’s full potential and, more often than not, have found themselves managing the undesirable consequences of unsuccessful behaviours.

The simple reality is the extent to which someone is aligned with the culture of your organisation profoundly impacts whether or not they will ultimately be a successful member of the team; it needs to be an important priority in any recruitment process.

While recruitment is not an exact science and can better be described as an art, there are steps you can take to ensure you hire the right people. It is crucial that you consider the candidate’s fit with your business and team throughout the process. Examples of the ways in which you can do this include these: 1. Read between the lines and listen for attitude; whether reading a candidate’s CV, conducting an interview or completing a reference check.

2. Assess priorities, philosophies, beliefs, attitudes, prejudices and motivations.

Consider how these reflect on the likely approach they will take to their work and dealing with others. How will this fit with the way you want things to be done in your business?

3. Observe interactions before, during and after interviews and other face to face

interactions. Notice shifts in behaviour or expressions of attitude towards individuals and groups. For example, how does the candidate respond to and interact with people they perceive to be senior, peer or junior to them?

4. Assessment tools – use them well. There are many insightful tests now available that can assist you to accurately assess candidates. It is important to remember that these tools are indicative not predictive and should be used for guidance as opposed to a standalone decision-

making tool. For example, use information gleaned in reports to design interview questions and to guide conversations with referees.

Karen Gately is a leadership and people management specialist, author and founder of Corporate Dojo. Karen works with leaders and HR teams to drive business results through the talent and energy of people.

For more information visit www.corporatedojo.com

snaps h ot: spraypave australia

High profits from an unusual industry Ask most people about repairing or resurfacing concrete and many will have little or no idea what you are talking about. Many people also don’t realise they have a problem with their concrete until it becomes obvious.

What problems can you have with concrete?

It’s very hard and lasts forever, right?

Unfortunately, there are a range of problems that can occur, and they can be very serious.

Concrete can become slippery, cracks can form, concrete can break up, it can look unappealing, create trip hazards, cancer, weathering, efflorescence and more. On top of this there are a list of choices for resurfacing concrete, spray paving, epoxy, polishing, colouring, sealing, three dimensional images, staining, imitation slate, sandstone or timber.

There is a whole industry built around concrete repairs and resurfacing. What if you want part of the action and profits, how do you go about it? You might try to teach yourself over many years with lots of expensive mistakes and unhappy customers or you could fast track yourself with a Spray Pave business license.

Chris Bylhouwer has been in the industry

34 Business Franchisor

since 1991 and had sold several franchises between 1998 to 2006, before moving to a licensee system. Chris says, “In the early days it was mostly only spray paving, then over the years we just kept adding more trades to service what customers wanted and made even more profits.” Mr Bylhouwer explained that training was only a small part of building a successful business. Having an established name to trade under, customer contracts, finance for customers, seven year written guarantee on jobs, Australian call centres, three business guarantees, plus a team of on-site professionals as your support systems, all combine to a fantastic turnkey, low risk business opportunity.

An average driveway can be completed by one person over two to three days, with profits of $2,000 to $3,000. A larger shopping centre may take three people, seven to 10 days with profits into the thousands. The secret to having a larger business, is having more staff completing more trades. Completing quality jobs, ensures more customer recommendations and leads to less advertising spend.

Operating under a business license means it is a fully independent business. That means having full control over how you run your business and earning and keeping all your own profits. Mr Bylhouwer explained how the business license system works, “As a one person business, people can earn up to $3,500 per week or more with staff. We have taught many people without experience and our

“Concrete is the most commonly used material on earth with no sign of replacement which means the industry is always growing and will be around for years ahead.” systems allow for that. Because we are a license not a franchise, people have full control over their business, without any extra greedy fees or other restrictions. We offer six days training, three days at our Adelaide training centre followed by three days follow-up training on the licensees own job site anywhere in Australia”. Asked about the payment plan, Mr Bylhouwer explained “The business is $37,500 plus any equipment. We also offer an easy payment plan from only $5,000 deposit, then monthly payments of under $340 per month, which is less than one day of work. We don’t palm you off to a bank, we take the risk with you just like a partnership”.

This truly is an unusual industry. Just like mowing is a must-do for lawns, repairs and resurfacing is a must-do for concrete. Concrete is the most commonly used material on earth with no sign of replacement which means the industry is always growing and will be around for years ahead.

For more information please contact Chris Bylhouwer on 0412 842 671 www.spraypave.com.au

Darryl Morris

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Business Franchise Australia and New Zealand 35

fo c us feature : national franchise insurance brokers

Ensure your insurance

Just as franchises vary in the services they provide, so too do their insurance requirements.

Industry expert Darryl Morris understands this is a tricky area that can cause a lot of anxiety and is often time consuming. He explains how his business, National Franchise Insurance Brokers (NFIB), formed in 2011, has created a simple, online risk management solution to ensure the franchisor’s brand is protected and franchisees have an appropriate level of insurance.

What was the driving force behind starting the company?

NFIB first trialled its services in 2010.

This trial period involved discussion with

“Are you covered for loss from employee theft? What about customer injury?

Do you even need that? The Franchise Council of Australia recommends cover for fire and peril, business interruption, burglary and theft, public and product liability, and workers’ compensation as core areas.”

franchisors, franchisees and insurers where we attempted to understand what was missing in the insurance space for the franchising industry. We looked at what was needed to meet the changing compliance needs of a franchisor and what would enable them to have a better overview of their insurance program for franchisees. At the end of that year of extensive research, it was clear that there was a real need to develop a specialised insurance solution that would address the needs of all the stakeholders and so NFIB was formed.

36 Business Franchise Australia and New Zealand

What was needed?

Franchising, from an insurance perspective, is a simple model. However, there are significant costs to an insurance broker in managing multiple franchisees, often with different insurance expiry dates. Franchisors want to maintain the integrity of their brand, franchisees want business security, and brokers work with insurers to meet those needs. With an electronic distribution platform sitting between the franchisor, franchisee, broker and insurer, all the parties can be served in a costeffective manner, often at a time that best suits

“Knowing you have the right cover and that any unusual circumstances have been thought of brings peace of mind.”

“National Franchise Insurance Brokers (NFIB), has created a simple, online risk management solution to ensure the franchisor’s brand is protected and franchisees have an appropriate level of insurance.”

Add to that your franchisor’s specifications that may be carefully considered or potentially quite vague. Under-insuring to save money sounds attractive until you run into trouble.

This can also happen when you expand your business but forget to update your policy. Are you covered for loss from employee theft?

What about customer injury? Do you even need that? The Franchise Council of Australia recommends cover for fire and peril, business interruption, burglary and theft, public and product liability, and workers’ compensation as core areas. But there are many more additional areas that apply to specific situations, such as professional indemnity if you are offering advice. It is a complex, and very important, area to get right!

Help is at hand everyone. And by having all the information in the one place, they are all on the same page, reducing miscommunication and saving time.

NFIB is unique in this space and enables a franchisor to have real time transparency over their brand’s insurance at the franchisee level.

What services do you provide to the industry?

NFIB provides a technology interface as well as an extremely cost-effective insurance solution dedicated to franchised business.

Franchisees can access a customised online area created specifically for their franchise.

NFIB can take care of compliance, certificates of currency and even make sure your dates line up taking the headache out of administrating your insurance. NFIB also provides franchisors with full insurance broking services for their corporate insurance needs.

And all NFIB products are underwritten by one of the world’s leading insurers.

This is designed to bring real and tangible benefits to both the franchisor and the franchisee. All our services are operated within a no cost ecommerce platform bringing all these related aspects logically together. As NFIB has developed its own proprietary technology, we are able to offer insurance solutions together with compliance management via our e base platform, all of which come as a benefit to the franchisor and their franchisees.

What experience do you have in this area?

I started my working career in 1979 as an apprentice in the RAAF (Engine mechanic) but moved into the insurance industry in the early 80s. Having always been in insurance sales and management, I have found the insurance industry to be both rewarding and challenging as it moves through the many evolutionary cycles.

I have enjoyed over 35 years in the industry covering both underwriting with an insurer and account management as an insurance broker. In 2002, I joined my first broking firm and over the next 10 years I built and developed a number of insurance broking companies together with supporting insurance agencies. I am passionate about success.

Nothing is better than finding the ‘gaps’ in the insurance delivery process and being able to build businesses that meet these needs for the customers. NFIB has been a success story of a company created at the right time and our clients and customers would attest to the value we have added to their brands.

Is insurance really that complicated?

Different insurance providers can have vastly different policies for, what at first, seems to be the same cover. If you’ve spent your life perfecting your coffee making skills, chances are you won’t be familiar with their jargon.

Fortunately, NFIB are familiar with all the jargon and what options are available to you.

They draw on years of industry experience to advise on your franchise’s specific requirements. While they are a technology based delivery solution, they do have a team of insurance brokers who are ready to walk you through the process of arranging your insurance. Knowing you have the right cover and that any unusual circumstances have been thought of brings peace of mind. And if something does go wrong and you must make a claim, they are best placed to ensure you get a quick and accurate settlement. While the business is based in Perth, they have assessors Australia-wide. Darryl Morris is happy to chat to franchisees should they wish to discuss any matter relating to their insurance.

The bottom line While the value of simplifying your insurance matters is huge, it won’t break the bank.

Quick and easy, setting up your own NFIB program is free. The only costs are related to the actual insurance premiums specific to the requirements of your franchisor. With such a vital aspect of your business in the very capable hands of NFIB, you’re free to do what you do best.

If you would like more information, contact Darryl Morris, Managing Principal of NFIB on: 1800 776 747 darryl@mynfib.com.au

Business Franchise Australia and New Zealand 37

pr o file : Z arraffa’s coffee

Zarraffa’s Coffee Training for Business Success

Zarraffa’s Coffee, established in 1996, was originally a roasting house operating from the backstreets of Southport on the Gold Coast.

Back then, customers would come in for their daily coffee and enjoy a fresh brew perched on a hessian bag full of green coffee beans yet to be roasted by founder and Managing Director Kenton Campbell.

From one store, Kenton has grown the privately-owned company into a franchise operation that is synonymous with quality coffee and in late 2012, took the brand bicoastal to the coffee-loving region of Western Australia.

‘An individual perfect cup of coffee – every time’ is the company’s mantra, mission and customer expectation and the business is built on a strong franchise system and foundation of franchise and barista training.

comprehensive operations manuals and full support from the franchise management team.”

“We ensure you have the tools of the trade and know-how to effectively run your business.”

It is this training and support from Zarraffa’s Coffee’s head office in Eagleby that has seen many franchisees become multi-store operators, who are looking to continually reinvest in the brand.

“That has probably been the best indication of how we are faring in the competitive franchise landscape; the fact that so many of our franchisees are long term and who are now employing their kids in the business, with a number taking on two, three or more stores.”

First time franchisee but long time Zarraffa’s Coffee team member Trent Moody and his business partner Oliver Humphry made the move to their first store in the Hunter Region of New South Wales, opening the doors to their Belmont North store in December 2017.

The company offers a full start-up training program at its new national base of operations – a 5.4-hectare site, located midway between the Gold Coast and Brisbane that also houses the award-winning roastery.

“We both spent lots of time researching the local market and we were awed by the local coffee culture,” Mr Moody said. “I was lucky enough to be a part of the launch of the Zarraffa’s brand in Townsville, and the reception to well-made, individualised coffee, available to dine in or drive through, was phenomenal.”

“We often refer to ourselves as a training business,” explains Mr Campbell. “We cover practical training, marketing, management and accounting as well as providing

Having worked together at the Worongary store, the first Zarraffa’s Coffee Drive Thru on the Gold Coast, both Trent and Oliver had first-hand experience with the systems and

processes of the company that ensured that the store not only represented the brand as its flagship drive thru location, but also achieved success as a business as well as thrive in the burgeoning takeaway coffee market.

“The investment into the franchise is good value when you take into consideration the support you get from head office,” says Mr Moody. “It’s nice to be able to pick up the phone and speak with someone who is an expert, whether it’s someone from the training, operations, marketing, legal, accounts or the team in the roastery, it’s great to be able to have that support.”

Eighteen months later and the investment in relocating to open a store in a new market have reaped positive results.

“The response has been ridiculously amazing.

Everyone in the community has supported us so much around everything that they do.”

Reflecting on the company’s growth to date Mr Campbell said at its core it had been a two decade, (and counting), love affair with coffee that had driven the Zarraffa’s family of businesses to date.

“Our brand is a home to small business owners who are like-minded and motivated, and there’s plenty more room for those interested in joining the Zarraffa’s herd.”

The unique aspect of Zarraffa’s Coffee is that, while they’ve been around for over 20 years, they’re still run by the family that started the company. For Mr Moody, this sets Zarraffa’s apart from their competition. “That really distinguishes the brand for us from everything else out there because they still have the personal touch around everything that they do.”

If you’re looking for your next business adventure, visit the Zarraffa’s Coffee website for more information and their list of current opportunities across Australia. www.zarraffas.com/franchising

38 Business Franchise Australia and New Zealand

Is open for business!

Whatever your background, a passion for coffee is what draws franchisees to our Aussie-owned business.

Join the growing network of almost 90 stores with opportunities now available in NSW, regional QLD and WA. For more details, go to zarraffas.com/franchising 124 Distillery Road, Eagleby QLD 4207 07 5500 0800 07 5500 0900 franchise@zarraffas.com

zarraffas.com

Business Franchise Australia and New Zealand 39

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 Our website also provides additional advertising and information which complements our publications.

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MOBILE FRANCHISING

VOL 13 ISSUE 05 JUL/AUG 2019

ON THE ROAD

MOBILE FRANCHISES MOBILE FRANCHISE TIPS

PUT YOURSELF IN THE DRIVERS SEAT THE PROS AND CONS OF A MOBILE VS A BRICKS AND MORTAR FRANCHISE

BEING AGILE IN A FAST-PACED WORLD Business Franchise Australia and New Zealand 41

what’snew!

Cairns Courier recognised for delivering success Peter was praised for his hard work and dedication delivering exceptional service for the Cairns community.

He thanked his customers and colleagues for their support and said he had enjoyed watching the business grow and his customers’ businesses grow.

‘I love my role delivering to the Cairns community. It’s been great to see not only our business grow over the years but also many local businesses especially with the growth of online shopping in recent years. Thank you to all of my customers and the rest of the Fastway team for your ongoing support,’ says Peter.

Regional franchisee Josh Bollman congratulated the couriers and thanked the team and their customers.

Six years of service and over half a million kilometres has seen Cairns courier Peter Capes recognised at a special Fastway couriers’ event.

The event kickstarted Fastway couriers’ annual courier day acknowledging the hard work and dedication of couriers and celebrating success in the network.

Cairns courier Peter Capes was in the spotlight, recognised as Fastway Cairn’s longest serving courier franchisee, celebrating 16 years of delivering in June 2019.

‘Fastway’s annual courier day event is a great opportunity to take a moment to reflect on the year, thank our team and recognise important milestones. Thank you to all of our customers and of course our hardworking couriers and staff who continually go above and beyond to deliver excellence every day,’ says Josh Bollman.

‘A special congratulations to Peter Capes for his 16-year milestone.

Peter has built a well-earned reputation for delivering the best to customers. This was recognised on the national stage a couple of years ago when he was named the prestigious National Fastway Couriers (Australia) Courier Franchisee of the Year,’ says Josh.

Josh Bollman also congratulated Tristan Rich who was voted the local Courier Franchisee of the Year for 2019. www.fastway.com.au

Jim’s Pool Care teams up with SPASA Australia have completed, at minimum, a Certificate III in Swimming Pool and Spa Service in recent years and understand the benefits to their customers and their own business this brings.

Jim’s Pool Care has recently joined in collaboration with the Swimming Pool and Spa Association of Australia to develop a streamline accreditation for franchisees.

Accreditation for pool servicing may not, at first glance, seem like an obvious necessity, however, it is an important part of becoming a pool care technician. The majority of Jim’s Pool Care franchise owners around Australia

Peter Holland from SPASA Australia, recently met with Brett Blair, General Manager of Jim’s Pool Care Australia, to begin working in collaboration to build and improve on the course integration of this Pool & Spa Certificate into one of Australia’s largest franchise systems. The new course requirements will ensure that all franchise owners will be applying the best up-to-date practices when servicing swimming pools around Australia, ensuring they are certified to do so and ensuring the continuation of quality standards within the industry.

The benefit of certification is not just for the pool professional but also for the public and pool owners around Australia. The longerterm goal of SPASA and Jim’s Pool Care is to have an accredited workforce of pool care

42 Business Franchise Australia and New Zealand

professionals who can provide feedback into the accreditation process, which in turn will enable more of the Pool and Spa industry to work according to this great national standard. For Jim’s Pool Care it will also help more than 100 of their franchise owners build the skills required to be the best in the pool industry.

Brett noted that he was ‘happy to support SPASA Australia’s efforts to educate pool professionals which will in turn, help to support pool owners all over Australia.’ Peter was equally as excited with the collaboration, ‘It is great to have the opportunity to enhance the industry standards, and great to work with Brett and Jim’s Pool Care in order to do so. The idea of having all new franchisees enrolled and immediately educated in the best practices of the industry is always good.’

131 546 info@jimspoolcare.com.au www.jimspoolcare.com.au

International business tour unlocks milliondollar growth for Poolwerx

Big business is on the rise at Poolwerx with more than 10 per cent of its Australian franchise network set to achieve turnover of more than $3 million within the next five years.

The goal was spurred by a business exploration tour to the United States, where a contingent of top performing Australian franchise partners spent the week reviewing operations of their larger international counterparts.

Poolwerx Australian COO Andrew Kidd, who initiated the trip, said 50 per cent of its American network generated between $3 to $8 million turnover and the visit proved the potential to reach similar scale in Australia.

‘This was an inaugural trip to leverage our power as an international brand and give our Australian franchise partners more insight into the enormity of the industry and how they can harness it,’ he said.

‘Our franchise owners were able to see how a multi-million-dollar operation needs to be led and managed. They learned how staffing could be scaled and controlled. Overall, they took away how vital it was for them to focus on the strategic direction of the business, and accurately understand how to measure business profitability.’

Malcolm Price, owner of Poolwerx Turramurra in New South Wales and Poolwerx’ highest performing franchise, said the trip was invaluable in helping confirm his long-term business goals.

‘Visiting our business in the US really broadened the lens at which I look at my business and gave me a moment to distil what is possible and what is important to me,’ he said.

‘There is no denying what I experienced on this trip has given me the confidence I am with the right system to support my growth and that it is possible to replicate big business success in Australia too.’

Vision PT invests $1.3 million in technology overhaul Vision Personal Training has invested $1.3 million in digital innovation this year including a new MyVision app, Vision Academy online learning program, and a Vision Ready Meals home delivery service that allows people to select chef-designed weekly menu plans based on their individualised macronutrient profile.

This latest technology overhaul propels the largest Australian-owned personal training franchise success story into the next phase of its remarkable journey that started 20 years ago with a vision to create premium personal training services with a holistic approach to emotion, education, eating and exercise.

“It blows my mind to think I didn’t even own a mobile phone when Vision first started 20 years ago. We’re all so connected now in a digital ecosystem we could have never imagined back then. This latest technology investment positions us strongly for the next phase of our growth, and supports our existing network of clients, owners and trainers in really practical, innovative ways,” says Andrew Simmons, CEO and founder of Vision Personal Training.

The Vision Ready Meals home delivery service, available since 24 June via the MyVision app, is a new revenue opportunity for Vision Studio Owners who can earn 50 per cent of margin on all meal orders.

‘We have always had a focus on growth with a clear business development path for our franchise partners. Our aim is for this week-long international learning experience to be part of the next level training for those with large business aspirations.’

Easily the biggest ticket item at $520,000 is the new MyVision app available. The revamped food diary feature on MyVision connects vision clients with a database of more than 75 per cent of food brands and products available across Australia and New Zealand. Clients with the best results are those who are intentional and conscious of tracking their food. MyVision makes it super easy to enter what they’ve eaten each day and track those choices against their Vision macronutrient goals.

www.poolwerx.com.au

Visit www.visionpt.com.au for more inspiration.

Mr Kidd said the company proposed to make the trip a permanent initiative as part of the growth planning process for high performing franchise partners.

Business Franchise Australia and New Zealand 43

what’snew!

GymbaROO jumps for joy after winning kids’ awards Australia’s premier developmental program for babies and pre-schoolers has won four awards at the What’s On 4 Kids 2019 Awards.

GymbaROO and KindyROO took out the awards for: • Best National Toddler Activity • Best National Toddler Activity (People’s Choice) • Best Baby Activity (People’s Choice); and • Best Activity for Parent and Child (People’s Choice) Toddler Kindy Gymbaroo CEO Beth Pocklington says the company is thrilled to win the awards, which reflect the importance of their programs to the community.

‘It is the biggest awards platform for children’s activities in Australia,’ she says.

‘Winning any of the awards is recognition from our peers and our industry and most importantly, the families who take part in our programs that what we do is worthwhile and having an impact. Our success represents our children’s success.’

Mrs Pocklington says GymbaROOKindyROO, which has been operating since 1982, has stood the test of time and offers parents a unique opportunity to be directly involved with their children’s development.

‘Parental involvement in the classes is critical and families are given fun activities to do at home, which further facilitate learning and bonding,’ she says.

‘All of our programs are based on more than 30 years of scientific research that shows children who exercise regularly have improved cognitive function.’

Mrs Pocklington says GymbaROO’s programs offer children time away from electronic devices, giving them a chance to develop their language, self-regulation and creativethinking skills.

She says GymbaROO teachers, who are usually tertiary qualified, receive training from the company to ensure they understand the science behind the activities. After five years of teaching at a GymbaROO centre, they can train to become an early childhood neuro-developmental consultant and assist

parents who have concerns about their child’s development.

There are more than 100 GymbaROO centres throughout Australia, and many overseas, supporting the natural physiological development of babies, toddlers and preschoolers. www.gymbaroo.com.au

Aussies shop products on low prices over high quality • CouriersPlease research reveals 57 per cent of Aussies choose products on price, compared with 32 per cent who say quality is the most important.

• 62 per cent say the lowest quality product comes from the fashion and jewellery category.

• 67 per cent use online reviews to help mitigate their risk of choose a poor product.

On the back of new research, leading parcel delivery service CouriersPlease forecasts that the online shopping industry will have a greater focus on low prices, as the industry respondents to consumer preferences.

A survey of an independent nationally representative panel of 1000 Australians who shop online, commissioned by CouriersPlease sought to gauge just what those consumer preferences are – quality, receiving the product quickly, or low prices?

It seems that low prices not only trump other factors, but consumers might not have very high expectations of quality when buying on price. When asked about the most important factor to them when

44 Business Franchise Australia and New Zealand

shopping online, over half (57 per cent) of Aussie shoppers said it is low prices. Only 32 per cent said that the quality of the product is more important, while receiving the product quickly is the least important (chosen by 11 per cent of respondents).

CP spokesperson Jessica Ip says: ‘More often than not, Aussies expect to get a good deal when shopping online compared with shopping instore for the same product. At CP, we believe this expectation will only grow as the retail industry continues to shift to online, and e-tailers will follow suit.’ www.couriersplease.com.au

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THE RIGHT INGREDIENTS FOR A BRIGHTER FUTURE LA PORCHETTA SATISFIES AN APPETITE FOR CHANGE

Much loved brand La Porchetta recently joined a select list of franchises that measure their success in decades and innovation, this has been one of the key drivers of its longevity and success.

The brand that was built on providing traditional Italian meals with warm service, is also a market leader when it comes to adapting to the demands of the contemporary consumer.

The La Porchetta brand began more than 30 years ago, when two young Italian migrants purchased a run-down pizzeria in North Carlton, close to Melbourne’s Italian hub. It was 1985 and La Porchetta was then a takeBXBZ CVTJOFTT POMZ ɨF OFX PXOFST 3PDLZ Pantaleo and Felice Nania were passionate and hard-working, and their reputation for preparing great food spread quickly. In that pre-delivery era, there were soon long lines of people waiting outside the small shopfront to pick up a La Porchetta pizza or pasta to take home. ɨF mSTU DIBOHF UIBU 3PDLZ BOE 'FMJDF NBEF was to transform La Porchetta into a licenced, a-la-carte restaurant. Their great meals and excellent value were already legendary and now customers could enjoy both, in a welcoming and vibrant restaurant. La Porchetta became renowned as a special place to experience good food and a passion for life, and the seeds were sown for its future success as a much loved brand. #Z UIF MBUF T 3PDLZ BOE 'FMJDF T WJTJPO had become clear. They wanted to develop the largest Italian-style, franchised restaurant group in Australia and New Zealand BOE JO UIF mSTU GSBODIJTF PQFOFE

12 Business Franchise Australia and New Zealand

“Throughout our growth and modernisation, we’ve retained that unique offering, while still meeting the challenges of a changing marketplace.� in Melbourne’s north. It served the same delicious food and had the same, warm, family atmosphere as the Carlton restaurant.

It quickly became a local favourite.

As La Porchetta grew, consumer expectations began to change and La Porchetta needed to adapt. Increasingly time-poor customers preferred to meet with family and friends in their favourite local restaurant, rather than prepare a dinner party at home, so La Porchetta restaurants created function spaces for special events.

With the brand’s family values, a natural addition to functions was the introduction of children’s birthday parties. La Porchetta created “Mini Chef� events at which children could not only have fun, but also learn about food preparation by making simple pizzas with basic ingredients.

Consumer tastes change with new and emerging trends and La Porchetta regularly reviews its menu to reflect these. With an increased focus on health, the brand responded with innovative menu changes that provided lighter options, while retaining the authentic Italian flavours that customers wanted.

While changes such as these may look simple, at La Porchetta, each new innovation is preceded by extensive consultation with franchisees and research and planning by the support office team. Many ideas are collaborated on with franchisees via the Franchise Advisory Committee. “As a brand, we’re very focussed on innovation and development to stay ahead of the game,� says La Porchetta CEO Sara Pantaleo. “Our team has ears to the ground when it comes to food and restaurant trends and we’re also informed by the latest industry research. For us, innovation is a team effort, with input from everyone involved, including franchisees, customers and suppliers. We listen to what all our people are telling us and that’s what helps us retain our loyal customers and attract new ones.�

As customers and businesses moved online, La Porchetta was an early adaptor with electronic solutions, such as web and app ordering, as well as, electronic menu boards in restaurants. “Each new development is designed to make the customer experience as easy as possible,� says Ms Pantaleo. “And that helps drive sales for franchisees.�

Today’s consumer wants the convenience of home delivery and La Porchetta was

quick to respond. In order to ensure smooth introduction of this new service, IPNF EFMJWFSZ XBT mSTU USJBMMFE BU TFMFDUFE restaurants. Before being introduced across the group, all La Porchetta’s technology platforms, including online ordering and point of sale, were reviewed to ensure customers could easily order by phone and online.

make them as easy as possible. “As focussed as we are on customer demands, we ensure that innovation and modernisation are not difficult or stressful for franchisees and their staff,� said Ms Pantaleo. “We develop comprehensive training and support packages for each new innovation, and the beauty is, all these changes ultimately enhance revenue potential for franchisees.�

'SBODIJTFF 3POOJF #BSSFTF TBZT -B 1PSDIFUUB listens to franchisees and moves with the times and that’s one of the reasons he has been with the brand for over 20 years. “La Porchetta really supports innovation,� says Mr. Barrese. “They understand that franchisees know best what their customers want. The secret to success in a business like ours is to go where the public is taking you and that’s exactly what they do.�

La Porchetta is today a transnational franchise and a trusted brand, known for its quality, value and warm service. “We began as a family-run, family-oriented business, which was like a local Italian kitchen for many of our customers. Throughout our growth and modernisation, we’ve retained that unique offering, while still meeting the challenges of a changing marketplace. That’s why we’re now enjoying the custom of younger patrons as well,� says Ms Pantaleo. “Over the last 30 years we’ve worked hard to ensure we stay ahead of the game without compromising our core values.�

VOL 13 ISSUE 05 JUL/AUG 2019

La Porchetta

THE RIGHT INGREDIENTS FOR A BRIGHTER FUTURE Opportunities are now available for aspiring

In recent years, Mr. Barrese noticed a distinct trend among his customers towards vegan dining. This was supported by research coming into La Porchetta that veganism and “flexitarianism� - where people want to eat vegetarian or vegan once or twice a week - was an emerging trend. Following an exhaustive process of researching menu options, ingredients and customer responses, a new vegan menu was rolled out across La Porchetta late last year.

restaurant franchisees who want to be part of a long-established and successful franchise system.

For Mr. Barrese, menu innovation is just one of the ways in which La Porchetta has innovated to meet changing consumer trends. “La Porchetta has changed a lot in recent years,� he says. “If you owned a franchise 15 years ago, you wouldn’t recognise it today, because we’ve developed so much. That’s one of the strengths of this brand.�

WHY LA PORCHETTA? t " QSPWFO QSPmUBCMF PQFSBUJPO t " NVDI MPWFE BOE SFDPHOJTFE OBUJPOBM brand.

TOP TEN TIPS FOR TAX TIME

Each new innovation also requires La Porchetta to review its systems and processes to streamline changes for franchisees and

t 4USPOH MPDBM BSFB NBSLFUJOH TVQQPSU BOE advice. t " DPNNJUNFOU UP JOOPWBUJPO BOE CSBOE development. t 3FHVMBS GSBODIJTFF NFFUJOHT XIFSF ZPV can network and learn from other likeminded professionals.

SPECIAL FEATURE www.laporchetta.com.au

ON THE ROAD

Business Franchise Australia and New Zealand 13

MOBILE FRANCHISES TOP TIPS FOR PROFESSIONALS

LOOKING TO OWN A FRANCHISE BUSINESS

www.businessfranchiseaustralia.com.au Business Franchise Australia and New Zealand 45

FE ATUR E : fi x ed vs m ob i l e fr anch ises

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

On the Road:

Mobile Franchises

Location, location, location!

All good businesses know the importance of choosing a great location to operate from. You want to be close to your customers and maximise your exposure for the lowest cost.

But one sector of franchisees doesn’t need to worry about a location. So, what exactly is a mobile franchise?

Taking it to the people An ever-changing view, mobile franchising means not sitting in the same office every day. You take your product or service directly to your customers and you both

win. Service their car at their workplace so they don’t have to waste the weekend.

Bring fabric samples to their house so they can find exactly the right shade against the whole room. Diagnose technical issues faster in its usual place so you have all the relevant information. Wash dogs in familiar surroundings to reduce anxiety. People are recognising the benefits of a good worklife balance and need services that can fit in with their varying schedules. A mobile business gives you the flexibility to meet your customers when and where they need you.

And the benefits continue From as little as $10,000, mobile franchises are a low-cost entry, so you can be on the road earning money sooner. With no business property to maintain, there are lower overheads and no landlord or centre management relationships to manage. This

46 Business Franchise Australia and New Zealand

means they can be a simpler business to run and so often no extra employees are required.

And while all franchise businesses allow you to take control of your lifestyle, mobile businesses have an extra level of freedom in that a store doesn’t need to close or replace you if you have other commitments in business hours. In fact, your business hours are whatever works best for you and your product or service.

Support Mobile franchises come with the same support a bricks and mortar style franchise does. The source organisation can help you with all aspects of the business from practical things such as supplier lists, to industry specific training such as how to create the most profitable and efficient coffee run. Usually a franchisor will also provide business and administration support such as

“With no business property to maintain, there are lower overheads and no landlord or centre management relationships to manage.”

“Running your own mobile business doesn’t mean you have to go it alone.” branding, stationery and a social media and/ or web presence. This means you can focus on the work you love, knowing these other important aspects have been covered by the experts in those areas. Many franchisors will also offer mentoring and run conferences where you can be inspired by your fellow franchisees. Running your own mobile business doesn’t mean you have to go it alone.

Growth Mobile franchising is a fast-evolving sector.

Familiar business Jim’s Group, most wellknown for its mowing service, now has 52 divisions and growing, having recently added Jim’s Real Estate. There is potential for a mobile franchise for any interest under the sun. Pets, property and coffee are amongst the most popular as are office supplies and services. Some existing franchises are adding a mobile arm to their current businesses such as McDonald’s and Red Rooster and there are sure to be many more to follow their success. A 2016 survey by the Franchise Council of Australia estimated the total sales turnover for the franchising sector between 2014 and 2016 at $144 billion. If you have a passion, it’s likely you will find a mobile franchise to turn your dreams into dollars.

Before you jump in When considering a mobile business, it’s important to do your research and understand the factors unique to mobile

franchises. Be sure to carefully consider whether your desired business is a good fit for you. Like any business, your mobile business will flourish when it ticks three important boxes for the customer: quality, service and price. Without a shop for potential customers to wander in to, the quality of your work will be the main draw card. You may decide that some extra training or experience would help before you branch out on your own. Do you have the personality to build and foster customer relationships? Depending on the type of work you do, repeat business could be your main income, and customers return to where they feel valued. Identify any other challenges you might face and what you could do to overcome them.

Due diligence Franchisors are required to provide you with a number of documents and details related to the franchise and it is your responsibility to ensure you have fully understood them.

Examine the franchise’s financial health record and see if it lines up with your expectations. Contact previous and current franchisees about the business, the franchisor and any issues they encountered. Double check your assumptions will pan out as you expected. Consider specialist business and legal advice. Check out the Australian Tax Office (ATO), The Australian Competition and Consumer Commission (ACCC) and Government websites for franchise information too. Do your homework thoroughly and keep records in case of any issues down the track. You don’t want to find out you have to generate all your own leads after you’ve laid down your hard-earned cash. A fully informed decision is likely to

be far more successful and rewarding in the long run.

Territories Some franchises organise their franchisees into areas or zones to ensure equality in their customer base. Make sure you are clear about where you can and cannot work/service.

Your franchise agreement will explain whether you have an exclusive territory or not, where you are permitted to market your business and any other exclusions and rights you have. Be sure to understand everything in this document before you sign up.

Research Owning your own business doesn’t necessarily mean every dollar you earn is yours. Find out what fees and other costs are involved in the franchise you are considering and don’t forget running and maintaining your vehicle. Some are initial and some will be ongoing. If you’ve worked for a salary, your tax requirements could be quite simple. Taking on your own business means knowing what your reporting obligations are. Check in with the ATO or a trusted accountant about franchise specific requirements. There are also potentially very different insurance needs. You want adequate coverage if you are working on private dwellings or at the very least, income insurance if the business would not be able to run if you were sick or injured.

Go for it If you value your freedom, have a marketable skill and are driven to succeed, then a mobile franchise may be just the ticket.

Business Franchise Australia and New Zealand 47

FE ATUR E : fi x ed vs m ob i l e fr anch ises

“Like any business, your mobile business will flourish when it ticks three important boxes for the customer: quality, service and price.”

FE ATUR E : fi x ed vs m ob i l e fr anch ises

e x pert adv i c e

The pros and cons of a mobile vs a bricks and mortar franchise At any given moment there are thousands of people across the world looking at buying a business and many of those will be looking at a franchise.

There are as many types of franchises as there are businesses.

The franchise model is usually a safer way of starting a business for the first timer as a franchise’s established brand and systems can help the many would-be entrepreneurs who would otherwise join the alarming number who fail at their first attempt in business. A major reason to acquire a franchise business

is that it can give you the franchisor’s tried and tested knowledge on growing a business, and then you can use that knowledge in any future business venture, franchised or not.

of emotional and physical energy, so you need to do some thorough research.

Among the many essential things, you need to do before you buy your first franchise is to work out if you are most suited to a mobile, generally a service business model, or a bricks and mortar business model, generally selling a product. Ultimately this means you must decide if a ‘service’ franchise or ‘retail’ franchise is a better fit. It’s an important distinction in terms of both entry requirements and operational realities, and it’s a decision which can determine your ultimate effectiveness as a franchise operator.

So, first let’s look at some of the typical service businesses that operate successfully today. The good news here is that this sector has been growing rapidly since the turn of the century and it’s a trend that is tipped to continue. Popular examples include, various specialised cleaning businesses, car washing, mobile mechanics, pool maintenance, garden services, building trades, building maintenance, children’s tutoring, health services, home care, mortgage and finance broking, bookkeeping and real estate… and there are plenty more! So, you see that there are plenty to choose from!

Whichever model you choose, you are going to invest a sizeable amount of funds and lots

48 Business Franchise Australia and New Zealand

The mobile business model

Similarly, as a one-man band, if you are sick or not available to work maybe all the money flow will stop.

The bricks and mortar business model Everyone is familiar with the typical retail or product businesses that fill every shopping mall and strip shopping area. Drive around an industrial area and you’ll see many more, often very profitable business-to-business outlets.

Between them they offer literally any product you can imagine.

Whilst these outlets can be a very good choice, and provide a good return on your investment, make sure you do your homework and take care with your decision.

Some cons It’s a busy marketplace in which there are often new entrants, many new businesses up for sale, and many vacant sites, all looking too tempting at first sight.

“Do not fall for the trap many do by thinking everything will be done for you, and that franchising suits everybody, because that just isn’t necessarily true.”

Trade-based mobiles are typically ‘skills based’ and often best suit those with the ability, interest, and dedication to be active and ‘work with their hands.’ Not everyone can fit. And of course, you need to have or be eligible for the appropriate qualifications.

The pros Because many mobile businesses do not require a showroom or factory unit their overheads are kept to a minimum. Always a bonus, especially when cash-flow is tight.

In these circumstances, often it’s easy to create a positive cash flow, especially when you have few, if any, employees.

And, working hours can be flexible – often by appointment only – so you’re not restricted by long retail hours. This can be

a big plus for some lifestyles. But keep in mind, like most businesses, the more you work the more you earn.

With this is mind, consider that mobile service businesses generally can offer more economical start up and operating costs, and often they require few if any staff for their day-to-day operation. And of course, being home-based they may well offer a lot of flexibility. Looking to the future it’s worth noting that this also gives you the advantage of expanding to more areas at a minimal cost if you want.

Some cons Does this all sound too good to be true?

Because what suits one doesn’t necessarily suit another, the flip side of the benefits I’ve described is, depending on your ambition and resources, the points outlined above can each be viewed as disadvantages. Particularly in limiting your growth potential.

Is your family going to be happy about filling your home with stock, for example?

You may also find you have more admin work than you would like. Without a showroom, maybe you must generate the sales. And if you’re not experienced in

Don’t be fooled by attractive rent offers and incentives because you’ll be committed to a lease of several years which you’ll be liable for whether you make a profit or a loss!

In the case of many business types, despite receiving rental incentives, there’s a significant initial investment with fit-out and stock among your start-up costs. In many cases this can be half a million dollars or more!

To add to the mix, in most cases there will always be lots of competition. Often very strategic, with ruthless price-cutting and sales methods. So, it’s not a field for the novice.

However, for the wise and well-prepared, there can be significant profit and capital gain for when you come to sell.

So, as you can see, there have been many pros and cons you have considered.

Assuming that by now you’ve made your choice between a mobile and a bricks and mortar franchise, let’s look closely at franchising.

The next step Beware of snake oil salespersons.

Regrettably many business buyers fall in love with a business or whoever is selling it.

Whether or not it really is the right business

Business Franchise Australia and New Zealand 49

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“Whichever model you choose, you are going to invest “When considering a sizeable amount of funds and lots of emotional and the value of such physical energy, so you need to do some thorough contracts, take into research.” account the length Brian Keen | Founder | Franchise Simply of the contract and the rights of the client to cancel or terminate the contract. Ask to see a copy of a sample contract.”

a role the hours you must spend calling on prospects can be disheartening and ultimately, if you don’t hit your sales budget, financially crippling.

FE ATUR E : fi x ed vs m ob i l e fr anch ises

e x pert adv i c e

for them inadvertently becomes second in line. And be aware that sadly, not all businesses or franchises turn out the way everyone wanted, and for a whole number of reasons.

You can best avoid being one of these numbers by doing your research properly and choosing the ideal franchise for you. In this way you are optimising your chance of success so you can achieve your goals and no doubt create a business asset that you can one day sell at a handsome profit.

Learn about franchising You’ve thoroughly researched the marketplace and selected your franchise.

BUT, what do you really know about franchising?

Is your opinion accurate? Or is it based on rumour and urban myth?

Franchising really is a marvellous business model that has helped endless hundreds of thousands of franchisees become wealthy, but do not fall for the trap many do by thinking everything will be done for you, and that franchising suits everybody, because that just isn’t necessarily true.

“Doing your research properly and choosing the ideal franchise for you is the best way of optimising your chance of success so you can achieve your goals and no doubt create a business asset that you can one day sell at a handsome profit.”

Carefully ask yourself a whole range of questions and determine just what your skillsets are.

Consider your answers carefully and decide if franchising really is suited to your skill sets and personality.

Free Help – I’ll pause here for a moment to recommend you enlist the free help of Dr John P Hayes, one of the most authoritative people in the world when it comes to franchising. Go to surveymonkey.com/r/ howtobuyafranchise and complete his free franchise-specific DiSC Profile.

You’ll receive some very valuable information from John that will help you considerably.

This step alone could well save you your investment!

So, now’s the time to review your research results and, if you feel confident this franchise is the one for you…

Congratulations!

50 Business Franchise Australia and New Zealand

Now call your chosen franchisor. Because if you’ve asked enough questions of the right people, and critically, of yourself, you have optimised your chance of success. Just like the many other happy and successful franchisees prospering in this exciting and dynamic world of franchising.

Brian Keen has been involved in the franchise industry for more than 30 years and today is the Founder of Franchise Simply. His on-the-ground business experience as a multi-unit franchisee, franchisor and consultant helping many of the big names create their own franchise systems and growth over the years has been fed into Franchise Simply, helping today’s SMEs grow their business by franchising.

For more information on Brian can be contacted at Franchise Simply on 1300 960 136 or go to www.franchisesimply.com.au

Business Franchise Australia & New Zealand is part of the global network of CGB Publishing

With over 30 years’ experience in providing high quality business information, with a particularly strong focus on franchising, our global presence allows opportunity for international franchise marketing solutions.

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Mobile franchisee tips

Put yourself in the driver’s seat A mobile franchise business could be your vehicle to a more flexible and dynamic career.

You can be your own boss and call the shots or sell the shots (if you buy a coffee van), but as part of a franchise you shouldn’t be left to navigate your new territory alone.

Before buying a mobile franchise business, you need to be satisfied that the franchisor will provide the training, technology and ongoing support you will need to build your business as part of a reputable brand.

Training Most mobile franchises offer three to four weeks of initial training, giving you the chance to learn about the equipment, booking system, financial management, marketing and setting goals. But is ongoing training part of the franchise agreement? Do you get a mentor? This training could relate to new products, technology or innovations.

You may need new skills to stay competitive in a changing market. Are you able to access training modules from your smartphone or tablet? Does the franchise agreement cover the cost of a new qualification if you are, for example, an electrician branching into

“You can be your own boss and call the shots or sell the shots (if you buy a coffee van), but as part of a franchise you shouldn’t be left to navigate your new territory alone.”

Corina Vucic | Director | FC Business Solutions

solar installation? Being given a DVD or a YouTube link isn’t going to cut it. Ongoing training reflects the quality of the franchise.

Equipment As a mobile franchise business, your vehicle is your number one asset. It will be a good quality vehicle of a certain type, with branding on the exterior that identifies and promotes your business. You will either buy or lease the vehicle, depending on the franchise agreement. For example, one mobile coffee franchise sells the vehicle as part of the franchise fee for up to $150,000, while another franchise retains ownership of the van and equipment and the franchisee pays a licence fee of $250 plus GST per week. You may need to pay extra for such tools as a trailer and the ride-on mower. Does the franchise agreement cover vehicle maintenance or comprehensive car

52 Business Franchise Australia and New Zealand

insurance? Is so, for how long? Consider how much you’ll spend on petrol each week, especially in a regional area. A GPS system is required, but software that syncs with the company’s CRM system to show routes and update appointments is even better.

HR helpdesk and support You might start out alone, but then find you need to employ other people because you have successfully increased business.

Does your franchise have a HR helpdesk that covers workplace compliance? Does the franchisor offer advice on hiring, onboarding and managing staff? You will need to know current IR laws, regulations, wage requirements and the relevant regulatory bodies. You may have no experience hiring staff, so you need to find out if the franchisor will provide training. You do not want to risk a fine or penalty or end up damaging

Service providers Many franchises have particular products and suppliers that franchisees must buy, use and/or sell. Find out if the franchisor gets a rebate or other financial benefit from these arrangements. Sometimes, the franchisor sells key products or services directly to franchisees. Check if you can source your own suppliers and if there are any limitations. If you choose your own suppliers you will need to consider reliability, quality, cost-effectiveness and warranties.

Another consideration is storage and access.

Is there a centralised warehouse or do you need your own storage or office facility? For example, if you’re running a tyre business, where do collect the tyres from for your next job? If it’s a pool-cleaning business, where are dangerous goods stored? This information should be in the franchise agreement and disclosure document.

Technology You’re on the road, so you want easy access to the information you need to run your business. You should be able to get client details and your schedule with a few taps on your phone. The franchise may expect you to buy particular software and IT, which could mean a new laptop computer, tablet or smartphone as well. Check if you will be able to access tasks, instructions, the operations manual, training materials, policies and procedures from any location or any device via cloud technology.

Is there a centralised system to provide local referrals and if so, what costs are associated with it? This system should cover CRM, scheduling, online booking, estimating, dispatch, routing, GPS, invoicing, payments, royalty collection and reports. Do you need to carry a portable EFTPOS machine or are payments made online? You’ll know the franchisor is up to date if they are using a mobile app to deal with payments, communicate, deliver training modules and audit.

Communication Do you have the ability to stay connected with the franchisor? Unlike a fixed site, where you can ask the person sitting next to you for advice, you’ll need to get answers and support in real time on the road. You don’t want to get bogged down with multiple phone calls and emails. Is there an instant messaging service? Does the franchise use cloud-based platforms, such as Google Docs

“You’re on the road, so you want easy access to the information you need to run your business. You should be able to get client details and your schedule with a few taps on your phone.” or Dropbox? Many franchises have an online message board, forum or social media group for franchisees to connect with each other to share ideas, marketing suggestions and ask for advice. You should also expect regular communications about company news, policy changes, product launches and new franchisees and staff.

Compliance You will need to know your rights and obligations under the Franchising Code before you enter into a franchise agreement.

Decide if you can comply with the operations manual. What mentoring and guidance will you get? This is particularly pertinent when you’re the sole representative of a franchise and its core values in a local area. Do you have the personality to develop a quick rapport and make people feel at ease? Your vehicle will also be advertising your business. You’ll need to obey all road rules, be courteous to other drivers and keep the vehicle clean and repair any damage as soon as possible. You don’t want potential clients remembering the brand for all the wrong reasons. If you do have an accident, how will you manage the business while your vehicle is out of action? Does the franchise agreement include the temporary use of another vehicle in such incidences?

Consistency and compliance are the keys to a successful franchise business.

Marketing and social media A percentage of your sales will go towards

marketing. Check if the franchise is using SEO (search engine optimisation), PPC (pay-per-click), social media and local search engine marketing. Research shows most people use their smartphones to search for a business, so check if the franchise has a mobile-optimised website. How does the franchise’s central website and social media help you at a local level? Your market, demographics and local competition may be different to a franchisee operating in another state. How does the franchise deal with those differences? Does the franchise use newspaper advertising, email or SMS to reach potential clients? It is unlikely you will be allowed to run your own social media because of quality control but find out if it’s an option.

Corina Vucic is the Director of FC Business Solutions. With over 20 years in the franchise industry, and extensive operational and management experience, she works closely with leaders to take their business to the next level. Whatever their goals, Corina coaches, mentors and supports business owners and executives to maximise success and minimise risk for long-term business prosperity and security.

To discuss how Corina’s expertise can help take your business to new heights, contact: 03 9533 0028 cv@fcbs.com.au www.fcbs.com.au

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your reputation, the reputation of the brand or breaching the franchise agreement because you have failed to meet compliance requirements.

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e x pert adv i c e

How the virtual workplace is transforming human resources A business is only as good as its people. That’s one of the most commonly used clichés in business, however that doesn’t make it any less true.

Every business leader knows that talent is your real competitive advantage, and without a stable, engaged workforce, your

client and customer relationships will suffer.

In other words, if you don’t have the right people in place, you’ll lose business to your competitors that do.

Recruitment is becoming a major business challenge as big fish compete for the pick of the limited talent pool. While the big end of town can – and often do – throw money at the recruits they want, smaller businesses with fewer zeroes in their payroll budget often find it more difficult to attract indemand talent.

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The virtual workplace as a recruitment tool However, the virtual workplace model has the potential to change all that. It allows small and medium businesses to offer the work flexibility that most big-company employees can only dream about. With a virtual workplace model in place, your team can work from home – or any location of their choosing – and say goodbye to the long commutes to and from a city office.

This work flexibility is highly valued among

Ruth MacKay | Founder and Managing Director | OURTEL Solutions

a wide range of employees, and can allow small and medium business to attract the top talent away from more cashed up corporations who rely only on money as a recruitment tool.

The virtual workplace model also unlocks hidden talent that is often not available to traditional bricks-and-mortar companies.

For example, at my company our 100 per cent virtual model has allowed us to recruit talented agents who live in remote areas away from cities, mature-aged employees who bring a wealth of experience to our team, and people with disabilities or mobility issues who may be unable to travel to a bricks and mortar workplace.

Retaining staff with more than money Staff retention is another challenge that keeps many business owners up at night.

When an employee only works at your company because of the salary you pay them, they are usually open to other offers and will often head to your competitors if that’s where the money is.

In other words, if money is your only retention tool, you’ll likely find yourself paying out more and more to keep your key staff until you hit a tipping point that is completely unsustainable.

drastically reduced our recruitment and training costs, but also ensures we have a stable foundation of employees who can build long-term relationships with our clients.

Human resources in the virtual workplace However, the virtual workplace doesn’t run itself, and requires a strong commitment to ongoing human resources management to ensure employees feel supported, included and on a defined career path.

Technology is a key tool here. We hold daily social catch ups in virtual classrooms where staff can feel free to chat about nonwork issues and develop strong personal relationships with each other. This helps to foster a sense of inclusion within our teams, and helps to ensure our agents don’t feel isolated.

Also, technology helps us to closely track employee performance against their KPIs. This allows our team leaders to recognise and reward high performers, and to identify when an employee may require further support or training so none of our people feel lost, overwhelmed or forgotten.

The virtual workplace model, on the other hand, gives your employees reason to stay with your company over and above their salary. Once they experience the superior work/life balance of a virtual workplace, it becomes much more difficult for your competitors to steal them away with offers of more money alone.

For example, more than 60 per cent of our employees have been with us since our launch eight years ago. This had not only

A virtual model allows you to recruit employees who bring a wealth of experience to your team including people who live in remote areas or people with disabilities or mobility issues who may be unable to travel to a bricks and mortar workplace.

Of course, the virtual workplace isn’t a good fit for everyone. That’s why it’s vital to get your recruitment right in the first place.

Don’t underestimate the importance of the right soft skills here. Even the most technically gifted employee may struggle to thrive in a virtual work environment if they don’t possess the necessary characteristics.

From my experience running a virtual workplace, I know that high-performing virtual workers tend to be results-orientated people with high-level communications skills. They must also be pro-active relationship builders, self-sufficient, self-disciplined and willing to set clear boundaries between their work and personal lives.

Get that right, and the virtual workplace model will not only help you recruit the top talent without busting your payroll budget, but will also make it easier to retain them and create a stable long-term workforce you can build your business on.

Ruth MacKay is the founder and managing director of OURTEL Solutions where she manages a 100 per cent virtual workforce. She is passionate about helping businesses gain a competitive advantage, improve profits and retain top talent through leveraging proven virtual workforce models. Ruth is also the author of the new book, The 21st Century Workforce. For more information visit www.ourtelsolutions.com

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“With a virtual workplace model in place, your team can work from home – or any location of their choosing – and say goodbye to the long commutes to and from a city office.”

Key attributes of a successful virtual worker

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h av e yo ur say

Being Agile in a fast-paced world Agility may be a buzz word in business, but it’s the key to staying competitive and relevant in a fast-paced, rapidly changing world.

Since taking on the role of CEO at GymbaROO 18 months ago, Beth Pocklington had to be as agile as the thousands of children who climb, jump and swing on GymbaROO’s equipment every day. She had to listen to franchisees and customers, challenge the status quo and take risks to help the business evolve.

GymbaROO CEO Beth Pocklington

Research shows GymbaROO founder Margaret Sasse was well ahead of her time in recognising the link between exercise and cognitive development but in many ways, the franchise had become old school. We spoke with Beth to find out how she transformed the business from old school to the business it is today.

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Understand technology It is important to understand the effects technology will have on your business operations; technology can affect business culture, efficiency, staff relationships, and your profit. Ensure everybody in your business is using the same platforms and technology – you want everyone on the same page. Communicating via platforms like Zoom video conferencing allows you to have face-to-face interaction with staff members you might not be able to get out and see.

Make sure emails are purposeful and to the point. Many franchisees are working on their business at night, after an exhausting day running their business, emails need to deliver important information at a glance.

Many businesses still don’t have enough of a presence online or aren’t using their websites to their full potential. When I started at GymbaROO the magazine that documented all the scientific research that backed-up our programs was still printed and not

readily available online for our customers and franchisees. A well-maintained website can help you gain a competitive advantage and improve your brand. Your website is often your first impression you give potential customers.

Set goals Goals are powerful and are hugely important for every business owner. Be sure that your goals tie back to your mission, ensure they are realistic and consider the actions needed to achieve these goals. One of our first goals was to remind the community that we had more to offer than our competitors, that our programs are evidence-based and give parents the chance to actively contribute to their child’s mental, physical and social development and readiness for school.

We started working on our goal by updating our branding. We launched our new website in July 2018 and within the first nine weeks, we had 1000 unique enquires about classes. The content doesn’t need to change, sometimes just the design of the website can make a huge difference.

Rebuilding a brand includes creating an agile mindset and culture within the organisation, especially in terms of technology and marketing.

“It is important for a leader to demonstrate respect for their franchisee’s knowledge and experience, and earn trust, which is an ongoing process.

Passion should come before profit.” their space with other businesses. How do you protect your assets when you are not there?

Be an open leader Naively, I expected that the franchisees would be thrilled to have new leadership.

But many had been in the business for a long time and they weren’t going to trust a new leader right away. It is important for a leader to demonstrate respect for their franchisee’s knowledge and experience, and earn trust, which is an ongoing process. Passion should come before profit.

Be agile

GymbaROO was originally devised as a mobile franchise, and about half of our franchisees still have pop-up centres for parents and children rather than a fixed location. Mobile franchises are very popular and while they offer flexibility, they also present unique challenges. The church halls and community centres are often run down and desperately need a lick of paint. Assembling and disassembling all the equipment is hard work and usually, it’s one person doing it.

Being agile means accepting that not all changes will immediately work. This was the case with our social media strategy.

We updated all of our term program social media posts and uploaded them to our intranet portal but less than a handful of franchisees used them. Ensure you don’t just provide the tools; franchisees need to have instructions on how to apply the tools. So, go back to basics and run webinars on how to use Facebook and Instagram. For those franchisees who don’t want to run their social media, take full control of their pages and post centrally for them.

When choosing a mobile or fixed site it’s important to understand that many of the sites do not have the infrastructure to run an online system. This often means there will be an upfront investment in computers and internet access and presents logistical challenges for mobile franchises that share

We’ve also harnessed the expertise that exists within the franchise. I implemented a Franchise Advisory Council and the representatives are senior franchisees who have significant standing in our network.

Don’t underestimate the power and knowledge within your team.

Recognise your challenges

To reap the rewards of being agile, you have to take risks. I had no certainty that the changes I was making would work. I often had to act outside of my comfort zone. My default is to be careful and considered, but that is not how I have been operating since becoming CEO. I’ve been lucky to have mentors to assist me along the way and I’ve found the franchise community willing to share and help me grow.

The attractiveness of franchising is that the product or service can change, but as long as the franchise has a solid foundation, it’s never too late to go back and build up the business again. A family-run franchise needs to recognise when it’s time to commercialise and get external help, especially if they’ve been around for a long time and need help adapting to the digital age.

Beth Pocklington is the Chief Executive Officer at GymbaROO. Beth is an experienced franchise operations professional with a career of more than 10 years in the industry across health and fitness, food retail and allied health systems.

GymbaROO is an iconic brand that has provided amazing neuro-developmental programs for children for more than 35 years. Everything we do at GymbaROO is about ensuring that each child has the opportunity to lay the crucial foundations for later learning and fostering the normal sequence of development appropriate to each child’s stage of development. www.gymbaroo.com.au

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“The attractiveness of franchising is that the product or service can change, but as long as the franchise has a solid foundation, it’s never too late to go back and build up the business again.”

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e x pert adv i c e

The only 4 things you need to know about

marketing your franchise business

58 Business Franchise Australia and New Zealand

“All marketing activities must work towards building brand value. Brand value is the collective sales advantage founded on the speed of which your brand comes to the customer’s mind and purchasing hand during the critical buying moment.”

Troy McKinna | Co-Founder | Agents of Spring and Calm & Stormy

Purchasing decisions are made quickly.

According to Daniel Kahneman, 97 per cent of decisions are system one, that is they are unconscious, automatic and effortless.

Picture the simple but every-day challenge of deciding what’s for lunch. As you walk out of the office, someone asks ‘what’s for lunch?’

Easy enough question, but there are so many options, how to decide? What’s the criteria?

Do you want something tasty or healthy, takeaway or sit down, is it a hot or cold day, do you want something light or something hearty?

In this and every decision, brands offer a short-cut for customers decision making.

As business owners we would like to think customers consider all options and make a rational decision, but the reality is they make fast, emotional decisions. Today I feel like a burrito. A strong brand connects the customer problem with a compelling solution. Providing rich experiences and embedding strong memories ensure it is recalled faster than the competition.

All marketing activities must work towards building brand value. Brand value is the collective sales advantage founded on the speed of which your brand comes to the customer’s mind and purchasing hand during the critical buying moment.

Behind every strong brand are 4 simple foundations.

Find customer problems What problems will customers pay you to solve for them? The first foundation to building a brand is identifying a deep human insight that motivates customers to buy. It is easier to find something customers are internally motivated to act on, rather than trying to convince them.

There are 3 key elements to a motivating insight:

“The first foundation to building a brand is identifying a deep human insight that motivates customers to buy.”

1. A contextual fact about how people behave or what they are doing.

2. A functional, social or emotional need that are looking to satisfy.

3. A problem, frustration or challenge that stops them from satisfying the need.

busy to decode your corporate jargon and will struggle to remember the offer in the critical buying moment. To make your product or service sticky you must articulate the benefit it delivers in customer language, with a distinct reason to believe.

Design solutions

A benefit ladder is a tight articulation of your product or service solution. At the bottom are the features that set your brand apart from the competition. These features ladder up to deliver a functional benefit. What does it do for the customer? Functional benefits in turn ladder up to deliver emotional benefits.

How does the customer feel once they have experienced your product or service?

Can you articulate your solution to customers problems in a motivating and meaningful language? Customers are too

The best benefit ladders are single minded.

Snickers is packed full of peanuts, which fills you up and helps you feel satisfied or

The Grill’d burger chain have identified that people like to escape the office because they want to eat something tasty for lunch, but it can’t be unhealthy or make them feel sick after eating. They exist to solve the tension for customers between healthy and tasty.

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If you operate in a competitive industry you need a strong brand to thrive. Adults make approximately 35,000 decisions a day. The reality is, customers are time poor and deciding what to buy is just another decision in their day.

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“The average adult is exposed to 5000 messages a day. To cope, the brain has a filter keeps most of messages out. It’s like a bouncer that decides what messages to let in and what to reject.”

Snickers really satisfies. The biggest trap to avoid is being all things to all people. A failed local restaurant thought they could successfully offer pizzas, tacos, seafood and curries. Customers were confused and the venue went out of business.

Sell experiences How does your sales environment create a memorable experience for customers?

The retail world is going through a large consolidation; the retail apocalypse. Average retailers are getting squeezed out of the market. On one side are the low-cost price dealers and on the other are the experience providers.

Each store is architecturally designed.

Shoppers are offered green tea. Ambience and aromas add to the entire experience.

Embed memories How is your brand embedding memories in your customers minds? You may own the trademark for your brand, but the true value of your brand sits in the minds of your customers; the memories and associations about your brand.

The key is to map the service journey through the eyes of your customers. What points in the journey represent opportunities to delight and what are the biggest pain points that need addressing?

The average adult is exposed to 5000 messages a day. To cope, the brain has a filter keeps most of messages out. It’s like a bouncer that decides what messages to let in and what to reject. Getting past the bouncer involves telling an engaging story. Strong brands have a consistent tone of voice, a clear message about what they stand for and against and a platform expertise to broadcast the message.

Science shows engaging more than one sense can improve memory recall. Aesop stores offer an amazing luxury skin care experience.

KFC’s tongue and cheek campaign ‘shut up and take my money’, is a great example of a brand amplifying its voice in an engaging

60 Business Franchise Australia and New Zealand

way in an advertising channel that they clearly know how to execute in.

Great marketing builds brand value by mastering four foundations. Does your business know the problem you solve for customers? Can your business articulate solutions in a meaningful and motivating language? Are the solutions sold as part of an amazing customer experience? Are you consistently building memories in customers’ minds?

Troy McKinna is an entrepreneur and brand building specialist. He is the cofounder of Agents of Spring and Calm & Stormy. A sought after innovation consultant, facilitator and speaker who helps senior leaders and teams build customer-led growth strategies. He is also the author of Brand Hustle – 4 critical foundations to accelerate brand growth.

For more information go to: www.agentsofspring.com.

Since

1920 A global leader in tools & franchising

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PR O FI L E : clark rubber

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

62 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 Selena Vance at: Phone: 03 8727 9999 Email: selena.vance@clarkrubber.com.au www.clarkrubber.com.au

BUILD YOUR FUTURE BUILD YOUR FUTURE WITH A RETAIL ICON WITH A RETAIL ICON

AsAsone oneofofAustralia’s Australia’siconic iconicretail retail brands, brands, with with a aproud now proudhistory historyover overthe thepast past 70 70 years, years, we we now have have6060stores storesnationally. nationally.Our Our award award winning winning franchise model commenced in 1995 and franchise model commenced in 1995 and offers offers a avibrant a great great vibrantproduct productrange rangeproviding providing you you with with a platform to start your own successful business in platform to start your own successful business in the thepool pooland andspa spaindustry. industry.

Ourindustry industryknowledge knowledgewill willhelp help you build a strong Our you build a strong business,becoming becomingthe thelocal localpool pool specialist business, specialist in in yourterritory territoryand andhelping helpingyou youwork work a lifestyle your in in a lifestyle environment. environment.

Ourfranchisees franchiseesbenefit benefitfrom: from: Our

Our Ourbusiness businessdevelopment developmentand and support support teams will willassist assistyou youininbuilding buildingyour your successful successful business. business.

Wehave havethree threeexciting excitingfranchise franchise models models where We we are looking for new, motivated and business business we are looking for new, motivated and orientatedfranchisees franchiseesfor: for: orientated ClarkRubber RubberLarge LargeFormat Format Retail Retail Stores • • Clark High Investment High Investment

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Groupbuying buyingpower power Group Effectivenational nationaland andlocal local Effective marketing marketingstrategies strategies Business && advice Businessdevelopment developmentsupport support advice Site Siteselection selectionand andlease lease negotiation assistance negotiation assistance Ample Amplegrowth growthopportunities opportunities Multi store owner program Multi store ownerdevelopment development program

ClarkRubber RubberPool Pool&&Spa Spa Shops Shops • • Clark Moderate Investment Moderate Investment ClarkPools Pools&&Spas SpasOnsite Onsite • • Clark CareTerritory TerritoryVans Vans Care Low Investment Low Investment

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If you would like to hear more about franchise opportunities in your area, please contact the If you would like to hear more about franchise opportunities in your area, please contact the Network Development Manager for a confidential discussion on (03) 8727 9999 office or mobile 0400 922 493.

Network Development Manager for a confidential discussion on (03) 8727 9999 office or mobile 0400 922 493.

clarkrubber.com.au clarkrubber.com.au

Business Franchise Australia and New Zealand 63

e x pert a dv i c e

Selling your franchise or coming to the end of your term ‘And now, the end is near, and so I face the final curtain…’ Was Frank thinking of franchisees when he sang that song?

“The very first rule is plan, plan and plan. Get expert franchise specialist legal advice and discuss the proposed sale or exit with your accountant before you engage a broker or go to the market.”

Robert Toth | Partner | Marsh & Maher Richmond Bennison

The process of exiting a franchise after many years, whether coming to the end of the term or selling along the way can be an anxious and stressful process.

Selling a business is not an easy task and there are many tricks and traps you need to be aware of.

There are contractual obligations under the franchise agreement, rights and obligations under the Franchise Code and many practical steps that need to be taken.

Selling a franchised business is generally far more complex than the sale of a stand-alone business.

The very first rule is plan, plan and plan.

Get legal advice from a franchise specialist and discuss the proposed sale or exit with your accountant well before you engage a broker or go to the market.

So, let’s look at the main issues.

The parties: There are several parties involved, which makes the process more complex: • There is the franchisor and their lawyer.

• The landlord, centre managers, agent and their lawyer.

• The purchaser’s lawyer.

• Banks and finance companies, who may hold security interests or leases over the vendors assets.

That’s a considerable number of people to coordinate and deal with for one transaction and some may be more cooperative than others.

The lawyer’s role for a vendor: Our role for a franchisee selling their business or exiting a franchise is to advise and support the sale process which includes: • Advice on the contractual rights and obligations; • Confirm the process and costs of assignment or transfer of the business;

64 Business Franchise Australia and New Zealand

• ensuring all liabilities are paid, tax issues identified, security deposits released; • securing the release of personal guarantees; • Coordinate and guide the parties towards a successful outcome- settlement!

The more you plan and seek advice before you make the decision to exit and sell, the more likely it is that you will achieve a successful outcome.

Your lawyer should work hard to be cooperative and active and engage positively with all parties and their lawyers, as everyone is working towards a common goal.

“The more you plan and seek advice before you make the decision to exit and sell, the more likely it is that you will achieve a successful outcome.”

It is, in a sense, a project management and coordination role which does need experience and expertise.

There is method to the process and you do need to know what steps should be taken at the right time believe it or not!

Landlords, purchasers’ lawyers and shopping centre managers and agents can sometimes be difficult or unreasonable as they are not driven by the same motivation as someone selling or exiting a business.

The lawyer’s role is to keep things moving and communicate with the parties involved follow people up, and keep you informed!

Be prepared Be prepared for a prospective sale to fall through as it can and often does happen. As frustrating and costly as it is, this often occurs due to matters beyond anyone’s control.

The landlord may withhold their consent to transfer of the lease to the buyer, the franchisor may not approve the incoming franchisee, the buyer’s finance may not be approved, or the buyer withdraws following its due diligence or during the 14-day disclosure or cooling off periods.

Be prepared for the settlement date to blowout due to delays in obtaining consents and documents that need to be circulated, approved and signed.

compete (restraint of trade provisions) in the agreement against the franchisee. There are some pre-conditions to this – for example, the franchisee cannot be in default.

Delays in settlement are not uncommon.

This is a significant issue for franchisees as it may enable a franchisee at the end of their term to continue operating a similar business, provided you do not infringe the franchisor’s confidential information, nor use their brand.

End of term The Franchise Code amendments, which came into effect on 1 January 2015, altered the rights and obligations between franchisors and franchisees coming up to the end of the franchise term.

This applies when there is no option under the agreement.

There is no obligation under the Code or at law for a franchisor to offer a further term to a franchisee when the franchise term simply comes to an end.

The amendments provide under clause 23 of the Code that if the franchisor does not offer a further term to the franchisee (which can be by extending the existing term or grant of a new term) substantially on the same terms where the franchisor does not offer “genuine compensation” for the franchisee’s goodwill after the franchisee requested the extension the franchisor cannot then enforce the non-

The golden rules to selling: Rule 1: Speak to your accountant and lawyer well before you decide to sell. Proper advice and planning will help the process and hopefully get you a better price! Get tax advice before you sign off, and legal advice before you even sign a head of agreement or sale agreement prepared by an agent or broker to ensure all relevant issues have been addressed.

Rule 2: Get advice from experienced franchise lawyers who are members of the Franchising Council of Australia (FCA) – a local property lawyer won’t know all the tricks and traps to guide you through the sale process. FCA members are also governed by members’ standards following best practice guidelines.

Rule 3: Don’t expect help from the franchisor

Business Franchise Australia and New Zealand 65

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if selling or exiting, particularly if you are in breach or owe them money.

Rule 4: Make sure your house is in order and your financials are up to date; ensure that you have recent management accounts for your agent/broker and the buyer, and that your key agreements, such as your lease, supplier agreements, licenses and permits are current.

market during that period and you could miss out on another buyer who has the funds readily available.

I generally recommend to my clients if there is an offer subject to finance, it is better to suggest the buyer gets their finance approval first, and then we enter into unconditional contracts.

Rule 5: Read your franchise agreement (or get your lawyer to) on the obligations when you sell: for example, is there a first right of refusal to the franchisor?

Rule 9: Be patient and part of the process.

What are the transfer fees to the franchisor, so you can factor them into your sale price? Don’t forget you will have to pay the landlord’s lawyer or agent’s fees to approve the incoming franchisee, which can be costly.

In summary:

Rule 6: Don’t sell the business to someone you have no confidence in. Why? It may come back to you if they default and if you don’t have confidence in them, is it likely the franchisor or a landlord will approve them?

Rule 7: Avoid offering vendors finance to the buyer or deferred payment terms- this can be a recipe for disaster if the buyer makes a mess of the business.

Rule 8: If possible, don’t accept offers ‘subject to finance’. Why? You may incur substantial legal and accounting costs only to find the buyer didn’t get their loan approved – or they got cold feet and used the loan as an excuse to bail out. Also, the business will be off the

Rule 10: Be patient it is a difficult process and there are bumps in the road!

• Plan to sell your business and get your financial house in order before you go to the market.

• Seek early advice from your franchise lawyer and accountant well before you go to the market to establish your sale plan and identify costs.

• Ensure you have your documents in order, up to date and available – including employment records, material contracts, licenses, permits, lease documents and financials – to enable the buyer to undergo their due diligence efficiently.

• Don’t accept the first buyer that comes along! Do your due diligence on the buyer, just as they will do their due diligence on you.

• Be prepared for disappointment – it often

66 Business Franchise Australia and New Zealand

takes two or three attempts before you find a buyer that sticks.

• If you don’t think the buyer is suitable to operate the business, it is unlikely that the franchisor or landlord will.

• If possible do not accept an offer subject to finance particularly in the current tight lending market.

• If you do have to offer vendor’s terms what security will you hold and are you prepared to go back into the business if the buyer defaults?

By considering these issues before you sell your franchise or look at exiting you could save yourself considerable time, costs and disappointment.

Robert Toth is a Partner of Marsh & Maher Richmond Bennison Lawyers, with over 35 years’ experience in franchise law and general commercial advice. He is an Accredited Business Law Specialist and Member of the FCA & IFLA with expertise in franchising, licensing and distribution and franchise dispute resolution (acting for both international franchisors and franchisees). Contact Robert and the Franchise team at Marsh & Maher Richmond Bennison: 03 9604 9400 robert@mmrb.com.au www.mmrb.com.au

SPEED QUEEN LAUNDROMAT OWNER HARD AT WORK The hardest part of owning a Speed Queen self-service laundromat is deciding how you will spend your “work� day.

If you are looking for a truly passive income with an excellent UHWXUQ RQ LQYHVWPHQW JHW LQ WRXFK WR ÀQG RXW PRUH DERXW 6SHHG 4XHHQ ODXQGURPDWV

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www.speedqueenlaundromats.com.au

Business Franchise Australia and New Zealand 67

fo c us feature : speed queen

It all comes out in the wash As apartments grow smaller and the European style of laundry become more popular, owning a domestic washing machine and dryer isn’t as common as it used to be. Not to mention the expense and maintenance required.

Laundromats may seem like an old-fashioned idea, but in fact they are more in demand than ever.

“We’re following the trend that happened in America 15 years ago where self-serve laundromats became more and more popular,” says John Cameron, director of Speed Queen Equipment Sales.

“In fact, laundromats are almost the perfect business opportunity – cheap rent, no staff, potentially cashless and capable of being run remotely. You don’t need a primary high street or mall site – provided there’s plenty

of parking available, a far less glamorous and much cheaper site is ideal.

The only human requirement is a cleaner, and some owners like to do that themselves.”

“The crux of the matter is site selection, and we have done a lot of research around that.

Owners and investors have come to us on occasions with a site we consider bad, and we don’t hesitate to say keep looking. After all, it’s a near-perfect model for passive income and we have no desire to spoil it.”

Cashless operation Speed Queen was founded in 1908 and the company is the oldest and largest manufacturer of commercial laundry equipment in the world. The company also leads the market with technology – something that has made Speed Queen an even more attractive proposition for an owner or investor.

“We’ve done all we can to make this a pretty turn-key business and will hold your hand right the way through the process.”

68 Business Franchise Australia and New Zealand

The company has been operating in Australia for over 50 years, and recently introduced the cashless operation. “For years, the need to take coins was the Achilles heel of all vending operations, but times have changed,” John explains, “Now we have our own cashless technology which ensures all standard cards are compatible with the machines, so we can offer clients and investors a completely cashless operation.”

“Laundromats are almost the perfect business opportunity – cheap rent, no staff, potentially cashless and capable of being run remotely.”

“Of the hundreds of Speed Queen sites, we now have many that are running completely cash free. It’s revolutionising the industry, has enabled many owners to operate entirely remotely, and there are no longer security issues from having cash on the premises.”

A solid investment Speed Queen is a solid investment from another aspect, too, says John, “Some people have found the weak link in this industry to be the machines themselves, however, being American, Speed Queen machines are basically indestructible.” The Speed Queen machines will work reliably day after day for a huge 15-20 years on average! This kind of robustness can only be obtained by extensive testing.

Machines are regularly put through the wringer at the factory in Wisconsin where they are tested with foreign objects inside, such as hockey pucks. “I’m not sure if that’s a common loading mistake in North America, but I can tell you that you need ear-plugs if you are in the testing room with one of those going round and round and banging against the inside of the machine for weeks on end” says John.

owns two. Some convenience store owners put together a deposit and opened one next door to their shop, increasing traffic to both.

A group of executives in their 20s realised they could have a money-earning side-line without interrupting their careers and set up a store.”

“Really, the concept will work for anyone prepared to put in a bit of effort and some initial legwork who can raise about a 30 per cent deposit,” says John.

Business appeal

So how much is that 30 per cent? A mediumsized investment will be between $250,000 and $300,000, with a deposit starting from $60,000, John says, “The return on the total investment is in the region of 20-30 per cent and we’ve had some owners do much better than that!”

Reflecting on the appeal of the business model, John says that Speed Queen laundromats attract a broad range of investors, “We have a retired CFO who wanted an interest and some passive income and he now

“Operation really could not be easier. We’ve done all we can to make this a pretty turn-key business and will hold your hand right the way through the process. We can offer a great financial package and won’t let you go ahead

until you have the fundamentals right – site selection, demographics and parking. We’ll help with all the essential council regulations and after that, the process should be very quick – open the doors and your business is ready-to-go with as much involvement from you as you choose. Such is the quality of our technology, you could theoretically live in Noosa, and run your business in Adelaide without ever visiting the place,” says John.

If you’re looking for a passive investment, it’s worth investigating Speed Queen. We’re looking to hear from anyone who has the desire to build a successful business in any part of the country. I can guarantee we’ll support you every step of the way so, whatever your situation, give us a call on 1300 WASHER (927 437) to talk to your local representative. invest@speedqueensales.com.au www.speedqueenlaundromats.com.au

Business Franchise Australia and New Zealand 69

PR O FI L E : flip out

Be a part of the

Flip Out global success story Flip Out boasts Australia’s largest network of entertainment and indoor trampoline parks and offers potential franchisees the opportunity to enter a cost-effective streamlined business model with a large footprint across Australia.

Flip Out is leading the way with entertainment centres across Australia and New Zealand. You can find Flip Out in all Australian major cities with potential sites in planning stages available across Melbourne, Sydney, Brisbane, Perth, Adelaide and Hobart.

Invest in an experience that brings people of all ages together in a fun, safe and adrenaline filled environment.

Flip Out offer an end-to-end solution for potential franchisees with initial business planning, assistance with finance, building

Flip Out’s target customer market is allinclusive and includes fun activities for children of all ages, teens, young adults and parents. The arenas are jam-packed with activities for everyone aged from two years and up offering trampolining, multi-level soft play for the little ones, ninja warrior courses, climbing, slippery dips, parkour and more!

locations available across australia

70 Business Franchise Australia and New Zealand

design, site selection and construction all the way through to opening day! With on-going training and support provided you don’t need prior industry experience to own a Flip Out franchise. Flip Out continually invests in research and development and provide franchisees the tools and support they need to make their business a success.

Flip Out is more than a business, now is the time to jump on this opportunity!

Visit Flip Out at the Franchising & Business Opportunities Expo in Melbourne on August 24-25 or visit www.flipout.net.au/join-the-flip-out-squad to register your interest.

come see us at the Melbourne Franchise Expo 0438 882 275 | sue@flipout.net.au | www.flipout.net.au

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ZERO INCIDENTS:

ten tips to work towards a ‘risk free’ workplace Arriving at zero incidents should be the goal of every workplace.

But how realistic is it to believe zero incidents can be achieved? And what are the costs and benefits of aiming for that outcome?

Workplace incidents cost franchisees in many ways, including loss of valuable staff members, high insurance premiums, and potential fines by state regulators.

Franchisors, whilst generally not affected by workers compensation premium increases where incidents occur in franchisee workplaces, still suffer when workplace incidents occur. A loss of brand reputation where franchisors are found to have been to blame for workplace incidents occurring

through a lack of proper systems severely impacts the bottom line. That loss can also make it harder to attract new franchisees, and the franchise company and its directors can be fined or even jailed if safe work investigators find fault after a serious incident in a franchisee workplace.

So, finding ways to work towards zero incidents should be a shared goal for both the franchisor and franchisee, given the effects of incidents can have a serious impact on both.

Safety Navigator provides cloud-based health and safety systems to thousands of franchise businesses, and we often get asked for advice on what can be done to reduce or remove the risk of an incident occurring altogether. So, we’ve come up with a list of ten tips we’d like to share here.

72 Business Franchise Australia and New Zealand

1

Commitment - get everyone in the organisation on board

This may seem obvious and possibly very difficult to achieve, but when every person in the organisation is committed to a safe and healthy work environment, morale will be boosted, productivity will be increased, and customers will notice. The commitment must start at the very top - directors, and CEOs need to publicise their intention to commit to safety. A way to do this is to produce a clear, concise (possibly only one page) health and safety policy statement, signed by those people at the very top of the organisation. We’ve even seen this message communicated in the form of a video. However this message is conveyed, it shows everyone else how serious health and safety needs to be taken.

2

Training

Again, this may seem obvious, but we’ve seen many instances where staff working at franchisee locations simply are equipped to perform the work their role entails. Creating a training plan to identify training needs is a vital step in ensuring staff have the skills to be able to do the job required of them. A good place to start is by asking staff what training they think they may need. Again, we’ve seen some franchise organisations train their staff by filming a worker undertake the job, then distributing that film and a short questionnaire for all staff to review in their own time.

3

Reward

We’ve seen first-hand how rewards can assist in motivating an organisations’ people to help to reduce incidents. One franchise organisation client of ours rewards key contributors to health and safety on a quarterly basis by gifting travel vouchers and gold class movie tickets. They promote these initiatives through their intranet.

4

Immediate Action

5

Feedback

Where hazards are identified or incidents do occur, immediate action is required. The first few hours after the event are critical and promoting immediate action throughout the organisation further demonstrates to all the level of commitment, which further assists in preventing future incidents.

Ask for input from every stakeholder in the organisation, not just staff. Ask customers, suppliers, and franchisees for their ideas on improving health and safety and promote that feedback to all.

6

Teachable moments

When hazards and risks are identified, franchise organisations need to do more than action the controls. Use these hazards as a learning experience for all. This helps all workers become more alert and sensitive to the potential risks of the job.

7

“Finding ways to work towards zero incidents should be a shared goal for both the franchisor and franchisee, given the effects of incidents can have a serious impact on both.”

Take Charge

Franchisors should work closely with franchisees to set high importance on setting a good example and following health and safety procedures without question. An example is ensuring the franchisee wears the correct PPE. Franchisees should also be trained to lead efforts in identifying hazards and controlling risks.

Chris Beasley | Managing Director | Safety Navigator

8

Incident Prevention is Ongoing

Health and safety is never ‘finished’.

Franchisees should run regular workplace inspections to identify hazards. They should also review the risk register regularly to ensure the same hazards aren’t appearing again and again. Using a health and safety management system is crucial in having this data in an organised way.

9

Set Standards for Performance

Ensure all in the organisation have access to the group health and safety policy and procedures manual and that franchisees have a health and safety noticeboard in their workplaces, displaying the key policies from that manual.

10

Involve Workers

An example of this was found in one of our franchise group clients where Franchisees assign their workers the responsibility of recording the monthly workplace inspection. Every worker is given a turn in conducting this crucial activity and with that ‘ownership’ you start to see a reduction of hazards and a reduction in workplace incidents.

Why not give it a go?

According to the Safe Work Australia, there were just over 106,000 incidents last year resulting in serious workers compensation

claims, where workers were badly injured and missed work (or will never return). The most common cause of these workers compensation claims was body stressing (33 per cent), followed by slips, trips and falls (24 per cent).

In the franchising sector, there were just over seven incidents leading to serious workers compensation claims for every 1,000 workers - or to put it differently, on average, every franchising group in Australia would experience just over two serious workers compensation claims every month.

And each of those incidents has the capacity to affect not only the injured worker but can cost the franchise group (and its officers/directors) millions of dollars.

So, whilst it may take time, and cost some money to implement a strong health and safety system in a franchise group, not doing so will inevitably cost so much more.

And in terms of cost, we’ve found that many of our franchise group clients install a ‘safety levy’ into their franchise agreements.

This means that the franchisee, not the franchisor, pays the cost of implementing and maintaining a health and safety management system. And because of the economies of scale, we’ve found that the cost of the safety levy to the franchisee is around 75 cents per day Safety Navigator delivers cloud-based safety systems and support to thousands of Australian and New Zealand businesses, reducing the number of workplace incidents by simplifying compliance. www.safetynavigator.com.au

Business Franchise Australia and New Zealand 73

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What can franchisors (and franchisees) do to

reduce the risk of franchisee insolvency?

“Reducing the risk of franchisee insolvency and in turn franchisor insolvency is of significant benefit to the system and society.”

• A franchisee is nearly twice as likely to go bankrupt if at least one other franchisee within the same franchise system has gone bankrupt in the previous year.

• Franchisor insolvency is five times more likely to increase franchisee insolvency than when there is no franchisor insolvency.

According to the Australian Securities and Investments Commission, 8,044 Australian businesses filed for insolvency in 2018.

People exploring new franchise opportunities typically consider various aspects including: the strength of the franchise brand, management expertise, and experience in franchising. Yet, franchisee insolvency is not an area likely to be evaluated.

While franchisee insolvency can be attributed to poor management of the franchised outlet, franchisor mismanagement can also cause this insolvency.

As an expert, I have conducted research in the area of franchising for over 10 years and I encourage franchisees and their franchisors to assess the risk of insolvency.

Along with my colleagues Professor Kersi D. Antia (Ivey Business School, Canada) and Professor Kenneth H. Wathne (University of Stavanger Business School, Norway), we analysed over 1100 US franchisors over a 10year period, and we believe there are ways to reduce the risk of insolvency.

Both franchisors and their franchisees are joined at the hip. Understanding this is critical, as the success (or failure) of one has a direct impact on the success (or failure) of the other. Based on the research, it can be said that:

74 Business Franchise Australia and New Zealand

• Franchisors do ‘feel their pain’, as evidenced by a 54 per cent increase in the odds of franchisor insolvency for a unit increase in franchisee insolvency.

So, the fundamental question that emerges is: what can franchisors (and franchisees) do to mitigate this risk of franchisee insolvency?

From our research, we identify four recommendations for franchisors and their franchisees.

Offer incentives to franchisees Franchisors can offer various incentives to encourage franchisee performance. These incentives are designed for franchisees to engage with the franchise brand. Franchisors may offer franchisees an opportunity to open additional stores, enabling franchisees to gain greater benefits from their efforts in the local market. Other incentives could include a lower initial fee to open additional outlets.

Successful brands may have longer contract terms that provide greater stability and opportunity for the franchisee to invest in the brand.

Incentives help significantly reduce the risk of franchisee insolvency. Franchisors should provide incentives for existing franchisees to open additional outlets, to mitigate the risk of franchisee insolvency and in turn franchisor insolvency.

Find the right franchisee and then support them Franchisor selection criteria should include the business and industry experience of the franchisee, formal education, and financial net worth of potential franchisees. Franchisors also engage in various support activities such as providing field training, opportunities to interact with other franchisees through regional and national meetings to support the franchisees.

Franchisors that select the right franchisee and then support their franchisees to be an integral part of the franchise system can decrease the risk of franchisee insolvency.

When looking for new opportunities,

“Both franchisors and their franchisees are joined at the hip. Understanding this is critical, as the success (or failure) of one has a direct impact on the success (or failure) of the other.”

Dr Sudha Mani | Senior Lecturer | Monash University

franchisees should consider the upside of a franchisor’s stringent selection criteria.

The stringent selection criteria suggest that franchisors are not rampantly growing the franchise network by sacrificing franchisee quality. Able franchisees with financial and managerial capabilities are the cornerstone of franchisor success.

However, merely selecting the right franchisees is not adequate. This should go hand-in-hand with franchisors’ ongoing efforts to support the franchisee through formal training and informal social opportunities. A note of caution here, beware of franchisors that provide on-going support without any franchisee selection criteria.

The on-going support though beneficial to

franchisees and the system, can be costly.

So, franchisor efforts to provide this support without stringent franchisee selection criteria can be burdensome to the system and can actually backfire.

Franchisor involvement through company-owned stores and incentives to franchisees Franchisors that operate a sizeable proportion of company-owned stores are better able to monitor their franchisees’ efforts. These franchisors also have a good understanding of the local market. They can clearly identify any franchisee missteps, as they understand the challenges of managing the outlets. But,

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monitoring alone can be costly to the system and we don’t find evidence that it reduces the risk of franchisee insolvency.

Instead, we find that monitoring along with the incentives provided by the franchisor to the franchisees reduces the risk of franchisee insolvency. When incentives are offered along with monitoring, the franchisees don’t feel burdened by the hands-on involvement of the franchisor. By considering the potential gains of a larger market share and an opportunity to open new stores, franchisees are better able to benefit from franchisor monitoring.

“Even though the franchise disclosure document doesn’t provide any information on franchisee insolvency, franchisees should ask franchisors information on franchisee insolvency, before they sign on the dotted line.”

Franchisees may be de-motivated to invest effort when franchisors charge high royalty rates. However, when franchisors can actually monitor the behaviour of franchisees, the franchisees are unable to reduce their efforts.

criteria and also provide on-going support to their franchisees.

Franchisees should evaluate the incentives offered by franchisors, along with their efforts to monitor the system and the royalty rates.

Summary recommendations for franchisees

Reducing the risk of franchisee insolvency and in turn franchisor insolvency is of significant benefit to the system and society.

High royalty rates are usually considered a red flag by franchisees. However, franchisors can reduce the ill-effects of high royalty rates, by investing in franchisee monitoring.

In conclusion, even though the franchise disclosure document doesn’t provide any information on franchisee insolvency, franchisees should ask franchisors information on franchisee insolvency, before they sign on the dotted line.

Dr Sudha Mani is an expert in the area of governance of franchisor-franchisee relationships. She is a Senior Lecturer at Monash University. The Parliamentary Inquiry on franchising has cited Sudha’s recommendations.

Based on the findings of our research, franchisors that charge high royalty rates are better off doing so when they also engage in monitoring of their franchisees.

Franchisees should also pay particular attention to franchisor selection criteria and the support franchisors provide. Pick franchisors that have stringent selection

Franchisor involvement through company-owned stores and royalty rates

76 Business Franchise Australia and New Zealand

For further information or to discuss franchising, Sudha can be reached at: Sudha.mani@monash.edu www.linkedin.com/in/sudha-mani2648666

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Unleashing the franchising taskforce: How you can prepare your business as a first timer

If you are eager to buy into a franchise business, now is the time to prepare for major legislation changes potentially set to shake up the industry.

Following the sector’s turbulence and bad press in recent years, the Federal Government announced plans earlier this year to launch a taskforce in an effort to combat the systemic issues that appear to be plaguing the industry.

Bennett & Philp’s franchising law expert Spencer Slasberg said he is looking forward to seeing what, if any effects on the industry the implementation of the taskforce will have on franchisors and how effectively the taskforce will be able to enforce the codes and regulations that are currently in place.

“The current codes and regulations have been revised and updated periodically over the last 15 years to very little effect, and I believe that is more an issue of enforcement rather than quality of the regulation,” Mr Slasberg said.

“It’s strongly recommended to invest in professional legal and accounting advice very early on to find out what your financial position actually is and what it is projected to be in the first 24 months.”

Spencer Slasberg | Franchising Law Expert | Bennett & Philp

“For too long, it has been left to individual business owners to try and enforce their rights through private litigation and that can be an expensive and daunting process for young punters.

“I am hopeful that these changes will also provide businesses with clear and transparent guidelines to avoid any wrong-doing due to ambiguity.

“One major call to action in respect of this taskforce will be the treatment of employees in the franchises, so it is important for businesses to ensure all employment contracts

78 Business Franchise Australia and New Zealand

are compliant and rights are being properly implemented.

“Franchisors should be alert and reflect best practice standards by consulting with their lawyer and continually reassessing their business operations and standards, guaranteeing they are all above board and avoiding any malpractice in the workplace.”

Navigating through legislation, regulations and the common pitfalls of fledgling businesses can be complex, so we sat down with Mr Slasberg who shared his top tips that budding business owners should consider before setting up a franchise.

“You will only get out of your business what you put in. Work hard and put effort into your business and your staff early on, and the business has a better chance of reaching ‘critical mass’ and being sustainable.”

“A franchise does not teach you how to run a business. Good franchisors may offer mentoring and training sessions on the brand and systems, but without some basic business skills, novice punters are bound to struggle.”

Learn the basic skills of running a business People who wish to start their own business but are hesitant because of their inexperience, often turn to franchises as they view them as well-established companies that would offer support. This is not the case. A franchise does not teach you how to run a business.

Good franchisors may offer mentoring and training sessions on the brand and systems, but without some basic business skills, novice punters are bound to struggle. Undertaking further studies, such as a Diploma of Business, may help you gain a better understanding of what you’re getting yourself into.

Do your research Franchisors will provide you with an encompassing amount of material and information to read prior to signing a contract. Make sure you read the material provided in great detail as it is your best chance to get a snapshot of the business and find out if you have any further enquiries before committing to the investment. Further, ensure you research the proposed location to view foot traffic, peak times and competitors.

Seek professional advice The disclosure material you receive as part of your due diligence will contain financial information about the business. It’s strongly

recommended to invest in professional legal and accounting advice very early on to find out what your financial position actually is and what it is projected to be in the first 24 months. This is where most young businesses fail, because people do not receive enough guidance on what their cashflows are going to be until they establish themselves. While many only account for the initial costs, they don’t consider what life will be like without any real income until the business gets off the ground.

Understand the franchise fee structure and ask questions A franchise that structures its fees based on a fixed percentage of your profits tends to be more committed to your success and confident of getting more money out of its successful franchisees. Franchisors that just charge a flat rate no matter how well or poorly your business runs may not have your best interests at heart. That’s not to say they don’t, but it does raise another question for you to ask.

often want to run their own business for the freedom it offers, time wise. Try and think of that freedom at least two years in advance.

You will only get out of your business what you put in. Work hard and put effort into your business and your staff early on, and the business has a better chance of reaching ‘critical mass’ and being sustainable.

Bennett & Philp is a leading provider of solutions-focused legal services to large corporates, small and medium enterprises and individuals.

Since founded in 1984, Bennett & Philp has grown to meet the changing needs of both Australian and international clients.

Its success has largely been achieved by the ability to develop and maintain close business relationships with clients and deliver tailored solutions specific to business needs.

Stay committed and prepare to work hard

Bennett & Philp provides personalised service across five core areas of specialisation: business advisory services, commercial litigation, intellectual property, real estate and personal legal services.

Learn the company’s values and their goals and get behind them. You do not buy into a franchise to assert your own ideals. Chances are, you have seen something in a franchise business that connects with you. People

For more information and tips on buying into a franchise, Mr Slasberg’s Survival Guide can be found here: www.bennettphilp.com.au/blog/lawyerssurvival-guide-franchisees

Business Franchise Australia and New Zealand 79

snaps h ot: FC F Fire & Electrical

FCF Fire & Electrical wants you!

Franchisees and employees all receive full training and support. ‘Our training goes above and beyond what is state-legislated, and our ongoing training makes the team at FCF one of the best,’ Mr Foster says. The company has a friendly and professional culture and believes in its core values of good people, family, an honest work ethic, and a willingness to be the best.

It’s an attitude that is working well for the company and for their clients. ‘FCF have been providing fire equipment servicing and Test & Tag services to our company for nine months,’ one testimonial reads. ‘What began as a solution to a problem in North Queensland has quickly evolved into a solid working relationship down the eastern seaboard of Australia.’

Nothing is more important than safety. And when it comes to protecting Australian businesses from fire – for their staff, customers, property or family – FCF has the right services, products and advice.

This type of recurring work enables franchisees to develop an ongoing relationship with their clients. ‘If I pick up a new client, within six months I’m guaranteed to see them again,’ says Mr Foster. ‘The safety industry isn’t going anywhere, and it’s an industry that creates its own work.’

FCF conducts fire safety assessments of home, office and industrial premises, and offers clients a complete fire protection service including supply, installation, testing, servicing and maintenance.

• Schools and childcare

Established in 2008 by founder and CEO Jacob Foster, FCF Fire & Electrical provides quality professional servicing and advice for business clients across the country. FCF is responsible for maintaining the fire, safety and electrical requirements of a national network of businesses to ensure that they meet government and industry standards.

Mr Foster came to the industry with a background as an electrician. ‘What appealed to me about the fire industry was the repeat work that comes from routine maintenance,’ he says. ‘We’ll go to a site and test a fire extinguisher, for example, and if it fails we replace it – then six months later we’re back again.’

FCF proudly serves over 6500 clients across Australia. While primarily a businessto-business service, they also work with residential clients. Business clients of FCF include: • Local councils • Health services • Fuel stations • Hotels • Retail stores and offices • Community organisations.

FCF was the first company to franchise in the fire industry, making it a true industry leader.

Since the first franchise in 2012, there are now 14 franchises operating in Australia – and they are seeking to expand. ‘The majority of our franchisees are tradespeople, but you don’t have to be an electrician or a plumber to own a franchise,’ explains Mr Foster. ‘With our training and the help of the FCF support team, we make it really easy to transition into the fire industry. Australia’s fire standards are very straightforward, which makes life easy for people who want to enter the industry.’

80 Business Franchise Australia and New Zealand

“The majority of our franchisees are tradespeople, but you don’t have to be an electrician or a plumber to own a franchise.”

FCF Fire & Electrical not only operates in capital cities, but also has a strong focus on regional areas. Given Australia’s large distances, having the right territory managers to provide services in these regions is key to the company’s success.

As the company grows in Australia, expansion ‘across the ditch’ is also on the horizon. This would be a natural next step for FCF. ‘New Zealand would be ideal for us, as the codes and standards there are much the same as Australia,’ says Mr Foster. For anyone interested in becoming a master franchisor in New Zealand, this could be the ideal opportunity to represent the growing brand internationally.

For prospective franchisees in Australia, FCF want to hear from you, regardless of your industry background or your location. ‘We are looking for franchisees anywhere in Australia, and I would encourage you to get in touch,’ Mr Foster says.

For more information on joining FCF Fire & Electrical as a franchisee, call 1300 375 884 or visit www.fcfnational.com.au

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Business Franchise Australia and New Zealand 81

PR O FI L E : franchising expo

Find the answers at the Franchising Expo

Anyone thinking about owning their own business will find plenty of answers to all their questions at the Melbourne Franchising & Business Opportunities Expo, to be held 24-25 August.

Exhibition Manager Fiona Stacey says it’s a matter of finding the right people to help you on your journey – be they franchisors, lawyers, consultants, accountants or other advisors.

“All those people are available at the Expo, and more than willing to answer all your questions,” she says. “Entering a franchise agreement is a serious business, and it is crucial to do your research. The Franchising Expo is a great place to start, or dig deeper into a concept you’re considering.”

Stacey added that the Melbourne Franchising Expo is typically the biggest show of the year and she is expecting over 100 exhibitors, including a contingent of companies from Taiwan.

In Brisbane last month, future franchisees were out in force checking out a huge range of business ideas.

“We’ve had a great day, with lots of positivity from visitors,” said Dean Jones from The Lott. “We are now looking forward to what Melbourne will bring!”

Inspiring franchising icon Jim Penman will be speaking as part of the free seminar program in Melbourne.

Chris Ryder from Mailboxes Etc. also had a great time at the show. “I’m here in Brisbane every year, it’s always a fantastic event,” he said. “This is my fifth Franchising Expo – I started out as an employee and now I’m an MBE franchisee.”

In addition to meeting exhibitors, visitors find

82 Business Franchise Australia and New Zealand

Reader specia l: Re

gister to visit any Fr anch ising E for FREE xpo at w w w.fra nchising expo.co m.au by using code BF M.

great benefits in attending the free seminars held as part of the show.

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

Other speakers include Victorian Small Business Commissioner Judy O’Connell, plus there will be panel sessions featuring franchisees and franchisors.

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

If you are interested in exhibiting, contact Fiona Stacey on 03 9999 5464 or email Fiona@specialisedevents.com.au

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Business Franchise Australia and New Zealand 83

e x pert a dv i c e

Franchise Pro Strategy Session This is how I, and my empire building candidates, approach a franchise expo.

If you came for the free food and souvenirs then you may not walk out with franchises targeted. If you arrived ready to do some quality work then game on!

Many expo attendees are more confused and less focused after attending than before. Here is how to avoid that: Before going to the expo do some soul searching about what you are good at and enjoy doing. This is less about the product and more about the tasks you would do daily.

Detail your ability and interest in: 1. Managing people, what kind of employees and how many – Consider white collar vs. blue collar staff and your comfort with each.

2. Selling, managing salespeople or networking to build business – Nothing happens until somebody sells something to someone.

3. Days and hours each week that you want to work.

4. The types of customers you want to serve.

5. Brick and mortar vs. service businesses.

84 Business Franchise Australia and New Zealand

• Your comfort with the possible higher startup cost in bricks and mortar.

• Your comfort in not working from the same desk all day in a service business.

• Your desire for variety in daily tasks.

• How close the owner’s role is to the level you achieved in the corporate world.

“Your goal will be to visit brands that fit you as an owner; those may or may not be the ones that fit you as a customer.”

George Knauf | my perfect franchise

• Multi-unit growth plans vs adding territory.

• Desire for Recession resistance.

• Comfort with fads, vs long term trends.

Once you have this personal outline you will have a rudimentary representation of what we build for our candidates and refer to as their model. This basic outline should help you plan your visit to the expo so that you get more value out of the experience.

Get a list of the brands that will be attending, preferably with a map of where each brand will be in the expo hall. With a highlighter, possibly multiple colors if you want to prioritise, highlight those brands that fit the outline you built. Your goal will be to visit brands that fit you as an owner; those may or may not be the ones that fit you as a customer.

There are countless brands that I am a raving fan of as a consumer that I should never own, you will likely find the same thing.

You may see various other service providers, just focus on the franchise brands for now.

Put together your list of questions that you will ask each vendor so that you can compare the answers across the pool of brands you talk to. Being able to do side by side comparisons is important in this process. Here are some questions I would not overlook: 1. The all in TOTAL estimated start-up cost 2. How long have they been franchising?

3. How many franchisees do they have?

4. Ask them about the areas important to your personal outline. Don’t compromise here, if they are not a fit then more on, you can’t “make it work” if their model does not fit you.

When you get to the expo pull out your map, start on one side of the room and mark off the ones you have visited as you go.

See that restaurant concept with the long lines waiting for free food samples? Are they on your list? If not then keep moving! Free food is like flypaper for attendees that did not plan their visit. In trade for the food sample you generally have to get your badge scanned which starts your phone ringing.

“See that restaurant concept with the long lines waiting for free food samples? Are they on your list? If not then keep moving! Free food is like flypaper for attendees that did not plan their visit.”

If you are genuinely interested in running that restaurant every day simply walk past the free food line and find one of their salespeople.

As you work your way through the list are you finding that the concepts that you thought would fit you are not?

There is no harm in stepping off the floor to retarget the booths you want to visit.

Remember this is not about being sold something; it is about finding your perfect match.

When you get home it is time to organise your notes on each brand and start considering how well they fit your personal outline. If a brand fits your outline, pulling together your notes is the beginning of your investigation.

Next steps would be to have an overview call with their sales team and get their Franchise Disclosure Document (FDD).

If you are visiting with an International

territory in mind or a special model like a master franchise or area developer, you can follow the same basic roadmap and add in your particular considerations. These investigations have many questions we would add particular to the candidate and their goal.

Most importantly, have fun and learn a lot.

George Knauf is a highly sought after, trusted advisor to many of the top franchise ownership groups in the world. With over 25 years of experience in both start-up and mature business franchise operations he is uniquely qualified to advise individuals that have dreamed of building their own empires. Whether you have an existing portfolio or searching for your first franchise, he can help you to pursue your dreams.

For more information visit: www.MyPerfectFranchise.com

Business Franchise Australia and New Zealand 85

h ot topi c s

Behind the

headlines Coalition victory a likely win for franchising

third of which are to be referred to the task force for more detailed consideration.

The unexpected win for the Liberal/National Coalition in this federal election could also represent a win for the franchise sector in Australia.

Details as to the frames of reference, degree of industry consultation, or reporting timeframe for the task force have not been disclosed at this stage.

While both the Coalition and the Labor Party made pre-election commitments to followthrough on the recommendations of the recent Franchising Inquiry, other Coalition policies are likely to be more favourable to small businesses and franchises than those proposed

by Labor. In particular, Coalition policies to provide tax relief, and to grow the economy are seen as more beneficial for small business than Labor policies, including a return to full penalty rates, and further increases to minimum wages.

Landlord sends food franchisor into liquidation

Meanwhile the Franchise task force announced late last month will continue its work to assess the recommendations made by the recent Franchise Inquiry.

The inter-agency task force will be cochaired by the Department of Jobs and Small Business and the Treasury Department and include other government agencies such as the Australian Competition and Consumer Commission (ACCC), the Department of Industry, Innovation and Science, and the Department of Environment and Energy as needed.

The final report of the recent Franchise Inquiry made 71 recommendations, nearly a

The landlord of a Sunshine Kebabs outlet in Queensland has successfully applied to liquidate the food franchisor, according to insolvency notices.

Queensland Investments Corporation (QIC), the owner of Noosa Civic Shopping Centre has forced Sunshine Kebabs Franchising Australia Pty Ltd into liquidation following a hearing in the Federal Court in Victoria earlier this month. The food chain’s remaining 40-plus outlets throughout Queensland, New South Wales and Victoria are reported to still be trading, according to a media report.

Franchise founder challenged for election interference The Australian Electoral Commission (AEC) has issued an infringement notice to Mark Bouris, the founder of financial services franchise Yellow Brick Road, for making robocalls to warn about Labor Party real estate policies ahead of the federal election, according to a media report.

86 Business Franchise Australia and New Zealand

In an automated phone call to people around the country, Bouris warned that Labor policies would cause the housing market to plummet further and drive up the price of rent. Bouris denied that he was supporting any one political party in the calls, which he paid for personally, but said it was necessary to highlight economic policy.

The calls were the subject of a number of complaints to the AEC, which resulted in the infringement notice.

Government announces Franchise Task Force A task force to consider the feasibility and implementation of many of the recent Franchise Inquiry’s recommendations has been established, according to a media report.

The inter-agency task force will be cochaired by the Department of Jobs and Small Business and the Treasury Department and include other government agencies such as the Australian Competition and Consumer Commission (ACCC), the Department of Industry, Innovation and Science, and the Department of Environment and Energy as needed.

The announcement of the creation of the task force by Federal Small Business Minister Michaelia Cash comes as a surprise, as the government was in caretaker mode in the leadup to the election, however may be seen as a response to a commitment by the Opposition

that it would create the task force as a matter of priority if it wins government.

The final report of the recent Franchise Inquiry made 71 recommendations, nearly a third of which are to be referred to the task force for more detailed consideration.

Details as to the frames of reference, degree of industry consultation, or reporting timeframe for the task force have not been disclosed at this stage.

Court finds marketing funds not held in trust A Victorian Supreme Court judgement has found that marketing funds are not held in trust on behalf of franchisees and are available for distribution to secured creditors in the event of a franchisor’s insolvency.

The decision was prompted by legal action instigated by the administrators of a company linked to grocery home-delivery franchise Aussie Farmers Direct, which collapsed in early 2018 with almost $800,000 left in its marketing fund.

The court decision is a blow to the former franchisees of Aussie Farmers but clarifies a grey issue which also became the subject of one of the recommendations of the recent Franchise Inquiry.

Insolvent franchise barely survives administration Custom toy franchise, Build-A-Bear Workshop Australia, has agreed to a Deed of Company Arrangement (DOCA) effectively keeping the business afloat after being placed into voluntary administration in March, according to a media report.

The DOCA will save more than 200 jobs, keep a number of stores open, and deals with numerous creditors including the Australian Taxation Office, American Express, and employees. The company cited increased operating costs, wages and rent, and decreasing shopping centre foot traffic as key challenges for the business and ‘unusual challenges’ including Brexit and GDPR laws as additional issues at the time of the administration.

McDonald’s become US embassy representatives in Austria; political thickshake ban McDonalds’ 194 restaurants in Austria can now be used by American citizens in distress to receive special access to the United States embassy, according to a media report.

In a Memorandum of Agreement signed between the US Ambassador in Austria and

the fast food chain, McDonald’s will assist US citizens to make contact with the US Embassy for consular services, such as reporting a lost or stolen passport, or to seek travel assistance.

McDonald’s was chosen by the US Ambassador because of ‘the great fame of the brand’.

Meanwhile in Scotland a McDonald’s outlet temporarily suspended sales of its thick shakes and ice creams in response to police concerns that they would be thrown at a controversial UK right-wing political identity at a nearby rally.

Pay rise and potential backpay claim for 100,000 fast food workers Employees of fast food chain McDonald’s are set to benefit from higher wages after an agreement was reached which will cost the company tens of millions of dollars in weekend penalty rates, according to a media report.

Currently young workers are reportedly earning as little as $8.64 an hour, even on weekends, after a controversial deal was agreed to with the Shop, Distributive and Allied Employees’ Association (SDA) in 2013 trading off penalty rates for a small increase in the ordinary hourly rate.

McDonald’s is also facing a claim for backpay which could be worth in excess of $200 million to its predominantly young and lowpaid workforce after an employee lodged an application with the Fair Work Commission to end the existing agreement, backdated to June 2017.

RFG ignores purchase offer despite dire straits An offer to purchase listed multi-brand franchisor Retail Food Group (RFG) has been ignored as the company continues to struggle under a massive debt burden in a toughening retail market and a failed attempt to sell some of its brands, according to a media report.

The Australian Financial Review reports that former Eagle Boys Pizza CEO and founder Tom Potter had organised funding for an offer to buy Retail Food Group but has been rebuffed in his attempts to contact the company last year and again as recently as last month.

However, the company has denied receiving any communication from Potter. RFG recently announced that plans to sell its Donut King and pizza brands had collapsed after a binding agreement with an interested party could not be reached. The company

Jason Gehrke | Director Franchise Advisory Centre

currently owes about $260 million but continues to trade after renegotiating its debt covenants with its financiers.

Domino’s Australia to acquire Danish operations Listed food franchise Domino’s Pizza Australia will pay nearly $4 million for 30 company-owned stores and other assets of Danish franchise, Domino’s Pizza Scandinavia, according to a media report.

The deal will reportedly be completed by June 2019, and while Denmark is currently a small market Domino’s estimates it could support up to 150 stores.

Real estate agencies merge for national coverage Sydney-based Belle Property has merged with Melbourne-based hockingstuart in a union of real estate agencies which creates a ‘pure national agency’ similar to competitors, Ray White and LJ Hooker, according to a media report.

While the two companies will operate as a single entity, each will keep their individual names and no franchises will be rebranded or altered. The franchise model will also remain unchanged.

Mexican investor takes control of listed NZ fast food group Mexican investment fund manager, Finaccess Capital, has secured a 75 per cent share of listed New Zealand franchise group Restaurant Brands, according to a media report.

The deal closed in late March with Finaccess paying NZD$9.45 cash per share to acquire control of the company. Restaurant Brands, which will remain a public company, operates the New Zealand outlets of KFC, Pizza Hut, Carl’s Jr., and Starbucks, and a number of KFCs internationally. www.franchiseadvice.com.au

Business Franchise Australia and New Zealand 87

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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.mmrb.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.

Business Franchise Australia and New Zealand 89

f r an c h i s e 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

FAST FOOD, HAMBURGERS, FISH & CHIPS

3

FCA, VECCI, C4G

$30,000

$150,000

RETAIL, FOOD AND BEVERAGE

545

-

$280,000450,000 + GST

$280,000 + GST

RETAIL, POOL & SPA SERVICE

60

FCA, SPASA

$60,000

From $420,000 + GST

DECK AND TIMBER RESTORATION

8FCA & AIG (Australian Industry Group)

$30,000 + GST

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

LEADERS IN FIRE, ELECTRICAL & SAFETY

10+

FCA

-

$31,500 to $49,500 ex GST

Entertainment / Fitness

20

-

$5,000

$500,000

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

ITALIAN FOOD CASUAL DINING FRANCHISE

40+

FCA, FANZ

-

$400,000+ (site dependent)

GROUP PERSONAL TRAINING

14 Studios

FCA

Franchise Fee $20,000

-

WINDOW & DOOR REPAIR/MAINTENANCE

8

FCA, Australian Windows Association, Strata Community Australia, EBIX Trades Monitor

$40,000 + van, includes: van fitout and wrapping, tools, stock, digital marketing, accounting package, dedicated territory

-

$20,000 $50,000

$20,000

$67,000 $97,000

$67,000

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

BK’S TAKEAWAY 95 Princes Hwy, Trafalgar VIC 3824 Ph: 03 5633 2131 Email: admin@bkstakeaway.com.au Website: www.bkstakeaway.com.au

BOOST JUICE Chadstone Shopping Centre, 1 Tower 2, 1341 Dandenong Rd, Chadstone VIC 3148 Ph: +61 (3) 8593 45 46 Email: boostinfo@retailzoo.com.au Website: www.retailzoo.com.au/franchising-information

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

DECKSEAL PO Box 4093, Burwood East VIC 3151 Ph: 1800 332 525 Email: admin@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

FCF FIRE & ELECTRICAL 1/6 Victory East St, Hervey Bay Qld 4655 Ph: 1300 323 753 Email: sales@fcfnational.com.au Website: www.fcfnational.com.au

FLIP OUT Australia 490 Northbourne Ave, Dickson, Canberra, ACT 2602 Ph: +61 (0) 418 620 680 Email: steven@flipout.net.au Website: www.flipout.net.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) 1800 334 498 (NZ) 0800 100 114 (toll free) Email: bdm@justcuts.com Website: www.justcuts.com

LA PORCHETTA 192 Mahoneys Road, Thomastown VIC 3074 Ph: 03 9460 6700 Fax: 03 9460 3099 Email: franchising@laporchetta.com Website: http://www.laporchetta.com

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

LOCK & ROLL 38 Redfern St Wetherill Park NSW 2164. Ph: 02 9651 3444 Email: franchise@lockandroll.com.au Website: https://www.lockandroll.com.au

MAGNETITE WINDOWS 36 Garema Circuit, Kingsgrove NSW 2208 Ph: 02 9565 4070 Fax: 02 9565 4080 Email: info@magnetite.com.au Website: www.magnetite.com.au

WINDOW INSULATION

6 franchises AWA, HIA, WFAANZ & 12 dealers

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

90 Business Franchise Australia and New Zealand

MOBILE SKIP HIRE

16

FCA

$65,000 + $65,000 + GST, GST,(incl (incl Franchise Fee) Franchise Fee) + vehicle + vehicle

FRANCHISE

NATURE OF BUSINESS

OUTLETS

ASSOC MEMBER

INITIAL FEE

MIN INVEST

NANOSHIELD

SOLAR SHEILDING NANOTECHNOLOGY WINDOW TREATMENTS

1

-

$26,000

$26,000

BEAUTY & LASER CLINIC

5

-

From $35,000 plus GST

$550,000 plus GST

HYDRAULIC SERVICE AND MOBILE CONNECTOR SPECIALISTS

120

-

$15,000

VARIOUS OPTIONS

MOBILE TOOLS AND EQUIPMENT FRANCHISE

175+

FCA / FANZ

Start-up cost from $50,000

-

PRINT, DESIGN, WEBSITES

150+ AUS & NZ

FCA, FCNZ & Print Industries Association of Australia

$35,000 AUD

From $50,000 AUD

SELF-SERVICE LAUNDROMAT

-

-

$0

$60,000

RESURFACING

100+

-

From $5,000

$20,000 to $64,350 Finance avail from $75 p/w

LOTTERIES

Approx 4000

-

Varies, dependent State/Territory

Varies, dependent State/Territory

FCA, BFA

$40,000

$150K - $400K depending on size & concept

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 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

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

SNAP PRINT & DESIGN Ground Floor, Building G, 12-24 Talavera Road, North Ryde NSW 2113 Ph: 02 8870 5106 Email: franchiseenquiries@snap.com.au Website: www.snap.com.au

SPEED QUEEN Ph: 1300 927 437 Email: invest@speedqueensales.com.au Website: www.speedqueenlaundromats.com.au

SPRAY PAVE AUSTRALIA GPO Box 501, Greenacres SA 5086 Ph: 1800 688 888 Fax: 08 8266 5360 Chris Bylhouwer Email: spraypave@senet.com.au Website: www.spraypave.com

THE LOTT

87 Ipswich Road, Wooloongabba QLD 4012 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 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

TUTOR DOCTOR 830 Dixon Road, Toronto, ON, M8W 6Y8 Ph: 0413 011 899 Email: opportunity@tutordoctor.com Website: www.tutordoctoropportunity.com

CHOCOLATE LOUNGES, 11 worldwide PAVILIONS, BARS

RETRO-FIT DOUBLE GLAZING

4 AUS, 42 NZ

AWA

$40,000

Varies depending if vehicle needed

ON-TO-ONE IN HOME TUTORING

640

CFA, IFA, FCA, BFA, FASA

From $49,700

$65,000

DRIVE THRU CAFÉ

86

Proud Member of the FCA

Upon Request

$750 000

ZARRAFFA’S COFFEE 124 Distillery Road, Eagleby QLD 4207 Ph: (07) 5500 0800 Email: Christine.allsopp@zarraffas.com Website: : www.zarraffas.com/franchising

A-Z Listings are a great way to promote your business For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to: www.businessfranchiseaustralia.com.au Business Franchise Australia and New Zealand 91

F R A N CHIS E 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.

With over 110 stores Australia wide and with more set to open, it’s never been a better time to

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

boost Boost Juice is one of the world’s most famous and loved smoothie and juice brands. With its winning combination of fresh fruit and love life ethos, Boost Juice offers a healthy alternative to fast food and strives to have customers leave feeling just that little bit better.

Founded by Australian adventurer and entrepreneur, Janine Allis, the first Boost Juice store opened in Adelaide on King William Street in 2000. From humble beginnings, Janine transformed her smoothie and juice empire from her kitchen bench

92 Business Franchise Australia and New Zealand

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

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!

Call us on 1300 793 209 or visit: www.batteryworld.com.au/Franchise-Opportunities

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

to the International success story it is today, with over 500 stores in operation. The Boost Juice concept is not only about providing customers with healthy and great tasting products, it’s about creating an entire in-store experience. Franchise Partners and staff members want their customers to experience the energy, passion, vibe and “love life” ethos that Janine infused in her first store.

Contact Phone: +61 (3) 8593 45 46 Email: boostinfo@retailzoo.com.au www.boostjuice.com.au/franchising

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.

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.

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 a 35 year success story, Fasta Pasta is now Australia’s largest, independently owned group of ‘fresh pasta’ Italian restaurants.

An innovative ever-evolving 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 2018. Loved for our affordable, fresh, family meals in relaxed, fully licensed surroundings, this is a

business franchise australia and new zealand A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.

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

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 of Victoria and now also has franchise’s available in Queensland.

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

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

great opportunity to be part of our award 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

For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz

AUSTRALIA AND NEW ZEALAND

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F R A N CHIS E a—z d i r ecto ry

FCF FCF are industry leaders in the Fire, Electrical and Safety Industries. Having a major focus on business compliance allows for routine checks and repairs to correct the failure points. Being a legislated business allows for long term clients on a repetitive basis.

Utilizing a software system that is purpose built to FCF means job management from the lead stage right through to invoicing and

To find out more about FCF contact Jacob Foster on 0488446625 or alternatively to find out more information head to www.fcfnational.com.au

FLIP OUT AUSTRALIA (FO FRANCHISING PTY LTD)

Offering: Flip Out’s target market is all-inclusive. The arenas are jam-packed with exhilarating activities for everyone

Welcome to the big green trampoline!

Benefits of a Franchise System: You’ll be entering into a proven business model. You don’t need prior industryspecific experience to own a Flip Out. All training is provided. Flip Out continually invests in research and development to deliver cutting edge innovation.

Be part of the Flip Out success story. Invest in an experience that brings people of all ages and communities together in a fun, safe and healthy environment.

The Philosophy: Flip Out is so much more than a business, it’s a community, bringing people together in a happy, fun and adrenaline filled environment!

An Opportunity: The popularity of trampolining is growing at a rapid rate and Flip Out is leading the way.

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

business franchise australia and new zealand AUSTRALIA AND NEW ZEALAND

then integration with Xero or Myob. FCF have worked tirelessly to create a system that means more time in the field completing jobs and less time quoting and following up with clients due to the automation.

A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.

94 Business Franchise Australia and New Zealand

Contact Us today!

Steven Stone 0418 620 680 steven@flipout.net.au www.flipout.net.au/join-the-flip-out-squad

• 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

For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz

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 At Just Cuts you don’t need to be a hairdresser to become a Franchise Owner, in fact most Just Cuts Franchise Owners are not hairdressers. How? Our systems, processes, support model and training opportunities empower your Stylists to think like an Owner and easily run the salon for you. Becoming a Just Cuts Owner in New Zealand means you belong to the largest and most loved hairdressing franchise in the Southern Hemisphere. You’ll join 24 salons in New Zealand and 201 in Australia providing style cuts for over 100,000 clients per week!

Our dedicated Academy Team will guide and support you throughout the whole process of opening your salon, including training, business and management advice, a

La Porchetta La Porchetta are the market leaders in cooking quality, Italian food with fresh ingredients.

The first La Porchetta Restaurant opened in 1985, in Melbourne’s inner city Italian hub. It soon became renowned as a special place to experience delicious food, love, and, a passion for life.

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.

Lock & Roll If you’re bit of a DIYer and a practical, hands-on person with an engaging, happy personality, then a Lock & Roll franchise could be worth considering.

Lock & Roll is a specialist window and door repair, maintenance & upgrade service for domestic and commercial property owners and managers.

We are looking for dedicated and customer focused people to become Lock & Roll

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™.

Style your work and life your way with Just Cuts.

Contact: Zenardia Anderberg 0488 600 036 or 1800 334 498 Email: bdm@justcuts.com Website: justcuts.com/franchising LinkedIn: Just Cuts™ Franchising

comprehensive Operations Manual and a bespoke Grand Opening marketing campaign. And that’s just the start! As a Just Cuts Franchise Owner in New Zealand you’re joining a group of talented Franchise Owners locally in New Zealand and across to Australia whose spirit and enthusiasm is infectious. You’ll have regular opportunities to network online and in person at Owners events in New Zealand so you’re never alone!

So, what are you waiting for? Get in touch today!

Contact: Zenardia Anderberg 0488 600 036 or 0800 100 114 (toll free) Email: bdm@justcuts.com Website: justcuts.co.nz/franchising LinkedIn: Just Cuts™ Franchising

Recently celebrating 30 years in business, La Porchetta is now looking to expand their network of Franchises throughout Australia and New Zealand. Purchasing a La Porchetta Franchise provides a fantastic opportunity to brighten your future.

For more information please contact: Phone: 03 9460 6700 Email: franchising@laporchetta.com Website: http://www.laporchetta.com

LTYB currently have 14 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

Franchises to meet the strong existing demand for our services.

It is a great opportunity for you to plan your future and join a franchise brand with strong rewards and real growth possibilities. We want to make sure that our offering is a good match for you.

For more information contact Dom Galluccio, General Manager – Lock & Roll on 02 9651 3444 or visit www.lockandroll.com.au

Business Franchise Australia and New Zealand 95

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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

Mobile Skips Since 2006 Mobile Skips has been giving Australians a simpler, better and cheaper alternative to old fashioned skip bins.

• 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

their businesses and prosper within an authentic partnership.

Mobile Skips are seeking enthusiastic self-starters who are passionate about customer service and would love the opportunity of growing their own business.

During 2013 we began our successful partnership with Bunnings and since then have been introducing Mobile Skips to our happy customers all around Australia.

As a Mobile Skips franchisee, you will be supported by proven systems, cutting edge IT and a support team that are invested in your success.

Mobile Skips is a simple, unique offering with great systems that allows our franchisees to grow

For more info go to: https://mobileskips.com.au/ franchising or call 1300 675 477

NANOSHIELD

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

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

Nirvana Beauty Laser Clinics Nirvana Beauty Laser Clinics is at the forefront of the beauty industry, committed to offering the most advanced technologies to clients. We are experts in advanced skincare, laser and anti-ageing treatments with over 20 years’ industry experience.

At Nirvana it isn’t enough to follow the crowd: the franchise chain was one of the first in Australia to introduce revolutionary treatments such as Coolift and the lifting and tightening skin treatment HIFU. These treatments are bang on track with the trends for fighting the ravages of time through non-invasive anti-ageing processes.

business franchise australia and new zealand AUSTRALIA AND NEW ZEALAND

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:

A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.

96 Business Franchise Australia and New Zealand

Nirvana Beauty Laser Clinics is looking for focused and determined individuals who can springboard their personal success from an established franchise chain, and help develop the brand’s presence around Australia, and reap fruits of own input.

Locations available: Westfield Miranda, Roselands, Westfield Chatswood, Castle Towers and other locations available!

For more information please contact Marc Akil at: Phone: 0413 564 565 Email: franchise@nirvanabeauty.com.au Website: www.nirvanabeauty.com.au

For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz

Ryco 24•7 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.

RYCO 24•7 is a member of the Franchising Code Council Limited, which administers the Franchising Code of Practice.

The RYCO 24•7 Mobile Connector Specialists franchises was established over twenty years ago

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

SNAP PRINT & DESIGN Passion is the backbone to any successful business. At SNAP, our passions are print and building businesses. As part of our network, you’ll be supported by a team with the expertise and passion to see your business reach its full potential.

Boasting a 120 year history in the print industry and with 40 years in franchising, SNAP is 100% Australian owned and operated. We have over 140 Snap Centres locally and we’re internationally franchised in Ireland, New Zealand and China.

SPEED QUEEN Enjoy true passive income with a Speed Queen selfserve laundromat. With our turnkey service, you’ll be up and running in your own profitable business in no time, backed by the worlds’ oldest and largest manufacturer of commercial laundry equipment.

Owners of Speed Queen laundromats enjoy true passive income. They earn while they travel, go fishing, spend time with family…

We provide a full service, from scoping to design, project management and build.

SPRAY PAVE AUSTRALIA 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.

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.

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.

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.

SNAP is one of the most recognised brands in Australia with a reputation for fast, personalised service and high quality print & design solutions.

SNAP caters to all business print needs, from marketing materials and business stationary through to signage.

If you want to learn more about becoming part of our Multi Award Winning Australian Franchise network, we’d love to hear from you!

Phone: 1300 810 233 Email: franchiseenquiries@snap.com.au snap.com.au

Our equipment is the world standard for quality.

Our cashless payment solution, auto timed doors, video security systems and remote machine control means you never have to visit your site. Everything can be managed remotely.

Enjoy an excellent return on investment (ROI). You simply won’t find another opportunity this good.

To learn how to get started call 1300 WASHER (927437) or email invest@speedqueensales.com.au

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 greedy fees. You keep all your profits.

Full investment $37,500 or use our easy payment plan from $5,000 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

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the lott 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.

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: franchiseenquiries@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

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

Tutor Doctor

background to operate. The Tutor Doctor franchise low overheads produces an excellent return on investment while franchisees enjoy the fulfilment of making a difference in their communities.

Tutor Doctor is experiencing one of the fastest growing international expansions of any educational company in the history of franchising. With over 640 locations around the world, Tutor Doctor has changed the lives of 270,000+ people by helping them their academic goals.

Tutor Doctor franchisees, who manage a team of professional tutors and work on the business rather than in it, follow an award winning homebased business model that requires no educational

ZARRAFFA’S COFFEE Award-winning Zarraffa’s Coffee is an Australian-owned and operated specialty coffee company that roasts and delivers the freshest coffee to almost 90 stores across south east Queensland, New South Wales and Western Australia.

Entering its second decade of retailing this year, Zarraffa’s has led the way in the

98 Business Franchise Australia and New Zealand

While each year Tutor Doctor has continued to grow at unprecedented rates, it is the commitment to the core philosophy – every child can learn, but not every child learns the same way – that remains the source of Tutor Doctor’s success.

For more information got to: www.tutordoctoropportunity.com or call 0413 011 899

introduction of hand-crafted, specialty coffee and is a pioneer of drive thru beverages in Australia.

With a high number of multi-store franchisees and a healthy, measured expansion plan, Zarraffa’s has a number of store opportunities available across Queensland, NSW and WA. Visit www.zarraffas.com/franchising to register your interest and find out more.

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