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VOL 13 ISSUE 06 SEPT/OCT 2019
NEW YORK MINUTE
Delivering profits with Uber Eats special feature
Food & Beverage FRANCHISES
the finance question
how to put your best foot forward
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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 and New Zealand. 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
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
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VOLUME 13 ISSUE 6, SEP/OCT 2019 president: Colin Bradbury. colin@cgbpublishing.com
Comments
From the publisher & editor
publisher: Vikki Bradbury. vikki@cgbpublishing.com
“This issue is once again packed full of expert advice, articles from leaders in franchising and useful information for anyone thinking of entering the franchising industry.”
EDITOR: Hayley Drew. editor@cgbpublishing.com.au Vikki Bradbury
SALES & marketing manager: Kathleen Lennox. kathleen@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: NEW YORK MINUTE 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
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.
Hayley Drew
Firstly, a big hello to all our readers. I would like to introduce myself as the new editor at Business Franchise Magazine Australia and New Zealand. This issue is once again packed full of expert advice, articles from leaders in franchising and useful information for anyone thinking of entering the franchising industry. New York Minute is featured on the cover of our September/October issue and Managing Director, Antony Crowther, discusses how businesses must adapt or die in his article, Delivering Profits with Uber Eats. Our special feature this issue is Food and Beverage franchises, be sure to read our feature article on how trends in the digital world are impacting the food and beverage industry and Dominique Lamb – CEO of the National Retail Association – has written an important article on wage noncompliance you can’t afford to miss. Inside this issue of Business Franchise, you’ll find helpful articles from a range of experts including Peter Holt – Assistant Commissioner at the Australian Taxation Office, Lesley French – General Manager at MicroStrategy and Corina Vucic – Director at FC Business Solutions. The recent Melbourne Franchising & Business Opportunities expo was a huge success with queues out the door on both days. Exhibitors covered a huge range of industries; from food and beverage, retail and home services, to accounting and finance, tutoring and fitness. There were also legal, financial, and business consultants ready to offer advice and information. Business Franchise readers can gain free entry to the Franchising & Business Opportunities Expo held each year in Sydney, Brisbane, Melbourne and Perth. The next expo will be at the ICC Sydney Darling Harbour on 21-22 March 2020. Visit www.franchisingexpo.com.au and use the code BFM when purchasing to secure your free ticket. Enjoy the read! Hayley Drew Editor
SUPPLIER FORUM
Th of in for fra
contents
SEPTEMBER/OCTOBER 2019
On the Cover
12
22
24
12
Cover Story: New York Minute - Delivering Profits with Uber Eats
31
Special Feature: Food and Beverage Franchises
22
The Finance Question - How to Put Your Best Foot Forward
In Every Issue 8
What’s New!
Announcements from the Industry
16
A Message from the CEO
Mary Aldred, Franchise Council of Australia
34
Feature Editorial: Food and Beverage and the Digital World
68
Hot Topics: Behind the Headlines
Jason Gehrke, Franchise Advisory Centre
71
Professional Services Listings
72
Franchise Listings
74
Franchise A—Z Directory
Focus Feature 19
Interface Financial Group
61 SuperGreen Solutions
Expert Advice
44
58
18
What Does the Local Reporter Want From You?
22
The Finance Question - How to Put Your Best Foot Forward
28
Data and Analytics can Help Franchisees Stand Out
58
Five Ways the ATO is Tackling the Black Economy
64
How to Avoid Losing Sales People
Pete Burdon | Franchise Media Training
Steve Seddon | Westpac
Lesley French | MicroStrategy
Peter Holt | Australian Taxation Office
Kara Atkinson | SPARC
9
also in this issue: Appliance Tagging Services. ............................... 74
Franchisor in Depth 24
Carpet Call/Solomans Flooring: The Experts in the Trade
54
Jim’s Pool Care: Jim’s Pool Care is Ready to Grow
Battery World................................................................ 74 Boost Juice.................................................................... 74 Clark Rubber......................................................... 27, 74
Profile
DeckSeal. ........................................................................75
66
Ecomist Australia........................................................75
Franchising Expo: Expo Focuses on Franchising Success
Food and Beverage Franchising Feature
FC Business Solutions.............................................. 4 FCF Fire & Electrical..................................................75
On the Cover
Franchise Finance Australia. .................................. 3
Food and Beverage Franchising Feature
Hamoniq. .........................................................................71
44 Ensuring Your Business is the Main Meal
IP Partnership...............................................................71
34 Special Feature: Food & Beverage and the Digital World
38 High Risk: Workplace Safety in the Franchised Food and Beverage Sector 50 Wage Non-Compliance - A Cost Your Business Can’t Afford
Jejak Graphics. ............................................................71
In Every Issue 31 Special Feature: Food and Beverage Franchises 34
Feature Editorial: Food & Beverage and the Digital World
32 What’s New! Announcements from the Industry Expert Advice
Just Cuts..........................................................................76 Lock & Roll......................................................................76 Marsh & Maher. ................................................... 57, 71 National Franchise Insurance Brokers.......... 30
38 High Risk: Workplace Safety in the Franchised Food and Beverage Sector Chris Beasley | Safety Navigator
Nanoshield......................................................................76
44 Ensuring Your Business is the Main Meal Corina Vucic | FC Business Solutions
Regus................................................................... 77, OBC
50 Wage Non-Compliance - A Cost Your Business Can’t Afford Dominique Lamb | National Retail Association Franchisor In Depth 40 Fasta Pasta: Celebrating 35 years of Franchising Success Profile 48 Subway: A Passion for Great Quality Fresh Food Snapshot 52 BK’s Takeaway: Seriously Good Burgers Plus More!
RYCO 24•7.....................................................................77 Safety Navigator..........................................................57 Seasons Arts Class.......................................... 14, 77 Snap-on Tools..................................................... 53, 77 Snap Print & Design....................................... IFC, 77 Spray Pave Australia.................................................78 Theobroma Chocolate Lounge..........................78 Thermawood.................................................................78
what’snew! Anytime Fitness Named Top Global Franchise For the 12th year in a row, Anytime Fitness, the world’s largest and fastestgrowing fitness club chain, has been honoured by Entrepreneur magazine as a Top Global franchise. Averaging more than 300 new gyms each year for more than a decade, Anytime Fitness recently expanded to Colombia and Indonesia. New gyms will soon open in Morocco and on an adventure expedition ship in Antarctica, making Anytime Fitness the first to franchise on all seven continents. To compile the most recent Top Global franchise rankings, Entrepreneur started with each company’s 2019 Franchise 500® score, based on system size, growth rate and financial strength and stability and then adjusted to give extra weight to international size and growth rate. “This designation as a Top Global franchise – for the 12th consecutive year – is a credit to our international franchise development team and our fabulous group of international master franchisees,” said Chuck Runyon, CEO and Co-Founder of Anytime Fitness. “Whether it’s Australia, the Netherlands or Japan, our franchisees are providing our members with personal service and a wealth of
training options that produce real results. That personal touch and high level of engagement are what differentiates Anytime Fitness from many other gyms and what has strengthened and grown our brand worldwide.” The first Anytime Fitness Australia gym located in Gunnedah, NSW, opened in 2008. Now, there are over 505 clubs located across the country and more expected to open soon. Justin McDonell, Anytime Fitness Australia Co-Founder and Chair said “When we opened the doors to the first Anytime Fitness club in Australia we knew it would be a great fit. It came at a time when Australians were catching on to how important their fitness yet
did not have access to a gym that ticked all the boxes in terms of accessibility, flexibility and affordability.” Our gyms are at the heart of so many communities across Australia,” McDonell continued. “Our gym owners are doing well financially, and our members value having 24-hour access to our state-of-theart equipment and facilities. We expect the Anytime Fitness network will keep growing so that we can continue to provide our members with unlimited opportunities to improve their health.” www.anytimefitness.com
Clark Rubber Expands Franchising Model to include Pool & Spa Shops and Pool Mobile Service Vans Iconic Australian retailer adds Pool & Spa shops and Pool Mobile Service Vans to its already successful franchising model. With a current network of 60 stores and a retailing history of over 70 years, Clark Rubber has recently added two new franchise models to its successful business plan. Clark Rubber remains one of the most recognised brands in the Australian retail market today, and these new models will see the brand’s network continue to grow. In addition to their already successful large format retail stores, Clark Rubber now offers smaller-format Clark Pool & Spa shops and a standalone van-based pool care service model, specialising in onsite pool care and servicing. These recent additions create a range of business opportunities at different investment levels. All three franchise models will enjoy the group buying power that comes only from being a part of a large national network, will benefit from the strength of the Clark Rubber brand and reputation, and also be supported by solid marketing initiatives and ongoing operational assistance. To learn more about Clark Rubber and for more information about these new franchise models, visit www.clarkrubber.com.au
8 Business Franchise Australia and New Zealand
Franchising Awards recognise business achievement Franchising has been the common thread that has helped the high achieving small business owners recognised by the Franchise Council of Australia’s 2019 Queensland/Northern Territory Excellence in Franchising Awards to follow their passion and realise their business and personal goals. 2019 QLD/NT Excellence in Franchising Awards Winners QLD/NT Multi-Unit Franchisee of the Year Chris McIntyre, ANZ Mobile Lending, Gold Coast Central, Gold Coast North, Loganholme & Ascot QLD/NT Single Unit Franchisee of the Year, two or more staff Jason Hand, Wendy Hand & David Begg, InXpress, Narangba QLD/NT Single Unit Franchisee of the Year, less than two staff Kate Davidson, EFM, Noosaville QLD/NT Field Manager of the Year Tim Spreadborough, Hire A Hubby QLD/NT Franchisee Community Responsibility and Contribution Joanne Heidke, Bakers Delight Congratulating the winners, FCA CEO Mary Aldred said “The outstanding effort by the franchisees who took out the awards, and their contribution as successful small to medium business operators, shows the positive impact franchising can have on employment, the economy and community”. “The businesses run by these franchise owners are fantastic examples of small to medium businesses achieving in a tough environment and setting the benchmark for franchising in Queensland and the Northern Territory,” said Mary Aldred. Following their success, the QLD/NT state winners have qualified as finalists for the MYOB FCA National Excellence in Franchising Awards. The Gala Awards Dinner will be the closing event of the 2019 National Franchise Convention on the Gold Coast on Tuesday 22nd October. www.franchise.org.au
RISING STAR AND MULTI-AWARD-WINNING FRANCHISEE TEAM UP AT QUEST NORTH SYDNEY Experienced franchisee Brent Howard and rising star Josh Harkness have been appointed joint franchisees at Quest North Sydney. Brent Howard will own a majority share of the North Sydney apartment hotel and maintain his role as General Manager at Quest St Leonards. Josh Harkness, with more than three years’ experience as Front Office Manager at Quest King William South in Adelaide, will take on the role of General Manager at Quest North Sydney. The joint franchising model is one of several commissioned by the apartment hotel operator this year which partners established Quest franchisees with high-performing hospitality professionals from Quest’s Franchisee Accelerator Program. The model serves as a pathway for experienced franchisees to enter multi-unit franchising and employees to take their first step into the world of business ownership. Recognised for running one of Quest’s most successful franchises, Brent Howard, together with partner Ann Crowhurst, has been awarded Quest NSW Franchise of the Year for the last two years. Brent said he is pleased to apply his expertise in hotel management and hospitality in the heart of North Sydney. “The proximity to Sydney’s CBD and its location in a mixed-use property is one of several exciting features of this apartment hotel. I’m eager to begin working with Josh and our clients over the coming months in preparation for the launch in October,” Mr Howard said. Quest North Sydney, due to open October 2019, features 100 studio, one, and two-bedroom apartments containing modern amenities such as high-speed Wi-Fi and smart televisions. Each apartment is also equipped with kitchen facilities, spacious bathrooms and ergonomic workspaces to provide a home away from home experience for guests. Quest North Sydney is located just 4 kilometres from Sydney’s central business district. With a Sydney Metro train station at Victoria Cross expected by 2024, the commute will soon drop to less than 10 minutes. www.questapartments.com.au
Business Franchise Australia and New Zealand 9
what’snew! Xtend Barre owner Liz Nable named Franchise Woman of the Year Xtend Barre owner/operator Liz Nable was a worthy winner at the FCA NSW-ACT Excellence in Franchise Awards, after she was was named the NSW/ACT Franchise Woman of the Year. The awards, which were held in August at SoHo at Jones Bay Wharf in Pyrmont, Sydney, celebrate excellence in personal and professional achievements by a woman in the franchising sector. On winning the accolade, Liz commented: “It is an incredible feeling to be named Franchise Woman of the Year for NSW/ACT, and to be a part of the growth of the Xtend Barre brand in Australia. I look forward to seeing what the next 12 months will bring for the brand.” A former journalist, Liz is now a multi-studio Xtend Barre franchisee, running the Northern Beaches studios at Dee Why, Mona Vale, Mosman and Manly. Liz and her husband Adam were Xtend Barre’s first Australian franchisees, and in 2018 she was awarded the Xtend Barre Franchisee of the Year Award. Liz also sits on a National Franchise Advisory Board and works as a consultant helping other small business owners navigate the media and use PR opportunities to grow their business. www.xtendbarre.com.au
Swimart Jindalee pool and spa franchisee crowned National Retailer of the Year Swimart Jindalee has been recognised among the industry for business excellence, winning seven coveted state, national and Australasian industry awards within a space of two months. “Jindalee owner/operators Ashley and Heidi Weekes have quickly become exceptional assets to the Swimart franchise network this past three years,” says Swimart Franchise Development Manager Alex Johnson. “The dynamic duo set a stellar example of how determination and enthusiasm are key ingredients for success.” The winning partnership clinched top honours at the Swimming Pool and Spa Association’s (SPASA) Awards of Excellence, and Swimart’s annual awards ceremony recently held in Langkawi, Malaysia. They include: Australasia 2019 Swimart Australasian Franchisee 2019 Swimart Australasian Business Champion National 2019 SPASA Retailer of the Year State 2019 SPASA Best Pool Store 2019 SPASA Retailer of the Year 2019 Swimart Queensland Business Champion (region 1) 2019 Swimart Queensland Franchisee (region 1) “Our team of retail staff and in-field technicians provide an authentic customer service experience, with tailored pool care solutions, utilising the vast amount of experience our team has gained over many years
10 Business Franchise Australia and New Zealand
caring for pools,” says Ashley. “These awards are a great tribute to everyone’s hard work and dedication.” Swimart Jindalee has experienced consistent growth, both in its performance in the market as well as its workforce size, which has doubled since the Weekes’ acquired the business in May 2016. “Ensuring our business has the right people, with the right skills, in the right place, at the right time, has been critical to our success in providing efficient, expert advice and service to customers,” Heidi explains. “Staff training and development and fostering a culture of continuous improvement are priorities for us.” swimart.com.au
FRANdata Congratulates Five-Star Ratings
FRANdata congratulates Quest Apartment Hotels on being awarded the first five-star rating through the Australian Franchise Rating Scale™.
Poolwerx launches social responsibility program Learning to swim is a rite of passage every child should experience, and the annual Learn2Swim Week, a community safety initiative driven by Poolwerx, is back in 2019 from 30 September to 7 October. Poolwerx CEO and founder John O’Brien said the purpose of the social responsibility program was to improve water safety in the at-risk under-fives and they were looking for at least 400 swim schools across the country to support the week-long event. “Learning to swim is one of the top drowning prevention measures. It is a lifesaving skill every child needs to know, and we’re calling on all local swim schools to get involved with Learn2Swim Week to help us achieve our ultimate goal of having zero drownings in under-fives,” he said. Learn2Swim Week won Franchise Council of Australia’s (FCA) national Franchisor Social Responsibility Award 2018. “Our Franchise Partners throughout Australia and New Zealand are highly committed to this campaign and bringing awareness about the importance of water safety. This initiative is all about education and ultimately helping to save lives. We hope Learn2Swim Week makes it easier for both parents and children to experience the importance of water safety.” O’Brien said Poolwerx research showed 36 per cent of parents who registered their child for Learn2Swim Week last year had personally,
or knew of someone who had, experienced a near-drowning experience. “It is scary to think so many people have had to face such a terrifying experience with a loved one. We know the ability to swim is one of the most important factors in reducing the risk of childhood drowning, so we need to introduce more kids to water familiarisation as early as possible.” Laurie Lawrence from Kids Alive - Do the Five, is the program ambassador and has once again partnered with Poolwerx to deliver the initiative and said it was a wonderful way for Franchise Partners and local swim schools to show their community they care about saving children’s lives. “Under-fives have one of the highest drowning rates in the country, so they need to know how to respect and handle the water,” he said. “Ideally, offering a 5-lesson intensive course is recommended, but even if a swim school can provide one free lesson, it might just help prove to a parent how vital learning about water safety is,” Laurie said.
Ratings are allocated after an independent and fact-based assessment across seven key categories designed to measure both transparency and performance. In achieving the five-star rating, the extended stay accommodation specialists have been able to demonstrate a high level of transparency and an outstanding overall level of franchise performance. The review team was particularly impressed with the systems and disciplines in place that allowed Quest to measure, monitor and support a high level of performance at an individual unit level. All four lottery brands operated by ‘the Lott” have also achieved the highest possible rating through the Australian Franchise Rating Scale In achieving their five-star ratings, the brands were able to demonstrate a high level of transparency and an outstanding overall level of franchise performance across seven key categories designed to measure both transparency and performance.
Learn2Swim Week will run from 30 September - 7 October.
The review team was particularly impressed with the range of new initiatives introduced by the group to support the financial performance of more than 3800 franchisees across the group. It also noted a high level of investment in the professional development of the leadership and head office teams which not only helps maintain a clear ‘culture of compliance’ but also equips them to provide optimal levels of support to their franchisees.
www.learn2swimweek.com
www.frandata.com.au
“Last year 66 per cent of parents of who participated in the event kept their children in swimming lessons long-term, which shows the message is getting through and parents understand how vital learning to swim is at an early age.”
Business Franchise Australia and New Zealand 11
c ov er sto ry: N ew Yo r k M i n u te
New York Minute Delivering profits with Uber Eats
As a small business owner with over 20 years’ experience in the quickservice restaurant (QSR) industry, I know how daunting starting your own business can be. Betting the farm (or in most cases the family home) on the success of a retail food outlet
can be terrifying, and with the current upheaval being experienced by the food and beverage industry, it should be. I say that because the QSR industry and the franchises that operate in that space are scrambling to survive the single biggest shake up the industry has ever experienced.
The rise of the mobile delivery app Until very recently, QSR operators needed to keep a close eye on expenses such as wages, cost of goods, and overheads, but these factors
have largely remained stable and predictable. Therefore, the main job of any franchisee was to ensure that they were generating enough sales which, if they were, would yield an industry-standard profit margin of between 10 per cent to 20 per cent. That’s why successful franchise brands have traditionally invested heavily in large restaurants located within high profile but expensive locations such as shopping centres. In the past, this model has increased brand exposure and, by extension, profit margins. Beyond that, the main thing that kept people like me and other small business owners awake at night was monitoring the overall health of the economy and hoping that consumers remained motivated to spend some of their hard-earned cash on a burger or two every week. However, all that has now changed, and what was good practice and a profitable business model two years ago is now a roadmap to bankruptcy. In a nutshell, this is because of the customers’ preference and the advent of Uber Eats, and other mobile app-based delivery services. To put the scale of Uber’s influence into perspective, I will use a real-world example. Six months after introducing Uber Eats over 50 per cent of our total company sales were being generated via the App, and in some store cases, this figure is now closer to 90 per cent. This is a pretty standard experience for businesses that have taken up the delivery platform, and for those that haven’t their overall sales
12 Business Franchise Australia and New Zealand
have unsurprisingly plummeted. While it is not immediately obvious why switching from in-store sales to Uber Eats based sales is a bad thing, this industry transition has left operators with two dangerous and distinct problems. Firstly, empty high profile stores that are costing them a fortune in now wasted rent and overheads, and secondly a massive chunk of their sales revenue being taken via the Uber Eats commission. These two factors combined mean that, while sales have never been higher, restaurants have never been emptier, and profits have never been lower. Let’s quickly dissect why industry experts have suggested a decades-long business model has been knee-capped when sales are at an all-time high. Firstly, because the traditional business model has emphasised a heavy investment on high rent high profile and large locations, restaurants are now carrying a massive dead weight in the form of huge rents for restaurants that are essentially empty. Empty restaurants and high rent in itself is not the killer; you don’t need an economics degree to know that it’s bad business practice to put 15 per cent to 20 per cent of your sales revenue into paying the rent for a brand-spanking high profile location that customers are no longer interested in visiting. The biggest issue for current and prospective restaurant operators is the Uber Eats commission. While it is universally understood that customers who order through Uber Eats pay a five-dollar delivery fee in addition to their order value, what customers (and most franchise operators) don’t consider is that Uber Eats also takes up a fee of up to 38 per cent of the sales value from the business. Put another way, from an order of $50, Uber charges up to $19, and your restaurant is left with as little as $31. So overnight, a business model that has evolved slowly and cautiously over decades to balance expenses with sales has been hit with a brand new unavoidable up to 38 per cent overhead. Based on this new metric, you must adapt or die. But, as someone who loves the QSR industry and has worked in it all my life, I had to fall in love with Uber, and now I have absolutely no hesitation in saying that Uber Eats and similar platforms have also created an unprecedented opportunity for business owners. I think about how Uber Eats has transformed the QSR industry as being very similar to how the invention of the automobile transformed the transportation industry. That’s because smart operators who were involved in the industry saw the introduction of cars as a massive opportunity and quickly repositioned their business to capitalise on this new product. Holden is one such great example, instead of watching their sales of horse-drawn buggy
“For 12 months, New York Minute decided not to charge our franchisees a single cent in franchise fees while we designed and implemented a root and branch restructure of our business model.” carriages decline, they partnered with General Motors and started making car bodies instead. I think most business people would agree, Holden’s massive success over the last halfcentury would not have happened had they refused to change with the industry. That’s why at New York Minute we have changed our business model to work with Uber Eats. Delivery is what customers want, and as a QSR professional, I want to provide my customers with what they want. But despite New York Minute’s success, small businesses (including franchisees) are going bankrupt in their droves. They have the sales revenue Uber Eats is delivering, but they are unsuccessfully trying to carve a profit via an outdated business model that has not been built to work with delivery partners. I know the pain that this reality has caused the industry and individuals, because I, along with my franchisees, have experienced it ourselves. We at New York Minute decided that we needed to build a new business model designed specifically to be profitable despite a high percentage of Uber sales because our franchisees and our business were hurting. That’s why for 12 months, New York Minute decided not to charge our franchisees a single cent in franchise fees while we designed and implemented a root and branch restructure of our business model. Of course, we are still evolving, as every successful business must do, but I am proud that we have been able to return every single one of our franchises to profitability. More importantly, our current and future franchise partners now have access to a business model designed to not only
survive a high percentage of delivery orders but to thrive in this space. So, with all of the upheaval our industry has and is experiencing, I would offer you the following advice if you are considering investing in a QSR franchise; Ask the franchisor how their business model is designed to be profitable with 60 per cent to 80 per cent of sales coming via delivery apps like Uber Eats. If they can’t give you a quick and convincing answer to this question that is backed up by existing stores and solid numbers, walk away. Customers have voted with their feet and chosen the Uber Eats delivery model. Though this fact has undoubtedly caused the traditional QSR players much pain, it has also created an unprecedented opportunity for new entrants to make a splash with a modern, updated business model. As a potential investor in your own QSR franchise, the opportunity for prosperity has never been greater provided you pick the right franchise partner. Antony Crowther is the Managing Director of New York Minute Burgers and a 20-year QSR industry veteran. The New York Minute burger concept was born of founder Antony Crowther’s goal of marrying local Australian produce with traditional New York style street cuisine. Today, New York Minute honours its beginnings by fixing a firm focus on providing the best quality burgers in Australia. www.newyorkminute.com.au
Business Franchise Australia and New Zealand 13
Imagine up to
$55,000.00 Per Annum profit for One day per week.
With potential to expand up to
$110,000.00 - $165,000.00 P.A. for 2-3 days per week (after qualifying period).
ness!
Busi l u f s s e c c , New Su 0
New YearLaunching Summer 202
*Please note: Figures shown on this page are averages from recent data, actual results will vary depending on business environments.
Rewarding lifestyle business The Seasons Art Class run part-time, adult art classes throughout the United Kingdom, Europe, Canada and USA are now expanding into Australia through specially selected area licenses. • Currently operating over 150 branches throughout the UK and Europe. • Concept evolved from an artists gallery in in the picturesque village of Arundel. • Now teach thousands of adult students every year (currently over 6,000 every week). • Huge demand, our classes are always booked up to 6 months in advance. • Systemised business and marketing system. • Curriculum specifically designed for beginners and is updated every season as we consistently have returning students (average is 60%) who wish to advance their skills.
Can easily be operated alongside other business, work or family commitments.
“Operating this business is fun, easy and not like work at all.” Expanding through Europe, North America and now, Australia
No experience in art necessary - qualified tutors run the classes. Applicants must be well organised with good communication skills and friendly disposition. Our streamlined marketing program means you hit the ground running. Rapid return on investment up to 100% of your investment back within the first few courses. Only one day per week at the venue, other days you can work from home (hours to suit you and your family). No experience necessary as professional qualified Tutors teach the class. You operate the business in a managerial capacity. We give you hands-on assistance and training every step of the way pre-launch and exceptional on-going support once you are up and running including attendance of your first class.
Boost Your Income and Secure Your Future The courses are for absolute beginners to improvers and are operated on a part-time basis for the students, 3 hour sessions, morning or afternoon on the same day for 14 weeks. The Seasons Art Classes are now looking for licensees in towns and cities throughout Australia, to own and operate their own Seasons Art Class with our total support. We have evolved a very successful business model, and we will make that available to selected area licensees, to follow our proven, comprehensive guidelines and systems. We provide everything and get you off to a successful start within 2-3 months of licence allocation. You will soon be generating a substantial income from your exciting new business.
T th
Everything is included We look after everything for you, Tutor recruitment and training, Venue selection, Franchisee course and business training, Marketing artwork package and all start-up materials are included in Area Licence fee.
Fa
$
Over 150 branches throughout UK and Europe. Teaching over 6,000 Students every week.
The Seasons Art Class is coming to Australia
Your Next Step For Success!
Very fast return on initial low investment Lucrative, enjoyable, rewarding, prestige business 9 Low overheads template means high profits. 9 Minimal hours – maximum return. 9 Cash flow positive from Day 1. 9 Huge demand for art classes in our market. 9 Virtual monopoly business. 9 Figures based on minimal customer base. 9 Only 40 customers every 3 months will generate this profit. 9 Fabulous students who love our courses. 9 Opportunity to reinvest in 2nd and 3rd licenses after qualifying period and double or treble your income.
Don’t wait, opportunities are limited. Find out more about this rewarding enjoyable, lucrative and fun lifestyle business! Investment only of $59,995 +GST Local meetings are currently being organised - call 02-8318 7755 for more information.
This is a complete business in a box. All of our curriculums are updated seasonally by our team of European Master Tutors.
You will be working with one of the biggest and fastest growing markets in the world. The picturesque village of Arundel where it all began. The perfect part-time business, that you can grow to suit your lifestyle. You can run the business from the comfort of your home.
Our Low Overheads Business Template Means High Profit for you... Up to 100% of your investment back in the first few courses.
Year 1 : Up to $55,000 nett profit
for one day per week.
Year 2 : Up to $110,000 $165,000 nett profit for
2-3 days per week (optional investment in 2nd and 3rd area).
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NFC2019
Evolving in a New L andscape Kate Carnell AO
“There’s plenty of practical information on offer in the NFC19 panels, roundtables, and plenary sessions, as well as opportunities to catch up with exhibitors and network with your peers and colleagues at the NFC social events.” Mary Aldred | CEO | Franchise Council of Australia
The FCA membership and events team have recently been putting a huge effort into shaping this year’s National Franchise Convention, which is taking place on the Gold Coast from 20-22 October. Evolving in a new landscape: innovation and transformation is the theme for NFC2019, putting the focus on the fast-evolving franchising and small business landscape. The National Franchise Convention is the largest event of its kind in Australia, bringing together around 1,000 delegates, including franchisors, franchisees, along with suppliers and experts from across the small to medium business sector. Because staying up to date and adapting to change is crucial to not being left behind, NFC2019 is designed to be inspiring, insightful and ultimately valuable. It’s an unmissable event for any franchise system or professional who aspires to best practice and business success.
This year’s keynote speakers include: Pippa Hallas Pippa Hallas has been at the helm of Ella Baché for over 10 years. Since taking on the role as CEO, her task has been to steer the company through some of the greatest disruptions the industry has ever seen, driving the brand into a new era of skincare. Janine Allis Janine Allis is not your everyday self-made businesswoman. She grew her juice and smoothie empire in 2000 from her kitchen bench to Boost Juice an international success story. Janine’s business approach has made her a leader in her field, with BRW listing Janine as one of the top 15 people who have changed the way business is done in the last 25 years. Nigel Collin Nigel Collin is a change and leadership expert. He helps organisations and their people make change happen using a proven framework distilled from original research with 100s of successful businesses that focuses on two areas: mindset and process.
Kate Carnell commenced her role as Australian Small Business and Family Enterprise Ombudsman (ASBFEO) in March 2016. Kate brings extensive experience and knowledge to the role of Ombudsman, having run her small businesses for 15 years before becoming ACT Chief Minister in 1995 for five years. Dylan Alcott Born with a tumour wrapped around his spinal cord, Dylan Alcott overcame a threeyear battle to survive and has been achieving ever since. Dylan is a three-time Paralympic Gold Medallist and four-time Paralympic Medallist in two sports. Every delegate attending NFC2019 will have the opportunity to engage directly with other conference delegates, speakers and exhibitors, gain introductions to potential partners and clients, and hear directly about key issues shaping franchising and small business. There’s plenty of practical information on offer in the NFC19 panels, roundtables, and plenary sessions, as well as opportunities to catch up with exhibitors and network with your peers and colleagues at the NFC social events. The celebration of franchising success at the MYOB FCA Excellence in Franchising Gala Awards Dinner after the NFC19 is the ‘icing on the cake’ for this packed program of knowledge and information sharing. I look forward to seeing you there. NFC2019 website: https:// nationalfranchiseconvention.org.au/ www.franchise.org.au
16 Business Franchise Australia and New Zealand
NFC
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9
G O L D COA ST 2 1 - 2 2 O C TO B E R 2 0 1 9
Evolving in a new landscape: Innovation and transformation
Janine Allis
Pippa Hallas
In a fast-evolving franchising landscape staying up-to-date and adapting to change is crucial. By attending the 2019 the National Franchise Convention you will receive the latest updates on hot topics and relevant changes in franchising. NFC is inspiring, insightful and ultimately valuable. It’s an unmissable event for any franchise system or professional who aspires to best practice and business success.
Keynote speakers Inspiration and insights abound in a keynote program featuring outstanding achievers in their fields, including: Janine Allis Self-made businesswoman and franchising powerhouse Pippa Hallas Ella Baché CEO Dylan Alcott Three-time Paralympic gold medallist Michele Levine Roy Morgan CEO
Dylan Alcott
Michele Levine
Also at NFC19 • Franchisors and industry experts sharing the invaluable learnings from their own business experiences in the NFC19 panel and roundtable sessions, • A vibrant social program providing opportunities to network with your peers and colleagues • Exhibition hall showcasing the latest products, services and technologies available to the sector
Register now nationalfranchiseconvention.org.au For more information call the Franchise Council of Australia on 1300 669 030 or email nfc19@franchise.org.au
Business Franchise Australia and New Zealand 17 NFC19ad_replacement.indd 1
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e x pert a dv i c e
What does the Local Reporter Want From You? something that most businesses overlook, but they’re so simple to find and so simple to sell because the reporter already knows they are of interest. For example, if national real estate figures come out talking about how much house prices have risen over the last month or year, a real estate agent franchisee could comment on whether he or she has noticed a similar trend. Stories like this are gold for local media because they need local stories. By doing this, you are localising national stories. So, whenever a national story focused on your niche comes out, localise it for the community newspaper. It’s simple.
2
Out of the ordinary
The media love to hear about stories that are different in some way. There’s an old saying, “Dog bites man is not a story,” but “Man bites dog is.”
“Commenting on issues that are already topical is the best way for franchisees to get regular coverage in the news pages of community media. Topical issues are something that most businesses overlook, but they’re so simple to find and so simple to sell.” Pete Burdon | Founder & Head Trainer | Franchise Media Training
In the last column, I looked at how to write a press release and email pitch to send to the local reporter. Today we focus on finding the actual story idea to be the focus of that pitch.
What do the media want? It sounds simple, but local media want stories that interest local people and are focused on the local area. When I was a reporter in a small town, I was always surprised how many story pitches I got on topics that would never interest my readers and had nothing to do with my patch. This complaint is common among reporters. The problem is that we all have our interests,
and we assume that others will be equally as interested in our story idea. For example, if you are offering a new service or product, that will be huge for you, but may have minimal interest from the average reader of the local newspaper. That is unless it has a major news hook that would grab the reader’s attention. A news hook is something that makes your idea stand out. It’s what will attract the eye of the reporter purely because he or she will know that it’s something that will interest the audience. In my experience, there are three major news hooks to focus on when pitching a story.
1
Topical issues
Commenting on issues that are already topical is the best way for franchisees to get regular coverage in the news pages of community media. Topical issues are
18 Business Franchise Australia and New Zealand
What could you do that’s out of the ordinary? It could be anything from staff dressing up weirdly on a particular day to raise funds for a worthy local cause to you making an outrageous prediction about something related to your niche. The possibilities are endless here. Just remember that if it’s different, it’s newsworthy.
3
Human interest
These are interesting stories about local people. Do you have staff with an amazing background, someone who has been with the franchise for 50 years, or have you come to this role from something completely different? These are all potential stories in your local paper along with another bottomless pit of possibilities. Hopefully, this gets you thinking and realising how many opportunities there are for you. 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
WORK SMART
NOT
HARD!
IFG 50/50 - A Different Franchise Approach!
NO
Staff Premises Long hours Paper Inventory
WE BUY INVOICES TO ACCELERATE OUR CLIENTS’ CASHFLOW! WE DO NOT LEND MONEY!
GET A FREE eBOOK www.Interfacefinancial.com.au/franchise
AS A FRANCHISEE: s 7ORK IN A MATURE lNANCIAL SERVICE ARENA s 7ORK FROM A HOME BASED ENVIRONMENT s "E PART OF A YEAR OLD INTERNATIONAL ORGANIZATION s 9OUR GROWTH COMES FROM HELPING YOUR CLIENTS GROW s #ONDUCT BUSINESS ON YOUR OWN TIMETABLE s 7ORK ANYWHERE NO TERRITORY s 6IRTUALLY NO PAPERWORK FRANCHISOR HANDLES ALL DAY TO DAY PAPERWORK s .O COLD CALLING TELEMARKETING ADVERTISING OR DIRECT MAIL s 3TART WITH A MODEST WORKING CAPITAL AND GROW AT YOUR OWN SPEED
For more information contact David Banfield, President E: ifg@interfacefinancial.com Business Franchise Australia and New Zealand 19
fo c us feature : interface financial group
The Negative Franchise with a Comfort Zone!
The IFG 50/50 franchise has sometimes been referred to as a negative franchise, not because of the income that franchisees generate but because of components found in a normal franchise that don’t apply to The Interface Financial Group’s IFG 50/50 franchise model. But is there such a thing as a negative franchise?
We are talking about the fact that the franchise requires no employees; no rented or leased premises; no inventory; no long hours; no extensive travel; no paperwork; no advertising; no custom equipment or signage, and - one of our favourites - no hard work, and we could go on. While all these things may be considered by some as negative items purely because they are not a component of the franchise, for others they represent very positive attributes that they are looking for in their franchise search. Individuals transitioning from the corporate world into self-employment and entrepreneurship usually want to travel with as little baggage as possible. They are looking for opportunities that for them are not only a solid business but a business that comes with
20 Business Franchise Australia and New Zealand
a positive lifestyle element – often something that was missing in their corporate life. Invariably transitioning executives have ‘been there – and done that’ when it comes to the long hours and extensive travel. They have all experienced the maze of office politics and endless form filling and report writing and, most of all, they have all experienced the hard work element that they were required to contribute to creating income and profit for somebody else. The IFG 50/50 franchise model is well-tried and tested, but at the same time is very simple. However, the franchise does represent an intangible service, which is sometimes difficult for people to grasp. Talking about a hair salon franchise, or an automotive aftermarket service or a web design business, the candidate
“Individuals transitioning from the corporate world into self-employment and entrepreneurship usually want to travel with as little baggage as possible. They are looking for opportunities that for them are not only a solid business but a business that comes with a positive lifestyle element.”
can readily picture these opportunities based on their own experience. The Interface Financial Group franchisees are engaged in a white-collar professional financial service known as invoice discounting. While invoice discounting has been a financing tool for the business community for many, many years, it is not particularly well-known and certainly difficult to visualise. Put very simply, IFG franchisees work with their business clients to accelerate their cash flow, and this is achieved by buying invoices due at a future date and providing immediate cash for those invoices today. The purchase price of the invoice is naturally slightly less than the face value - the difference representing the discount or income for the franchisee in the transaction. It should be noted that franchisees do not lend money but buy specific current, quality invoices at a discount to provide exponential growth opportunities, not only for themselves but for their clients. Because the transaction is structured as a buy/sell arrangement rather than a loan, it means that the business is not regulated as a lending arrangement might be. Naturally, if there are no regulations, then there are also no reporting requirements for franchisees to concern themselves over. Typically, franchisees are owners/operators and do not require any staff, as all transactions are done in conjunction with the franchisor – another unusual feature since the franchisor engages with the franchisee in every transaction. This franchise is all about money, people and technology; this is where the ‘no hard work’ element comes into play. Because the franchisor is engaged with the franchisee in all transactions, it also means that the franchisor handles all the paperwork involved in the financial transaction with the client. Franchisees are engaged by using their business background and business acumen to work with the franchisor in certain due diligence aspects and financing, while the franchisor handles all of the day-to-day paperwork, administration, bookkeeping, etc. The franchise does not require any specialised equipment, and there is certainly no inventory to buy. Because of the unique way that
franchisees market their service, there is also a ‘no sales’ element to the franchise. This no sales/low sales approach is also another very positive feature that appeals to transitioning executives who rarely see themselves as ‘salespeople ‘. The IFG marketing approach is built on a relationship marketing formula that usually results in the majority of business being handled by franchisees as being business that has been referred to them. Typically, a franchisee would not market to an enduser, but rather work with a trusted local professional lead source. While there are many things that are not components of the franchise, one of the important positive aspects that are included is capital leverage. Every IFG 50/50 franchisee has the opportunity to leverage their capital to create income for themselves on capital that they did not deploy; this translates into working with other people’s money – OPM – and the use of other people’s money in business is an established way to create income on a rapid basis. In his New York Times bestselling book, ‘Rich Dad Poor Dad’, Robert Kiyosaki popularised the idea of using other people’s money – OPM - to build wealth. However, that narrative is focused on obtaining other people’s capital, albeit at a modest cost to make the formula work. The big difference with IFG is that there is absolutely no cost to franchisees to use the leverage component to create an above-average return on their working capital. They get to use the additional capital for free! The Interface Financial Group have created a well-delineated comfort zone for all franchisees. The three main elements of that comfort zone that have outstanding appeal for franchisees are: Firstly, the fact that all transactions are completed as a syndicate of franchisee and franchisor. Both parties have ‘skin in the game’. Neither the franchisee nor the franchisor work in isolation. Secondly, the fact that the franchisor has relieved the franchisee of the paperwork burden is an item of considerable comfort for franchisees – with the franchisor’s extensive history, it means the transactions will be documented in a timely and professional manner every time.
The third element of the comfort zone is naturally the leverage component, whereby franchisees have the unprecedented opportunity to work with the franchisor’s capital at absolutely no cost to enhance their income stream. These three elements that create the franchisee Comfort Zone are very positive in what is sometimes considered a negative franchise. Entrepreneurs making the quantum leap from a paycheck to self-employment need to know that when they leap, they will land on very solid ground. The IFG franchise provides that solid platform in the form of over 45 years of history - over four and a half decades of supplying the discounting invoice service to the business community. Over time, not too much has changed at Interface with regards to the actual service; however, the delivery method and the cosmetics now reflect a very substantial technology ingredient that enables us to do things in a much shorter timeframe, and certainly from a franchisee’s perspective there is no excessive paperwork and no ‘hard work’ - only ‘smart work’. For entrepreneurs and would-be entrepreneurs looking for a franchise that has history and a proven, established system that generates secure income working in a ‘core business hours’ timeframe, IFG represents a very positive rather than negative franchise opportunity with a substantial franchisee comfort zone. For more information please visit: www.interfacefinancial.com.au.franchise
Business Franchise Australia and New Zealand 21
e x pert a dv i c e
The Finance Question! How to Put Your Best Foot Forward
The decision on the best way to finance a franchise business will depend on a wide range of factors, all of which will need to be carefully considered by the applicant. It is always recommended applicants engage with their financier early in the process. They should discuss the equity and cash contribution requirements, estimated loan repayments and other conditions. In this way, any issues can be quickly identified and understood. Outcomes can then be covered off in the business plan, which is the key supporting document. Applicants who are fully transparent at this early stage will have a better understanding of their borrowing capacity and will be less susceptible to surprises later in the process. Anyone considering approaching a bank or other financier needs to understand the loan assessment process and the information they will be required to provide.
“With all requests for finance, providers will look for applicants to fully commit all of their assets in support of the business loans. This would include their house and any other property.” Steve Seddon | Senior Manager Franchising Westpac Banking Corporation
A typical checklist will include
• Copy of proposed lease agreement.
• Comprehensive business plan (refer to comments below).
• All personal tax returns for the last two years.
• A copy of the proposed franchise agreement.
• Last 12 months home loan and personal transaction account statements.
• If a greenfield location, a detailed breakdown of set up costs.
To support an application time needs to be taken to fully understand the business and develop a comprehensive written business plan outlining
• If an existing business, the previous three years accountant prepared financial statements/tax returns plus management accounts covering the period since the end of the last financial year. Also required will be a copy of the business contract of sale, BAS statements (2 years) and tax portal printouts (min 12 months). • A curriculum vitae for all owners including background, experience and qualifications.
22 Business Franchise Australia and New Zealand
• Description of the business • Location and or business territory • If an existing business, detailed purchase price and how this was determined • If a new business, detailed set up costs including stock and working capital requirements
• Historical financial performance • Financial Projections, including detailed assumptions covering 12-24 months. • Historical financial statements with justification for any recommended addbacks to profit. Including depreciation costs, interest expenses etc. to arrive at an adjusted operating profit. • Details of the due diligence process undertaken by the applicant including supporting documentation from an accountant and lawyer who specialise in franchise businesses • Refurbishment and upgrade requirements. • Estimated costs and timing for planned capital expenditure • Impacts of business competition Financiers will require time to meet with the purchaser and understand the business proposal. They will also need to consider the business risks and support provided by the franchisor. Applicants can assist in this process if they prepare for the meeting and able to explain the business plan and provide supporting documentation. Applicants should consider their ability to contribute additional capital should it be required to reduce their risk. This cash may be needed to cover an unexpected event or situation. Financiers are reluctant to lend where the applicant is fully geared and does not have any capacity to raise additional funds should this be required. For example, an unexpected weather event or local issue could temporarily reduce business turnover and impact the applicant’s capacity to meet ongoing obligations to suppliers, landlords, staff, financiers etc. Whether establishing a new outlet or purchasing an existing business ingoing costs and working capital will need to be considered and documented. Landlords may require a bank guarantee to support the lease obligations. Financial requirements to consider include, legal fees, accounting fees, due diligence costs, stamp duty, training, fees levied by the franchisor and retaining a sufficient level of working capital. This working capital should take into account any start-up period and seasonal aspects. The loan term and repayments will depend on the expiry dates of the franchise agreement and lease for premises. The applicant’s cash contribution should be supported by documentation (Bank statements etc.) If the source of the cash contribution is a gift or ‘early inheritance’ this should be supported by confirmation from the donor that the money is not repayable
“Whether establishing a new outlet or purchasing an existing business ingoing costs and working capital will need to be considered and documented.” and without any interest. This information is required to ensure equity ratios and loan repayments can be correctly calculated. Some franchise systems may have a franchisee finance arrangement in place with a financier. This may allow an applicant to borrow using the business assets to secure the loan. These arrangements will vary from financier to financier and situation to situation. The franchisor will be able to advise if these arrangements are in place and provide contact details for the respective franchisee finance specialist. Applicants will still need to provide the information and demonstrate their due diligence and understanding of the business opportunity.
lawyers, brokers etc. it remains the primary responsibility of the applicant to be fully engaged in the process. These key relationships include financiers, landlords, suppliers and the key businesses customers etc. In closing, finance only one part of a business’s financial requirements. Applicants will also need to consider transaction accounts, GST holding accounts, credit card and EFTPOS merchant services, payment and receivable systems etc. These should be discussed as a part of the finance package. Consider the total package and not just the interest rates and fees. Look for a financier who offers a full range of services and is easily accessible.
With all requests for finance, providers will look for applicants to fully commit all of their assets in support of the business loans. This would include their house and any other property.
Additional information is available at Westpac’s Davidson Institute to see website located at https://www.davidsoninstitute.edu. au.
Financiers need to consider all aspects of the applicant’s financial position. This extends beyond the business and includes a detailed analysis of the applicant’s available income and expenditure. This includes personal expenses, living costs, rent/mortgage repayments, credit cards, telecommunications costs, transport costs, education, medical and insurance etc. It will be necessary to provide estimates of these costs, which will be based on historical evidence. This will be used in the assessment process to calculate the capacity to repay the loans sought.
Steve Seddon is Westpac’s, Senior Manager Franchising. He is a CPA and a member of the Franchise Council of Australia’s Western Australian Committee.
Relationships can’t be outsourced. Even when engaging specialist accountants,
Westpac continues a long-term commitment to the franchise sector in Australia. The bank has a national network of franchise specialist business bankers who can assist in the specific needs of the franchise sector. Contact Steve at: 0407 401 892 sseddon@westpac.com.au www.westpac.com.au/business-banking/ industries/franchising/
Business Franchise Australia and New Zealand 23
fran c h is o r in dep t h : CA R PE T CA L L / SO LO M O N S FLO O R I N G
The Experts in the Trade Back in 1975, Jim Smith, the founder and managing director of Carpet Call, opened his first carpet retail store in Alderley in Brisbane’s north. At the time he had to roll out carpet onto the street, quickly prepare and cut while there was no traffic. Times have certainly changed! Jim Smith remains the owner, but now he manages a retail network of over 120 outlets including over 70 successful franchisees, some of whom have owned their stores for more than 20 years. Next year Solomons Flooring will be celebrating 130 years of age and Carpet Call 45 years of age. Carpet Call has extensive retail networks in all mainland capital cities, and fully support
this with state-based administration, support and warehousing facilities. Carpet Call has one of the most recognised brands in retailing and their recognisable jingle ‘Call, call, Carpet Call, the experts in the trade’ is known by practically everyone in Australia. Carpet Call continues to expand and develop markets around Australia and can lay claim to being one of the country’s most successful retail brands. We spoke to Jack McClane, the National Franchise Manager for Carpet Call and Solomons Flooring to find out how the Carpet Call Group has remained so successful in an everchanging market.
What is the secret to the company’s success? Carpet has always been a favourite flooring product of choice for Australians. It’s comfortable, soft and is limitless in its patterns
and colours but there’s no denying that carpet has been somewhat overshadowed in recent years by the growing popularity of hardwood and vinyl floors. Although carpet remains the groups most popular and successful product, the Carpet Call Group specialise in timber, laminates, vinyl planks, sheet vinyl and an all-new hybrid range of flooring. According to Jack, “Modern technology and manufacturing methods means that we have some of the most current and stylish flooring options on offer.” Remaining relevant has been the key to the group’s success, and Jack explains, “This means you must be conscious that change is inevitable and can happen at any time, you must pay attention to the landscape of your industry and know what areas will be the most likely to change.” It was important for the group to expand their offering and remain relevant, so “Most of our stores also offer
“Carpet Call has one of the most recognised brands in retailing and their recognisable jingle...
‘Call, call, Carpet Call, the experts in the trade’ is known by practically everyone in Australia.”
24 Business Franchise Australia and New Zealand
“Carpet has always been a favourite flooring product of choice for Australians. It’s comfortable, soft and is limitless in its patterns and colours but there’s no denying that carpet has been somewhat overshadowed in recent years by the growing popularity of hardwood and vinyl floors.”
Jack McClane
blinds and shutters to complete homeowners’ renovations” says Jack. Advertising has also played a pivotal role in the success of the two famous brands. The consistency of the high impact advertising campaigns across television, catalogues, Google Adwords and flyers means that the selling job has been much easier for the retail stores. The national advertising expenditure is constantly increasing in line with the growth in existing store sales as well as new store openings across Australia.
Innovative shopping experiences By offering a great inhome experience, including free flooring measure, ideas and advice, promotions and expert advice, customers have remained loyal to the brand. The group’s website allows customers to easily browse through the range without having to
leave the comfort of their homes. The ‘Shop at Home’ service means that the teams flooring specialists can also visit the customer with the pre-agreed samples to test in their home or office, making the entire process easier for the customer. People always want to keep their homes looking fresh and modern, and Jack says, “With today’s flooring and windows options, we are finding people are updating their homes more often than ever before. The great thing about our service is that we will bring samples to the customers home for an obligation free consultation to see how the samples look in the customers own home. Does the sample match well with the existing paint colour on the walls? How does it look next to the furniture? Seeing a product in the home in real conditions is a great way to shop.”
Carpet Call sources all their products locally and internationally, cutting out wholesalers and distributors, which means direct savings for their customers. It’s from this global network of suppliers that they can ensure all products meet the highest quality standards across all areas. Jack says “Our buying power is second to none, so customers can be assured we always offer the best prices. We have national warehouse facilities - a warehouse in every mainland capital city - allowing our stock to be delivered fast, when and wherever it’s needed, anywhere in Australia.” Carpet Call has developed the “sales track”, a proven, prepared presentation for all of the group’s salespeople. The sales track is the sales process from start to finish for in-store and inhome sales. It is a series of steps that provide the best chance of sales success and customer satisfaction.
Business Franchise Australia and New Zealand 25
fran c h is o r in dep t h : CA R PE T CA L L / SO LO M O N S FLO O R I N G
“Modern technology and manufacturing methods means that we have some of the most current and stylish flooring options on offer.” - Jack McClane
Franchisees will be fully trained in understanding, appreciating and ultimately mastering the sales track. Carpet Call’s process is easy to follow and focuses on the customer’s needs and importantly allows franchisees to implement their style and personality on the process.
The support system Each state has a dedicated state franchise manager who offers support to the franchisees through training, marketing planning and business coaching to help the franchisee with all aspects of their business. They are there to guide, assist, manage, coach & encourage the franchisee. The critical advantage that franchising has over an independent operation is the reassurance that the franchisee is never alone. Support is never far away. The Carpet call franchise managers are a first-point-of-call, and the administrative, accounting and operational staff are there to support the new business as well. According to Jack, “The managers are one of the most important aspects of your business and are chosen by us specifically for their broad range of business and commercial acumen.” Business skills are tailored to suit the individual needs of each franchisee in the network because, despite the uniform nature of franchising, no two franchisees are ever the same. Joining the Carpet Call family also means direct access to many more fellow franchisees operating in the same system with the same
“By offering a great inhome experience, including free flooring measure, ideas and advice, promotions and expert advice, customers have remained loyal to the brand.”
products. Franchisees are encouraged to connect and support each other. Carpet Call has been Australia’s leading flooring retailer since the early 1980s. Over the years, 10’s of millions of dollars have been spent establishing the Carpet Call brand names. These symbolise experience, trust and consumer confidence, with an enviable reputation for quality, range and genuine value — this position of strength assists in maximising benefit from a franchisees investment. Carpet Call hold over $20 million of carpet, timber, laminate and vinyl stock in their national warehouses. Product is distributed to the franchisee as required. All stock is all handled by the internal computerised stock enquiry and order processing system, meaning franchisees are relieved of the huge financial burden of carrying stock and working capital is not tied up in expensive stock, and there are no short ends or wastage.
Want to get involved? Franchising is growing and will continue to grow. To a prospective business person, the advantages of franchising are numerous, with some of the inherent dangers in small business eliminated. Franchising provides advantages to persons not previously experienced in business or management and allows them to enter into a successful business system. Jack says, “We are looking for franchisees who
26 Business Franchise Australia and New Zealand
want a great job and work/life balance; people who can represent our brands with the utmost professionalism and passion. Previous industry experience isn’t necessary rather a positive attitude and willingness to work hard on their business is always something we are searching for.” The initial entry cost into the Carpet Call franchise system is extremely low which means potential franchisees can use their valuable capital for the important aspects of the business – positive cash flow, adequate working capital, store set up and signage, local promotion and advertising.
What are you waiting for? The group have plenty of opportunities across Queensland, New South Wales and Victoria, particularly in Brisbane, Gold Coast, Sydney, Newcastle, Melbourne and Wollongong waiting for the right franchisee. There are also plenty of regional opportunities across the country. The Carpet Call Group believes that the franchise system is a true business collaboration between franchisor and franchisee. Want to find out more? Contact Jack McClane, National Franchise Manager at: 0402 791 187 jack.mcclane@floorstores.com.au www.carpetcall.com.au/about-us/franchises/
BUILD YOUR FUTURE BUILD YOUR FUTURE WITH A RETAIL ICON WITH A RETAIL ICON
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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 27
e x pert a dv i c e
Data and Analytics Can Help Franchisees Stand Out Retailers in the franchise system can face growth challenges in a changing and competitive business market, and franchise managers and store owners must choose the right technology to remain relevant, unique, and attractive to customers. Data and predictive analytics tools are helping retailers across the globe to cater to customers’ specific and changing tastes and boost sales in smart, accessible ways. Delayed growth can often help disillusion retailers in the franchise system. Attracting and maintaining customers with relevant and enticing products and services while consistently abiding by brand visions, values,
“Data and predictive analytics tools are helping retailers across the globe to cater to customers’ specific and changing tastes and boost sales in smart, accessible ways.” Lesley French | General Manager Australia and New Zealand | MicroStrategy
and direction is a challenge for franchise retailers.
Personalisation Customers increasingly appreciate personalised shopping experiences, with 91 per cent of consumers claiming a preference to shop with brands that remember their purchasing habits and preferences. Retailers that offer customers personalised shopping experiences and suggestions aligned to their interests and needs are onto a winning
strategy, with studies revealing that customers are more likely to pay higher prices on products during personally catered in-store or online shopping experiences. Irrelevant and repetitive shopping experiences bore and frustrate consumers and can even drive them away. Customers are looking for options that fall in line with their tastes while also being new and diverse. Ensuring that purchase suggestion are exciting and relevant keeps customers interested and prevents them from straying to other brands or stores for more varied shopping experiences. These fine-tuned sales strategies are proven to keep customers coming back and retailers growing.
Data-driven strategies Most franchise businesses possess significant amounts of customer data that, if used judiciously, can help them offer customers timely and clever purchase suggestions that adhere to branding requirements. Applying predictive analytics powered by artificial intelligence (AI) to customer data can help retailers predict what types of products their consumers are likely to purchase, when, and at what price. AI applies computational processes to existing consumer data collected through customer feedback forms, membership details, loyalty and rewards cards, mailing list information, and previous online and in-store purchases. Emerging technologies can analyse this data and provide retailers with essential insights into customers’ upcoming purchasing needs. These technologies can even reveal information, such as customers’ socio-
28 Business Franchise Australia and New Zealand
economic backgrounds, locations, and varied demographics to influence successful sales strategies. AI and predictive analytics can offer franchise businesses of all sizes, significant opportunities for growth. Smaller businesses and retailers should know that data analytics platforms and technologies can be highly accessible and cost-effective, rather than a tool reserved for larger organisations with more resources. AIpowered tools can be an important catalyst in retailers’ growth and success stories. Retailers engaged in data-driven purchasing experiences are at a critical strategic advantage. Not only can predictive analytics help retailers provide the right products to their consumers, but it can also indicate ahead of time what customers need. In many cases, this means retailers can forecast what customers will want before the customer knows it. This insight can help retailers make evidence-based decisions regarding inventory with confidence. And beyond sales, these products will likely motivate customers to remain loyal to franchises and brands.
“Getting into the minds of customers is increasingly essential for franchise managers and store owners who want to provide better shopping experiences for their customers, which will, in turn, drive sales and business success.” personal factors carry profound meaning, and machine learning can help retailers connect these details so they can recommend appropriate products and make new sales. Rewards and loyalty programs that record customers’ purchases build a purchase history with details like home address, age, and job. This data can help retailers identify how much consumers have paid for certain items, and the time of year, month, or the day the transaction took place.
Data analysis
Analysing this data also helps retailers predict other purchase drivers such as when and where customers are going on holidays, activities and hobbies they’re engaged in, and the types of entertainment they consume, and connect this information to realistic price points about customers’ jobs and locations. In this way, retailers are bound to please consumers with relevant products that fall within their budget, ahead of time.
Importantly, the more relevant data franchise owners and store managers can collect and analyse, the stronger their insights into consumer shopping habits will be. Data analysis can develop accurate stories about individual customers and customer sub-groups, helping retailers understand the many variables that drive store sales. Elements like location and income are likely to drive purchases. However, the reasons behind customers’ product purchases often occur subconsciously as a result of emotions, impulses, background, and culture. These
Variables like customers’ ages, careers, gender, and families can also help retailers form an understanding of their various customer segments’ needs, identifying where the highest number of sales and interest lies, and which customer groups will be best catered to by the business. Age or gender groups purchasing fewer items or at lower prices can prompt retailers to enact targeted sales strategies aiming to retain and satisfy, existing customers exhibiting a lack of interest. For retailers in the franchise system, retaining customers is essential for growth.
Value Predictive analytics and data analysis is highly valuable for retailers catering to a vast range of customer bases. Getting into the minds of customers is increasingly essential for franchise managers and store owners who want to provide better shopping experiences for their customers, which will, in turn, drive sales and business success. And despite the hype and technology jargon, predictive analytics tools can be particularly beneficial, cost-effective, and easy to use for small businesses. Retailers must use the data they already have to generate meaning and accelerate growth. Lesley French is general manager for Australia and New Zealand (ANZ) at MicroStrategy. She leads the company’s local team to drive growth across the ANZ market, manage sales and alliances, marketing and business development, and more. Lesley also works to strengthen MicroStrategy’s local executive customer relationships. MicroStrategy is a leading worldwide provider of enterprise analytics and mobility software and services. MicroStrategy 2019 delivers modern analytics on an open, comprehensive enterprise platform designed to drive business results with Federated Analytics, Transformational Mobility, and HyperIntelligence.
Business Franchise Australia and New Zealand 29
Darryl Morris
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food & beverage
VOL 13 ISSUE 06 sep/oct 2019
food and beverage
& the digital world
high risk:
workplace safety in the franchised food and beverage sector
ensuring your business is the main meal
wage noncompliance
a cost your business can’t afford Business Franchise Australia and New Zealand 31
what’snew! DOMINO’S DELIVERS PLANT-BASED PIZZAS the joy of pizza, regardless of their religious, ethical, dietary or lifestyle choices,” he said. “Our existing Beef & Onion pizza is among our top five most popular pizzas nationally, and beef is our second highest selling topping – so we already know it’s a product our customers love. “We set out to share this love by serving up a range of tasty plant-based pizzas that offers our customers more choice at no extra charge. “I’m excited to share that after nine months of developing and testing, we’ve finally done it and we couldn’t be more proud of the result.”
Domino’s Pizza has announced it will be the first pizza chain in Australia to launch plant-based pizza, which means now everyone can share in the joy of pizza. The Company is adding a range of new pizzas, which will start with plant-based Beef & Onion, plant-based Beef Loaded Burger and plantbased Beef Taco Fiesta. Domino’s Australia and New Zealand CEO Nick Knight said Domino’s is committed to offering high-quality pizzas for a great value that everyone can enjoy. “Pizza is our passion, and we want to ensure that everyone can share in
Domino’s Global Development Chef Michael Treacy said Domino’s partnered with Australian companies to develop its plant-based ingredients exclusive to Domino’s. “Developed and made right here in Brisbane, our plant-based ingredients were created especially for us and can’t be found anywhere else on the planet,” he said. “Made from soy protein, our plant-based beef is free from artificial preservatives, flavours and colours, and is lower in saturated fat and higher in protein than its meat counterpart.” The plant-based Beef & Onion, plant-based Beef Loaded Burger and plant-based Beef Taco Fiesta will be available in all Domino’s stores across Australia from September, with more tasty plant-based products in development.
Soul Origin announces National Barista Champion for 2019 Some of Australia’s best baristas and latte artists came together to battle it out for the title of Soul Origin’s National Barista and Latte Art Champion for 2019. This year marked the network’s biggest competition yet with over 150 baristas across the country participating in the Barista and Latte Art Competition. The top 10 baristas and top eight latte artists from across Australia were flown to Sydney to compete in the national finals. Finalists were critiqued by a panel of notable judges including Australian Latte Art Champion 2018 Shinsaku Fukayama, current Australian Latte Art Champion 2019 Jibbi Little and National Accredited Judge for ASCA Jane Clark. Sherwin, the multi-franchise owner, was crowned National Barista Champion for 2019 for the second year running, winning an allexpenses-paid trip to either Origin or Italy to visit the La Marzocco factory for a coffee education experience. Danya, a local barista from Parramatta NSW was crowned National Latte Art Champion 2019 winning a personal latte Art master class with Shinsaku Fukuyama – one of Australia’s premier latte artists. “Soul Origin was thrilled to celebrate our National Barista Finals in Sydney. Thank you to all of our talented baristas, judges and the hardworking Soul Origin team for organising such a wonderful worldclass coffee event. It was great to see so many coffee lovers and Sydneysiders there to celebrate with us on the day. We were so impressed with the extremely high standard of competitors this year which reflects
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Soul Origin’s commitment to excellence” says Soul Origin National Barista Trainer, Sam Taylor. Now in its fourth year, Soul Origin’s National Barista Competition recognises the best baristas across Australia and celebrates the network’s commitment to serving the best coffee to customers. www.soulorigin.com.au
First Dual Drive-Thru in Brisbane Suburbs for Zarraffa’s Specialty coffee retailer, Zarraffa’s Coffee, has opened its doors to its first dual drive-thru in the north Brisbane community of Hendra. The new dual lane drive-thru will provide customers with a shorter wait time and easy entry and exit at any time of the day, catering for all people on the go, such as parents, workers and travellers. The store is situated along the busy vehicular strip, connecting Brisbane and the Sunshine Coast and close to Brisbane airport, servicing the major suburbs of Ascot, Hamilton, Eagle Farms, Albion, Nundah and Hendra. Run by an experienced franchisee group, who have spent the past 13 years, the Hendra store will be ready to welcome coffee lovers from day one. “It has been an amazing 13 years so far as part of the Zarraffa’s family,” said franchisee, Hemal Keniya. “The constant help and support over the years have allowed us to expand our footprint into the Brisbane area and we couldn’t be more thrilled to bring great coffee to such a busy part of north Brisbane.” Zarraffa’s will employ over 20 locals, backed by an experienced management team, to run the new Hendra store, as they work to deliver exceptional customer service with a friendly smile and the perfect cup of coffee. “Our experience has taught us about the importance of providing
excellent customer service and product, especially in the faster pace drive-thru environment,” said Hemal. “We are excited to deliver customers a fantastic experience when passing through our new dual lane drive-thru.” CEO of Zarraffa’s Coffee, Marnie Sheldon, said that while the location is an important component when opening a new drive-thru, it is equally important that the store is managed by a team of highly trained professionals who strive for success. “Hemal and his team have come such a long way since opening their first store back in 2006,” said Marnie. “Hendra is located in the vicinity of major roads servicing over 100,000 cars each day, and it will be their strong franchise experience that will ensure the new dual-lane drive-thru experience is a success.”
Monkey King Thai expands to Melbourne with its first franchise location food in an exclusive location which will be officially announced later this year. Founder and CEO, Top.K said, “I’m delighted that my business has successfully grown into a five restaurant network, including the exciting launch of our brand into China. Melbourne was naturally the next step for us, and we’re pleased to share our brand with more people.
Monkey King Thai, a popular Sydney-based Thai restaurant with three busy locations, has made an exciting move interstate and granted its first franchise in Melbourne. The family-oriented network has three restaurants along the North Coast of Sydney in Balgowlah, Lindfield and Narrabeen, and a recently launched restaurant in Shanghai which opened its doors earlier this year. Their move to Melbourne is part of their exciting growth plans around Australia. Melbourne is known for its delicious and diverse cuisine, and eager diners will be able to experience Monkey King Thai’s authentic Thai
I am successfully bringing our amazing flavours to Melbourne with our first franchisee. We now have a system that attracts quality franchisees and ensures that my team can support and guide our franchise partners to the very highest level. I’m looking forward to our growth over the coming years with many more franchisees to join the network!”. James Young, Head of Franchise Sales at DC Strategy, said, “It’s been a great experience working with Top and helping to bring his vision of a franchise network to life. After the success of the restaurants in Sydney and opening in China, the network’s first franchisee is excited about opening a new restaurant in Melbourne. We’ve carefully selected a prime location, which we know will deliver in bringing customers through the door.” www.monkeykingthai.com.au
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FE AT U R E A R T I C L E
Food & Beverage and the Digital World
New and emerging technology has dominated the news for its disruptive capabilities in many of the world’s industries for the past few years. From agriculture to the automotive industry to food and beverage, automation technology, artificial intelligence, personalisation and social media has altered the landscape of how we manage our businesses. With the digital world connecting all of us, we look at some of the emerging trends in the food and beverage sector.
Embracing a cashless system With a huge variety of different payment options available these days and new options continually emerging, consumers are carrying cash less often. Between the cashless trend and the risks associated
with keeping cash in-store, more and more businesses are choosing to go cashless. Earlier this year, in an Australian first, 7-Eleven Australia launched a completely cashless and card-less concept convenience store in Melbourne’s inner suburb of Richmond. Catering to the idea that ‘nobody likes to wait’ the store’s format eliminates queues and allows customers to shop and complete their transactions through an app available on their smartphone. Instead of processing transactions, staff members can focus on greeting and assisting customers. Domino’s Pizza has also followed suit announcing it would be trialling the ‘tap and take’ only payment model at five Australia stores, in a bid to provide a faster and more convenient experience for its customers. The company’s trial stores will accept all forms of payment except cash. So, what are some of the pros of going cashless? There is a lower risk of theft and fraud, both internally and externally. Offering a variety of cashless payments will open your business to more customers. Transactions will be faster, and staff can
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focus on customer service instead of only processing payments. A completely cashless store will be safer for staff. Of course, there are also cons to going cashless, some consumers will still prefer to pay with cash, so if you were to go completely cashless you might lose their business. Any problems with technology may also mean customers don’t have access to their money or digital wallet. The elderly and those without access to technology may have difficulty paying or accessing their funds.
Payment platforms As a growing number of consumers turn towards digital and flexible methods of payment to purchase the goods they love, more businesses are getting on board with payment platforms like Zip, Afterpay and Apple Pay to remain relevant, competitive and profitable. By partnering with payment platforms, businesses can offer their customers a new way to pay either instore or online without the need for cash or cards. Payment platforms are in the business of
Mobile payment services and mobile wallets like Apple Pay are now widely available and provide secure, cash-free and effortless payments. In developing and developed countries that are using cash less often, mobile devices are becoming the most common tools for payments.
Adoption of cryptocurrency A cryptocurrency is an alternative payment to cash, credit cards, and any other payment methods. The technology built behind the currency allows you to send your payment directly to another person or business without going through a third party like a bank. The most talked-about cryptocurrency is, of course, Bitcoin but there are several other popular cryptocurrencies in the market.
“Consumers of today are highly engaged with technology when deciding on a place to dine out and can readily see what is on the menu, reviews of the service, food and atmosphere and provide feedback for other customers.”
Australian fast-food chain, Origin Kebabs has been trialling the use of cryptocurrency payments at four of its Queensland stores for several months, allowing customers to pay for meals using bitcoin and other digital currencies. Independent Grocers of Australia (IGA), have recently also started to offer customers the opportunity to pay for groceries and other items in bitcoin and other cryptocurrencies. Both companies are aiming to serve the evolving needs of customers and are at an innovative position in the Australian market, so watch this space!
“The term foodie describes not only those who eat at the most exclusive restaurants but those who carefully craft and arrange photos of their burger for Instagram.”
Food delivery services It was only a few years ago that homedelivery was limited to pizza and Chinese, but now as technology continues to evolve and connect us all, the concept of homedelivery has completely changed. Thanks to smartphone applications, such as Uber Eats, Menulog and Deliveroo, customers can have the restaurant experience in the comfort of their lounge room. From McDonald’s to Hog’s families can order food from almost any restaurant at the tap of a button on their smartphone. While convenience and variety offered by online food delivery services is the greatest appeal for consumers, let’s hope that the dining out experience, meant to be shared with family and friends isn’t lost completely.
The age of the foodie We celebrate what we eat and how we eat it like never before. The term foodie describes not only those who eat at the most exclusive restaurants but those who carefully craft and arrange photos of their burger for Instagram. As the foodie culture has exploded so too has the need for businesses to adapt to this trend. With the age of the foodie, there comes more of an emphasis on food quality and presentation. Earlier this year, Domino’s Pizza set out to drastically improve product quality and consistency throughout all their stores across Australia and New Zealand by launching a world-first technology called DOM Pizza checker.
This technology was introduced to tackle one of the company’s most common customer complaints that my pizza doesn’t look right! DOM Pizza Checker has addressed this complaint by ensuring that only the highest quality pizzas leave the restaurant, even in busy periods, eliminating inconsistency in product quality. The technology has now used artificial intelligence and machine learning to successfully scan more than 13 million pizzas across Australia and New Zealand; boosting product quality scores by more than 15 per cent (as rated by customers) since its launch.
Free-from movement The free-from movement is one of the
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disrupting credit card payments and aim to be everywhere a consumer would consider paying for items on plastic, whether that’s paying for lunch, buying an outfit or advertising to sell your car. Well known food and beverage franchises Grill’d and Schnitz have recently signed onto Zip allowing their customers to choose how they would like to pay for their meals.
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FE AT U R E A R T I C L E
“While convenience and variety offered by online food delivery services is the greatest appeal for consumers, let’s hope that the dining out experience, meant to be shared with family and friends isn’t lost completely.” fastest-growing trends in Australia. Foods with health, lifestyle and ethical attributes such as gluten-free, no added hormones, free-range, plant-based and vegan have become more mainstream. The emerging trend is not driven solely by allergies or dietary intolerances, but by those who are wanting to make healthier lifestyle choices. It is becoming vital for businesses to offer customers more vegan, plant-based and vegetarian options. Mad Mex and Domino’s restaurants both now offer plant-based alternatives on their menu’s including chicken and meat substitutes and vegan cheese. Domino’s decision to add vegan cheese followed a survey on their Facebook page late last year to investigate demand for the product across Australia; they received an overwhelming response from the public. In an age where consumers can access information at their fingertips about their health and nutrition, the free-from trend is one to watch very closely.
Social media Social media has changed the world of marketing, and consumers are empowered more now than ever before. Your potential customers can do their research before they decide to do business with you or decide not to. For many consumers, an online review is as equally important as a recommendation
from a friend or family member. Your potential customers see first-hand reviews from people they know personally on their social media accounts. Social media has just become another avenue for word-of-mouth reviews.
the same strategy from print advertising to digital, and the same is true for social media platforms. Ensure you use high-quality images, a video where possible and remember to interact with your customers online.
Consumers expect quality food but also quality service. Business owners must acknowledge that every person walking into their business has a mobile phone with several ways to review their place of business. Consumers of today are highly engaged with technology when deciding on a place to dine out and can readily see what is on the menu, reviews of the service, food and atmosphere and provide feedback for other customers.
Where to now?
You must have a unique, thought out social media strategy for each social media platform that you are active. You can’t apply
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Emerging technology and trends can be both exciting and intimidating, so it’s crucial to be open to new information, inventive approaches, and progressive technology. The way we manage our business is changing at a rapid pace, so you need to be receptive to new technology and keep an eye on the latest news and emerging trends. Regularly compare and benchmark yourself against competitors and industry leaders to stay on top of current innovations, to ensure you’re not left behind!
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NEW YORK MINUTE DELIVERING PROFITS WITH UBER EATS
As a small business owner with over 20 years’ experience in the quickservice restaurant (QSR) industry, I know how daunting starting your own business can be. Betting the farm (or in most cases the family home) on the success of a retail food outlet
can be terrifying, and with the current upheaval being experienced by the food and beverage industry, it should be. I say that because the QSR industry and the franchises that operate in that space are scrambling to survive the single biggest shake up the industry has ever experienced.
The rise of the mobile delivery app Until very recently, QSR operators needed to keep a close eye on expenses such as wages, cost of goods, and overheads, but these factors
have largely remained stable and predictable. Therefore, the main job of any franchisee was to ensure that they were generating enough sales which, if they were, would yield an industry-standard profit margin of between 10 per cent to 20 per cent. That’s why successful franchise brands have traditionally invested heavily in large restaurants located within high profile but expensive locations such as shopping centres. In the past, this model has increased brand exposure and, by extension, profit margins. Beyond that, the main thing that kept people like me and other small business owners awake at night was monitoring the overall health of the economy and hoping that consumers remained motivated to spend some of their hard-earned cash on a burger or two every week. However, all that has now changed, and what was good practice and a profitable business model two years ago is now a roadmap to bankruptcy. In a nutshell, this is because of the customers’ preference and the advent of Uber Eats, and other mobile app-based delivery services. To put the scale of Uber’s influence into perspective, I will use a real-world example. Six months after introducing Uber Eats over 50 per cent of our total company sales were being generated via the App, and in some store cases, this figure is now closer to 90 per cent. This is a pretty standard experience for businesses that have taken up the delivery platform, and for those that haven’t their overall sales
12 Business Franchise Australia and New Zealand
have unsurprisingly plummeted. While it is not immediately obvious why switching from in-store sales to Uber Eats based sales is a bad thing, this industry transition has left operators with two dangerous and distinct problems. Firstly, empty high profile stores that are costing them a fortune in now wasted rent and overheads, and secondly a massive chunk of their sales revenue being taken via the Uber Eats commission. These two factors combined mean that, while sales have never been higher, restaurants have never been emptier, and profits have never been lower. Let’s quickly dissect why industry experts have suggested a decades-long business model has been knee-capped when sales are at an all-time high. Firstly, because the traditional business model has emphasised a heavy investment on high rent high profile and large locations, restaurants are now carrying a massive dead weight in the form of huge rents for restaurants that are essentially empty. Empty restaurants and high rent in itself is not the killer; you don’t need an economics degree to know that it’s bad business practice to put 15 per cent to 20 per cent of your sales revenue into paying the rent for a brand-spanking high profile location that customers are no longer interested in visiting. The biggest issue for current and prospective restaurant operators is the Uber Eats commission. While it is universally understood that customers who order through Uber Eats pay a five-dollar delivery fee in addition to their order value, what customers (and most franchise operators) don’t consider is that Uber Eats also takes up a fee of up to 38 per cent of the sales value from the business. Put another way, from an order of $50, Uber charges up to $19, and your restaurant is left with as little as $31. So overnight, a business model that has evolved slowly and cautiously over decades to balance expenses with sales has been hit with a brand new unavoidable up to 38 per cent overhead. Based on this new metric, you must adapt or die. But, as someone who loves the QSR industry and has worked in it all my life, I had to fall in love with Uber, and now I have absolutely no hesitation in saying that Uber Eats and similar platforms have also created an unprecedented opportunity for business owners. I think about how Uber Eats has transformed the QSR industry as being very similar to how the invention of the automobile transformed the transportation industry. That’s because smart operators who were involved in the industry saw the introduction of cars as a massive opportunity and quickly repositioned their business to capitalise on this new product. Holden is one such great example, instead of watching their sales of horse-drawn buggy
“For 12 months, New York Minute decided not to charge our franchisees a single cent in franchise fees while we designed and implemented a root and branch restructure of our business model.” SP
carriages decline, they partnered with General Motors and started making car bodies instead. I think most business people would agree, Holden’s massive success over the last halfcentury would not have happened had they refused to change with the industry. That’s why at New York Minute we have changed our business model to work with Uber Eats. VOL 13 ISSUE 06 SEPT/OCT Delivery is what customers want, and as 2019 a QSR professional, I want to provide my customers with what they want. But despite New York Minute’s success, small businesses (including franchisees) are going bankrupt in their droves. They have the sales revenue Uber Eats is delivering, but they are unsuccessfully trying to carve a profit via an outdated business model that has not been built to work with delivery partners. I know the pain that this reality has caused the industry and individuals, because I, along with my franchisees, have experienced it ourselves. We at New York Minute decided that we needed to build a new business model designed specifically to be profitable despite a high percentage of Uber sales because our franchisees and our business were hurting. That’s why for 12 months, New York Minute decided not to charge our franchisees a single cent in franchise fees while we designed and implemented a root and branch restructure of our business model. Of course, we are still evolving, as every successful business must do, but I am proud that we have been able to return every single one of our franchises to profitability. More importantly, our current and future franchise partners now have access to a business model designed to not only
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survive a high percentage of delivery orders but to thrive in this space. So, with all of the upheaval our industry has and is experiencing, I would offer you the following advice if you are considering investing in a QSR franchise; Ask the franchisor how their business model is designed to be profitable with 60 per cent to 80 per cent of sales coming via delivery apps like Uber Eats. If they can’t give you a quick and convincing answer to this question that is backed up by existing stores and solid numbers, walk away. Customers have voted with their feet and chosen the Uber Eats delivery model. Though this fact has undoubtedly caused the traditional QSR players much pain, it has also created an unprecedented opportunity for new entrants to make a splash with a modern, updated business model. As a potential investor in your own QSR franchise, the opportunity for prosperity has never been greater provided you pick the right franchise partner.
NEW YORK MINUTE
Antony Crowther is the Managing Director of New York Minute Burgers and a 20-year QSR industry veteran. The New York Minute burger concept was born of founder Antony Crowther’s goal of marrying local Australian produce with traditional New York style street cuisine. Today, New York Minute honours its beginnings by fixing a firm focus on providing the best quality burgers in Australia.
DELIVERING PROFITS WITH UBER EATS
www.newyorkminute.com.au
SPECIAL FEATURE
FOOD & BEVERAGE
Business Franchise Australia and New Zealand 13
FRANCHISES
THE FINANCE QUESTION
HOW TO PUT YOUR BEST FOOT FORWARD
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e x pert adv i c e
High Risk:
Workplace Safety in the Franchised Food and Beverage sector
The Problem for the Food and Beverage Businesses are the top hazards for the foodservice industry:
“The franchisor and franchisee must commit together by identifying hazards, documenting policies related to health and safety, and using a system to capture issues and their resolutions.” Chris Beasley | Managing Director | Safety Navigator
• Manual handling • Slips, trips and falls • Burns and cuts • Customer and client violence
Reasons
Safe Work Australia recently stated that the incidence rate for the food services industry is 38 per cent higher than the average rate for the Australian workforce, with a rate of 58.6 per 1000 workers having a serious incident in the workplace every year.
For those who operate in this sector, that statistic is probably no surprise, given the working environment is typically busy, dynamic with a customer focussed, responsive mindset. This article looks to list the reasons why workers in the food and beverage sector are more likely to suffer workplace injuries, and what may be done to reduce this statistic.
Risks Let’s look at a few reasons why there is a higher rate of workplace incidents in the food and beverage sector. According to Safe Work NSW, the following
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These hazards relate closely to the following factors, while although not necessarily unique to food and beverage, are key factors in most businesses in this sector: Extreme Environmental factors: Back of house is both a ‘hot’ working environment - the kitchen, and a ‘cold’ environment - the cool room. Constant exposure to one or both can lead workers to feel fatigued, and can temporarily break down parts of the immune system. Equipment and Machinery: Working kitchens with sharp knives, moving machinery, doors opening and closing. Fatigue: Shift work and exposure to a ‘hot’ and ‘cold’ working environment can lead to fatigue
Transient workforce: A small food and beverage business would typically have only a handful of permanent staff. A reliance on casual staff can lead to high turnover, low uptake and outcomes on training delivery and a possibly a lower adherence to policy, particularly as it relates to health and safety. Over-reliance on ‘training’: Training is ‘key’. That statement goes without saying, but there are many examples of where - and in the franchised food and beverage industry in particular - head office may over-rely on training at the expense of key systems. If you don’t have a robust health and safety system in place, endorsed by Franchisor and tracked by them, what’s the point of training? Customers: Customers are the moving, demanding, and ever-changing variable in every food and beverage business. The unpredictable nature of dealing with members of the public can lead to a higher risk of several hazards to staff.
Potential Solutions So now we’ve identified some of the key issues and hazards relating to the sector, let’s now examine some potential solutions. Workplace Inspections to Identify all hazards and risks: A regular workplace inspection schedule should be in place at any rate, but a comprehensive ‘audit’ of all hazards and risks, with the involvement of staff, is a must. Once all the potential hazards are identified, the business can assess the risk of each and put a risk register in place, with an action plan.
“Shift work and exposure to a ‘hot’ and ‘cold’ working environment can lead to fatigue”
“A regular workplace inspection schedule should be in place at any rate, but a comprehensive ‘audit’ of all hazards and risks, with the involvement of staff, is a must.” A safety system: A safe system of work, including policies and procedures, a training plan, and a risk management system gives a structure to allow the identification and resolution of hazards to be quicker, more transparent, and less costly. Training: With a particular focus on manual handling and customer relations. Subscribe to Industry publications and join industry groups, some of these include: • Australian Hotels Association • Australian Retailers Association • Restaurant and Catering Industry Association • Franchise Council of Australia • Safe Work Australia
Summary For those of us who work in the food and beverage sector, the benefits can be tremendous, including a high energy working environment, the social benefits, and (possibly) discounted food and drink. But the statistics don’t lie, and they suggest this sector is one of the more higher-risk workplaces to work. While this article outlines some of the key hazards and some proposed solutions to decrease the risk of an incident occurring in the workplace, one key point needs to be stated here; the franchisor and franchisee must have an open line of communication to discuss and resolve health and safety issues. Unfortunately, some franchisors believe a health and safety commitment in the organisation starts and stops at ‘training’, but training is not even half of the total solution. The franchisor and franchisee must commit together by identifying hazards, documenting policies related to health and safety, and using a system to capture issues and their resolutions. By doing this, the risks relating to working in the food and beverage sector will certainly decrease. Chris Beasley is Managing Director of Safety Navigator, a cloud-based WHS system with over 10,000 Australian and New Zealand business customers, many of whom are Franchise Organisations chris.beasley@safetynavigator.com.au www.safetynavigator.com.au
Business Franchise Australia and New Zealand 39
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“Statistics don’t lie, and they suggest this sector is one of the more higher-risk workplaces to work.”
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fran c h is o r in dep t h : Fa s t a Pa s t a
Celebrating 35 Years of Franchising Success
This year, Fasta Pasta celebrates 35 years of successfully delivering authentic home-cooked pasta as well as a variety of other dishes, great service and affordable prices. This has seen the restaurant chain gain widespread popularity. “To win this national award in the year of our 35th anniversary proves we are offering a level of service to our customers that is up there with the best in the country.” Mr Frank Taddeo, Chief Executive Officer, Fasta Pasta.
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Today, Fasta Pasta continues to focus on fresh pasta and also new contemporary Italian inspired dishes using premium local ingredients. The result is food that’s full of flavour and outstanding value for money. Offering such value keeps customers and franchisees happy. In 1984, seven Italian families established Fasta Pasta with a mission to be ‘the leading best value local Italian restaurant chain in Australia’. Today, the same seven families own the Fasta Pasta brand.
FE ATUR E : Foo d a n d B e v er ag e fr a nch ises There are currently 19 select outlets and soon to be 20 across the country, creating plenty of opportunities for more franchisees to join and share in the ongoing success.
Times are a-changing Over the past few years, fine dining has become less exclusive while fast food, pubs, clubs, bars and cafes are all trying to deliver a better dining experience. The middle of the market, casual dining, is growing bigger each year. This is where Fasta Pasta is a recognised and established brand. It has the ability, the means, and the know-how, to deliver the memorable casual dining experiences Australians are now looking to enjoy.
Some things change, others don’t Recently, Fasta Pasta has made some changes so the brand is more contemporary and reflects the current environment around casual dining. It has a new logo and a new look menu while the marketing, advertising and promotion are now more engaging across multiple channels and platforms. It has refurbished its restaurant at Reynella, opened a new restaurant at Mawson Lakes and will soon open another at Elizabeth. The clean design and simplicity inherent in this new look epitomise the style and ease people are now looking for in this market segment. Fasta Pasta has changed some things to make
the business stronger, but the foundation stones of this 35-year success story have never changed. It still has an unwavering commitment to its core values of quality food, great service and affordable prices.
Customer satisfaction second to none Fasta Pasta won the Quick Service Restaurant (QSR) of the Year 2018 in the prestigious Roy Morgan Customer Satisfaction Awards. It has won this award three times in eight years and is the only QSR group to win it more than once. These wins have great merit because of the highly competitive nature of the QSR category, or casual dining segment. Through Fasta Pasta’s commitment to providing excellent service and satisfying customers, it has consistently outperformed others in the QSR category.
Central to success The success of the Fasta Pasta concept is built around a central food kitchen. From day one, it has produced a consistently high-quality product using premium local ingredients from vegetables to meats and dairy. All their pasta is fresh. The central kitchen has enabled Fasta Pasta to always produce a consistent and wide variety of fresh pasta, sauces, condiments, soups, pizza and new contemporary offerings to keep pace with the ever-changing tastes of customers.
“Having worked for Fasta Pasta at the restaurant level, I could see first-hand the style of company it was, in the way, they conducted themselves both with the public and also with the support they gave to the franchisees. It is rewarding to achieve your goals in business, knowing you have the support of a strong, respected company behind you.” Alinta Elson, Fasta Pasta Franchisee.
The local ingredients of success Fasta Pasta uses premium local ingredients from vegetables to meats and dairy. All their pasta is made from 100 per cent Australian durum wheat flour semolina, and it is delivered chilled to each franchisee’s restaurant. It is the real deal. Traditional sauces like Napoli and Bolognese as well as the more contemporary Marinara and Ragu are pre-prepared and also delivered fresh to Fasta Pasta restaurants. With this ready access to quality fresh pasta and other local ingredients, their restaurateurs can provide truly memorable
Business Franchise Australia and New Zealand 41
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fran c h is o r in dep t h : Fa s t a Pa s t a
“The most striking aspect of this business is how much our customers seem to love the Fasta Pasta concept. The service is quick, and our customers enjoy the fact that it is child-friendly. The company is great to work with and is always evolving. I can’t see myself working anywhere else.” Val La Vista, Fasta Pasta Franchisee.
dining experiences for even the most discerning of customers.
Italian flavours and contemporary tastes Italian food is still the second most popular in Australia. Fasta Pasta is using its Italian heritage to deliver unexpected combinations of produce, pasta, dressings and sauces that provide contemporary taste sensations. It has put new twists on old favourites as well as creating new sauces and dishes that are fresh and tasty — typical of the modern Australian cuisine that is currently the most popular in the country.
Italian heritage. Modern Australian menu On the menu alongside the traditional Italian dishes and pasta are salads, seafood, chicken, beef, and pork meals. There are also tempting entrees, risottos, pizzas and vegetarian options. This ever-evolving menu is the result of meticulous testing and research by Fasta Pasta’s Executive Chef, Darren Purvis, who ensures there truly is something for everyone on the menu. The result is food that’s full of flavour at a reasonable price, - with many light and healthy options thrown in for good measure. Just another way Fasta Pasta is keeping pace with the growing trend towards healthy foods and cuisines. Darren continuously ensures Fasta Pasta is abreast of dietary requirements by providing several gluten-free and vegetarian meal options on the menu. Constant research, development and evolution of flavours and tastes are crucial ingredients of Fasta Pasta’s approach, so it remains at the forefront of the casual dining market segment in Australia.
Eat, drink and be happy Customers can choose from a list of select beverages to complement their meal. White, red and sparkling wines, some reflect Italian origins, others are well-known local brands and blends of every popular variety. There are mainstream craft and international beers available at affordable prices. They can sip on a cider, a spirit, or an after-dinner liqueur. Fasta Pasta customers can still enjoy a memorable dining experience and refreshing beverages without the bill shock of over-thetop prices. They’re happy about that and so are franchisees.
Online and on-the-money Interaction between the virtual world of online and the physical world of eating out is becoming increasingly important. Fasta Pasta is bringing the two together to benefit both the customer and the franchisee. Franchisees can maximise the efficiency and productivity of their restaurants with Fasta Pasta’s customised and integrated Point-ofSale (POS) solution. Its capabilities include staff rostering, stock ordering online, stock control, in-depth financial reporting for accounting, and productivity tracking. This cloud-based POS system is accessible via computers, tablets and phones to enable franchisees to view sales, labour and other data in real-time. Fasta Pasta is always looking at ways to improve their technology to benefit franchisees and customers. For customers, it’s easy to order takeaway online or take advantage of special offers from their tablet, smartphone or computer. As soon as they finalise their order, it is automatically entered into the POS system at the selected restaurant. From there, it’s sent directly to the appropriate kitchen for preparation to avoid any ‘double handling’ and to streamline the entire process.
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Customers can also review their orders online to minimise any miscommunication and have the option to pay online, or at the counter. This ensures that online orders are ready on time and that the customer experience is right on the money.
A stronger brand of marketing One of the strengths of the Fasta Pasta brand over the 35 years has been the cutthrough of its marketing, advertising and promotional materials because they’re fresh and engaging. The brand is on outdoor billboards, ever-present across popular radio stations in franchised areas and its growing presence on social media is insightful, fun and customer friendly. Strong advertising activity throughout the year is tailored to local store marketing strategies. Whether it’s an in-store poster or point-of-sale item, an outdoor or online banner, an EDM, every piece is designed to be highly engaging with a strong call to action in it. This is to ensure they all work together towards a single brand purpose - to achieve an ROI for Fasta Pasta and its franchisees.
Do you have what it takes? According to the franchisees that are already successful, all it takes is the desire and commitment to be 100 per cent focused on delivering great food and outstanding customer service in your franchised restaurant day in day out. It’s that simple. There are no other special requirements, Fasta Pasta franchisees come from a variety of backgrounds. A great attitude, a willingness to learn and an unwavering desire to succeed will usually do the trick.
A recipe for success If you would like more information about current franchise opportunities, how you can get a franchise on success and succeed as a Fasta Pasta restaurateur, call 08 8304 8600 today, or email: franchise@fastapasta.com.au
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e x pert adv i c e
Ensuring your business is the main meal You love coffee, food and people and dream of owning a café that becomes the heartbeat of a local community. You imagine customers chatting while they wait for their coffee, succumbing to a scrumptious looking cake or sitting down for a meal that’s “Insta-worthy” and tastes as good as it looks. These customers become regulars. You remember their names, know how they like their coffee, and there’s always a new cake or dish to entice them. Creating this sense of belonging promotes wellbeing and a sense of community at a time when people feel overwhelmed and disconnected because of rapidly advancing technology. Technology itself is not to blame. Mobile and internet technologies will be crucial to running your business. What’s important is creating meaningful connections with customers, both online and offline. Being a business leader is not formulaic. You will need to know your customers, be agile
“Being a business leader is not formulaic. You will need to know your customers, be agile and be prepared to change your mindset to meet the demands of your local community.” Corina Vucic | Director | FC Business Solutions
and be prepared to change your mindset to meet the demands of your local community.
Brand Your brand is your identity. It reflects your personality and vibe and helps you stand out in a crowded market. It’s your power base and must be promoted at every opportunity. Online food-delivery platforms have expanded choice and convenience, but don’t let them swallow your brand. Play in the space and offer customers similar, but better, service. Create brand loyalty by giving customers a reason to come back. Send your food and coffee in branded containers and environmentally friendly packaging. Think about the visibility of your brand on your packaging and put something extra inside the delivery bag to develop brand loyalty. It
44 Business Franchise Australia and New Zealand
could be a small food item with a thank you note or a flyer with a discount code to entice them to dine in next time.
Visual merchandising This is everything the customer sees. Your brand needs to stay fresh and up to date. Make sure your food looks fresh and tempting. Don’t cover it with cling wrap or foil and give the impression it has been sitting for hours. Have delicious smells emanating from the kitchen and fresh coffee beans. Consider, too, the music you play and how that reflects your brand. Keep the café clean and smart. There’s no point in heavily investing in a refurbishment every five years; you can enhance the look and feel of your premises with new furniture or cushions. Give those customers waiting for coffee or
Customers Great service is linked to the relationship you build with your customers. You need to know your customer base so you can anticipate their needs and exceed their expectations. Do you get busy professionals grabbing a coffee before work, mothers relaxing after the school drop-off, retirees catching up with friends, tradies with big appetites or foodies who expect taste sensations? Note the age of your customers, their frequency and average spend. Provide free WiFi and set up long tables that encourage customers to have business meetings and family gatherings. If you make customers feel special, they’ll keep coming back.
Staff You can teach your staff how to make coffee, take orders, serve food and clear tables, but they also need to know how to connect with your customers. Small talk puts people at ease. Remembering someone’s coffee order will turn them into a regular. Reading a customer’s mood will help them respond appropriately. Your staff are your brand ambassadors. What they wear will reflect your vibe. It could be a branded top or a funky barista apron that bears the café’s name and logo. Make sure your team is knowledgeable about the food and coffee being served, along with appreciating that some customers will have a special diet and allergen requirements that should be respected. Set the tone and empower your team members. This includes respecting your staff and making sure you comply with employment laws. Create a culture that reflects you and the values of your business.
Coffee!! Customers are sophisticated when it comes to coffee, and you can’t afford to serve it weak, lukewarm, burnt or with the wrong type of milk. Coffee drinkers know what they like, and their preference will be on the Coffee Taster’s Flavour Wheel, be it mild, malty, nutty, berry, buttery or chocolatey. Give customers a choice and promote special blends. Invest in a grinder that delivers the right grams of coffee for every shot you serve. You also need to pay attention to the milk. About 75 per cent of people drink flat whites, cappuccinos or lattes. In addition to skinny, full-fat and lactose-free dairy milks, there are at least five plant milks, including soy, almond, coconut, oat and
“Great service is linked to the relationship you build with your customers. You need to know your customer base so you can anticipate their needs and exceed their expectations.” rice milk. Customers will see what brands you are using, so don’t buy from the local supermarket. It’s worth spending more on plant milk that froths well, and not charging the customer extra to give your café a competitive edge. If customers want an unsweetened variety, then provide it. Your mugs, glasses and takeaway cups reflect your brand so buy biodegradable or offer a service that allows customers to use and return your branded reusable cups.
Suppliers It’s important to create a great relationship with your suppliers. Think about what they bring to the relationship rather than what they cost. If they understand your brand and values, they can source the best products for you. Communicate regularly and include face-to-face contact. Discuss the latest food trends and find out what they can supply. Make sure the boundary of the franchise agreement enables this flexibility. Does your franchise have a knowledge-sharing hub? If so, share your insights into trends and ways of improving sales. But be aware that introducing new products and updating ordering processes can cause temporary disruptions. Plan and ensure the suppliers are well briefed to meet your seasonal food needs. You should monitor and compare your supplier’s performance with their competitors and be prepared to negotiate the terms of trade.
Menus and margin development You will be busy with the day to day management of the café, but you need to
think ahead about your menu. Your business will be unsustainable if the menu is out of date, priced too high or too low, or there is no margin management. You need to make enough profit while remaining competitive with other cafes in your area. Invest in a strategy to keep your menu current, on point and financially sound. Pay close attention to market trends and make pricing adjustments as required. Many cafes have seasonal menus. Will you follow suit, or will you change the menu annually? Your menu will be linked to your understanding of your client base. If you feel out of your depth, consult a chef, dietician, or even a foodie.
Social media presence Social networking is a great way to extend your product and brand. Based on your customer avatars, you can utilise the online communities where your existing and new customers hang out. That could be conducting surveys and running competitions on Facebook or encouraging customers to share photos of your café on Instagram. Build a plan and strategy to keep your brand exposed online. Social networking is time-consuming, and you should consider employing a blogger or social media savvy person to design assets, take photos and schedule posts. The content you post will depend on your customer base. Does it need to be arty or homely? Do you want new posts every day or once a week? Shares, reviews and likes are great but focus on targets such as leads generated, web referrals and conversion rate to measure the success of the strategy.
Business Franchise Australia and New Zealand 45
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meals something stimulating to look at, including special deals, branded merchandise and take-home treats.
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People and culture There are many laws and regulations governing franchising, and as a business leader, you will need advice and people you can trust. This includes having a hotline to people and culture experts. If you invest in this support and pay attention to your professional learning, you will have a better chance of success. Join a learning performance group and sign up for email updates and newsletters from relevant food and beverage groups. Also, seek business advice to improve your knowledge and skills.
In conclusion If it is your dream to own and operate a café, then make it a reality, however, be realistic about what is going to be involved. It will be challenging. If you’re new to the hospitality industry, spend some time working within a café or restaurant environment to know if it’s for you before jumping in headfirst and investing. By buying into a franchise brand, you will not be going it alone. You will have experts around you who can support you in the key areas of small business - brand, product and stock, marketing, people management and planning. Regardless of whether you buy into a franchise or go independent, the key to your success will be engaging with your local
“You can teach your staff how to make coffee, take orders, serve food and clear tables, but they also need to know how to connect with your customers. Small talk puts people at ease.”
community, both online and offline, and creating that personal connection that we all crave. For the best chance of success, consider these top tips: 1. Establish the brand identity of your business, make sure it is reflected in your menu, your service standards, and your team and helps you build a loyal, local following. 2. Understand who your customers are, connect with them, ensure that your menu offer is suiting their needs, remember their coffee order. 3. Foster your staff with good culture, training and teach them how to engage with your customers 4. Ensure that your coffee is expertly made every time, using exceptional beans and with a variety of milk options. 5. Research your suppliers, support the local producers and to ensure the freshness of your menu and be the local business that supports other local businesses.
46 Business Franchise Australia and New Zealand
6. Plan your menu, knowing the customers you want to entice. Invest in the dishes, their quality, their presentation, and get the price point right. 7. Set a marketing and social media plan to retain and attract customers with consistent and professional-looking posts and activity. 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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PR OFI L E : S U BWAY
A Passion for Great Quality Fresh Food Served Fast for Guests’ Busy Lives
Subway started as a single sandwich shop in Connecticut, USA, in 1965 and has since grown to a network of more than 40,000 restaurants worldwide. Across Australia and New Zealand, Subway’s 1600 individually owned and operated restaurants serve more than 1.6 million guests every week. One of the major benefits for franchise owners in the Subway community is the freedom of running their own business, with the backing and support of a global brand with a 50-year history.
Food fresh from local growers A commitment to fresh, nutritious food and wellbeing underpins the brand’s success. Subway is one of the largest investors in fresh Australian and New Zealand produce and takes pride in the provenance of its ingredients. Ingredients are sourced locally, supporting close to 90 growers in communities across the country. With fresh veggies sliced in-restaurant and bread baked on-site, Subway’s freshness and quality is on display every day in every restaurant.
Changing flavours to meet changing tastes Subway is dedicated to listening to and meeting the expectations of guests and has recently revitalised its menu to reflect the changing palates of Aussies and Kiwis. From a humble submarine sandwich shop to the largest quick-service restaurant network in the world, Subway now offers a diverse range of contemporary options that cater to the vast needs of guests. In Australia and New Zealand Subway guests can now enjoy a new
revitalised menu featuring delicious toasted paninis, freshly-made salads, traditional and hot grilled wraps, as well as iconic submarine sandwiches.
Convenience and technology Subway is also meeting guests’ expectations of more convenient ways to eat, whether on the run, a meal at home or a party with friends. Subway’s online ordering and catering options provide a range of ways for guests to access high quality, ‘better for you’ options. Along with greater convenience for guests, Subway’s range of technology, including a mobile app, loyalty program and e-gifting platform also provides franchise owners access to new revenue streams. Subway has also launched a successful partnership with Uber Eats third-party delivery service within the past year, providing restaurants with the chance to appeal to a growing number of consumers who order-in.
Supporting Subway’s people Subway is a network of small-businesses run by families and individual entrepreneurs. The unique operating model provides dedicated business development teams in the field to support franchise owners from pre-purchase through to the day-to-day management of their restaurant. To assist owners in managing the fast-paced nature of the retail food industry, Subway provides a suite of resources and training tools, as well as regular business management support. With more than 15,000 people working in Subway restaurants across Australia and New Zealand, the brand continues to attract talent from a range of ages and backgrounds through its My Subway Career portal. One of the greatest challenges for any business is developing, managing and supporting its employees. Subway has developed a world-class training program, the University of Subway, covering
48 Business Franchise Australia and New Zealand
everything from slicing fresh vegetables and preparing food, to cleaning restaurants, serving guests and restaurant management. This industry-leading tool is designed to grow restaurant employee capability and deliver professional development, allowing life-long career opportunities for Sandwich Artists, team leaders and managers.
Supplying restaurants High-quality, cost-effective products are required for any business to remain profitable. Another feature of Subway’s unique operating model is the independent company that procures all food, equipment and services used in its restaurants. Unlike many other franchise systems, Subway franchise owners are shareholders in and elect peer representatives to govern this company, which sits separate from the brand.
Giving back to local communities Subway is a brand invested in people and communities. Subway partners nationally with Foodbank Australia and KiwiHarvest, to help raised much-needed funds to fight food insecurity in our communities. Last year alone, more than 450,000 meals were raised in Australia and New Zealand to help feed the hungry.
Subway’s vision The quick-service restaurant category is an exciting and dynamic industry, offering fantastic opportunities for franchise owners. Subway offers support through a proven franchise model, with a 50-year global legacy and more than 30 years of success in Australia. If you’re hungry to join a brand that is not only passionate about its people and fresh food but also passionate about building better communities – take a fresh look at Subway. For more information visit: www.subway.com
Millions of ways to make a sandwich One ingredient remains the same: The Human Ingredient Our dedicated franchise owners and Sandwich Artists® are passionate about every masterpiece created for our guests. Subway® is a vibrant family of 1600 small businesses, operated by franchise owners in communities across Australia and New Zealand. If you’re hungry to join a brand that is not only passionate about its people but also fresh food and building better communities – take a fresh look at Subway®.
subwayisfresh.com.au
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e x pert adv i c e
Wage Non-Compliance a Cost Your Business can’t Afford
It should, therefore, be noted that, due to the convoluted nature of the Fair Work Act, that the overwhelming number of instances where non-compliance does occur, it is unintentional. Moreover, when detected the business in question almost always goes above and beyond to rectify the error and cooperate with authorities. However, as the old saying goes ignorance of the law is no excuse, and franchisees’ now face large and extensive penalties for non-compliance. Gone are the days when it was acceptable to merely leave business matters in the hands of accountants and assume everything was above board or to assume that the previous owner of a business you’ve purchased was complying with existing legislation. From the NRA’s experience wage noncompliance typically arises due to one or all of the following: • Misinterpreting modern awards and enterprise agreements; • Misunderstanding entitlements and allowances;
2019 to this point has proven to be a challenging period for Australian retail. Slow sales throughout the first half of the year, coupled with the usual uncertainty that comes with a federal election, have seen several outlets struggle.
parliament and the RBA’s decision to lower interest rates to record lows. The biggest task for both franchising and retail more broadly in the foreseeable future can be summed up in one word – compliance.
Food and beverage franchises have particularly struggled. When consumer confidence drops and shoppers decide to tighten the purse strings, indulging less on these types of outlets is an obvious option.
With pressure growing on the Federal Government to criminalise wage noncompliance, following numerous high-profile cases, failing to meet your legal obligations could result in far more than simply a fine and some bad publicity. The most recent case being that of celebrity chef George Calombaris which, although not under a franchise model, should signal to all food and beverage retailers that they are in for increased scrutiny from both the authorities and the media.
But the ups and down of the economy is not the biggest ongoing challenge facing the franchising sector. Consumer spending will pick up again; indeed it may have already by the time this article is published following the giant personal tax cuts passed by federal
Australia has one of the most complex, confusing and complicated industrial relations systems in the world. Navigating it can be difficult for an expert, never mind a hard-working retailer who isn’t qualified in employment law.
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• Misclassifying employees; and • Misapprehending which modern award applies to your business. In the case of the franchise sector, the Fair Work Amendment (Protecting Vulnerable Workers) Act 2017 (VW Act) significantly changed both the nature and extent of penalties for non-compliance. This VW Act now means that the Fair Work Ombudsman (FWO) is now able to target a franchisor for indiscretions that are committed by a franchisee. So what needs to occur to prevent a franchise from becoming the latest big-name scalp for failing to pay its staff correctly? For a franchise business to work, it has always required a strong and productive relationship between the franchisor and franchisee. It’s when this does not occur that the wheels well and truly come off. An obvious knock-on effect since the new laws were passed has been that franchisors tend to be taking a far greater interest in the affairs of franchisees operating underneath
Both franchisees and franchisors need to understand that they need each other to avoid wage non-compliance. Although franchisors now face stiff penalties, franchisees should also keep in mind that they are most certainly still in the firing line should a breach occur. The franchisor may never be liable, and the VW Act incentivises them to take measures that protect them from penalties if a breach occurs. If they aren’t already, franchisors should consider conducting thorough audits of all businesses’ operating under their brand name to ensure that compliance is taking place. Franchisees should welcome rather than resist this move. While this may seem a little overbearing, the intent is to make sure that things are done right and ultimately a franchisor should be there to assist a franchisee in running its business successfully. Having said that, franchisors do need to understand that franchisees are independent operators who desire a certain level of freedom to run the business how they wish. Implementing increased safeguards to ensure compliance should not be coupled with a franchisor poking around a franchisee business like an over-zealous parent nagging their child to clean their room. Indeed, a successful way to integrate increased compliance measures productively is for the franchisor to incorporate it as a form of additional training. Whether this is on top of regular training sessions that
“For a franchise business to work, it has always required a strong and productive relationship between the franchisor and franchisee. It’s when this does not occur that the wheels well and truly come off.” Dominique Lamb | CEO | National Retail Association
occur as part of the franchisor/franchisee relationship or bringing in external specialists to educate, this can be an effective way to lift compliance standards while not damaging relationships. Providing resources such as training, guidelines and checklists can be the difference between a compliant franchisee and a public scandal over ‘wage theft’. However, this also comes with an onus on the franchisee to take new compliance measures from the franchisor as an act of good faith, aimed at ensuring that they meet their legal obligations to employees’. Across the retail spectrum at the moment many businesses, including franchises, are doing their best to manoeuvre through a trying period of sluggish sales and low consumer confidence. However, retailers cannot allow this to distract their focus from ensuring that they are meeting all their employee obligations. Wage non-compliance can come with high costs in more ways than one; the financial cost of back paying staff, the emotional cost of undergoing an FWO investigation, and the reputational cost that accompanies damaging media headlines. To circumvent these unwanted costs, the franchise sector needs franchisors and their respective
franchisees to be working hand in hand to ensure that everything is above board. Dominique Lamb is the CEO of the National Retail Association, who has extensive experience providing industrial relations and employment law advice to a range of small, medium and large businesses across a range of industries. 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. Its mission is to support, inform, protect and represent the interests of retailers and fast food businesses, providing advice on issues such as employment law, industrial relations, training information, workplace health and safety issues, event details, advocacy and policy updates, HR advice and migration and visa issues.
Business Franchise Australia and New Zealand 51
FE ATUR E : Foo d a n d B e v er ag e fr a nch ises
them. Indeed, this was one of the intentions of the VW Act. However, this can lead to increased tension in the relationship between the two entities, with the franchisee feeling that they are over-supervised.
FE ATUR E : Foo d a n d B e v er ag e fr a nch ises
sna ps h ot: B K’s Ta ke away
Seriously Good Burgers Plus More! Have you ever dreamed of owning a business that you can work side by side with family? That also has the potential to reduce your efforts for more time off. Where the operation is easy, and you have sound support every step of the way. Then BK’s Takeaway might be right for you. The BK’s Takeaway franchising system is based on over 20 years’ experience in the food and beverage industry. Meaning we have the right systems and processes in place to enable franchisees to build highly profitable businesses. Becoming a franchisee with BK’s Takeaway gives you the advantage of learning from our extensive industry experience and business expertise 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.
The BK’s Takeaway franchise system offers franchisees many benefits, which include the successful launch of a new store to the simple day-today operations. The first company-owned BK’s Takeaway launched in 1999 – since then, we have learned a lot! Our product knowledge is comprehensive in the takeaway food industry – we know what our customers like to buy, what pricing is attractive to our customers, where to buy supplies, how to cook our food and set our menus, amongst many other things. BK’s Takeaway has worked hard to secure exclusive product buying programs with our suppliers, meaning we can achieve better gross profits for all of our stores and franchisees. We have a strong regional brand, and our customers LOVE us. Our customers love us because we sell great food at competitive prices. We also understand that many of our customers want something quick and ready-to-go, and we perfectly cater to them with a diverse takeaway menu! We pride ourselves as being the regular roadside restaurant for long-haul drivers and out of town visitors who travel through our regional locations. The locals have also become ‘regulars’ as they love our great customer service and diverse menu selection! We offer hands-on training and development, so you hit the ground running! BK’s Takeaway franchisees are supported with a comprehensive program and development plan in all aspects of their business – this means you’ll be able to launch your new business with confidence. We at BK’s believe we can train anyone to work behind the counter, but it takes different skills to be able to run a business. We can help you fine-tune your management skills. Our dedicated staff will teach you all there is to know about managing staff and record-keeping procedures. We are also proactive with our training, and will retrain staff if we see a little extra help is needed – we love sharing the knowledge we have acquired from 20 years in the industry. If you have an interest in food and can follow procedures, If you can lead and manage staff and if you have the resources to fund the store, then we want to hear from you. We can get you into a smaller operation for under $200,000. We may be able to provide financial assistance or even start as a partner in an established store. We can mould the structure to suit your individual needs. For more information contact Tegan at: 03 56 332 131 (24hr) or email: admin@bkstakeaway.com.au | www.bkstakeaway.com.au
52 Business Franchise Australia and New Zealand
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fran c h is o r in dep t h : jim’s pool care
Jim’s Pool Care is ready to grow Want to join a great team? Jim’s Pool Care passed an exciting milestone of 100 franchise owners last year, and they are ready to grow even larger this coming season. The success has been built off the back of meeting growing customer demand for home services, and a business model that is built around the franchisees’ goals.
Jim’s Pool Care has developed a Mobile Pool Shop concept in all major cities around Australia and is now growing into larger regional centres. The attraction for new franchise owners and an exciting part of the pool industry is the ability to sell ongoing services, retail items and charge for your time — all these income streams from your Jim’s Pool Care Mobile Shop. Services include pool cleaning, regular maintenance, pool heating, pool pumps, lighting, pool blankets, and robotic pool cleaners.
How do you build a franchise system to 100 sites? As a key division of the Jim’s Group, Jim’s Pool Care began around 15 years ago in Western Australia. Owner and General Manager Brett Blair has seen the franchise chain grow from around 30 to 105 franchisees and 13 regionals franchisors over his ten years in the role. Brett believes a key success factor has been franchisee satisfaction by offering a system that is easy to follow and allows owners to build a business to suit their lifestyle and goals. Brett says, “The Jim’s Pool Care concept is a true mobile pool shop that not only provides pool maintenance but sells a complete range of pool equipment and chemicals. Franchisees can charge for their time and earn great margins on lucrative chemical and pool equipment products.” Franchisees can work smarter and not harder by building long term relationships with customers by helping them with their pool care needs.
“We have franchisees from all walks of life, including trades, banking, engineering, administrative and existing industry professionals.”
54 Business Franchise Australia and New Zealand
Brett told us, “Reflecting on the last 10 years and this amazing growth of Jim’s Pool Care and brand in the market place, I am very proud of the franchise team and the individuals who invested in our business and invested in themselves. Their reward is now they are in a business that has no limits on growth, they have full flexibility over their work life balance, and they are their boss. It is
“The success has been built off the back of meeting growing customer demand for home services, and a business model that is built around the franchisees’ goals.” not easy for any new business to start up, and it takes hard work each time, but my team are always here and committed to being there for their journey”.
A network that works There are currently over 3800 franchisees as part of the Jim’s Group – making it one of Australia’s most recognised brands. Jim’s Pool Care encourages owners to build strong local relationships and to leverage off other divisions who are also out there every day in customers’ homes and backyards. While each division has a dedicated marketing team and website, all Jim’s franchisees are encouraged to cross-promote the other 40 divisions, using local area marketing, which is extremely useful to a newly launched franchise. Brett told us, “Jim’s Pool Care has worked hard to develop a strong and supportive culture. The great thing about the Jim’s system is if new franchisees ever need any help, the support team is only a phone call away as we have an amazing network of friendly and helpful franchisees, franchisors and suppliers”. To support the franchisees and encourage continual professional development, Jim’s ensure they have regular meetings and training sessions throughout the year. Many of these sessions are run by suppliers that educate the Jim’s Pool Care team on the latest equipment, technology and water management processes. Ongoing training and development ensures franchisees are up to date with industry standards so they can help customers and deliver the best service possible. This strong support network is reinforced with an annual Jim’s Pool Care franchise convention, where franchisees fly in from all around Australia. The conventions are usually three to four days where attendees can hear from other franchisees, industry experts and sales and motivational coaches. This forum provides a great opportunity to learn and network with other franchisees. The convention is coupled with annual awards and recognition.
are available. With a Jim’s Mobile Pool Shop this includes casual pool servicing, regular maintenance programs, the sale and installation of new pool equipment, and a range of pool accessories. Domestic pools, body corporates, hotels and commercial opportunities are available in the pool industry.
Opportunities to earn
Jim’s Pool Care franchises are now for sale in selected locations across Australia. The price for a new site starts at $69,000 and includes a complete start-up package. From time to time, there may be some established re-sale opportunities which can be discussed upon enquiry. Jim’s is committed to new franchisees and their success by offering a Pay for Work Guarantee of $1500 (incl. GST) per week. Conditions apply, but this means that if you follow all the systems, and do not meet the weekly guarantee at the end of the month, you can be topped up the difference.
It is important when looking at a business to consider how many streams of income
Another exciting point of difference is that only a flat monthly franchise fee is charged,
“There are some great stories shared each year at our annual conference, of business success and innovative ideas right around the country”.
which is not percentage-based. Meaning the harder you work; the more money you can make. The flat fee is an important factor for many of the franchisees who may be concerned about fees while trying to grow their business.
What does it take to succeed? “When looking for a franchisee, we are ideally looking for somebody that is personable and able to build great customer relationships. We are not only about one-off jobs in pool care, but it’s also about the ongoing regular maintenance. We are looking for people that are motivated to get into business for themselves, have a positive attitude and can get out on the road and build their own business with our systems. I am very proud of the team we have built and the service they provide pool owners around the country.” The recruitment and application process starts with a phone call or enquiry. Jim’s then send out a detailed information package. Next step
Business Franchise Australia and New Zealand 55
fran c h is o r in dep t h : jim’s pool care
is an initial meeting, usually over a coffee where both parties have the opportunity to learn more about each other. Potential franchisees are then offered a day on the road with a franchisee; this is a great concept, and the potential franchisee is free to choose any working franchisee, as Jim’s Group fully believe in being transparent through the process. Potential franchisees are also encouraged to ask as many questions as they want.
“The Jim’s Pool Care concept is a true mobile pool shop that not only provides pool maintenance but sells a complete range of pool equipment and chemicals. Franchisees can charge for their time and earn great margins on lucrative chemical and pool equipment products.”
After they have been out on the road and experienced for themselves how the business works and if they are keen to move forward, the next step is to start formalising the application. Part of this process is selecting a territory to build the business. Usually, the location is close to home, to help reduce travel times and to help maximise chargeable hours for the franchisee. It also means that they can pop home if needed or help out with family commitments if they arise.
How can you grow your income? “We have franchisees from all walks of life, including trades, banking, engineering, administrative and existing industry professionals. Our franchisees don’t need to have existing industry skills as Jim’s Pool Care provides comprehensive training; they need to be willing to try new things, follow the systems we have developed and provide great customer service,” Brett says. This in-house training starts with three days at the Jim’s Group Training Centre in Melbourne. All franchisees, from around the country, fly to Melbourne to meet Jim Penman and to learn more about the Jim’s system and how to become successful in business. The franchisees then go back to their respective cities and states where they complete an on-the-road and face-to-face pool school training program which lasts approximately 15 days with their local franchisor and trainer. To make it easier for new business owners, Jim’s Pool Care has been leveraging the latest technology for many years including digital water testing and cloud-based invoicing which help with accuracy and the ability to improve cash flow. The cloud-based system enables real-time business reporting and customer management that can be discussed with their local franchisor. They have begun to incorporate online training systems which help the franchisees to become experts in the field, with easy steps which can be completed in the comfort of their own homes. The training includes practical videos and hints and tips from experienced franchisees. Working with the best brands in the pool industry, including Fluidra, AstralPool, Zodiac, Maytronics, Daisy and Sunbather, the training and support that the franchisees
receive from the brands concerning ongoing training and product support is impressive. Franchisees are encouraged to enhance their professional development each year, attend local team meetings and training sessions. Jim’s Pool Care also encourage franchisees to become specialised if they wish in certain pool areas. On top of this, all new franchisees are now required to complete the Certificate III &IV Pool Technician course, which is a nationally accredited qualification. The qualifications are provided in conjunction with the in-house training completed by Jim’s Pool Care. “Ongoing training is provided by using a local, regional franchisor model; this is perfect for a new business owner. We have someone on the ground in every region that provides ongoing training and support. Once trained, every month, at a minimum,
56 Business Franchise Australia and New Zealand
the regional franchisor will contact the franchisee to provide technical and business support. There are between six to eight local, regional meetings a year, which allows all the franchisees in that particular region to get together and share ideas and attend a range of supplier training. This provides our franchisees with a strong support network,” says Brett. A Jim’s Pool Care franchise is a mobile retail business with huge opportunities. This system provides you with the opportunity to work outside, to work your own hours, to be your boss and to build your business without limit. If you too would like to take control of your future, contact Jim’s Pool Care now on: 131 546 info@jimspoolcare.com.au www.jimspoolcare.com.au
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e x pert a dv i c e
Five ways the ATO is tackling the black economy Have you heard of the black economy but don’t know what it is or how it impacts you and your franchise business? Well, you’re not alone! What is the black economy? The black economy includes dishonest and criminal activities that happen outside the tax system and those who try to misuse or abuse it. It encompasses many elements, from the under-reporting of income and non-payment of superannuation through to serious criminal activities such as money laundering, illicit tobacco and the illegal drug trade. By avoiding their tax obligations, people participating in the black economy have an unfair advantage, allowing them to undercut people doing the right thing. This behaviour undermines community confidence and puts pressure on the margins of honest businesses, directly affecting their profitability and livelihood. The Black Economy Taskforce estimated the economic impact of the black economy could be as large as 3 per cent of gross domestic product (GDP) or $50 billion in lost revenue each year. That’s money which could have gone to funding schools, hospitals, roads and other critical public services. It has a huge impact on all Australians.
So, what are we doing about it? To tackle the black economy head-on, the government announced a series of new measures, including many that came into effect from 1 July. We play a leading role in delivering much of this work as part of the Black Economy Program. It’s all about protecting honest businesses from competitors
who are trying to get ahead by avoiding their tax obligations. Let’s take a closer look at five of these measures and how they could affect your franchise business and how you can work with us to fight the black economy.
Black economy hotline The new and improved Tax Integrity Centre (TIC) launched on 1 July, provides a single point of contact for reporting suspected or known phoenix, tax evasion, and black economy activity. We want any members of the community to contact us and tell us about instances where people might not be doing the right thing. You will be able to tip us off online at ato.gov. au/tipoff, by using the Tip-Off form available in the ATO app, or by calling our Black economy hotline on 1800 060 062. You can report any known or suspected
58 Business Franchise Australia and New Zealand
activity where someone is gaining a competitive advantage by intentionally doing the wrong thing. Suspect activity is not just limited to tax issues. It involves behaviours such as: • Demanding or paying for work cash in hand to avoid obligations, such as paying employees super. • Not reporting or under-reporting income. • Illegal phoenixing – deliberately liquidating and re-forming a business to avoid obligations. • Over-claiming deductions, e.g. paying for home renovations through their business account. All tip-offs are private and can be anonymous. We only request contact details in case the information provided needs further clarification.
We’re visiting businesses around Australia We’re visiting businesses around Australia as part of our work to protect honest businesses from unfair competition by addressing black economy activities. While most businesses do the right thing, some get an unfair advantage by not meeting all their tax and superannuation obligations.
“We understand that franchise business owners have a lot on their plate. We’re here to help you stay on track, or get back on track.” Peter Holt | Assistant Commissioner | Australian Taxation Office
As part of this work, we’ll be visiting up to 10,000 businesses around Australia, each year, for the next three years. For businesses that are genuinely trying to do the right thing, we provide education and assistance to help them get back on track. We use these visits to help us identify who needs extra support to make it easier for them to comply. We visit areas that we’ve identified as being higher risk. These risks could include: • Unreported or misrepresented sales. • Omitting income, including missing payments, online transactions, • Lack of record-keeping knowledge (e.g. in terms of sales, expenses, staff, rosters and controls). • Businesses that are reporting outside of the small business benchmarks. • Businesses that are operating outside of the tax system. If you receive a visit from us, remember that our work is about reducing the opportunity for those getting an unfair advantage and levelling the playing field. We believe all businesses should get a fair go. We have an obligation to the community to investigate further and take the appropriate action if a business is deliberately doing the wrong thing. Our teams visited over 10,000 small business across 22 locations in metropolitan, regional and remote areas in the first year.
Expansion of the Taxable Payments Reporting System (TPRS) This change could affect your franchise. The Taxable Payments Reporting System (TPRS) was first introduced in 2012 in the building and construction industry to help detect those not reporting or under-reporting their income. The TPRS expansion now means that businesses providing cleaning or courier services will need to report payments made to contractors for cleaning or courier services provided on a business’s behalf. The TPRS strengthens our ability to match income tax returns from contractors against what businesses report paying, allowing us to
“We believe all businesses should get a fair go. We have an obligation to the community to investigate further and take the appropriate action if a business is deliberately doing the wrong thing.”
detect those trying to hide income and evade tax. The success of this system proves that any business trying to evade their obligations, won’t go unnoticed. If your franchise business engages contractors to provide cleaning or courier services to your customers on your behalf, you may need to lodge a Taxable Payment Annual Report (TPAR). The report may apply even where cleaning or courier services are only part of your franchise business’ activities. Businesses need to report the total payments they made to each contractor or subcontractor for cleaning or courier services in the 2018-19 financial year; the first TPAR was due on 28 August 2019. The TPRS now also applies in the same way to businesses providing road freight, IT, security,
and surveillance or investigation services from 1 July 2019, with their first TPAR due in 2020. Franchise businesses need to look into it and find out more through ato.gov.au/TPAR or your registered tax professional.
Ban on Electronic Sales Suppression Tools Use of these tools has been banned since 2018. Electronic sales suppression tools (ESSTs) allow income to be misrepresented and underreported by: • Deleting transactions from electronic record-keeping systems. • Changing transactions to reduce the amount of a sale.
Business Franchise Australia and New Zealand 59
e x pert a dv i c e
“It’s all about protecting honest businesses from competitors who are trying to get ahead by avoiding their tax obligations.” • Misrepresenting a sales record, for example by allowing GST taxable sales to be recategorised as GST non-taxable sales. • Falsifying POS records. It is an offence to produce, supply, possess, or incorrectly keep tax records using an ESST. It is also an offence to assist others in committing these offences knowingly. Penalties up to 5,000 penalty units (currently $1,050,000 as of publication date) can apply. Business owners need to keep records to explain all transactions, including records created by an electronic POS system. The transitional period for the ban on possessing ESSTs ended on 3 April. Anyone who possesses uses, produces or supplies an ESST will be subject to strong action from us as part of our response to the black economy.
Removing deductibility of noncompliant payments Since 1 July 2019, businesses can only claim deductions for payments they make to their workers (employees or contractors) where they have complied with the PAYG withholding and reporting obligations for that payment. This new measure will take effect for income tax returns covering the current 2019-20 year and onwards.
The government will also remove deductions for payments made by businesses to contractors where the contractor does not provide an ABN, and the business does not withhold any amount of PAYG, even though withholding requirements apply. If your franchise business failed to withhold or failed to report your PAYGW liability, you’d lose your deduction unless you make a voluntary disclosure to us before we tell you we’ve started an audit into your businesses’ PAYG withholding obligations. If you made a mistake and withheld an incorrect amount, you won’t lose your deduction. You need to lodge a voluntary disclosure in the approved form to correct your mistake and minimise any penalties. These are just five ways the ATO is tackling the black economy. Find out more about the black economy and what you can do about it at ato.gov.au/blackeconomy.
Help and support for franchise business owners If you’re new to business or changing your business structure, you might feel like you need more support to understand your tax and super obligations. Visit ato.gov.au/SBsupport to find out about the range of tools, support
60 Business Franchise Australia and New Zealand
and services we have to help you manage your tax and super. There are also some additional things to consider for franchised businesses at ato.gov.au/franchise. Remember that registered tax professionals can help you too! Your registered tax professional can help you with more than just lodging your BAS or tax return. Speak with them for advice about your business and identifying areas for improvement, such as monitoring your cash flow or setting up electronic record keeping. We understand that franchise business owners have a lot on their plate. We’re here to help you stay on track, or get back on track if you are behind with or having trouble with your tax and super obligations. No matter what your situation is, it’s never too late to ask for help. Peter Holt is Assistant Commissioner with responsibility for the Black Economy measures program at the Australian Taxation Office. He is chair of the whole of government Black Economy Standing Taskforce. During his career, Peter has played an active role in policy development, law design, risk, governance, audit and assurance across the tax and superannuation systems
GO MOBILE - GO DIRECT Have you always wanted your own business? Then the worlds leading Energy Efficient Franchise could be for you. SuperGreen Direct is MOBILE, MODERN, EFFICIENT and takes you directly where the business is.
The world’s first mobile Energy Efficient Specialist GOES DIRECT! Be seen when and where you need to be by taking SuperGreen Products DIRECTLY to the clients: Home Shows, Builders, New Home Display Villages, Residential Customers and Commercial Clients. SuperGreen Direct enables you to do more cost effective and efficient business, more often!
Training, quoting tools and systems offered along with access to world leading brand name products enabling you to start selling solutions from day one.
Build your business your way... STOP working for the man...
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Business Franchise Australia and New Zealand 61
fo c us feature : S uper G reen Solutions
Go Mobile – Go Direct –
Go SuperGreen Direct Households and businesses are spending more on energy, and power prices in the news are prompting more consumers to take a fresh look at their energy consumption. The good news is, SuperGreen Solutions leads the market as Australia’s premier adviser, supplier and installer of household and commercial energy-efficient solutions. SuperGreen Solutions look at energy creation and energy saving from a holistic point of
view and provide customers with total energy efficiency solutions for their homes and businesses. The creators of the company have been in the energy efficiency industry for over 19 years and have established a solid reputation spanning three continents. The SuperGreen team are excited to be launching the Australian first, mobile franchise leg of the business to market, a huge work in progress over the last few years. Founder and Managing Director, Sean Cochrane, is confident that SuperGreen Solutions Direct will become the largest sector of the business both for SuperGreen in Australia but also for SuperGreen globally. We spoke to Sean to find out more about this exciting development.
“The mobile offering is us listening to what builders, new home buyers, and consumers have been requesting. It is the first of its kind, and it’s called SuperGreen Solutions Direct.”
Who are SuperGreen Solutions, and what do you do? A one-stop-shop for energy-efficient products, SuperGreen is a full-service provider of energy-efficient solutions and green living outcomes. First opened in Queensland, Australia, over the past 19 years, SuperGreen has grown to over 51 locations in over 13 countries. “Our philosophy of reduce before we produce enables us to reduce consumption and CO2 emissions and increase efficiency and savings through our ability to bundle products and solutions,” says Sean. “We offer solar power, battery storage, electric vehicle chargers, energy management and home automation, LED lighting, efficient water heating, insulation, skylights and ventilation, so you can see we are a one-stopshop.” SuperGreen Solutions is backed by and linked to an international buying group to ensure the company’s competitive pricing edge. This group includes Energy Efficient Products of Australia, SuperGreen Solutions of both the USA and Australia and Americas United Franchise Group. “Power in numbers enables the best brands at the right price; our long term goal is to save you and your client’s energy and money. We take delight in demonstrating how neutral costing or positive revenue can be achieved through various items in our product range,
62 Business Franchise Australia and New Zealand
“SuperGreen Solutions leads the market as Australia’s premier adviser, supplier and installer of household and commercial energy-efficient solutions.”
and also showing our customers that best practice does not necessarily translate into higher costs. Our team takes pride in using sustainable Australian made products wherever possible” explains Sean. “SuperGreen Solutions has made this industry direct as we can now take the showroom and office direct to the customer.”
How are you different from your competition? “I love this question, as a rule, most other companies only provide one or two products, such as solar power and battery or skylights and ventilation but at SuperGreen we can offer the complete range of energy-efficient products to customers,” says Sean. “And now we have a Wi-Fi-connected mobile office and showroom that enables us to take our products to our clients and do business on the spot. Nobody shops like they did 15 years ago. The mobile offering is us listening to what builders, new home buyers, and consumers have been requesting. It is the first of its kind, and it’s called SuperGreen Solutions Direct.”
Tell us more about SuperGreen Solutions Direct “This is simply a mobile SuperGreen Solutions showroom. It’s a showroom in a van that goes directly to the clients. It’s the world’s first mobile energy-efficient specialist, that can go direct to the customer” explains Sean. “Let’s face it; the way business has been managed in the past, will not be how a business will be conducted in the future. It’s here; it’s now; it’s fresh; it’s mobile; it’s modern, it’s efficient, It’s green, it’s direct, and it’s SuperGreen.” SuperGreen Solutions supplies and installs four out of the top 10 growing product sectors in the world today, and according to Sean, “That’s just the beginning because we have found a way to take it mobile – to take it directly to the clients with SuperGreen Direct.” Only with SuperGreen Solutions Direct,
can you gain access to the worlds most trusted brands products and provide multiple solutions for your clients. Take your business to where it’s needed, to where the business is at the time. Then provide the solutions that the clients need. SuperGreen Solutions Direct enables you to do more business, more costeffectively, more efficiently and more often.
What do you look for in a franchisee? “As a SuperGreen Solutions franchisee you will be able to offer residential clients, business owners, builders and the construction sector, Government and commercial clients a unique energy-efficient solution, saving everyone in costs and energy while also reducing their greenhouse gas emissions.” “You will help your clients save money and enable them to differentiate themselves from the competition via green products and green marketing initiatives. You will be able to deliver services such as sustainability planning, world-leading brand name products, product installation, product, energy and dollar saving monitoring tools, as well as claiming their rebates and offering after-sales services, in one clean and green business.”
interest in the environment, energy-saving, construction, finance, global warming and climate change. Sean says, “Lately, we have seen a lot of interest from entrepreneurial types or electricians and plumbers looking to get into business and spending less time on the tools. But who are wanting access to world-class brands and a proven franchise leader that gives them a trusted identity.”
Where to from here? SuperGreen has 51 locations globally, and while the group have been mainly based in Queensland, Sean says “With the launch of the SuperGreen Direct Mobile franchise offering we are looking to open 150 Mobile locations in the next three to five years”. Sean Cochrane is an energy efficiency and sustainable products expert with a wide range of experience and knowledge in the industry. He is a Certified Green Partner (CGP), a LEED-certified Associate, is an advisor to the Developers and Builders Alliance, and has received many business and management accolades.
SuperGreen Solutions offer full training, at their head office and then on-site in the new area or territory. SuperGreen provides franchisees with, uniforms, marketing material, training, quoting tools and systems, along with access to world-leading brand name products, so you can start selling from day one.
SuperGreen Solutions offers an outstanding business opportunity that truly is environmentally friendly. From the start, you will be able to promote yourself as a reliable, credible, authority with energyefficient products as well as being a part of the world’s largest business service franchise systems. Our credibility becomes your credibility.
SuperGreen is reaching out to anybody that would like to work for themselves, that has an
Find out more at www.supergreensolutions. com.au/franchises/
Business Franchise Australia and New Zealand 63
e x pert a dv i c e
How to Avoid Losing Salespeople I believe in the idea of a meritocracy, where topperformers are handsomely rewarded, low performers quickly exit and new blood are sought out. Any organisation can change into a culture of highperformance given enough time and organisational will to let the wrong people go. Top-performers are always in demand; they are contacted with other employment opportunities on average 4.3 times per year (Qualtrics). The key question is - how do you keep your high sales performers?
Be the steward of a rockstar culture Salespeople want to work for high performing
“Hire those that are so good that it’s almost intimidating. High performers will force you out of your comfort zone and stretch your leadership capacity.” Kara Atkinson | Recruitment Expert | Kara Atkinson
sales leaders. One of the earliest lessons I learned in the headhunting game was that people don’t work for jobs. People work for people. People don’t quit their jobs. They quit their leaders. B and C players don’t mind working for other B and C players. They prefer it because it allows them to fly under the radar. High performing salespeople are a different breed. They are thoroughbreds and working for B, or C-player managers are anathema to them. They’re going to get frustrated and lose their inspiration for their work. They’re going to feel held back, and when salespeople built for success leave when they are held back. Exiting weak managers should be a new
64 Business Franchise Australia and New Zealand
executive’s mission number one when taking over the reins of an organisation. High performing salespeople will keep you honest. If you want your team to be high performing, you better bring your A-game and be constantly improving. High performers will keep you accountable and will call you out on your bullsh*t. They will make you a better leader over time, but you need the stomach for honesty. Hire those that are so good that it’s almost intimidating. High performers will force you out of your comfort zone and stretch your leadership capacity.
Compensate aggressively While money may not be the number one thing keeping a salesperson on your team (because let’s face it, there will always be someone willing to pay more), it is certainly a high priority. The problem I see with many remuneration structures is that if performance is capped, companies don’t offer enough variable compensation to motivate sales people truly.
“I believe in the idea of a meritocracy, where top-performers are handsomely rewarded, low performers quickly exit and new blood are sought out.”
If we know that salespeople will leave an organisation for a 15-25 per cent increase in annual salary, then why are most organisations insistent on giving 3-5 per cent annual salary increases? Instead of giving everyone a paltry increase that will satisfy no one, give your high performing salespeople the 15-25 per cent increase; funded by not giving increases to the low and middle-of-the-road performers. Uncapped compensation, tied to performance, shows salespeople that you believe in and value them, and keeps them from being lured into ‘the grass is always greener’ mentality that so many workers have in today’s economic boom.
Provide challenge and a career path Salespeople have an innate need for self-actualisation. Even if they’re highly compensated, if you don’t provide a career path, they will have a wandering eye. Salespeople get bored easily, and while average and low performers are more interested in long-term stability, true top-performers find monotony, punctuated by an occasional Hawaiian shirt Friday to be a fate worse than death. High performing salespeople want to blow past the basic goals and to be handsomely rewarded for it, and have the opportunity to be challenged more. Along with challenge comes a clear career path. They want new job titles, new skills and new responsibilities. A 2018 study by the Australian Government said the number one reason people leave their jobs is because of lack of career growth. With the rise of the internet and specifically social media, we have a world where the divide between the best and the rest has never been more profound. We know who the best are, and good headhunters can easily find them. Conversely, these salespeople have more open access to salaries, market worth and employer reviews than ever before. They know what you’re paying and with unemployment at historic lows, with an economy that’s running on all cylinders, competition for talent has never been higher; it will keep increasing over the next 12 years as 40 per cent of the current workforce retires.
“Headhunters have their sights set on your salespeople. Don’t give them a reason to leave. When they call, you want your salesperson to say, ‘Thanks, but no thanks, I’ve got too good of a thing going on here to give it up.’”
of a thing going on here to give it up.’
Right now, the good headhunters are: • Crafting client’s EVPs to make them nobrainers; mapping out every salesperson in your city. • Sourcing contact info (social media handles, phone numbers, work and personal emails, addresses). • developing a plan of attack to get that EVP out to every salesperson through social media, email, phone calls, texts, direct mail, even smoke signals if need be. Headhunters have their sights set on your salespeople. Don’t give them a reason to leave. When they call, you want your salesperson to say, ‘Thanks, but no thanks, I’ve got too good
Kara Atkinson is an expert in recruitment and founder of SPARC - The Sales Leader Network. With over 18 years in the industry, Kara created her own recruitment business 10 years ago, fuelled by the opportunity to help people continue to build and transform themselves through their career. Kara specialises in Sales & Marketing Executive Roles, recruiting across all industries and business sizes. To find out more visit www.karaatkinson.com and www.sparc-network.com
Business Franchise Australia and New Zealand 65
PR OFI L E : franchising e x po
Expo Focuses on Franchising Success Success stories abounded at the Franchising & Business Opportunities Expo this year with eager visitors keen to find out more about being in business for themselves.
Next year the Franchising & Business Opportunities Expo will be held in Sydney, Perth, Brisbane and Melbourne, featuring a wide range of international, national and local business opportunities.
“Our exhibitors reported that the vast majority of visitors were well informed and asking all the right questions,” says Exhibition Manager Fiona Stacey. “What these visitors discovered was a huge range of business ideas to suit their interests, their skills and their budget.”
Once again there was a very informative and entertaining seminar program featuring memorable presentations from Jim’s Group founder Jim Penman, Poolwerx’s CEO John O’Brien, entrepreneur and coach Andrew Morello and the Franchise Council of Australia’s CEO Mary Aldred.
Stacey adds there was no shortage of successful franchisees willing to participate in panel sessions and on exhibitor stands, sharing their stories of franchising success.
“The shows proved once again that the Franchising and Business Opportunities Expo is the best place to take the first steps towards being your boss, or growing your business,” says Stacey. “It’s also an event where the industry comes together to educate, inform and network – the place where you can turn your ambition into action.”
“I think it is so valuable for visitors to meet face to face with franchisors and current franchisees to find out all nitty-gritty details of the business,” she says. “Some people might then decide that owning an enterprise is not for them, but for others, it’s just the start of their successful and profitable small business journey.”
Exhibitors this year ranged from household names like Subway, Poolwerx, Jim’s Group and Clark Rubber, to newer concepts such as Eco Laundry Room, Pepper Lunch, Pattysmith’s Burgers, Plumbing Bros., Solar Run and Quantum Blast.
“We are now getting ready for another exciting series of shows next year, returning to ICC Sydney in March. It’s time to start planning to turn your dreams into reality!”
66 Business Franchise Australia and New Zealand
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Business Franchise Australia and New Zealand 67
h ot to pi c s
Behind the
headlines Lawyers commence roadshow to promote RFG class action Lawyers preparing a class action against beleaguered franchise parent, Retail Food Group (RFG) have travelled to several Australian cities across August to speak with former and current franchisees, according to a media report. The class action would reportedly be based on allegations that RFG behaved unlawfully towards franchisees, causing them to suffer loss or damage, and all former and current franchisees of Michel’s Patisserie are eligible to join.
New owners for troubled swim franchise The main trading company of beleaguered swim school chain Jump! has reportedly
been sold to franchise operator Belgravia’s subsidiary, BK’s Gym & Swim, according to a media report. The sale of Jump! entity Swim Loops may provide relief to franchisees of the struggling chain, however many are still owed money or after months or years of waiting still, do not have operational businesses. Critics of the sale have been reminded by administrators that the alternative is for the company to “cease trading and be placed in liquidation”. Jump!’s assets were frozen under a Federal Court order in June, and it faces court action alleging that it misled franchisees through marketing and promotional materials which failed to disclose realistic timeframes for the construction of new swimming pools. The Australian Competition and Consumer Commission (ACCC) is also reportedly seeking injunctions, declarations, pecuniary
68 Business Franchise Australia and New Zealand
penalties, and refunds for some franchisees who, despite having paid for their franchises, have been forced to wait up to two years or more to open their businesses.
Boost parent moves closer to sale or float The multi-brand food company and Boost Juice parent, Retail Zoo, is considering a $400 million trade sale or an initial public offering (IPO) on the Australian Stock Exchange (ASX), according to a media report. Retail Zoo operates around 650 outlets worldwide under the Boost, Betty Burger’s, Salsa’s Fresh Mex, and CIBO Espresso brands and has reportedly generated consistent double-digit sales and store growth over the past seven years. Financial institutions Citi, UBS, and Goldman Sachs, have been appointed as lead manager for a potential IPO.
Meanwhile, Boost Juice franchise founder Janine Allis is appearing on the fourth Australian season of reality TV show Survivor, which was filmed over eight weeks in Fiji, according to a media report.
1,000-plus franchise outlets to change their name Delivery services franchise Fastway will rebrand its 1000-plus Australian and New Zealand operations to Aramex, according to a media report. Dubai-based transport operator Aramex purchased Fastway in 2016 in a deal worth AUD$117 million (NZD$125 million), and the rebrand is seen as the final step in the acquisition. The rebranding is scheduled for completion by early 2020.
$500m sale of Australian fast-food chain Asian private equity firm PAG Asia Capital is reported to have paid up to $500 million for chicken franchisor Craveable Brands, which operates 580 stores across the Red Rooster, Oporto and Chicken Treat brands, according to a media report. The acquisition will add to PAG’s existing Australian franchise investment in The Cheesecake Shop, which it acquired for a reported amount of $100 million in 2016. Craveable owner Archer Capital reportedly paid previous owner Quadrant Private Equity $450 million for the group in 2011, and in 2017 had sought to exit its investment via a public offering, however, aborted the sale due to market conditions at the time. New owner PAG is expected to drive growth in Asia, expanding from an existing network of stores in Singapore, Sri Lanka and New Zealand.
his restaurant qualifies for two and three stars due to its remote location and the quality of the food. Currently, there are 122 restaurants in the world with three Michelin stars.
ACCC releases multilingual info for potential franchisees The Australian Competition and Consumer Commission (ACCC) has released new and updated information for potential franchisees, including videos, not only in English, but also in Traditional Chinese, Simplified Chinese, and Hindi. The resources include an information statement, a fact sheet, and three short videos which are designed to deliver key messages to prospective franchisees related to due diligence, seeking expert advice, and highlights some of the risks associated with franchising.
Taskforce open to consultation during Inquiry review Federal Employment and Small Business Minister Michaelia Cash have announced that the Franchising Taskforce which will review of some of the 71 recommendations of the recent Franchise Inquiry will also consult with stakeholders “across the spectrum of the franchising sector.” The Minister announced sector stakeholders, which includes franchisors, franchisees and advisors and suppliers, are welcome to provide input to the inter-agency Taskforce, which is being co-chaired by the Minister’s department and also includes senior officers from the Department of Treasury and the Department of the Prime Minister and Cabinet.
Outback KFC franchisee campaigns for Michelin rating
In a statement prepared for the Franchise Advisory Centre’s recent Franchise Leadership Forum, the Minister provided a contact email address and web page for stakeholders to contact the department about the Inquiry recommendations, and to track the Taskforce’s, progress.
The franchisee of a KFC restaurant in Alice Springs in central Australia is campaigning to have his restaurant earn a Michelin Star, despite the Michelin Guide not publishing in Australia, according to a media report.
Australia’s largest retail franchise partners with Franchise Advisory Centre
Michelin stars are used by the red Michelin Guide to grade restaurants on their quality with one star signifying “a very good restaurant”, two stars are “excellent cooking that is worth a detour”, and three stars mean “exceptional cuisine that is worth a special journey.” Franchisee Sam Edelman believes
The Lott, Australia’s Official Lotteries, has partnered with the Franchise Advisory Centre as part of its commitment to fostering best practice in the Australian franchise sector. With a network of more than 3800 outlets across all Australian states and territories, except Western Australia, the Lott is the
Jason Gehrke | Director Franchise Advisory Centre
nation’s largest retail franchise network, offering official lottery games from NSW Lotteries, Golden Casket, Tatts and SA Lotteries The Lott General Manager of Lotteries Retail, Antony Moore, says a strong and growing retail franchise network is key to delivering an exceptional customer experience to Australian lottery players. The new partnership with the Franchise Advisory Council comes as the Lott is working on a range of new initiatives to boost the ongoing viability of the retail network.
Vale Rupert Barkoff (1948-2019) American franchise legal expert Rupert Barkoff recently passed away after complications arising from surgery. Rupert was a friend to many Australian and New Zealand franchisors and advisors, and each year from 2004 would travel from Atlanta in the United States to the Franchise Council of Australia’s national convention, wherein 2017 he was given a special award by the FCA at its Legal Symposium. Rupert practised in law firm Kilpatrick Townsend for 46 years, and as Chairman of its Franchise Team authored many articles on franchising, and organised or presented at many franchising conferences and legal forums. Each year, he hosted a dinner at the International Franchise Association (IFA) convention in the United States for all Australian and New Zealand delegates. Rupert was instrumental in assisting several Australian brands in preparing for entry to the US market, particularly pool maintenance chain Poolwerx. His dry wit, sage counsel, boundless curiosity, and penchant for snowglobes will be missed. www.franchiseadvice.com.au
Business Franchise Australia and New Zealand 69
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.
www.businessfranchiseaustralia.com.au
70 Business Franchise Australia and New Zealand
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Visit harmoniq.com.au/business-franchise or call 02 9542 2000
JEJAK GRAPHICS
a lasting impression
Contact Michelle Quinn M 0422 267 639 E jejak@bigpond.com CREATIVE DESIGN SOLUTIONS Jejak Graphics is a freelance graphic design business based in Melbourne, Australia working with clients worldwide. With over 18 years experience in the design and print industry specialising in magazine layout and advert design as well as offering a number of other graphic design services and print solutions including: • Corporate stationery • Brochures and flyers • Poster and banner design • Digital marketing and website banners • Sports programs • Monthly newsletters • Product labels and packaging Artwork is tailored to your brand and focused on your message and target audience. No job is too big or small. Contact me today to discuss how Jejak Graphics can make your company or organisation leave ‘a lasting impression’.
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 71
f r a n c h i s e l i st i n gs
FRANCHISE APPLIANCE TAGGING SERVICES 80 Patterson Road, Bentleigh VIC 3204 Ph: 1300 287 669 Fax: 03 9557 4854 Email: steve@ats.com.au Website: www.appliancetaggingservices.com.au
NATURE OF BUSINESS
OUTLETS
ASSOC MEMBER
INITIAL FEE
MIN INVEST
ELECTRICAL TEST AND TAG
57
FCA
$35,000
$57,000 + 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
FLOORING AND WINDOW FURNISHINGS RETAILER
130
NRA – ATFA
$25,000
$80,000
RETAIL, POOL & SPA SERVICE
60
FCA, SPASA
$60,000
From $420,000 + GST
DECK AND TIMBER RESTORATION
8
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
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
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
$69,000 + Vehicle
SOLAR SHEILDING NANOTECHNOLOGY WINDOW TREATMENTS
1
-
$26,000
$26,000
QSR FAST FOOD
8
FCA
Site specific
$179,000
FLEXIBLE WORKSPACE & CO WORKING SOLUTIONS
3,300
N/A
$50,000
$1M
HYDRAULIC SERVICE AND MOBILE CONNECTOR SPECIALISTS
120
-
$15,000
VARIOUS OPTIONS
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
CARPET CALL AND SOLOMONS FLOORING 24 Jutland St, Loganlea, QLD 4131 Ph: (07) 3489 1361 Mobile: 0402 791 187 Email: jack.mcclane@floorstores.com.au Website: www.carpetcall.com.au/about-us/franchises
CLARK RUBBER FRANCHISING PTY LTD Administration Building, 254 Canterbury Road, Bayswater VIC 3153 Ph: 03 8727 9999 or 138090 Fax: 03 9729 3266 Email: promoinfo@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.firesafetyfranchise.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 Email: bdm@justcuts.com Website: www.justcuts.com
LOCK & ROLL 38 Redfern St Wetherill Park NSW 2164. Ph: 02 9651 3444 Email: franchise@lockandroll.com.au Website: https://www.lockandroll.com.au
NANOSHIELD 2/5 Michellan Court, Bayswater VIC 3155 Ph: 1800 267 924 (1800 COSY 24/7) Email: info@nanoshield.com.au Website: www.nanoshield.com.au
FCA & AIG $65,000 + GST (Australian Industry $30,000 + GST (incl Franchise Fee) Group) + vehicle
NEW YORK MINUTE 237 Faraday St Carlton VIC 3053 Ph: 0420 514 795 Email: antony@newyorkminute.com.au Website: www.newyorkminute.com.au
REGUS / IWG (HOLDINGS) AUSTRALIA PTY LTD Ph: (02) 9220 5000 Email: Franchise.AU@iwgplc.com Website: franchise.iwgplc.com/en-gb
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
72 Business Franchise Australia and New Zealand
FRANCHISE THE SEASONS ART CLASS Mike Curry Ph: 02 8318 7755 Email: theseasonsartclass@yahoo.co.uk
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: 1300 810 233 Email: franchiseenquiries@snap.com.au Website: www.snap.com.au
NATURE OF BUSINESS
OUTLETS
ASSOC MEMBER
INITIAL FEE
MIN INVEST
adult art classes
OVER 150 IN THE UK & EUROPE AND EXPANDING WORLDWIDE
-
-
$59,995 + GST
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
RESURFACING
100+
-
From $5,000
$20,000 to $64,350 Finance avail from $75 p/w
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
Subway Systems Australia Pty Ltd
Quick Service Restaurant (QSR)
Level 1, 42 Amelia Street, Fortitude Valley QLD 4006 Ph: 1800 630 355 Email: australia_development@subway.com Website: www.subway.com.au
SUPERGREEN SOLUTIONS FRANCHISING 161 Ingham RD, West End, QLD, 4810 Ph: 07 4772 7655 Email: franchise@supergreensolutions.com.au Website: www.supergreensolutions.com.au
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
ENERGY EFFICIENT PRODUCTS
Australian Food & Grocery 1354* (AU), AUD15,000 + Council, National Retail 263* (NZ), GST (Australia), Association, Franchise 41,526* in 108 Council of Australia, USD12,500 + GST countries Australian Packaging *as of 5 Sept 2019
Covenant Organisation
81 in 9 countries
FCA
$48,000 + GST
$85,000 Incl. Franchise fee, sign written, equipped van. + vehicle lease
FCA, BFA
$40,000
$150K - $400K depending on size & concept
AWA
$40,000
Varies depending if vehicle needed
CHOCOLATE LOUNGES, 11 worldwide PAVILIONS, BARS
RETRO-FIT DOUBLE GLAZING
Site dependent
(New Zealand)
4 AUS, 42 NZ
A-Z Listings are a great way to promote your business FASTA PASTA
d and a 35 year With our authentic Italian backgroun Australia’s largest, success story, Fasta Pasta is now ‘fresh pasta’ Italian independently owned group of restaurants.
, with healthy An innovative ever-evolving menu anding service, options and a commitment to outst being voted Roy have all contributed to Fasta Pasta urant of the Year’ in Morgan’s ‘Quick Service Resta fresh, family meals able, afford our for d 2018. Love gs, this is a undin surro sed licen in relaxed, fully
our award winning great opportunit y to be part of initial training and sive Exten n. isatio national organ franchisees ongoing support is provided. New one of our company undergo 12 weeks of training in as, front of house, restaurants covering areas such work, PPS, and kitchen (all areas), necessary book Management skills. a successful For more information on joining franchise call 08 8304 8600 .au, email franchise@ fastapasta.com .com.au or visit our website www.fastapasta
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
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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
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.
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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 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
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
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
floor stores franchising carpet call and solomons flooring
Carpet Call and Solomons Flooring group has been a part of Australian flooring for decades. Solomons started in 1890 and Carpet Call opened in Brisbane in 1975. We have over 120 stores nationally. With over 70 franchised stores across Australia, we have fantastic opportunities for growth throughout QLD, VIC and NSW, as well as small pockets of areas in the other states.
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
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. To find out more about FCF contact Jacob Foster on 0488446625 or alternatively to find out more information head to https://www.firesafetyfranchise.com.au/
The beauty of our model is that it works well as a stand-alone flooring business, but it also can be bolted onto an existing business, like tile shops and window retailers. In as little as 40m2, existing retailers can add one of our stores into their existing business. The great benefit of this is low set up costs as well as little to no increase in overheads like wages, etc. Interested? Contact Jack McClane, National Franchise Manager on 0402791187 to see if this sounds right for you.
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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
scope to grow the business to a level that suits you. Another great bonus is our FLAT franchise fee. Yes, our fee is a flat franchise fee system so you can work hard and earn as much as you like and pay the same at fee with all training and ongoing support included. If you are ready for a change then you need to put us on your list. We have selected opportunities around Australia so give us a call and come for a ride along. For more information ph: 131546 or visit www.jimspoolcare.com.au
JUST CUTS™
income stream in each salon.
Just Cuts has over 29 years’ experience across Australia and New Zealand. Now the largest hairdresser in the Southern Hemisphere.
A recent study conducted by the Franchise Relationships Institute, franchisee satisfaction with the Just Cuts™ System was rated higher than any other franchise group in the benchmark.
Embracing business management and training Technology allows owners to remain on the pulse of the business remotely, and hence over 53% of Just Cuts owners are multi salon operators. The dedicated Academy Team provide Operations and Marketing support and the Justice Product range is providing our owners with secondary
Lock & Roll If you’re a bit of a DIYer and a practical, handson person with an engaging 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
NANOSHIELD NanoShield’s energy saving nanotechnology window treatments will add value to homes by improving thermal comfort, energy saving, UV protection and condensation suppression. Franchises are available for discerning and passionate individuals who want to join a strong team and help improve the quality of life for Australians through the sale and installation of NanoShield Cosy 24/7! Share in this exciting ground floor opportunity as we match a globally
New York Minute We have built our business around the philosophy that it’s what’s inside our burgers that counts. What’s become more important in today’s food industry landscape is you must have a full proof Uber franchise. If you are not investing in an Uber proof franchise, you are investing in a financial disaster. Our story began in 2010 when our founder Antony Crowther decided to apply 20 years of QSR experience and created a traditional American
76 Business Franchise Australia and New Zealand
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
Franchisees 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
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
burger range that customers were craving. New York Minute now has 8 locations across Melbourne, with ambitious plans to expand both in Victoria and Interstate. Our commitment to our franchisees is to remain at the forefront of the food industry. Flexibility and reaction time in being able to adapt our model to suit consumer behavior, we believe is the single most important thing in today’s food industry. If you are interested in finding out more, please contact Antony Crowther on 0420 514 795, email antony@newyorkminute.com.au
IWG (Regus) Imagine being given the chance to work with hugely successful established franchise industries such as restaurants or gyms at the beginning of their growth explosions. This is an opportunity to diversify away from traditional franchise markets, and benefit from strong cash returns and attractive returns on investment. Now is your chance to start a new franchise with IWG plc, the global operator of leading workspace providers, with brands to match every requirements and style, like Regus and Spaces.
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
The Seasons Art Class The Seasons Art Class is an adult art class franchise providing art classes one day per week. This is a great opportunity, low investment, no inventory, not need to rent a location. Great for part-time or as an added revenue stream. Our business has been in operation since 2009 and is the original provider of these inspired courses.
IWG has been running successful workspaces for 30 years, ever since it founded the industry in 1989, and is present today in 3,400 locations, 120 countries and 1,100 towns and cities, with over 2,5 million customers. The flex-office market has reached a tipping point and we are seeking franchise partners to help drive the pace of our growth across the World. Is this investment opportunity right for you? URL: franchise.iwgplc.com Email: franchise.AU@iwgplc.com
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.
The system has proven so successful that it has been expanded throughout Europe, North America and Australasia with many, very happy Franchisees and countless students. With well over 125 successful franchises already in operation right throughout the UK (and growing), we’re now offering the opportunity for you to be part of this successful group and run your own business in your area.
There have been many imitators in that time but none have managed to match the comprehensive process and systems that we formulated and continue to improve on year after year.
Using our proven business systems, you have the potential to earn a full-time wage for part-time hours! For more information contact Mike Curry email: theseasonsartclass@yahoo.co.uk
SNAP-ON TOOLS
technicians, with an established network of franchise operations across the globe.
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.
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
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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.
Subway Systems Australia Pty Ltd Subway® offers a fresh alternative to traditional fast food.
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
With more than 1,350 locations across the country, Subway® is Australia’s largest restaurant chain*, serves nutritious and delicious subs, salads and wraps along with its iconic cookie range.
Guests can choose from 37 million combinations of premium-quality meats, cheeses, fresh vegetables, and cookies & bread baked daily.
For franchise inquiries, please contact Michelle Milne at 1800 630 355 or australia_development@subway.com.
SuperGreen Franchising for SuperGreen Direct
needed. i.e. Home shows, Display Homes, Builders, Eco- Fiesta’s, Commercial and residential clients.
SuperGreen Solutions have been globally trusted energy efficient products specialist for over 20 years’ with over 81 locations in 9 countries. SuperGreen recently released a mobile version of the bricks and mortar model in the form of SuperGreen ‘Direct’. Which is simply a mobile One stop - Energy Efficient products showroom.
Our Franchisees Demonstrate & Display, Print the Quote, Sign the deal, Email the invoice and take the deposit from within a fully connected SuperGreen Mobile office. At the same time, these franchisees enjoy the freedom of working when they want, without the need for costly premises and leases.
SuperGreen Direct Franchisees enjoy the ability of going directly to where the business is, when
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.
*based on number of restaurants.
To secure your area, Call Sean on 07 4772 7655 or 0481167423 or Email franchise@supergreensolutions.com.au
Our franchise offers: • Innovative and unique concept that includes all of life’s pleasures- chocolate, coffee, food, alcohol and retail. • Highest quality chocolate products. • Full training provided. • Professional support team with a range of skills to assist you. With new stores opening in countries across the globe, be part of something special. Contact Ben on +61 431 727 004 E: ben@theobroma.com.au www.theobroma.com.au
Thermawood
Become part of the success story with:
Thermawood Retro-Fit Double Glazing System is designed to retro-fit double glazing into existing wooden windows. Proven systems and processes with the Thermawood Patented drainage system.
• Full Training and ongoing support • Strong industry Growth • Full Advertising & Marketing • Patented product new to the Australian Building industry. We are looking for passionate self-motivated people to join the Thermawood team.
Retro-Fitting fitting double glazing into existing wooden windows allows the home owner to retain the character of their windows, be more energy efficient, reduce energy costs and reduce noise.
Please contact Thermawood Retro-Fit Double Glazing for more information.
Along with installing double glazing Thermawood installers also fit draft/sound seals to all types of windows including double hung windows, casement windows and doors.
Info@thermawood.com.au www.thermawood.com.au 0455 555 330
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