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VOL 14 ISSUE 01 nov/dec 2019
special feature
health, fitness & beauty FRANCHISES
TURNING CUSTOMERS INTO RAVING FANS
Make a Beautiful Business Choice With a
Franck Provost
franchise
$4.95 (AUD), $7.95 (NZ) inc. GST.
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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
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VOLUME 14 ISSUE 1, nov/dec 2019 president: Colin Bradbury. colin@cgbpublishing.com
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From the publisher & editor
publisher: Vikki Bradbury. vikki@cgbpublishing.com
“The way to get started is to quit talking and begin doing.”
EDITOR: Hayley Drew. editor@cgbpublishing.com.au
Walt Disney
Vikki Bradbury
SALES & marketing manager: Kathleen Lennox. kathleen@cgbpublishing.com.au PRODUCTION: Mallory Anderson. production@cgbpublishing.com.au ACCOUNTS: accounts@cgbpublishing.com.au
Hayley Drew
Welcome to the latest edition of Business Franchise Magazine Australia and New Zealand. This will be our last issue for 2019 and we would like wish all of our readers a Merry Christmas and prosperous New Year. It has been a pleasure bringing you all the latest news, articles from leaders in the industry and information from the franchising sector this year.
GRAPHIC DESIGN: Jejak Graphics - Michelle Quinn jejak@bigpond.com
We have a bumper issue of Business Franchise Magazine for our readers this November/December. We are delighted to feature Franck Provost on our cover; turn to page 10 to read about the brands ambitious plans to become the country’s leading high-end hairdressing franchise.
COVER IMAGE: FRANCK PROVOST
Included in this issue is our quarterly executive publication, Business Franchisor, which you can find on page 25 and includes informative articles from John O’Brien – Founder of Poolwerx and James Scurr – Founder and Managing Director of Franchise Finance Australia.
TO SUBSCRIBE: www.businessfranchiseaustralia.com.au or www.isubscribe.com.au
Our special feature this issue showcases Health, Fitness and Beauty franchises. The health, fitness and beauty industry is booming, with franchise opportunities ranging from gyms and weightloss centres, to hairdressers, beauty therapists, laser and cosmetics centres and home care services, read more about this exciting sector on page 39.
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
As always there is plenty of franchising news, expert advice articles from our professional contributors and useful information for franchisors and franchisees alike. 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 20-21 March 2020. Visit www.franchisingexpo.com.au and use the code BFM when purchasing to secure your free ticket. Enjoy the read! Vikki Bradbury & Hayley Drew Business Franchise Magazine
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.
SUPPLIER FORUM
Th of in for fra
contents
november/december 2019
On the Cover
10
40
10
Cover Story: Franck Provost
39
Special Feature: Health, Fitness & Beauty Franchises
22
Expert Advice: Turning Customers into Raving Fans
Make a Beautiful Business Choice with a Franck Provost Franchise
In Every Issue 8
What’s New!
Announcements from the Industry
12
A Message from the CEO
Mary Aldred, Franchise Council of Australia
42
Feature Editorial: Health, Fitness and Beauty Franchises: Feel Good Franchising
70
Hot Topics: Behind the Headlines
Jason Gehrke, Franchise Advisory Centre
73
Professional Services Listings
74
Franchise Listings
76
Franchise A—Z Directory
Focus Feature 62
46
National Franchise Insurance Brokers: The NFIB Advantage
Snapshot 14
Ecomist: Ready for the Future
Profile 68
50
60
Franchising Expo: Expo Focuses on Franchising Success
Expert Advice 16
Becoming a Franchisee - Tricks and Traps
20
Three Ways to Transform Your Disconnected Team
22
Turning Customers into Raving Fans
64
Fashion and Function - When a Uniform isn’t Just a Uniform
66
Five Customer Service Mistakes that Drive Us Crazy
Robert Toth | Marsh & Maher Richmond Bennison
Michelle Sales | Michelle Sales
David Sharrock | Sharrock Pitman Legal
Pamela Jabbour | Total Image Group
Darrell Hardidge | Saguity
9
also in this issue: Business Franchisor
Appliance Tagging Services. ...............................76
On the Cover
Battery World................................................................76
32 Expert Advice: What Will Franchise Finance Look Like in 2020?
BK’S Takeaway............................................................76
36 Expert Advice: Curating and Building a Successful Franchise Model
Boost..................................................................................76
Food and Beverage Franchising Feature 28 Expert Advice: Why Lawyers are the Last In Every Issue
Clark Rubber........................................................ 15, 76
26 What’s New!
Deckseal..........................................................................77
Fasta Pasta.....................................................................77
Announcements from the Industry
Expert Advice
FC Business Solutions.............................................. 4
28 Why Lawyers are the Last Brian Keen | Franchise Simply
FCF National - K & J Foster..................................77
32 What Will Franchise Finance Look Like in 2020? James Scurr | Franchise Finance Australia 36 Curating and Building a Successful Franchise Model John O’Brien | Poolwerx
FocalPoint Business Coaching and Training........................................................................... IBC Floor Stores Franchising. .......................................77
Profile
Franchise Finance Aust (Cashflow It)............... 3
30 Wollermann Franchise Developments: The Power of Empathy with Intelligence
Harmoniq.........................................................................73
Health, Fitness & Beauty Franchising Feature Food and Beverage Franchising Feature On the Cover
40 Cover Story: Home Caring - A Perfect Partnership
IP Partnership...............................................................73 Jejak Graphics. ............................................................73 Jim’s Pool Care............................................................78
54 Expert Advice: Health, Fitness and Beauty - Hot Sectors in Franchising
MacPherson Kelley........................................... 35, 73
58 Expert Advice: The ATO Supporting Your Wellbeing
Marsh & Maher. ...........................................................24
In Every Issue
Nanoshield......................................................................79
42 Special Feature: Health, Fitness and Beauty Franchises: Feel Good Franchising
Nirvana Beauty Laser Clinics..............................79
Expert Advice 48 Ensuring You Get a Healthy Return on a Franchise Investment Lindsay Carroll | National Retail Association
Nurse Next Door.........................................................79
54 Health, Fitness and Beauty – Hot Sectors in Franchising Corina Vucic | FC Business Solutions
RYCO.................................................................................81
56 Manual Handling and Repetitive Tasks in Health-Related Franchise Businesses Chris Beasley | Safety Navigator 58 The ATO Supporting Your Wellbeing Andrew Watson | Australian Taxation Office Profile 46 Plus Fitness: A True Turn-Key Franchise Franchisor In Depth 50 Nurse Next Door: Build a Home Care Business with Heart Snapshot 60 Just Cuts: A Cut Above the Rest
Regus...................................................................79, OBC
Safety Navigator..........................................................24 Snap On Tools..................................................... 72, 81 Snap Printing...................................................... IFC, 81 Subway Systems Australia. ......................... 19, 81 SuperGreen Solutions.............................................81 the Lott..................................................................... 38, 82 Theobroma.................................................................... 82 Thermawood................................................................ 82
what’snew! Ferguson Plarre takes the cake with 1st Place in the 2019 Top Franchise Awards For the third year running, Ferguson Plarre Bakehouses have been named the number one Food Franchise in the Top Franchise Awards. With top billing for marketing, expansion and brand, Ferguson Plarre Bakehouses CEO and third generation baker Steve Plarre said he was incredibly proud of the ranking which reflects the high level of support & quality of product they offer their franchisees. “We are a century old family bakehouse business that prides itself on high quality products baked fresh daily. Our gold-medal winning espresso blend and our simple, no-cooking model are what attracts so many to the business. Our franchise partners are a vital part of the family and to have been recognized by them in this way is a very proud moment for us.” Plarre, fourth-generation owner, said. The Top Franchise Awards are independently powered by research house 10 Thousand Feet who anonymously survey thousands of franchisees across over 40 key areas each year. The survey identifies which brands deliver the best overall franchisee experiences in Australia. To be among the overall best performers, a franchisor needs to outperform its rivals in the support that they offer, the lifestyle their franchisees enjoy, passion for their industry and the opportunities they grant. The Ferguson Plarre network continues to expand with 77 stores across Victoria and 2 more due for completion before Christmas; marking this as one of the most successful growth periods in the brand’s history. Ferguson Plarre Bakehouses has franchise opportunities available in Victoria now at www.fergusonplarre.com.au/bakery-franchise/locations-available
Plus Fitness 24/7 Expands into Singapore
Australian gym chain, Plus Fitness 24/7 has announced the opening of its first gym in Singapore making it the fourth country for the gym chain to establish in. Recently appointed Plus Fitness Singapore Master Franchisee’s Darryl and Amanda Ayris, plan to establish 25 gyms in the next three years with nine franchise territories already sold in Singapore. When asked what drove the decision to form a partnership with Plus Fitness, Master Franchisee Darryl Ayris said; “After 12 months researching the 24/7 worldwide gym market and completing extensive due diligence we decided on Plus Fitness as our
partner into Singapore. The fitness market in Singapore is growing rapidly with emphasis on high end state of the art equipment and clubs offering 24/7 access with functional training and classes as standard. The Plus Fitness model was able to deliver a product that was ideally positioned for the market and we are excited to be bringing the brand into Singapore”. Darryl went on to say; “Our first and Flagship Club opens today in Toa Payoh and it will deliver at an exceptionally high level providing a world class offering to its members.” He went on to say; “Plus Fitness provides its Franchisee’s with a powerful and supportive back office that’s at the forefront of the fitness industry. The relationship we have already formed with the Plus Fitness Head Office team and the synergy in business principles will go a long way to ensuring our combined success in Singapore”. Franchisors John Fuller and Nigel Miller, who have an extensive network of over 260 gym franchises sold across Australia, New Zealand
8 Business Franchise Australia and New Zealand
and more recently India under a Master Franchisee arrangement, are excited to now be moving into their fourth international market. Nigel Miller explained; “We are pleased to have formed a partnership with Darryl and Amanda who have extensive experience in the fitness franchising space in both Australia and Singapore. Their work ethic has been unquestionable, already paying off with 9 franchise territories sold in a short period of time”. “We believe our timing for entry into Singapore is perfect and the locations that Darryl and Amanda have earmarked for future growth will see the brand perform well. We look forward to continuing to work with Darryl and Amanda as the interest in the brand continues to grow on a daily basis and are excited for the future not just in Singapore, but the entire region”. Plus Fitness 24/7 Toa Payoh, Singapore has opened today located at Blk 190, Toa Payoh Lorong 6, #02-516, Singapore, 310190. You can find out more by following them on Instagram and Facebook.
Quest Franchisees Support Industry Agenda Quest Apartment Hotels has struck a three-year partnership with the Accommodation Association of Australia (AAoA) to promote the interests of franchisees. The peak body represents the accommodation industry at state and federal tourism boards, industry committees and statutory agencies for the purpose of regulatory advocacy. Legislative updates and industry roundtables further ensure Quest franchisees are kept informed and represented within Australia’s tourism sector. Chief Operations Officer at Quest, David Mansfield said the partnership will help improve serviced apartment standards across Australia.
Bridgestone network reaffirms Leukaemia Foundation support through new funding initiative Australia’s most trusted tyre brand, Bridgestone, and its nation-wide network of Bridgestone retail stores, has announced a three-year extension with long-term charity partner, the Leukaemia Foundation. The declaration coincides with the launch of a new way for motorists to show their support for the organisation. Under the new partnership structure, participating Bridgestone Select and Bridgestone Service Centre locations will donate $2 for every Turanza Serenity Plus tyre sold. The funds raised through the tyres’ sales will go directly to the provision of transport services for people living with blood cancer, as well as research towards finding a cure and providing accommodation for those going through treatment. Bridgestone Select and Bridgestone Service Centre franchisees’ Leukaemia Foundation contribution will also continue to be bolstered by Bridgestone’s corporate support of the organisation.
“The Quest franchisee network manage a large number of assets, staff and guests that support the tourism industry in Australia.
The Leukaemia Foundation is the only national charity dedicated to helping those with leukaemia, lymphoma, myeloma and related blood disorders survive and then live a better quality of life.
“It is, therefore, vital that hotel franchisees are taken into consideration by Australian regulators and policy makers when matters that affect the tourism industry are being addressed.
According to Leukaemia Foundation CEO, Bill Petch, Bridgestone’s ongoing commitment to the organisation will ensure the Leukaemia Foundation can continue to support those living with blood cancer.
“This partnership will also help reduce barriers to investment, generate business opportunities and ensure franchisees understand their rights and obligations,” Mr Mansfield said. The AAoA advocates for opportunities that support consumer demand, reduce regulatory barriers to investment, address labour shortages and ensure sustainable operations for its members. www.questapartments.com.au
“We are immensely grateful to Bridgestone for their longstanding support of Australian families living with blood cancer, through the Leukaemia Foundation,” said Mr Petch. Bridgestone’s partnership with the Leukaemia Foundation is one of the mainstays of the company’s commitment to corporate social responsibility, spanning more than 33 years. Over that time, Bridgestone and its franchise network have funded or contributed to many of the Leukaemia Foundation’s core initiatives. “We’re delighted to extend our partnership with the Leukaemia Foundation and continue our support for the vital services the organisation provides to people living with blood cancer, as well as their families,” said Bridgestone Australia & New Zealand Managing Director, Stephen Roche. To find out more about the work of the Leukaemia Foundation, visit www.leukaemia.org.au.
Business Franchise Australia and New Zealand 9
c ov er sto ry: Fra n c k P rovo st
Make a Beautiful Business Choice With
Franck Provost A glamorous environment, an exciting lifestyle, a supportive family… Open the doors to a thrilling future by becoming a Franck Provost franchise owner-operator. When Franck Provost opened his first salon in Paris back in 1975, he probably never dreamt that a few decades later there would be more than 600 Franck Provost salons in 30 countries around the world! In 2008, inspired by the outstanding success story of this self-made man, Jean-François Carré reached out to Franck Provost with an offer to develop his venture in Australia. They instantly connected and soon a master franchise was granted to Jean-François for Australia. Eleven years later, the Franck Provost Australian network already counts 14 salons, with an ambition to become the country’s leading high-end hairdressing franchise. Business Franchise magazine spoke with the team at Franck Provost Australia about their unique brand, their vision and what it’s like being a part of the Franck Provost family.
Why did you bring the Franck Provost brand to Australia? “Following much research, I chose Franck Provost as it ticked many boxes: it’s a beautiful brand and industry, a world leader yet still a family business with great corporate culture. Plus, I saw an opportunity for the Australian market, as there was a lot less competition in terms of high-end hair salon franchises compared to Europe. I also thought the
10 Business Franchise Australia and New Zealand
glamorous brand image and its accessible luxury positioning were perfectly fitted for Australia,” says Jean-François.
What do you think is unique about the Franck Provost brand when it comes to a franchise partner offering? “Being a Franck Provost franchise entrepreneur means working in a glamorous
environment, being part of a vibrant and creative industry, and getting the latest trends and know-how from Paris, the capital of fashion,” says Jean-François. “Owning and running a hair salon also provides an important role and status in the local community, allowing you to meet all kinds of people. It allows you to have a strong impact on peoples’ lives by making them look and feel beautiful, and influence the way they interact with others both personally and professionally.”
What potential for growth do you see for individual salons and also the Franck Provost brand in Australia? “The existing Franck Provost salons are currently growing by about five per cent compared with last year on average, which sits well above the median 1.4 per cent growth in the hair and beauty industry in general. We believe there is probably room for around 40 to 60 Franck Provost salons across all major Australian cities. This is still quite conservative compared to the nearly 500 Franck Provost salons there are in France!” Says Jean-François.
How does your service benefit franchisees/franchisors? Why outsource these activities? “At Franck Provost Australia we have heavily invested in a full head office structure and support team, which includes a Head of Education and Talent Management who delivers ongoing training on the Franck Provost concept and customer experience, as well as exclusive hair cutting and colouring techniques. We also provide all the proven tools and systems, as well as a comprehensive operations manual, to help optimise business performance and success,” says Jean-François. “And on top of the Franck Provost franchise, we have also launched supplementary optional support services, where we can additionally look after bookkeeping, accounting, financial reports, payroll, HR, and also help with recruitment and local marketing.”
What qualities do you look for in a prospective franchise partner? “We are looking for individuals who share a positive, entrepreneurial mindset and a genuine commitment to making their salon grow and prosper. Franck Provost provides full training in professional hair salon management, so no hairdressing experience is necessary.”
“We are looking for individuals who share a positive, entrepreneurial mindset and a genuine commitment to making their salon grow and prosper.”
Your career was outside the hair industry, so what made you open your own Franck Provost hairdressing salon? “I decided to take the plunge and operate my own business by opening a Franck Provost hair salon. I knew the Franck Provost brand very well as I am French; it is a very popular hairdressing name in France. Moreover, I am actually from the town where Franck Provost opened his first salon in 1975, so I felt there was a connection,” says Virginie Henriet, Franck Provost’s Mosman franchisee. “I really like working in the luxury beauty industry; it is a great sector of services. Franck Provost is a well-positioned brand in that it is high end, yet accessible, so there is no elitism. The good thing is that you can always change and improve it because it is your own business.”
What do you enjoy most about being part of the Franck Provost family? “Where do I Start? Firstly, I think the support from Head Office and the other franchise partners is great. Being our first business and not having much insight into what it takes to start a business, the franchise was heavily involved in getting us started and providing
us with the tools and advice we needed to get going. The ongoing support to date has still been great, the office and head management team are always there for support when we need it,” says Sonya Wilson, Franck Provost’s Chatswood franchisee.
What is your favourite part about owning a Franck Provost salon? “Having the Franck Provost Academy in Sydney is fantastic because our team is always being trained in the latest trends and techniques coming out of Paris. When your job is to give your clients a luxury experience, quality and consistent education are absolutely essential,” explains Freddy Pinzon, Franck Provost’s Paddington franchisee.
Want to own a little piece of Paris? Franck Provost has flexible franchise opportunities available at a number of key locations around Australia and the expert franchise partnerships team will be happy to help you through every step to find the most suitable site for you. For more information 02 9331 5147 partnerships@franckprovost.com.au franchise.franckprovost.com.au
Business Franchise Australia and New Zealand 11
f r a nc h i s e c o u nc i l o f aust r a l i a
Time to Redress the Shopping Centre Leasing Power Imbalance There is no doubt that many small businesses in major shopping centres are currently in a difficult financial position. Flat or declining sales, serious margin compression and, according to a recent report by the UBS Evidence Lab, a 15 per cent drop in shopping centre visitor numbers combine with the pressures of increased rent, wages (notably penalty wages), utility costs and overheads to squeeze small business profitability. In already difficult circumstances, shopping centre landlords often make the situation worse, with excessive rental increases and abuse of market power, in particular, causing substantial financial hardship for franchisees and franchisors. By mandating excessive rental increases, particularly at the end of term when the tenant is at its most vulnerable, landlords can take advantage of the substantial information imbalance and the vulnerability of the tenant to extract an unreasonable rental increase that has no regard for the viability of the business at the location. The abuse of market power to continually add new competitors to the shopping centre consistently and negatively impacts the revenue of existing tenants with no offer of rental abatement.
“In already difficult circumstances, shopping centre landlords often make the situation worse, with excessive rental increases and abuse of market power, in particular, causing substantial financial hardship for franchisees and franchisors.� Mary Aldred | CEO | Franchise Council of Australia
common), often with automatic annual rent increases (five per cent is standard, and usually above CPI), yet landlords retain the right to add new competitors that reduce business revenue without compensation. Landlords can exploit their superior bargaining power, armed with detailed information collected from tenants (and competitors) that enables them to know precisely how much rent the tenant can afford to pay. On the other hand, tenants have little or no access to market information and no bargaining power. This dynamic is particularly harmful in circumstances where a tenant is renewing their lease, and the alternative to accepting a landlord’s rent offer is to walk away and sacrifice the significant sunk costs involved in establishing the business. Despite this harsh paradigm, franchisors have a limited capacity to influence landlord behaviour. Ultimately, landlords are not regulated to the same extent as franchisors, nor scrutinised as closely by the media, so are less accountable for hard-nosed business practices.
The essence of the problem is the captive nature of the business relationship, which enables landlords to require vulnerable small businesses to commit to contractual arrangements that are open to abuse.
Given the severe pressure our retailers are facing in the current environment, now is the time to look at reforming the regulatory regime for shopping centre leases, to recalibrate a broken system and protect vulnerable retail tenants.
Tenants are required to commit to high rentals with relatively short lease terms (five years is
Against this backdrop, it was no surprise that when the FCA recently surveyed members
12 Business Franchise Australia and New Zealand
about their current economic and business issues, leasing was highlighted as one of the top business challenges members are currently facing.
The case for a Retail Leasing Code The FCA is concerned about the critical level of pressure unfair commercial leasing arrangements and exorbitant rental increases are having on small businesses operating in the retail sector. While traditionally a state government issue, the power imbalance has created a competition issue that the FCA believes needs to be remedied by a sector-wide code of conducted implemented at a federal level. To that end, the FCA proposes the development of a voluntary Retail Leasing Code that applies to landlords and tenants or representative organisations that are signatories to the code under the legislative framework provided by the Competition and Consumer Act (CCA). Industry-specific regulation can be achieved very effectively and efficiently under the industry code framework overseen by the Australian Competition and Consumer Commission (ACCC). The ACCC is well placed to oversee the operation of a shopping centre leasing code and has previously
“The introduction of new regulation to address the power imbalance within major shopping centres will be a difficult task and is unlikely to be achieved without a considerable commitment from all stakeholders and Government.”
expressed its concerns about unconscionable conduct and unfair contract terms in retail leasing. The content of the code would be developed as part of the consultative process involving all key stakeholders. However, it would need to address the key identified concerns, including: • The significant and unfair financial impact on sitting tenants if competitive offerings are added. One proposal is for tenants in major shopping centres to be allowed to exit their lease without penalty by giving three months’ notice in the event that the landlord introduces a new tenant that materially competes with the existing tenant. • End of term arrangements that result in substantial rental increases for sitting tenants, in circumstances where the tenant has no real option but to continue, need to be addressed. Similarly, some form of hardship relief needs to be offered to sitting tenants whose business is no longer viable. • Measures to address the massive information imbalance between landlords and tenants, possibly by prohibiting landlords of major shopping centres from collecting, acquiring or distributing information on turnover and profitability of tenants.
• The introduction of a dispute resolution procedure similar to the Franchising Code of Conduct would be a welcome tool in allowing tenants to openly discuss their concerns with landlords without the expense and inefficiency of litigation. The proposed code would also aim to increase transparency and reduce compliance costs for landlords and tenants by using consistent national disclosure and occupancy documents. The code would intend to overlay additional protections on the existing state regimes, which would apply only to the specific submarket of major shopping centres. The code would compliment and enhance existing state laws by adding a higher benchmark for the major shopping centre landlords and addressing some of the unique issues in that field. The application of the code could be limited to shopping centres, or landlords, of a certain scale.
What can the franchise sector do? The introduction of new regulation to address the power imbalance within major shopping centres will be a difficult task and is unlikely to be achieved without a considerable commitment from all stakeholders and Government. Any move towards higher
regulation within the sector is likely to face resistance from the major landlords and their lobby groups, as it will undermine a protective business model which embeds profitability. However, the current system is broken, and the status quo needs to be disrupted. Franchisors can support initiatives to change the rules by engaging with the Franchise Council of Australia in their work advocating for reform in this field. In the meantime, both franchisors and franchisees should consider more closely scrutinising the proposed lease terms offered by shopping centre landlords and avoid short-term benefits offered by landlords (such as fit-out contributions) at the expense of long-term viability. Landlords should be asked to provide assurances as to tenancy mixes and exclusivity, or an option to terminate without consequence in circumstances where the landlord introduces competitor businesses. In addition, caps on rent increases for renewal terms ought to be contemplated. Ultimately, if reasonable lease terms cannot be reached with the landlord, franchisors should reconsider whether the risk of placing a franchisee into a shopping centre lease is too high to bear. www.franchise.org.au
Business Franchise Australia and New Zealand 13
sna ps h ot: Ecomist
Ecomist: Ready For the Future Ecomist has 36 franchised territories across Australia, and we service all metro and most rural areas. Over the last 25 years, we have developed a secure and proven franchise model with a set of values that are common to both the franchisor and franchisees. At the centre of our values is mutuality, which ensures that we act in the best interests of both parties.
business growth from low single digits to double digits this year.
The main markets we service are schools, aged care facilities, childcare, hospitality, restaurants, farms and domestic homes.
• Scent Diffusors with a new fragrance range
What needs do you satisfy, and how do you compete?
Business Franchise magazine recently interviewed Gary Vandoros, General Manager of Ecomist Australia, about the company prospects and how they compete in the dynamic and highly competitive hygiene market. Who is Ecomist? Ecomist started in New Zealand in 1993 and was introduced to Australia in 1994. From its humble beginnings in a back-yard shed in Nelson, it has developed into a multi-million dollar business with a presence in Australasia, Asia and Africa. The business was founded on the invention of a programmable aerosol dispenser which was used initially for insect control in domestic homes. It then expanded into fragrancing and odour control through a partnership with French perfumist, Yves Dombrowsky. Together, we have developed hundreds of fragrances to meet the needs of our customers. While we specialise in insect and odour control, we also help our customers achieve best practice hygiene through our extensive range of high-quality hygiene products.
The hygiene market is very competitive ranging from large multinationals to small individual businesses and many of our customers want a single provider for their hygiene needs. While our core focus is on insect and odour control, we have sourced a range of high quality hygiene products that allow us to meet our customers’ need for a single source provider. We treat each customer according to their unique needs and our solutions are tailored accordingly. We pride ourselves on having best-in-class products and services and our ultimate aim is to enhance the working and retail environments of our customers to allow them to focus on their customers.
How have you helped your franchisees grow and become more profitable? Our franchisees operate with between one and 10 staff, depending on the size of their business. Their time is primarily split between servicing existing customers and developing new customers. Two years ago, we recognised that many of their businesses were stagnant. They were spending too much time on servicing and not enough on business development. We introduced new technology in our systems to allow for longer service intervals, thereby saving time on servicing and using this time to gain new customers. The new technology has also improved service profitability by 30 per cent and helped drive
14 Business Franchise Australia and New Zealand
We have introduced three new products that meet the criteria of “best-in-class” over the last 12 months: • The toughest metal soap dispenser on the market • Futurize Blue Light Insect Traps
Why should a customer choose Ecomist? We have national coverage of both Australia and New Zealand, and our franchise partners are all passionate about their service, which we believe is the best on the market. Our core products are of the highest quality: • Aerosols are manufactured in New Zealand. • Our natural pyrethrin is sourced from Tasmania and East Africa providing invaluable support for local farmers and subsistence farmers in Africa. • Perfumes are sourced from France and are manufactured according to the International Fragrance Association standards. • Our solutions are fully serviced and maintained. • We are “local businesses” and have a deep understanding of our customers’ needs. • Customers are not locked in to contracts so there is no risk in giving us a go.
Are there opportunities for people wanting to become an Ecomist franchisee? We currently have opportunities in Melbourne, Central Victoria, WA, North Queensland and Tasmania. Anyone interested is welcome to contact me: Gary Vandoros gary.vandoros@ecomist.com.au 044 774 3157
BUILD YOUR FUTURE WITH A RETAIL ICON As one of Australia’s iconic retail brands, with a proud history over the past 70 years, we now have 60 stores nationally. Our award winning franchise model commenced in 1995 and offers a vibrant product range providing you with a great platform to start your own successful business in the pool and spa industry. Clark Rubber Large Format Retail Stores High Investment
Our business development and support teams will assist you in building your successful business. We have three exciting franchise models where we are looking for new, motivated and business orientated franchisees for: • Clark Rubber Large Format Retail Stores High Investment • Clark Rubber Pool & Spa Shops Moderate Investment • Clark Pools & Spas Onsite Care Territory Vans Low Investment
Clark Rubber Pool & Spa Shops Moderate Investment
Our industry knowledge will help you build a strong business, becoming the local pool specialist in your territory and helping you work in a lifestyle environment. Our franchisees benefit from: • Unique retail business model • 4 week training program Clark Pools & Spas Onsite Care Territory Vans Low Investment
• Group buying power • Effective national and local marketing strategies • Business development support & advice • Site selection and lease negotiation assistance • Ample growth opportunities • Multi store owner development program
If you are interested, then the first step is to enquire with us directly. Please feel free to make an enquiry at:
clarkrubber.com.au
Alternatively, you can call us on: 13
80 90
Business Franchise Australia and New Zealand 15
e x pert a dv i c e
Tricks and Traps
when becoming a Franchisee I was at a dinner party recently and Jack, who I didn’t know very well, asked what do you do, Rob? I’m a franchise lawyer Jack, I replied. Then Jack said, that’s a shame who would want to be a franchisee or franchisor these days with all the bad press? Well, Jack, I said, as a matter of fact, many people still do, for many reasons as franchising is an integral part of a thriving economy, and contributes greatly to employment and is a model that operates around the world. The banking sector didn’t close down, and people didn’t stop using banks despite the revelations that came out of the Banking Royal Commission. The same applies to franchising. Franchising will continue to thrive, but franchisors need to be more transparent and ensure they deliver on what they promise. Change is positive, and changes in the laws and expectations can be positive in a sector. Franchises that take up the challenge and adapt will do well and pick up market share in their sector. The Franchise Code changes that are likely to come into place after the Parliamentary Inquiry into the franchise sector will likely ensure greater transparency by franchisors when offering a franchise opportunity, but it won’t prevent franchisees failing, that’s a business risk and can happen for a myriad of reasons beyond the franchisor’s control or business model. These changes also make us as advisors, consider new ways to approach the market and help to ensure franchisors are offering sustainable models that work for both parties. The media focus on the negative, and franchise lawyers have many a ‘war’ story
“Research, research and research and compare like systems - then make a list of pro’s and cons of each, and narrow down the system that may be more suitable to you and your lifestyle, and meets your expectations.” to recount, but there are practical steps that franchisees can take to limit their risk. So, what can you as a new and eager prospective franchisee do to limit your risk? Here are some practical considerations: • Read your franchise agreement. • Speak to other franchisees. • Seek specialist franchise advice. • Do your due diligence on the franchisor just as they do their due diligence on you. • Can you honestly see yourself and or your partner working in the business in one year – selling chooks is likely to have a limited life span!
16 Business Franchise Australia and New Zealand
• Research, research and research and compare like systems - then make a list of pro’s and cons of each, and narrow down the system that may be more suitable to you and your lifestyle, and meets your expectations. • Consider the location whether an existing or new ‘greenfield’ site and assess - is it an A, B or C grade site? Are you paying an A grade cost to get into a C grade site? • Is the location practical for you to attend work each day? For example, if you live in Bundoora but have to attend the business in Werribee every day - there is a cost, your loss of time, transit costs and inconvenience.
operational costs of the business – they may not include a wage for you as the operator or for a manager. Often the franchisors disclosure document underestimates the working capital you may need to cover the first 6 to 12 months of operation. So do not assume, do your independent checks and searches, for example, speak to a local commercial agent about the proposed lease terms to see if the rent and terms are reasonable and within the then-current market and ask the questions you need and get it in writing.
Fundamental financial indicators Two primary indicators will determine whether your business is likely to be viable; that is: • Your occupancy costs (rent and outgoings) as a percentage of your turnover and;
“You should never feel obliged to proceed or rushed into making a decision just because you have gone some way down the track in your preliminary discussions.”
• Your staff costs as a percentage of your turnover. Assuming the franchisor has given you some indication of your expected turnover (as it is unlikely they will provide you with projections as to profit) you can then readily assess using the above two indicators if the business has any chance of being viable and allow you to: • Draw a reasonable salary for your effort out of business and;
“Franchisors need to be more transparent and ensure they deliver on what they promise. Change is positive, and a readjustment due to changes in the laws and expectations can be positive in a sector.”
• If you are likely to see any return on your investment (ROI) after paying interest on your borrowings. Understanding these two basic measures before you commit will allow you to make an informed decision on your risks and reward.
Robert Toth | Partner | Marsh & Maher Richmond Bennison
Do not assume! One of the things we often hear as franchise lawyers is that the franchisee assumed all sorts of things prior to signing their agreement, but never documented them. Assumptions are just that. If you don’t understand an issue, say so. If you are promised something by a franchisor, make sure it is in writing and ensure it’s confirmed as conditions in the agreement. It is very difficult to rely on a verbal statement. If the franchisor does not confirm in writing, then follow up with an email in which you can refer to the discussions and recite what was said agreed to or promised.
1. That the franchisor would negotiate the best lease terms for me. 2. The franchisor had negotiated me a rentfree period and landlord contributions to the fit out. 3. The franchisor would apply for all my licences and permits I need to start operating the business? 4. The franchisor would supply me with products at better prices than I could source from suppliers. 5. The franchisor would be there for me all along the way if I had issues with the business and would visit me regularly and support me.
You can bet that if the franchisor does not agree with what you understood and reflected in your email, they will respond!
6. I wasn’t aware that I had to do a re-fit of the business fit-out, which would involve a large capital cost.
Here are the top assumptions we often hear from clients:
Don’t assume that the financial model the franchisor has given you covers all of the
Franchisees who do this simple exercise are astounded, yet some never know these two indicators until years after operating their business. They were working hard; the revenue was what they expected, but they didn’t know why they were not getting ahead? I took a client through this exercise recently and calculated her occupancy costs as a percentage of her turnover was 28 per cent, and her wage costs 35 per cent. There was nothing left for her to even take a minimal salary for her 60 hours of effort per week. There lay the problem!
Acceptance The courts have said that the grant of a franchise does not give the franchisee a right or necessarily an expectation to make a profit. It is the right to operate under the franchisor’s brand and system to generate sales and revenue.
Business Franchise Australia and New Zealand 17
e x pert a dv i c e
Therefore, franchisees need to accept that there may be no pot of gold at the end and the best outcome may be simply taking a salary along the way and hopefully paying off interest and debt over time.
“Sometimes it is hard to walk away and take a loss, but it may be less costly than trying to exit once the agreements are signed and the business is up and running.”
There is no guarantee that you will make a capital gain at the end of the day. Franchisees, therefore, need to test the franchisors financial model (if they provide one) and get financial advice before you commit! Financial, accounting and legal advice are critical to limit your risk. Although optional, we suggest it should be compulsory and similar to applying for finance where the banks require that the customer seek independent legal advice.
Should I stay, or should I go? Communication is the key to any ongoing relationship with your franchisor, so if there are alarm bells speak up and raise them as soon as they occur with the franchisor. A responsible franchisor will listen and respond to any query raised, and this will instil confidence in the relationship. You should never feel obliged to proceed or rushed into making a decision just because you have gone some way down the track in your preliminary discussions. Once you are in the business, there is no easy way out for a franchisee. Sometimes it is hard to walk away and take a loss, but it may be less costly than trying to exit once agreements are signed and the business is up and running. Franchisors have the right to reject a franchisee for example, where the franchisee may not have the capital resources, experience or licenses needed or they do not succesfully complete training. Franchisees also have quite a few opportunities to walk away before being fully committed, and you should bear this in mind:
When can a franchisee walk away? Franchisees can walk away before being fully committed (although there may be a cost to do so) at the following times: • Within the 14-day disclosure period from when the franchisee receives the franchise agreement, disclosure document, copy code and advice certificates. If they choose to withdraw during the 14-day period, they are entitled to a refund of all monies paid to the franchisor or any agent. • After the 14-day disclosure period and before they sign the franchise agreement –
The franchisee can decide not to proceed and forgo the document fee they have paid and any other fees they have paid upfront to the franchisor at that point provided those amounts are set out in the disclosure document. • Within the seven day cooling off period after signing the franchise agreement or having paid any monies to the franchisor, the franchisee may again forfeit some money paid upfront, as set out in the disclosure document, but far better to exit at that point than after the agreement is signed. Getting the right advice from specialist advisors who know the sector and are members of the Franchise Council of Australia (FCA) is great insurance. Getting advice from your neighbourhood property lawyer (no offence!) may end up costing you a whole lot more in the long run and getting advice from your friends or neighbours is no advice at all! Franchise specialist lawyers who are members of the FCA are up to date with the market, and the laws and we know what’s going on in the world of franchising. Specialist advice is knowledge and experience the local lawyer around the corner may not have. Remember, once you commit to a franchise, there is no easy exit!.
What to do if you are in strife? Ask the franchisor for help! Enquire about further training in a specific area, for example, stock control, point of sale, presentation, converting leads to sales. Identify what you believe is not working for you and tell the franchisor. Put things in writing - emails are evidence and can be relied on. It is business, so be professional and business-
18 Business Franchise Australia and New Zealand
like. Do not resort to abusive or threatening verbal or written conduct or threaten to go to A Current Affair. Stay professional and focused on resolving the issue. If a response from the franchisor is inadequate or non-existent, seek legal advice from a franchise law specialist to understand your options. Knee jerk reactions may lead you down the wrong path and also destroy any ability to resolve the issues with your franchisor. Identify if it is an operational issue that needs fixing so you can get on with business or is it a deal-breaker ‘end of relationship’ issue. Clear communication and identifying the outcomes you seek and being realistic is also important. Consider if mediation may be the right forum for the issues in dispute. Lastly don’t threaten litigation, unless you have grounds and you have sought legal advice and all other avenues have failed to resolve the matter. Litigation is a last resort – As Geoffrey Rush recently said most eloquently at the end of his defamation action he won recently, “There are no winners when you go to court.” Robert Toth is a Partner of Marsh & Maher Richmond Bennison Lawyers, with over 35 years’ experience in franchise law and general commercial advice. He is an Accredited Business Law Specialist and Member of the FCA & IFLA with expertise in franchising, licensing and distribution and franchise dispute resolution (acting for both international franchisors and franchisees). Contact Robert and the Franchise team at Marsh & Maher Richmond Bennison: 03 9604 9400 robert@mmrb.com.au www.mmrb.com.au
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
Business Franchise Australia and New Zealand 19
e x pert a dv i c e
Three Ways to
Transform Your Disconnected Team To One that Collaborates and Thrives
Highly disconnected and disengaged employees don’t feel part of anything, have a low commitment and are usually only at work to do the bare minimum and collect their pay. Unfortunately, these individuals are common in franchise teams everywhere today. When people lack emotional connection to their work, they usually take more sick days, and there are performance and behavioural issues, with extreme cases leading to purposely causing harm and disruption to the entire business.
“As a leader, you are responsible for moving your people from feeling disconnected to connected – something that is not always easy. It takes focus, energy and emotional courage to do this.” Michelle Sales | Speaker, Trainer, Coach and Author | Michelle Sales
On the flipside, engaged employees feel a real sense of connection to their work, their leader and their peers. They want to work with others, which means collaboration happens and performance thrives. A study by Gallup revealed that companies with engaged workforces have higher earnings per share and even recovered at a faster rate from the recession. Also, people who feel connected to their leaders are more likely to
remain with their organisations and act in ways that support the overall vision. Companies that are voted ‘best place to work’ or an ‘employer of choice’ value and foster connection among their teams, colleagues and employees. As Sylvia Vorhauser-Smith, senior vice president of research at PageUp People, puts it, these places are ‘meeting the more altruistic and basic human needs of feeling connected and being an important part in something bigger’. As a leader, you are responsible for moving your people from feeling disconnected to connected – something that is not always easy. It takes focus, energy and emotional courage to do this. Here are three ways to help.
Be curious Dr Diane Hamilton talks about the connection between curiosity and human performance in her book, Cracking the Curiosity Code. She lists the four factors that impact curiosity: Fear, Assumptions, Technology and Environment (FATE). This fear plays out for leaders regularly. There is a need to have all the answers, to seem as smart and capable, and not to be vulnerable – all of these impact our curiosity. Being curious and interested in your people is critical to building strong connections. As a leader, how else do you understand what drives and motivates your people if you are not
20 Business Franchise Australia and New Zealand
curious? If you don’t invest the time in really getting to know them? Being curious about your people as individuals will allow you to coach and motivate them using strategies and tools that are right for them rather than using a one-size-fits-all approach. Great leaders are much more interested in listening to others than listening to themselves; to learning, to leveraging the talent and different strengths in the team. You can’t do this if you aren’t curious about what your people bring.
Show humility The governor of the Bank of England, Mark Carney, claimed in 2018 that humility is one of four essential leadership traits in this era of disruption. Leaders who exhibit humility listen to their people and invite them to share their ideas and to challenge the status quo to improve and grow. Part of the process of genuinely connecting with your people and being able to be humble is letting go of your excessive ego, insecurities and concerns about status. Humility in leadership allows you to have an accurate perception of your strengths
“Humility in leadership allows you to have an accurate perception of your strengths and weaknesses and to understand the needs of others. It allows you to recognise the contribution of others, which in turn means people feel valued.” and weaknesses and to understand the needs of others. It allows you to recognise the contribution of others, which in turn means people feel valued.
Practice compassion Christina Boedker of the Australian School of Business researched the link between leadership and organisational performance, collecting data from more than 5600 people in 77 organisations. She concluded that out of all the various elements in a business, the ability of a leader to be compassionate, ‘to understand people’s motivators, hopes and difficulties and to create the right support mechanism to allow people to be as good as they can be’, had the greatest correlation with profitability and productivity. Employees feel greater trust in compassionate leaders. Harvard Business School’s Amy Cuddy and her research partner have shown that leaders who project warmth before establishing their competence are more
effective than those who lead with toughness and skill. Trust that is created with warmth, kindness and compassion. When trust is built; strong connections are created. This is when you move beyond just engagement and start to achieve real commitment and results from your people, both internal and external to the business. Michelle Sales is a highly sought-after speaker, trainer, coach and author who helps senior leaders and their teams to build confidence and maximise their leadership and performance by consciously connecting with others. She is the author of the new whitepaper The Connection Deficit: Why leaders must bring both head and heart to work to build trust, lift engagement and accelerate organisational results. For more information on Michelle’s work visit www.michellesales.com.au
Business Franchise Australia and New Zealand 21
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Turning Customers into Raving Fans There’s nothing much that beats going to the footy at the packed Melbourne Cricket Ground and yelling yourself hoarse as you celebrate each spectacular mark and miracle goal. Footy fans everywhere are on their feet, waving their banners and fist-pumping.
“To turn customers into raving fans, become obsessively customer-centric in all aspects of your franchise business. Then, stand clear of the doors!” David Sharrock | Managing Principal | Sharrock Pitman Legal
Which raises the very issue when running a franchise business: how do I get customers to become raving fans? The answer is this: your business will only be very successful and thrive when there are more and more delighted customers beating down your doors. That will only happen if you and your team become obsessively customercentric.
What does obsessive customercentricity involve? Just to ‘keep the customer satisfied’ is so 1980s and does not cut it in today’s highly competitive market place, industry by industry. Everywhere, customers hold the trump card. They are incredibly fussy and demanding, and they have every right to be that way. They are paying good dollars for a high-quality product and exceptional service. Nothing less will do. And, if they get less, then they will take their custom elsewhere because your very good competitors are lurking everywhere, ready to deliver a better product and service.
connect with your business, be it visiting your website, on the phone, purchasing online, walking in the front door, at the counter, transacting a sale, and the like. The aim is to improve the customer experience at each such touchpoint until customers become surprised and delighted by actually experiencing something quite exceptional in each interaction with your business.
The starting point is to focus on each customer touchpoint in your business. That means assessing (for better or for worse) the experience of your customers whenever they
Secondly, as a franchise business, you will already have the competitive advantage of brand recognition over your business competitors. However, more is needed if you
22 Business Franchise Australia and New Zealand
are to truly stand out in the eyes of customers as the ‘go-to’ business in your industry or sector. Your business needs to be different to make a difference. You need to discover and create entirely new products or services or improve current products or services, above and beyond those of your competitors. Choose not to be same-old but to be decidedly better and then you will stand-out in the marketplace. Note: as a franchisee, remember your franchisor must approve any new business initiatives.
Riders on becoming obsessively customer-centric: There are three important riders, namely: Realise that all power in business has now shifted to customers. They do not care all that much about your business and its golden future. They look for the value and benefit that your business will deliver to them and for the opportunities they can get from your business. You cannot expect loyalty these days. It is best to presume that any potential customer of yours might turn around and walk into another business quicker than you can blink. Your whole attitude needs to flip around, and you need to think, act and talk from a different mindset, doing everything possible to be the supplier of choice, customer by customer. No matter what your franchise business sells, you are in the people business. In the eighties, we all sold products and services. These days, you need to value people and, to some degree or another, seek to build enjoyable, life-giving relationships with customers by taking a genuine interest in them and their lives, as opportunity might arise. A focus on the relationship with others will then compel the giving of the very best of yourself to them and serving them wholeheartedly. All of this cannot be contrived or insincere. It must happen authentically and come from heart and soul.
The degree to which a business is customercentric depends on the extent to which it enjoys the trust and confidence of its customers. In this day and age, where mistrust and cynicism abound (most often for a good reason), the imbuing of trust and confidence is an absolute imperative. Trust and confidence derived from the relationship, undergirded by consistently keeping promises and assurances, and always being entirely reliable and dependable in doing what you say, when you say we will do it.
• Seek ideas, guidance and feedback from customers and team members about improving customer experience.
Tips for becoming obsessively customer-centric:
• Give and serve, not get, get and get.
• Picture exactly what your customers will get in the future that they are not getting today, once your business is obsessively customercentric. • Obsessive customer-centricity starts with you, the business leader. • Coach and inspire your team to become obsessively customer-centric. • Make customer-centricity integral to your workplace culture. • Create a customer care charter, listing the standards required for delivering exceptional product and service, followed by policies, processes and protocols about what must happen at each customer touchpoint.
• Provide a satisfaction guarantee (of some sort, not necessarily involving a full refund) in respect to product and service. • Create a list of free customer benefits. • Price discounting is a very short term and inadequate solution of last resort. • Never, ever ‘over promise and under deliver’.
• Have fun with customers and enjoy your relationship with them! To turn customers into raving fans, become obsessively customer-centric in all aspects of your franchise business. Then, stand clear of the doors! David Sharrock is the Managing Principal of Sharrock Pitman Legal, a Melbourne based, boutique commercial law practice. He is an accredited Business Law Specialist, an accredited Mediator, public speaker, and author of a new business work book titled Fighting for Enterprise Success: through the eye of the tiger. For further details go to: www.fightingforenterprisesuccess.com
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24 Business Franchise Australia and New Zealand
We can assist and support you to develop and implement sustainable growth and expansion in your business. We work with clients to develop innovative business models that address the key issues of how to fund franchisees into a franchise in the current tight lending market. We have a network of consultants to assist local and overseas companies with Corporate structure advice, market feasibility, demographic research, accountancy and taxation advice. We can help with Franchise Code Compliance and assist overseas companies to establish business operations in Australia.
ROBERT TOTH Partner & Accredited Business Law Specialist (03) 9604 9400 SPCFSU!NNSC DPN BV STACEY RYAN
..3# can work with you, your corporate management and in-house legal team to provide strategic solutions, advice and support.
mmrb.com.au
We have developed new simplified Franchise and Branchise models that address the finance and funding issues facing franchisors and franchisees and ensure a more financially viable and happier relationship!
Member of International Franchise Lawyers Association (IFLA), US Commercial Service and Franchise Council of Australia (FCA).
It is a whole new world in business and delivering the same old tired Franchise models that have been the cause of much dispute is what we are working on with our clients!
Australia & new zealand
Franchisor B u s i n e s s
VOL 07 ISSUE 03, 2019
what will franchise finance look like in 2020? curating and building
A successful franchise model why lawyers are the last Business Franchise Australia and New Zealand 25
NEWSitems MOTTO MOTTO JAPANESE KITCHEN APPOINTS HUXTABURGER’S MATT FICKLING AS HEAD OF FRANCHISING recognised franchisor. Fickling transformed Huxtaburger’s business, led their franchise strategy, built an executive team and pioneered network growth across Australia. Just last year he penned a 10-store franchise expansion deal for the burger business with NSW investment group, Yesdac. Motto Motto Founder and Managing Director William Liu said, “We are very pleased to have attracted someone of Matt’s experience and capability. He brings significant franchise and strategy experience coupled with his ability to contribute to our brand & marketing, supply chain & operations teams because of his multi-disciplined background as a successful chief executive. As an entrepreneurial and dynamic thinker Matt will be a powerful addition to an already high performing executive team.” Fickling said, “The opportunity to bring my executive experience and join an innovative and talented team at Motto Motto was too good to refuse. Motto Former Huxtaburger CEO Matt Fickling has been appointed Head of Franchising at Brisbane based premium casual restaurant brand Motto Motto Japanese Kitchen as they announce their move to franchise the brand.
Motto is joining a franchise market where we can solve some of the issues
Fickling joins Motto Motto after spending three and a half years with the
company operated brand, transforming the company’s supply chain and
Melbourne based fast food chain. He joined Huxtaburger back in 2015 and
supporting brand and marketing initiatives.
as CEO grew it from a small founder led business to become a nationally
www.mottomotto.com.au
the sector is faced with through a compelling offer built on transparency, differentiation & unparalleled support.” Fickling is charged with the responsibility for the franchise strategy for the
Yia Sou! Say Hello to a new franchise in Queensland! The Yiros Shop, a fun and popular Greek restaurant and takeaway, has exciting plans to develop its franchise network in locations across Queensland, Australia. The Yiros Shop is home to Brisbane’s most iconic and authentic Greek eats. Founded in January 2015 came the first location in the notable James Street, Fortitude Valley, Queensland. The family-owned business set out to bring traditional Greek Yiros and other tasty Greek delights to its neighbouring areas. To date, there are five successful restaurants established around Brisbane and Nicholas decided that there has never been a better time to start franchising. The colourful brand also has two new stores in Albion and Aspley opening early next year! Nicholas Mitrossilis is really keen to get the ball rolling, he said, “The Yiros Shop is a 50/50 restaurant and takeaway and we have five existing stores all of which are doing really well. It’s fantastic to see how popular our fresh Greek food is among locals and visitors and with this, we have built a
James Young, Head of Franchise Sales and Development at DC Strategy believes the brand is in a perfect position to expand. He said “The Yiros Shop stores are going from strength to strength and it is the perfect time to start developing a successful franchise network. We’ll also look to grow
huge following of loyal customers who keep coming back for more. I think
the franchise business along the eastern seaboard once we have the right
customers love our fun, chilled out atmosphere, not to mention the delicious
partners in place.”
and authentic mouth-watering Greek menu!”
www.theyirosshop.com.au
26 Business Franchisor
Thermawood’s new partnership set for double success!
The Coffee Club breaks into 10th international market The Coffee Club has added a new store and new market to its growing portfolio, with the opening of its Vietnam establishment earlier this month. The Coffee Club in Vietnam will cater to locals and travellers, offering a relaxed atmosphere where workers, students, tourists and families can all enjoy time away from the hustle and bustle of Ho Chi Minh. Nick Bryden, Minor DKL Food Group CEO said the restaurant-style format provides an all-day dining experience with a menu balancing famous The Coffee Club favourites and local Asian dishes. “The Coffee Club offers a distinctive restaurant experience with great selections of food and beverage menus, excellent coffee and a welcoming relaxed atmosphere enriching the contemporary lifestyles of Vietnamese consumers,” said Nick. “Our menu in Vietnam is unique to this country. Customers will enjoy a mix of our international signature drinks and dishes with locally inspired favourites. Ms Julianne Cowley of the Australian Consulate General who officiated the opening ceremony said that The Coffee Club is already a familiar brand with many Vietnamese people who have travelled to Australia and is set to become a household name as more people experience the hospitality.
Thermawood, the leader in the double glazing and retro-fit window industry has partnered with franchise experts DC Strategy to grow their network in Australia. Known for their double glazing installations with timber frames, Thermawood specialises in retrofitting existing timber joinery. All of their products are unique and exclusive to the Thermawood brand - no other company has the same patented designs or products. This forms part of the key benefits of franchising with the global brand, which gives franchisees the opportunity to be part of the exclusive brand. Graeme Clarke, Franchisor and Director of Thermawood said, “I have full confidence in the systems and processes we have developed at Thermawood for the both the Australian and New Zealand markets. “We know what works when it comes to attracting customers and we have tailored marketing campaigns per area and territory. Now with over 50 franchise locations operating in Australia and New Zealand, Thermawood is ready to hit the ground running and has partnered with DC Strategy to find new franchisees for the existing territories (Victoria, New South Wales and South Australia). In addition, master opportunities are available in new regions including Queensland, Western Australia and Tasmania. Their new ‘double’ expansion strategy planned for key parts of Australia will solidify their franchise network and give more people the opportunity to join their franchise team and be part of the double success.
“The launch of The Coffee Club is a practical example of how we want to link our nations. The Coffee Club will not only create local jobs; but builds on so many other links between our countries,” she said.
Jacki Cook, Thermawood master franchisee for Victoria said, “When we were offered the Mmaster franchisee for Victoria we jumped at the chance as we knew what a great opportunity it was to get into a unique business like Thermawood and the prospect of building a team of Franchisees really appealed to us and we have had no regrets, it has been a great experience so far and we are building a very successful team.”
www.coffeeclub.com.au
www.thermawood.com.au
Business Franchisor 27
expert advice: brian keen
When franchising a business, you can’t work out the myriad of different items to be carefully described in any meaningful franchise agreement, unless you know how a franchise group is going to work. Even with the best will in the world, lawyers are not in the best position to understand the people side of a franchise group and the businessspecific technical issues which will determine how the franchise structure will work. Yes, good franchise lawyers will have a precedent they use to structure a franchise agreement. And good franchise lawyers will have the experience to know most of the questions to ask to fill in much of the detail. But a good franchise lawyer also knows every franchise group is different and, to give their clients the protection they will need when things go wrong, they will be looking for instruction on how the group is going to function. Building a franchise structure from a single business or concept is not quite as simple as it first appears. A franchise group is, at heart, a people business. You are creating at least two new businesses from the one you now own – one to service your clients who will be run by your franchisees and one to look after the franchise group and your
28 Business Franchisor
franchisee business partners, your franchisor business. The key to creating a good franchise group is to work out your people-based franchise structure first and then, once you understand the nuances, you give the information to the lawyers to put into the best legal structure for the protection of both your franchise partners and you, as a franchisor. As it’s rubbish in, rubbish out, don’t treat this lightly because any oversight or error in your legal requirements could well lead to expensive mistakes, litigation, heavy fines or even business failure. And believe me, it happens. That is why a franchisee-savvy lawyer will want to come last. There are seven critical areas you must address first so your lawyer can give you a legal agreement which is relevant to your group:
1
Your franchise structure
What exactly are your franchise partners going to do? Deliver therapeutic massage to your elderly clients? Sell houses and manage the real estate agency that goes along with that task? Do your clients’ bookkeeping? What are the other tasks which go along with each of those broad areas? What marketing will be needed? Where will the leads come in too? How is the money coming into the group going to be managed? The list is long. More importantly, so is the list of people characteristics and skills needed to
get the jobs done. Inevitably, most franchise groups will find the people most suited to getting the fundamental job done (massage, sales, bookkeeping) will not have the ability to manage all aspects of their business. None of us is good at everything. So, a reference to multiple experts is essential if you’re to start franchising off on the right foot. Marketing, sourcing leads and managing basic business administration are often areas in which most franchisees need help. If you want your group to work – you, as a franchisor, are inevitably going to have to take on these tasks. It takes a little working out, and your lawyer is probably not the best person to help with this fundamental first step.
2
The money
Your lawyer is not an accountant. So many new franchisors expect their lawyer to tell them what their initial franchise fee and ongoing levies should be. These are not fair questions at all! Sure, you can dig up some averages for different industry sectors, but they mean nothing at all to your business. Because every business has different ways of doing things, different cost structures, different advertising budgets, add to that the cost of the list of tasks you have discovered you will need to take on to help your franchisees become successful in business.
It’s not just your initial franchise fee and the ongoing royalties. You need to determine accurate costs for providing initial training, for the marketing fund, service fee, transfer and renewal fees.
Brian Keen has been involved in the franchise industry for more than 30 years and today is the Founder of Franchise Simply. His on-the-ground business experience as a multi-unit franchisee, franchisor and consultant helping many of the big names create their own franchise systems and growth over the years has been fed into Franchise Simply, helping today’s SMEs grow their business by franchising.
The list is also long, and without help from a franchise savvy accountant and franchise consultant with business experience, you’ll likely miss a lot of critical information.
3
Territories and strategic network planning
Territories are not as simple as postcodes, or population or a handful of other key denominators. It’s a science, and it’s a highly sophisticated exercise with very skilful analysis of specific data information around your franchise outlets. You might not need to specify a physical territory at all, but rules around whichever way the work is distributed will go into the agreement – and then don’t imagine you can tinker with them afterwards because you’ll find it very difficult to do so. If you do have physical territories, the impact of initial network planning can be worth millions to you. Territories which are too small, mean franchisees will likely not grow a sustainable business. If they’re too big, you’ll likely not be able to meet customer demand so the business will leave a significant amount of income, profit and value on the table — a wasted opportunity. A good lawyer respects your researching this area before you brief them.
4
Services and goods
hamstring you from having this flexibility. A very costly omission
5
Promotion and lead generation
Generating leads is critical to any business, and your current successful method may get turned
Then there are all the smaller but less important items to consider: Insurances What types and amount of cover are to be specified? Where is it to be obtained?
on its head when you appoint franchisees.
Managing the business
Just think about who you will be recruiting as
You probably do not want an untrained or unqualified person running your franchisee’s business in their absence, or indeed permanently if they decide they want to step back and play investor. How is this to be addressed in the agreement?
franchisees and what’s reasonable to expect their skillsets to be. As a substantial single business, you may have a sales team made up of people who love what they do. Or your phone may suffice for taking sales calls right now. But you know your business
Confidentiality
backwards and can handle most questions on
The last thing you need is for someone to copy your business and set up in competition. There are many ways this can happen, so closely protecting your Intellectual Property (IP) is a must. Trademarks and a carefully considered corporate structure need the attention of accountants and lawyers skilled in the franchise space and something done sooner than later in your franchise program.
the fly. If you are expecting your franchisees to do their selling, you might be setting them up for failure. Sales are probably the most intimidating, most stressful and scary thing for most people, and your bookkeeping or massage therapist franchisees will find this role impossible to do over the long haul. In this digital age, your website is probably the best lead magnet you have so you
Defining the service you offer may be simple enough, but what about the other needs of your client profile. Jim started with weeding, then lawnmowing, and only years later did he move into the first of his now 40 or so mobile service businesses. He may have struggled to do this if he’d not wisely made adequate provision at the outset.
will be receiving most of the first calls.
Many franchisors have their product or are dependent on an outside supplier. Working out the balance can be tricky. Many begin with an outside supplier, then move to white-labelling a product before, in time, manufacturing their own. They often end up making more profit from their product than from the rest of the franchise operation, resulting in a large increase in the value of their business asset.
resolved first.
You need someone to walk you through this discovery process so you can make provision for this kind of evolution in your business. Miss this point and your franchise agreement could
7
Sundries
6
Premises There are many things to consider if your
franchisees need to operate out of a building, many of them way outside the gambit of your lawyer. There are significant practical and commercial considerations to be explored and If yours is a brick and mortar outlet, do you buy or own the premises, do you lease it, or does your franchisee? Do you fit it out or does the franchisee? Who is responsible for signage? If it’s a mobile or work from home business model, then vehicles come in to play. Do you provide the vehicle, is it a lease package, what models do they have to be, are they to be branded? Are there specialist tools and fit-out? Who does this work, and who pays for it? All question to be answered before you consider the legal process.
Conclusion There are many things to consider, and this article touches the tip of the iceberg. It’s unrealistic to place the burden of providing this advice on your franchise lawyer. Which is why it takes a careful and conscientious new franchisor three to 12 months to work through a properly detailed franchisor program with a specialist who can help you step your way around these many often overlapping and confusing obstacles. Once you have an idea of how your group is going to run, you do need the services of a good, specialised, franchise savvy lawyer who can help to frame up the best franchise agreement to suit your business today and give you the flexibility to adapt, long into the future. The best will want you to have ticked the other boxes first. For more information Brian can be contacted at Franchise Simply on 1300 960 136 or go to www.franchisesimply.com.au
Business Franchisor 29
profile: wollermann franchise developments
The Power of Empathy with Intelligence Good business practice defines management as the art of ‘getting things done through other people’. and packages its proven operating systems, together with its brand profile, into a business system. This they make available to other people (who buy their franchise) who then simply follow the procedures and systems to maximise their chances of success.
Colin Crawford
This is absolutely true in well-run, complex organisations. But it is equally true in the most simple of business relationships – that of a franchisor and its franchisees. The essence of franchise management is that the franchisor (or parent organisation) refines
It works in theory, and it works in practice. But not everyone ‘gets’ it. Some franchisors think that they are in a relationship with their franchisees whereby they can dictate and manipulate the lives and the well-being of their contracted business partners (their franchisees) to their own self-centred ends. The result is almost always a disaster – and usually ends in penalties from the regulator, possible litigation, followed by brand damage and franchisee dissatisfaction. A smart, intelligent franchisor, on the other hand, recognises the synergistic power of the win-win in good franchise management and sets out to fully support their franchisees. It’s an attitude thing! A desire on the part of a franchisor to genuinely help others build something for themselves. Smart franchisors understand that there is no greater motivation in a franchisee than seeing real, tangible rewards by working hard to build a business and a life, that
30 Business Franchise Australia and New Zealand
they can control and be proud of. Disempowering a franchisee by a franchisor will create a compounding negative synergy. However, a practical helping hand, together with a sincere desire to work collaboratively with a franchisee, will generate the multiplier effect that franchising is renowned for. Think about it the next time you hear or read negative media stories about how badly some franchisors have treated their franchisees. They do themselves no favours. Poor franchisors are the opposite of good managers and, at the end of the day, they are only harming their business, themselves and their franchisees. Franchising has a 50-plus year history of building personal and business prosperity by recognising the duality of company systems being utilised by local-area owner-operators. This model is continuing to grow and evolve. It still can, and will, create prosperity for those who understand its power. Implementing it properly benefits all stakeholders – franchisor, franchisees, employees, customers and the whole broader society. For more information go to: www.franchisedevelopments.com.au
WFD What are the key principles in successful franchising? Better Franchisee recruitment, then empowering them with better strategies, better systems, better buying and better marketing.
Putting it all together is our responsibility! With 25 years in the franchise industry we know how to grow a business locally, nationally and internationally, while building on the key factors that make your business successful.
Looking to grow your business?. Contact Colin Crawford, National Franchise Manager. WFD Wollermann Franchise Developments on FREE CALL 1300 249 276 or visit our website.
www.franchisedevelopments.com.au Melbourne | Sydney | Gold Coast | Adelaide | Hobart | Perth Business Franchise Australia and New Zealand 31
expert advice: James Scurr
What Will Franchise Finance Look Like in 2020? After Australia’s lending landscape undertook significant changes throughout 2018/19, many franchisees and franchisors are thinking about what their finance options will look like in 2020. The aftermath of the banking royal commission left many business owners struggling to access funds, as the banks tightened their lending conditions in an effort to be more risk-averse. However, during this period the need for finance did not cease, and many within the industry began looking elsewhere for funds. As a result,
James Scurr has extensive franchising and small business experience, spending almost a decade as a successful multi-unit franchisee for companies including Boost Juice, Dreamy Donuts and other independently owned businesses. He is an internationally recognised Certified Franchise Executive (CFE) and a FRANdata Registered Franchise Lending Specialist. James founded Cashflow It in 2014 which now operates as Franchise Finance Australia.
we began to see heavy adoption of alternative providers in tandem with a shift in what consumers value. After a culture of dishonesty and misleading terms was exposed among traditional lenders, consumers moved their priorities to lenders which displayed transparency and honesty.
The rise of relationship-based lending In the past consumers displayed an undying brand loyalty to their banks. Once they opened their first bank account, people often didn’t look elsewhere when it came to their home loan, personal loans and even business loans. While relationshipbased lending is the philosophy that drove this loyalty, as Australia’s big banks grew in scale, the concept was somewhat left behind. In 2018 Martin North, Director of Digital Finance Analytics, said ‘Irresponsible lending is endemic in Australia’. This was followed by an ASIC crackdown on non-compliant lenders, who were not meeting responsible lending requirements. The perception that financiers were trying to maximise their revenue, even if that meant making reckless lending decisions, was widespread among the public. After 12 months of tightened lending conditions and uncertainty surrounding the credibility of the country’s most prominent financiers, consumers are analysing the relationship they have with their finance providers more than ever. However, the
32 Business Franchisor
As well as alternative lenders, other innovative solutions such as crowdsourcing, peer to peer lending and microloans have become more mainstream.”
After a culture of dishonesty and misleading terms was exposed among traditional lenders, consumers moved their priorities to lenders which displayed transparency and honesty.
one thing that has changed is people’s approach to brand loyalty. Consumers have access to more information than ever before, and because of this, they realise that a company which is a good fit for their personal banking, might not be right for their business affairs. Franchisees do not necessarily want to lump their personal finances with their business finance. As a result, many are looking to build independent relationships with lenders who fit the needs of their business.
Alternative finance becomes the norm In 2017 Equifax reported a 68% growth in commercial demand for alternative lenders, and the highest adoption rates were among SMEs who accounted for 98% of all alternative finance enquiries. This trend has continued, with the
popularity of innovative and out of the box finance sources rising. Even though alternative lenders have been around for quite some time, there has been a steep increase in adoption over the past five years. As borrowers begin to see such providers as a realistic options, the feedback to their offerings has been overwhelmingly positive. In 2018 Medici reported an approval rating of 55-60 per cent for alternative providers, compared to just 23-27 per cent for banks. Finance is not a one size fits all solution, and while banks excel in meeting the needs of big business, this data suggests that Australia’s vast small to medium enterprise (SME) network is finding the support they need from non-traditional options. As well as alternative lenders, other innovative solutions such as crowdsourcing, peer to peer
lending and microloans have become more mainstream. Recent data found that the playing field between banks and alternative lenders has levelled, citing an 18 per cent increase in the number of SMEs choosing alternative providers as their first choice. Ultimately it appears that small business owners, franchisees included, are leading a new direction for Australia’s lending landscape. We are experiencing a shift away from a centralised model, with the big four banks at its core, to a more diversified selection of lenders.
The new challenge A recent SME Growth Index shows that more of Australia’s SMEs are positioned for growth than the country has seen since 2016, with a 51 per cent forecasting revenue growth over the next six
Business Franchisor 33
months. However, this same report suggests that these strong growth targets cannot be achieved due to barriers to finance. Australia’s volatile property market is making it difficult for many small business owners to access the funds they need to meet their aspirations. Despite the fact that almost 60 per cent of small business owners are seeking access to funds, the timing of tumultuous market conditions has meant that many are feeling uneasy about their ability to do so. A decline in property prices means that applicants have less equity to source when trying to secure finance, driving demand for unsecured finance options. The franchise industry now faces a new challenge, sourcing funding options to support the growth of its networks that also meet the unique needs of their franchise partners. Alternative finance options are set to play a significant role in overcoming this challenge. While it’s acknowledged that such providers are unable to match the low-interest rates of the bank, in the current lending landscape, this is not applicants main concern. Instead, an outstanding 91 per cent of those surveyed in the SME Growth Index stated they would be willing to compromise on a rate to avoid risking their home as security. A further, 61 per cent said they would ‘definitely’ make the trade-off, which is double the number of recent years. This research shows that the option of property-
Borrowers are placing a high value on characteristics such as flexibility, transparency and unique funding solutions. Traditional banks continue to play a vital role in Australia’s lending economy, but alternative finance providers are solidifying their place in the market. based security is deeply unfavourable for small business owners, meaning we will likely see a decline in the number of SMEs who are choosing the property backed funding favoured by banks. Already asset-based security options offered by non-traditional lenders are beginning to bridge this gap. These statistics reflect how the industry is adapting under the pressure of changing market conditions. Nevertheless, as the needs and wants of consumers evolve, new and innovative offerings continue to become available. Australia’s franchise networks are determined to capitalise on the strong growth projections for the sector and will continue to explore the wealth of new funding options available to them. This is just a snapshot of what we can expect in the world of franchise finance throughout 2020. Borrowers are placing a high value on characteristics such as flexibility, transparency and unique funding solutions. Traditional banks continue to play a vital role in Australia’s lending economy, but alternative finance providers are
solidifying their place in the market. Overall, Australia’s small business network is geared for significant growth, and if current challenges in accessing funds can be overcome, this growth will be realised. Seeing a gap in the market, James founded Cashflow It Group in February 2014. Spending almost a decade as a successful multi-unit franchisee, it is his experience as a franchisee that ensures Cashflow It Group meets its customers needs better than any other equipment finance company in Australia. Franchise Finance Australia is a specialist funder to the franchise sector, with unrivalled knowledge of franchisees funding requirements. Founded by directors with a background in franchising, we have remained committed to offering flexible funding solutions that allow franchisees to grow their business. www.franchisefinanceaustralia.com.au
34 Business Franchise Australia and New Zealand
2019
law fit for business At Macpherson Kelley we’re trusted business advisors as much as lawyers, with expertise in all areas of franchising. We help manage and grow your business locally, nationally and internationally with strategic and insightful advice. We work on the full spectrum of franchising matters: · · · · · · ·
establishing franchise systems and how they work drafting and reviewing agreements acting on mergers and acquisitions brand and intellectual property management and enforcement dispute resolution and litigation all commercial issues
Our clients know we’re with them every step of the way.
1800 888 966 info@mk.com.au mk.com.au
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Business Franchise Australia and New Zealand 35 2019-10 Business Franchise Australia Ad.indd 1
22/10/19 12:33 pm
expert advice: John O’Brien
Curating and Building
a Successful Franchise Model These days, if you’re not changing, you’re going backwards. It used to be that the first step in creating a successful franchise model was identifying and proving a novel idea with a vivid brand suited to smallbusiness replication.
John O’Brien founded Poolwerx – his 5th successful franchised network, 27 years ago and has grown it into a global, multi-award-winning system. John is an inductee into the FCA Hall of Fame, past Chair of the World, Asia Pacific and Australian Franchise Councils and is a founding member of the Australian Federal Government’s (ACCC) franchise advisory group.
So it took me four attempts to get to Poolwerx,
However, that is no longer viable in today’s market. Instead, you need a system which is capable of rapid evolution. So if your system is showing signs of stalling, if you’re not getting the growth you hoped for, it might be time to look harder at what’s going on around you, your relevance in the mix, and at what market or regulatory changes you need to prepare for.
and while each one was successfully passed
I developed four franchise systems before Poolwerx, and the more I learned, the more I understood that the greatest strength of franchising is bringing organisation to chaotic and fragmented industries, which is why I chose the pool and spa aftermarket as my own end game. During an extensive international tour, I saw that throughout the world, this industry was primarily populated by stand-alone owner-operators with little idea about collective buying, marketing, retail systems, training, emerging technology and brand. These were family businesses, but children were disinterested in taking over the reins from their parents despite this being a multi-billion dollar sector with a captive audience. Good times or hard times, once you have a pool, you can’t ignore it.
your action. You might have to consider a reboot,
36 Business Franchisor
If you’re not growing, ask yourself if there’s a way to blow the dust off your system and bring better organisation to the industry you’re in.”
on, each time it was ‘start again’. These days I don’t think that has to be. If you’re not growing, ask yourself if there’s a way to blow the dust off your system and bring better organisation to the industry you’re in. As Franchisor, your network is depending on you and your team to out-think, outpace and outflank everyone wanting a piece of but that doesn’t have to be seen as a negative. The first Poolwerx model was vans servicing domestic pools. These days, individual franchise partners control multiple store empires supported by fleets of mobile service units for domestic, institutional and commercial markets. The model has now grown to support operations in Australia, New Zealand, the USA and soon in Europe. Based on my own experience, these are the rules in which I follow to manage Poolwerx:
1
You must create a culture of respect
Whatever your altruism, franchise systems tend to go through a phase of ‘them-and-us’ in terms
of relationships between the support team and franchisees - and for that matter, suppliers. Some never get past it. Some do, and then back peddle back into it. In Poolwerx, there is zero-tolerance of disrespect for franchise partners, suppliers and our support team.
2
Never stint on training
Poolwerx has sophisticated training facilities in Brisbane and Dallas, Texas, providing industry and government-accredited modules for franchise partners and their staff. These are now recognised as best in the world for our sector. The net result has increased the profitability of individual businesses, improved staff retention and a greater sense of future. In Australia, it is
the largest school in the Southern Hemisphere. We were recently awarded a five-star rating under the independent FRANdata system. I believe this is reflected by the support and training Poolwerx offers employees, which is essential for any franchisee. We encourage anyone in our network to embrace training and complete their CFE Industry Certification - the highest qualification in the franchise industry. As of this year, Poolwerx currently has the most (seven) accredited CFE graduates in Australia.
3
Your most important KPI must be the profitability of the individual businesses in your network
If your franchisees are making a living comparable with their effort and risk and can see a viable end game, then generally your system remains stable. It’s when people feel backed into a corner financially, or corners are cut, then this is when issues will arise. Also, while it has taken a lot of money and forbearance to get there, we spend almost nothing on litigation. So as you develop your system, you need to know in real-time where each franchisee’s profitability is sitting against your benchmarks and take remedial action in
If your franchisees are making a living comparable with their effort and risk and can see a viable end game, then generally your system remains stable. It’s when people feel backed into a corner financially, or corners are cut, then this is when issues will arise. cases where fractures begin to show. Most often a process of ‘intensive care’ works.
4
Open as many lines of communication as you can
Create a sense of community within your network. Lead by example, providing regular internal communications and ensure two-way feedback through business meetings. Measure who is opening what network communication and how often they do so. If it’s flagging, find a new and better way.
5
Stay as true as you can be to the person you were when you embarked on your enterprise
Remain at the helm for as long as you can, and invest in culture as much as the balance sheet.
Last month Poolwerx was one of the first franchisee systems in Australia to be awarded a 5-star FRANdata rating for high performance. Here he talks about how to curate and build a successful franchise model and why it’s essential never to give up. Poolwerx is the world’s largest pool service brand in the industry. Founded by Australian CEO and entrepreneur John O’Brien in 1992, Poolwerx has grown to be the only global pool brand with over 575 service vehicles and 160-plus stores in Australia, New Zealand and the United States. With significant investment in a professional development strategy, recurring revenue streams and a technology-driven and scalable model, Poolwerx swims ahead of its competitors. Poolwerx is also a champion of promoting the importance of teaching life-saving water skills through its annual community initiatives, Learn2Swim Week and April Pools Day.
Business Franchisor 37
When Australia dreams, we all win! Why join us at the Lott? The Lott* offers Australia’s official lottery games which Australians trust and love! Each year Australia’s Official Lotteries make dreams come true. With the help of our retailers, Australia’s Official government-regulated Lotteries play an important role in helping to support Australian communities with over $1.1 billion^ available for hospitals, schools and sporting groups. ^ State Lottery Taxes FY18 Australia-Wide (ex.WA). We are Australia’s largest franchise network with almost 4,000 franchisees, operating across all of Australia, except for WA.
*The Lott represents Australia’s Official Lotteries which are sold by licensed entities: Tattersall’s Sweeps Pty Ltd, Tatts NT Lotteries Pty Ltd, New South Wales Lotteries Corporation Pty Ltd, Golden Casket Lotteries Corporation Ltd, and Tatts Lotteries SA Pty Ltd.
CRTV-14554-Retail Sales Leads Pack - Bus Franchise Ad.indd 1
17/12/18 8:59 am
:59 am
health, fitness & beauty
VOL 14 ISSUE 01 nov/dec 2019
home caring
A perfect partnership Health, Fitness and Beauty
hot sectors in franchising
the ato
Supporting Your Wellbeing Business Franchise Australia and New Zealand 39
FE ATUR E : H e a lt h, Fi t n ess & B e au t y Fr a nch ises
c ov er sto ry: H ome Caring
A perfect partnership Home Caring has been providing top-quality home care services in Australia since 2015. Committed to helping those in need by offering them access to a range of unique services built around their needs, Home Caring cares for its clients with passion, respect, empathy and accountability. Jon Kontopos, the founder of the company, is passionate about improving Australia’s home care industry and brings over seven years of experience in working with seniors in the care industry. Michaela Brown – the Home Caring Group Operations Manager - oversees the entire business and brings a wealth of experience with her. With well over 10 years working in the care industry, there’s nothing Michaela hasn’t encountered. Claire Zhang has always been interested in being a business owner and is a passionate Home Caring franchisee partner. With over 12 years of nursing experience, Claire has gone from nurse to business-woman. Home Caring understands that everyone is different. The dedicated team ensures that customers receive trustworthy, compassionate and reliable services which are
aligned with their needs. The business values feedback and actively monitors changes in circumstances to ensure they are consistently providing customers with the support they require. Home Caring aims to provide the highest standards of personalised in-home care with clinical expertise. Business Franchise magazine spoke with the team at Home Caring to find out more their unique service.
Can you tell us about the Home Caring mission? “Our mission is very straightforward; we are dedicated to providing professional and reliable care and support services to all clients,” says Jon. “It’s common to assume that providing home care is easy,” says Jon, “surely all you have to do is look after people for a few hours – how hard is that?” In reality, the best home care is far more thoughtful than this, and Home Caring take everything into account when caring for each individual, ensuring that all their requirements are met and that they retain their dignity. “The way we see it, home care should be about helping people to feel comfortable and confident at home. They should have a sense of independence and not feel as though
“It’s the perfect partnership,” says Jon, “Claire has gone from nurse to business-woman and has achieved incredible results with Home Caring.”
40 Business Franchise Australia and New Zealand
they’re on their own. With our innovative approach, we’ve bought smiles to over 900 faces in just a few years,” explains Jon.
How does the mission translate into the everyday operation? “Everything we do is focused on our mission statement,” says Michaela, “all of our services and home care packages are designed to be as professional and reliable as can be. No matter who the client is – or what problems they might have – we are always going to be there to help, and there will always be professional support from trained specialist carers.” “Unfortunately, many home care services in Australia are set up to make money – understandably, a business needs to make a profit, but this shouldn’t be at the expense of patient care,” says Michaela. “With Home Caring, we always put the client first. We listen to their needs and develop home care plans to suit their specific needs,” explains Michaela. “As a result, it means clients only pay for a plan that suits them. You never have to pay for things you don’t need, making our services affordable and accessible. Care and support for clients come first, above everything else!”
FE ATUR E : H e a lt h, Fi t n ess & B e au t y Fr a nch ises Tell us about your franchisee partnerships “The business launched in 2015 and started franchising in 2018 with the first franchisee appointed in December of that year,” says Jon. “Our franchisee system is a partnershipbased model, so we partner with, nurture and empower our nurses,” says Jon. “The Home Caring business model is unique and offers a 50/50 joint venture, reducing startup costs and promoting strong collaboration between the Home Caring brand and our franchisee partners.” “I first got involved with Home Caring in October last year. It was the Home Caring franchisee online advertisement that drew my attention,” says Claire, “when I compared Home Caring’s advertisement with other companies that offer a similar business opportunity, I found Home Caring has a more reasonable and detailed plan for the franchisee, in terms of offering 50/50 joint venture structure.” “I was always interested in business and wanted to be a business owner, but I never thought my nursing career would help me
“Our franchisee system is a partnership-based model, so we partner with, nurture and empower our nurses,” says Jon. “The Home Caring business model is unique and offers a 50/50 joint venture, reducing startup costs and promoting strong collaboration between the Home Caring brand and our franchisee partners.”
with owning my own,” says Claire, “but after starting Home Caring Campbelltown, I soon realised my experience has actually helped me a lot, not only my clinical knowledge and skills but also skills in leadership and management that I have learnt over my time working in the health care industry.” “The most rewarding part of my job is to help my clients to achieve their care goal and support their families and carers. The other rewarding part is to see my employees happy by providing ongoing training and offering them a secure job with a stable income,” says Claire. “It’s the perfect partnership,” says Jon, “Claire has gone from nurse to businesswoman and has achieved incredible results with Home Caring.”
Why choose Home Caring? “Franchisees receive full support in the operation of the business, from initial induction training to marketing activities and compliance processes. Regular meetings are held for franchisees, and the operations team regularly visit the franchisees in their locations to lead and guide them on a one on one basis” explains Michaela. Home Caring is on the lookout for passionate, dedicated and communityminded franchisees who want to experience the rewards of running a business. For more information on the Home Caring franchise partnership model, please visit www.homecaring.com.au
Business Franchise Australia and New Zealand 41
FE ATUR E : H e a lt h, Fi t n ess & B e au t y Fr a nch ises
FE AT U R E A R T I C L E
Health, Fitness and Beauty Franchises:
Feel Good Franchising Keeping in shape, staying healthy and even having our hair done, is considered a necessity of personal maintenance rather than a luxury in today’s society. Likewise, owning a customer-focused franchise that helps to promote a sense of well-being and happiness can be just as rewarding for the business owner. In today’s busy world, finding a career that you love means you might not ever have to work a day in your life again. The health, fitness and beauty industry is booming, with franchise opportunities ranging from gyms and weight-loss centres, to hairdressers, beauty therapists and laser and cosmetics centres.
Booming aesthetics industry Despite our love for the outdoors and relaxed lifestyle, Australian consumers spend more on skincare, make-up and cosmetic procedures than those in other developed countries and is ranked in the top five markets in the world. Due to high disposable
incomes, Australian consumers can spend highly on beauty and personal care. It’s easy to see why a franchise in the beauty industry could be a highly lucrative business opportunity. According to the Australasian College of Cosmetic Surgery, each year, Australians spend approximately $1 billion on cosmetic treatments and annually consume more than $350 million worth of wrinkle reduction procedures with products like Botox. Business Franchise magazine took a look at some successful beauty franchise systems available across Australia and New Zealand. Having conquered some of the latest beauty treatments and technologies, Nirvana Beauty Laser Clinics presents a huge investment opportunity for people wishing to enter the beauty industry. As a franchise owner with Nirvana Beauty Laser Clinics, you will experience the satisfaction of working in a booming sector and offering customers a wide range of skincare, body sculpting, injectables and laser hair removal procedures. Ella Baché is Australia’s only national skincare franchise. Ella Baché is a leader in skin care products and education in Australia. As a franchise owner, you can
expect the ongoing support and training you need to create the vibrant lifestyle you want. Salon owners have come from all walks of life; from retail positions, graduates, people from non-beauty industries and many salon clients, who have dreamt of running a small business. Laser Clinics Australia has carved a niche in the cosmetic treatment industry, offering a wide range of affordable and accessible procedures and treatments at over 105 clinics across Australia and New Zealand. Laser Clinics Australia offers every franchisee partner a unique franchise business opportunity. Each location opened will be a 50/50 partnership between the franchisee partner and Laser Clinics Australia. The success of Essential Beauty is due primarily to adapting to changing market conditions and being innovative with its products and services. Initially providing traditional beauty services such as nails and waxing, it has increased its clientele to include other beauty services, such as cosmetic injectables and laser hair removal. Years of experience has produced a franchise business model with a proven formula for the establishment and operation of successful salons.
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Regular physical activity and a healthy diet are essential factors in maintaining a healthy weight, and there are a growing number of health and fitness franchise systems available across Australia and New Zealand.
“If being healthy, looking great and keeping fit is something that will get you out of bed every day, then perhaps a franchise in the health, fitness and beauty industry is the right fit for you.”
Australia’s rising health consciousness Demand for personal training, fitness groups and gym memberships have been fuelled by rising health consciousness in Australia and a growing interest in weight-loss programs and fitness regimes. Australia’s high obesity rates are projected to contribute to industry growth well into the future.
According to the Australian Institute of Health and Welfare, excess weight, especially obesity, is a significant risk factor for a range of diseases including cardiovascular disease, type two diabetes, some musculoskeletal conditions and several cancers. As the level of excess weight increases, so does the risk of developing and managing these conditions. Some of the most concerning
Established in 2004, Listen to Your Body (LTYB) achieved its long term goal to develop a unique group personalised training model into a franchise system. LTYB franchised the operation to provide a business model that more members across Australia can access. The LTYB model differentiates from other systems due to the unique individualised service offering to members. Studios are appointment only with each member having a personal trainer in every session. The 9Round fitness franchise opportunity is breaking the mould in the fitness industry — the business model simple and the entry cost low. With a proven business model, a network of dedicated support staff, and hundreds of other franchisees, 9Round owners always have somewhere to turn for support and direction. Snap Fitness is the world’s premier gym dedicated to providing results to members through 24/7 access to high intensity interval training. Starting from humble origins, Snap Fitness has grown over these past 15 years to become a well-respected international brand, boasting over one million members around the world. The Australian fitness industry is now worth $2.4 billion — and a massive chunk of that is attributed to the fastest growing fitness chain, F45. F45’s popular training method and highly systemised business model has seen this fitness brand explode across the globe, with over 1750 franchises across 45+ countries in only six years. And now F45’s
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statistics include that two in three adults were overweight or obese in 2017/2018, and one in four adolescents ages two to 17 were overweight or obese in 2017-2018.
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sights are set on further domination with the launch of its newest model, Prodigy — a specially designed high interval training (HIT) program for kids between 11-17 years of age. Plus Fitness is an award winning 24 hour gym franchise network and offers conveniently located, low cost, high quality fitness facilities to its growing membership. As a franchisor, Plus Fitness is committed to franchisee success and offers high levels of initial and ongoing support. Plus Fitness has sold over 250 franchises across Australia and New Zealand and continues to grow at a rapid rate, recently announcing the opening of its first gym in Singapore making it the fourth country for the gym chain to establish in. Vision Personal Training is a one-on-one specialist training service. Vision Personal Training has been operating since August 1999 and franchising since 2004. The all-inclusive investment of a franchise includes leasing, studio fit-out and equipment, initial training fees and all other charges. When compared to other popular
franchises, Vision Personal Training is a very cost-effective opportunity.
A necessity of personal grooming Having your hair styled, coloured and cut is considered a necessity of personal grooming and because hair never stops growing, neither does demand. Australia’s Hairdressing sector includes a range of hair-related services, such as hair cutting, colouring and styling, as well as facial hair grooming. According to the Australian Industry an and Skills Committee, as of May 2017, 54,400 people were employed as hairdressers in Australia, with that number expected to grow to 58,200 by May 2022. With 224 salons across Australia New Zealand, Just Cuts is the largest and most loved family hairdressing company in the Southern Hemisphere. Just Cuts offers a successful and proven system for hairdressing, where there is constant
“Keeping in shape, staying healthy and even having our hair done, is considered a necessity of personal maintenance rather than a luxury in today’s society.”
demand. Franchisees are not required to be hairdressers but should be motivated, committed, capable and genuinely interested in people. Just Cuts offers franchisees the choice of two options: a turn-key package where everything is taken care of by the franchisor; or a more hands-on approach, which allows for on-the-job training. Over the past four decades, the Franck Provost business model has been refined and optimised to run successfully. With 14 salons across New South Wales, Victoria and Queensland, Franck Provost is now looking for partners that share its passion and vision to grow the network. There are flexible franchise opportunities available at a number of key locations around Australia and the expert franchise partnerships team will be happy to help you through every step to find the most suitable site for you. Hairhouse is both a retail and service business, your one-stop-shop for everything hair, make-up, skin, and much more! Franchisees enjoy national advertising exposure across large mediums and receive ongoing support in generating awareness and sales at a local level. With a simple turn-key operation, Hairhouse stores keep on multiplying. With over 125 stores and salons nationwide, they aim to be the largest privately owned hair and beauty retailer in Australia. With years of experience, Hairhouse has developed a proven operating system and is looking for passionate and devoted individuals to become franchisees. If being healthy, looking great and keeping fit is something that will get you out of bed every day, then perhaps a franchise in the health, fitness and beauty industry is the right fit for you.
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environment, being part of a vibrant and creative industry, and getting the latest trends and know-how from Paris, the capital of fashion,” says Jean-François. “Owning and running a hair salon also provides an important role and status in the local community, allowing you to meet all kinds of people. It allows you to have a strong impact on peoples’ lives by making them look and feel beautiful, and influence the way they interact with others both personally and professionally.”
MAKE A BEAUTIFUL BUSINESS CHOICE WITH
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“At Franck Provost Australia we have heavily invested in a full head office structure and support team, which includes a Head of Education and Talent Management who delivers ongoing training on the Franck Provost concept and customer experience, as well as exclusive hair cutting and colouring techniques. We also provide all the proven tools and systems, as well as a comprehensive operations manual, to help optimise business performance and success,” says Jean-François.
When Franck Provost opened his first salon in Paris back in 1975, he probably never dreamt that a few decades later there would be more than 600 Franck Provost salons in 30 countries around the world!
Eleven years later, the Franck Provost Australian network already counts 14 salons, with an ambition to become the country’s leading high-end hairdressing franchise. Business Franchise magazine spoke with the team at Franck Provost Australia about their unique brand, their vision and what it’s like being a part of the Franck Provost family.
“The existing Franck Provost salons are currently growing by about five per cent compared with last year on average, which sits well above the median 1.4 per cent growth in the hair and beauty industry in general. We believe there is probably room for around 40 to 60 Franck Provost salons across all major Australian cities. This is still quite conservative compared to the nearly 500 Franck Provost salons there are in France!” Says Jean-François.
How does your service benefit franchisees/franchisors? Why outsource these activities?
A glamorous environment, an exciting lifestyle, a supportive family… Open the doors to a thrilling future by becoming a Franck Provost franchise owner-operator.
In 2008, inspired by the outstanding success story of this self-made man, Jean-François Carré reached out to Franck Provost with an offer to develop his venture in Australia. They instantly connected and soon a master franchise was granted to Jean-François for Australia.
What potential for growth do you see for individual salons and also the Franck Provost brand in Australia?
Why did you bring the Franck Provost brand to Australia? “Following much research, I chose Franck Provost as it ticked many boxes: it’s a beautiful brand and industry, a world leader yet still a family business with great corporate culture. Plus, I saw an opportunity for the Australian market, as there was a lot less competition in terms of high-end hair salon franchises compared to Europe. I also thought the
10 Business Franchise Australia and New Zealand
glamorous brand image and its accessible luxury positioning were perfectly fitted for Australia,” says Jean-François.
What do you think is unique about the Franck Provost brand when it comes to a franchise partner offering? “Being a Franck Provost franchise entrepreneur means working in a glamorous
“And on top of the Franck Provost franchise, we have also launched supplementary optional support services, where we can additionally look after bookkeeping, accounting, financial reports, payroll, HR, and also help with recruitment and local marketing.”
What qualities do you look for in a prospective franchise partner? “We are looking for individuals who share a positive, entrepreneurial mindset and a genuine commitment to making their salon grow and prosper. Franck Provost provides full training in professional hair salon management, so no hairdressing experience is necessary.”
“We are looking for individuals who share a positive, entrepreneurial mindset and a genuine commitment to making their salon grow and prosper.”
Your career was outside the hair industry, so what made you open your own Franck Provost hairdressing salon? “I decided to take the plunge and operate my own business by opening a Franck Provost hair salon. I knew the Franck Provost brand very well as I am French; it is a very popular hairdressing name in France. Moreover, I am actually from the town where Franck Provost opened his first salon in 1975, so I felt there was a connection,” says Virginie Henriet, Franck Provost’s Mosman franchisee.
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us with the tools and advice we needed to get going. The ongoing support to date has still been great, the office and head management team are always there for support when we need it,” says Sonya Wilson, Franck Provost’s Chatswood franchisee.
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What is your favourite part about SPECIAL FEATURE
HEALTH, FITNESS & BEAUTY FRANCHISES
“I really like working in the luxury beauty industry; it is a great sector of services. Franck Provost is a well-positioned brand in that it is high end, yet accessible, so there is no elitism. The good thing is that you can always change and improve it because it is your own business.”
What do you enjoy most about being part of the Franck Provost family? “Where do I Start? Firstly, I think the support from Head Office and the other franchise partners is great. Being our first business and not having much insight into what it takes to start a business, the franchise was heavily involved in getting us started and providing
owning a Franck Provost salon?
“Having the Franck Provost Academy in Sydney is fantastic because our team is always being trained in the latest trends and techniques coming out of Paris. When your job is to give your clients a luxury experience, quality and consistent education are absolutely essential,” explains Freddy Pinzon, Franck Provost’s Paddington franchisee.
Want to own a little piece of Paris? Franck Provost has flexible franchise opportunities available at a number of key locations around Australia and the expert franchise partnerships team will be happy to help you through every step to find the most suitable site for you. For more information 02 9331 5147 partnerships@franckprovost.com.au franchise.franckprovost.com.au
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$4.95 (AUD), $7.95 (NZ) inc. GST.
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pr o file : Pl u s F i tn e s s
A True Turn-Key Franchise Plus Fitness is an awardwinning Australian owned company that has been operating since 1996. Having launched its 24-hour gym franchise model in 2011, Plus Fitness has sold over 300 franchises with gyms located in Australia, New Zealand, India and most recently Singapore. The network offers conveniently located, low cost, high-quality fitness facilities to its growing membership base. As a franchisor, Plus Fitness is committed to the success of its franchisees and offers a high level of ongoing training and support.
manager who works closely with the franchisee on an ongoing basis, with monthly structured calls, site visits and unlimited contact to assist them in driving maximum success from their franchise.
Plus Fitness provide its members with the latest, world class, cutting edge gym equipment and the team of passionate personal trainers and fitness instructors provide every member with the option of a tailored fitness program to assist them in achieving their desired results.
The Plus Fitness field management team are all gurus of the fitness industry and are a formidable team in terms of their experience and depth of knowledge. As well as this, franchisees and their staff have access to thousands of business tools, an online training portal and an online marketing system which ensures their business succeeds.
All services and support provided
The benefits of a Plus Fitness franchise
The Plus Fitness franchise support structure and resources are extensive, from the franchisee’s initial establishment through to the open and then ongoing support, plus there is a team of franchisee support specialists on call covering every aspect of the franchise business.
• Initial investment $250k to $500k dependent on the size of premises
Each franchisee is also allocated a field
• Unrivalled franchise support, training
• All gym equipment included in your franchise cost! • Exclusive franchise territories • Low staffing costs
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and resources meaning that no industry experience is required • Comprehensive sales and retention systems • Australian owned • Winner of the FCA’s coveted ‘Emerging Franchisor of the Year’ and Smart Company’ Top Franchise’ awards
Here’s how easy it is to get started A Plus Fitness Franchise will cost you from as little as $250k including all of your gym equipment, aesthetic fit-out, signage, access control, marketing, training and franchisee support. The Plus Fitness 24/7 franchise model offers low staffing in a fast-growing and sustainable industry and is a true turnkey franchise. If you would like to find out more about a Plus Fitness 24/7 franchise, then send an email to franchising@plusfitness.com.au or head to our website and click on ‘Own A Gym’.
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e x pert adv i c e
Ensuring You Get a Healthy Return on a Franchise Investment Looking the part is something more, and more Australians are increasingly prioritising; and health, fitness and beauty franchises have become the beneficiaries of this growing trend. The most recent National Health Survey, conducted in 2018 by the Australian Bureau of Statistics (ABS), found that a staggering two-thirds of all Australians are overweight or obese. Maintaining an active lifestyle is a remedy that many people are now adopting to combat bulging waistlines.
“Current market trends indicate that the health, fitness and beauty industries are certainly ones that can generate good returns on investment. Australians do seem to have become more conscious of the need to proactively maintain a healthy lifestyle, while also looking to utilise services that make sure one is looking sharp and at their best.”
However, increasing one’s fitness does not only improve physical fitness; it is also great for combatting stress levels and maintaining good mental health. That’s why the Australian fitness industry is now estimated by IbisWorld to be worth a whopping 2.4 billion dollars thanks to franchise chains such as F45 and Jett Fitness. Meanwhile, beauty franchises are also on the rise, encompassing services ranging
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from hairdressing, beauticians, tanning, cosmetics, teeth whitening and much more. Again, according to IbisWorld, the beauty industry in Australia has boomed to be worth 6.5 billion dollars, with personal grooming services withstanding the sluggish economic conditions. However, while the health, fitness and beauty sector is performing strongly, finding the right franchise is easier said than done
The first thing you should consider is the strength of the franchise brand. The fitness market, in particular at the moment is incredibly competitive with several different brands jostling for clients. While the high demand is proof that the sector has the potential to deliver a good return on investment, picking the right franchisor is essential. One of the benefits of entering the franchise game is that you don’t have to spend years establishing a name for yourself. Particularly if you’re entering a saturated market, such as the health, fitness & beauty sectors, selecting a business with extensive brand awareness means you’re not starting behind the eight ball in attracting customers. By nature, a business with a reliable brand has a reputation within the market for delivering services that cater to the wants and needs of consumers. Investing in a business that is seen to have a positive track record of success goes a long way to ensuring that you’re not lacking a healthy clientele level. Moreover, do your due diligence on the prospective franchisor, ranging from the business model they operate through to the way they interact with their franchisees. For instance, in fitness, there are a variety of different types of services varying from personal training, yoga, strength training and many more. All of these appeal to different demographics and attract different proportions of market share, so if you’re looking to become a fitness franchisee study which trend you believe will deliver you success. The same goes for the beauty sector, where the industry has expanded well beyond barbershops and beauty therapists, with both men and women increasingly purchasing products and services in this space. Doing your research also involves the obvious, but crucial question of whether you can afford it. Becoming a franchisee is one of the most significant financial investments you can make, and it’s vital that you can buy into a business while also juggling other commitments such as a mortgage, raising a family and affording a decent standard of living. This may well mean that some of the more prominent franchise brands are out
“While the high demand is proof that the sector has the potential to deliver a good return on investment, picking the right franchisor is essential.”
“Looking the part is something more, and more Australians are increasingly prioritising. And health, fitness and beauty franchises have become the beneficiaries of this growing trend.” Lindsay Carroll | Legal Practice Director & Deputy CEO National Retail Association
of your price range, but it’s certainly worth taking the time to get the balance right between a well-known business and what is cost-effective. Also, do background research on how the franchisor operates and how they engage with existing franchisees. Of course, the franchisor is going to tell you that they’re wonderful to deal with but to gauge an accurate understanding reach out to some of their franchisees to determine the sort of relationship you can expect. A partnership that balances providing the necessary levels of support while not being an overzealous supervisor is something that some franchisors do better than others. Make sure that you’re confident that your chosen franchisor has a proven set of systems in place that will assist your business in succeeding and that you’re fully across all rules and requirements that you would need to comply with. One final piece of advice is perhaps the most simple of the lot – make sure that you’re passionate about the business you’re getting into. As the old saying goes ‘find your obsession, make it your profession, and you’ll never work a day in your life’. If you’re only looking to get into the health, fitness or beauty industry because you think the market is strong and there’s an opportunity to earn some quick money you’ll quickly find yourself struggling with the grind of owning a small business. Being a franchisee involves long hours, learning to manage staff, frequently working weekends and ensuring that your services meet the standards of both your clientele and franchisor. If you don’t love what you do, there’s every chance you won’t get either the enjoyment nor the return on the investment required to enjoy success. All professions have their moments, and everyone has days where they’d rather sleep in than go to work, but having the necessary level of commitment is
often the difference between struggling and thriving in the franchise game. Current market trends indicate that the health, fitness and beauty industries are certainly ones that can generate good returns on investment. Australians do seem to have become more conscious of the need to proactively maintain a healthy lifestyle, while also looking to utilise services that make sure one is looking sharp and at their best. However, no sector is fail-proof and running any business comes with a variety of challenges. Don’t dive into a franchise agreement headfirst - do your research, add up the sums and ensure that you have the drive to succeed and withstand the challenges. Just like with your customers, keeping your business fit, healthy and looking the part doesn’t come without effort. At the NRA, Lindsay oversees the largest in-house team of workplace relations advisors and lawyers orientated to the retail industry. She is a leading workplace relations specialist with extensive legal experience. The National Retail Association is Australia’s largest and most diverse industry association. 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. For more information please contact Lindsay Carroll, Deputy CEO, Legal Practice Director NRA Legal 1800 RETAIL (738 245) www.nra.net.au
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if you’re looking to enter this market. A quick google search will provide plenty of examples of disgruntled franchisees across numerous sectors who did not enjoy the best relationship with their franchisor. However, it’s also worth remembering that the many success stories of franchisee/franchisor partnerships seldom get reported, for the simple reason that’s it’s just not newsworthy.
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fran c h is o r in dep t h : N u r s e N ex t D o o r
Build A Home Care Business With Heart
businesses from scratch, the serial entrepreneurs were on the lookout for a new challenge. Identifying that an ageing population was creating compelling business opportunities, they decided to investigate Nurse Next Door further, discovering not only a highly regarded home healthcare provider in Canada and the USA but also a very successful franchise system looking to expand into Australia by way of a master franchisor licence.
Amber Biesse & Matt Fitton Founders of Nurse Next Door Australia
With the population ageing at a rapid rate, the home care industry in Australia is about to explode. In 2016 Amber Biesse and Matt Fitton were living in Vancouver, Canada when they noticed one of Nurse Next Door’s pink cars driving around their local neighbourhood. Having built and run several successful
“As parents of a child with special needs,” Amber explains, “Nurse Next Door’s core purpose of making lives better resonated deeply with Matt and I. We also recognised the enormous potential of bringing a home care brand to Australia that combined this core purpose, and its associated values, with world-class processes and operational excellence, honed over years of best practice.” A rigorous process of research and investigation into the opportunity ensued. Living in Vancouver provided a unique set of circumstances as regular meetings were held at HeartQuarters over many months allowing an in-depth working knowledge of the culture, values, brand and Nurse Next Door’s systems. Australia became Nurse Next Door’s first
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global partner when Matt and Amber were awarded the Australian master franchisor licence in September 2018. The corporately owned location commenced business in Melbourne a couple of months later and Matt says, “At the rate at which Nurse Next Door Melbourne has been able to penetrate the home care market and build a growing number of raving fans, the success of the brand in North America is being quickly replicated in Australia,” The level of initial inquiry from people interested in the opportunity of becoming a partner in the Nurse Next Door family is further evidence for the couple that this bold pink brand is in the right place at the right time.
The silver tsunami As the population continues to age, more people desire options. Instead of moving into a nursing home once they are no longer independent, older Australians, and their family members want choices. The statistics speak for themselves. Almost 90 per cent of all older people say that they want to age at home. In Australia, home care is a multi-billion dollar industry, and as baby boomers age, it’s poised to grow exponentially. Today the over 65s make up around 15 per cent of the population (one in
explains. “There’s nothing sombre or timid about it — a bold, brassy pink that grabs you by the lapels and urges you to get out there and enjoy life!”
“On a beautiful crisp, bright morning in April, Bronwen climbed aboard with one of Nurse Next Door’s Care Designers and sailed across the skies of Melbourne. “Bucket list!” she declared on landing.”
It gets the franchise partners noticed, too. Often, people encounter Nurse Next Door for the first time when they spot one of the pink wrapped cars. “Pink reflects the energy and spirit Nurse Next Door wants to pass on to its clients, who deserve to feel enthusiastic and happy about their lives.”
Doing what you love seven). Forecasts project that this cohort will make up 18 per cent in 2027 (one in six) and by 2047 one in five Australians (20 per cent) will be aged over 65. Even with substantial growth in the last decade, the home care industry is still trying to catch up to an ever-growing demand that will last for at least the next generation, if not beyond.
Making lives better Baby boomers aside, the home care market in Australia also provides an excellent option for those living with a disability. The National Disability Insurance Scheme (NDIS) has revolutionised disability services and gives people living with a disability more choice and control about when, where and how to get the support they need, allowing them to continue living independently in their own homes, on their terms. “We believe people can stay at home. We believe in Happier Ageing. We believe in possibility, rather than disability. We believe in making lives better,” says Amber. Despite its continued growth, the home care industry has resisted significant changes over generations. But it’s no secret that this is an industry in the midst of some major disruption, and the companies that will thrive in the new world are those that embrace change. Thanks to Nurse Next Door’s philosophy of care centred around happier ageing and making lives better — a unique experience designed to get older Australians and people requiring disability support back to doing what they love - no matter what their age or circumstance - the business stands out amongst other home care companies.
Traditional companies arrange care around basic tasks — meal preparation, cleaning, medication management, assistance with bathing and dressing. But they miss a grand opportunity to meet clients’ emotional and personal needs, which are just as important, if not more so, than the physical ones. Nurse Next Door builds care on the foundation of each individual’s needs, desires and personality and arranges the care plan around the person instead of trying to plug the person into the package. Matt and Amber reject — emphatically — the notion that people need to surrender their enjoyment of life because they’ve reached retirement age. “They’ve lived full lives,” Amber says, “and gathered volumes of wisdom and experience. It’s a cause for celebration! Likewise, we’re always looking for the possibilities in life for people who are challenged by disability. They are some of the most inspiring people on our planet.”
Warning: Friendly people inside Nurse Next Door firmly believes culture is better when it’s the product of design rather than an accident. It’s no surprise, therefore that the company is widely recognised and awarded for its culture, built around the central theme of making lives better. From there, the business is built on four core values: Admire People, WOW Customer Experience, Find a Better Way, and Passionate About Making a Difference. Franchise partners adopt the tone: bright, cheerful, happy, professional and hardworking but fun! “It’s why Nurse Next Door chose a particular shade of pink as its primary colour,” Matt
In a society traditionally viewing care as a set of tasks or responsibilities, here’s how Nurse Next Door does home care; they take people ballooning! Well, that’s just one example - Bronwen had always wanted to soar over Melbourne in one of the hot air balloons she regularly saw from her backyard in Melbourne’s inner eastern suburbs. The problem was that none of her friends or family was interested. So, when she had the opportunity to enter Nurse Next Door’s Happier Ageing Dreams competition in March 2019, she jumped at the chance, and Nurse Next Door was happy to help out. On a beautiful crisp, bright morning in April, Bronwen climbed aboard with one of Nurse Next Door’s Care Designers and sailed across the skies of Melbourne. “Bucket list!” she declared on landing. There’s Donald, who had a love of hobby planes but stopped flying due to failing health until his carer stepped in and helped him get back out in the field. Eleanor hadn’t swum for 20 years after her diagnosis of Alzheimers, and so her caregiver spent the whole summer getting her back in the water at the local pool, gradually building up stamina until, eventually, she was able to swim in her local lake. The stories of happier ageing and making lives better are endless, and Matt and Amber say no matter how small or simple when care focuses on the individual emotional and psychological needs of the client it can make all the difference in the world. “The trust between the caregiver and client is the essence of the service and commitment by Nurse Next Door,” says Amber. “Changing the perception of ageing
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“We believe people can stay at home. We believe in Happier Ageing. We believe in possibility, rather than disability. We believe in making lives better,” says Amber.
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“Even with substantial growth in the last decade, the home care industry is still trying to catch up to an ever-growing demand that will last for at least the next generation, if not beyond.”
from one of loss and sadness to a time of celebration and happiness starts with one simple question: : “What did you use to love to do, that you no longer do?”
Taking care of business Of course, none of this — great culture, caring and happy employees, revolutionary service, pink cars — would mean a thing if Nurse Next Door didn’t work as a business. As Matt says: “It doesn’t just work. It thrives.” Minimising the administrative aspects of the business — especially scheduling, the most complicated and time-consuming duty — is a significant drawcard for Nurse Next Door franchise partners, drastically reducing burnout and allowing partners to focus on growing their business. An around-the-clock Care Services Centre manages all intakes and scheduling requirements to ensure clients, caregivers and franchise partners have 24/7 support. The Care Services Specialists are experts at speaking compassionately about the Nurse Next Door services. From fielding incoming calls to handling caregiver scheduling, setting up appointments and ensuring scheduling changes don’t disrupt client care, they talk regularly with franchise partners to coordinate care and are ready for anything, 24/7. Given the company’s commitment to exceeding expectations, it comes as no surprise that their Net Promoter Score is on par with such renowned brands as Amazon and Apple. “Most importantly,’’ says Matt, “The Care
Services Centre saves our franchise partners a tremendous amount of time and energy that they can spend on building connections in the community.”
Unparalleled opportunity Nurse Next Door is one of North America’s fastest growing home care franchise systems and represents an exciting opportunity to become part of this successful, proven brand as it expands in Australia. With no requirement for a medical or health care background, Matt and Amber say the ideal Nurse Next Door Franchise Partner has a tender touch and the tenacity of a bulldog. Its territories provide a protected area for each partner to establish their business. The geographical size of the metropolitan area doesn’t matter much; Nurse Next Door has found that the key statistic is the number of people aged over 65 years. Each territory in Australia averages between 30,000 - 35,000 seniors. Regional markets, while often large geographically, can be great locations for Nurse Next Door because they’re usually made up of tightly knit local communities. Training and support start with a Franchise Opener program which covers everything from insurance to wrapping the Nurse Next Door car to setting up the marketing and sales systems. Franchise partners also undertake a full week of Franchise Partner Training at HeartQuarters in Melbourne, walking away with a clear, written plan to get started. During the week, various members of Nurse Next Door HeartQuarters team provide interactive training sessions so information can be absorbed and retained easily. They leave
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training with a solid understanding of the finances and metrics behind the business. For the critical first six to eight months, an assigned coach guides each partner through the inevitable rough spots. “The coaches”, Matt says, “are part counsellor, part cheerleader, part business consultant”, and the entire HeartQuarters team is available for as long or as often as needed. Understanding that sometimes the hardest part is getting started Nurse Next Door has developed tools such as a 16-week plan to help new franchise partners find their footing and ensure they’re set up for success from the beginning. This is a franchise opportunity that provides a return on investment, both financially and emotionally. As Amber says: “Franchise partners are not just selling ice cream or sandwiches, they’re helping people find the care to continue living life on their terms.” She notes the calls and letters received from clients are unparalleled to any other feeling experienced in another industry. From the brand’s bold pink colour to images of people celebrating ageing, Nurse Next Door is disruptive and a thought leader in the home care industry. It’s one of the main reasons why Matt and Amber believe Nurse Next Door is uniquely positioned for long-term, year-over-year growth that’s unparalleled in the franchise industry. Want to build a home care business with heart? Contact Matt Fitton 1300 010 247 matt.fitton@nursenextdoor.com.au www.nursenextdoorfranchise.com.au
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e x pert adv i c e
Health, Fitness and Beauty
Hot Sectors in Franchising
Any franchise business that works in the health, fitness or beauty sector is operating in an intensely personal space offering both opportunities and risks. I have watched as all of these sectors have grown strongly over the past five years, fuelled by rising health consciousness in Australia, a growing interest in weight-loss programs and fitness regimes, an aging population prepared to invest in a fitter, healthier life and a scientific community that is providing revolutionary therapies in the area of beauty. Wearable technology has put personalised biometric health statistics at people’s fingertips, while social media, with its insatiable appetite for personal photos and the rise of vloggers, has driven a generation of people who are far more aware of their personal style. Also, these sectors are becoming more and more important in professional development, with top motivational coaches, including fitness and personal presentation as non-negotiables in their success plans. Franchising is an excellent business model in these areas. A good franchisor will provide the systems, manuals, documentation and training while you provide the vital ingredients – expertise and passion. But how, out of the myriad of franchise offerings in this sector, do you select a great franchise model to hook your future to? First, work out where your passion fits. Is it for a dynamic fitness gym, a customised group training scenario, high-end scientific beauty procedures or maybe a traditional salon offering? Work out which model aligns with your skills and experience and emotional commitment. Once you’ve done that, then you need to evaluate all the
“Do your homework, always over-estimate your financial outlay, add your passion then enjoy the challenges of being a business owner with that additional comfort of expertise on tap from your franchisor.” Corina Vucic | Director | FC Business Solutions
franchise offerings in that narrowed sector very carefully. It is often a juggle between your finances - how much you can afford to pay to set up a franchise - and the quality of the brand. However, there are great franchise organisations at all financial entry levels. Some have already succeeded, and some are on the way up, offering unique opportunities for those who join them early. If you are looking for a business that is close to home, then you’ll need to research your local competition — no point in going headto-head with multiple solidly established businesses in your backyard. Either move further afield or revise the kind of offering you want to provide.
“A lot of blood, sweat and tears goes Bridge, into making a business a Selina success, if you have passion CEO of KXand Pilates what you areand doing, makes “A for lot of blood, sweat tears itgoes into it easier to investa all that effort.” making a business success, and if you have passion forCEO whatofyou doing, it Selina Bridge, KX are Pilates makes it easier to invest all that effort.”
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Look at brands that have been established and growing for over five years. These businesses have the runs on the board. Their processes and systems are robust, and they are a proven business model. Talk to existing franchisees of brands that attract your interest. How do they evaluate the support they get from the franchisor? What’s the supply chain like? Are there good deals in place for consumables? Do they provide all of the compliance documentation that is so vital for the health, fitness and beauty industries? Ask the franchisor to provide you with a list of all the forecast financial outgoings so you can plug them into an excel spreadsheet
Jason Smith, Founder and CEO, Back in Motion “Franchising a service as opposed to a product is very different as the goodwill is with the practitioner.”
Spend time on social media looking at the posts on Facebook, Instagram and LinkedIn of those franchises that interest you. Are they engaged with their community, is their content appealing, how do they handle controversial comments and feedback? Success in these sectors requires honed relationship skills for you and your staff. The ability to read your clients and deliver the messages they need to hear in a palatable, sensitive manner is key to your business and your reputation. Does the franchise offer training to help you give these skills to your team? Over my years in the franchise support area, I have worked with a lot of good, well-established brands. I asked a few of the people who are experts in the health, fitness and beauty field what their advice was for people considering joining a franchise, and how to choose a good one. Selina Bridge, CEO of KX Pilates, advises you to bring passion to the business. “A lot of blood, sweat and tears goes into making a business a success, and if you have passion for what you are doing, it makes it easier to invest all that effort.” Asked for advice on choosing a franchise, Selina replied “Choose a brand that is aligned with your values. If community involvement is important to you, look for a brand that does this. A well-respected franchised brand may have tight controls around how their brand is used and how you deliver your services. It’s important to do your due diligence and consider whether you believe in the brand and trust the system as these will influence the future of your business.”
Jason Smith, Founder and CEO, Back in Motion says that franchising a service as opposed to a product is very different as the goodwill is with the practitioner. “It’s imperative that you keep consistency in services, support and structure. Healthcare services are personal with all sorts of accompanying sensitivities, so you must have guidelines and protocols around decision making.” Ben Fletcher, Founder and CEO of Listen To Your Body, agrees that passion is imperative for success. “When looking at a potential franchise model, make sure you align your passion to the type of offering – group fitness, gyms, Pilates, outdoor, etc. and you will have a greater chance of success.” Ben advises that when you are evaluating franchisees offering this model. “Look at the level of support – talk to existing franchisees about their experiences. Look at the financial viability of the model.” Deb Farnworth-Wood, an expert in the aesthetics industry and founder Australian Skin Clinics Franchise, believes the beauty industry has made a quantum leap in the past few years. “It’s now a scientific-based offering which lends itself well to franchising. A good franchisor should provide support for all areas of your business as well as advice and training on those newly critical areas of medical ethics and confidentiality.” She says that it is essential to keep records – notes on medical issues, consent to treatment, proof that clients have been informed of the possible implications of treatment, etc. “A good franchisor will have the systems in place to make this easy for you.” Craig Arnold, Managing Director of Core9, says “Be passionate about fitness or be passionate about business success. Having
both is the ultimate combination. The benefit of joining a franchise is that there is a community of like-minded people already in existence.” When looking for a good franchise, Craig says to look for the problem their product or service is solving. What unique selling point (USP) do they offer? “If they don’t have a USP, then you are likely to have to spend a lot more on marketing for penetration, and that can become an expensive way to run a business.” He advises to look at the longevity of the franchise. In conclusion, if you are looking at joining a franchise in the health, fitness and beauty sector, there are some well-established, innovative franchises to choose from. Do your homework, always over-estimate your financial outlay, add your passion then enjoy the challenges of being a business owner with that additional comfort of expertise on tap from your franchisor. 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
Ben Fletcher, Founder and CEO of Listen To Your Body
Deb Farnworth-Wood, Founder Australian Skin Clinics
Craig Arnold, Managing Director of Core9
“Passion is imperative for success. “When looking at a potential franchise model, make sure you align your passion to the type of offering.”
“A good franchisor should provide support for all areas of your business as well as advice and training on those newly critical areas of medical ethics and confidentiality.”
“Be passionate about fitness or be passionate about business success. Having both is the ultimate combination.”
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and work out how quickly you can become profitable. Also, check out the technology that underpins the product or service.
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e x pert adv i c e
Manual Handling and Repetitive Tasks in Health-Related Franchise Businesses
Hazards in health, fitness and beauty franchises Beauty Within the beauty industry, several health and safety hazards face franchisees, and generally, these hazards stem from working with both hazardous substances and people (clients) in what is typically a small working environment. These hazards are: • Hazardous chemicals including irritation and inhalation • Manual, repetitive tasks • Lifting heavy objects SafeWork NSW has some tips on managing those health and safety hazards in a hair, personal services and beauty business.
“Given that the health, fitness and beauty industry rely on its workers to perform manual handling and repetitive tasks for most of the time they are working, the likelihood of an injury related to these actions is higher than in many other industries.” Chris Beasley | Managing Director | Safety Navigator
Over the past few issues of this publication, we’ve discussed some of the critical health and safety hazards and tips for mitigating those risks for franchise businesses in general.
We’ve also looked at the case study of Anytime Fitness using a cloud-based system and support to reduce the risk of a workplace incident occurring within one of their 500 plus clubs in Australia. In this issue, we discuss the key health and safety risks in health, fitness and beauty franchise businesses. Specifically, we will address the number one health and safety hazard facing each of those industry segments and what may be done about it.
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Those tips can be found on SafeWork NSW’s website at the following link: https://www.safework.nsw.gov.au/yourindustry/other-services
General health and fitness The general health and fitness industry segment is made up of a group or individual training, and fitness businesses - either personal training or cross fit-style sessions or gyms/clubs that are either staffed or not and many now have 24/7 opening hours. The hazards faced by these businesses are as follows: • Working alone • Manual, repetitive tasks • Lifting heavy objects • Client aggression • Use of contractors (i.e. personal trainers and the like)
According to SafeWork Australia, the number one hazard facing all businesses in this industry is manual handling/repetitive tasks. Fifty-Seven per cent of all workplace incidents that resulted in a serious claim that occurred in 2017/18 were either joint/ muscle/tendon injuries or muscular-skeletal/ connective tissue injuries - both caused as a direct result of either heavy lifting or repetitive strain tasks — equating to 60,525 incidents resulting in serious workers compensation claims in Australian businesses each year. In addition to the above, those in the health, fitness and beauty franchise industry (and more broadly, the community and personal service industry) equate to 17 per cent of all serious workers compensation claims each year. SafeWork Australia link: www. safeworkaustralia.gov.au/book/work-relatedinjury-and-disease-key-whs-statisticsaustralia-2018#serious-claims-by-nature-ofinjurydisease1 Some examples of these manual handling and repetitive tasks are: moving equipment around, moving/massaging clients, using instruments such as scissors for long periods, repeatedly demonstrating exercises, loading and unloading exercise equipment
Manual handling and repetitive tasks hazard - What to do about it When assessing then controlling the risk of any health and safety hazard, we look to several factors, but none more so than: • The likelihood of the hazard causing a person harm
“According to SafeWork Australia, the number one hazard facing all businesses in this industry is manual handling/repetitive tasks.” • The consequences; the degree of injury the hazard would cause a person Given that the health, fitness and beauty industry rely on its workers to perform manual handling and repetitive tasks for most of the time they are working, the likelihood of an injury related to these actions is higher than in many other industries. When looking to mitigate the risk of an injury occurring relating to these work tasks, franchisors, franchisees and their workers, should look to the following: • Acknowledge the risk: It may sound obvious, but possibly the most critical risk mitigation strategy in this instance is acknowledging the risk. Including discussing this with staff and asking for their feedback, posting some useful manual handling tips on staff noticeboards and sharing information between franchisors and franchisees. • Manual Handling training: A quick general manual handling training session for all staff not only assists staff to acknowledge the issue, but it also gives them tips on how to undertake key manual handling tasks in the safest manner possible. • Job Design: Where possible, staff should be rotated within the workplace to ensure any one individual has minimised ongoing exposure to a repetitive task. Likewise, job design should detail the number and length of breaks between tasks staff should be taking • Staying ‘warm’: Again, this may be obvious given the industry we’re looking at, but staff should always stay warm
by stretching just before any manual or repetitive task is undertaken, rather than for example, moving from a desk task directly to a manual or repetitive task where the body is ‘cold’. In many industries, technology is rapidly replacing worker, primarily where manual or repetitive tasks are undertaken. The health, fitness and beauty industry, however, is more of an outlier to this trend, where the very nature of the sector, i.e. offering personal services to clients means just that - the worker and the client interfacing for that service to be rendered and this means exposure to the hazard remains high. Again, possibly the most critical risk mitigation strategy to reduce the number of workplace incidents relating to manual or repetitive tasks is acknowledging the risk itself. This means facing the stark reality that exposure to this hazard is higher for workers in this industry than in most others. Franchisors, franchisees and their workers, need to keep open lines of communication to identify any manual handling or repetitive tasks and how those can be better managed to reduce the risk of an incident. Moreover, where gaps are identified, such as incorrect techniques being used, they need to be addressed in the most appropriate manner, in this case - manual handling training. 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
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The number one hazard in health, fitness and beauty franchises
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e x pert adv i c e
The ATO supporting your wellbeing
At the Australian Taxation Office (ATO), we understand that small business owners have a lot on their plate. With everyday pressures, unexpected life circumstances, and blurring boundaries between work and family, your wellbeing may be affected. There is a range of support available for small businesses at ato.gov.au, including tools and services to help you stay on track, or get back
on track if you are behind or having trouble with your tax and super obligations. Even with the right tools in place, sometimes running a business is stressful, and you need some further assistance. Contact us, or speak to your tax advisor as early as possible so we can work with you to find a solution based on your circumstances. We can provide you with the following support:
Deferring your lodgment and payment deadlines If you feel you are getting behind you may be able to apply for a deferral of lodgment payment of your BAS, reports and returns. You can call us on 13 11 42 to discuss your circumstances.
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Your tax advisor can also apply for a deferral online via the ATO’s online services for agents.
Accepting a payment plan Finding out you have a tax debt can be overwhelming, especially if you’re not sure how you will be able to pay. If you can’t pay a tax debt by the due date, you may be able to set up a payment plan to pay your tax bill using instalments. You can access help with paying online, including our automated phone service. While online and automated phone payment services are convenient, you may prefer to speak with us, especially if you have a complex situation. If this is the case you can call us on 13 11 42.
Fast-tracking your tax refund
“You can access help with paying online, including our automated phone service. While online and automated phone payment services are convenient, you may prefer to speak with us, especially if you have a complex situation.”
If you think your circumstances put you under financial difficulties or serious hardship, you can ask us to process your return as a priority. You can apply for priority processing which will allow your return to be fast tracked and received earlier; however this does not guarantee that you will receive a refund. We will need documents from you that demonstrate you are experiencing financial difficulties or serious hardship. The ATO website has further details about requesting priority processing.
Accessing your superannuation early Compassionate release of superannuation allows people in certain circumstances to access their super early. These circumstances are very limited and mainly related to specific medical conditions or severe financial hardship to help you pay for: • Medical treatment for yourself or a dependant. • Loan repayments to prevent you from losing your home. • Modifying your home or vehicle for the special needs of yourself or a dependant because of a severe disability.
Andrew Watson | Assistant Commissioner – Small Business Australian Taxation Office
• Expenses associated with a dependant’s death, funeral or burial. • Palliative care expenses because of your, or your dependant’s, terminal illness.
Speak with us You can always call and speak with us about your situation on one of our phone services or you can: • Nominate someone to speak to us on your behalf by nominating them as a representative, or confirming they can speak on your behalf when you verify your identity when you call. • Book an after-hours call back service, at a time that suits you, which you can access by completing our online form.
Seeking further help The Department of Health’s Head to Health website connects Australians with vital
online and phone mental health services, information and resources. The site links users to a range of government-funded services and information that is either low cost or free. It contains hundreds of useful websites, apps, online programs and community forums, as well as phone, chat and email services. Andrew Watson is an Assistant Commissioner in the Small Business line, and is currently responsible for understanding how small businesses engage with the tax and super systems, collaborating with small businesses, industry groups and government agencies to shape the client experience and drive improved digital services, helping small businesses manage cashflow so sustainable and viable businesses can thrive, and advocating for small businesses within the ATO.
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“Finding out you have a tax debt can be overwhelming, especially if you’re not sure how you will be able to pay. If you can’t pay a tax debt by the due date, you may be able to set up a payment plan to pay your tax bill using instalments.”
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sna ps h ot: J u s t C u ts
“Everything is packaged up when you become a Just Cuts franchisee, providing you with the fundamentals you need to get your business up and running smoothly.”
A Cut
Above the Rest Have you ever dreamt of owning your own business? You can turn your dreams into reality with Just Cuts. Regardless of the economy, hair never stops growing, and people are always on the hunt for a high-quality haircut at a reasonable price. The hair and beauty industry is booming, and with 224 salons across Australia New Zealand, Just Cuts is the largest and most loved family hairdressing company in the Southern Hemisphere. Just Cuts offers a successful and proven system for hairdressing, where there is constant demand. Experts agree that franchise businesses have a better chance of success than independent small businesses. The reason is simple – with a franchise like Just Cuts, you’re partnering with a recognised brand and retail product offering, and when you join the owner community, you’re never on your own.
A tried and tested model Over the past 28 years in New Zealand, the highly successful Just Cuts franchise system has been tried and tested. The model has also been fully digitalised with a range of support available online, including an e-learning
platform, print marketing ordering system, retail reward program and point of sales tools.
The Just Cuts technology allows owners to remain on the pulse of the business remotely. The dedicated Academy Team will also guide and support franchisees throughout the whole process of opening your salon, including training, business and management advice, a comprehensive operations manual and a bespoke grand opening marketing campaign. On top of this, franchisees receive ongoing support from the Just Cuts team, including any business, operational and marketing guidance required once up and running.
The brand has grown to 224 salons across Australia and New Zealand, and most recently a third salon has been opened in the United Kingdom. The network includes over 3,500 qualified stylists and serves over 100,000 happy clients every week.
With Just Cuts, the royalty payment is a transparent, fixed flat fee, so earning potential is never restricted. As a franchise owner, you’ll always know upfront what your franchise fees will be. Plus, the trusted range of professional haircare and styling products, JUSTICE Professional, provides franchisees with a second tier of earning potential.
Set your own pace
Where to now?
Just Cuts franchise owners come from all walks of life, and hairdressing experience is not necessary.
Just Cuts turnkey approach means franchisees don’t need to worry about how to get salon doors open or how to best develop a system to ensure customers leave satisfied. Franchisees don’t need to worry about creating training programs for staff, or nailing down operational processes for accounts and stock inventory.
If you want increased flexibility and a great work-life balance, the average Just Cuts franchise owner spends approximately 20 hours working on their business per week. As a business owner, you also have the potential to easily expand into multiple salons – in fact, over half of the franchise owners own two or more salons. With Just Cuts you can set your own pace. The more your salon’s client numbers and retailing sales grow the more earning potential increases.
What makes Just Cuts so different to other franchise systems?
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Everything is packaged up when you become a Just Cuts franchisee, providing you with the fundamentals you need to get your business up and running smoothly. Add to this the great lifestyle benefits you’ll receive, and it’s easy to see why buying into the Just Cuts family will be the smartest business decision you make. To find out more about joining the Just Cuts team visit www.justcuts.com/franchising
Darryl Morris
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fo c us feature : national franchise insurance brokers
The NFIB advantage Franchising, from an insurance perspective, is a simple model. However, for the franchisor, the management of franchisee insurance is a compliance matter, and franchisors often have to invest in resources to ensure that franchisees are compliant and that annual certificates are up to date and accurate. National Franchise Insurance Brokers (NFIB) provides an online platform, as well as an extremely cost-effective insurance solution dedicated to making this process easier for franchised businesses. Created to meet the demand for a dedicated online provider of insurance cover for franchisees, franchisors and franchised businesses in Australia, the NFIB service is fully automated, compliant with franchise agreements and provides you with full documentation confirming your cover placement. Plus, all NFIB products are underwritten by one of the world’s leading insurance organisations.
Where it all began NFIB first trialled its services in 2010. This trial period involved discussions with franchisors, franchisees and insurers where NFIB worked to understand what was missing in the insurance space for the franchising industry. NFIB looked at what
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“NFIB’s basic premise is simple, to provide a centralised space for franchisors to monitor and regulate the insurance affairs of their franchisees.” words form the basis of the NFIB system for franchisors. Through the online portal, franchisors gain access to real-time reporting of franchisee insurance affairs, where all relevant documentation is readily available through the NFIB website, from product disclosure statements (PDS) to certificates of currency, and live updates referring to the take-up rates of franchisees. The group-pricing structure available to companies also acts a major advantage – often providing clients with premiums considerably lower than if individuals were to insure elsewhere.
“Avoiding the tedious and time-consuming nature of organising business insurance and competitive premiums is what draws franchisees to the NFIB system.”
was needed to meet the changing compliance needs of a franchisor and also what would enable them to have a better overview of their insurance program for franchisees. After extensive research, it was clear that there was a real need to develop a specialised insurance solution that would address the needs of all the stakeholders, and so NFIB was established.
What was needed? There are significant costs associated with managing multiple franchisees, often with different insurance expiry dates. Franchisors want to maintain the integrity of their brand, franchisees want business security, and brokers work with insurers to meet those needs. With an online platform sitting between the franchisor, franchisee, broker and insurer, all the parties can be served in a cost-effective manner, often at a time that best suits each individual. And by having all the information in the one place, they are all on the same page, reducing miscommunication and saving time and costs. NFIB is unique in this space and enables a franchisor to have real-time transparency over their brand’s insurance at the franchisee level.
Australian franchisors currently signed up to NFIB cite the level of control offered by the system as the most desirable feature. The ability to stay at-arms-length, but retain an input into something that could have a potentially adverse effect on the brand if mishandled, is what sets NFIB apart from other insurers.
How does it work?
The benefits for franchisees
NFIB’s basic premise is simple, to provide a centralised space for franchisors to monitor and regulate the insurance affairs of their franchisees. Setting up your own NFIB program is free. The only costs are related to the actual insurance premiums specific to your business. NFIB’s technology interface and cost-effective insurance solutions are dedicated to franchised businesses and take care of compliance, certificates of currency and even make sure your dates line up, taking the headache out of administrating your insurance.
Avoiding the tedious and time-consuming nature of organising business insurance and competitive premiums is what draws franchisees to the NFIB system. Having an online space where documentation, important renewal dates, claims lodgement and risk management information can be quickly accessed, is the defining factor in franchisee decisions to continue insuring with NFIB.
While NFIB are a technology based delivery solution, they do have a team of insurance brokers who are ready to walk you through the process of arranging your insurance. Knowing you have the right cover and that any unusual circumstances have been thought of brings peace of mind. And if something does go wrong and you have to make a claim, they are best placed to ensure you get a quick and accurate settlement.
The benefits for franchisors Simple, centralised and compliant; these
Why choose NFIB? NFIB are in the business of making life easy for the franchisor and will work side by side with you, your franchisee and your insurance broker to ensure the most appropriate cover is sourced for the business. There is no paperwork, no signatures required, no printing out and no faxing back. That’s the NFIB advantage. If you would like more information, contact Darryl Morris who is the Managing Director of NFIB on 1800 776 747 darryl@mynfib.com.au mynfib.com.au/
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e x pert a dv i c e
Fashion and Function When a Uniform isn’t Just a Uniform
Every day people all around the world wake up and get ready for work. Regardless of what industry they work in, or what their job role is, putting on a company uniform is part of their routine. And that routine sets the tone for the start of the day and our mindset, how we feel putting our uniform on, what attitude or feeling this process embeds as we get dressed. Does the uniform leave you feeling empowered, stylish, comfortable and excited to start your day? The importance of fashion and function in uniform and its direct impact on performance, attitude and perception is largely underrated. As someone who is obsessively passionate about the importance of what you wear to work, I feel compelled to shout out as often as possible – uniforms are not just uniforms they are so much more. Our purpose is to get companies and employees excited and passionate about their uniform. We consider ourselves uniform experts who can tell our clients brand stories through what their staff wear to work.
“Ensuring your uniform is made with a fit for purpose fabric that is durable, comfortable as well as tried and tested ensures uniforms look good for the long run, and staff feel comfortable in what they are wearing.” Pamela Jabbour | Founder and CEO | Total Image Group
Not only is an on-trend, fashion-forward uniform vital for reasons such as workplace culture, attitude and branding by then partnering this with function ensures the uniform is also comfortable, durable and fit for purpose. This combination is the formula for the perfect uniform range. We like to follow the below basics to ensure our client’s uniforms are the perfect combination of fashion and function.
Function comes from fabric and fit The biggest difference between fashion wear and uniform wear is in the fabrics and fit. Fashion fabrics are made for occasional wear, and uniform fabrics are made for everyday wear. Ensuring your uniform is made with a fit for purpose fabric that is durable,
comfortable as well as tried and tested ensures uniforms look good for the long run, and staff feel comfortable in what they are wearing. Unlike most fashion fits and styles that may just be worn to dinner or the movies, uniforms are worn for the entire day and in some roles like hospitality involve constant movement and activity. Adding a feature such as a small piece of elastic in the waist of a trouser or a box pleat to the back of a blouse will make a world of difference and ensure your staff are happy and comfortable when at work. TIP: Talk to the experts and ask for suggestions on the latest fabrics and fits that have been tried and tested in your industry. Don’t try and reinvent the wheel; if it works for others, it will work for your team.
Fashion comes from colour and coordination We put a lot of emphasis on colour. When designing a uniform, we want to ensure the colours chosen are flattering to all skin tones and body shapes, consistent with branding and stand out in the environment in which they are being worn. The colour scheme with uniform, like interiors, can make or break the design and take it from great to terrible very quickly. While brand colours are important, companies can get caught up in trying too hard to match the uniform colours to the
“Regardless of what industry they work in, or what their job role is, putting on a company uniform is part of their routine.”
64 Business Franchise Australia and New Zealand
“Not only is an on-trend, fashion-forward uniform vital for reasons such as workplace culture, attitude and branding by then partnering this with function ensures the uniform is also comfortable, durable and fit for purpose.”
primary brand colour - even if it is purple or orange. Tip: Understanding what colours are classic and working with these as the core basics and then layering or highlighting with your corporate colour will ensure a uniform that is on-trend, fashion-forward and won’t date. To ensure the entire look is complete companies need to tell the whole story from top to toe. If you spend time creating a look, it needs to consider all the factors. Will staff need a winter option? What trousers are they expected to wear? Is there a requirement for
a scarf or belt? There is no point creating a fabulous shirt or polo only to have it covered up by an employee’s jumper which is off-brand and does not communicate your brand story
of new each year will keep the uniform exciting and on-trend.
Fashion-forward uniforms are all about choice and giving staff the ability to mix and match and add their style. Creating a complete look with lots of different fit and style options ensures you can offer your classic core uniform pieces with a fashion piece that can change each year.
Pamela Jabbour is the founder and CEO of Total Image Group - Uniform designer and manufacturer to some of Australia’s leading brands such as Dan Murphy’s and Fantastic Furniture. With offices in Sydney, Melbourne and China, Total Image dresses over 300,000 Australians per day in their work wardrobe.
Staff will love the option to work with fits that better suit their shape or style and the element
Find out more information at: www.totalimagegroup.com.au
Business Franchise Australia and New Zealand 65
e x pert a dv i c e
Five Customer Service Mistakes that Drive Us Crazy
“How often do you review your procedures around customer service? Ensure you always involve your team to design service excellence; that way, they own the solution.”
Miscommunication and confusion cause a lot of wasted time when all of it is avoidable. Solution Make it a rule that a customer never has to contact you twice for the same reason, involve your team in developing the solution as they have the experience to fix the issues.
2
Knowledge
We all work hard for our money, so when it comes to spending it, we expect a certain level of customer service. We also should experience a real sense of appreciation for choosing one business over another. However, as many of us know, we don’t always experience this sense of appreciation, and that creates a degree of disappointment, why is it that they don’t seem to care that I selected them today? Whether it’s splashing out for a special dinner, buying a new car, or booking
in for a new haircut, we all face frustrating buying experiences that let us down. But it’s what businesses do about it that counts. From conducting hundreds of thousands of end-user phone-based surveys on customer experience across a range of industries, I’ve identified the five key areas that generate the most common complaints. These five areas reflect a very common thread; it doesn’t matter what you sell, the simple fact is, we all sell to people. Therefore, the same solutions apply across all types of businesses.
1
Communication
Communication is by far the most significant; calls or emails don’t go answered as expected, the frequency isn’t enough, and customers have to follow up with the business when it should be the other way around.
66 Business Franchise Australia and New Zealand
Lack of training and awareness of what’s required and not ensuring the responsibility of being able to give the correct advice leaves customers in a predicament they didn’t expect. These situations always have a negative impact, and a few wasted hours can be very expensive to a customer. Solution Train your team to have the experience required to be a champion of knowledge; make sure there is an experienced mentor to support them until they are competent. Then test their ability to be certain, if it’s still lacking go back to the training process as the issue is most likely around training.
3
Efficiency
The impact of being inefficient has a deep and lasting effect. This effect is often due to systems and procedures not being optimised. Have you ever been messed around from a bad process or attitude and in that
“Make it a rule that a customer never has to contact you twice for the same reason, involve your team in developing the solution as they have the experience to fix the issues.”
“We all work hard for our money, so when it comes to spending it, we expect a certain level of customer service.” Darrell Hardidge | CEO | Saguity
moment decided you aren’t ever going back? Think telcos, banks, energy and automotive companies. Solution You must have the ability to measure optimal efficiency and then predict how to achieve it. How often do you review your procedures around customer service? Ensure you always involve your team to design service excellence; that way, they own the solution.
4
Delivery
Delivery is often the last point of a transaction, and the real human experience from a company and many businesses fail to ensure their delivery team is clear on the vital importance of this touchpoint. Have you ever had a purchase where it all seems terrific and then at the very end the delivery process ruins your whole experience? Solution Train your delivery team to be the custodians of customer experience and understand their critical importance in being the face of the company. Provide basic sales and customer service training to all your delivery team. Make sure you check in on how well they are taking care of your customers
5
Price
There is one indisputable relationship around price - the relationship between service experience and the price tag. If your service experience is very high, customers are happy to pay a premium. If the experience is low, then it better be cheap or why else should I buy from you? Ask any person loyal to their hairdresser if they can find a cheaper one. The answer is always yes, but it’s the service excellence the keeps you there, otherwise, if the skill were comparable, you would choose the cheaper option. Solution You must become a value-driven customer service model to optimise revenue and margin; if you don’t, then it’s all about your price tag.
Research your customers to discover the key distinctions that define what they value about your company that has nothing to do with price.
always focus on the future to first ensure their customer returns. While this can be hard to deliver on, at least they know they’ll have loyal customers like you and me.
The most common complaints from customers are often quite easy to resolve. Most complaints could be easily avoided in the first place if the focus were on the outcome rather than being reactive to problems. I know a business that lives by the mantra ‘we haven’t mastered our service with a customer until they refer a friend to us’. This mantra is a true commitment to excellence as they
Darrell Hardidge is a customer experience strategy expert and CEO of customer research company Saguity, specialising in driving revenue growth from customer appreciation. Darrell is the author of The Client Revolution and The 10 Commandments of Client Appreciation. To find out more, visit www.saguity.com
Business Franchise Australia and New Zealand 67
PR O FI L E : franchising e x po
New look for the Franchising & Business Opportunities Expo in 2020 Reader special: Register to visit any Franchising & Business Opportunities Expo for FREE at www.franchisingexpo.com.au by using code BFM
Nothing can replace meeting face to face with people who can explain the ins and outs of their business venture
The industry’s premier event for prospective franchisees, the Franchising & Business Opportunities Expo, will have a fresh new look in 2020 plus new open days and new workshops. Researching a business opportunity can feel overwhelming if you’re faced with pages and pages of search engine listings – what you really need is someone knowledgeable to explain it to you personally. That’s why people have been coming to the Franchising & Business Opportunities Expo for over 30 years, to discover business ideas and meet the experts face to face. “It’s important to do some research online,
but nothing can replace meeting real people who can explain the ins and outs of their business venture,” says Exhibition Manager Fiona Stacey. “And visitors are often inspired by business ideas in industries they had never even considered!” Held in Sydney, Perth, Brisbane and Melbourne, the first Franchising & Business Opportunities Expo for 2020 opens 20-21 March at ICC Sydney in Darling Harbour. “ICC Sydney is a stunning venue, and we are looking forward to an action-packed show,” says Stacey. “Being at Darling Harbour means there are many options for public transport and parking, and the exhibition facilities are second to none.” Visitors to the show will not only benefit from meeting franchisors and franchisees on the stands, but also from listening to experts and advisors speaking in the free seminar program. 2020 will also see the introduction of new ‘be your own boss’ workshops.
68 Business Franchise Australia and New Zealand
The Franchisee Success panel sessions presented by the Franchise Council of Australia are always popular, featuring successful franchisees and franchisors. “Hearing from franchisees in person gives a great insight into the challenges and opportunities of owning a franchise,” adds Stacey. “They are very frank about their experiences – what has worked well for them, and what hasn’t!” Sydney’s show will be followed by Franchising & Business Opportunities Expos in Perth 3 May, Brisbane 19-20 June and Melbourne 21-22 August. For more information go to www.franchisingexpo.com.au
2020 Business Franchise Australia and New Zealand 69
h ot to pi c s
Behind the
headlines Franchisor faces $13m fraud trial ten years after company collapse The last of three former directors of failed whitegoods retail chain Kleenmaid is facing court for the fourth time following three aborted attempts to deal with charges stemming from the 2009 collapse of the whitegoods retail franchise, according to a media report Andrew Eric Young is the last of three directors to face court over the company’s collapse, with Young’s younger brother Bradley sentenced in 2016 to nine years jail for his role in knowingly operating the company while it was insolvent, and for defrauding the Westpac Bank of $13 million. Both brothers initially faced court together, but after his legal representatives withdrew, the court resolved to try Andrew Young later.
A rescheduled trial in 2017 in which Andrew Young represented himself, was aborted early due to “medical reasons”, while another trial in 2018 was similarly aborted after Mr Young applied for Legal Aid. The case is currently being tried in the Brisbane District Court and is expected to last up to eight weeks. Kleenmaid collapsed in April 2009 with debts of more than $100 million and left more than 6,000 customers emptyhanded after they paid deposits for whitegoods that were never supplied, making it the highest-profile collapse of a franchise system in a decade. The Kleenmaid brand has since been sold to new owners.
$2.6m franchise penalty reduced on appeal Automotive service franchise, Ultra Tune, has had a $2.6 million penalty for breaches
70 Business Franchise Australia and New Zealand
of the Franchising Code of Conduct reduced by more than $500,000, following a recent appeal, according to a media report. Ultra Tune appealed the January 2019 penalty which related to disclosure obligations and marketing fund statements and requested a review of whether it had breached the Franchising Code of Conduct. Following the outcome of the appeal, the business is reportedly considering legal action against external accountants and advisers who provided auditing services for the disclosure documentation.
Jump! franchisees re-join under a new operator Melbourne-based consortium Belgravia Group has acquired another 21 franchise agreements of the beleaguered swim school chain Jump!
in addition to the 40, they purchased in July, according to a media report. Belgravia bought the intellectual property and trademarks associated with Jump! after the chain was placed into administration in May. At the time, the Australian Competition and Consumer Commission (ACCC) was seeking injunctions, declarations, pecuniary penalties, and refunds from the previous owners for several franchisees who have not been able to open their businesses despite paying for their franchise up to two years earlier.
Round table forum for franchiseeowned networks on November 19 A round table forum for franchise networks in which the franchisees are the shareholders and ultimate owners of the franchisor will be held in Melbourne on November 19. It is estimated that about four per cent of the franchisors operating in Australia are franchisee-owned. These brands typically experience significantly higher levels of franchisee satisfaction and profitability compared to privately or publicly-owned brands. The November 19 forum is open to the leadership teams and directors of franchiseeowned brands. For more information, visit www.franchiseadvice.com.au
Loyalty programs under the microscope at Marketing Forum With the recent announcement that The Australian Competition and Consumer Commission (ACCC) will be focussing on poor practices in the management of customer loyalty programs, including unilateral changes and data concerns, the 2019 Franchise Marketing Forum program will feature a dedicated session on this topic. The highly-interactive Forum to be held in Brisbane on November 13, is the only event of its kind for franchisor marketing personnel to share their experiences and insights into the execution of effective marketing campaigns while leveraging often modest budgets and managing the input and interest of franchisee stakeholders. The program features case studies from franchise brands which are leaders in their respective market segments, expert panels and group discussions on current and topical marketing issues, including a detailed panel session on how to operate an effective and compliant loyalty program.
The Marketing Forum is the only professional development opportunity of its kind in Australia and New Zealand for the marketing personnel of franchise brands.
Harvey Norman to raise capital as recession buffer Listed furniture and home electronics retailer Harvey Norman has announced a $173 million capital raising as part of a strategy to pay down its consolidated entity debt of $626 million and protect the business against a sudden recession, according to a media report. Shareholders who participate in the new capital raising will receive one new share for every 17 shares they currently own. Harvey Norman chairman Gerry Harvey is reportedly convinced that a recession or depression will occur in future, and estimates that up to 20 per cent of retailers will go broke. The company reported an increase of seven point two per cent in full-year profit to $402.3 million for the 2019 financial year, much of which was derived from its overseas operations.
ACCC criticises disclosure failings The ACCC has found that food services franchisors commonly provide inadequate information to potential franchisees, including issues related to supply restrictions and “key unavoidable ongoing costs” such as wages, rent, and inventory. The 11-page report Disclosure practices in food franchising details findings from its most recent round of compliance checks in the franchised food services sector, where it audited 12 franchisors in response to public or industry feedback. The report also emphasised the importance of potential franchisees seeking independent professional advice before signing any franchise agreement and should walk away if franchisors are unwilling to provide contact details of former franchisees. The ACCC recently released new guidance for franchisors to assist in updating their disclosure documents.
Franchise expos change to Fri-Sat in 2020 The Franchising & Business Opportunities Expo will move to Fridays and Saturdays from next year to attract a more diverse mix of professionals and families. The expos are the only dedicated franchise
Jason Gehrke | Director Franchise Advisory Centre
exhibitions in Australia and have traditionally been held on Saturdays and Sundays. Dates for the 2020 expos in Sydney, Brisbane and Melbourne have now been released, with a one-day show to be held in Perth.
New disclosure guidance for franchisors The ACCC has released an updated model disclosure document to assist franchisors in completing their annual review and updating of disclosure documents as required by the Franchising Code. The ACCC has reportedly improved the model document by making it easier to read and understand; providing a recommended format which meets the requirement of the Code; and providing tips to assist franchisors in fulfilling their obligations. Disclosure documents for all franchises with a financial year ending June 30 must be updated by October 31.
Gig economy gives rise to “working homeless” The gig economy is creating a new class of “working homeless”, where workers generate an insufficient income to afford the high rents demanded in many cities, according to a media report. Advocates for the gig economy often cite benefits, including the flexibility for workers to work when, where, and if they want to work. Critics of the gig economy, however, claim that exploitation often occurs under the guise of flexibility with gig workers being underpaid and, being defined as contractors, not employees, therefore, being ineligible for sick pay and other benefits. www.franchiseadvice.com.au
Business Franchise Australia and New Zealand 71
ARE YOU READY TO DRIVE YOUR OWN SUCCESS? snaponfranchise.com.au
G L O B A L E X PA N S I O N We can help to put your franchise system in an operational position to attract successful franchisees. We are members of the IFA and other respected organisations. The transition process can be daunting, but we know the trusted business and legal players who can take you through the first minefield.
Our GLOBAL CONNECTIONS are trusted operators in their markets and will enable a smooth entry into NEW TERRITORIES.
With direct experience of the North American, UK and Australian/New Zealand Franchise markets we have been in the business of selling franchise systems direct to franchisees for over 35 years.
Constant changes within the codes of conduct can create a massive challenge to franchise systems wanting to move outside of their established markets.
For an initial discussion, please contact
globalpublishers@icloud.com
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TAILORED TO YOUR FRANCHISE’S UNIQUE NEEDS Manage sales, accounting, marketing, inventory, workflow, business management and more – all-in-one unbelievably flexible system that can grow as you grow. On-the-go access to all your franchise outlets Seamless collaboration between all sites and departments Ability to measure business performance in real time Simple, powerful, scalable, and easy to use Fastest customisation times in the industry Made for complex needs of a far-flung franchise operation
SEE HOW COULD POWER UP YOUR FRANCHISE To get our FREE EGUIDE: IS ERP RIGHT FOR YOU? Or book a no-obligation ONLINE DEMO – or just have a chat:
Level 6, 64 Marine Parade (Po Box 10857) Southport Qld 4215 P 07 5591 2522 F 07 5591 2511 Contact Sam Rees E sr@ippartnership.com.au www.ippartnership.com.au
A specialist Franchising and Intellectual Property legal and consulting firm, providing comprehensive advice for Franchisors from conception through to recruitment of Franchisees and ongoing management of the franchise. Clients receive expert, cost-effective advice on a collaborative basis with the firm taking great pride in its long term relationships with Franchisors. Expert advice and assistance is also provided to Franchisees buying & selling businesses as well as in relation to disputes.
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’.
Dandenong - 40-42 Scott Street, Dandenong, VIC 3175 Melbourne - 600 Bourke Street, Melbourne, VIC 3000 Brisbane - Level 16, 324 Queen Street, Brisbane, QLD Sydney - Level 21, 20 Bond Street, Sydney, NSW 2000 Phone: 1800 888 966
Macpherson is a commercial law firm focused on the mid market with offices in Brisbane, Dandenong, Melbourne and Sydney. For our clients, we are trusted business advisors as much as lawyers, with expertise in all areas of franchising. Our experienced team provides clients with strategic and insightful advice and make recommendations they can act on with confidence. We work on the full spectrum of franchising matters from establishing franchise systems and how they will work, drafting and reviewing agreements, acting on mergers and acquisitions, brand and intellectual property development through to management and enforcement, dispute resolution and other general commercial issues franchising clients may face. We keep abreast of emerging franchising issues and actions the ACCC are pursuing to ensure our advice is tailored to the business goals of our clients. Business Franchise Australia and New Zealand 73
f r a nc 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
HAIR SALON FRANCHISE
14 AU, 700 Internationally
$50,000
$250,000
$69,000 + Vehicle
HEALTH/ AGED & DISABILITY CARE
10
FCA
-
$80,000 - $120,000 (in partnership with the franchisor)
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
SOLAR SHEILDING NANOTECHNOLOGY WINDOW TREATMENTS
1
-
$26,000
$26,000
BEAUTY & LASER CLINIC
5
-
From $35,000 plus GST
$550,000 plus GST
IN-HOME AGED CARE AND DISABILITY SUPPORT
4
FCA
$70,0000
$150,000
FCA
site specific
$250,000 to $500,000
BATTERY WORLD Level 3, 203 Wharf Street, Spring Hill QLD 4000 Ph: 1300 793 209 Email: franchise@batteryworld.com.au Website: www.batteryworld.com.au/Franchise-Opportunities
BK’S TAKEAWAY 95 Princes Hwy, Trafalgar VIC 3824 Ph: 03 5633 2131 Email: admin@bkstakeaway.com.au Website: www.bkstakeaway.com.au
BOOST JUICE Chadstone Shopping Centre, 1 Tower 2, 1341 Dandenong Rd, Chadstone VIC 3148 Ph: +61 (3) 8593 45 46 Email: boostinfo@retailzoo.com.au Website: www.retailzoo.com.au/franchising-information
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
FRANCK PROVOST PARIS HAIR 706/100 William Street 2011 Woolloomooloo NSW Ph: 02 9331 5147 Email: partnerships@franckprovost.com.au Website: https://franchise.franckprovost.com.au/
HOME CARING 4/327 Woodpark Rd, Smithfield NSW 2164 Ph: 1300 875 377 Email: info@homecaringfranchise.com.au Website: www.homecaringfranchise.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
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 (Australian Industry $30,000 + GST Group)
NIRVANA BEAUTY LASER CLINICS Ph: 0413 564 565 Email: marc@nirvanabeauty.com.au Website: www.nirvanabeauty.com.au
NURSE NEXT DOOR 10 Oxley Road Hawthorn VIC 3122 Ph: 1300 010 247 Email: matt.fitton@nursenextdoor.com.au Website: www.nursenextdoorfranchise.com.au
PLUS FITNESS PO Box 76, Camden NSW 2570 Ph: 02 4648 2099 Email: franchising@plusfitness.com.au Website www.plusfitness.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
74 Business Franchise Australia and New Zealand
24 HOUR GYM
$65,000 + GST (incl Franchise Fee) + vehicle
FLEXIBLE WORKSPACE & CO WORKING SOLUTIONS
3,300
N/A
$50,000
$1M
HYDRAULIC SERVICE AND MOBILE CONNECTOR SPECIALISTS
120
-
$15,000
VARIOUS OPTIONS
FRANCHISE 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
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
FOOD - QUICK SERVICE RESTAURANT (QSR)
1354* (AU), 263* (NZ), 41,526* in 108 countries
-
AUD15,000 + GST (Australia), USD12,500 + GST (New Zealand)-
Site dependent
SPRAY PAVE AUSTRALIA GPO Box 501, Greenacres SA 5086 Ph: 1800 688 888 Fax: 08 8266 5360 Email: spraypave@senet.com.au Website: www.spraypave.com
SUBWAY SYSTEMS AUSTRALIA PTY LTD Level 1, 42 Amelia Street, Fortitude Valley QLD 4006 Ph: 1800 630 355 Email: australia_development@subway.com Website: www.subway.com.au
*as of 5 Sept 2019
SUPERGREEN SOLUTIONS FRANCHISING 161 Ingham RD, West End, QLD, 4810 Ph: 07 4772 7655 Email: franchise@ supergreensolutions.com.au Website: www.supergreensolutions.com.au
ENERGY EFFICIENT PRODUCTS
81 in 9 countries
FCA
$48,000 + GST
$85,000 Incl. Franchise fee, sign written, equipped van. + vehicle lease
LOTTERIES
Approx 4000
-
Varies dependent on state/territory
Varies dependent on state/territory
FCA, BFA
$40,000
$150K - $400K depending on size & concept
AWA
$40,000
Varies depending if vehicle needed
THE LOTT 87 Ipswich Road, Wooloongabba QLD 4012 VIC, TAS & NT – Tatts, Tatts NT – 07 3877 1095 NSW & ACT – NSW Lotteries – 07 3877 1118 QLD – Golden Casket – 07 3877 1117 SA – SA Lotteries – 07 3877 1096 Email: franchiseenquiries@thelott.com Website: www.thelott.com/franchisee
THEOBROMA, CHOCOLATE LOUNGES, PAVILIONS, BARS 3A Kia Crt, Preston VIC 3072 Ph: 03 9480 1030 or +61 431 727 004 Email: franchising@theobroma.com.au Website: www.theobroma.com.au
THERMAWOOD RETRO-FIT DOUBLE GLAZING PO Box 1007, South Melbourne VIC 3205 Ph: 04 555 55 330 Email: info@thermawood.com. au Website: www.thermawood.com.au
CHOCOLATE LOUNGES, 11 worldwide PAVILIONS, BARS
RETRO-FIT DOUBLE GLAZING
4 AUS, 42 NZ
A-Z Listings are a great way to promote your business r Franck Provost Paris Hai
Franck Provost This story began in 1975, when More than 40 years e. Franc in salon first his opened its brand have and family st Provo k later, the Franc ssional hair become a global leader in the profe s internationally. industry, with almost 700 hair salon CBD in 2008, today From a single salon in Sydney’s alia and counting as there are 14 salons around Austr ey to become the journ the nues conti st Provo k Franc brand. salon hair end highng leadi country’s
tive alternative to Franck Provost offers an attrac specifically in the that’s e …on rship owne hise franc feel beautiful! and look le peop ng business of maki their own lead rs owne hise franc st Franck Provo and rewarding business while living an exciting onment. lifestyle in a five-star beauty envir Jean-François Carré st.com.au E-mail: partnerships@franckprovo Phone: 0293315147 franchise.franckprovost.com.au
For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to: www.businessfranchiseaustralia.com.au Business Franchise Australia and New Zealand 75
F RA N C HISE a—z d i r ecto ry
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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Franck Provost Paris Hair This story began in 1975, when Franck Provost opened his first salon in France. More than 40 years later, the Franck Provost family and its brand have become a global leader in the professional hair industry, with almost 700 hair salons internationally.
Franck Provost franchise owners lead their own business while living an exciting and rewarding lifestyle in a five-star beauty environment.
From a single salon in Sydney’s CBD in 2008, today there are 14 salons around Australia and counting as Franck Provost continues the journey to become the country’s leading high-end hair salon brand.
Jean-François Carré E-mail: partnerships@franckprovost.com.au Phone: 0293315147 franchise.franckprovost.com.au
Home Caring Pty Ltd
The active franchisee partner manages the daily operation of the branch, sourcing new clients, ensuring existing clients’ needs are being met, recruiting and training care workers and managing a team of people.
Proudly Australian owned, Home Caring provides professional and compassionate personalised care services in the home and community and is seeking community minded franchisees who can build a solid financial future combining their local networks and the national marketing of the Home Caring and Dementia Caring brands. We are seeking high achievers, preferably with a health background, who want to make a difference in the community by providing excellent quality of care to clients.
business franchise australia and new zealand AUSTRALIA AND NEW ZEALAND
Franck Provost offers an attractive alternative to franchise ownership…one that’s specifically in the business of making people look and feel beautiful!
A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.
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
A comprehensive training program, ongoing operational support and a full suite of cloud-based business management tools assist with the growth and success of your home care business. Contact Bill Lockett for more information on: info@homecaringfranchise.com.au 0417 221 488
For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz
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
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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
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
Nirvana Beauty Laser Clinics Nirvana Beauty Laser Clinics is at the forefront of the beauty industry, committed to offering the most advanced technologies to clients. We are experts in advanced skincare, laser and anti-ageing treatments with over 20 years’ industry experience. At Nirvana it isn’t enough to follow the crowd: the franchise chain was one of the first in Australia to introduce revolutionary treatments such as Coolift and the lifting and tightening skin treatment HIFU. These treatments are bang on track with the trends for fighting the ravages of time through non-invasive anti-ageing processes.
Nurse Next Door Home Care Services With a core purpose of Making Lives Better™, Nurse Next Door provides in-home aged care and disability support services built on our philosophy of Happier Ageing® focusing on possibility rather than disability. Award winning systems, world class processes and operational excellence have enabled Nurse Next Door to become one of the fastest growing home care franchises in North America. Under the leadership of Melbourne based Master Franchisors Matt Fitton and Amber Biesse, Nurse Next
plus fitness Plus Fitness, an award winning Australian Owned Company has been operating since 1996. Having launched its 24-Hour Gym Franchise Model in 2011, Plus Fitness has sold over 300 franchises with gyms located in Australia, New Zealand, Singapore and India. The Plus Fitness franchise model is a ‘turn key’ solution that provides everything you need from gym equipment, aesthetic fit-out, extensive training and Franchisee support. The model operates in 250sqm to 650sqm premises and offers consumers 24hour access to all Plus Fitness
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.
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
Nirvana Beauty Laser Clinics is looking for focused and determined individuals who can springboard their personal success from an established franchise chain, and help develop the brand’s presence around Australia, and reap fruits of own input. Locations available: Westfield Miranda, Roselands, Westfield Chatswood, Castle Towers and other locations available! For more information please contact Marc Akil at: Phone: 0413 564 565 Email: franchise@nirvanabeauty.com.au Website: www.nirvanabeauty.com.au
Door has quickly penetrated the Australian home care market. The ‘Bold Pink’ brand is disruptive (check out the pink cars!) reflecting our unique approach to home care. With no requirement for a medical or healthcare background, we’re looking for people to partner with who have a tender touch and the tenacity of a bulldog. Take the first step to building a home care franchise business with heart. Contact Matt Fitton 1300 010247 matt.fitton@nursenextdoor.com.au
gyms around the world from only $13.95 per week, with a no lock in contract membership. Some of the benefits of a Plus Fitness Franchise; • Initial investment $250k to $500k dependent premises • All gym equipment included • Exclusive territories • Low staffing • Unrivalled franchise support • No industry experience is required • Winner of the FCA’s ‘Emerging Franchisor of the Year’ and Smart Company
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
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Ryco 24•7 RYCO Hydraulics is one of the largest hydraulic hose and fittings manufacturers in Australasia. The RYCO Trade Mark has been established in the industrial market for over sixty years and is a trusted name for quality products and service. RYCO 24•7 is a member of the Franchising Code Council Limited, which administers the Franchising Code of Practice. The RYCO 24•7 Mobile Connector Specialists franchises was established over twenty years ago
SNAP-ON TOOLS Snap-on Tools Australia & New Zealand is a mobile franchise operation putting high quality tools and equipment into the hands of mechanics, engineers, and other professional tool users across the country. Snap-on Tools is a subsidiary of Snap-on Incorporated, a leading global innovator, manufacturer of tools, diagnostics and equipment solutions for professional
SNAP PRINT & DESIGN Passion is the backbone to any successful business. At SNAP, our passions are print and building businesses. As part of our network, you’ll be supported by a team with the expertise and passion to see your business reach its full potential. Boasting a 120 year history in the print industry and with 40 years in franchising, SNAP is 100% Australian owned and operated. We have over 140 Snap Centres locally and we’re internationally franchised in Ireland, New Zealand and China.
Subway Systems Australia Pty Ltd Subway® offers a fresh alternative to traditional fast food.
and is a successful channel to market for the RYCO group. Target markets for RYCO 24•7 “product and services” being emergency breakdown and installation of hose and fittings to a large range of industries. Training is provided and conducted at RYCO’s design centre in Melbourne, or at the RYCO 24•7 Mobile Connector Specialists designated Service Centre. RYCO’s training packages meet a Nationally Recognised Standard and cover all aspects of the identification of hydraulic hose and fittings.
technicians, with an established network of franchise operations across the globe. After 30 years in the Australian market, Snap-on continues to perform, providing robust financial results for its network of over 175 franchisees. Extensive training and ongoing support is provided - no previous mechanical experience required. Snap-on offers an exclusive finance package to assist new franchisees.
SNAP is one of the most recognised brands in Australia with a reputation for fast, personalised service and high quality print & design solutions. SNAP caters to all business print needs, from marketing materials and business stationary through to signage. If you want to learn more about becoming part of our Multi Award Winning Australian Franchise network, we’d love to hear from you! Phone: 1300 810 233 Email: franchiseenquiries@snap.com.au snap.com.au
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
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*based on number of restaurants.
To secure your area, Call Sean on 07 4772 7655 or 0481167423 or Email franchise@supergreensolutions.com.au
the lott Join us at the Lott – Australia’s official lotteries! The Lott offers Australia’s official lottery games which Australians trust and love! We are one of Australia’s largest franchise networks with almost 4,000 franchisees operating across all of Australia, except WA. Our franchise system complements a range of businesses including convenience stores, convenience supermarkets, convenience fuel outlets, pharmacies, tobacconists, newsagencies, hotels and clubs (SA), and more!
Theobroma, Chocolate Lounges, Pavilions, Bars The earliest record of chocolate was over two thousand years ago in the central American rainforest where the tropics is the ideal climate for the cultivation of the plant from which chocolate is derived, the Cacao Tree, Latin name “Theobroma Cacao” or “Food of the Gods”. The concept was developed in response to the spiraling demand of high quality chocolate and chocolate beverages with the added enhancement of a full food menu, with some stores even offering a licensed venue.
Incorporating the Lott in your outlet could be more attainable than you think. If you would like to find out more information, contact us on the contact details below! The Lott Thelott.com/franchisee Email: franchiseenquiries@thelott.com Phone: VIC, TAS & NT – Tatts, Tatts NT – 07 3877 1095 NSW & ACT - NSW Lotteries – 07 3877 1118 QLD - Golden Casket – 07 3877 1117 SA - SA Lotteries – 07 3877 1096
Our franchise offers: • Innovative and unique concept that includes all of life’s pleasures- chocolate, coffee, food, alcohol and retail. • Highest quality chocolate products. • Full training provided. • Professional support team with a range of skills to assist you. With new stores opening in countries across the globe, be part of something special. Contact Ben on +61 431 727 004 E: ben@theobroma.com.au www.theobroma.com.au
Thermawood
Become part of the success story with:
Thermawood Retro-Fit Double Glazing System is designed to retro-fit double glazing into existing wooden windows. Proven systems and processes with the Thermawood Patented drainage system.
• Full Training and ongoing support • Strong industry Growth • Full Advertising & Marketing • Patented product new to the Australian Building industry. We are looking for passionate self-motivated people to join the Thermawood team.
Retro-Fitting fitting double glazing into existing wooden windows allows the home owner to retain the character of their windows, be more energy efficient, reduce energy costs and reduce noise.
Please contact Thermawood Retro-Fit Double Glazing for more information.
Along with installing double glazing Thermawood installers also fit draft/sound seals to all types of windows including double hung windows, casement windows and doors.
Info@thermawood.com.au www.thermawood.com.au 0455 555 330
Wollermann Franchise Developments
names. We have also developed expansion strategies for multi-national companies and worked with international networks to enter the Australian market.
• We are a “one-stop shop” business expansion consultancy. • We create tailor made business strategies specifically for you and your industry. • Our team has a 25 year track record.
We have a strong 25-year track record in the recruitment of new franchisees and selling existing franchised businesses – Australia wide and taking Australian companies international.
Our experienced and passionate consultants provide business viability plans, franchising and licensing expansion strategies, legal documentation, operations manuals and franchise recruitment. We have assisted small companies to become household
business franchise australia and new zealand A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.
Want to discover the best methodology to grow your business? Contact Colin Crawford our National Franchise Manager: FREECALL 1300 249 276 FROM OVERSEAS +61 3 9999 5488 www.franchisedevelopments.com.au
For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz
AUSTRALIA AND NEW ZEALAND
Business Franchise Australia and New Zealand 81
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
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AN INNOVATIVE NEW INVESTMENT OPPORTUNITY TO FRANCHISE WITH REGUS