TRENDING FRANCHISES
VOL 15 ISSUE 04 MAY/JUNE 2021
‘IT’S ALL ABOUT PERSONALITY’
COULD YOU BE BEDSHED’S DREAM FRANCHISE PARTNER?
WILL I OR WON’T I?
TRENDS INFLUENCING FRANCHISING DESISIONS
TRENDING FRANCHISES:
EMBRACE CHANGE TO STAY STRONG
SERVICE, MOBILE & MORE
FRANCHISES ON THE RISE
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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 CGB’s website also provides an additional advertising and information format and complements our publications.
www.businessfranchiseaustralia.com.au
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CONTENTS
42
On the Cover 42 Cover Story: ‘It’s All About Personality’ Could You Be Bedshed’s Dream Franchise Partner?
54 Expert Advice: Will I Or Won’t I? Trends Influencing Franchising Decisions 44 Feature Article: Trending Franchises: Embrace Change to Stay Strong 50 Expert Advice: Service, Mobile & More: Franchises on the Rise
46
40 What’s New: Announcements from the Industry
42 Cover Story: ‘It’s All About Personality’ Could You Be Bedshed’s Dream Franchise Partner?
44 Feature Article: Trending Franchises: Embrace Change to Stay Strong 46 Expert Advice: Growing Franchise Trends Brian Keen, Founder, Franchise Simply
48 Profile: The Lott: What’s Almost as Good as Winning the Lottery?
48
Selling the Winning Ticket!
50 Expert Advice: Service, Mobile & More: Franchises on the Rise Kerry Miles, Director, FranchiseED
52 Snapshot: Fantastic Services: Franchising Provides Stability in an Uncertain Climate
54 Expert Advice: Will I Or Won’t I? Trends Influencing Franchising Decisions Robin La Pere, Franchise Consultant, No Ordinary Businesses and Franchises
56 Expert Advice: The Legal Franchise Landscape: Navigating Franchisor/Franchisee Relationships
50
Robert Toth, Accredited Commercial and Franchise Law Specialist, Marsh Maher Richmond Bennison Lawyers
58 Snapshot: GeckoSports: Meet GeckoSports Franchisor Kim O’Donnell
A regular of Business Franchise Magazine, our special supplement in franchising showcases a different industry each issue To share YOUR SPECIFIC EXPERT INDUSTRY ADVICE or to FEATURE YOUR FRANCHISE in the next issue, please contact: Vikki Bradbury Phone: 03 9787 8077 Email: vikki@cgbpublishing.com
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what’snew! GOTCHA LEADING THE WAY IN PREMIUM BUBBLE TEA TECHNOLOGY Gotcha Fresh Tea, Australia’s most unique, premium bubble tea brand, combines the entrepreneurship and innovation of founder Roger Fu to deliver a unique, luxury bubble tea experience and a fast-growing franchise trend. Employing his smarts as a mechanical engineer and industrial designer, Fu has designed a tea brew and quick shake machine that will cool hot tea to a chilled bubble tea in 0.5 seconds, crucial to maintaining the strong fresh leaf flavour that other tea brands lack. The machine is considered the Ferrari motor of bubble tea making and Fu expects this to revolutionise the industry. Respectively bringing together Western and Eastern tea cultures, each refreshing beverage is freshly brewed and cooled to order, using only full leaf tea, selected from notable high altitude tea plantations. Gotcha Bubble Tea is focused on delivering a high-quality experience for all their customers. Channelling the look and feel of a luxury fashion brand, Gotcha Bubble Tea stores are tea salons with banquettes, soft lighting and heightened glamour. With innovation always brewing, Gotcha is the first Australian Bubble Tea store introducing eco-friendly paper cups and paper straws into stores this year. With 15 stores slated to open in 2021 alone, new technology to cool down a steamy hot beverage and plans to start bouncing into new and international markets, Gotcha is set to redefine the bubble tea world. www.gotchafreshtea.com.au
WORLD’S LARGEST PILATES BRAND OPENS FIRST STUDIOS IN AUSTRALIA Club Pilates have opened their first three studios in Australia, bringing the leader in Pilates to life across three locations: Sippy Downs, Brisbane Metro North, and their first franchised location in Noosa. Club Pilates is set to benchmark the Pilates experience in Australia by delivering a premium studio experience, world-class equipment and the highest qualified instructors in the country. The Club Pilates Australian Master Franchise Agreement was signed in February 2020 and marks the 11th country the brand will operate in. The brand has almost 700 locations open across the globe and are part of parent company Xponential Fitness, a curator of leading fitness brands across each vertical in boutique fitness. “We are honoured to be part of a global brand that has the heritage to provide franchisees with such an established executive model. It’s a world-class franchise offer in terms of education, marketing, sales capability, and operational excellence,” said Club Pilates Australia CEO Brendan James. Founded in 2007, Club Pilates is the largest Pilates brand by number of studios, designed with the vision of making Pilates more accessible, approachable and welcoming to everyone. Based in Irvine, California,
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Club Pilates has appeared in both Entrepreneur Magazine’s Franchise 500, Fastest-Growing Franchises, and Inc. Magazine’s Inc. 5000 lists five years running. Club Pilates offers extensive training certification for its instructors. Its 500-hour training program includes instruction on Pilates, barre, Triggerpoint, and TRX Suspension Trainers. www.clubpilates.com.au
STAGECOACH MEETING DEMAND FOR CHILDREN’S RECREATIONAL AND PERFORMING ARTS
With lockdowns lifting and life slowly returning to normal, Andy Knights, COO of children’s services franchise Stagecoach Performing Arts says that parents are understandably keen to reintroduce their children to their usual routine and make up for any lost learning caused by school closures—making the demand for after-school clubs and classes higher than ever. “Stagecoach Performing Arts has been delivering singing, dancing and acting sessions to children around the globe for over 30 years. Now, 21 years on from the launch of our first Australian franchise, the need for a creative and liberating outlet for young people is more apparent than it’s ever been. “Over the last year, our children have missed school and have had no choice but to forgo social occasions with friends that are so important during childhood and early teen years. For them, routine, familiarity and independence to explore their own passions will provide some sense of certainty. Studies have also proven that, by regularly attending interactive group activities, like our singing, dancing and acting sessions, a child’s ability to learn in a traditional schooling environment increases.” As a testament to the need for children’s fun and engaging afterschool activities, Alison Tasker, owner of a Stagecoach Performing Arts franchise in Perth South, has launched a new territory, bringing Stagecoach to the busy suburb of South Fremantle. In addition, the latest Sydney franchise territory—for which Stagecoach is currently in the process of recruiting a franchisee—is already gaining a significant amount of interest. Prospects are keen to invest in trusted, established children’s services providers to fulfil this high-demand area. www.stagecoachfranchise.com
SPEEDFIT SUPPORTS FRANCHISEES WITH NEW PART OWNERSHIP MODEL Australia’s largest EMS (electronic muscle stimulation) personal training franchise company, SpeedFit, will offer new franchise owners an opportunity to get into the market with a unique, part ownership model, designed to help boost small business ownership in the wake of COVID-19. Talking about the offer, Matej Varhalik, CEO and cofounder of SpeedFit, said: “We know our model works so we have decided to reduce the barriers to entry for those interested in running their own business in the health & wellness space, and will provide the necessary training and education to help them succeed.” Prior to announcing the national offer, SpeedFit trialled the partownership model at theirKotara, New South Wales location. Amy Hart, co-owner of SpeedFit, Kotara, said: “A few years back I was carrying some major injuries and found nothing worked for my rehabilitation until I tried SpeedFit. I was not only blown away by the results but the entire, personalised experience and soon became a studiomanager.” “I soon realised that what I really wanted was to own my own SpeedFit studio so I approached Matej and asked if there was any way we could make it happen. I was upfront about the fact that I couldn’t afford to buy a franchise on my own but instead of saying, ‘no’, Matej said, ‘let’s work something out’. “The part ownership model works perfectly for me right now and fits into my plan to not only one day have 100% ownership but also open a few more studios.” https://www.speedfit.com.au
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C OV ER STO RY: B e d s h e d
‘IT’S ALL ABOUT PERSONALITY’
COULD YOU BE BEDSHED’S DREAM FRANCHISE PARTNER? Bedshed - one of Australia’s largest specialist mattress, bedding and bedroom furniture franchises with a network of 37 stores across the country – celebrated 40 years in business last year. In this issue of Business Franchise magazine, we put our feet up with Bedshed National Business Development Manager Greg
Prussia to find out what makes it such a trusted brand.
Bedshed is a trusted brand with great national recognition. What makes the brand such a powerhouse? Hands down it’s the people! From the team at central office to our network of franchise partners, there’s an incredible sense of camaraderie between everybody, a feeling that we’re all in it for one. There’s no “Us” and “THEM” like I’ve experienced with the other franchise networks, it’s “WE” at Bedshed.
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We’re always seeking ways to keep our franchise partners happy by involving them in the evolution of our brand and finding ways to increase their profits. And when you have a happy franchise partner, you have happy staff and happy customers resulting in a well performing store. When customers come into a Bedshed store, it feels like a family environment where they can trust they’re not going to be ‘sold’ to, just looked after and given the best information and advice. By building strong relationships at all levels, we have been able to build that all important
Tell us about yourself and what your role involves. As the National Business Development Manager, I recruit new franchise partners for Bedshed. I take prospective franchise partners through the whole seven-step due diligence process, quantifying them every step of the way, making sure we are a good fit for each other. Before joining Bedshed, I did my own due diligence on the brand. I felt my morals had to be strongly aligned with where I worked and I wanted to be sure this was a brand I could really believe in; one that had a great story to tell. I spent some time looking at their financials, P&Ls, and talked to a few franchise partners. After doing that, I couldn’t wait to start! After doing my due diligence, it makes sense why Bedshed have had only one franchised store up for resale in the last nine years and why there are still franchise partners in the network that have been there since the 1980s.
If you had to describe what you look for in a Bedshed franchise partner using just one word, what would it be? To sum up that attribute in word? It’s got to be personality! Our ideal franchise partner is the kind of person that attracts other people. We all know those people in social situations who everyone just gravitates towards because you feel like you trust them and you want to hang out with them.
So, when we look for new franchise partners, we’re really looking to see if their personality fits with our brand, and ours with theirs. You can teach product knowledge and everything else to do with business, but you can’t teach personality. I believe that people buy from people and if we put someone in the role who has all the knowledge needed but isn’t easy to talk to, or they try too hard to ‘make a sale’, they can’t build trust with the customers resulting in fewer sales.
Last year Bedshed celebrated 40 years in business by evolving the brand. One recent development was the introduction of an online e-commerce store. How have online sales impacted your franchisees? We’ve had complete buy in from our Bedshed franchise partners and it’s been amazing for them financially! Say a customer spends two-grand on some new bedding overnight on our e-commerce store; the customer chooses the store they wish to purchase it from, that sale goes through, then all our franchise partner needs to do when they arrive in the morning is process that sale and arrange delivery – and best of all, all of that revenue goes straight to the store. I’ve never seen an online store where 100% of sales goes straight to the franchisee. During Covid, when people were mostly shopping from home, the online store really showed its true potential. In fact, in 2020 - when we had most of our Victorian stores shut for three months - we had our best financial year ever!
HANDS DOWN IT’S THE PEOPLE! From the team at central office to our network of franchise partners, there’s an incredible sense of camaraderie between everybody, a feeling that we’re all in it for one. There’s no “Us” and “THEM” like I’ve experienced with the other franchise networks, it’s “WE” at Bedshed.
What training and ongoing support do you provide franchisees? We provide pre- and post-opening training which includes product and sales training. In fact, our new sales training course “Setting the standard of excellence” is a bespoke sales course designed specifically for Bedshed which arms our sales staff with the tools needed to build trust and close sales. We have retail managers in each state that are always there to provide ongoing daily, weekly and monthly support. We also host yearly meetings and organise overseas trips to international trade shows throughout Asia, Europe and North America. We also visit the manufacturers that build our furniture, to involve the franchise partners in decision making when it comes to furniture that they’ll be selling. I find it refreshing that the franchise partners are involved in deciding big issues like what furniture we sell in store. And why shouldn’t they be involved? It means they are more invested in the product which, in turn, helps build that all-important trust with customers.
Taking the next step Have a question about becoming a Bedshed franchise partner? Just want to have an initial conversation? Contact Bedshed’s National Business Development Manager, Greg Prussia 0447 891 158 or email gprussia@bedshed.com.au
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trust and maintain that strong brand for over 40 years.
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FE AT U R E A R T I C L E
TRENDING FRANCHISES:
Embrace Change TO STAY STRONG
Although franchising as a business model didn’t become a major trend in Australia until the 1970s, it didn’t take long for that trend to grow roots and turn into something more—a tradition. Half a century on, and franchising is now the norm; according to the 2016 Franchising Australia survey, there are currently more than 1,100 franchise systems and approximately 79,000 franchise units in Australia, contributing on average $144 billion to the Australian economy each year
and generating almost half a million jobs. And while many franchises have taken a beating this past year due to the global pandemic and subsequent hit to the economy, a remarkable number of franchises were able to get back up, dust themselves off, and become stronger than ever.
The hottest trend? Resilience! Franchises that are showing resilience in the face of adversity are the ones that have embraced new trends to stay relevant. The ones that have adapted new systems and protocols to keep customers safe, for example, or the ones that have embraced online alternatives to in-person services, or the ones who see future demand for sustainable products and react to meet this need—these are the franchises that are
ensuring their franchising system continues to be a trending, relevant one. Many of the changes we have seen in the past year to the way businesses operated were adapted virtually overnight. Some had already been developing over many years; developments like cashless payments, e-commerce stores and home delivery for a wide cross-section of takeaway options have been the norm for some time now. But other developments like QR scans, hygiene stations and social distancing were sudden and reactive. But after sorting out the initial teething problems, franchisors who rallied to quickly react to, and implement, these changes were able to adjust, adapt and survive. The pandemic also opened up opportunities for some franchises and demonstrated how quickly franchise systems can respond quickly to unexpected change. When considering a resilient franchise, take a close look at the ones that have been thriving during lockdown and examine what innovations they introduced and how they managed their business, their people and their future strategies during that tumultuous time.
Franchisors looking to the future Looking to the future, many of these changes are likely to stick around. Customers are likely to continue to appreciate the convenience of home shopping from an online store, menu ordering apps, mobile repair services and increased hygiene and safety standards in home care, health, beauty and fitness services. Over the past year, many franchisors have also been stepping up to support
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FE ATUR E : T R EN D I NG FR A NCH ISES their franchisees. In a Franchise Council of Australia (FCA) survey, 94 percent of respondents provided examples of the support their franchise networks offered during the pandemic, including direct and indirect financial assistance to help with navigating changes in business regulation. The good news is this seems like a trend that will continue well into the future as franchisors and franchisees realise the benefits of a strong support network in building resilience and longevity. The franchises that pay attention to trends by listening, observing and reacting to the needs of their franchisees and their customers are not only making sure their business stays afloat during changing times, they’re building the business traditions of tomorrow.
Tips for Choosing a Trending Franchise Whatever kind of franchising opportunity you are considering, keep in mind these important tips before making any big decisions on your franchising future. Some business ideas are here today, gone tomorrow. Taking a risk on investing in a shiny new business proposition can be rewarding, but risky. If you are looking for a trending franchise that offers a safer investment, look for a franchise that has an established track record balanced with a keen understanding of business trends. For example, it might be traditional retail store with household brand name recognition, but one that also offers automated online sales. A key piece of advice for all new franchisees is to thoroughly conduct due diligence. This is especially true if investing in an up-and-coming trending franchise. Do your homework,
carefully read the Franchise Disclosure Document (FDD), attend networking events and discovery days, and talk to other franchisees. Learn what fees, licensing and royalty arrangements are in place. Don’t be afraid to ask lots of questions. A franchisor with a reputable business proposition with established processes in place should be able to answer all your questions, confidently. Does the business have longevity? Are the trends they are implementing value-adding to the longterm profitability and trustworthiness of the brand? Again, what you do with the answers to these questions depends on what kind of investment you are seeking. If you are up for a risk and looking for a franchise that will turn a profit in a short space of time, a ‘trendy’ franchise like a fun and quirky food franchise (think Kramer of classic TV sitcom Seinfeld’s out-there business idea of a “pizza place where you make your own pie!”), may be just the ticket. But if you are looking for a franchise with at least a five-to-tenyear commitment, consider whether the product or service being provided will still be popular or in demand far down the track.
Franchising trends on the move Here is a snapshot of some of the kinds of franchises that have showed resilience during the pandemic and look set to continue in popularity:
Mobile Services From food trucks to food delivery, and from auto repairs or computer repairs, more service providers are tapping into the demand for services that head straight to the customer rather than the customer travelling to a bricks-and-mortar location. Born out
of necessity over the past year as people and businesses were forced into on-and-off lockdowns, the simple convenience of having a service provider come to you to you is not a trend that is likely to disappear.
Going Green As climate change and other environmental issues continue to remain front-of-mind for many customers, particularly millennials, franchises that are invested in green processes or products that help reduce our carbon footprint are rising in popularity. Some franchises are focused on zero-waste, by introducing products that recycle and reduce waste like long-term, repeat-use cutlery, toiletries and cleaning products. While other franchises are specialising in solar panel installation or window doubleglazing to improve house insulation.
Pets and Kids In a simple case of supply and demand, franchises that cater to both children and the beloved family pet are making an impact. Far from being the ‘special treats’ or ‘nice to have’ services they were in the past, people are increasingly demanding high-quality services for the special ones in their life. Parents are spending more on their children’s education through personal tuition franchises, investing in health through kids’ sports groups and play centres, and seeking only the best in day care providers. Puppy parents are also keen to spend big on day care as well as pet training and pet grooming services.
Explore all franchise opportunities — from traditional to trending — in the Business Franchise directory: https://www.businessfranchiseaustralia. com.au/directory
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GROWING FRANCHISE TRENDS Business never stands still does it? Especially today with fast communication systems making us all aware of what is being done by everyone else and using those ideas to build new ones of our own. And the changes and innovations seem to be coming faster and faster each day. Having been involved with franchised businesses since the 80s, I have seen how
businesses passing my door reflect the latest changes. From face-to-face interaction, landline phones and snail-mail to today’s communication systems with mobile, text, email, websites, social media, chat bots, cloud-based storage, and software capable of doing almost anything. But I have to say the biggest shift has taken place over the past five years culminating in the swift uptake over the last year disrupted by COVID. Who would have known I’d be teaching my 70 and 80yr+ running mates how to use Zoom for our weekly meetings? My first introduction to the way the digital era impacted on business was in the early 90s when we brought a new concept business into Australia from the US – Expense Reduction Analysts. At the time we needed white collar franchises to appeal to the many government and big business
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employees being made redundant and this cost-reduction consultancy was just right for this group. Right too, was the early intranet we built to house our growing prospect and franchisee database and chat line. Even though we sometimes had to wait overnight for our first emails to be delivered from Perth to London via North America as they were routed then. Still faster than snail-mail. Ten years ago, even though Franchise Simply was established as a digital business, I was still dealing with business people trying to create a franchise group based on their norms: unwieldy PDF-based operations manuals which were never used and never updated; accounting systems based on early software that was too complex to be used in-house; brash, emerging websites and social media marketing not at all suited to most consumer taste. The list goes on.
Brian Keen | Founder | FRANCHISE SIMPLY
preparing easy-to-use, intuitive, cloud-based operations manuals he knows his franchisees and staff will use because the systems are closely integrated into his training and support. Improving efficiency, giving better service and increased ROI. Probably the most sophisticated use of digital management I have seen is associated with another client of mine, Earworx. Based in Hobart, Earworx was expanding fast just before COVID hit and they needed to be able to interact with franchisees and their staff throughout Australia as the rules changed overnight. Fortunately, they had already set their operations up in our software, FranSystems, so the training base on how to conduct most ear treatments and how to run their rooms and businesses were in place. What they were able to do then was practice by practice, issue-specific COVID instruction overnight as each State brought in new rules, keeping everyone safe and legal and being able to help clients in need without disruption.
Today, this cohort just doesn’t exist. Even before COVID, our client base had become younger and more interested in digital management systems. Take Jason Graham from Blockout Blinds in Melbourne for instance, who was starting to digitise and automate his total sale and supply line, releasing his current staff from much of the admin work they used to do. His clients order online, put in their measurements for each blind chosen and make the payments. These blinds are then ordered automatically from the manufacturer. Jason’s franchisees will now just visit the site to check measurements and to install or supervise installation by a subcontractor. Of course, they are in touch with the client to make sure that warm human face and voice are there to keep the relationship going. Needless to say, Jason is
Earworx continued to open new franchised outlets throughout last year through the heavy interstate travel restrictions by extending their operations to include sections on how to set up a new practice. The equipment and stock to purchase, how to set it up, how to establish email, phone, SMS and other communication systems for booking and general contact. They also set up their Franchisor support systems and the way they would monitor how each practice was performing – all to the finest detail. What this means today, is that whilst it is preferred that the initial franchisee induction training is held face to face, much is done remotely. They tell us the ability to be able to make these changes so fast using digital systems already in place saved their business through COVID. The experience has shown them better ways to do so many things that it has changed their business model dramatically resulting in improved patient service and higher margins. An enviable outcome. There are so many reasons for making the move to running a franchise by using good, easy, intuitive digital management systems.
Probably the most important is the need to attract millennials into your group as customers, staff and as franchisees. Attracted to modern businesses, this group is becoming more and more important to every business out there and if you can’t attract them, your business is probably not viable in the midterm. So, yes, the digital revolution is upon us and needs to be embraced. The thing is, however, going digital is not easy. I have seen so many businesses which have attempted to make the change, spent so much on bringing in expensive software only to find everyone is drowned in administrative tasks just keeping the software going. So, their staff and franchisees don’t look after the admin, and they find other ways to manage their work their own way which is not trackable nor consistent and lets the side down. It takes planning, and a ruthless mind which will only accept software that is absolutely essential to get the job done simply and intuitively. Alongside this there needs to be brutal execution, training and support to make sure everyone is on board and follows the system. All done remotely, of course, and in a way that will feel friendly and warm and full of human contact. And, like NASA’s famous moon-shot, an astute franchisor recognises that IT tuning is a constant. As a reminder, Scott from Earworx tells me they are implementing more tweaks and innovations even as I write this. 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. www.franchisesimply.com.au brian@franchisesimply.com.au
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“Having been involved with franchised businesses since the 80s, I have seen how businesses passing my door reflect the latest changes.”
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PR O FI L E : T H E LOT T
What’s almost as good winning the lottery?
SELLING THE WINNING TICKET! For The Lott’s retailers, being a franchisee with one of Australia’s largest retail franchises brings a range of benefits – from ongoing operational and technical support through to receiving a commission from the sale of lottery products. But for the hundreds of outlets that sell a division one winning entry each year, the highlight is playing a part in changing their customers’ lives. For many Aussies, winning the lottery is a once-in-a-lifetime, dream-come-true experience, but according to some of The Lott’s retailers, selling the winning ticket is equally as rewarding. The Lott’s retailers receive a commission for every lottery ticket they sell. While they don’t receive any additional commission if one of those tickets wins division one, franchisees are more than happy to bolster their outlet’s reputation by being associated with big prizes. General Manager Lotteries Retail Antony Moore said for some outlets, selling a major prize was just as exciting as if they had won the prize themselves. “For many of our outlets, selling a major prize is a dream come true, and the excitement never fades; whether it is the first time they’ve sold one or the tenth time,” he said.
“Hearing that one of our customers had won division one put a smile on the faces of the entire team! Being able to play a part in changing someone’s life is pretty exciting!” – Rod Hurley, Waterfront News
“Wonderful! It was just as good as if I’d won the lottery. Excitement all around. Fancy being able to hand over a two million dollar ticket to somebody!” – Hope Waters, Robertson Newsagency While retailers were happy one of their customers had won the big prize, Mr Moore revealed they were equally ecstatic when that customer was a regular visitor to their outlet.
“It’s even more special when they are regular customers who go out of their way to visit our store. When they came into the store, we got to congratulate them and share some bubbles and a few tears of happiness and joy! This is life-changing for them, and we are so happy for them!” – Lyle Reilly – Mount Cotton Road News “The customers are so happy for our town and the winner, of course! The community is very tight, and good news like this is so welcomed. The customers are not too disappointed that it’s not them, just really happy that the win has come to Gundagai.” – Penny Nicholson, Gundagai Newsagency
A recent survey found 63% of The Lott outlets believed selling a division one or major prize winning ticket had increased their reputation among existing and potential customers as a “winning store”. “To help our retailers share the amazing news they are a division one winning outlet; we provide a range of support, including digital and print promotional collateral,
media campaigns and a permanent plaque for them to display,” Mr Moore said.
“Our customers are always happy to share in the news of a division one win. It cements in their minds that dreams can come true in this outlet.” – Peter Drever, Bacchus Marsh Newsagency “We have such a great community of customers that I know all of them will be as equally happy for us to sell a division one prize as they will be that a local won.” – Nathaniel Henderson, Burnt Bridge News & Lotto
The home of Australia’s Official Lotteries, The Lott operates and markets Australia’s leading lottery games customers know and love creating everyday winners, winning every day. Last financial year, more than 104.9 million winners took home more than $3.45 billion in prize money from their favourite games at The Lott, including Saturday Lotto, Monday and Wednesday Lotto, Powerball, Oz Lotto, Set for Life, Lucky Lotteries, Keno, Super 66, Lotto Strike and Instant Scratch-Its. In the 12 months to 30 June 2020, Australia’s Official Lotteries contributed more than $1.4 billion via state lottery taxes and donations to help community initiatives, such as hospitals, health research, disaster relief and education. www.thelott.com
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SERVICE, MOBILE & MORE FRANCHISES ON THE RISE
“In retail, it’s all about the brand, as it’s the brand which helps attract people to the store, so when assessing a franchise business, you need to look for exceptional marketing strategies.” Kerry Miles | Director | FRANCHISE ED
As Australians settle into our ‘new normal’ at least for the foreseeable future as a result of the global COVID-19 pandemic, there are some clear trends emerging - in life, as well as franchising. Lockdowns, extended periods away from loved ones, as well as forced changes to the way we work or transition out of work has led to people reassessing their lives and what is really important to them. Further, the rapid adoption of technology and more flexible work arrangements has
created a greater focus on lifestyle balance. With people working from home, online shopping has increased significantly, as has the use of delivery services. Pet ownership has also sky rocketed. As with any economic downturn there has been an increase in redundancies. However, rather than jumping back into the daily corporate grind people are looking for opportunities that align with their personal values before deciding on their next move. This trend translates through to the type of franchises we are seeing people looking to invest in through the Australian Franchise Marketplace, and those franchises that have performed strongly over the last 12 months.
Service and mobile franchises While some industries are outperforming others across the franchise sector, a clear
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trend which crosses across a range of industries is the rise in service, and in particular mobile franchises. One of the appeals of these types of franchises is the lower start-up costs. When investing in a retail franchise, there are usually fit out and on-going leasing costs which can significantly add to the cost of a business, whereas with a mobile franchise you have the initial vehicle fit out costs, which are generally lower, and no on-going rent.
Home handyman and home renovation With people spending more time in their homes, home improvement-related franchises have performed extremely strongly over the past 12 months. One franchise I was speaking with last year mentioned they had seen sales increase by 1000% year on year across their stores. With a number of businesses adopting more permanent flexible working arrangements this trend is likely to continue.
Aged care, mobile nurses and alternative health therapies Our ageing population, in conjunction with a greater focus on health and increased preference to avoid places where we may be
conjunction with a greater focus on health and increased preference to avoid places where we may be exposed to illness are all contributing to an increase in demand for a range of franchises offering in-home care and support services.”
“From dog training, grooming, walking services, vet services, pet products and more - with an explosion of pet ownership comes an explosion in spending associated with pet ownership.”
exposed to illness are all contributing to an increase in demand for a range of franchises offering in-home care and support services. The focus on health is also leading to an increase in preventative and maintenance treatments across a range of alternative therapies.
Cleaning franchises It’s no surprise there has been a rise in demand for cleaning franchises, particularly industrial cleaning, as deep cleans become part of the new norm for businesses.
Pet care franchises From dog training, grooming, walking services, vet services, pet products and more - with an explosion of pet ownership comes an explosion in spending associated with pet ownership. Coupled with this trend is the continued rise in pets being substitute babies. Expenditure in this industry was already rising steadily before the pandemic. However, now we see not only the demand for designer puppies increase, but also animal shelters receiving a ten-fold increase in demand.
Food franchises Food franchises are still popular, despite the impact of COVID-19 on some outlets. People are still becoming increasingly reliant on purchasing meals prepared outside the home, and with home delivery widely available, the industry has generally adapted well to the new normal. In particular, healthy food franchises, including mobile franchises, are on the rise as people are focused on a combination of health and convenience. Regardless of the franchise you choose to invest in you need to ensure it aligns to your business goals, as well as your personal circumstances and financial capacity. I created the Australian Franchise Marketplace to help people looking to invest in a franchise to access and understand that dashboard, to make informed business decisions. Not only can you access this great, free resource to equip you with the questions to ask franchisors, you can also apply your
new skills and knowledge straight away with a range of franchise businesses exhibiting online. You can deep dive into a range of franchise offers, ask questions and download information online, 24 hours a day, every day of the year. Find out more or register for your free ticket at: AustralianFranchiseMarketplace.com.au Kerry Miles is Director of FranchiseED, Founder of Australian Franchise Marketplace, a Franchise Mentor & Coach, and Adjunct Research Fellow at has nearly two decades of experience in the franchise sector with clients including small and large franchises and government organisations with an interest in the franchise sector. www.franchise-ed.org.au
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“Our ageing population, in
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S N A PS H OT: Fa nt a s ti c S e r v i c e s
FRANCHISING PROVIDES STABILITY IN AN UNCERTAIN CLIMATE Businesses in Australia have undoubtably faced some unprecedented challenges over the last 12 months and franchises have been no exception. But there is a general feeling within the franchise community that we have weathered the storm, and business is on the rebound. As an industry, franchisees were forced to adapt their practices in order to survive and learned many valuable lessons along the way. Franchisees who previously delivered
services for predominantly commercial customers, reaped the rewards of the home improvement boom that came as a result of Aussies working from home and holiday budgets being reallocated to odd jobs around the house.
business owners in Australia( ). Fantastic Services Group is encouraging everyday Aussies to consider opting for a franchise as opposed to regular employment and benefit from the proven business models franchising has to offer.
However not only did franchisees see a change in their customer bases over the last year, the services delivered went from relatively straightforward office cleans to decontaminating COVID infected spaces… scary!
However, the increased demand for home services in Australia shouldn’t be the only reason you consider starting a franchise with Fantastic Services Group. With over a decade of industry experience and franchisees across three continents, Fantastic Services Group has a well-established and proven model of success.
Fantastic Services Group made sure to equip their franchisees to support essential services needed during the pandemic, and by acting quickly, their franchisees in the cleaning and sanitisation sectors were able to play a vital role in keeping spaces clean and Aussies safe. The UK-born franchise group responded to the increased demand for cleaning services by introducing an ‘Antiviral Sanitisation’ service which included deep cleaning and a ‘fogging’ of mist that kills 99.9% of germs. Sydney franchisee for Fantastic Services Group, Shirin Lakhani said at one point she was doing between 15-18 antiviral sanitisations a week for hotels, childcares, medical practices and commercial offices. ‘’Business was continuous throughout 2020 and has remained strong into 2021. It seems Australians across the country are still prioritising having a thoroughly clean office and home to maintain a certain standard of cleanliness. “I manage cleaning franchises in Sydney, Melbourne and Brisbane and the demand has increased in all three locations. In addition, because of the flexibility I’m able to run all three concurrently and still have time for my family and other commitments.” Not only has running a cleaning franchise been a stable career choice in the midst of an international health crisis, it has also provided a strong and steady path in uncertain economic times too. With unemployment rates in Australia holding steady month on month, franchising remains a dependable source of income, particularly in the home services sector. Another obvious but important benefit of the franchise model is the ability to be your own boss. With currently just under one million Australians unemployed( ), franchising has remained a constant for the 79,000 franchise
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CEO of Fantastic Services Group, Rune Sovndahl, “Joining an existing and already established franchise means most of the initial set up costs associated with setting up a business have already been done for you. Essentially joining a franchise group significantly reduces the risk as all the infrastructure is established with processes to hit the ground running straight away. ”Not only have we focussed on upskilling our teams, we have also focussed on helping franchisees build their business through investing in increased brand awareness. With franchisees relying on the leads generated by the franchisor to keep their businesses thriving, Fantastic Services Group prioritises investing in additional brand awareness for their franchisees to ensure ongoing client engagement.” The group offers a wide range of opportunities for potential franchisees including cleaning, gardening, property maintenance, pest control and waste removal, to name a few. With an initial investment starting from just $3750+GST, franchisees receive extensive training, both theory and on-the-job, full administrative support as well as access to state-of-the-art business software to make running the business as easy as possible. As a franchise system, Fantastic Services Group is one of the most technologically advanced companies in the industry with over 500 franchisees utilising their model and expertise. Their franchise opportunities ensure quick ROI and unlimited growth potential, the perfect opportunity for Australians looking for security and financial freedom. https://fantasticservicesgroup.com.au/
Disability and Aged Care Specialists
NDIS
*Growth was measured between March and November 2020
- An Awarded ‘AFR Fast Starter
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E X PER T A DV I C E
WILL I OR WON’T I?
TRENDS INFLUENCING FRANCHISING DECISIONS The Covid-19 pandemic was expected to devastate the economy – and the franchise industry. It didn’t. Both the Australian and New Zealand economies bounced back strongly after taking hard hits when last year’s lockdowns went into effect. And many franchises found themselves better positioned to adapt than their competitors – especially those which already had drive-through, online and delivery facilities. With the profound impact of the COVID pandemic on the economy, doing your own research before investing in a franchise is more important than ever. In particular, there are two more questions you must always ask: 1. Adapt: How readily has the franchise adapted to the changes brought by the pandemic? 2. Adopt: How readily has the franchise adopted the new opportunities brought by the pandemic? The questions may seem the same, but they are different. Question 1 is about being responsive. Responding to a situation – in this case, the pandemic – by making some changes to remain viable in a changing world. We know that many business and technology trends that were under way before Covid-19 were accelerated by the pandemic. Zoom, e-commerce, 5G, artificial intelligence, cloud computing, cybersecurity, 3D printing and drones, among others.
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Robin La Pere | Franchise Consultant NO ORDINARY BUSINESSES AND FRANCHISES
Many franchises have been forced to accelerate their uptake of these trends just to keep up. The key words are forced and keep up. Nothing wrong with that. Most of these franchises were able to remain competitive. But the real key to long-term success is to look beyond survival.
Survival? That’s not enough Question 2 is about being proactive, not just responsive. There’s a saying that the best way to predict the future is to create the future. The franchises which have proved to be the strongest and most sustainable over time have always been those who have anticipated future trends and problems – and acted to take advantage of the trends and avoid or solve the problems.
What does it take to be proactive? The first step is to embrace uncertainty by cultivating the ability to detect signals that indicate unanticipated threats and opportunities. One of the ways to do this, if you’re a franchisor, is to listen to your franchisees. They are your early warning detectors in local markets. They know what your customers and competitors are doing – and can report that back to head office, if you encourage them to. So if you’re considering buying into a franchise, ask about that. Ask how they manage their relationship with their franchisees and how they involve franchisees in strategic decision making. Ask about how they responded to the pandemic and how their leadership, strategy and culture may have changed as a result. Ask them how they have taken advantage of technology and innovation and integrated them into new processes, organisation models and ways of working. And ask them if they have a ‘fix it before it breaks’ attitude.
How Covid-19 has impacted franchising Although Australia and New Zealand have been less affected by Covid-19 than most other countries around the world, the social
and economic impacts of the pandemic have still been far reaching. Aussies and Kiwis have become more worried about business failure, unemployment and healthcare. They are being more careful in their spending and in their contact with other people. Even when there are no lockdowns in force, many people are avoiding the gym, shopping centres and other places where crowds gather. And that is having spinoff effects on business – including franchising.
Smart franchises finding opportunities in crisis Smart franchises have looked to new consumer behaviours as an opportunity, not a threat. All franchisors know – or should know – that without successful franchisees, they wouldn’t exist. That’s why so many of them have provided additional support, deferred or reduced franchise fees and negotiated rent breaks for their franchisees. But the smartest franchises have taken it even further. Fitness Franchises In the face of pandemic closures and hygiene restrictions, franchises such as Snap, Anytime and Jetts Fitness had to be flexible, think quickly and pivot their business models to find other revenue opportunities and challenge the raft of new online home fitness technologies such as Peloton, Mirror and Tempo. All went online, providing diet plans, body weight workouts, aerobics classes, live workouts and one-on-one meetings with trainers. Anytime Fitness had already become the first global fitness chain to offer virtual classes by New Zealand-based Les Mills, one of the most recognisable group fitness brands worldwide. Food Services Franchises Fast food franchises such as McDonald’s, Burger King and Wendy’s already had an enormous advantage during lockdowns – drive-throughs and home delivery services. Slightly-slower food franchises such as Domino’s and Pizza Hut had home delivery. In Australia, McDonald’s even began selling milk and bread through its drive-throughs.
Education Franchises Tutoring franchises had been enjoying healthy growth but that growth was eclipsed by a multiplicity of online EduTech services once the pandemic struck. To combat that and continue to provide lessons for its students while schools and its Learning Centres were closed, my client Thinking2morrow started offering online classes. T2M’s competitive advantage: One-to-one tutoring from real people to support its personalised maths and English programmes. The move also rescued T2M’s first franchisee, who had opened her Learning Centre just two weeks before the first Covid-19 lockdown, and gave the fledgling franchise the opportunity to expand far beyond its normal catchment area. When all of this is over, will everything go back to normal? There’s been a lot of speculation about this – or what the ‘new normal’ might look like. Has Covid-19 transformed business forever – or will it revert back to ‘the good old days’? Of course, we have no idea about what will happen in the aftermath of the pandemic, or how long that will take. But my view and that of many other seasoned consultants who have been through other recessions and disruptions over the years is that while things may ‘normalise’ somewhat, there is no going back. The future belongs to those who seize it today. Robin La Pere is a franchise consultant with more than 20 years’ experience as a franchise manager, CEO and owner as well as a consultant, coach and speaker on franchising. Based in Auckland, New Zealand, he works with clients throughout Australasia and internationally. He is a specialist in business model development, strategic planning, process improvement, innovation and franchise recruitment marketing. www.noordinary.co.nz
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“The first step is to embrace uncertainty by cultivating the ability to detect signals that indicate unanticipated threats and opportunities. One of the ways to do this, if you’re a franchisor, is to listen to your franchisees.”
The pandemic brought rapid change from these chains’ smaller competitors as they fought to catch up. Everyone went online, offering takeaway as well as online ordering and delivery – sometimes employing their own drivers but more often using third party services such as Menulog, Deliveroo and Uber Eats. As soon as they could, dine-in restaurants and cafes offered sociallydistanced tables.
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E X PER T A DV I C E
THE LEGAL FRANCHISE LANDSCAPE:
NAVIGATING FRANCHISOR/ FRANCHISEE RELATIONSHIPS
“Franchisees want to feel they are part of a team not only with other franchisees in the system but also as a strategic partner with their franchisor, so franchisors need to bring their franchisees along with them for the ride.” Robert Toth | Accredited Commercial and Franchise Law Specialist MARSH MAHER RICHMOND BENNISON LAWYERS
I am not going to mention 2020, that is well behind us now and I am pleased to say there seems to be remarkable resilience and confidence in business this year. With many people being made redundant or having to look at a career change, this has led to many people being on the market as potential franchisees to secure a job and an income. There has also been a lot happening in the franchise sector legally with reforms not far away which will impact on franchisors requiring greater compliance and transparency.
The Australian legal landscape We have gone through an unprecedented amount of change over the last three years with all sorts of Royal Commissions and Inquiries in the banking and franchise sectors impacting on business.
complacent, this has also opened up certain sectors who see franchising and or licensing as the suitable model for business growth. This is despite the negative press and further regulation franchisors will need to meet. Franchising remains a business model that provides a platform for new business operators and those that want independence from employment.
Franchisee expectations and complaints When investing in a franchise, franchisees expect their franchisors to: all legal requirements franchisee financially; that is, the franchise enables the franchisee to take a reasonable salary for their effort and cover their costs and loan commitments or service development dealings
Although this is no time for business to be
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franchisee’s wellbeing and financial health development officers’, recruiters and support staff that share the same supportive attitude towards franchisees systems and on line and digital technology
suppliers to help franchisees improve their margins business is tough. Over the past year, here are a few of the most common complaints we have received from disgruntled franchisees and our advice for improving the franchisor/franchisee relationship: “I am working incredibly long hours with minimal return on my effort and investment” To turn this situation around the Franchisor may need to consider: renegotiating with key suppliers to give Franchisees better margins on sales or giving franchisees some part of the supplier rebates; re-evaluating the financial model including the royalties,
“A lack of, or poor, communication is one of the key factors that can lead to dispute in a franchise relationship..”
marketing and other fees charged; and reviewing the financial model and adjusting it to make it more viable for franchisees.
for franchisors to be more transparent and account in more detail for their marketing fund spend.
With tightening margins for franchisees, the franchisor still gets their royalties on gross turnover, so franchisees perceive that there is no sharing of risk or pain by the franchisor when times are tough.
Recent decisions by the Court and ACCC guidelines make it clear that audited reports must contain meaningful information to franchisees and sufficient detail for franchisees to understand where the marketing dollar has been spent.
It is a big and bold step for a franchisor to review their financial model, but it may be a better option to rebuild confidence and trust in the model rather than ending up in disputes and an unhappy franchise system. “I am getting no real support or communication from the franchisor” Franchisees complain about a lack of support and concern by their franchisor which leads them to feel they are being gouged for fees again leading to an unhappy system. A lack of, or poor, communication is one of the key factors that can lead to dispute in a franchise relationship. Franchisees want to feel they are part of a team not only with other franchisees in the system but also as a strategic partner with their franchisor, so franchisors need to bring their franchisees along with them for the ride. This means communicating with them regularly in person, online, and via social media to share their plans, successes, failures and objectives. “I get nothing for my contribution to the Marketing Fund” Marketing funds remain one of the greatest areas of angst and potential dispute, despite the Franchise Code requirements
We are working with new franchisors on simplifying their model tailored to their industry sector, removing unnecessary obligations, fees and costs that cause disputes, and working on financial models that make entry into a franchise more attractive and affordable. Robert Toth is a Partner of Marsh Maher Richmond Bennison Lawyers, with over 35 years’ experience in Franchise, Licensing and Distribution law acting for both local and International franchisors, franchisees and master franchisees and with expertise in dispute resolution. Robert is an Accredited Commercial Law and Franchise Specialist, a member of the Franchise Council of Australia (FCA) and the International Franchise Lawyers Association (IFLA) and regularly writes for franchise and corporate journals online. Contact Robert@mmrb.com.au or even call him on mobile 0412 67 37 57 www.marshmaher.com.au
We are seeing continuing growth in online platforms that provide B2B solutions and services. The logistics and courier sector has seen huge growth over the past 12 months with online shopping increasing. Mobile franchises are increasingly on the rise offering flexible work hours and low overheads. Australia continues to be an attractive market for overseas brands in hospitality with innovative new fast-food offerings. And the ‘silver economy’ is one the rise as franchisors tap into the lucrative 50+ market with in-home IT support, maintenance and repairs in home health and wellness services. Colin Crawford, General Manager of Wollermann Franchise Developments (WFD), a leading Australian franchise development consultancy based in Melbourne, has advised clients in the sector for over 30 years. He sees 2021 as a great year for growth in the following franchise sectors: and disability care support programmes for pre-school children
food concepts. All models and options should be considered when looking to commercialise a business system or deciding to take up a franchise right. Colin said it was surprising how often at the end of a business model analysis that the franchise model - or hybrid version known as a ‘branchise’/ joint equity model - ends up being the best way forward for prospective franchisors. Establishing a franchise system is one thing, however getting it out into the market and commercialising it takes enormous effort, resources, money and commitment so you need to have the right team supporting you – that is, franchise legal, financial and consulting specialists who know the market.
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What’s HOT in franchising in 2021?
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S N A PS H OT: G e c ko S p o r ts
MEET GECKOSPORTS FRANCHISOR
KIM O’DONNELL GeckoSports is a family-friendly business that offers multi-sports and fun fitness programs in communities and schools. Managing Director Kim O’Donnell spoke to Business Franchise about the growth of this fun fitness franchise.
Kim, tell us about yourself and the GeckoSports franchise. My 20-year executive marketing career with iconic leading local and international brands paved the way for me to re-create GeckoSports as it is today becoming a trusted national brand representing everything active for parents, kids and families. We offer after-school classes, parties, holiday programs, school clinics run under Government funding, school excursions, events and more. I always say to the team, wherever there are kids, Gecko can be there to support them with a fun active program. We have been operating for over 14 years and began franchising in 2016. We currently have 12 franchise partners operating across 18 locations in Queensland, New South Wales, Victoria and Tasmania. Nationally, Gecko is a powerhouse run by myself and a range of awesome specialist consultants of their specific fields.
Why is there a demand for your service in the community? Our active kids’ programs, including multiple national sports and fun fitness, are a necessity as life becomes busier and screens have become king. Children are not always able to find time to be active each day, and we know that obesity rates are higher than they should be in Australia. So that,
together with the drive to help our country’s little ones learn to be more active and live a healthy lifestyle, is so important. We have 14 individual sports in our program as well as kids’ bootcamp style programs and themed programs such as Ninja Warrior and Mini Olympics. We take pride in our coaches being leaders in the community. We never get tired of hearing how much kids, parents, communities and schools love Gecko and everything that we do – that’s the stuff that tickles your heart!
What type of person would ‘fit’ your franchisee profile? We are selective of who we welcome into the Gecko family as your success is our success. I like to look at a new franchisee as a business partner, someone with the same values and ethics is important to the culture and growth of our brand and national business. We love our franchise partners to be fit and sporty, love everything kids, sport and fitness and be super passionate about making a real difference in their local community where they can really impact a child’s life. We love owners who are parents themselves or who have experience within the sports or fitness world (coaching preferably) but this is by no means a necessity. We are happy to hear from anyone who has a passion for what we do!
How do you look after your franchisees? I believe in a respectful, collaborative, supportive culture. Our franchise owners embody this and are an awesome support to the success of the business and brand. Our franchise partners are treated as just that, a
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GeckoSports Managing Director Kim O’Donnell with some happy customers
business partner with equal input into the future operations of our business. Communication and training is key to our franchise business partners’ success. We offer extensive start-up training when you join us, right the way through from program development, operational, staffing, financial, legal, marketing and more. Our business is equipped to support you in every element of what we do, with a low level affordable investment we ensure you a successful and positive journey.
What does the next 12 months look like for GeckoSports? After the challenges of Covid, we are pumped to be back out there doing what we love and making a difference again. Alongside working with kids and the community I am excited to connect with like-minded people who are keen to invest and become a business partner with GeckoSports and help us grow across Australia! We are bringing on some awesome new franchise partners who are super inspirational and have reinvigorated our national franchise network. I am so proud of the team we have around the country flying the Gecko flag. Now is our time for network growth of new franchise partners all across Australia! https://geckosports.com.au/
JOIN OUR TEAM We are now looking for Franchisees to join our fast growing company.
Safety is a fast growing industry Small investment, massive results
SMOKE ALARMS
TEST AND TAG
Servicing, replacement and inspection of smoke alarms within residential and rental properties.
Electrical testing and tagging on site at a range of businesses, properties and sites.
Low monthly franchise fees Recession proof business Work the hours you want
FIRE SERVICING
POOL INSPECTIONS
Sales, servicing and installing fire extinguishers to ensure WHS compliance.
Pool fence inspections to ensure they comply with current safety regulations and standards.
No prior experience required Full training provided
FIRST AID KITS
EXIT LIGHT TESTING
Servicing and supplying first aid kits to individuals and businesses in your region.
Regular testing and servicing of Exit Lights to ensure WHS compliance and operation under emergency conditions.
For more information about becoming a member of our Checkmate Safety Team, visit our website or email our team.
www.checkmate.net.au
info@checkmate.net.au
1300 00 2468