VOL 18 ISSUE 01 nov/dec 2023
cover story
celebrate the opening of their 150th store
landmark review
the future of franchising in australia
latest news
in franchising
the impact of data privacy in franchising special feature
food and franchising
maximising franchise success
with ai-powered chatbots
$4.95 (AUD), $7.95 (NZ) inc. GST.
Australia’s Premier Home Care Franchise Network TAKE CHARGE OF YOUR FUTURE
Have you reached a crossroads in your life and looking to make a change for the better? Secure your family’s future and make a difference in your community, whilst building a business in the thriving and dynamic home care industry with Right at Home. You’ll enjoy the freedom to grow your own business, with the full support of a top quality, national, home care brand delivering domestic support, personal care, skilled nursing, and allied health services. You do not have to have previous home care or health care experience. You will employ the care and office staff that you need to deliver and organise services to the community. You will be provided with the necessary training to ensure your service is delivered at the highest standard. The home care market is guaranteed to grow for the next 20 years. The entry costs and overheads are very low compared with most businesses. Following rapid growth In QLD, NSW and WA, Right at Home is expanding into VIC, SA, TAS, ACT and the NT with prime territories up for grabs. Make your dreams come true… talk to Right at Home about a home care franchise today.
1300 363 802 rightathome.com.au
GREAT FRANCHISE LOCATIONS: • Five Dock • Caringbah • Randwick • Wollongong • Bateman’s Bay • Melbourne • Adelaide
VOL 18 ISSUE
AUSTRALIA and NEW ZEAL AND
cover sto
landma
the future rk revi ew of franch in austra ising lia
On the cover: Soul Origin
perceive as healthier, fresher food, and taking the feedback into actionable steps to ensure ingredients and produce on our menus and in our recipes are not only fresh but are the best food offerings possible.
latest
in franch news ising
the impact of data priva fr anchisi cy in ng special feat
2023
Soul Origin we have always taken the lead “Atfrom our customers, listening to what they
ry
celebr ate th of their 150 e open ing th store
VOLUME 18, ISSUE 1, 2023
president: Colin Bradbury. colin@cgbpublishing.com
01 nOV/dEc
”
ure
food and fr anchisi ng
ma ximising fr anchise su
with ai-powe
Publisher: Vikki Bradbury. vikki@cgbpublishing.com.au editorial department: editor@cgbpublishing.com.au sales & marketing manager: Annie Bradbury annie@cgbpublishing.com.au Production: Katie Wareham production@cgbpublishing.com.au accounts: accounts@cgbpublishing.com.au DESIGN: Jejak Graphics. jejakgraphics@gmail.com CGB PUBLISHING PO BOX 17 Pomona, QUEENSLAND 4568 TEL: (07) 5485 2704 www.businessfranchiseaustralia.com.au www.businessfranchisemagazine.co.nz
TO SUBSCRIBE: www.businessfranchiseaustralia.com.au or www.isubscribe.com.au
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.
ccess red cha tbots
$4.95 (AUD),
$7.95 (NZ)
inc. GST.
Welcome to our November/December issue of Business Franchise Australia and New Zealand Magazine!
On the cover this issue we are pleased to feature Soul Origin, a franchise that has just opened their 150th store and are happily celebrating this impressive growth. You can read more about this and find out how you can be part of this growth on page 12. Recently we were lucky enough to speak to Paul Constantinou, an industry giant with a wealth of knowledge to impart. We hear about his time at Quest and how he believes it is the Extra 1% that can ensure you achieve success. You will also find featured in this issue several Franchise systems and success stories from across Australia. As usual we have a panel of industry experts to keep you up to date and informed. Bill Morgan of Morgan Mac Lawyers reflects on the support or lack thereof which can cause disputes and how we can avoid them, The FCA sits down with Daniel Mesiti, Boost Juice Franchisee and asks him why Franchising and what advice he would give to anyone looking to start a business and finally Dr Nigel Bairstow covers Maximizing Franchise Success with AI-Powered Chatbots. This issue our feature is Food and Franchising, so we have asked our experts to give us some helpful insights. A taster of these is Doug Downer AKA the Franchise Guy, Food franchises and the positive and negative elements to consider, Tony Meredith discusses essential Ingredients to Create a Successful Food Franchise Business and Brian and Prue Keen discuss Food and Franchising and the Post Covid Recovery. Don’t forget to look at the A-Z franchise listing directory at the back of the magazine with a taste of some of the franchise opportunities available right now. And throughout this issue you will find some great opportunities to consider from our advertisers. Until next time, enjoy the read! Vikki Bradbury Publisher
SUPPLIER FORUM
conte nts
november /december 2023 Cover Story 12 Soul Origin: Soul Origin’s Nationwide Expansion Shows Impressive Growth
In every issue 8
What’s New! Announcements from the Industry
14 FCA - Q&A with Daniel Mesiti, Boost Juice 68 Behind the Headlines 71 Professional Services Listings 72 Franchise Listings 74 A-Z Franchise & Services Directory
12 14
18
Profile 56 Kitset Assembly: Kitset is Here to Save the Day! 66 Franchising Expo: Want to Start Your Own Business in 2024?
Spotlight on Service 20 Points4Purpose: The Loyalty Platform that Gives Back!
Franchisor in Depth 50 Stagecoach: Stagecoach Performing Arts Looks to Expand Australian Network at Sydney Expo
20
6 business franchise MAGAZINE
24
also in this issue:
62
ANZ ............................................................................................................................................ 74 Aramex ...................................................................................................................IFC, 74 Bedshed............................................................................................................................... 74 Bridgestone................................................................................................................... 74 Chicken Treat............................................................................................................... 74 Deck Seal............................................................................................................................ 75 Franchise Ready................................................................................43, 70, 75 Hydraulink........................................................................................................................ 75 IP Partnership.............................................................................................................. 71
Women in Franchising
Expert Advice
22 Sonia Shwabsky: From Digital Disruption to Third World Challenges: A Female Leader’s Pioneering Path from Franchisee to CEO
16 Helen Kay: Shared Success: Why Franchise Safeguards Matter to Both Franchisors and Franchisee
Have Your Say
24 Seva Sumari: Landmark Review: The Future of Franchising in Australia
18 Despina Kathestides: No One-Size-Fits All Solution for Digital Payments
48 Bill Morgan: Franchisor Support, or Lack of… The Expectation Gap
60 Paul Constantinou AM: The Extra 1% - A Lesson from Quest Founder, Paul Constantinou AM
52 Dr. Nigel Bairstow: Maximising Franchise Success with AI-Powered Chatbots 58 ATO – Emma Tobias: Business Health Check – Year in Review 62 Stewart Germann: The Impact of Data Privacy in Franchising
Jim’s Pools Care........................................................................................................ 75 Kitset Assembly....................................................................................................... 75 Kumon Education................................................................................................ 76 Mindchamps................................................................................................................ 76 Morgan Mac.................................................................................................71, OBC MyHome............................................................................................................................. 76 MYKIKI..................................................................................................................................... 76 Oporto....................................................................................................................................77 Pack & Send...................................................................................................................77 Petbarn Mobile Dog Wash....................................................................77 Red Rooster....................................................................................................................77 Right At Home....................................................................................................4, 77 Right Choice Conveyancing............................................................... 78 Shopinsurance / Steadfast Eastern.......................................... 71 Snap On Tools.................................................................................................26, 78 Soul Origin....................................................................................................................... 78 Stagecoach..................................................................................................................... 78
60
52
The Drug Detection Agency (TDDA)................................... 78
Australia’s Industry Leading Stop-Leak Franchise Megasealed Announces Appointment of New CEO, Sean Johns Johns will take the reins from Megasealed’s Founder & Managing Director, Jacques Courtin, who announced his plans to step back from the day-to-day running of the Franchise as he moves toward retirement. Australia’s industry leaders for innovative stop-leak solutions, Megasealed are proud to announce the appointment of Sean Johns as the company’s new Chief Executive Officer. Johns’ is a seasoned franchise leader, with close to thirty years leadership experience, including his role leading a prominent travel group, overseeing 370 franchises with a combined turnover exceeding $750 million. His fifteen-year tenure as the founding partner of a technology-based
performance management company serves as a testament to the expertise he brings to his new role as CEO of Megasealed. Johns’ commenced his new position in August and will work closely with Courtin to manage the CEO transition, with Courtin remaining in an advisory capacity to the Franchise. Courtin spoke to his confidence in the new appointment to bolster the Megasealed leadership team. Megasealed was first developed in 1988 after Courtin spent years working in the bathroom renovation industry and was disappointed by the ineffectiveness of industry sealants in dampening the main causes of leaking showers. Determined to break a culture of patchwork repairs and expensive bathroom renovations, Courtin
set out to develop a cost-effective, timeefficient, and guaranteed solution for the repair of leaking showers and balconies. Megasealed opened its first franchise store in 2014. With a constant emphasis on connecting specialised leak-repair services to local communities, Megasealed has gone from strength to strength and continued to expand its franchise network ever since.
Eden Exchange Unveils DealXchange: The Standalone Platform Transforming Business and Franchise Sales According to the Australian Business Growth Index, the trend of Australian SMEs (smallto-medium enterprise) operating outside of the country is on a remarkable rise. Currently, one-third (34%) of Aussie SMEs conduct business operations internationally. However, this figure is projected to double, with over two-thirds of SMEs planning to be operational outside of Australia by 2027.
Eden Exchange, a revolutionary online platform for buying and selling businesses, today announces the launch of its DealXchange platform. By operating as a standalone platform separate from Eden Exchange’s managed services, DealXchange offers businesses the flexibility and transparency they need to thrive on the international stage. 8 business franchise MAGAZINE
With an intuitive interface and flexibility baked in, DealXchange redefines efficiency, collaboration and success, empowering users to achieve remarkable outcomes in business and franchise sales. Designed specifically to meet the needs of sellers, franchisors, brokers, buyers, advisors and mergers and acquisitions, the DealXchange platform provides: • A Virtual Lead Room: DealXchange is a lead room catered to users’ specific needs in the process of selling a business. It is customisable, allowing users to collaborate, communicate and manage
the business buying or selling process all in one place. • Document Sharing: DealXchange allows users to securely share and store signed documents with ease. Its reliable storage system ensures important documents are safe, organised and easily accessible. • Deal Workflow Management: With DealXchange, users can manage their deals from lead generation to closing, effectively taking control of the entire journey. From sourcing high-quality leads to qualifying and nurturing them, the platform provides the tools needed to streamline the buying/selling process. • Unmatched Lead Generation: DealXchange’s proprietary technology easily captures any existing lead generation source, allowing users to manage, qualify and convert to deal without ever leaving the platform.
Ninja Parc secures Hunter Region territory, now for sale For the first time, the Ninja Parc kids obstacle course franchise has a presecured a territory for sale. It is available in the location of Huntlee in NSW. The location was too good not to secure, said Ninja Parc founder John Pirlo, with an affordable footprint right at the gateway to the Hunter Valley. “Huntlee is a growing township near Branxton and the area is booming with families so this is a great opportunity,” said John. “We’re on the hunt for growth corridors like this as they make so much sense for franchisees. You’re filling a clear market gap for the local community and that’s a great start for any new business. “The Huntlee location also offers a comfortable commute to Newcastle or even Sydney if that’s what the buyer is looking for
– and it could easily be set-up to run with a local manager too.”
this set-up and customer capacity is max 40.
The site is suitable for a 300sqm Ninja Parc, the new boutique option in the brand’s restructured portfolio that launched in March.
incentive, with a fit-out contribution of $90k
The 300sqm option offers an intimate, safe environment for kids to play and experience ninja. This space has a strong focus on kidsonly classes and features approximately 15 obstacles plus space for birthday parties. The operation requirements are minimal for
The Lessor is also offering an attractive and 6-months free rent. The site is located on Winepress Rd, Branxton and low-cost entry starts at $400,000. For more information and to book your Discovery Call visit: https://calendly.com/ mkoole-cj/huntlee
Pharmacy 777 is WA Franchisor of the Year Pharmacy 777 has been named the WA Franchise of the Year (11+ Franchisees) at the 2023 Franchising WA Industry Awards Western Australia, and also took out the prestigious WA Franchisor of the Year (Iron Ore) award. The awards celebrate the dedication, hard work, and innovation of franchises across the state and their ongoing success. Pharmacy 777 was awarded the special honour of the ‘Iron Ore’ award on the night, which recognises outstanding achievement and symbolises the epitome of franchising in WA: and was awarded for the overall Western Australian Franchisor of the Year from across the different types of franchise systems. CEO of Pharmacy 777 Jason Brotherson said it was an honour to be awarded both WA Franchise of the Year and the Franchisor of the Year award. “Pharmacy 777 has been serving the community for more than 60 years,” Jason said. “These awards are a reflection of the extraordinary work behind the scenes which form the foundation of a franchise service model.”
“Our strong values-based culture has been the basis of our success in delivering personalised care to our franchisees and to our patients. “I want to say a big thank you to the Pharmacy 777 Administration team for the support they provide to the 777 Group on a daily basis. “We recognise the important role
Pharmacists have in supporting patients’ health, in collaboration with GPs and the wider health care network. “My team and the wider team are passionate about helping people which is inspirational to see”. The Group’s goal is to ensure access to medication, Pharmacist-delivered health services and support for all West Australians. business franchise MAGAZINE 9
Healthy Harold Partners with Bakers Delight to Bring Healthy Solutions to Aussie Kids and Families Life Ed and its iconic mascot, Healthy Harold, is partnering with family-owned and run Bakers Delight to empower children and families across Australia to make healthier choices, in line with Bakers Delight’s ‘Healthy Solutions’ range. Bringing together two of the most trusted, community-focused organisations, this partnership aims to educate children on where their food comes from, the importance of whole grains, and the key nutrients they provide, such as protein, carbohydrate and fibre. Like all of Life Ed’s programs, this collaboration will help teach Aussie children critical thinking skills as this is the key ingredient in delivering education that truly embeds learning and gives kids the confidence to make positive choices into the future. This will be done through initiatives like the ‘Growing Good Grains Grants Program’ which will launch in 2024, encouraging early learning centres, childcare centres, kindergartens and primary schools to educate young children about the origins of healthy foods through growing their own gardens. It will also deliver material for teachers and parents, to help them find healthy solutions through resources like curriculum-aligned lesson plans and healthy recipe video tutorials.
Australia’s fitness industry elite revealed at the annual awards The national winners were as follows: • Business Owner of the Year: Chris Evans: Bli Bli, Forest Glen, Hervey Bay & Sippy Downs, QLD • Club of the Year: Jetts Grafton, NSW • Club Manager of the Year: Alanna West, Nowra, NSW • Personal Trainer for the Year: Justin Scarvaci, Dianella & Rivervale, WA • Make a Difference in the Community: Jetts Mt Gambier, SA
Australia’s fitness industry elite have been recognised at the Jetts Fitness conference (known at Jetts as The Gathering). The annual event was held on Saturday 14th October celebrating the 16 year strong franchise groups best in health and fitness across the country. 10 business franchise MAGAZINE
Award recipients were recognised across six categories on both a state and national level. Each category was judged on a range of criteria including business performance, club culture and appearance, customer service, member feedback and excellence in other operational areas within each club.
With additional winners crowned across each state, there were 16 winners chosen on the evening. Jetts also introduced a new award, the Jetts Love Award which celebrates a member in the Jetts community who goes above and beyond in their contribution to making the brand the success it is today. This was awarded to Andrew Pettet from Synergy Fitness for over a decade of exceptional customer service to the Jetts Network. For more information, please visit www.jetts.com.au
KX Pilates Announces $20,000 Travel Grant for Aussie Entrepreneurs Reformer Pilates leader KX Pilates and its Founder Aaron Smith have announced the KX Entrepreneur Travel Grant – a grant offering emerging entrepreneurs $20,000 to explore, define, and inspire their business journey. KX Pilates will award one Australian with $20,000 to help them expand their mind through travel and ideate a business idea. The winner will also receive one-on-one mentorship from Aaron Smith, who will help refine and shape the idea. This grant comes as Smith reveals in his new book Define Yourself how his global adventures paved the way for the ideation and creation of KX Pilates. Smith says travel can be a catalyst for self-discovery and innovation. The Reformer Pilates franchise commissioned national survey* to uncover
JAX joins $2 million fight against cancer with entry into 2023’s Shitbox Rally
the inspiration behind Australian businesses and identify why Australians are hesitant to pursue their business ideas. The results found 60% of Australians love the idea of starting a business or side hustle, with Gen Z leading the charge (82%, 18 - 24 years), followed closely by Millennials (70%, 24 – 35 years). Respondents revealed the key three reasons they want to start their own business: To earn more money (61.2%), have flexible working hours (45.8%) and be their own boss (42.5%). With the support of Smith and KX, entrepreneurs will have the opportunity to overcome all three of these barriers as they seek inspiration abroad and overcome the challenges of funding to pursue their own ideas, whilst also receiving valuable mentorship from Smith.
Public donations of $100 or more to grant inscriptions of loved-ones lost to cancer on the competing car JAX Tyres & Auto Gosford franchisee, Peter Bonvino, and his brother-in-law, Nathan Metcalfe, are revving up to play their part in a nationwide effort to raise $2 million in support of the Cancer Council’s fight against cancer, with their entry into this spring’s Shitbox Rally. Nathan and Peter, AKA ‘Sons of AnaCamry’, will attempt to complete the daunting 2,500km journey from Port Douglas to Adelaide, across some of Australia’s most unforgiving roads and through towns including Einasleigh, Winton, Windorah, Birdsville, Marree, and Rawnsley Park. With the rules of the competition stating that all competing cars must be purchased for $1,500 or less, Nathan and Peter’s 2001 Toyota Camry wagon was taken off the hands of a Brazilian backpacker on his way to the airport for $1,400, back in February 2023. All donations to the Sons of AnaCamry of $100 or more, will allow the donor to have the name of a loved-one lost to cancer inscribed on the car, providing a boost to Nathan and Peter on their fundraising journey. When it comes to a strategy for success, Sons of AnaCamry co-driver, Nathan Metcalfe, says: “Being part of the JAX Tyres & Auto team, Peter knows his way around a car, and with me working as a paramedic for NSW Ambulance, we’d like to think we’ll be well prepared for whatever the rally decides to throw at us.” business franchise MAGAZINE 11
cover story: Soul Origin
Soul Origin’s nationwide expansion shows impressive growth as they celebrate the opening of their 150th store
Soul Origin is not just a brand; it is a friend to Aussie food lovers. Back in 2011, they set out on a mission, to shake up the fastfood industry and create a space where people could grab food that is not just quick but also fresh, wholesome, and delicious. Now, with 150 stores across the country, they have become the go-to spot for foodies looking for quality food on the go. And guess what? They are just getting started. Their secret? Keeping things simple. Soul Origin believes everyone deserves delicious and nutritious meals, no matter the time or place. That is why they use only the best and freshest ingredients to create mouthwatering meals that are not only new and exciting but also good for you. So, if you are after a food experience that’s as delightful as it is nourishing, Soul Origin has got your back. From crisp and colourful salads filled with seasonal vegetables to hearty soups that warm your soul, their menu caters to diverse palates. The sandwiches and wraps are of the freshest quality. The barista-made coffee offers the perfect pick-me-up by 12 business franchise MAGAZINE
using only the best quality coffee beans that are ethically sourced. With their gourmet options, Soul Origin proves that you do not need to compromise taste for health. Their unwavering dedication to quality and freshness distinguishes Soul Origin from the typical fast-food outlet. Their extensive menu offers a variety of options created for a variety of dietary preferences.
In addition to the Soul Origin stores, the brand also provides a catering service. It is not just your typical catering service; it is a culinary experience that brings the wholesome goodness of delicious, healthy food to your doorstep. Soul Origin’s catering services offer consumers a unique opportunity to host gatherings at home or work with a delectable twist. From vibrant salads and
delicious ingredients for their customers.
From crisp and colourful salads Within their support for local farmers, Soul “filled with seasonal vegetables to Origin is also supporting local communities
hearty soups that warm your soul, their menu caters to diverse palates. The sandwiches and wraps are of the freshest quality. The barista-made coffee offers the perfect pick-me-up by using only the best quality coffee beans that are ethically sourced.
”
gourmet wraps to artisan sandwiches and grazing platters and, every dish is a testament to their dedication to creating not only sumptuous but also nutritious meals. This ensures your guests can indulge in delicious fare without compromising their health. Soul Origin’s purpose is to create and serve nutritious, delicious, and satisfying food that is made fresh daily in-store and only using some of the best local ingredients from Australia’s farms. Not only are Soul Origin sourcing the best quality ingredients and produce but they also help support local businesses through this process. Soul Origin sources ingredients from some of the best farms across the country allowing Soul Origin to include some of the freshest and
and local economies. With a deep-rooted commitment to transparency, Soul Origin takes pride in sharing the origins of their ingredients, from the farm to the table. This unique approach not only ensures the traceability of their food but also supports their dedication to local sourcing. The “Source of Origin” initiative is not just a tagline; it is a testament to Soul Origin’s unwavering commitment to providing the freshest, healthiest sourced ingredients on the market. Hao Quach Managing Director shares, “To come this far and being able to grow to 150 stores nationwide is incredible and we are thrilled”. At Soul Origin we have always taken the lead from our customers, listening to what they perceive as healthier, fresher food, and taking the feedback into actionable steps to ensure ingredients and produce on our menus and in our recipes are not only fresh but are the best food offerings possible.” Soul Origin has set its sights on further expansion and innovation. Their commitment to providing healthy, fresh food will continue to inspire changes in the fast-food industry.
To come this far and being able “ to grow to 150 stores nationwide is incredible and we are thrilled. ” As they grow, they bring with them a promise that nutritious food should be accessible to all. As Soul Origin continues to expand, it is not just the number of stores that matters; it’s the positive impact they make for their customers and the broader community. In a society where fast food is so prevalent, Soul Origin stands out as a beacon of health and wholesomeness, providing an option for a better, healthier lifestyle choice.
For more information, you can visit the Soul Origin website at www.soulorigin.com.au to keep updated on all the amazing work they do as well as browse their delicious menu offerings. To learn more about Soul Origin and their franchising opportunities contact National Franchise Sales Manager, Karla Shand on +61 0439 611 962 business franchise MAGAZINE 13
franchising council of australia (fca)
Q&A with Daniel Mesiti
“ The best advice I can give is to make sure you are ready for the
two completely different stories – good or bad – regardless of the direction you provide. Franchising cuts a lot of those variables out.
business – if you get the people right the business will take care of itself, but make sure you yourself are ready, or you’ll be your own worst enemy.
3. What support do you feel franchising, as a business model, best provides for franchisees?
”
Daniel Mesiti Multi-site franchisee with Boost Juice Daniel Mesiti is a multi-site franchisee with Boost Juice, operating five locations across Sydney. He takes time out to share his thoughts on franchising and small business with Business Franchise Australia. 1. What made you consider franchising when you had already run successful independent businesses? After I left university armed with a business degree, I started by own small business in hospitality, having worked in “hospo” while I was studying. It was a success, but I just got to thinking there had to be a better way, and franchising seemed to offer that – there were tried and proven systems, everything was standardised, there was 14 business franchise MAGAZINE
plenty of support available, and it seemed easier to grow compared to a stand-alone business.
2. Once you’d made the move into franchising, what made you decide to leverage the opportunity to expand into a multi-site operation? Again, it comes back to franchising, and the model franchise systems offer. It’s so much easier with the systems that are in place in a franchise system to do two, or three, or more…because you’re part of a franchise system, as long as you follow the procedures that are set down, it’s so much more straightforward (and less stressful) than relying on the “brilliance of an individual” which can create challenges in itself. For example, if you’ve got a restaurant and you open a second one, you’re reliant on your head chefs: two restaurants, two chefs, and potentially
A network of peers, to connect and bounce ideas off, and to help motivate you; brand and marketing; support from head office that can round out your skills. The systems and framework of the business are critical (and some can take this for granted) but they deliver economies of scale – for example, in areas like HR and legal it would cost me thousands to access support as a sole trader somewhere; as a franchisee, I have access to this type of support as part of my franchise agreement. But the brand is the big one: with a strong brand you’re not struggling to create an identity, and being a franchisee means I’ve got that covered.
4. If you could give one piece of advice to someone thinking about starting a small business, what would it be? Don’t! (laughs). Seriously, the best advice I can give is to make sure you are ready for the business – if you get the people right the business will take care of itself, but make sure you yourself are ready, or you’ll be your own worst enemy. It sounds counter-intuitive but it’s true: you have to be ready for what you’re about to take on regardless of how much planning or research or strategic planning you’ve done. And grow yourself – you never stop developing, so make sure you find ongoing personal development opportunities for yourself.
5. You’ve spent over 25 years in hospitality. What do you think the key changes in the hospitality environment have been over that time, noting the impact of the pandemic? In two words – personalisation and technology. One example (which became critical during the pandemic) was delivery platforms. Uber and the like had already caused massive shifts in the industry, and of course people in lockdown accessed a lot of products from businesses like mine using those platforms, and technology continues to evolve – not just in terms of delivery platforms but in our systems and how our marketing messages are delivered. Marketing and branding have evolved so much during my time in hospitality, and will keep doing so. It’s a big plus in so many respects, as the way messaging is delivered becomes more sophisticated and targeted, and we have to ensure that what we’re doing meets the expectations those messages generate. And that leads me into the one thing that never changes: the need to listen to the customer. Just as so many other aspects of business have changed over the years, so too are customers’ expectations changing: higher expectations, expecting more, looking for personalised service and attention to the details that matter to them.
6. What excites you the most about being your own boss? When you get a sense of achievement it’s great, and you know you’ve done a lot of the hard work yourself, even as a franchisee.
Using the competition to make yourself better – nobody has a monopoly on good ideas, and if someone else is doing better and you’re passionate about success, then competition is a powerful force to leverage and harness. But like anything, you’ll have wins and losses, although once you’re fully established and up and running, things become simpler and more straightforward. For anyone starting out, my advice is that for the first six or twelve months, be prepared to invest the time needed to make a go of it. It’s all well and good to say, “I’m my own boss, I don’t want to work long hours,” but the less you work the more you will pay in wage costs and other expenses that you could have eliminated by doing more yourself. So back to the question about my advice for people thinking about starting out in small business, if you’re not prepared to commit absolutely – at least during the time it takes to get a business to fly from a standing start – then maybe it’s not for you. But speaking from my own experiences, I find small business intensely rewarding,
challenging, demanding, but a great way to earn a living, especially as a franchisee. I’d recommend a franchise to anyone who is seriously looking for a rewarding career in small business.
The Franchise Council of Australia is the peak industry body for the $172 billion Australian franchise sector. We represent franchisors, franchisees, business advisors and small business owners who collectively employ more than 565,000 Australians. The FCA advocates for responsible economic leadership at a national level as part of our mission to support the ongoing success of our members, franchising, and businesses across Australia. Phone: 03 9508 0888 Email: info@franchise.org.au Web: www.franchise.org.au business franchise MAGAZINE 15
expert advice: Helen Kay | Founder | Rise Legal
Shared Success:
Why Franchise Safeguards Matter to both Franchisors and Franchisees
Many franchisors are concerned about the possibility of their franchisees leaving their franchise system to set up their own competing businesses. This is a legitimate concern, and it's essential to have safeguards in place to protect the franchise brand and business model.
Helen Kay is an accomplished commercial lawyer with over two decades of legal expertise. As the founder of Rise Legal, Helen specializes in delivering strategic and practical commercial and franchise legal solutions. Her distinguished career has seen her in pivotal roles at prestigious law firms, consistently offering exceptional legal counsel. Her unique combination of hands-on experience and visionary leadership positions her as an invaluable asset in the realm of commercial law and franchise expertise, assisting franchisors in safeguarding their business through comprehensive commercial legal support and ensuring compliance. Helen Kay | Managing Director | Rise Legal | Business Lawyers | Offices: Gold Coast | Perth | Sydney T: 1300 064 707 | E: info@riselegal.com.au | https://riselegal.com.au
However, within the franchise landscape, both franchisors and franchisees both have vested interests. While franchisors are keen on preserving the integrity of the brand they've meticulously developed, franchisees seek assurance for their investment. By being part of a protected system, they are cushioned against risks like internal competition from fellow franchisees. Here’s a closer look at these strategic safeguards and their shared significance across the franchise ecosystem.
1. Restraints of Trade Clauses: Restraints of trade clauses are of course essential components of franchise agreements. These clauses should restrict franchisees from engaging in certain competitive activities for a specified period and within a defined geographical area both during and after leaving the franchise system. Here's how they work: • Non-Compete Agreements: The cornerstone of restraints of trade, noncompete clauses restrict former franchisees from operating a competing business within a specified radius or time frame. This not only preserves a stable market for franchisees but also ensures that franchisees cannot immediately become direct competitors. • Non-Solicitation Clauses for Clients: By safeguarding the client base, these clauses 16 business franchise MAGAZINE
ensure franchisees don’t lose their hardearned customers to departing members of the same franchise system. This helps maintain client relationships within the franchise system and prevents immediate disruption. • Non-Solicitation Clauses for Staff: Franchisors should extend non-solicitation clauses to cover employees and staff members. This prevents former franchisees from recruiting or enticing employees away from the franchise business, preserving the stability of the workforce.
Restraints of Trade clauses encompass a wide range of protective measures. These provisions are vital for preserving a franchise's competitive edge and preventing former franchisees from using confidential information to their advantage. A wellstructured franchise agreement, with comprehensive restraint provisions, can significantly reduce the likelihood of franchisee competition while preserving the integrity and success of the franchise business.
2. Confidentiality and Intellectual Property: Protecting a franchise system's confidential information and trade secrets is crucial to maintaining competitive advantage. Here's how to safeguard this vital knowledge: • Non-Disclosure Agreements (NDAs): beyond client and staff concerns, a franchisor should always enforce strong NDAs that legally bind franchisees to confidentiality regarding the franchisor’s business practices, operations, and any proprietary information. These agreements are instrumental in safeguarding sensitive information, including that they should: - Intellectual Property: Identify and clearly define any intellectual property within the franchise system. This could include unique business processes, customer lists, marketing strategies, product formulations, and any confidential information that gives the franchise a competitive edge. - Operational Procedures: Ensure that franchisees do not disclose the franchisors’ operational procedures or any other confidential know-how that contributes to the efficiency of the franchisor’s franchise system. • Training and Education: In addition to the legal document, franchisors should educate franchisees about the importance of confidentiality and the severe consequences of leaking sensitive information. Provide clear guidelines in the training and the operations manuals on how to handle confidential data.
3. Strong Trademark Protection: To have an effective and well protected franchise brand franchisors need to have a robust trademark protection strategy in
place. Trademarks are valuable assets that represent the franchisor’s brand's identity and reputation. Here's how franchisors can use trademarks to the franchisor’s advantage: • Trademark Registration Strategy: It's essential for franchisors to register trademarks in all relevant jurisdictions and categories. This not only secures the franchisor’s brand but also prevents others from capitalising on the franchisor’s reputation. • Monitoring and Enforcement: Regularly monitor franchisees' compliance with trademark usage guidelines. Implement a system for reporting any unauthorised or incorrect usage. Be prepared to take swift action to rectify violations and enforce the franchisor’s trademark rights. By combining trademark registration with clear and stringent usage guidelines, franchisors create a powerful shield for the franchisor’s brand identity. This not only deters former franchisees from attempting to use the franchisor’s trademarks but also reinforces the importance of brand consistency and compliance within the franchisor’s franchise system.
4. Effective Training and Mentorship: While legal strategies are pivotal in safeguarding the franchise system, there's more to retention than just binding contracts. The franchisees' experience and satisfaction play a significant role in their decision to remain loyal. A substantial aspect of this is effective training and mentorship. Here’s why and how it can make a difference: • Ongoing Mentorship: The initial training and onboarding of the franchisees is crucial but the franchisee journey shouldn't end after the initial training. Regular mentorship sessions, where seasoned
professionals provide guidance, can significantly impact their performance and satisfaction. These sessions can address challenges, share best practices, and discuss potential growth strategies. • Financial Security: Ensuring that the franchisees are profitable is not only beneficial for the franchisor’s bottom line but is also a key retention tool. When franchisees are making enough money and see the potential for growth, they're less likely to consider alternative ventures. When franchisees are well-trained, mentored, financially stable, and feel supported, they are not only less likely to leave but are also more likely to thrive within the franchisor’s franchise system. By fostering a positive and collaborative environment, franchisors can ensure that leaving becomes the last thing on their mind. Preventing franchisees from leaving and setting up competing businesses requires a proactive legal strategy. By implementing strong trademark protection, restraints of trade clauses, and confidentiality measures, franchisors can significantly reduce the likelihood of franchisee competition. Consulting with legal experts experienced in franchise law is essential to ensure that the franchisor’s franchise agreements are robust and enforceable. Remember, a well-structured franchise agreement not only protects the franchisor’s brand but also fosters trust and transparency within the franchisor’s franchise system, ensuring that both franchisors and franchisees operate in a secure and thriving environment. Disclaimer: This article is intended for informational purposes only and should not be considered legal advice. Consult with a qualified commercial lawyer for personalised advice related to your specific circumstances. Individual liability limited by a scheme approved under Professional Standards Legislation.
business franchise MAGAZINE 17
have your say: Despina Kathestides | Head of Franchise Banking | NAB
No one-size-fits all solution for digital payments acceptance of digital payments as consumer purchasing habits evolve, encompassing online transactions, digital wallets and buy now pay later payments. However, the increasing number of payment channels means there is no one-size-fits-all solution for franchisors or franchisees seeking to adapt their business model to this new environment. The key to making the right choice is to consider which technologies and payment channels are most suited to your business model.
Tailor a solution
Despina Kathestides Head of Franchise Banking, NAB
As cash usage continues to decline sharply, both franchisors and franchisees are offering new channels for customers to pay for goods or services. A Reserve Bank of Australia (RBA) survey released in June highlights the number of cash payments made by Australians halved in the three years to 2022 – from 32 per cent to 16 per cent of all in-person transactions. Of all payments, including online transactions, cash made up just 13 per cent by number in 2022. The question for the franchising sector is how to provide payment options which cater for all customers in this environment, including the just over one-quarter who indicated to the RBA they would suffer a “major inconvenience” or “genuine hardship” if cash was hard to access or use. Businesses are already responding to this challenge, exploring ways to enhance their 18 business franchise MAGAZINE
Understanding the end user and third parties involved in a transaction is critical to getting the right functionality for a business – as the nature of the franchising varies widely. Hotel chains, for example, often use other providers such as online travel platforms to secure bookings and need to ensure payments infrastructure is compatible not just with each hotel’s system but also those of a platform. Their needs are very different to businesses who takes over the counter payments for small ticket items. Such operators are more interested in easy access to branches or a local post office with banking facilities, as well as merchant terminals. And fast-food operators with a high turnover are likely to benefit from packages which include merchant terminals, a payments app and cash collection. In all instances, the aim should be to fashion the right package for each business model and its customers. In the franchising sector, an integrated reporting system is likely to be a core component of any package and an efficient online banking platform is an obvious must have. There are several other distinct characteristics to the payment solutions available to the franchising sector. Franchisors, for example, can arrange group deals for transaction banking for their franchisees via banks such
“
The increasing number of payment channels means there is no one-size-fits-all solution for franchisors or franchisees seeking to adapt their business model to this new environment.
”
as NAB which include the feed set-up for merchants, franchise credit cards and bonus rates on savings. These allow franchisees to take advantage of the buying power of their franchisor to gain access to corporate-style rates on day-to-day banking. Of course, franchisees don’t just receive payments – they also make their own payments to third parties. Corporate credit cards are a foundation for this service, as is online banking which allows bulk payments.
Consider cost and access to cashflow Cost is always a pain point for business, no more so than in an environment of high inflation and rising interest rates. This applies to payments solutions as much as any aspect of operating a business, so it’s important to understand the bottom line. The pricing offered by banks can vary widely in this hotly competitive market, it’s important to consider all options. Managing cashflow is vital. If a customer pays online, how quickly does that money hit
“
Managing cashflow is vital. If a customer pays online, how quickly does that money hit the business account? Or if another pays via a merchant’s terminal, is the cash settlement complete within the same 24 hours, or do you need to wait until the following day to access it? .
”
setup cost and don’t require a separate terminal. Same day settlement is still provided, and all payments are secure. The fact there are no minimum contract terms makes it an ideal option for occasional use and the technology has the added advantage of offering data insights that can help establish sales trends.
the business account? Or if another pays via a merchant’s terminal, is the cash settlement complete within the same 24 hours, or do you need to wait until the following day to access it? Most banks tend to provide same-day settlement to a business which holds both its merchant’s terminal and business account with them. But for those who hold a terminal with one bank and an account with another, settlement is usually on a next-day basis.
Have a contingency plan All businesses need a backup in case a merchant terminal goes down due to an outage, or there is another technical issue that could cause a potential loss of sale. For a small business, this plan B could be as simple as a contactless solution which allows users to operate a phone as a payment terminal like NAB Easy Tap. Such solutions are on offer with no up-front
Rapid advancements in technology have without question transformed the manner in which Australians expect to make and receive payments. The advent of the National Payments Platform – or the system which allows fast payments to occur within minutes – has further changed peoples’ expectations of how everyday transactions should occur. The good news for the franchising sector is that major Australian banks are at the forefront of these developments – and able to support business in their efforts to maximise the opportunities on offer. business franchise MAGAZINE 19
spotlight on service: Points4Purpose
Points4Purpose The Loyalty Platform That Gives Back! engagement and repeat purchases as well as support the many worthy community causes. Director and founder of P4P, Ivan Schwartz, recognised the widespread need amongst retailers across the board to revitalise what can best be called ‘flat-lining’ loyalty programs by unlocking unredeemed points and by creating a new social exchange currency that genuinely champions customer choice. Ivan’s personal journey in responding to his son’s early autism diagnosis was another important factor in developing P4P as a social exchange platform to support the many worthy causes in our community.
Ivan Schwartz Director and founder of Points4Purpose
Points4Purpose (P4P) enables participating retailers to offer cashback as a reward and for customers to then spend their reward as they choose or to support a charity of their choice. This powerful platform opens up the unique opportunity to drive renewed customer 20 business franchise MAGAZINE
With the final cardlinking integration phase now completed (supported by Visa and Mastercard), P4P has been in operation in Australia for 12 months with over 500 merchants now on board and more than 2000 charities reaping the benefit derived through this powerful fundraising channel. So, how does P4P work? The platform is enabled simply by registering the merchant ID on your EFTPOS terminal/online payment gateway. The benefit of this is that no IT integration is required! The platform enables customers to participate by simply linking their membership to their preferred payment card. Furthermore, as the solution is built on
platform provides retailers “ The with access to customer data and spend habits, enabling the management of promotions across all stores from a central point, thereby maximising storewide impact.
”
Magento, it is able to be easily deployed for any retail network. The platform provides retailers with access to customer data and spend habits, enabling the management of promotions across all stores from a central point, thereby maximising store-wide impact. In the rapidly evolving world of customer loyalty, ‘cashback is king’. A loyal customer represents a relationship for life and this is where the power of P4P is found. Ivan explains “People are tired of earning points that they find difficult to redeem. At its core is the basic principle that the easier it is for customers to redeem their rewards, the greater the chance there is to retain them to underpin retail growth” says Ivan. Franchise networks interested in engaging their local communities can now also measure the impact that this can have in growing their bottom line! For customers, knowing that
People are tired of earning points that they find “ difficult to redeem. At its core is the basic principle that the easier it is for customers to redeem their rewards. ”
every time they shop with a particular store, they can support a cause that is personal and meaningful is a major differentiator to other loyalty programs. “It’s a win, win, win” Ivan explains “If you make it difficult for your customers to redeem, they will move on. It’s very clear, redemption is retention, so why not make it easier for your valued customers?’ P4P reinforces the importance of customer retention and that’s where its true long term value can be found. “Growing the lifetime value of a customer is absolutely key for sustainable growth” says Ivan. “What we’ve
found is that the vast majority of the cashback reward earned is typically spent back with the store that the customer made the purchase. By ‘liberating’ the customers’ rewards, you actually open up opportunities to reengage with the customer – and that’s a game changer!”
Retailers can decide who they want to include in their network and who they want to exclude, presenting a powerful platform to collaborate with other complementary businesses. This can open up cross promotional opportunities, benefiting all parties.
The impact is measurable to the dollar. By charging a percentage of what is known as the ‘Platform Fee’, P4P can establish exactly what uplift in turnover is required for breakeven – and beyond. Unlike many other marketing campaigns the success is quantifiable.
P4P dovetails with current loyalty programs by enabling points to be exchanged for cash. Merging and complementing existing systems is key as it makes redemption easier, driving engagement, average basket size and frequency. Millennials and Gen Yers can be actively reengaged through the P4P platform as it is these groups in particular who are motivated by a digital, easy to access cashback system – especially one through which donations can be made to a personal charity of choice. “Giving people the choice of where their hardearned cash can be spent or donated makes a huge difference” says Ivan. Local football teams, schools and community centres can all benefit – as does your business by getting behind them!” P4P enables customers to support their favourite cause every time they shop enabling customers to see the results of their philanthropy in a tangible way, and in so doing, grow their engagement with participating retailers, living the P4P ethos of ‘Get more, Give More!’ https://points4purpose.com.au/ business franchise MAGAZINE 21
women in franchising: Sonia Shwabsky | CEO | Kwik Kopy Australia
22 business franchise MAGAZINE
From Digital Disruption to Third World Challenges:
A Female Leader’s Pioneering Path from Franchisee to CEO Sonia Shwabsky’s professional narrative is defined by not only her transformative milestones in the franchise world but also her ability to adapt, innovate, and lead in diverse and challenging environments. While her journey through the franchise landscape, especially her groundbreaking establishment of the Dale Carnegie Training franchise in Nicaragua, speaks to her visionary leadership, other pivotal moments have shaped Sonia into the dynamic leader she is today. A crucial chapter in Sonia’s career was her time at a fast-growing Digital Media Agency. Here, she stood at the cutting edge of Data and Marketing technology, navigating a business experiencing an explosive growth rate of 1000% year on year. This rapid expansion demanded not just strategic oversight but an agile approach to harnessing emerging technologies for real-world business solutions. Furthermore, her stint in a third-world country provided Sonia with invaluable lessons. In an environment where resources are scarce and challenges are magnified, she honed her ability to resonate with diverse groups of people, tapping into their motivations and aspirations. This experience fostered her knack for problem-solving, instilling a relentless drive to think outside the box daily. Now, as the CEO of Kwik Kopy Australia, Sonia showcases her enriched perspective, blending corporate discipline with her profound appreciation for human-centric leadership. Her role in leading KingGee to its ASX-listed status further emphasises her strategic prowess and ability to execute large-scale transformations.
“
At the heart of Sonia’s leadership lies a deep commitment to diversity. Under her helm, Kwik Kopy Australia became a beacon for inclusivity, with a recruitment process tailored to reflect the rich tapestry of society.
focus has always been on competence “ Myand delivering consistently. By choosing environments that resonate with her values and cultivating a robust support network, Sonia continues to inspire and lead by example.
”
In navigating a largely male-dominated landscape, Sonia’s philosophy remains rooted in meritocracy. “My focus has always been on competence and delivering consistently,” she affirms. By choosing environments that resonate with her values and cultivating a robust support network, Sonia continues to inspire and lead by example. At the heart of Sonia's leadership lies a deep commitment to diversity. Under her helm, Kwik Kopy Australia became a beacon for inclusivity, with a recruitment process tailored to reflect the rich tapestry of society. For Sonia, diversity is more than just a buzzword—it's the driving force behind creativity, innovation and meaningful decision-making. Reflecting on her journey, Sonia believes female leadership introduces a nuanced and empathetic approach to business. “It's about adding feeling and thought to the table,” she muses. This blend of emotional intelligence, coupled with a relentless drive marks Sonia's leadership style. For those aspiring to carve their own path, Sonia offers a nugget of wisdom: “Trust in your capabilities. Embrace continuous learning, take calculated risks and believe in your intrinsic value.” Sonia Shwabsky's story serves as a beacon, illuminating the path for those who seek to meld innovation with empathy and strategic vision with inclusivity. Through her multifaceted experiences, she’s not just reshaping industries but also redefining what it means to be a transformative leader in today's ever-evolving global landscape. v
” business franchise MAGAZINE 23
expert advice: Seva Surmei | Principal in the Transactions Team | DMAW Lawyers
Landmark Review: The Future Of Franchising In Australia
Australia’s franchising industry has reached a pivotal moment. As the sun sets on the current Franchising Code of Conduct and the Commonwealth Government prepares to deliver the findings from a comprehensive review of the Code, one thing is for certain: the industry has an opportunity to take stock of the past, examine the present and shape its future. With the Code’s expiration nearing in April 2025, this review is more than just routine maintenance; it’s a crucial examination of the practical implementation and limitations for franchisees, franchisors and suppliers across the system. 24 business franchise MAGAZINE
Under the spotlight Specifically, the review is seeking to address the impact of recent changes to the Code including: • The general fitness for purpose of the Franchising Code (noting the existing Franchising Code is set to sunset on April 1, 2025 and action to extend the Code is required). • The role of the Australian Competition and Consumer Commission and the Australian Small Business and Family Enterprise Ombudsmen in supporting enforcement and dispute resolution under the franchising regulatory framework. • The role of the Franchising Code in regulating the automotive sector, including selected protections exclusive to dealerships and the effectiveness of reforms in 2020 and 2021.
• The impact of 2022 reforms which increased certain penalties available under the Code, including some up to $10 million, and introduced the Franchise Disclosure Register. (Source: Small and Family Business Division, Treasury, Commonwealth Government)
The review, led by Dr Michael Schaper, has brought together four separate reviews into one process to allow effective consideration of varying factors and reduce duplication for key stakeholders. By the end of December this year, existing and potential franchisees can expect an outline of adjustments to business practices and the adaptation of new laws that may come into effect over the next 12 months and propel the industry into its next era. In the meantime, franchisees and franchisors must ensure they comply with recent updates and amendments to the Code.
Franchise Disclosure Register One of the notable changes leading up to this review was the introduction of a public register for franchisors in November 2022. Most franchisors would have recently updated the information on the register before 14 November 2023. Potential franchisees should ensure available information is utilised in evaluating business opportunities. The register offers a simpler comparison between different franchise systems, in terms of costs, initial investments and terms of agreement. However, the effectiveness of the register is a key area of review to evaluate whether it is serving its primary purpose of empowering potential franchisees with transparent and easily accessible information.
Seva Surmei is a Principal in DMAW Lawyers’ transactions team, specialising in franchising, licensing and distribution. She is also secretary of the Franchise Council of Australia (South Australian chapter) and a Women in Franchising committee member. Seva was awarded “Lawyer of the Year” for Franchise Law in South Australia in 2022 and 2024 and named in the “Best Lawyers in Australia” list since 2021. DMAW Lawyers is a leading South Australian based commercial law firm providing services throughout Australia. Seva Surmei – https://dmawlawyers.com.au/team/seva-surmei/ P: +61 421 931 777 | E: ssurmei@dmawlawyers.com.au | W: https://dmawlawyers.com.au/
Compliance with disclosure requirements At this time of year, most franchisors would have recently completed their disclosure document update in accordance with the Code’s requirements. Franchisors are obligated to update their disclosure documents within four months of the end of the financial year. For most franchisors, this deadline is 31 October. As the disclosure document is mostly geared towards prospective franchisees, existing franchisees won’t automatically receive an updated disclosure document unless they request a copy, but they should still expect to receive the necessary documentation as set out in the Code. This includes the marketing fund financial statement and audit report.
Disclosure of materially relevant facts Additionally, franchisors must arrange updated financial reports or alternatively a director’s statement and audit report relating to the franchisor’s financial position. For prospective franchisees about to sign an agreement between the end of June and the release of the updated financial information, there is an additional obligation for the franchisor to supply the updated financial information if the final document is in their possession. Therefore, both franchisors and franchisees must meticulously navigate these requirements to avoid potential pitfalls before the franchisee signs the franchise agreement. The intricate timing can easily be overlooked and could lead to a significant ‘super penalty’ of up to $10 million for franchisors who do not comply.
Issues facing the industry Other aspects facing the industry include worker shortages, supply chain issues and increasing regulation including recent changes to unfair contract term laws. While these are not new concerns or unique to the industry, they are focal points for franchisees and franchisors alike. Franchising makes a significant contribution to the Australian economy, with franchised businesses turning over approximately $170 billion each year and employing more than half a million workers. And franchising in Australia is vast and diverse, covering a wide range of sectors from cafes and services to car dealerships and other automotive businesses. With the impending Franchising Code of Conduct Review findings, many questions will be answered. What changes will be proposed, and how they will impact franchisees, franchisors and the industry as a whole? Will the review meet its goal of leading to a streamlined and more transparent franchise system, and reducing regulatory burden?
It can be daunting to navigate “ contracts and regulatory changes, so seeking the advice of an experienced franchise lawyer is recommended.
”
The Australian franchising industry is evolving rapidly. With careful consideration and constructive change, franchising will maintain its strength as a vibrant and vital contributor to Australia’s economic and business success. It can be daunting to navigate contracts and regulatory changes, so seeking the advice of an experienced franchise lawyer is recommended. Existing and prospective franchisees should obtain professional legal advice about how any updated obligations may impact their business, including rights and processes, and what changes can be made now to ensure compliance with the existing changes. business franchise MAGAZINE 25
Don’t miss an issue
Get the App cover story: Soul Origin
Soul origin’S nationwide expanSion ShowS impreSSive growth as they celebrate the opening of their 150th store
Soul Origin is not just a brand; it is a friend to Aussie food lovers. Back in 2011, they set out on a mission, to shake up the fastfood industry and create a space where people could grab food that is not just quick but also fresh, wholesome, and delicious.
using only the best quality coffee beans that are ethically sourced. With their gourmet options, Soul Origin proves that you do not need to compromise taste for health. Their unwavering dedication to quality and freshness distinguishes Soul Origin from the typical fast-food outlet. Their extensive menu offers a variety of options created for a variety of dietary preferences.
In addition to the Soul Origin stores, the brand also provides a catering service. It is not just your typical catering service; it is a culinary experience that brings the wholesome goodness of delicious, healthy food to your doorstep. Soul Origin’s catering services offer consumers a unique opportunity to host gatherings at home or work with a delectable twist. From vibrant salads and
Now, with 150 stores across the country, they have become the go-to spot for foodies looking for quality food on the go. And guess what? They are just getting started. Their secret? Keeping things simple. Soul Origin believes everyone deserves delicious and nutritious meals, no matter the time or place. That is why they use only the best and freshest ingredients to create mouthwatering meals that are not only new and exciting but also good for you. So, if you are after a food experience that’s as delightful as it is nourishing, Soul Origin has got your back. From crisp and colourful salads filled with seasonal vegetables to hearty soups that warm your soul, their menu caters to diverse palates. The sandwiches and wraps are of the freshest quality. The barista-made coffee offers the perfect pick-me-up by 12 business franchise MaGaZine
“
From crisp and colourful salads filled with seasonal vegetables to hearty soups that warm your soul, their menu caters to diverse palates. The sandwiches and wraps are of the freshest quality. The barista-made coffee offers the perfect pick-me-up by using only the best quality coffee beans that are ethically sourced.
”
gourmet wraps to artisan sandwiches and grazing platters and, every dish is a testament to their dedication to creating not only sumptuous but also nutritious meals. This ensures your guests can indulge in delicious fare without compromising their health. Soul Origin’s purpose is to create and serve nutritious, delicious, and satisfying food that is made fresh daily in-store and only using some of the best local ingredients from Australia’s farms. Not only are Soul Origin sourcing the best quality ingredients and produce but they also help support local businesses through this process. Soul Origin sources ingredients from some of the best farms across the country allowing Soul Origin to include some of the freshest and
To come this far and being able “ to grow to 150 stores nationwide is incredible and we are thrilled. ”
delicious ingredients for their customers. Within their support for local farmers, Soul Origin is also supporting local communities and local economies. With a deep-rooted commitment to transparency, Soul Origin takes pride in sharing the origins of their ingredients, from the farm to the table. This unique approach not only ensures the traceability of their food but also supports their dedication to local sourcing. The “Source of Origin” initiative is not just a tagline; it is a testament to Soul Origin’s unwavering commitment to providing the freshest, healthiest sourced ingredients on the market. Hao Quach Managing Director shares, “To come this far and being able to grow to 150 stores nationwide is incredible and we are thrilled”. At Soul Origin we have always taken the lead from our customers, listening cover stor to what they perceive as healthier, freshery food, and taking the feedback into actionable steps to ensure ingredients and produce on our menus and in our recipes are not only fresh but are the best food offerings possible.”
As they grow, they bring with them a promise that nutritious food should be accessible to all. As Soul Origin continues to expand, it is not just the number of stores that matters; it’s the positive impact they make for their customers and the broader community. In a society where fast food is so prevalent, Soul Origin stands out as a beacon of health and wholesomeness, providing an option for a better, healthier lifestyle choice.
VOL 18 ISSUE
For more information, you can visit the Soul Origin website at www.soulorigin.com.au to keep updated on all the amazing work they do as well as browse their delicious menu offerings.
celebr ate To learn more about Soul Origin ope of the ir theand theirnin franchising opportunities g 150th sto contact National Franchise Sales re Manager, Karla Shand on
Soul Origin has set its sights on further expansion and innovation. Their commitment to providing healthy, fresh food will continue to inspire changes in the fast-food industry.
landma
+61 0439 611 962
rk revie
the futu re business franchise MaGaZine 13 australi of franchis ing in a
latest
in fran
w
news
chising
the impa ct of data pr fr anch ivacy in ising special
feature
food an franchisd ing
ma ximisi fr anch ng ie owered succes
with ai-p
chatbots
s $4.95 (AUD),
www.businessfranchiseaustralia.com.au
$7.95 (NZ)
inc. GST.
01 nOV/dE c 2023
VOL 18 ISSUE 01 NOV/DEC 2023
Essential Ingredients
To Create A Successful Food Franchise Business FOOD AND FRANCHISING
IN THIS POST COVID RECOVERY
PEOPLE ALWAYS NEED TO EAT, SO A FOOD FRANCHISE HAS TO BE GOOD, RIGHT?
latest news
FOOD franchisING
business franchise MAGAZINE 27
Want to stay on top of the latest neWs and What’s happening at the forefront of franchising?
Franchise BUSIneSS
AU S TR A LI A A n d n e w z e A L A n d
SubScribe To Business Franchise Australia and New Zealand’s newsletter and receive all the latest franchising news delivered straight to your inbox!
To subscribe visit: www.businessfranchiseaustralia.com.au 28 business franchise MAGAZINE
conte nts
food & fr anchising In Every Issue 30 What’s New! Announcements from the Industry
Snapshot 36 Gami Chicken Gami Chicken Increasing Value for Customers and Business 42 Graze Craze Graze Craze Launches its First Australian Location in St Ives, Sydney 46 Durk’s Café + Eatery Joins Forces with Ampol to Feed Hungry Travellers
32
Expert Advice 32 Tony Meredith: Essential Ingredients to Create a Successful Food Franchise Business 34 Brian and Prue Keen: Food and Franchising in this Tricky Post Covid Recovery 38 Robert Toth: Food in Franchising 2023/2024 44 Doug Downer: People Always Need to Eat, So a Food Franchise Has to be Good, Right?
34
38
36
46 business franchise MAGAZINE 29
franchising feature
Driving on Thru: Zarraffa’s Opens in Maryborough Chip chip hooray! Say goodbye to soggy chips and hello to Domino’s NEW Crispy Chips
Australia’s leading specialty coffee retailer, Zarraffa’s Coffee, has opened the doors to its highly anticipated new store and drive thru in Maryborough on the Fraser Coast. This exciting addition to the Zarraffa’s Coffee network further strengthens the brand’s presence in the region and reinforces its commitment to delivering exceptional coffee experiences.
In a bid to solve one of the food delivery industry’s most crushing customer experiences, Domino’s has today unveiled its solution to soggy chips - Australia’s first ever Crispy Chips with Pizza Salt designed to be delivered. Domino’s new and improved Crispy Chips are the next step in the Company’s evolution of Oven Baked Chips; with the Crispy Chip tried and tested to withstand travel, maintain temperature and the same level of crunch you’d expect on Pick Up – except delivered, straight to your door! Domino’s ANZ Chief Marketing Officer Allan Collins said Domino’s had ‘cracked the code on crunch’. “We’ve all been there, waiting to receive a delivery of hot chips, only to open the box and be disappointed yet again by wet, soggy potato with no crunch, and even less flavour,” Mr Collins said. “The end result is a Crispy Chip that holds its heat and texture during the delivery process, so that when it arrives to the customer, they receive exactly what they ordered – Crispy Chips!” The best part? Domino’s new Crispy Chips with Pizza Salt are available nationwide for just $6.50 delivered. Here to redefine ‘fry-day’ nights, elevate your afternoon snack game, and make your taste buds tango with delight – Domino’s new Crispy Chips with Pizza Salt are simply ‘the chip’. To find your nearest Domino’s store, visit www.dominos.com.au 30 business franchise MAGAZINE
Seasoned franchisees and cousins, Hoshang Gala and Chirag Thakur, have come together as business partners to open Zarraffa’s Coffee Maryborough after more than a decade of combined operating experience in stores throughout Queensland. Mr Gala’s first franchise was at Helensvale on the Gold Coast in 2015 before embarking on a second store, Hendra at Brisbane Airport, in 2019. While Mr Thakur started as a store manager at Palm Beach on the Gold Coast before owning his first franchise in 2022 at Sugarland in Bundaberg. With their passion for coffee and unwavering dedication to providing exceptional customer service, Mr Gala and Mr Thakur are looking forward to bringing their experience and passion for Zarraffa’s Coffee to a town rich in history. Local residents and visitors can expect a range of Zarraffa’s Coffee’s signature blends and specialty beverages, expertly crafted by skilled baristas who undergo rigorous training to ensure every cup meets the brand’s high standards. In addition to providing an exceptional coffee experience, the Maryborough store will also offer a delectable assortment of freshly baked savouries, sweets, and snacks, making it the ideal stop for a quick bite or a leisurely coffee break. Zarraffa’s Coffee Maryborough is located at 49 Ferry St, Maryborough. Opening hours: 5am – 8pm, 7 days a week. For more information about Zarraffa’s Coffee visit: www.zarraffas.com
Lone Star Rib House & Brews Announces New Geelong Venue, Uday Kumar Appointed Franchisee Lone Star Rib House and Brews has this week announced a new store location, with the opening of its Geelong store, marking the hospitality chains’ first Victorian venue. The move comes as Lone Star experiences rapid growth amongst current NSW and SA markets. Uday Kumar, comments, “With a background in hospitality, I was personally intrigued by the idea of slow cooked, Texan-style ribs. There is no other venue in Victoria that offers this style of cuisine and I wanted to introduce it to Victorians and I’m positive they’ll love it!” With years of experience in hospitality, Kumar is a
passionate entrepreneur and is committed to exploring new ideas and perspectives, commenting: “I like to keep myself informed about the latest trends and developments and I’m always eager to learn and grow. I believe in the power of positivity and strive to spread it wherever I go.” Lone Star Rib House and Brews currently has 12 locations across NSW and SA, and a further 4 stores across WA and QLD. Gary Blyton, General Manager and Franchisor at Lone Star Rib House & Brews NSW, VIC, SA, TAS says, despite challenging cost of living circumstances, our franchise footprint has seen remarkable growth over
the last 12 months, with the launch of two new venues in South Australia, namely Gilles Plains and Munno Parra. “We have a very loyal customer base, which is testament to the value of our offering, the creativity of our menu and our focus on exceptional customer service which remains consistent throughout each of our franchises. Over the past year we have placed a large focus on delivering an affordable menu, to ensure the brand remains relevant and we’re incredibly excited to be bringing several new stores across the country, and expanding our customer base into additional Victoria locations with another two restaurants coming to Hallet Cove & Hawthorne. It’s an exciting time.” The brand prides itself on good ol’ fashioned hospitality accompanied by mouth watering food. Signature menu items include Lone Star’s 8-hour slow cooked ribs, Southern Style fried chicken burger, and their Golden Carolina spiced chicken wings. Lone Star also offers vegetarian options and trending salads, ensuring the menu is continually evolving and offers something for everyone to enjoy. Franchise opportunities are currently available at multiple locations across NSW, SA, VIC & TAS. For further information or to receive a copy of Lone Star’s franchisee kit, please email: gary@lonestarribhouse.com.au
Zambrero’s Expansion Continues Zambrero, Australia’s largest Mexican quick-service restaurant group, has opened a new flagship restaurant in Kings Cross, Sydney. The new location will be increasing the brand’s presence across Sydney’s CBD, while also showcasing Zambrero’s new, refreshed visual identity. The Kings Cross restaurant adds to the existing network of over 200 Zambrero restaurants across Australia, as well as a number of international locations across the U.S., the UK Ireland & New Zealand. As a business, Zambrero is on an ambitious growth trajectory with plans to significantly expand the number of restaurants over the next five years. “As an Australian founded business, we are proud of our continued expansion across the country. With the arrival of our latest restaurant in Sydney’s CBD, we will be able to deliver even more exceptional QSR experiences to our customers every day.” says Matthew Kenny, CEO, Zambrero.
The opening comes hot off the heels of the news that Zambrero reached a new major milestone as part of their Plate 4 Plate social mission; distributing over 70 million meals to help end world hunger. Since the initiative’s inception, Plate 4 Plate has created a global movement to end hunger, mobilising Mexican food lovers across Australia and the globe to give back, with every regular or big burrito, bowl, retail item or kids Zam Box purchased at Zambrero restaurants across the globe resulting in a meal provided to someone in need. The milestone comes as Zambrero gets ready for their annual Plate 4 Plate Day in mid-October, where Meal Packing events will be held across Sydney, Melbourne, Perth, the Gold Coast and Adelaide. With a goal to smash last year’s record of packing over 430,000 meals in one day, this milestone sets the stage for volunteers to pack even more meals for vulnerable communities around the world.
To celebrate the Kings Cross Grand opening on Saturday 19 August, the restaurant offered customers a one-day-only offer of $5 classic regular burritos and bowls. business franchise MAGAZINE 31
franchising feature
EXPERT ADVICE: Tony Meredith | Director and Head Coach | Tony Meredith Coaching
Essential Ingredients
To Create A Successful Food Franchise Business
The food industry remains a heavyweight in the world of franchises. Yet, as any seasoned franchise business owner knows, possessing a quality product isn’t the be-all and end-all. Growing and operating a food franchise requires a fusion of passion, strategy, and adaptability.
As a Business Coach, I’m fortunate to have a front row seat to what’s working in franchise businesses right now. In this article I share a number of strategies that food franchise business owners can devour and elevate their business to new gastronomic heights.
Understand your target market Know your customer. Australia’s multicultural society means diverse food preferences. Dive deep into demographics, preferences, and dining habits. For instance, if you’re opening a burger franchise in Sydney’s east, recognise the health-conscious vibe. Offer options like vegan patties, glutenfree buns, or a gourmet fish burger catering to local seafood lovers. Customise, adapt, and cater to your target audience. 32 business franchise MAGAZINE
Prioritise digital presence In today’s digital age, a captivating online presence is paramount. Utilise the internet and social media to make your brand and products visible, engaging, and accessible online. Customers buy with their eyes, therefore leverage digital marketing to showcase your mouth-watering dishes. Another opportunity is to collaborate with Food Influencers and have them share appetising visuals of your food products to their followers, creating an immense buzz online.
Focus on quality and Consistency Regardless of the number of outlets in your franchise, consistency is the backbone of any
franchise. Ensure that the dining experience in Brisbane mirrors that in Perth. Regular training sessions, comprehensive operation manuals, and consistent quality checks can help maintain uniformity. If you’re an individual franchise operator, ensure that your outlet serves consistent, high-quality food, that is in line with the brand values and standards.
Implement a loyaltyprogram As a food franchise business owner, it’s important to recognise that customers have copious food options. Reward your regular customers to ensure they continually come back. Apart from selling high quality menu items or providing outstanding customer service, the use of loyalty promotions is an effective way to convert occasional visitors
Tony Meredith Coaching focuses on helping business owners Grow Sales, Increase Profits, and Regain Time. Tony Meredith Coaching started in 2018 and works with hundreds of small-medium businesses across Australia, in the areas of Franchising, Retail, Services, Manufacturing, and Trades. Tony has over 25 years’ experience working for some of the world’s largest corporations in a variety of senior sales and leadership roles. Contact Tony and his team if you want to grow an outstanding franchise business. info@tonymeredithcoaching.com.au https://tonymeredithcoaching.com.au/ https://www.linkedin.com/in/tony-meredith-coach/ https://www.facebook.com/tonymeredithcoaching
finishes when they contribute to the national fund. Wrong! Australians are community minded. Supporting local events or causes can result in immense goodwill. A pro-active and sustained Local Area Marketing program will increase the individual franchise business owners’ personal brand as a dynamic member of their community, whilst increasing the overall brand awareness of the franchise and the role it plays in the community.
Prioritisesustainability Consumers are increasingly conscious of sustainability. Franchise businesses need to embrace this movement by incorporating eco-friendly packaging, reducing food wastage, and sourcing ingredients from local producers. These behaviours demonstrate a commitment to both the environment and local communities. Franchise business owners that emphasise sustainable practices not only contribute to the planet but also appeal to a wider audience.
Franchisee support and Training into regulars. Brands like Starbucks thrive due to their loyalty programs, which offer freebies, discounts, and exclusive deals.
Diversify the menu While the menu classics remain beloved, a periodic menu shake-up keeps things fresh and exciting. Australia's seasons are distinct, and each brings unique produce and tastes. Adapting your menu seasonally can give your existing customers a reason to come back to your restaurant or help appeal to a wider audience.
The growth of your franchise business is closely tied to the quality of service. Constant training ensures that every outlet offers consistent product quality, service, and overall customer experience, which strengthens your brand's reputation. Provide regular training, both at the onset and periodically thereafter. Brands like McDonald’s, with its Management Training, set the gold standard in franchise training, ensuring global uniformity.
Diversify revenue streams
Engage with the community
Placing all your eggs in one basket can be a risky proposition for a food franchise, hence an opportunity is to diversifying revenue streams beyond the primary service. This ensures a more resilient financial structure, whilst tapping into various customer needs.
A lot of franchisees believe their marketing
Food franchise revenue diversification could
Another alternative to spice up your menu is to introduce limited time food items that align to events, ie. Australia Day, Mother’s Day, September Footy Finals.
include catering services, merchandise, cooking classes, or even meal kits. These addons can boost revenue and strengthen brand loyalty.
Customer feedback is gold Always listen to your customers and staff, and view any constructive criticism as positive. Incorporate feedback mechanisms, be it through comment cards, online reviews, or direct interactions. Listening to customers and staff can offer insights into areas of improvement and spark innovative ideas.
Conclusion Investing in a food franchise can be a highly successful business opportunity. The best food franchise business owners are not only passionate about the food they serve, but the people they serve it to. Success in a food franchise requires passion, innovation, dedication, and adaptability. Get these ingredients right and you don’t just feed people’s stomachs, you feed their souls. v business franchise MAGAZINE 33
franchising feature
EXPERT ADVICE: Brian Keen | Founder | Franchise Simply
Food and franchising in this tricky post COVID recovery
wellness and heathy eating is in direct conflict with much of the offerings from the fast-food sector. So ‘Healthy Food’ Magazine sent a dietitian off to find out just how difficult it was to eat healthy in Australia’s fast-food chains. The result is surprising. There are better choices, and you can make them even better by asking for extra veg and skipping the fries. Yes, even Maccas has a healthy grilled chicken wrap that meets the requirement.
We deal with food franchises a lot. Mostly fast food but restaurants as well and over the years we have watched many as they take their journey as a franchise group. It’s exciting. This year though, we are seeing a couple of trends which we think will lead the industry and set some apart from others.
First – the growing trend towards eating healthier And yes, even Maccas has jumped onto this band wagon which means it’s important. Like many other trends now, this trend has been around for a while, but it was COVID which has given it a big push. People are concerned about wellness, and it is affecting every area of their lives – fitness, food and 34 business franchise MAGAZINE
drink, mental health, lifestyle – this list goes on. Unsurprisingly, fast food does not have a reputation for healthy eating though. And, of course, some of the big names are giving this some thought. “Most often, when we ask consumers about wellness, what they eat and drink sits at the top of the list,” says Mark Brandau of market research firm Datassential. “They mention things like clean labels, food quality, and weight management.” As a result, in the States and it’s beginning to show here, some fast-food brands are paying attention to fresh ingredients, publicising nutritional data and sourcing information, addressing different dietary restrictions, and putting in substantial resources towards R&D around increasing nutritional value. However, did you know that Australians eat takeaway or restaurant food an average of four times a week? And this move towards
The bottom line is, people want an element of choice in what they order and in response, some brands have increased customers’ ability to customise, replace, and substitute items, often at the expense of service speed and streamlined operations. Vegan Margherita or Vegan Spicy Vege Supreme or make your own veg with no cheese from Domino’s anyone?
Healthy eating restaurants The thing is this trend is not going away. Look here at Soul Origin – as they say - “Our philosophy is that everyone deserves to eat fresh food, every day… after all – your body deserves it. We have a vision to lead the way in re-educating the world about how they think about fast food.” Their salad bars are a relief to see at most airports and shopping centres around Australia. No need to go home after an overdose of fast food following a bout of travelling. Sushi Train and Rolled with their offerings of Pho and rice paper veg filled rolls are other examples.
The last we ran was a disaster. Not the fault of the staff attending to us but because they had given us new restaurant staff at the last minute. And they were given tasks which they had no idea how to do because they had not been trained in them. The room was not cleared during breaks, the tea water was cold, the coffee even worse, things were not delivered, we couldn’t get the AV to work. Needless to say, the staff concerned were distressed with the situation because they knew they just didn’t know what to do and relied on us to tell them – often when it was too late. Over the years we have helped many budding food-based franchisors put franchisee operations manuals in place. Without exception the budding franchisor said, ‘This is a waste of time – we train on the job’.
Just remember though, it is associated with a wider trend for sustainability, plant foods, vegan, and vegetarian eating. This is a growth area and the growing customer segment looking for it will only support outlets which meet their values. Customers are also looking for other things to go hand in hand with this movement such as a significant reduction in food waste, sustainably sourced ingredients, sustainable packaging. And around the corner in Australia, and well-engrained in Europe, is the carbon footprint. These values need to be shown front and centre for this market. What this means is there is room for improvement in both established and new restaurant groups and the space for specialist healthy eating offerings and restaurants is wide open.
Service with a smile
Since COVID, we have watched the food industry struggle with untrained staff and no experienced managers to train them on the job. You are hoisted by your own petard people. Put in good operations manuals and give your new managers and newbie staff a chance. This is not something that is just a pet niggle of ours. QSR Magazine has a review each year of the top 50 QSR restaurants in the US and one of their categories is guest satisfaction. The top 50 restaurants fall into three groups – leaders, stragglers and chasers. Last year the leaders held their own in a difficult year for staffing as everyone knows. The stragglers and chasers, however, who form the vast majority in this list, fell backwards in scores given and the gap between them and the leaders is significant. Why? Well, QSR also looked at ratings for staff satisfaction.
Brian and Prue Keen Brian Keen has been involved in the franchise industry for more than 30 years and Prue has been involved with systems and business for as long. Together they founded Franchise Simply, Systems2Grow and Microloan Foundation Australia. Brian’s 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 combined with Prue’s structured approach has been fed into Franchise Simply, helping today’s SMEs and Franchisors grow their business by franchising. www.franchisesimply.com.au | www.systems2grow.com
And no surprise there is a link between the two lists. Leaders measured higher staff satisfaction and retainment than the others along with higher guest satisfaction. Maccas with their strong documented systems were at the top of the list closely followed by other big names – Subway, Starbucks, Burger King, Domino’s all in the top 10. Look after your teams folks; give them good documented systems, train them well and support them to give your guests the best service possible. And make sure this includes both your franchisee partners and their staff teams. Then everyone will be happy – staff will stay, guests will like the service – your outlets will be more profitable, and your franchisees will be glad to pay you the royalties you deserve. v
A second trend we see does not have such a happy story to tell. Following COVID, there is no doubt there is a significant shortage of staff for the hospitality industry. Yes, we know the Government is finally doing its best to bring in visa-workers and new migrants to meet this need. But you know what – the food industry across the board is not just finding it hard to get staff - it is really feeling the loss of its experienced managers – and it shows. Probably the worst experience we have had recently was at an event run by us at a major hotel chain in Surfers. We have been running these for years in the same hotel and used to know the staff by name. business franchise MAGAZINE 35
franchising feature
snapshot: Gami Chicken
Gami Chicken Increasing Value for Customers and Business
Since launching its first restaurant in Melbourne in 2006, Gami Chicken now boasts 38 casual dining restaurants across Australia, each serving highquality traditional Korean family recipes mixed with a dash of Melbourne Laneway culture. The company is targeting $50 million in brand revenue through its franchise-based business and is pushing towards four new locations in the remaining three months of 2023. To achieve these ambitious targets, increasing value to customers is an objective which drives Jun Lee, Gami Chicken’s Co-Founder and Executive Director, especially with inflationary pressure impacting his costs, and more importantly, the ability of customers to enjoy Gami Chicken. With inflation sitting between 6-8% over the past 12 months, new individual dishes, lunch menu items, and share plates have been launched to resonate with customers and maintain and drive revenue. “Value has been created without increasing menu prices,” said Jun, who has also avoided meal size reductions as the only way to appeal to price conscious customers. “New menu items and revised inclusions ensure customers receive greater value, while our store owners can maintain their profit.” 36 business franchise MAGAZINE
Individual Menu Options and Price Points while Building Korean Identity Creating value for customers and franchisees is always a challenge, but one that was amplified since Covid-19 and more recently, cost of living increases. The “shareability” of Gami Chicken’s meals, while preserving the Korean value of ‘sharing’ meals and adding value to group dining, was often misunderstood by some who saw share plates of chicken for $50 as prices for an individual dish and quickly moved on. “To improve value and communicate with customers better, we enhanced our signature menu share dishes,” said Jun. “Introducing higher quality gourmet food while identifying alternative menu items other than sharing dishes has also assisted Gami Chicken’s value proposition.” Individual menu items offer greater choice to customers who are dining solo or as a small group, while also assisting with lunch covers. “Individual menu items such as Bibimbap and Gochujang Chicken offer healthier choices while catering to those seeking a traditional Korean dish, and lighter chicken and burger options are resonating with customers at the sub-$16 price point– so far sales of individual menu items have increased 52% since April,” said Jun. Gami Chicken’s lunch turnover has also increased 18% since the casual dining outfit began focusing on individual menu items and healthier, traditional Korean dishes.
Jun and his team focused on ensuring value continued to be delivered to guests. “As pricing remains the key determinant when choosing products, value packs and a wider range of budget-friendly menu options have delivered 254% sales growth between April and September 2023,” says Jun. Part of that success is down to providing an accessible price range of $20-$29 for customers. This price range has allowed Gami Chicken to attract new market segments. For more information visit www.innoveilgami.com.au
GLOBAL
expansion
G L O B A L E x pA N S I O N
Our GLOBAL CONNECTIONS are trusted operators in their markets and will enable a smooth entry into NEW TERRITORIES.
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. Constant changes within the codes of conduct can create a massive challenge to franchise systems
wanting to move outside of their established markets.
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.
For an initial discussion, please contact
globalpublishers@icloud.com business franchise MAGAZINE 37
franchising feature
EXPERT ADVICE: Robert Toth | Special Counsel | Sanicki Lawyers
Food in Franchising 2023/24
One year on from my article in 2022 its interesting to see how the hospitality sector has bounced back from the days of lockdowns, business shut downs and lock outs by Landlords and how digital technology has advanced in the delivery of food services. I usually start my article with a line from a song that connects to the topic…Hmm food and song…how about “I heard it through the grapevine”. Written by Norman Whitfield and Barrett Strong for Motown Records in 1966. The first recording was produced by Whitfield for Gladys Knight & the Pips in September 1967. It was also made famous by Creedence Clearwater Revival… oops I have strayed! One year on and the challenges to those in the food and franchise sector continue but at the same time new and exciting opportunities open up.
Challenges for business The key concerns affecting the sector remain: • Staff shortages; • Digital adoption competition – contactless payments; 38 business franchise MAGAZINE
• Environmental factors – green washing;
attractive in a very competitive market.
• Increased fixed operational costs and inflationary pressures;
Recent NAB research found that 4 in 10 consumers made conscious adjustments to non-essential spending such as eating out to combat the rising cost of living. This becomes a negative cycle as inflation forces businesses to raise prices.
• Regulatory costs, license and permits; • Workplace Health and safety issues such as increased staff costs; and • Making a profit! It is still the case that around 45% of businesses in the accommodation and food services sector are in desperate need of staff which has led to reducing operating hours and some businesses only offering lunch or dinner services, not both. One positive of this is that businesses now have to compete for staff and offer better and more flexible working conditions, training and other incentives to retain good staff. We have all experienced going to a café or a restaurant recently seeing the lack of table staff and training that affects the dining experience as well as the increased menu prices. Certain sectors such as fine dining restaurants have also been affected with inflation and fixed costs increasing for business. The returns to franchisees have been squeezed due to increased operating costs after also having to cover their royalty and marketing fees. Franchisors need to ensure they can negotiate competitive supply arrangements for their franchisees so that franchises can remain
The market size of the hospitality /restaurant sector in Australia is around $14.1 billion in 2023, with an expected growth rate of 1.2%. The bigger franchise systems such as Subway, Dominos, McDonalds can adapt to the market and they have resources (financial and otherwise) to manage these challenges whereas newer franchise systems may not have the same resilience. Australia is a multicultural society, embracing foods from many countries from Asia, Greece to Italy, Spain, Mexico, France, Turkiye and Lebanon and we are seeing an influx of many of these cuisines in the franchise sector.
Cost of entry The cost of entering into a new food franchise can range from low end $50,000 up to $700,000 so franchisees need to consider before committing to the following: a. Be clear about your budget – what can you afford? b. Identify if the site on offer is an A grade or C grade location.
need to ensure they “canFranchisors negotiate competitive supply arrangements for their franchisees so that franchises can remain attractive in a very competitive market.
Robert Toth is Special Counsel Sanicki 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@sanickilawyers.com.au or even call him on mobile 0412 67 37 57
”
c. Ensure you have adequate working capital to cover your first 6 to 12 months of operation (particularly where it is a new greenfield site).
An observation I asked Mark Said of MKS Group Accountants and Advisors Melbourne who acts for a number of franchisors and franchisees in the sector, as to his view on the market and he stated: “The franchise market (especially in hospitality) has undergone a period of transformation since the Pandemic. As the world gradually recovers, this industry sector is showing signs of resilience and innovation. We have seen many hospitality franchisors and franchisees adjusting their business models to incorporate not only additional health and safety measures but also major investment in technology such as mobile ordering and updated CRM technology all aimed at improving their customer experience. Going forward, we believe there will be an increased focus on sustainability and environmental responsibility as consumers are becoming more eco-conscious of their carbon footprint. Franchisors need to adapt and deliver on these consumer eco-friendly expectations. These changes will also align with the evolving preferences of today’s travellers and diners.
There is a myriad of new players in the market and they have the benefit of starting from a blank canvass with their own unique offer. Older established franchise systems have issues with their older fit outs needing capital investment and upgrade by their franchisees to their fit outs when times are already tough and having to replace aging plant and equipment. Any new franchisee needs to weigh up the option of taking up a new franchise system or buying into a long established brand. There may be some comfort for a franchisee buying into a long established, well-known brand but that may mean greater up front cost and additional cost for updating the equipment and refit of the premises and brand.
With a new franchisor you acquire new fit out, new equipment and start afresh but then you need to ensure you have enough working capital to cover the first months of operation while the business takes off. Of course, new opportunity may mean greater risk for a new franchisee.
New players in the market There are some new brands that you may not have heard of worth a look, in the food sector such as Sankalp Indian (12 outlets), Dosa Hutt (16 outlets) Monkey King Thai, Thailander (8 outlets), Dragon Hot Pot, The Lok Lok Dumpling Bar, misschu (aka Miss Chu) to name a few. We have had trends over the years with a surge in Pizza franchises then ice creameries, coffee and chocolate franchises.
In summary, we see the food franchise sector adapting to new realities, a focus on safety and technology, with a growing commitment to sustainability to remain relevant and competitive.”
New or existing franchise ? New players in the market challenge existing brands and an example of this is inMexican cuisine for example, Nando’s is a well known brand under some pressure from systems like Guzman and Gomez, Zambrero, Mex Tex. and Salsa’s. business franchise MAGAZINE 39
franchising feature
EXPERT ADVICE: Robert Toth | Special Counsel | Sanicki Lawyers
“
The well known brands have taken decades to grow and evolve and generally have the financial capital and backing to overcome challenges. They can also afford to make mistakes and recover from them, which is not the case with new franchisors.
”
Franchisees should try to find systems that have long term appeal not just a passing fad as once you have acquired a franchise there are only limited options to exit the system.
Good New Week! With all of the challenges confronting business there remains positive opportunities which can be seen in the resurgence of restaurants and the fast food sector in shopping centres, shopping strips and CBD areas.
The landlord will deal with the Franchisor who holds the lease.
their franchisor is on an expansion path or looking to reduce their franchise footprint.
For the franchisor the benefit of holding the head lease is that they control the site and their brand in case the franchisee abandons the business or they are terminated as the franchisor can retain their presence in the location.
If the franchisor has reduced their presence and converted to company owned outlets this may be a sign that the franchisor is not looking to actively grow its system.
On the other hand, the franchisor is then primarily liable to the landlord under the lease For franchisees that do hold the lease, they are primarily liable under the lease.
• If looking to take on a franchise do your due diligence on the franchisor just as much as they do their due diligence on you.
The food and hospitality sector is dynamic, somewhat fickle and highly competitive with so many options for consumer tastes.
Either way the franchisee generally has to provide a bank guarantee or security deposit which is at risk if things do not go to plan
Every franchisor even McDonalds has over the years had to reinvent their brand, offer and presence in the market.
Shopping Centres also demand store upgrades which can place a financial burden on the franchisee and this has led to negotiations with the franchisor over how those costs will be paid and funded.
The well known brands have taken decades to grow and evolve and generally have the financial capital and backing to overcome challenges. They can also afford to make mistakes and recover from them, which is not the case with new franchisors.
Lease or Occupancy License In many systems the Franchisor holds the head lease for the premises and grants the franchisee an occupancy license for the term of the franchise. There are some pros and cons to this for franchisees as under a license they have no ability to deal directly nor negotiate with the Landlord or shopping centre management. 40 business franchise MAGAZINE
Tough times? Some brands have significant capital backing which allows them the luxury to expand even during tough times. As my brother Ted of Ted’s Camera Stores fame always said – “when times are tough market harder!” This concept rings true and we see it in many sectors where many businesses retract, reduce their marketing and die a slow death while those that are innovative, invest in technology and market harder, pick up market share in their sector. Franchisees should do their research on their prospective franchisors and identify if
Before you jump in!
• Consider if you are taking on a greenfield site this may be a higher risk than an existing site. • Are you being offered an A, B or C grade site? • Is the Franchisor big on technology and innovation? If not, how will they compete in the market sector they are in. • Is the store fit out due for an upgrade and refurbishment? • Is the plant and equipment new or will it need replacement? • Will you hold the lease or hold under an occupancy licence. Above all if you are considering entering into a franchise, make sure you seek advice from a Specialist Franchise Lawyer who is a Member of the Franchise Council of Australia (FCA) and seek independent financial advice before you commit so you can make an informed decision. v
business franchise MAGAZINE 41
franchising feature
snapshot: Graze Craze
Graze Craze Launches its First Australian Location in St Ives, Sydney Graze Craze®, the innovator in graze-style dining and catering, has opened its first Australian location in St Ives, Sydney. Less than two years after launching its franchise program through United Franchise Group™ (UFG), Graze Craze has experienced explosive success in the US, selling over $4.6 million (AUD) in charcuterie since opening its first franchise location in February 2022. It now boasts 42 locations open in the US, with an additional 56 franchise agreements signed within the first two quarters of 2023, adding to its already robust development pipeline which currently totals 175 locations to be developed in the next several years. Now entering the Australian market with its first location in Sydney, the charcuterie and grazing board franchise has rapid expansion goals in the NSW market initially, before then focusing on recruiting franchisees across Australia. In-store Grazologists™ curate handcrafted, impeccably designed, sweet and savoury charcuterie boards and picnic boxes made with the highest quality ingredients and arranged with perfection. Offering various sizes of charcuterie boards and boxes that can be customised, sizing options cater for just one person all the way through to ten people. The menu offers classic cured meats, premium cheeses, artisanal breads as well as options for those with special dietary requirements. “It’s an incredibly exciting time for Graze Craze®. Our first location in St Ives Sydney has been strategically selected with a great mix of business, residential hubs and community groups. It will provide catering for corporate and community events, private parties and celebrations as well as for those just wanting to pick something up for a special occasion.” Timothy Smith, Managing Director of Starpoint Brands™ Australia. “The market is ripe for a franchise in this industry and with our already established brands of Signarama® and Fully Promoted® here in Australia there will be plenty of opportunities for cross collaboration between our franchisee network.” “2023 has already been an incredible year for our brand in the US, and 42 business franchise MAGAZINE
to now be able to provide this opportunity to Australian entrepreneurs is really exciting,” says Kim Caruana, Brand Manager of Graze Craze®. “It’s a completely unique franchise in the food industry which can be notorious for high wastage and high staffing requirements. The Graze Craze® business model has been specifically designed and refined to maximise operational profits, with an owner operator requiring minimal staff. Our extensive training and onboarding program also means that any passionate entrepreneur regardless of their experience can learn the business and start growing it from day one.” Graze Craze® offers customers the ability to visit in-store or order online, as well as offering options for pickup and delivery. Graze Craze® is a member of the Starpoint Brands family of trusted companies, a division of United Franchise Group (UFG), including Signarama®, Fully Promoted®, Transworld Business Advisors®, Venture X®, Office Evolution®, Network Lead Exchange™, The Great Greek Mediterranean Grill® and Graze Craze®. v
Info@franchiseready.com.au Info@franchiseready.com.au www.franchiseready.com.au www.franchiseready.com.au
Franchise Franchise Ready Ready are are proud proud recruitment recruitment partners partners of of more more than than 30 30 Brands Brands
business franchise MAGAZINE 43
franchising feature
EXPERT ADVICE: Doug Downer | Franchise Ready
People always need to eat,
So a Food franchise has to be good, Right? People think food businesses look easy. After all, we all eat, and lots of us cook food, so it shouldn’t be that hard. They look like businesses that practically anyone can operate and make massive amounts of money in. After all, everybody eats and drinks, right? How hard can it be to operate one of these businesses? Food Businesses represent around 8% of all businesses in Australia and within the franchise sector food franchises represent around 20% of all franchise opportunities. There are many benefits to working in a franchised food business. People look at food businesses and think they must be good — you don’t have to wait for the cash to hit your account like some other business opportunities, as they are cash businesses, and the cash flow is strong as it flows in daily and if you’re part of a franchise system, the franchisor would have negotiated good trading terms with suppliers, so you don’t have to have huge cash tied up in stock. It’s been estimated that over 10% of the population (both globally and in Australia) has worked in food services at some point in their career and at any point in time the food sector represents about 5% of the total working population. If you have worked in food service, it’s a sector worth investigating if you’re looking to buy a franchise. That’s because you kind of know what you’re in for: it’s hard work, you’re on your feet for long periods of time and your transaction dollar amount is often low, so you must get and serve lots of customers. Some people fall in love with idea of owning a food business and having their friends come around. I can assure you it’s nothing like that, I have owned five different food franchised businesses and one independent food business. When you’re establishing your food business, you work harder than you’ve
44 business franchise MAGAZINE
Doug Downer an experienced Business Developer and Coach with an impressive 30+ year senior management history in developing and leading businesses within the Franchising sector. He has been recognised in the Top 30 Franchise Executives in Australia in 2019, 2020, 2021 and 2022 and in the Top 100 Global Influencers in Franchising in 2022. Doug owns five franchises as a franchisee and has been responsible for the establishment of three start-up franchise systems including all aspects from strategy through to market entry. Doug has operated at CEO and Director level in eight franchise systems. He also started, owns, and operates five successful SME Businesses of his own, so he is well versed in all aspects of franchising. Contact Doug at: doug@franchiseready.com.au | Website: www.franchiseready.com.au
ever worked in your life before. Because it’s yours, you must and, it may take a while to get customers to change their current preferences to your products. A food franchise would suit a large range of people but may be more desirable to people that are customer oriented rather than sales oriented and could suit both introverts and extroverts. Once the location is up and running, the owner often waits for customers to come to them. It’s true that you should be marketing over and above what the franchisor does, but this may not be everyone’s expertise, so it tends to be a reactive franchise opportunity.
Many people fall in love with the idea of owning café and it’s no wonder, as 75% of the Australian population are reported to have coffee once or twice a day, most popular with people aged between 25-34 and with over 25,000 cafes and many other food businesses offering coffee, there’s lots of coffee options to choose from. The other popular food sectors are restaurant operations totalling over 30,000 outlets. Whilst food is relatively easy to get into and we know people have to eat on average three times a day and the market has moved to grazing through the day which has increased the incidence of eating, and on the beverage
The market is changing from “technology advancements to shifting consumer preferences, several emerging trends are shaping the future of franchising in hospitality.
”
The Trends in Food franchising Technology is playing a pivotal role in enhancing guest experiences. Environmental consciousness is no longer a niche concern; it's a mainstream trend. The pandemic accelerated the focus on health. Innovation with culinary experiences and higher consumer expectations, exacerbated by the proliferation of celebrity chef programs. Additionally, dietary preferences like veganism and gluten-free options are now standard offerings although stand-alone outlets focussed on this narrow niche have not proven to gain total market acceptance as evidenced by the high failure rate of these niche businesses.
you have worked in food “ Ifservice, it’s a sector worth
percentages. Most food businesses need to be under 30% COGs to be profitable.
investigating if you’re looking to buy a franchise. That’s because you kind of know what you’re in for: it’s hard work.
”
• Food retailing is bloody hard work. Standing on your feet for excessive periods of time, and today, food service is seven days a week from early to late, so it has the potential to impact your quality of life.
side, it is recommended that as human beings we need to hydrate eight times a day, all of this augers well for food and beverage businesses and the beauty of franchising is that someone has developed the business model for you giving you a greater chance of success.
• The success of a food business is heavily reliant on real estate: location is everything, and that comes at a price. Ideally, a food business would like to run at 4–10% for full-service restaurants and 8-14% for takeaway, known as quickservice restaurants (QSRs).
Food franchises have a lot of positive attributes but there also some negative attributes associated with food franchises, and they include:
• Consumer behaviour can change, and unless you have a strong loyalty program, ongoing marketing and a great product that is always evolving, customers are prone to try other products.
• A reliance on team members that are often unskilled and potentially unreliable as they see their role as a stepping stone to their ‘real job’. • Wage costs are wildly variable, and at the whim of sales, it’s a fine balancing act. Not too many staff or labour costs will be too high (ideally 25–30%) and not too low to impact the customer experience. But get this wrong and the results can be catastrophic. • Cost of Goods (COGs) are variable and require excellent controls and recipe management to maintain optimum
• If you’re situated in a shopping centre and to a lesser degree on a high street, there’s a strong chance of competition and copying of your best products which you have no control over. The market is changing from technology advancements to shifting consumer preferences, several emerging trends are shaping the future of franchising in hospitality. If you’re looking at a food franchise, you need to be aware of these trends and what the franchisor is doing to address these emerging trends.
Convenience is expected by consumers either through access to outlets, drive thru and speed of service. Customisation of products to suit customer’s taste preferences. Online and mobile ordering to assist with both convenience and customisation. Robotics and automation have become increasingly popular in the fast-food industry. Robots have allowed fast-food restaurants to reduce labour costs and increase efficiency while still providing customers with consistent quality and service. Premium quality offerings at a premium price point. A value option on the menu for the cost conscious particularly in this period of high inflation, high interest rates and lower consumer confidence. Consumers are looking for Value over Price, so you can have a premium offer, but what’s most important is quality. In summary, food franchising is a great way to get into a business by leveraging the systems that have been developed by a franchisor, it’s been proven there is over a 50% increase in business success over independent food businesses and that because the franchisor has usually addressed many of the emerging trends that affect a food operation, there’s a lot to operating a successful food business, in franchising the franchisor builds the systems so that the team can operate the systems to assist the running of the business, in independent businesses much of the operations are the owner’s responsibility, Franchising makes running a food busy easier. v business franchise MAGAZINE 45
franchising feature
snapshot: Durk’s Cafe + Eatery
Durk’s Cafe + Eatery
joins forces with Ampol to feed hungry travelers Durk’s Cafe + Eatery, an Australian cafe brand known for its commitment to nutritious food, has expanded into the travel centre sector, marking a significant strategic move for the emerging brand. Despite its relative youth, Durk’s has demonstrated remarkable versatility by establishing a total of five locations in 12 months, encompassing two inline stores, a kiosk, and, most notably, two new dining hall travel centre sites within Ampol’s state-of-the-art travel centres along the Southbound and Northbound stretches of the Hume Highway, Pheasants Nest - just south of Sydney. Gary Blyton, General Manager and Co-Franchisor of Durk’s Cafe + Eatery, comments: “The two new locations are a welcome addition and were not part of our overall plan but we are now glad that they are. We were approached by Ampol because they were looking for something a little different. Many travellers, including truck drivers, these days are looking for something a bit healthier and in some cases with a home made element to it rather than just ‘fast food’. Our team was tasked with developing a version of our menu that would cater to this modern day traveller whilst also able to be operationally effective in this type of location. Over 40,000 vehicles per day use the Hume Highway so for us it was a great opportunity. Now that these sites are operating above expectations we will make them available to potential franchisees. We have several other new locations planned for NSW so it’s certainly exciting times ahead.” With a rich history deeply rooted in hospitality and franchising, across several successful food ventures, Durk’s Cafe + Eatery are thrilled to channel this wealth of experience into the dynamic cafe sector. Nathan Wood, Marketing Manager of Durk’s Cafe + Eatery comments: “Navigating the highway can be a tiring experience, and 46 business franchise MAGAZINE
finding nutritious food options can be a real challenge. That’s where Durk’s Cafe + Eatery steps in. We are thrilled to bring our unique cafe concept to the Hume Highway Ampol Travel Centres in Pheasants Nest, making it easier for commuters to enjoy delicious meals that are both satisfying and good for you. We’re not just a cafe; we’re a destination for those seeking a better way to dine on the go.”. Durk’s Cafe + Eatery is a 100% Australian owned and operated cafe franchise dedicated to providing high-quality, nutritious meals. With a focus on offering a healthier alternative, Durk’s Cafe + Eatery is operated by highly experienced hospitality franchisors who’ve been in the Australian market for more than 20 years. For more information, please visit: www.durkscafe.com.au.
P: 1300 312 502 E: info@TheProvenGroup.com.au W: www.TheProvenGroup.com.au
"As a franchisor, having the right partners within our business is critical. The team at The Proven Group have been a great one stop shop for all HR and Safety needs." Marianna Barba - Franchisor Hire for Baby & Baby Restraint Fitters
Are You 100% Happy With The Performance Of Your Team? (Franchisors and Franchisees)
Scan to get a Free Copy of the Book & Consultation
Where Everybody Wins!
expert advice: Bill Morgan | Morgan Mac Lawyers
FRANCHISOR SUPPORT, OR LACK OF
THE EXPECTATION GAP
Do franchisees receive enough information to make an informed decision to acquire a franchise? The recent Consultation Paper released by the Commonwealth Government in connection to another review of the Franchising Code asks about the effectiveness and content of information made available to franchisees.
information about precisely what support franchisees may expect from franchisors. This is needed to close what we call an expectation gap.
Some interested parties in the franchise industry consider that sufficient information is provided to franchisees and object to any further imposition of disclosure obligations on franchisors. We disagree in part because having acted in many franchise disputes and attended hundreds of mediations, a recurring almost inevitable issue that arises in these disputes is franchisee dissatisfaction with the level of support the franchisor provides or fails to provide the franchisee.
4. Lack of response to requests for assistance.
If the Code needs a change then the change should specifically target disclosure of 48 business franchise MAGAZINE
Complaints about lack of support by franchisees seem to primarily fall within the following broad categories: 1. Inadequate initial and ongoing training; 2. Unwillingness to allow for changes to the way the franchisee operates its business; 3. Failure to assist franchisees when they are experiencing financial difficulties; These categories of complaints are aspects of what we call the expectation gap. This is the gap between what the franchisee expects by way of franchisor support and what the franchisor is contractually obliged to provide. It is a clear and ever present danger to the health of the franchisor and franchisee relationship. The contractual clauses in franchise agreements concerning franchisor obligations are often very few and general in nature.
In disputes, the support franchisors assert they provide franchisees may be limited to as little as providing the franchise model and responding ad hoc to some questions the franchisee asks and problems it raises. Providing a turnkey operation (which at best only truly describes some franchise formats) does not necessarily mean the franchisee is sufficiently trained and equipped to operate it. Our experience of complaints within these categories is as follows:
Inadequate training Most franchise agreements provide for initial and ongoing training and, at least for initial training, but often for ongoing training, there is a fee charged by the franchisor. The initial training usually happens before or in conjunction with a commencement date and may last for days or weeks. The complaint by franchisees that the training is inadequate even if its lasts for weeks is common. On occasions the complaint is that the training before
commencement does not equip the franchisee to conduct the business. The fact that the franchisor provides a comprehensive operations manual rarely seems to close the expectation gap of between the level of training the franchisee received or at least what the franchisee expected it would receive and the training that the franchisor provides and how well it equips the franchisee to competently operate the franchise business after its commencement.
Bill Morgan has over 25 years of experience in Commercial Litigation and Dispute Resolution with a focus on the franchise sector. He is a nationally accredited mediator and is a panel member of the Australian Small Business and Family Enterprise Ombudsman. Morgan Mac Lawyers T: (07) 3221 2221 E: info@morganmac.com.au www.morganmac.com.au
Another complaint is that the quality of the training is poor, and the content is inadequate. The complaint is often made in hindsight after sufficient time has passed for franchisees to learn from experience how to conduct the type of business that the franchise system grants the franchisee a right to operate.
Franchisor inflexibility allowing changes Franchisees generally understand the benefit of conformity of franchisees with their franchise system model and its importance to the reputation of the franchise system and its brand. Franchisees become frustrated when the franchisor flatly rejects any change to the manner in which a franchisee operates its own franchise business, especially when the changes make business sense, and no good business reason is given for rejecting the change. The problem is more acute when the franchisee is struggling financially, and the franchisee perceives that the change is likely to increase income or reduce expenses. This is a potential serious friction point in the relationship between franchisee and franchisor and effective communication around requested changes to how the franchisee’s own franchise business is operated should be a priority for franchisors.
Failure to assist franchisees when they are experiencing financial difficulties Nothing brings into sharper relief the expectation gap than when the franchisee starts to struggle financially. Franchisors may be entitled to stand behind the contract and offer nothing extra and make no concessions on payment of royalties and other fees but doing so inevitably turns frustration into hostility. Regardless of franchise agreement terms which almost entirely shift risk of business failure to the franchisee, it is trite that franchisees expect the franchisor to be invested in their success or failure. The consequences of lack of support by the
franchisor to the franchisee’s financial plight can be serious internal reputational damage amongst franchisees in the franchise system, especially if several franchisees face the same financial difficulties.
Lack of response to requests for assistance In an age of instantaneous communications, responses from service providers in real time is a general expectation. It is more acute in the franchise industry where the franchisee obviously seeks a response to problems and information from the franchisor. After all, it is the franchisor’s system, and from the franchisee’s perspective who else should the franchisee turn to for such assistance regardless of what the franchise agreement requires the franchisor to do. This problem is more acute is circumstances in which the franchisee is having problems with software or systems (e.g. a point of sale system) it is compelled to use by the franchisor, but which is not working properly and causing loss of time and disruption to the business.
Summary The take-away for franchisors is that there is very often an expectation gap between
what support the franchisor is contractually obliged to provide and what support franchisees expect to receive from franchisors. This generates serious friction points that franchisors need to manage as a priority to maintain a healthy reciprocal business relationship with franchisees. The take-away for franchisees is that regardless of the information the Code requires the franchisor to provide to prospective franchisees, it is likely inadequate on the issue of the level of support franchisors are required to provide to franchisees. This should not prevent the franchisee seeking as much further disclosure on this issue as it considers necessary to make an informed decision whether to acquire a franchise business. By the time a dispute has reached mediation or litigation, the point has often been reached where the relationship has soured to the point of no return. The dispute needs to be avoided at the start. Franchisees when considering buying franchises, as part of their due diligence, should make more enquiries around what support (e.g. training) is to be provided or not provided by franchisors. Further, franchisors should make it clear in their documentation and go beyond the disclosure required by the Code. This will help close the expectation gap. v business franchise MAGAZINE 49
franchisor in depth: Stagecoach Performing Arts
Stagecoach Performing Arts looks to expand Australian network at Sydney Expo No journey is too long when pursuing your passions, and the Stagecoach Performing Arts team is certainly passionate about getting their brand as far and wide as possible. That is why members of the Support Team took the 21,000-mile round trip to Sydney for this year’s Franchise & Business Opportunities Expo. The two-day event was an opportunity to reach a wider audience of those keen to begin their own journey of business ownership, growing the size of its network in Australia. The Support Team, consisting of Chief Operations Officer Lisa Stead, Head of Marketing Dijana Radisevic and Global Franchise Support and Development Manager Joseph Greenslade, travelled to Sydney with the goal of attracting a broader range of prospects from across the Southern Hemisphere. As part of his role, Joseph explores ways to enhance the support provided by the
brand globally. He saw the two-day event as an opportunity to demonstrate how Stagecoach’s proven business model has been changing the lives of franchisees and their students worldwide for over 35 years, “The Expo was a fantastic platform to showcase how Stagecoach has been a transformative force for franchisees and students alike. We’re proud of the positive impact we’ve had globally, and the event was an opportunity to highlight the realworld success stories that prospects can replicate across Australia.” Stagecoach’s network includes more than 300 franchisees that operate over 3,000 schools and classes in eight countries.
Given the success of its current franchisees in Perth, the team is now eager to extend their presence to previously untouched regions in the country. During the Expo hosted at the ICC Sydney, Lisa engaged in conversations with potential Master Franchisees and delivered a presentation that explored how earning a part-time income can ultimately evolve into a full-time business opportunity.
Expo was a fantastic platform “ toTheshowcase how Stagecoach has been a transformative force for franchisees and students alike. We’re proud of the positive impact we’ve had globally, and the event was an opportunity to highlight the realworld success stories that prospects can replicate across Australia.
”
-Global Franchise Support and Development Manager Joseph Greenslade.
“It was great to chat with potential Master Franchisees interested in propelling our mission of expansion,” explained Lisa. “Connecting with these future partners was truly inspiring, and I look forward to seeing the positive impact they can make within our Stagecoach community. The enthusiasm and interest from prospects underscored the potential for success that lies within our network.” Since the early 1970s, franchising has played a major role in Australia’s economy – boasting more outlets per capita than any country except New Zealand*. Consequently, this growth has intensified competition, making finding interested investors and partners crucial. Recently, Australian entrepreneurs have found success by actively seeking out and approaching international franchisors – underscoring why face-to-face meetings 50 business franchise MAGAZINE
Following the Expo, the team “ organised a special event exclusive to Stagecoach partners and those interested in the franchise model. They were invited to a reception and tour at Theatre Royal Sydney, which has been under the management of Stagecoach’s parent company, Trafalgar Entertainment Group, since 2020.
”
with prospects in Australia are vital for Stagecoach. In light of this, Lisa added, “We believe Australia is a huge untapped market for us. We’ve witnessed a tremendous appetite for Stagecoach’s services, and following the resounding success of this event, we’re enthusiastic about extending our presence to more areas across the country. Places like Sydney and Canberra are brimming with potential, and I’m hopeful we’ll soon see franchisees launching their own success stories in these vibrant cities.” Following the Expo, the team organised a special event exclusive to Stagecoach partners and those interested in the franchise model. They were invited to a reception and tour at
Theatre Royal Sydney, which has been under the management of Stagecoach’s parent company, Trafalgar Entertainment Group, since 2020. Theatre Royal Sydney serves as the cornerstone of the group’s Asia-Pacific operations. “It was amazing to have the opportunity to connect with potential prospects over drinks and canapés at the Theatre Royal,” explained Joseph. “The event showcased our commitment to excellence and allowed us to build valuable relationships with those interested in franchising with us. It’s a testament to the exciting future ahead for
Stagecoach in the region.” *International Trade Administration, 2022: Australia – Country Commercial Guide: Franchising To find out more about franchise opportunities with Stagecoach Performing Arts, visit australia.stagecoachfranchise.com For more information, or to speak with Lisa Stead, contact Charlie Milne at Rev PR on 07548 810658 or email charlie@revpr.co.uk Photos from the Franchising & Business Opportunities Expo
business franchise MAGAZINE 51
EXPERT ADVICE: Dr. Nigel Bairstow | Academic Practitioner
Maximising Franchise Success with AI-Powered Chatbots The landscape of franchising has experienced a profound transformation, largely propelled by the integration of chatbots powered by Artificial Intelligence (AI). These intelligent virtual assistants are at the forefront of reshaping how franchises engage with their customers. Their impact spans from enriching customer interactions and boosting sales conversions to offering roundthe-clock support and generating invaluable customer insights. In a world where technology is advancing rapidly, the role of chatbots has become pivotal for franchises seeking to flourish within an ever-evolving digital realm.
Elevated Customer Engagement Among the standout strengths of chatbots is their capacity to facilitate personalised engagements with customers. These digital assistants are on call 24/7, promptly addressing customer queries and providing 52 business franchise MAGAZINE
pertinent details about products, features, and pricing. By dissecting a customer's purchase history, browsing patterns, and preferences, chatbots can even offer tailored recommendations. Picture a scenario where a customer visits the Domino's Pizza website. The virtual assistant starts a conversation, understands the customer's location, preferred store, pizza preferences, and recommends pizza combinations that perfectly match their tastes. This tailored interaction increases the likelihood of an order and creates a deeper connection between the customer and the Domino's Pizza brand.
Enhanced Sales Conversion Chatbots wield considerable influence over sales conversion rates. Through their ability to deliver personalised product suggestions, furnish comprehensive product information, and expertly guide customers through the purchasing process, chatbots dismantle obstacles that might otherwise deter a prospective sale. For instance, a customer navigating an electronics retailer's website might have inquiries about the specifications
and performance of a particular laptop. The chatbot not only furnishes comprehensive details but also addresses compatibility concerns. By orchestrating a smooth and personalised shopping journey, chatbots significantly enhance the chances of transforming browsing customers into paying patrons.
Innovative Chatbot Adoption by Franchises Here are examples of three global and two Australian franchise operations that have been making strides in maximising franchise success through the strategic implementation of AI-powered chatbots: Global Franchise Examples: McDonald's: As one of the world's largest fast-food chains, McDonald's has embraced technology to enhance its customer experience. They've integrated chatbots into their mobile app and website, enabling customers to place orders, customise meals, and get answers to frequently asked questions. The chatbot streamlines the ordering
process and provides a more interactive and personalised experience for customers. Domino's Pizza: Domino’s Pizza, is building on the success of their global AI-powered chatbot named “Dom”, It has integrated chatbot capabilities into their app and social media platforms. Customers can place orders, track deliveries, and inquire about menu items through the chatbot, streamlining the entire ordering process.
Dr. Nigel Bairstow is an academic practitioner with experience working in a variety of marketing roles for large multinational companies such as Alcan Aluminium, Komatsu, Atlas Copco, and 3M. He completed his PhD in Marketing in 2012. His research focus is on B2B and B2B marketing channels. UTS is the top-ranked young university in Australia. Our vision is to be a leading public university of technology recognised for our global impact. We’re known for our innovative teaching. We’re committed to practical innovation and research that benefits industry and society. We believe in social change to create a more just and equal world.
KFC: KFC has implemented an AI-powered chatbot on its website and social media platforms to handle customer inquiries and provide information about its menu, promotions, and store locations. The chatbot's real-time engagement with customers has enhanced KFC's customer service and streamlined communication. Australian Franchise Examples: Boost Juice: Boost Juice, a popular Australian smoothie and juice bar franchise, has embraced AI-powered chatbots to assist customers in placing orders, exploring menu options, and finding nutritional information. The chatbot is seamlessly integrated into their app and website, providing an interactive way for customers to engage with the brand. Chatime: A well-known bubble tea franchise in Australia, Chatime has adopted AI-powered chatbots to enhance customer engagement and offer personalised recommendations. Customers can interact with the chatbot to explore new flavors, customise their drinks, and learn about ongoing promotions.
chatbots ease the burden on customer service representatives. This efficiency not only diminishes the need for additional staff but also empowers human agents to focus on intricate and nuanced customer interactions. Consequently, operational costs are trimmed, allowing for the reallocation of resources to fuel other areas of business expansion.
Round-the-Clock Customer Support
Unlocking Customer Insights
Franchises have long recognised the significance of exceptional customer service in cultivating brand loyalty and customer retention. Chatbots play a pivotal role in this arena by providing continuous support. This feature proves particularly advantageous for franchises catering to a global audience spanning different time zones. When customers encounter issues or have inquiries, chatbots provide instant resolutions, ensuring that customers receive timely assistance. This level of support significantly enhances customer satisfaction, as shoppers are more likely to return to franchises that prioritise exceptional customer service.
Cost-Effective Operations The integration of chatbots delivers tangible benefits in terms of cost savings. Traditional manual customer support processes can strain resources and incur expenses. However, by automating routine inquiries and delivering immediate responses to customer needs,
In an era where data propels business decisions, chatbots serve as a goldmine of customer insights for franchises. By dissecting customer preferences, purchase histories, and browsing behaviors, franchises can amass a profound understanding of customer needs and aspirations. This data can be leveraged to elevate the customer experience, tailor marketing strategies, and optimise product offerings. Imagine an online franchise bookstore like Dymocks in Australia, leveraging chatbot interactions to decipher reader interests in different genres. This data can then drive personalised book recommendations and targeted promotions, resonating with customers on a deeply personal level.
Driving Future Success In conclusion, chatbots have transcended into indispensable tools for franchises seeking elevated sales conversions, exceptional customer service, and amplified customer engagement. Through personalised
interactions, uninterrupted support, and data-driven insights, chatbots enrich the customer experience, fortify customer loyalty, and ultimately propel sales. As AI technology advances, chatbots will remain a cornerstone of the franchise sector, empowering franchises to stand strong and relevant within a digitally driven landscape. The success stories highlighted of McDonalds, KFC, Domino's Pizza, Boost Juice and Chatime underscore the transformative influence that chatbots can wield over franchise operations and customer interactions.
Looking ahead As the business world continues its march into the digital age, franchises that harness the potential of AI-powered chatbots are poised for enduring success. These virtual assistants are not just tools of convenience; they are catalysts for growth, fostering deeper connections with customers, streamlining operations, and providing invaluable insights that can steer strategic decisions. Franchises that prioritise the integration and optimisation of chatbots will not only survive but thrive in the dynamic and everevolving landscape of the modern franchise business. With the right blend of technology, innovation, and customer-centricity, the journey toward maximising franchise success with AI-powered chatbots is an exciting and transformative one. v business franchise MAGAZINE 53
AUSTRALIA and NEW ZEAL AND
Our Next Feature:
franchises in your price range Next month our Special Feature on FRANCHISES IN YOUR PRICE RANGE provides the perfect opportunity to showcase your Franchise. For advertising opportunities please contact Vikki Bradbury at: vikki@cgbpublishing.com.au
TURN YOUR PASSION FOR PERFORMING ARTS INTO A PROFITABLE BUSINESS. It’s incredible to see how far the franchise has come since I launched the first Stagecoach school in Australia. We’re now regarded as one of the best performing arts opportunities for children in the area. As a franchisee, I get a lot of satisfaction out of running my business. Serena Kipling Principal of Stagecoach Perth Opened 2000
Single Unit and Master opportunities welcome. Initial fee from $20,000 plus start up cost from $17,000.
Creative Courage For Life®
business franchise MAGAZINE 55
profile: Kitset Assembly
Kitset
is here to save the day! People are saying Artificial Intelligence (AI) is the greatest threat to life as we know it. They’re wrong. The greatest threat to human civilisation is hiding in plain sight in our living-rooms, kitchens, bedrooms, bathrooms and back yards – flatpack furniture and its weapon of mass construction, the Allen key.
But there’s hope for those traumatised by the thought of a weekend confronted with a knocked-down bookcase and a diagram that can only be decoded by a person with a degree in deciphering Ancient Egyptian Hieroglyphics. Director of Kitset Assembly Services, Jennifer Lees has seen it all, and more. The company and its franchisees across New Zealand and Australia are the go-to team for taking just about anything out of cardboard boxes and packaging crates and putting them together. “Our motto is, ‘Saving marriages … one assembly at a time’,” she says with a laugh.
It’s not just furniture: “Fitness equipment, a garden shed, saunas, barbecues - the list of products that are delivered in flatpack form nowadays is massive and constantly growing. “When you talk about flatpacks, people just think it’s furniture – but it’s gone so far beyond that. It’s literally anything in and around the house or office.” There are any number of reasons why homeowners – and others – don’t want to do it themselves. “Some people don’t want the hassle or it’s just too hard. But the time factor is probably the biggest one for most of our customers. People just can’t find additional time to spend their whole weekend assembling one little object where one of our Kitset team can come and do it in a few hours.” That’s the nuts and bolts of the company’s business. “Our team of Assembly Technicians are well practised, and they love doing it, which is another reason that most people steer well clear of it – it causes much consternation in relationships. “I will never tire of the phone calls we get on Monday mornings from frustrated wives or partners: Please, can you come and sort out what my husband started over the weekend?” Lees and fellow director William Flew are proud of the Kitset Team they’re building, “We’re very particular about the people that we choose as Assembly Technicians. They get the fact that we stand by the service we provide our customers, to be able to come into someone’s home and act in a professional
56 business franchise MAGAZINE
manner, to be a cost-effective service – and do it with good humour. “They come from an extraordinary set of backgrounds, looking for a lifestyle change. We have builders come on board, engineers, bus drivers, sales managers, fire fighters, pilots, even an aircraft engineer. They’re individuals who just want to be able to work with their hands, rather than sit behind their desk. They get out, they get to talk to people, and they’re not just building the same thing every day. There are franchises available in multiple States, “We’re looking for awesome individuals to join the team who want to be in business for themselves, but not necessarily by themselves because we have a fantastic support network for them.” The company provides an intensive four-week training period with new team members, supported by proprietary software that handles everything from the job booking to invoicing and customer feedback – which has attained an amazing average score of 91 over several years. But for Lees and her diverse ‘Kitset Krew’, it’s all about the feelgood factor of helping folk out of a jam: “Our guys are the heroes in these stories. I know it sounds a little bit trite, but not all superheroes wear capes!” For more information Ph: 1300 352 872 Email: franchiseAU@teamkitset.com
THE NEW YOU? FRANCHISE TERRITORIES AVAILABLE
SCAN NOW TO FIND OUT MORE
TOTAL PACKAGE COST
$49,500*
INCLUSIONS TAKE CONTROL OF YOUR FUTURE AND MAKE TIME FOR LIFE Join our Kitset Network and put your skills to good use: Backed by our proven business model and systems World class direct-to-customer Online Booking Portal Retail and Supply Partner job referrals Marketing & business-growth programs Ongoing business guidance & advice Customers love us … you’ll love us too!
VEHICLE WRAP
TOOLS
HQ TRAINING
SITE TRAINING
UNIFORM
SOCIAL MEDIA
MARKETING
Customised Wrapping of your approved vehicle, with our Kitset Branding Startup Tools and Equipment, to the value of $2000 One week training at HQ, including your airfares & accommodation Three weeks 'On the Job' training, in the field with Franchise Trainers Startup Kitset Uniform and Identification Badge Social Media set up and launch into your local territory Initial Local Area Marketing collateral & printing and Site Webpage
CALL 1300 352 872 VISIT WWW.TEAMKITSET.COM *Price excludes GST business franchise MAGAZINE 57
expert advice: Emma Tobias | Assistant Commissioner | Australian Taxation Office
Business health check year in review Emma Tobias is an Assistant Commissioner for the Australian Taxation Office in the Small Business line. Her focus is to help support small businesses by leading and influencing their experience across the tax, super and registry systems. Emma collaborates with small businesses, industry partners and government agencies to drive an improved small business experience and digital services. Her area also helps small businesses manage cash-flow and digital readiness, assisting them as they look to recover and succeed after the challenges of the last few years.
A healthy business has regular check-ups throughout the year – not just at tax time. The ATO has plenty of tools and resources to help keep your tax and super obligations in peak condition. Here’s a couple of things to get you started. Are you keeping good records? Having good records is one of the best ways to track your business’s health. Not only will it help you make sound decisions all year round, but it will also make your life easier during tax time. If you don’t know where to start, try these 5 rules: 1. Keep all records related to starting, running, changing, and selling or closing your business that are relevant to your tax and super affairs. 2. Don’t change information in your records. You must store records safely to protect information from being changed and prevent damage. You can do this by storing your information digitally but if you do, make sure you keep backups. 3. Keep most records for 5 years and know which records to keep longer. You’ll need to keep records longer if they’re connected to a future, corrected, or amended return, or records about depreciating or capital gains tax assets.
If you want to double check you’re doing the right thing, we have a record-keeping evaluation tool on our website at ato.gov.au/ recordkeepingevaluation. Find out more at: ato.gov.au/recordkeeping
Claiming deductions Does your business have motor vehicle, travel, legal, digital or home-based business expenses? You can claim deductions for most expenses you incur while carrying on your business, but they must directly relate to earning your assessable income. Claimable deductions can relate to your day-to-day operating expenses, purchased products or services, and certain capital expenses. Keep in mind there are some expenses you can’t claim, such as private expenses, traffic fines, and expenses that relate to earning non-assessable income, for example income from non-assessable non-exempt government grants. To check what and how much you can claim, consider the 3 golden rules for allowable deductions: 1. The expense must have been for your business – not for private use. 2. If the expense is for a mix of business and private use, you can only claim the portion that is used for your business. 3. You must have records to prove it.
4. Be able to show us your records if we ask for them.
Make sure you’re tracking your expenses throughout the year, so it’s easier to claim them as deductions during tax time. If you’re a sole trader, you can do this by using myDeductions.
5. Ensure your records are in English or can be easily converted to English.
Find out more at: ato.gov.au/ businessdeductions
58 business franchise MAGAZINE
“
Keep in mind there are some expenses you can’t claim, such as private expenses, traffic fines, and expenses that relate to earning non-assessable income, for example income from non-assessable nonexempt government grants.
”
Fixing a mistake Even with tax time over, you still have time to fix a mistake. If you forget to report some of your income, a capital gain, or a deduction, you generally have two years to amend your return. This starts from the date you receive your notice of assessment. There’s no limit on the number of amendments you can make within this period. You can easily fix your return through your registered tax agent, Standard Business Reporting-enabled software, Online services for business or by writing to us. If you’re a sole trader, you can use ATO Online services for individuals to amend your return. If you’ve provided false or misleading information to reduce the tax you owe, you can correct this through a voluntary disclosure via an approved form. This generally reduces any penalties that may apply. Find out more at: ato.gov.au/ amendareturn, ato.gov.au/ voluntarydisclosure
Support and resources We have a range of tools and services on our website to make it easier for you to get your tax and super right. Each year, the ATO releases updated tax time
over, you The boost applies to eligible expenditure “stillEvenhavewithtimetaxtotime fix a mistake. incurred between 7:30 pm AEDT on 29 If you forget to report some of your income, a capital gain, or a deduction, you generally have two years to amend your return.
”
business. When you subscribe, you’ll get newsletters sent directly to your inbox each month. Did you know that you can conduct most business and reporting transactions securely and efficiently through our online services? ATO Online services will save you time and should be your first port of call when you need to interact with us. Find out more at: ato.gov.au/SBsupport, ato.gov.au/SBtaxtimetoolkit toolkits for small businesses. These have a directory of links to useful information, tools, calculators, learning resources and other support and services. You can use this info at any time throughout the year – not just tax time. The tax time toolkits include factsheets on expenses for home-based business, motor vehicles, travel, and digital products. There are also factsheets about using business money and assets or pausing or closing your business. You can also subscribe to our small business newsletter to keep up with all the latest tax and super information that could affect your
Small business technology investment boost The small business technology investment boost is for businesses with an aggregated annual turnover of less than $50 million. You will be allowed an additional 20% tax deduction on spending to support your digital operations and to digitise your operations. The boost is for business expenses and depreciating assets. It is capped at $100,000 of expenditure per income year. You can receive a maximum bonus deduction of $20,000 per income year.
March 2022 and 30 June 2023. If the expenditure is on a depreciating asset, the asset must have first been used or installed ready for use for a taxable purpose by 30 June 2023. Find out more at: ato.gov.au/ technologyboost
Small business skills and training boost The small business skills and training boost is for businesses with an aggregated annual turnover of less than $50 million. You will be allowed an additional 20% tax deduction for external training courses delivered to employees, either in person in Australia or online, by registered training providers. The boost applies to eligible expenditure incurred from 7:30 pm AEDT on 29 March 2022 until 30 June 2024. Find out more at: ato.gov.au/ skillstrainingboost
Small business energy incentive The small business energy incentive has not yet become law. However, the Australian Government announced that the incentive will be for businesses with an aggregated annual turnover of less than $50 million. They will be allowed an additional 20% tax deduction on spending to support more efficient use of energy. The incentive applies to the cost of eligible assets and improvements up to a maximum amount of $100,000, with the maximum bonus deduction being $20,000 per business. The incentive, if it becomes law, will apply to eligible expenditure on assets that are both first used or installed ready for use for any purpose, and used or installed ready for use for a taxable purpose between 1 July 2023 and 30 June 2024 (i.e. the ‘bonus period’). The incentive also applies to eligible expenditure on improvements to existing assets during the bonus period. Find out more at: ato.gov.au and search for ‘Energy Incentive.’
“
The small business energy incentive has not yet become law. However, the Australian Government announced that the incentive will be for businesses with an aggregated annual turnover of less than $50 million.
”
business franchise MAGAZINE 59
have your say: Paul Constantinou AM | Quest Founder
The Extra 1% A lesson from Quest Founder,
Paul Constantinou AM From humble beginnings in his parent’s fish shop, Paul Constantinou could see the value of hard work and riding the highs and lows of business.
Paul Constantinou AM Quest Founder 60 business franchise MAGAZINE
Paul Constantinou AM, inductee to the Franchise Council of Australia Hall of Fame, started his working life in the accounting industry. After realising he enjoyed working away from a desk, he embarked on a career in the hospitality industry that would see him achieve great success with Quest Apartment Hotels. Whilst enjoying the rush and excitement of the industry, Constantinou sought to achieve greater things identifying a growing market within the Accommodation industry for business-based travellers. He identified the specific needs of this segment and began to customise his product to suit. The first property, Quest Royal Gardens, was opened in Fitzroy, Victoria in 1988 and
the expansion has not stopped there, with Quest Apartment Hotels expanding across Australia, New Zealand, Fiji and recently branching out into the UK. Building success with your Franchisee also comes down to having a disciplined format and following the processes. Learning from big market Fast Food Franchises in the 1990s, Constantinou saw the opportunity for a franchising format which didn’t exist in the Hotel industry. “We applied a simple basis of how do you run a business, how do you open the door, which allowed us to look at people that wanted to come into our business with a entrperneruial approach to hospitality. They didn’t need a degree, just a passion of where they wanted to go with us”. “The difference between ordinary and extraordinary, is the 1%. The ‘extra’ we talk about is the one percent”, says Constantinou. “If you don’t lose sight of your purpose or your desire to fulfill your goal, then you will
difference between ordinary “ The and extraordinary, is the 1%. The ‘extra’ we talk about is the one percent. If you don’t lose sight of your purpose or your desire to fulfill your goal, then you will achieve emotional fulfillment and financial reward.
”
what we need to look “at inI think franchising as a Franchisor, is an obligation to make sure the Franchisee has the ability to run a business, they are compliant, and understand the risk in commercial environments.
”
achieve emotional fulfillment and financial reward”. Constantinou believes choosing the right franchisees who are willing to put in the extra 1% every day is the key to business and franchise success. They might not be the potential Franchisee with the deepest pockets, but if they have the drive and passion in combination with discipline provided by their franchisor, it is a powerful combination. One of the challenges Constantinou believes the industry faces is the lack of structure and accountability that some Franchisors have. He believes more structure and some reform of the regulations in the industry could be a great benefit. “I think what we need to look at in franchising as a Franchisor, is an obligation to make sure the Franchisee has the ability to run a business, they are compliant, and understand the risk in commercial environments”. I find that business today is sometimes a bit too rushed. When we engage with our potential Franchisee and really understand their purpose, what they’re going through, where they are at in their life, it will lead to better alignment and more success”. He believes ensuring more parameters in the industry will ultimately lead to industry growth, simply taking on a Franchisee as they have the investment amount available may not be wise. He believes that understanding their motivation and even their personal circumstances, greatly increases the rate of success. Continuing to grow goes hand in hand with supporting the Franchisee, this is an element that Mr Constantinou says is critical. Not only ensuring discipline and consistency within the organisation, it is about education. “It’s the education we need to do to ourselves as a Franchisor, to enhance knowledge about the industry that we are in, and how do we sit in that industry from a competitor perspective? I’m not saying we have to be doing better than our competitors, but we need to be aware of what is going on”. Looking forward to technological changes like artificial intelligence (AI) and how that will affect the industry Constantinou says, “The important thing to realise when
we talk about the future of the industry, it’s understanding that things are going to change and you as a person and as a business have to create the adaptation inside your business. Not change your customer.” In speaking about the role of AI Constantinou believes that there will be great opportunity to harness the time saving power of AI in collection of data and information. This can be used to follow which industries and corporations are growing and to mitigate risk. “AI is a tool that should be allowing us to spend more time with our customers, it’s your freedom to relate to your people”. It’s not about saying I’m going to build a great business and hope people come, AI will make that process a lot more defined, make the decisions easier and quicker by providing more and more information”. The Franchise industry future is looking bright. “Families drive business. That helps
The wealth of Quest came from “ its Franchisees and its customers. It didn’t come from us at the office”. It is the extra 1% that is the key. Find a Franchisee willing to do the extra 1% and you will find growth and success.
”
grow the economy and increase GDP, many SME have the opportunity to become a franchise, those disciplines exist, those business formats exist. The wealth of Quest came from its Franchisees and its customers. It didn’t come from us at the office”. It is the extra 1% that is the key. Find a Franchisee willing to do the extra 1% and you will find growth and success. v business franchise MAGAZINE 61
expert advice: Stewart Germann | Franchsing Lawyer | Auckland, New Zealand
THE IMPACT OF DATA PRIVACY IN FRANCHISING Franchising has grown considerably over recent years and in particular there has been growth in relation to new systems development and appointing new franchisees in various industries.
to privacy is a fundamental human right. The modern threat to this is the increased collection and use of personal information which is essential to the operation of all Government and other agencies. Information is power. The citizens of New Zealand needed protection so the Privacy Act 2020 was enacted. Legislation is complex, and some might say unnecessarily so.
All parties collect a variety of information and in New Zealand the Privacy Act 2020 must be complied with. There is information about franchise owners, employees, current customers, prospective customers, and clients.
The Act endeavours to control by statute the four ethical issues involved:
Data privacy has become an increasingly important issue. In New Zealand the right
3. Property;
62 business franchise MAGAZINE
1. Privacy; 2. Accuracy; 4. Accessibility.
1. Privacy What information about ourselves must we reveal to others? Under what conditions and with what safeguards? What information can we keep to ourselves and not be forced to reveal?
2. Accuracy Who is responsible for the authenticity, fidelity and accuracy of information? Who is to be held accountable for any errors in the information? How is the aggrieved party to be compensated for any errors?
Stewart Germann founded Stewart Germann Law Office (SGL) in 1993 as a boutique law firm at Auckland, New Zealand, specialising in franchising, licensing and business law.
personal information, and to have access to that information to correct that information.
Stewart has over 40 years’ experience in franchising law and acts for franchisors in New Zealand, Australia, USA and the UK. SGL also act for franchisees and provides legal advice. Stewart has spoken at franchising conferences in New Zealand, Australia, Italy, South Korea and USA and he was on the Board of the Supplier Forum of the International Franchise Association (“IFA”) for 6 years until March 2007. Email: stewart@germann.co.nz | Web: www.germann.co.nz
Principle 7: Correction of Personal Information
3. Property Who owns the information? What is a just and fair price for its exchange? Who owns the way in which the information is disseminated? How should access to this information be allocated?
4. Accessibility What information does a person or an organisation have a right or a privilege to obtain? Under what conditions and with what safeguards?
The Privacy Act The essence of the Privacy Act is the identification of 13 information privacy principles which were established by the Organisation for Economic Cooperation and Development in Paris. The 13 principles are as follows: Principle 1: Purpose of Collection of Personal Information Personal information shall not be collected by any agency unless it is collected for a lawful purpose connected with a function or activity of the agency and the collection of the information is necessary for that purpose. Principle 2: Source of Personal Information Where an agency collects personal information, the agency shall collect the information directly from the individual concerned. Principle 3: Collection of Information from an Individual Where an agency collects personal information from an individual the agency must take such steps (if any) as are, in the circumstances, reasonable to ensure that the individual concerned is aware of: (a) the fact that the information is being collected;
(b) the purpose for which the information is being collected; (c) the intended recipients of the information; (d) the name and address of the collection agency, and the holding agency; (e) if the collection of the information is authorised or required by, or under, law. If so, under which particular law the collection of information is authorised or required, and whether or not the supplier of that information by that individual is voluntary or mandatory; (f) the consequences, if any, for that individual if all or any part of the requested information is not provided; (g) the rights of access to and correction of personal information provided by these principles. Principle 4: Manner of Collection of Information Personal information shall not be collected by an agency by unlawful means or by means that, in the circumstances of the case, are unfair or intrude to an unreasonable extent upon the personal affairs of the individual concerned. Principle 5: Storage and Security of Personal Information An agency that holds personal information shall ensure that the information is protected by security safeguards reasonable in the circumstances against loss, access, use, modification or disclosure except with the authority of the agency that holds the information and other misuse and that if it is necessary for the information to be given to a person in connection with the provision of a service to the agency, everything reasonably within the power of the agency is done to prevent unauthorised use or unauthorised disclosure of the information. Principle 6: Access to Personal Information Where an agency holds personal information in such a way that it can readily be retrieved, the individual concerned shall be entitled to obtain from the agency confirmation of whether or not the agency holds such
Where an agency holds personal information the individual concerned is entitled to request correction of the information and to request that there be attached to the information a statement of the correction sought but not made. Principle 8: Accuracy of Personal Information to be checked before use An agency that holds personal information must not use that information without taking such steps (if any) as are reasonable in the circumstances to ensure that, having regard to the purpose for which the information is proposed to be used, the information is accurate, up to date, complete, relevant, and not misleading. Principle 9: Agency not to use Personal Information for longer than necessary An agency that holds personal information shall not keep that information for longer than is required for the purposes for which the information may lawfully be used. Principle 10: Limits on use of Personal Information The agency holds personal information that was obtained in connection with one purpose must not use the information for any other purpose unless the agency believes, on reasonable grounds, that the source of the information is a publicly available publication or that the use of the information for that other purpose is authorised by the individual concerned, or that noncompliance is necessary, void, prejudiced to the maintenance of the law by any public sector agency, with the enforcement of a law imposing a pecuniary penalty or for the protection of the public revenue or for the conduct of proceedings before any Court or tribunal, or that the use of the information for that other purpose is necessary to prevent or lessen a serious and imminent threat to public health or safety, or the life and health of the individual concerned or another individual, or that the purpose for which the information is used is directly related to the purpose and connection with which the information was obtained or the information is used in a form in which the individual concerned is not identified or is used for statistical research purposes and will not be published and that the use of the information is in accordance with an authority granted under section 54 of the Act. business franchise MAGAZINE 63
expert advice: Stewart Germann | Franchsing Lawyer | Auckland, New Zealand
“
The modern threat to this is the increased collection and use of personal information which is essential to the operation of all Government and other agencies. Information is power.
Principle 12: Disclosure of Personal Information outside New Zealand The agency can only send personal information to someone overseas if the information will be adequately protected. For example:
” • the receiving person is subject to the New
Principle 11: Limits on Disclosure of Personal Information The agency that holds personal information must not disclose the information to a person, body or agency unless the agency believes on reasonable grounds that the disclosure of the information is one of the purposes in connection with which the information was obtained, or is directly related to the purposes in connection with which the information was obtained or that the source of the information is a publicly available publication or that the disclosure is to the individual concerned, or that the disclosure is authorised by the individual concerned, or that non-compliance is necessary in order to avoid prejudice to the maintenance of law, for the enforcement of a law, for the protection of public revenue or the conduct of Court proceedings, that the disclosure of the information is necessary to prevent or lessen a serious and imminent threat to public health, or public safety, or the life and health of the individual concerned, or that disclosure of the information is necessary to facilitate the sale or other disposition of a business as a going concern, or that the information is to be used in a form in which the individual concerned is not identified, or is used for statistical or research purposes, or that the disclosure of the information is in accordance with an authority granted under section 54 of the Act. 64 business franchise MAGAZINE
Zealand Privacy Act because they do business in New Zealand; • the information is going to a place with comparable privacy safeguards to New Zealand; • the receiving person has agreed to adequately protect the information through model contract clauses. If there are no adequate protections in place, the agency can only send personal information overseas if the individual concerned gives the agency express permission, unless the purpose is to uphold or enforce the law or to avoid endangering someone’s health or safety. Principle 13: Unique Identifiers An Agency must not assign a unique identifier to an individual unless the assignment of the identifier is necessary to enable the Agency to carry out any one or more of its functions efficiently. An Agency which assigns a unique identifier such as a pin number which identifies an individual other than their name may only do so if this step is necessary to carry on one or more of its functions efficiently, and the Agency has taken all reasonable steps to clearly establish the identity of that individual. It is very important for franchise partners to prevent data privacy violations. Franchisees will collect information pertaining to
their employees, customers and suppliers. Franchisees must evaluate the information and how to protect it and they should conduct data mapping which is an internal audit process which allows the franchisee to determine what types of personal data it is receiving, where it is being stored, why it is being collected, and how long the franchisee intends on keeping the data. Franchisors must take an active role in the protection of stored data and compliance with regulations. In the unfortunate event of a data breach or public violation of data privacy regulations, there will be a direct harm to the brand regardless of who is responsible for the violation. Data breaches can result in significant costs for the franchisor. For example, in 2021 IBM found that an average cost of a data breach was USD4.24 million which went up 10% compared to 2020. Franchisors must remain cautious of potentially non-compliant activities by franchisees. They must ensure that all franchisees conduct their businesses to high standards to ensure compliance with the laws. While most franchise agreements do not provide for unilateral changes, some franchisors have addressed changing standards by way of amendments to the operations manual. Franchisors can require written confirmation from franchisees that they have complied with any changes to data collection and data privacy laws and require that any changes will replace a current data protection plan. In conclusion, franchisors and franchisees must operate their businesses in compliance with the expanding data privacy legislation and always take appropriate steps to ensure compliance. v
profile: Franchising Expo
Want to start your own business in 2024? The Franchising & Business Opportunities Expo is looking forward to bringing you two events showcasing a huge range of franchise systems and small business ideas.
by business ideas in industries they had never even considered!”
Exploring a change of career in 2024 is going to be top of mind for many people and the expos are the place to start the research, ask the questions and compare the opportunities.
Whether you are an experienced small business owner or just thinking about a new start, you will find everything you need to start or grow a business. “Hearing from franchisees in person gives a great insight into the challenges and opportunities of owning a franchise,” adds Fiona. “They are very frank about their experiences – what has worked well for them, and what hasn’t!”
At the shows you will discover exciting franchise brands and small business opportunities that align with your goals and values. You will have the chance to establish connections through face-to-face contact that allows successful partnerships to flourish.
In addition to meeting exhibitors, visitors can attend the free seminars held as part of the show. Here visitors will learn from experts in franchising and hear from successful franchisees, as well as strategies to help you succeed and pitfalls to avoid.
The shows will be running in Sydney from 4-5 May and in Melbourne from 17-18 August. Brisbane and Perth will return in 2025.
The Start Your Own Business Workshop will return to both shows on Saturday and Sunday morning from 9 am, delivering advice on business ownership, how to get started and what you need to know to take the leap.
The Franchising & Business Opportunities Expos brings together franchisors, franchisees, legal and financial experts, as well as industry and government authorities, giving you the chance to discover a range of business ideas. ‘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 66 business franchise MAGAZINE
Fiona adds “The Expo is independent and gives you the perfect chance to see the options, speak with the experts and have all your questions answered.” Put the dates in your diary now! For more information on visiting or exhibiting, please contact Fiona at fiona@ specialisedevents.com.au or visit www. franchisingexpo.com.au.
Reader special: Register to visit the Franchising & Business Opportunities Expo for half price at www.franchisingexpo.com.au by using promo code CGB
Diary Dates: Sydney: 4-5 May 2024 Melbourne: 17-18 August 2024 Brisbane and Perth: Return 2025
BE YOUR OWN
B SS Find out how at the
ENDORSED BY
• Free advice from the experts • Meet the people behind the brands • Free seminars daily
Sydney 4-5 May 2024 | Melbourne 17-18 August 2024
franchisingexpo.com.au business franchise MAGAZINE 67
hot tOpics
behind the
headlines Jason Gehrke is the director of the Franchise Advisory Centre and has been involved in franchising for more than 30 years at franchisee, franchisor and advisor level. He advises both existing and potential franchisors and franchisees, and conducts franchise education programs throughout Australia. He has been awarded for his franchise achievements, and publishes Franchise News, Australia’s only fortnightly electronic news bulletin on franchising issues. In his spare time, Jason is a passionate collector of military antiques. www.franchiseadvice.com.au
Another franchise to exit stock exchange listing Listed mortgage business franchise Yellow Brick Road (YBR) has announced an intention to delist from the Australian Stock Exchange (ASX), according to a media report. YBR was initially launched as a wealth management and mortgage business in 2007 and listed on the ASX the following year at an initial price of $1.10 per share. Its wealth management arm was sold off in 2019, and most recently the business recorded an aftertax loss of $3.5 million for the 2023 financial year. The company’s share price crashed to just 20c within months of its listing in 2008 and peaked at 70c by 2014 before slumping again to trade around 5c per share, prompting a scathing review of the performance of the business and its high-profile founder and television’s Celebrity Apprentice host Mark Bouris by the Australian Financial Review.
Small business exemption from Privacy Act to end Up to 2.3 million small businesses will no longer be exempt from the Privacy Act after the Australian Government agreed to 38 of 116 potential areas of reform proposed in a report from the Attorney-General advocating for tighter regulation of data and personal information, according to a media report. 68 business franchise MAGAZINE
Small businesses with an annual turnover of $3 million or less will be impacted to varying degrees by the changes which reportedly still require further consultation between government and small businesses. Governments and regulators believe that even the smallest businesses are now technologically able to handle and control sensitive data in the same manner as bigger enterprises and the new rules will be designed to protect customers, clients, and employees from the misuse or exposure of their personal information. Small businesses will need to address how they collect and store data, comply with Privacy Act obligations, and respond to cyber-security breaches, among other things.
Landmark dealership case rejects franchisee goodwill A class action lawsuit brought against Mercedes-Benz Germany by more than 80% of Australian Mercedes dealers in 2021 has been dismissed on all claims in a 567-page ruling that may affect all franchise agreements, according to a media report. After nine-months of deliberation by Federal Court Judge Jonathan Beach, the dealers’ claim that Mercedes-Benz’s change from a traditional dealership model to a fixed-price, direct-to-customer agency model decimated the value of their businesses and stripped them of customer goodwill was found to fail on fundamental issues of law. The judgement
upheld Mercedes-Benz’s right to cancel existing franchisee contracts and replace them with agency agreements and rejected the goodwill claim because there is no “right at law for a franchisee to be compensated for goodwill on non-renewal of a franchise agreement”. The judgement may impact all franchise agreements by expanding the boundaries around what franchisors can and cannot do under their agreements, and what the definition of goodwill means at the termination of agreement, among other things. Justice Beach described the case as “forensically complex although legally straightforward”, stating that further consideration needs to be given to the Franchising Code of Conduct. It is not known if the Mercedes Benz franchisees will appeal the decision.
Mexican chain signals listing timeframe Privately-owned Australian-based Mexican food chain Guzman y Gomez (GYG) has indicated it will list on the Australian Stock Exchange (ASX) in the 2025 financial year or sooner, according to a media report. GYG has voluntarily released financial performance figures for the 2023 financial year, including an increase in sales by 32% from FY2022 and a 56% increase to $32 million in underlying earnings for the same period. The financial disclosure is reportedly
new assessment system for restaurants and a recently-passed California bill which will raise fast-food worker’s wages by 25% in 2025. The National Owners Association, an independent self-funded association of McDonald’s franchisees representing more than 1,000 of the burger giant’s franchisees, has raised concerns not only about the royalty increase but also about the renaming of the fee from a service fee to a royalty fee which they claim may impact operators’ rights to services, support, and assistance from McDonald’s.
Prison proposal for wage theft Employers found guilty of wage theft could face jail time and million-dollar fines under proposed new federal legislation, according to a media report.
part of the company’s strategy of being transparent regarding performance and establishing reporting systems which will become mandatory when the company lists. GYG has been working towards listing since 2020 when it converted from a proprietary company to an unlisted public company and engaged investment bankers and lawyers to fast-track formal initial public offering documents to have a pitch ready for the first half of 2021. Current institutional investors in GYG include Aware Super, Athletic Ventures, Point King Capital, and TDM Growth Partners. GYG operates 171 restaurants in Australia and 23 restaurants in Japan, Singapore, and the US.
Data breaches at two brands impact 1.4m franchise customers Two major retail franchise brands have suffered recent data breaches that impact up to 1.2 million Australian customers, according to media reports and company statements. The largest data breach affected bookstore franchise Dymocks, which confirmed that the personal information of up to 1.2 million customers had been accessed and shared on the dark web following a third-party data breach. The Australian operations of Pizza Hut were also the target of a major breach, with the
contact details of about 193,000 customers exposed by a third party attack. The customers of Dymocks and Pizza Hut respective have been contacted to inform them that their contact details may have been compromised. Dymocks has assured its customers that information relating to their passwords, identification and credit card details remains secure, however the Pizza Hut data breach also included encrypted payment and password details.
Major food brand increases royalty fee despite franchisee pushback McDonald’s’ franchisees opening new outlets in the United States will pay 1% more in royalties to the company from 1 January 2025, according to a media report. The increase in royalty fee from 4% to 5% will affect buyers of company-owned restaurants, relocated restaurants and new franchisees. Existing franchisees who maintain their current footprint or who buy a franchised location from another operator, rebuild existing locations, and restaurants transferred between family members will not be affected. The royalty increase is the first in 30 years and is expected to contribute to tension between McDonald’s and its US franchisees who have clashed in recent years over a number of issues including the company’s
The Closing Loopholes Bill includes a proposed maximum 10-year prison sentence for employers guilty of wage theft. The government’s Workplace Minister stated that jail time is not the objective of the new legislation, but is an important deterrent beyond even the new penalty of fines up to $7.8 million, or up to three times the amount that was underpaid if that exceeds the maximum fine.
Chain fined after food worker trapped in freezer British-based international sandwich franchise Pret A Manger has pleaded guilty to a health and safety offence and has been fined GBP£800,000 after an employee in a London outlet was trapped in a walk-in freezer for more than two hours, according to a media report. The female employee, dressed only in jeans and a t-shirt, became trapped in the freezer in July 20221. She was found in distress by a fellow employee and was treated for suspected hypothermia. Pret A Manger’s reporting system showed that in the 19 months prior to the incident, multiple call outs were made related to defective or frozen push buttons in the freezer, and, in January 2020, another worker was trapped in the same freezer. The company has since improved existing systems, collaborated with the freezer manufacturer to prevent similar incidents in the future, and cooperated fully with the authority investigating the incident. A similar incident at an Arby’s restaurant in the United States earlier in the year resulted in the death of a 63-year-old employee, the family of whom are now suing both the restaurant chain and franchisee for negligence and wrongful death. v business franchise MAGAZINE 69
Let the team at Fr Let the team at Franchise Readyyour f help develop
help develop your franchise system Franchise Ready is Australia’s fastest growing, results focused franchise development consultancy. We have worked with some of the most famous franchise brands on the planet and we have successfully launched and supported over 150 brands into franchising.
Franchise Ready is Australia’s fastest growing, Over 300 Years franchise of Franchising Experience results focused development consultancy. Franchise Ready has been operating since January We have worked with some theworking most famous 2011, every team member hasof been in the franchise brandsand oncollectively the planetwe and we over have300 franchise sector have successfully launched and supported over 130 150 years of Franchising experience operating in every brands into franchising. function and level within a franchise organisation and
across more than 30 franchise systems, this coupled
Launch your business into franchising locally or internationally. Whether you’re curious to explore the possibilities or you’re ready to go now – talk to the experts in franchising to get the right advice. We know what it takes to succeed and can assist in navigating the challenges. We can help you understand what’s possible, provide direction and expert recommendations, and establish a robust game plan for expansion.
with theyour workbusiness we have done developing locally over 150or Launch into in franchising internationally. franchise brands in Australia and New Zealand gives Whether to explore the possibilities Franchiseyou’re Ready curious more franchise experience than any or you’re ready consultancy to go now –brand talk tointhe experts in other franchise Australia. franchising to get the right advice. We know what Established Franchisors itServicing takes to succeed and can assist in navigating the challenges. We can help We help emerging franchisors you withunderstand everything they what’s possible, provide direction and experttake need but we also assist established franchisors recommendations, and establish a robust gameof their business to the next level through our range plan for expansion. Established franchisor services:
• Feasibility Assessment • Financial Modelling, Strategy & Planning • Training & Operational Documentation • Franchisee Recruitment • Territory Mapping & Site Identification • Assistance with Legal Documentation & Much More!
• Feasibility Assessment • •Financial Modelling, Strategy business & Planning Completing a comprehensive review • Training & Operational Documentation Access to aRecruitment comprehensive Franchise Management • •Franchisee System, Mapping that: • Territory & Site Identification • Assistance with Legal Documentation - Stores digital Operational resources & Much More! (operations manual, Training resources)
Full Service Franchise Ready is the only full-service Franchise consultancy business in Australia and has launched and supported more brands than any other franchise consulting business in Australia in the past 12 months.
Full Service audits. Franchise Ready is the only full-service Franchise - Creates financial and scorecards. consultancy business inoperational Australia and has launched and supported more brands than any other - A process builder to develop additional and franchise consulting business in Australia in the customised processes. past 12 months.
• International expansion program for Mature brands
Ov Fra 201 fra yea fun and cou ove Zea exp bra
Ser We the fra thr ser
· In bra · Co · Ac Ma
- Enables the franchisor to complete compliance
- A full learning management system (LMS)
Reach out and let us share with you • A recruitment function to recruit franchisees and key how we can help your business grow executives. to the next level. • A Business business to sell going concerns Reach outbroking and let us share with (franchisees and corporate you how we can helpstores) your business • Territory mapping and Franchise development grow to the next level planning
info@franchiseready.com.au www.franchiseready.com.au
·A key ·A con · Te pla
professional services listings
Level 3, 145 Eagle Street, Brisbane QLD 4000 P 07 3221 2221 E info@morganmac.com.au W https://www.morganmac.com.au/
Level 6, 64 Marine Parade (PO Box 10857) Southport Qld 4215 Contact Sam Rees P 07 5591 2522 E sr@ippartnership.com.au W www.ippartnership.com.au IP Partnership Lawyers have been assisting Franchisors and Franchisees located all over Australia since 1995, with specialised expertise assisting business owners with everything from structuring, legal advice, preparation of documentation and consultation and advice to turn their existing businesses into franchise systems. Based on industry experience our solicitors will guide you through the entire process; providing guidance as to how to determine your Territories, Franchise and Service Fees, Marketing compliance, and in 6-8 weeks you will be in a position to recruit Franchisees all over Australia and New Zealand. We have also assisted our National Franchisor Clients enter other International markets. The firm values developing long term relationships with clients. It is important to us that each of our clients feel that IP Partnership Lawyers are their inhouse legal team, assisting with matters such as employment law, franchise recruitment, structuring, leasing, dispute resolution, trade marks, Code compliance and drafting bespoke contracts. Unlike many general practice firms, IP Partnership Lawyers does not practice outside its specialised area of expertise – we do not do residential conveyancing, family law, criminal law or personal injury. IP Partnership Lawyers are the lawyers to contact when you require expert commercial lawyers who deliver prompt and professional services for franchising, intellectual property and business matters only.
We have worked with the franchising sector for over 25 years. The franchise related legal services we provide include: • Court work and dispute resolution for franchisors and franchisees • Franchise mediation • Franchise dispute solutions and strategies • Purchase or sale of franchise businesses • Advising on franchise documents • Advising on franchise renewal or exit • Preparing franchise documents • Risk and compliance advice • Commercial and retail leasing • Privacy and privacy policy advice We work with our clients to implement their commercial objectives. Our aim is to achieve the best possible outcome for our clients.
Suite 13, 317 Whitehorse Road, Nunawading VIC 3131 P 1300 123 300 Contact Fred Nadde E fred@steadfasteastern.com.au W www.shopinsurance.com.au
Shopinsurance has been looking after the needs of franchisees and franchisors for over 15 years. We offer via our website automated business insurance solutions backed by “one on one” personal advice, to ensure all our customers receive a personal level of care. We look after the needs of franchisees such as Just cuts, Hairhouse Warehouse, Gloria Jeans, AFL stores, Michel’s patisserie, Subway and Schnitz. All it takes is one phone call or email and we take the worry out of what insurance coverage you need, how much it costs and best way to structure your insurance for one shop or for a franchisor insurance facility for all. Give our Director a call on 1300 123 300 Australia wide.
business franchise MAGAZINE 71
franchise listings FRANCHISE
ANZ 7/833 Collins Street, Docklands VIC 3008 Ph: 0481 007 663 Email: anzmobilelending@anz.com Website: https://www.anz.com.au/personal/home-loans/get-started/mobile-lending/join-us/
ARAMEX Level 9, 491 Kent Street, Sydney, NSW 2000 Phone: 1300 3278 929 (AUS) 0508 692 726 (NZ) Email: so@aramex.com (AUS); recruitment@aramex.co.nz (NZ) Website: www.aramex.com.au www.aramex.co.nz
BedShed 75 Howe Street, Osbourne Park, WA 6017 Ph: 0447 891 158 Email: gprussia@bedshed.com.au Website: bedshedfranchise.com.au
Bridgestone Australia 210 Greenhill Road, Eastwood, South Australia 5065 Email: FranchiseeRecruitment@bridgestone.com.au Website: www.bridgestone.com.au/stores/franchise-recruitment
Chicken Treat Level 2, 71 Walters Drive, Osborne Park, WA, 6017 Ph: 0408 927 750 Email: Leisha.fontana@craveablebrands.com Website: Chickentreat.com.au/franchising
DECKSEAL PO Box 4093, Burwood East VIC 3151 Ph: 1800 332 525 Email: admin@deckseal.com.au Website: www.deckseal.com.au
FRANCHISE READY Unit 2a, 87-89 Moore Street, Leichhardt NSW 2040 Ph: +61 2 8999 1120 Website: www.franchiseready.com.au
HYDRAULINK PTY LTD 123 Long Street, Smithfield, NSW, 2164 Ph: 02 8785 4600 Email: franchise@hydraulink.com.au Website: www.hydraulink.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
Kitset Assembly Services Pty Ltd Level 15, Corporate One, 2 Corporate Court, Bundall QLD 4217 Ph: 1300 352 872 Email: grant@teamkitset.com Website: www.kitsetassemblyservices.com
KUMON EDUCATION PO Box 5363, West Chatswood, NSW 1515 Ph: 02 9467 2200 Email: info-au@kumon.com.au Website: kumoninstructors.com.au/Franchise
MINDCHAMPS EARLY LEARNING AUSTRALIA PTY LTD Suite 1, Ground Floor 92-94 Norton Street, Leichhardt, New South Wales 2040 Ph: 1300 646 324 Email: tinat@mindchamps.org Website: au.mindchamps.org
MyHome 104 Auburn Rd, Hawthorn, Victoria, 3122 Ph: 0438 162 135 Email: franchising@myhomeclean.com.au Website: https://myhomefranchise.com.au/business-franchise/
MYKIKKI Shop1/409-411 Bourke Street, Surry Hills, NSW 2010 Ph: 0406 638 253 Email: info@mykikishop.com Website: mykikishop.com
Oporto Craveable Brands, Level 12, 12 Help Street, Chatswood, NSW 2067 Ph: 0477 605 463 Email: Manal.Haydar@craveablebrands.com Website: https://franchising.oporto.com.au
PACK & SEND Unit 3C Mfive Business Park, 1 Moorebank Ave, Moorebank, NSW 2170 Phone: 0447 711 353 Email: luke.martin@packsend.com.au Website: www.packsend.com.au
PETBARN MOBILE DOGWASH (Formerly City Farmers Dogwash) Quarter One, Level 2, 1 Epping Road, North Ryde, NSW 2113 Ph: 0402 902 620 Email: scott.mcintosh@cityfarmers.com.au Website: www.petbarn.com.au/mobiledogwash
72 business franchise MAGAZINE
NATURE OF BUSINESS
OUTLETS
ASSOC MEMBER
INITIAL FEE
MIN INVEST
Mobile lending broker/ Banking Finance
155
-
$35,000
-
FREIGHT & LOGISTICS/ COURIER
28 (AUS) 18 (NZ)
FCA
Available upon application
Dependant on territory
Bed Retailer
40
FCA
$75,000
$1,000,000
Tyre retail and automotive mechanical services
180
FCA
$50,000
$350,000
QSR
60+
-
-
-
DECK AND TIMBER RESTORATION
24
FCA & AIG
-
From $31,000 +gst (Plus Equipment & Vehicle)
Franchise Consulting and Recruitment
3
FCA, BFA & IFA
$30,000
$35,000
MOBILE HOSE AND FITTINGS MANUFACTURING
400 + across AUS, NZ & Pacific Islands
FCA
Subject to location, starting from $20k
Subject to location, from $40 -60K plus finance, equipment & stock
MOBILE POOL SHOP & POOL SERVICE
130
FCA
$75,000
$75,000 + Vehicle
Home Services Franchise
4 current
FCA
$45,000 + GST
$45,000 + GST
AFTER SCHOOL TUITION
322
FCA
$5000
$4,000-$30,000
Early Childhood Education Services
21
FCA
-
-
Premium Home Services
23 (Melbourne)
-
$50,000
$85,000
Dessert Shop
2
-
-
$40,000
QSR
195+
-
-
-
LEADING PARCEL & FREIGHT RESELLER
125 +
FCA
$80,000 ex GST
From $290,000 ex GST
DogWash
22
FCA
$30,000
$40,000
FRANCHISE
Red Rooster Craveable Brands, Level 12, 12 Help Street, Chatswood, NSW 2067 Ph: 0437 913 247 Email: colleen.wetherbee@craveablebrands.com Website: https://franchising.redrooster.com.au
Right at Home Unit 4, 16-36 Nile Street, Woollongabba QLD 4102 Phone: 07 3177 9906 Email: daryl.s@rightathome.com.au Website: www.rightathome.com.au
Right Choice Conveyancing
1/398 Nepean Highway, Chelsea, VIC 3196 PH:03 9772 8000 Email: info@rightchoice.com.au Website: http://www.rightchoice.com.au
SNAP-ON TOOLS PO Box 6077, Blacktown NSW 2148 Ph: Aus: 1800 762 766 NZ: 0800 762 766 Email: sota.franchise@snapon.com Website: www.snapontools.com.au
Soul Origin 580 Parramatta Rd, Petersham, 2049 Ph: 0439 611 962 Email: KarlaS@soulorigin.com.au Website: https://www.soulorigin.com.au/
Stagecoach Performing Arts 12th Floor, Export House, Wolsey Walk, Woking, Surrey GU21 6QX Ph: +44 (0)1483 247 400 Email: franchiserecruitment@stagecoach.global Website: australia.stagecoachfranchise.com
The Drug Detection Agency (TDDA) 161 Collins Street, Melbourne Ph: +61 437 988 302 Email: blair.larsen@tdda.com Website: www.tdda.com
NATURE OF BUSINESS
OUTLETS
ASSOC MEMBER
INITIAL FEE
MIN INVEST
QSR
330+
-
-
-
Home Care For the Elderly and for Adults Living With a Disability
46
FCA and ACCPA
$120,000
$200,000
Business Services/ Property/Conveyancing
3
Australian Institute of Conveyancers
-
-
MOBILE TOOLS AND EQUIPMENT FRANCHISE
180+
FCA / FANZ
$43,000
Varies
Fresh Food and killer Coffee
148
FCA
$60,00
$320k-$450k + GST
Children’s Performing Arts Education Franchise
350
-
$20,000
$17,000
Workplace drug testing
20
FCA
From $45,000 + GST
-
AY W T A RE G A RE A S G TIN S LI Z SS AINE S U B YOUR PROMOTE TO
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 MAGAZINE 73
A-Z franchise directory
ANZ Mobile Lending ANZ Mobile Lending is the only mobile lending franchise opportunity offered by a major bank in Australia. As a franchisee you can enjoy the autonomy of running your own business and benefit from the recognition of ANZ’s brand and an established support team behind you. ANZ’s mission is to shape a world where people and communities thrive, and ANZ Mobile Lending is a key driver to achieving this success. Our franchisees are driven business leaders who are passionate about delivering outstanding service to their customers.
Unlike many other franchise models, ANZ Mobile Lending does not require franchisees to sign up to retail leases or carry valuable stock on hand.
They help customers achieve their home ownership
started/mobile-lending/join-us/
Aramex
training and support to help them to run their own rewarding business in their local communities.
Aramex has been operating internationally for almost 40 years. In New Zealand and Australia, we began as Fastway Couriers over 35 years ago, joining the Aramex family in 2016. The Aramex network across New Zealand and Australia now includes 28 regional franchises and over 1200 franchise partners. We offer our franchise partners an awardwinning system, world-class technology,
BEDSHED Are you looking for the freedom and flexibility to be your own boss? Bedshed is one of Australia’s largest mattress, bedding, and bedroom furniture retailers and has an accredited franchise business model led by a professional management team. Backed by over 40 years of successful operation, Bedshed provides support, specialised advice, training, and a proven structure that takes a lot of the risk out of running your own business.
Bridgestone Australia Bridgestone has retained the title of Australia’s Most Trusted Tyre Brand every year since 2014. Being associated with the industry’s strongest and most trusted brand through this proven and highly successful Franchise model gives you an immediate head start. A core component of the success of Bridgestone Select is the ability to offer consumers a one-stop shop for all their tyre and automotive service needs. This allows our Franchisees to build a loyal customer following with regular engagement. Owning a franchise should be about running a business for yourself, but not by yourself. The Bridgestone philosophy
Chicken Treat Chicken Treat is a hugely popular West Australian brand with superpower potential and with a new look and in a new era, we’re ready to take on the nation. We’re expanding across the East Coast - our first two stores have already opened to fanfare in Sydney. For over 40 years, we’ve been serving fun, contemporary and tasty food to hungry Aussies and we aren’t slowing down! It’s only getting better crazy fun menu options, family-friendly store designs and a host of new technology is being rolled out.
74 business franchise MAGAZINE
goals and build their own high performing teams. As your customers continue their journey in life, your business grows alongside them continuing to offer ANZ’s banking and lending services as and when they need it. Additionally, ANZ Mobile Lenders enjoy an attractive earning potential and a competitive business model.
https://www.anz.com.au/personal/home-loans/get-
For more information contact: AUS: 1300 327 892 fso@aramex.com www.aramex.com.au NZ: 0508 692 726 recruitment@aramex.co.nz www.aramex.co.nz
Becoming a franchisee involves enjoying the financial and lifestyle benefits of owning your own business with the support from the experts - whilst giving you the freedom and flexibility to be your own boss. Got a question? Just want to have an initial conversation? Contact our National Business Development Manager, Greg Prussia on +61 (0) 447 891 158 www.bedshedfranchise.com.au
is one of total support for our franchisees. Whether you are purchasing an existing franchise or starting with a new site, we are with you. It is our ongoing commitment. Our franchise fee of 3.5% is among the lowest in the industry, and unlike many other franchise models, we do not charge a separate marketing levy. We are now seeking expressions of interest from prospective franchisees interested in joining the Bridgestone Select family. Couples are strongly encouraged to consider this opportunity to join the proven and highly successful Bridgestone Select network with a full 10-year Franchise term included. www.bridgestone.com.au/stores/franchise-recruitment
We’ve been satisfying rotisserie and fried chicken cravings for over 40 years and we’re still going strong! The success of Chicken Treat is evident through our store growth strategy and store sales figures. Now that we’re launching into a new period of growth, we’re looking for Franchise Partners to help us keep up with demand by opening more restaurants across WA, NSW, and VIC. Phone: 0408927750 Email: Leisha.fontana@craveablebrands.com Website: https://franchising.chickentreat.com.au/
DECKSEAL DeckSeal help homeowners and commercial clients around Australia, transform their outdoor living spaces by restoring old timber and preserving new timber. Low start up cost, mobile business and a proven established model – it’s the perfect opportunity to seal your future with a DeckSeal Franchise. The restoration and preservation of timber structures and decks is a niche business, placed within a significant growth market. Now more than ever, people will be entertaining at home and utilising their outdoor areas. A timber deck is an iconic part of the Australian outdoor lifestyle and a key feature in countless homes across the country. Our franchisees love what they do. The satisfaction they get out of their work and business is endless, from seeing the deck at the beginning of the project to the final result is amazing! We undertake a wide range of projects including decking, cladding, screens, fences, seats, handrails, posts, outdoor furniture, planter boxes and garden edges and with
a continual flow of enquiries, repeat business and an overwhelming demand for our services, a DeckSeal franchise should not be missed. 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. DeckSeal currently has territories available in NSW, QLD, WA, SA and TAS. Our current franchisees are from all different employment backgrounds and possessed varied business capabilities, but all reap the rewards of owning a DeckSeal franchise. If you’re a motivated, honest and organised person who wants to own a business that enables you to have more flexibility in your life, have control over your income, and bring a smile to your client’s face – then we want to talk to you. Now is the time to buy into the home improvement market, so contact us today – email admin@deckseal.com.au or call Danielle on 1800 332 525
FRANCHISE READY
• Complete site identification and lease negotiation of new locations
FRANCHISE READY helps business owners scale and grow their business into a more valuable asset through franchising. We have launched some of Australia’s fastest growing brands into the franchise sector, we have launched and supported more than 150 brands grow by becoming franchisors.
• We have a business broking division that assist all business owners with sale of their business
• We coach, mentor, and support emerging franchise brands and their key executives
For Established Franchisors WE:
We assist both emerging and established franchisors in developing and scaling a successful franchise system, for emerging franchisors We:
• Complete system reviews – Operations & Training manuals and system process reviews
• Create the Strategic Plan
• Assist with concept development planning including territory mapping, site identification and leasing
• Develop all the collateral required – Operations & Training manuals, SOP’s, Launch programs • Complete franchise feasibility reports that include · Territory mapping · Competitor analysis · Financial modelling for franchisees and the franchisor
• Have a comprehensive Franchise Management system for storing Operational resources, Auditing, Process building, • Franchise coaching and mentoring
• Coordinate Marketing collateral – Style & Fit out guides, Advertising, Brochures, Prospectus
• Assistance with International expansio n
• Support through the documentation process with lawyers and Accountants
Franchise Ready is The One stop shop for everything franchising, proudly supported over 200 brands.
• Recruit Franchisees and Key Executives for the franchisor
HYDRAULINK PTY LTD At Hydraulink, Business is BOOMING! Our Hydraulink Sales Service Technician franchisees are in high demand to provide a mobile hydraulic hose and fittings breakdown and repair service to industries like: • Civil contractors engaged in building, construction, road and rail projects • Waste and demolition contractors • Transport, truck and automotive repairs • Warehousing, material handling and logistics services • Marine, agriculture, farming, and forestry sector • Mining and excavation • Military and defence • Manufacturing and industrial processing. The benefits and advantages of the mobile Hydraulink Sales Service Technician Franchise include: • Low operating costs by avoiding commercial leases and outgoings • Business administration support, invoicing, collections, and quoting systems • Technical sales training development with support from an area manager and supportive
JIM’S POOL CARE MOBILE POOL SHOPS Join our team and Australia’s largest franchise system to build a business that suits your goals and lifestyle. Owning a Jim’s mobile pool shop means you can earn money from multiple streams. You charge for your time and charge for the lucrative pool items such as chemicals, pool equipment and pool accessories. This means your income is not limited by how many hours you can work and gives you scope to grow the business to a level that suits you.
Kitset Assembly Services At Kitset Assembly Services, flatpack is our business. It’s what we do (we do a lot of it) and we’re really good at it. We’ve assembled thousands of Kitset or flatpack products, generating hundreds of thousands of dollars in sales and creating a legendary reputation. We have a strong foundation and partnerships with retailers as well as a world class, direct to customer online booking portal ... which provides quotes on assembly based on the products customers have purchased, so our Franchisees have access to a good volume of work and a steady customer base, from which to grow a good Franchise. Our business model is extremely simple - we assemble
• Franchise Recruitment
network of hose and fittings specialists • Branded product to meet customer needs • A designated marketing area, operations manuals, and access to marketing materials to build your business. While a mechanical aptitude or trade skill is beneficial, Hydraulink has found that the most successful franchisees display the following traits. They are: • Self-motivated and driven to provide outstanding customer service • Enjoy fixing things with a can do attitude and can multi task • People with strong work ethics, and a willingness to follow a proven system by learning new skills • Outgoing people who enjoy sales, working with a team, and have great people skills. To be your own boss, and join our team, contact Hydraulink today. We have franchise opportunities for successful candidates all round Australia. For more information visit: www.hydraulink.com.au or www.joinhydraulink.com
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
flatpack furniture and other flatpack products, for customers, at their home or office for a fixed fee. No surprises in price means that our customers refer their friends and family to us and we get a lot of repeat business. We also provide all our Franchisees with topnotch training on assembly and treating the customer like royalty - customers love us! You’ll love us too. So if you’re the person that family and friends call when they’ve got a flatpack, the person that enjoys putting things together or the one that doesn’t have “screws left over” (no, they’re not “spare”) then you’ve come to the right place. Book a call with one of our team to find out how you could join, saving more marriages right across Australia.
business franchise MAGAZINE 75
A-Z franchise directory
KUMON EDUCATION Owning and operating a Kumon franchise is the perfect opportunity for people who love working with children, their community, and who want to make a difference. As a Kumon franchisee you will have the opportunity to build an exciting and worthwhile business that contributes to your local community. While owning and operating a Kumon franchise is a significant commitment, it provides flexibility as our franchisees can decide their own schedule around family and other commitments. You will become part of a global network of associates all working towards developing ‘life skills’ in children around the world. There is also extensive support provided by your local brand and head office. Kumon is the world’s largest after-school education provider with more than 3.7 million students enrolled in over 60 countries and regions. There are more than 45,000 students studying with Kumon in Australia, each progressing according to their own ability and pace.
We invite you to attend our next franchise information meeting to learn more about: • training and support • generous subsidies • low start-up costs • potential earnings For more details and to register, please visit https://www. kumoninstructors.com.au/Franchise. Or, contact our recruitment team at: info-au@kumon.com.au
business franchise australia and new zealand
For more information call 03 9787 8077
A-Z Listings are a great way to promote your business,
speak to one of our Sales Executives or go to
giving you a presence within our publication and also
www.businessfranchiseaustralia.com.au or
the Business Franchise website.
www.businessfranchisenz.co.nz
mindchamps
We are also the only early learning organisation to have the world
Be part of a brand that is transforming the early education space globally.
Royal Society and founder of the Centre for the Mind at the University
(or +61 3 9787 8077 from outside of Australia) and
renowned neuroscientist Emeritus Professor Allan Snyder, Fellow of the of Sydney and the Australian National University, as our Chancellor and
Hailed as THE education movement of the 21st Century by New York Times & Wall St Journal No. 1 bestselling Author Dr Joseph A. Michelli, MindChamps has over 80 Early Learning and Preschool centres across Australia, Singapore, the Philippines, Myanmar, Malaysia, Indonesia and the USA .
Chair of Research.
MindChamps Early Learning and Preschool is the only early learning organisation worldwide to develop its own unique research based curriculum. Backed by the work of award-winning, world-leading experts in the 4 Domains of Education, Psychology, Neuroscience and Theatre, our 3-Mind model of education nurtures children with the skills, flexibility, and Champion Mindset to flourish and thrive in a unpredictable future.
popularity with Australian families. The strength of our brand name
myhome For over 15 years, MyHome has stood alone as the premium home services business in the Australian market, revolutionising the industry with its highly systemized and digitally-led management franchise. This is an exceptional management franchise opportunity, a turn-key business with huge potential. MyHome offers its owners an unprecedented work life balance and more time for the things they value most. With a low-cost entry, extensive centralised support, including central call centres, and digital innovations, empowering owners to manage much of their business from a mobile or tablet.
myKikki Explore the deliciously naughty world of MYKIKI and become part of a franchise that radiates joy. With its vibrant pink ambiance and delectable waffles that hit your sweet spot, MYKIKI offers an irresistible business opportunity. As a MYKIKI franchisee, you’ll be able to indulge customers with whimsical treats and create unforgettable moments of happiness. Join our passionate community of entrepreneurs, where imagination knows no bounds and success is measured by the smiles on people’s faces.
76 business franchise MAGAZINE
Kumon is an individualised programme that develops students’ selflearning through the study of mathematics and English worksheets. Through the programme, students develop fundamental reading comprehension and calculation skills for confidence in the classroom and in everyday life
As a multi-award-winning early learning Franchisor, MindChamps is committed to your success. Our extensive list of international awards speaks volumes about the quality of our educational approach and its is synonymous with solid scientific research, quality early learning strategiesand a caring, child-centred environment. To discover why owning a MindChamps Early Learning & Preschool centre is your dream business, visit: au.mindchamps.org or call 1300 646 324.
MyHome owners are not cleaners, they come from various backgrounds and are skilled individuals who efficiently manage and cultivate thriving residential cleaning enterprises. They aspire to run their own businesses while benefiting from the experience and proven framework offered by MyHome’s established model. MyHome are now awarding a limited number of management franchises covering Melbourne’s finest suburbs. If you aspire to a work life balance with great financial rewards, take the first step by visiting https://myhomefranchise. com.au/business-franchise/.
With MYKIKI, you can turn your entrepreneurial dreams into a reality and be part of a brand that delights customers of all ages. Don’t miss the chance to spread sweetness and laughter as you embark on this extraordinary franchise journey. For more information on this delicious franchise contact: Nathan and Lola Ph: 0406 638 253 Email: info@mykikishop.com Web: mykikishop.com
oporto Established in 1986, Oporto was founded on bringing authentic Portuguese flavours to Bondi Beach. People could sense that it was something special, and word quickly spread. A relentless focus on fresh, flavour-some food coupled with a youthful, fun and vibrant experience, Oporto has carved a unique place for itself in the Australian food industry. Its festive, youthful vibe is there in every element of our restaurants. With a modern, fiery menu,
Portuguese inspired restaurant design and vibrant branding, what’s not to celebrate? Oporto is in a period of rapid growth. Aussies love our style and they can’t get enough of our food, so we need to grow our franchise familia to keep up with demand! We’ve identified dozens of perfect locations for new restaurants and now we need some new franchise parceiros (partners) to join the team. Phone: 0477 605 463 Email: Manal.Haydar@craveablebrands.com Website: https://franchising.oporto.com.au
PACK & SEND
• Multiple revenue streams
PACK & SEND is a ‘No limits’ Freight Reseller Business tapping into the eCommerce parcel market. We are a network of entrepreneurial franchise partners providing award-winning services to the high-growth parcel, freight, logistics and eCommerce fulfillment markets. Our franchise system is a High-Profit return business model that is scalable to a ‘multistore’, multi-million sales revenue enterprise.
• Brand Lead Guarantee valued at over $100,000 for all new
Why PACK & SEND • No LOGISTIC experience necessary • Every day is different! • Customers love us! Over 26,000 5-Star reviews!
PETBARN MOBILE DOG WASH Be part of the Petbarn Mobile Dogwash franchise system with all the support that comes with it, it allows you to concentrate on your business; • Work your own hours • Group marketing power to support your business • Managed website including optimized search engine listing and adwords • 24/7 call centre • Social media management and support • Lead generation
Centres • Territories available nationally • 5-Star rated Franchise System by FRAN Data since 2019 Contact us today to learn more about our multi-award winning franchise business model. Phone: 0447 711 353 Email: luke.martin@packsend.com.au Website: www.packsend.com.au
• Initial & ongoing training & support. Be part of a team of like-minded franchisees. We also have back-up equipment should you have a breakdown you can use to keep you working, including a spare van! • Take a holiday knowing your fellow franchisees can help look after your customers when your away and they are still yours on your return • Group buying power for equipment and consumables saving you $ that no independent operator could ever receive. • We use a van, not a cumbersome trailer. The hydrobath comes out of the van so the dog is washed in its yard and is more relaxed. The van is much easier to drive and reverse than a trailer too!
• LARGE EXCLUSIVE TERRITORY – ALL LEADS COME TO YOU with NO COST PER LEAD FEE
For more information call Scott McIntosh on 0402 902 620 or visit
• Lowest franchisee fee in this market
www.petbarn.com.au/mobiledogwash.
Red rooster
a continuously updating menu, new customer interfaces and, of course, an ongoing dedication to satisfying Australia’s chicken cravings.
Classic food franchises in Australia don’t get more iconic than Red Rooster. With over 345 stores Australia wide, Red Rooster is one of the most recognised food franchises. A staple Australian brand for decades, the modern Red Rooster draws from its well-loved history while moving into its innovative future. We know you’ve got to give people what they want – so we’ve developed modern restaurant designs,
right at home Right at Home provides a full range of services; companionship, domestic support, personal care, skilled nursing and allied health services. We do this across the aged care system, disability, and post hospital care systems. We currently have 46 franchisees in our system covering most of Queensland, a large proportion of Sydney and some regional areas of NSW, Perth and Kalgoorlie, Southwest Victoria and Adelaide Central. There are still prime territories available in regional NSW, regional WA, Melbourne and regional Victoria including the prime locations of Bendigo, Ballarat, Mornington Peninsula and Gippsland. We have more territories for sale in Adelaide and South Australia, Tasmania and Northern Territory.
A successful business model, grounded in history and modified for the future…what’s not to love? For more information please contact Colleen Wetherbee Phone: 0437 913 247 Email: colleen.wetherbee@craveablebrands.com Website: https://franchising.redrooster.com.au
The comprehensive initial training covers our bespoke systems, care management, care delivery, recruitment, sales, marketing, operations and managing the business. New franchise owners enter our RightStart© program designed to get them up and running and profitable within the shortest space of time. This program provides intensive support during the start-up phase that underpins the early success of our franchise owners. Recent experience has shown that Right at Home is pandemic and recession proof. Our markets are guaranteed to grow over the next 20 years. If you are looking for something new, a real business with fantastic returns, while giving back to your community, Right at Home is the right choice.
business franchise MAGAZINE 77
A-Z franchise directory
Right Choice Conveyancing Right Choice Conveyancing offers an opportunity for customer focused business-people to own their own business in the booming property marketing industry. Franchisees do not need a background in law or conveyancing, as Right Choice provides not only full training, but will handle part of each property transfer on behalf of the franchisee, ensuring a smooth and accurate outcome for each client file.
This business is online based and all transfers are handled using the industry standard software platform, PEXA. You can commence working from home and later move into an office or shop when you are ready. The franchisor is at hand to assist and guide you at every step and with every client file, so you are never on your own.
To get you started, Right Choice Conveyancing provides a portfolio of current clients ready for you
info@rightchoice.com.au www.rightchoice.com.au
SNAP-ON TOOLS
We are a complete retail mobile showroom that brings high quality tools and equipment to customers at their place of work. Our highly targeted marketing techniques promotes our Snap-on Tools brand so it reaches your customers. Each month, we develop specials to give customers a reason to buy immediately.
Snap-on Tools Australia & New Zealand leads the way in innovation to providing technicians, engineers and other professional tool users the gold standard in tools, tool storage, equipment, diagnostics, repairs information and management systems.
With extensive training and ongoing support,
Snap-on Tools continues to grow and perform with a network of over 180 franchisees across Australia and New Zealand.
Join the world’s largest tool franchise and drive your own success
soul origin
to our local communities since 2011. Soul Origin also offers catering which is so simple and convenient with all the products that you know and love available in store.
Soul Origin is the family that you choose! Our fresh food and killer coffee is backed up by our experience and knowledge in operations, marketing, training, product development, franchising, and bucket loads of passion. With over 148+ stores across Australia, this Australia-owned and operated QSR business has been providing fresh food and killer coffee
Stagecoach Performing Arts At Stagecoach Performing Arts we are all about performance – on stage, in life and in business. We are here to inspire children and provide them with the confidence to be themselves. The demand for extra-curricular performing arts opportunities for children continues to increase. Stagecoach’s unique model of running three disciplines (singing, dancing and acting) simultaneously, means its franchisees are well placed to capitalise on this demand.
www.snapontools.com.au
For more information contact: Karla Shand 0439 611 962 KarlaS@soulorigin.com.au https://www.soulorigin.com.au/
is pinned around skills development for each stage of learning. Stagecoach enriches the lives of 60,000 students worldwide, each week. As a Stagecoach franchisee, you are responsible for driving and growing your business and managing a team of talented teachers. You will not be required to teach any classes yourself, but our model actively encourages you to put your own stamp on the creative process. From marketing to recruiting and retaining teachers, Stagecoach will provide you with the guidance and support you need, when you need it.
Stagecoach developed Educational Framework which
australia.stagecoachfranchise.com
The Drug Detection Agency (TDDA)
businesses taking part in workplace substance testing programs.
Established in 2005, The Drug Detection Agency (TDDA) provides Australasian businesses with end-to-end workplace substance testing, education and policy services. Driven by a mission to ‘creating drug-free environments’, The Drug Detection Agency has established itself as the number one drug testing brand in Australasia, with more than 300 employees, 90 mobile health clinics and numerous locations all around Australasia. On a yearly basis, TDDA performs more than 250,000 tests and this number continues to grow with more and more
78 business franchise MAGAZINE
to handle the transaction. You commence your new franchise with revenue from Day 1.
With demand on the rise, TDDA is now looking for motivated and passionate franchisees in Victoria, Tasmania, the Northern Territory, South Australia and Western Australia to get involved and join their mission. If you are looking to be part of a franchise that allows you to make a real difference to workplaces all over Australia, and to join a team who share the same passion, values and mission, then enquire today to be a part of The Drug Detection Agency (TDDA). www.tdda.com
VOL 17 ISSUE
03 mar/apr
2023
VOL 17 ISSUE
VOL 17 ISSUE 04 may/jUnE 2023
05 jUL/aUg 2023
VOL 17 ISSU E 06 SEp/Oc t 2023
VOL 17
VOL 17
2023 jan/fEb ISSUE 02
/dEc 2022 01 nOV ISSUE
cover st ory
cover story
Bedshed your sea rch
cover story on toHoHils nd ersal univ snaPcHisee Mitc
Fr an s to ss group et fitne sHares secr success
ry being ic well-ory holiStdS w st itrh cove exPan ise
sto cover
BuYinG a – Fr ancHise Ps FroM ti P to Ye a laW r
ady
...re talk ur th aeke yo alkm howwto e work iS ch e in 2023 n a aturu Fr rfeyo ecial sp Fo g er hard anchisin fo
od fr
latest news
trendinG s Fr ancHise
in frAnchising
you b Should SineSth S? t b u g r ow r tha sales s fo
what lenders Ma arester looking forYo when ur tiMe approving a loan
s ewng st nch isi late uy in fr an
gie str atenchisees ture fr feaa special ad ro e on th iSeS Fr anch
ance Business Fin ned territory ts exPl ai oduc Pr - dO YOU reAllY KnOW
WhAt YOU Are getting?
Stem, the Sy Follow e ProceSS th St tru (AUD),
$7.95
(NZ) inc.
GST.
), $7.95
$4.95 (AUD
$4.95 (AUD),
$7.95 (NZ) inc.
GST.
(NZ) inc.
GST.
special feature
Fr anchis Due Dilig e e nce a Law ye rs
ture special fea
S ore new e sc th w la oSt knte chising in fr an
$4.95
For The perF ec sTops her T Fr anchise e
a premium Boutique health cluB
ve . anccahd ry .. cfit rea y to
you need tiPs on wHat before yoto investigate u buy a fr ancHise
Behind the latest ne
Ws in Franchisin Buzz word g ArtificiAl intelligence And frAnchising
neWsg a neW Fina latest ncia franchisin in
automotive & on the road franchising
year checkl
Fr anchisor
Through Fra
Subscribe today!
One year (6 issues) of Business Franchise Australia and New Zealand for only $39.95 AUD.
ist
l
$4.95 (AUD), $7.95 (NZ) inc. GST.
s Win
nchisee edu
caTion
laTesT
in fr ancH n ews cover story ising
myhome
specPr iD inG josie ke ial oV feat ur e lly
healThth , e Bu s anD Tnsin eses & BeauTyFi liFe sh esloVes! Fr anchis es Harnessin of LocaL g tHe Power area Ma rketing:
Th e K e y To Fr anchis e succes $4.95 (AUD),
$7.95 (NZ) inc.
GST.
s $4.95 (AU
D), $7.95
(NZ) inc.
GST.
$39.95
Packed with information relating to many different areas of the franchising industry, Business Franchise Australia and New Zealand is a valuable and informative source of guidance.
Send me 6 issues (1 year) of Business Franchise Australia and New Zealand for only $49.95 inc. GST for delivery within Australia.
Mail to: CGB Publishing Pty Ltd, PO Box 17, Pamona, QLD 4568 | Email: accounts@cgbpublishing.com.au 79 Business Franchise Australia and New Zealand
business franchise MAGAZINE 79
Making MakingFranchise FranchiseLaw Law Black Blackand andwhite white Morgan Morgan Mac Mac Lawyers Lawyers specialises specialises inin Business Business Law, Law, Franchise Franchise Law, Law, Commercial Commercial Litigation Litigation and and Dispute Dispute Resolution. Resolution. We We have have been been assisting assisting franchisors franchisors and and franchisees franchisees in in areas areas including including franchise franchise dispute dispute resolution resolution strategies, strategies, business business sales, sales, leasing leasing and and franchise franchise documentation, documentation, and and legal legal and and regulatory regulatory compliance. compliance. Commercial Commercial litigation litigation and franchising are complex areas ofof law. We and franchising are complex areas law. We help our clients toto resolve help our clients resolve navigate legal matters and obligations, oror navigate legal matters and obligations, and recommend strategies minimise and manage the risks and recommend strategies toto minimise and manage the risks ofof legal non-compliance and legal disputes. legal non-compliance and legal disputes. We work with our clients achieve their commercial objectives and We work with our clients toto achieve their commercial objectives and the best possible outcome our clients. the best possible outcome forfor our clients.
CONTACT CONTACT US: US: www.morganmac.com.au www.morganmac.com.au | 07 | 07 3221 3221 2221 2221 | info@morganmac.com.au | info@morganmac.com.au