cover story
growing in the right locations...strategic network planning stay one step ahead this fringe benefits tax year
unlimited growth potential wit h Jim’s b lind c leaning & r epairs latest news in franchising $4.95 (AUD), $7.95 (NZ) inc. GST. VOL 18 ISSUE 04 MAY/JUNE 2024
voLUMe 18, IssUe 4, 2024
on the cover: Jim’s Blind Cleaning & Repai R s
pres I dent: Colin Bradbury. colin@cgbpublishing.com
pU b LI sher: Vikki Bradbury. vikki@cgbpublishing.com.au
ed I tor I a L depart M ent: editor@cgbpublishing.com.au
sa L es & M arket I ng M anager: annie Bradbury. annie@cgbpublishing.com.au
prod U ct I on: Katie Wareham. production@cgbpublishing.com.au
acco U nts: accounts@cgbpublishing.com.au
desIgn: michelle Quinn. michelle@cgbpublishing.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
“ Currently, we have franchise territories available across all states. Our expanding operations fervently call for additional franchisees due to the overwhelming demand for our services, which exceeds what we can presently accommodate.”
CoACh’s
Welcome to our May/June issue of Business Franchise Australia and New Zealand Magazine!
c an you believe we are in May?! In this issue we are pleased to welcome Jim’s b lind cleaning & r epairs to our cover, turn to page 12 to see how the franchise is your opportunity to join a franchise in huge growth. With a track record of more than 20 years in the industry, hear what they have to say about this exciting next phase.
The FC a’s contribution this issue gives us an update on the recent discussions in Canberra ‘FC a insiders’ d elegation to Canberra marks a Triumph in Collaborative efforts for the Franchising s ector’ a s always, we have a plethora of e xpert advices sharing their knowledge and tips. peter Buckingham takes a look at ‘g rowing in the Right d irection, strategic planning n etwork’ on page 42 long time contributors Brian and prue Keen explore the topic of ‘Can a franchise fare better in these tough times?’ which gives a great insight into the performance of a regular business compared to a franchise.
To Celebrate Women in Franchising we hear a success story about ‘ empowering entrepreneurship: Josephine aprilia’s Journey with mindChamps’. There is also a Have You s ay where you can read about a legacy of success ‘Ferguson plarre’s m oonee ponds store has changed hands after 25 years’. There is a snapshot on Totally Workwear ‘australia’s l argest Workwear specialist d estination Takes On a Total Business Transformation’.
and of course, there is so much more including franchise news updates, profiles for Right at Home and the upcoming Franchise e xpo in may.
plus you will find the a-Z Franchise listing directory with all of the best franchise opportunities available right now.
Until next time, enjoy the read
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.
Vikki Bradbury Publisher
SUPPLIER FORUM AUSTRALIA and NEW ZEALAND
growing in the right locations...strategic network planning stay one step ahead this fringe benefits tax year cover story unlimited growth potential with Jim’s blindcleaning & repairs latest news in franchising $4.95 (AUD), $7.95 (NZ) inc. GST. VOL18ISSUE 04 MAY/JUNE 2024 A
to thrive in todAy’s MArket
Business
PlAyBook
Cover Story
Profile
32 Right at Home: Why buy a Right at Home, Home Care Franchise?
62 Franchising Expo: Considering a Career pivot or new Business Venture?
12 Jim’s Blind Cleaning & Repairs: Unlimited growth potential with Jim’s Blind Cleaning & Repairs
In every issue
8 What’s New! Announcements from the Industry
14 FCA - FCA Insiders’ Delegation to Canberra Marks a Triumph in Collaborative Efforts for the Franchising Sector
64 Behind the Headlines
67 Professional Services Listings
68 Franchise Listings
71 A-Z Franchise & Services Directory
Snapshot
36 Totally Workwear: australia’s largest Workwear specialist destination Takes on a Total Business Transformation
58 Motto Motto Japanese Kitchen: motto motto Bites into north Queensland with First ever Regional location
Focus
16 Activate Games Inc.: Join the Future of gaming with activate: Where innovation meets entertainment
ma
contents 6 BUsiness FR an CH ise maga Z ine 12
Y/JU ne 2024
18 16 46
30
Expert Advice
20 Brian and Prue Keen: Can a franchise Fare Better in These Tough Times?
24 Helen Kay: Fortifying Your Franchise: Comprehensive strategies to shield Your Business
30 Seva Surmei: What You need to Know about the Franchising Code of Conduct Review
34 Dr. Nigel Bairstow: Understanding the dynamics of Conflict Within Business Franchise systems
38 Robert Toth: The pet supplies, accessories, pet Care and Training sector
40 Stewart Germann: What to look Out for if You Buy a pet Franchise
42 Peter Buckingham: growing in the Right locations… strategic network planning
48 Tony Meredith: a Business Coach’s playbook to Thrive in Today’s market
50 Bill Morgan: Friction at the end may be the Beginning of a dispute
56 Peta Lonergan, ATO: stay One step ahead this Fringe Benefits Tax Year
60 Bruce Bilson, ASBFEO: economic growth is Barely limping along, Businesses encouraged to seek Help and support
22 Kylie Baullo, Managing Director, ADP:
8 in 10 australians are Optimistic about Their Work Over the next Five Years
28 Ferguson Plarre: Ferguson plarre’s moonee ponds store has Changed Hands after 25 years
46 Heath Graham, Belgravia Health & Fitness: maximising Franchise potential: The Vital Role of Franchise advisory Councils
54 Jenny Boymal, Partnerships Manager, The Proven Group: people are the life Blood of every Franchise Business
Women In Franchising
18 Josephine Aprilia, Master Franchisee, MindChamps: empowering entrepreneurship: Josephine aprilia’s Journey with mindChamps
also in this issue: activate games inc. 23, 71 aramex iFC, 71 Bridgestone australia 71 City Cave 37, 71, CoffeeTreat 72 Hydraulink pty ltd 72 ip partnership 67 Jim’s Cleaning group 72 Jim’s pools Care 72 Kumon education 73 Kwik Kopy 45, 73 morgan mac 67 mindChamps 73 myHome 73 pack & send 73, OBC petbarn mobile dog Wash 74 poolwerx 15, 74 Rent The Roo 53, 74 Right at Home 74 shopinsurance / steadfast eastern 67 snap-On Tools 3, 75 soul Origin 75 stagecoach 27, 75 Town & Country pizza & pasta 66, 75 The proven group 67 54
38
Ja X st Mary’s shortlisted for Australian Small Business Champion Award
JAX Tyres & Auto St Marys is capping off a transformative 20 months since the takeover by new Franchisee, Mark Spiteri, by being shortlisted for an Australian Small Business Champion Award, set to be handed out at a prestigious ceremony in Sydney on 12 and 13 April.
n ominated in the ‘automotive m echanical Repairs’ category, alongside small businesses spanning everything from fashion to agricultural services, Ja X st mary’s was assessed against rigorous criteria analysing everything from sales performance to safety standards.
Being named as a finalist is warm recognition for a local business that has been on an impressive upward trajectory since the arrival of new franchisee, mark spiteri, in July 2022. n ot only has the business increased customer volume, but it’s grown its dedicated team, while improving its reputation and standing with customers.
The store’s nps (n et promoter s core), a measure of how likely customers are to recommend a product or service to a friend, has
seen an impressive increase and remains steady at over 84, while their g oogle rating sits at 4.7. For context, a nps score sitting in the 70-100 category is considered excellent especially when you consider the automotive category sits around 55 nps
The addition of new mechanics and front of house staff to the growing team have been key to keeping customers happy, something which mark says is central to the business’s growth.
That customer experience wouldn’t be possible without the team trained and motivated to deliver it, with mark proud to put as much time, money, and effort as possible into attracting, retaining, and supporting his staff, through everything from significant investments in equipment and working environment, down to the high standards he holds himself and his staff to.
MORE
‘HOME’ FOR LESS: National franchise builder meets demand for smaller lot homes
With house prices across Australia steadily increasing and housing affordability decreasing – Australia’s largest franchise builder, G.J. Gardner Homes, has introduced a range of homes, designed specifically to maximise living space on smaller lots.
The trend for smaller lots has resulted in the average site area of new house approvals in australia to decrease (13 per cent) considerably over the past decade, with the average site area of new homes in australia sitting at 432 square metres.
g .J. g ardner Homes Chief Operating Officer (COO) australia and n ew Zealand Chris Thornton said the award-winning builder saw value in releasing a new range of smaller, smarter and more affordable home designs purposely designed for greenfield residential land.
“With rising land costs, home buyers are even more conscious of their money and quite often are working with a smaller budget in mind, yet still dream of owning spacious traditional detached family home,” mr Thornton said.
The new homes have been designed and priced to reflect the needs of the first home buyer market.
“ it is becoming more challenging for hopeful first home buyers to find new build homes under the property price caps to access government grant schemes,” mr Thornton said.
“With our new range and by accessing the government incentives on the table, first home buyers can weigh up the small initial deposit required, and in turn get to enjoy an affordable – yet highquality and spacious – home.”
The g reenfields range offers stylish, modern, one or two-storey, four-bedroom and dual garage homes. The homes are designed to be low-maintenance, promote living at an affordable price, and are designed to fit on a 10 – 12.5-metre-wide frontage.
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New Marketing Executive
Supercharges stockdale & leggo’s Digital Footprint
Melbourne based real estate network, Stockdale & Leggo, is expanding its digital and online footprint with the help of new Marketing & Franchise Executive, Alex Iannelli.
iannelli has had a meteoric rise within the “ stockies Family” starting as a s ales a ssistant at Craigieburn in 2020 before quickly moving through the ranks. she was appointed to her new, head office, role in early February after a 12-month stint in london where she successfully and remotely managed the network’s social channels. That overseas experience convinced her the stockdale & leggo network was ready to elevate its brand with a mix of new digital strategy and ai technology.
according to iannelli, “m ore and more clients are using an agent’s online presence to gauge their approach before making a decision on which agent to buy or sell with.”
“agents themselves are curious about the digital space and are interested in learning about how they can use it as a marketing tool to connect with their clients. i ’m able to help them on that journey on modernising marketing processes to adapt to a digital world,” she added.
But iannelli remains grounded and understands it can’t be all one way when it comes to property engagement.
looking to the future, iannelli believes that ai will become an even bigger factor in managing system processes, but people and connection will remain at the core of the industry.
“my role is really just to celebrate our people and provide them with the tools to elevate their successes with digital strategies and help bring stockdale & leggo into the digital age,” she said.
re Vl Founders disrupting group
fitness
landscape in inspirational international business success story
Founded in 2020, REVL Training embarked on a mission to revolutionise the fitness industry with its unparalleled performance-based, strength and conditioning group training experience.
Co-Founders Ben Woolford and Josh mildren combined their passions and 20+ years of industry experience to launch R e V l , a network of premium boutique gyms that empower members to elevate their training, achieve their fitness goals, and attain longterm results through scientifically backed programming, top-notch coaching, and an exceptional team environment.
d riven by their shared determination to disrupt the group training landscape and creating more opportunities for fitness entrepreneurs, Ben and Josh harnessed their extensive expertise and personal journeys to introduce R e V l as a game-changing offering. Recognising the limitations of existing fitness products, they set out to create a groundbreaking solution that resonates with franchisees, coaches, and clients. Fuelled by unwavering dedication, Ben and Josh successfully established R e V l Training, transforming their vision into a reality.
The opening of the first new franchise location, the maroochydore Q ld studio, marked a major milestone for R e V l , attracting an impressive 120 members on opening day.
R e V l continues to expand globally, with 25+ studios across australia, d ubai, and singapore. The success of existing franchises has spurred demand in new markets like n ew Zealand, the United states, and the UK, while also driving further expansion in existing markets, solidifying R e V l Training’s position as a global leader in the premium group fitness experience.
BUsiness FR an CH ise maga Z ine 9
New hydraulink franchisee Faiyaz Hussein maximises uptime for Wetherill Park industry
A man who prioritises outstanding customer service is taking the next step in his career with Hydraulink, as the owner of the new Hydraulink Wetherill Park franchise.
Faiyaz Hussein has been with the Hydraulink organisation for several years, including two years with the n ew Zealand head office, and more recently as a Hydraulic s ales and s ervice Technician (Hss T) in australia.
“ i got to attend the Hydraulink’s training courses in both countries, and learnt from the most experienced trainers each time, which i found highly valuable to my ongoing development,” says Faiyaz, who also worked with a family member’s hydraulic business before joining the Hydraulink network.
The Hydraulink hydraulic hose and service network includes 14 company-owned sites in australia, 135 network partners, and 150 service vehicles offering 24/7 onsite and mobile services.
“Wetherill park, smithfield, and surrounding suburbs have a great diversity of industry, and most will be using machinery with hydraulics to get tasks done more efficiently and safely,” says Faiyaz.
“Hydraulink has a reputation for high quality product, backed by service, so i ’m looking forward to extending this can-do attitude into new regions, and building long-term relationships with new customers.”
“The support i ’ve received from Hydraulink throughout my whole journey so far has been second to none. i had to return from n ew Zealand to australia for family reasons, and they not only supported the move, but provided me with opportunities here to advance. naturally, i took those opportunities with both hands!”
Former CEO of G8 Education Appointed CEO of MindchaM ps australia & n ew Zealand
mindChamps is setting new benchmarks in the early learning and preschool sector with its expansion strategy across australia. in a significant move to build on this exciting expansion, mindChamps has appointed g ary Carroll as CeO of mindChamps australia and n ew Zealand.
With a wealth of experience and a proven track record in leadership roles, mr Carroll is well-positioned to lead the charge as mindChamps continues to grow and
redefine early childhood education in the region. mr g ary was previously CeO and managing d irector of one of australia’s largest publicly listed early learning education providers, g8 education ltd.
“Having been involved with hundreds of early learning centres, i can truly say, now that i have experienced it firsthand, that mindChamps’ research-backed approach is truly a breakthrough, and i am honoured to be a part of this movement that is set
to revolutionise early education,” said mr Carroll.
d emonstrating its leadership and commitment to excellence in early childhood education, mindChamps currently has a total of 26 franchisees and expanded its footprint from sydney to its first m elbourne centre this year, as well as an upcoming flagship centre in Western australia, slated for the second half of this year.
10 BUsiness FR an CH ise maga Z ine
David Chiem, Founder Executive Chairman and Global CEO, MindChamps (L) and Gary Carroll (R) CEO, MindChamps Australia and New Zealand with kids from MindChamps Early Learning and PreSchool
New Hydraulink Wetherill Park franchise owner, Faiyaz Hussein
The World’s Best Known Economy Hotel Brand Celebrates 50 Years Of Market Leadership, Democratised Travel And The People Who Made
It Possible
This year, ibis, the world’s best known economy hotel brand, celebrates its 50th anniversary. ibis was established in 1974 on three core promises: affordability, innovation and quality. d emocratising travel and hospitality, it was the first hotel brand in europe to make a high quality, comfortable nights stay accessible to all. ibis has democratised travel for 50 years and today is the leading global economy hotel brand, with more than 2,500 locations in 79 countries across the three brands: ibis, ibis styles and ibis budget. Continuing to break new ground with a pipeline of over 320 hotels, ibis will continue to expand its presence to new markets in 2024 and beyond, marking its 50th anniversary by opening into its 80th country by the end of the year, with the opening of the ibis styles Reykjavik muli in i celand.
in recognition of 50 years of market leadership and hospitality for all, this year ibis will launch a new brand culture program, global employee ambassadorship and brand campaign, doubling down on the brand’s founding principles and reminding the world that ibis is the market leader and a brand to love because of its people.
all - accor liVe li
“The 50th anniversary is about reinforcing our position as the leading brand in the economy hotel segment and embracing our future with renewed energy and enthusiasm,” adds l amouche. “For 50 years ibis has got the essentials right and delivered them with heart. people are the differentiator for ibis, because we know you’ll get the most out of your trip when we put the most into your stay.”
g uests, talents and locals can look forward to an exciting year with anniversary events, celebrations and new hotel openings around the world.
M itless Becomes Pay.Com.Au’s
First Hotel & Experiences transfer Partner
Accor, the largest hotel operator in Australia, announced a new partnership with pay.com.au.
a s part of this partnership, accor’s lifestyle loyalty programme, all – accor live limitless, has become pay.com.au’s first hotel and experiences transfer partner. Customers will be able to transfer 4 payRewards points to 1 all Reward point. pay.com.au CeO, ed alder, said: “This collaboration provides an exciting opportunity for business owners to diversify their redemption options, by converting payRewards points to all Reward points and redeeming the points they earn on their business expenses for hotels, experiences and more.”
accor pacific Chief Operating Officer pm& e, adrian Williams, said: “We are thrilled to partner with pay.com.au and to become its first hotel and experiences transfer partner. This partnership isn’t just about rewards — it’s about opening up a world of opportunities by turning business transactions one step closer to a holiday or limitless experience.”
By paying business expenses through pay.
com.au, business owners have the option to earn payRewards points on nearly every transaction, from payroll and rent to aTO bills and suppliers.
Once they start earning payRewards points, they can then convert them to all Reward points directly in their pay.com.au account.
These all Reward points can then be
redeemed for stays at hotels, restaurants, bars, or for tickets to 2,000 worldwide events ranging from local discoveries to the biggest sporting and music events, including Toyota aFl g rand Final, ampol state of Origin, concerts at accor stadium and more.
For more information, visit pay.com.au/ earn-5000-bonus-all-reward-points
BUsiness FR an CH ise maga Z ine 11
ibis CELEBRAtES 50tH ANNIVERSARY
unlimited growth potential with J im’s blind cleaning & repairs
describe your organisation
Jim’s Blind Cleaning & Repairs have been operating since 2001. Jim’s Blind Cleaning & Repairs is part of Jim’s Cleaning Group which currently has over 1,400 franchisees Nationwide.
Operating across Melbourne, Sydney, Canberra, Brisbane & Perth; with expanding franchisee opportunities in other states & regions, we take pride in providing quality
service that always exceeds expectations.
With more than 20 years in the industry, a track record of great reliable service we’ve become a name Australians trust.
What is your main product/ service?
We provide our customers with blind maintenance and repairs services which increase the life span of their blinds, at
the fraction of the price of new ones!
Our franchisee’s are mobile, travelling to customers home or office equipped with all the necessary equipment to fix a wide variety of blinds on site. Unlike other repair companies we also offer off site cleaning services to restore your blinds to a new like state.
What type of person would 'fit' your franchisee profile?
Our franchise opportunities are adaptable to a variety of individuals, particularly those with an enthusiastic and positive mindset. Additional beneficial attributes include proficiency in handyman services and an exceptional attention to detail.
From all walks of life, our team is made up of hundreds of amazing people with stories to share. Franchise owners in Jim’s Blind Cleaning & Repairs come from all parts of the globe and every past career you could think of, from bank managers to cleaners to bus drivers. Many work in teams with their husband, wife or other friends and relatives. It’s often a great bonus that you can help your children, nieces and nephews out with some part time work every now and again.
All of our franchisors have been at the top of whichever field they came from, and many have also been successful franchisees prior to taking on regions. The diversity amongst our group means that the sheer amount of ideas, skills and experience within our group is an asset to all.
Each team member is an important part of the group and we have monthly newsletters, social events, training and franchisee meetings which are designed to share ideas.
Where are your current locations/territories? Where are locations/territories available?
Currently, we have franchise territories available across all states. Our expanding operations fervently call for additional franchisees due to the overwhelming demand for our services, which exceeds what we can presently accommodate. This is your chance to seize this unique opportunity and contribute valuably towards addressing these market needs promptly and efficiently while building a rewarding and successful business endeavour.
cover story: Jim’s Blind Cleaning & Repairs
12 BUsiness FR an CH ise maga Z ine
As a successful franchisee, you are granted the rights to purchase and operate a Jim’s Blind Cleaning & Repairs business in a territory comprising of residential, commercial, industrial and government. This means you are not limited to simply homes and retail and the potential for growth is unlimited!
Territories are non-exclusive giving you the first option on all work with the benefit of being able to decline a lead when necessary which will then be offered to another Franchisee. This ensures you are able to create work-life balance knowing clients are being taken care of whilst giving you freedom to manage your time.
This also works add the benefit of being able to pick up additional jobs when you choose, as you are not limited to only working in your own territory. You can grow your business to any size without purchasing additional territories or franchises and are encouraged to expand your business by employing staff and/ or investing in additional vehicles.
Jim’s Blind Cleaning & Repairs are arguably the best known general cleaning company in
the cleaning industry. Having an established brand name builds trust with customers, making Jim’s a first choice for commercial and domestic jobs.
We see a high number of childcare centres, schools, kindergartens and medical centres seeking our services as the brands is established and they feel confident they are engaging a reputable and trusted company. Having the Jim’s name behind you will take you to a level far above the competition and your work, prices and customers will reflect this.
Why is there a need for this product/service? Why are you different to your competition?
Jim’s Blind Cleaning & Repairs is in such high demand from our clients that we are able to ensure all our new Franchisees great earning potential. At present, we find ourselves unable to service approximately 44% of our clients due to a shortfall in the number of operational franchises.
“ Jim’s Blind Cleaning & Repairs is in such high demand from our clients that we are able to ensure all our new Franchisees great earning potential.”
Still unsure?... The Jim’s Group knows how hard it can be to make the decision to go into business for yourself. BUT we also know that our business works if you follow the system and are committed to looking after your customers and delivering a first class service every time. And so we stand behind this by guaranteeing that every new franchisee, buying a new franchise, will receive a minimum value of work every week. The actual amount of the guarantee is based on your territory and your regional franchisor will confirm this with you. Our pay for work guarantee is what sets us apart from our competitors.
Unique to the Jim’s system, a weekly work guarantee exists Having the Jim’s work to make sure that starting a business does not mean financial stress.
As long as you are available and ready to take as much work as we send you and you are not finding it enough Jim’s will pay the difference. There are of course, conditions on in which is you are to provide free promotional services to potential customers in your area however the benefit of this is you hone your skills and gain more customers. It is a win, win! There are some other conditions which your franchisor can explain in more detail at your franchise interview
how do you look after your franchisees? e.g. what support/ training/back up do you offer?
All our franchisees go through exclusive training at the Jim’s Cleaning headquarters. During this training you will get to meet other franchisees and franchisors. We will go train and educate you on our systems, software and customer service as well as on job training. We also have social functions and communications in place which ensure experienced operators are available to chat to, provide advice and share their experiences.
What is your advice for those exploring franchise opportunities?
Reach out to us! Go on a trial day with an existing franchisee. Make sure you enjoy what you do. Ask plenty of questions. Get phone numbers of other franchisees. Don’t miss the amazing opportunity, contact us now! v
BUsiness FR an CH ise maga Z ine 13
fca insiders’ d elegation to c anberra
(FCA) has concluded an impactful two-day delegation to Canberra. The series of high-level meetings provided the delegation with substantial insights including into the Government approach on the Independent Review of the Franchising Code.
Led by FCA Chair Brendan Green, CEO of Hire A Hubby, and FCA CEO Matthew Monaghan, the delegation of senior Franchise Sector leaders including:
• Richard Thame, CEO of Couriers Please;
• Steve Grossrieder of JAX Tyres and Auto;
• Dan Mesiti, a multi-site Boost franchisee;
• David Mansfield, Managing Director of Ascott Australia;
• Matt Fitton and Amber Biesse, COO and Founder and CEO and Founder respectively of Nurse Next Door;
• Costa Cominos, Associate Director, National Retail Partnerships, Optus; and
• Kerri Wane, CEO of San Churro.
The FCA Insiders group engaged in fruitful
pressing issues of franchising, skill, and workforce shortages, and improvements to the governing framework.
The visit commenced with a critical dialogue with the Office of the Minister for Skills and Training, the Hon Brendan O’Connor, focusing on the pivotal role of franchising in the vocational education and training sector. It progressed to a productive roundtable with Minister for Small Business the Hon Julie Collins, who is at the helm of the Franchise Code Review. Minister Collins reiterated her dedication to a collaborative and consultative approach, ensuring the review’s outcomes are both practical and balanced. Detailed discussions about the workforce issues and the sector’s needs also took place with the office of the Minister for Industrial Relations, the Hon Tony Burke.
An especially informative meeting with the team at Treasury running the Franchise Code Review was another highlight. Discussions with Deputy Leader of the Opposition, the Hon Sussan Ley, and Shadow Treasurer Angus Taylor, further underscored the bipartisan importance of the franchising sector.
presence in Canberra highlights our dedication to fostering a resilient franchising sector to support our members who make up a large proportion of small businesses in Australia.”
-
Brendan Green, Chair of the FCA
The Franchise Council of Australia (FCA) is the peak industry body for franchising in Australia, representing both franchisors and franchisees. With a rich history spanning four decades, the FCA is committed to promoting excellence, best practices, and innovation in the franchising sector. As a national voice on franchising, the FCA advocates for the interests of its members and works collaboratively to ensure the growth and success of franchising in Australia.
Phone: 03 9508 0888
email: info@franchise.org.au
Web: www.franchise.org.au
franchising council of australia (fca)
14 BUsiness FR an CH ise maga Z ine
v
A big future can start small
ESTABLISHED FRANCHISOR OF THE YEAR
3 TIME WINNERS
Your mobile franchise business starts at $90K + GST + Van. Plus, leasing or vehicle financing options are available from $35k + GST.
Scan to learn more or call our specialist team 1800 050 759
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Business hardware, software & mobile water testing equipment
Join the future of gaming with activate: Where Innovat I on Meets e nterta I n M ent
In the dynamic realm of entertainment and recreation options, Adam and Megan Schmidt, proprietors of one of western Canada’s most thriving escape rooms, recognized a demand for a more dynamic and repeatable experience.
Channelling their vision, they mobilized their creative team, engineers, and programmers, who united in their backyard shed and devoted numerous nights to inventing Activate Games. Activate Games is the world’s premier interactive gaming experience. It’s an experience like no other! From jumping, crawling, climbing, problemsolving, and more, this immersive adrenalinepacked adventures await you in each room. Challenge your friends to competitive battles in competitive mode or work as a team to create unforgettable memories in the cooperative mode with hundreds of games ranging from level one - easy to level tenextreme. Activate’s interactive technology tracks your gameplay, allowing you to earn points that move you up the ranks on the
leaderboard. The more points you earn, the more prizes you can access.
Their tireless efforts culminated in the opening of their inaugural location in Winnipeg, Manitoba, Canada, in 2019. Since its inception, Activate has evolved, improving its interactive technology and introducing new games monthly.
Today, Activate stands as a beacon of unwavering commitment, state-of-the-art technology, and unparalleled customer satisfaction, boasting an innovative concept, robust market presence spanning over 30 locations across North America, and imminent expansion to Dubai in the Fall of 2024.
Innovative concept
At the heart of Activate’s appeal lies its innovative concept, which seamlessly blends physical activity with replayable gaming entertainment. Unlike traditional gaming experiences that often involve sedentary gameplay, Activate offers an immersive and exhilarating adventure where players become active participants in the game. Activate transforms ordinary gaming sessions
into dynamic experiences that promote physical fitness and social interaction by incorporating motion-tracking technology and interactive challenges that remind you of your childhood. This unique proposition not only sets Activate apart from competitors but also caters to the growing demand for active entertainment options in today’s healthconscious society.
What further distinguishes the concept is that all aspects of game development, technical support, and hardware production are meticulously crafted at their headquarters in Winnipeg, Manitoba, Canada.
“ Activate’s strategic marketing enables franchisees to tap into additional revenue opportunities through promotions and gift card cross-promotional campaigns. This diversified approach not only enhances profitability but also fosters long-term sustainability and growth.”
16 BUsiness FR an CH ise maga Z ine
focus: Activate Games
proven success Model
One of the key indicators of a successful franchise opportunity is a proven track record of success. In this regard, Activate shines as a beacon of achievement. With a history of successful operations across Canada, the U.S. and opening in Fall of 2024, Dubai, a growing network of millions of satisfied customers, Activate has established itself as a leader in the active gaming industry.
Franchisees can leverage the brand’s established reputation and operational expertise to jumpstart their ventures confidently. Furthermore, Activate provides comprehensive training and ongoing support to franchisees with Activate University, ensuring they have the necessary tools and resources to thrive in their respective markets.
diverse revenue streams
Activate offers franchisees a diverse array of revenue streams, maximizing their earning potential and mitigating risk. In addition to traditional gaming sessions, Activate venues can host birthday parties, corporate events, and team-building activities catering to various demographics and occasions. Furthermore, Activate’s strategic marketing enables franchisees to tap into additional revenue opportunities through promotions and gift card cross-promotional campaigns. This diversified approach not only enhances profitability but also fosters long-term sustainability and growth.
strong brand presence
A strong brand presence is essential for attracting customers and differentiating oneself in a competitive market. Activate hit 1 million followers on TikTok in Canada
before anyone else and is proud of the success that continues. With its dynamic branding and compelling marketing initiatives, Activate has cultivated a loyal following and garnered widespread recognition. From engaging social media campaigns to experiential marketing activations, Activate consistently connects with its target audience and reinforces its brand identity. As a franchisee, you’ll benefit from Activate’s established brand equity and enjoy access to proven marketing strategies and promotional materials to drive foot traffic and boost sales.
community engagement
Beyond its commercial success, Activate is deeply committed to giving back to the communities it serves. Through charitable initiatives, educational programs, the Tournament of Champions, and community partnerships Activate fosters meaningful connections and makes a positive impact on society. As a franchisee, you’ll be able to participate actively in community outreach efforts and contribute to worthy causes, further strengthening your brand reputation and building rapport with local residents.
Activate represents an exceptional franchise opportunity for entrepreneurs looking to capitalize on the burgeoning active gaming market. With its innovative concept, proven success model, diverse revenue streams, strong brand presence, and commitment to community engagement, Activate offers franchisees a winning combination of factors for long-term success. By joining the Activate family, franchisees can unlock their full potential and embark on a rewarding journey towards entrepreneurship, all while delivering unparalleled entertainment experiences to their customers—an experience that remains true to Schmidts’ core.
Learn more today at:
https://playactivate.com/franchising.
BUsiness FR an CH ise maga Z ine 17
e mpowering e ntrepreneurship: Josephine a prilia’s Journey with m ind c hamps
When Josephine Aprilia embarked on her journey as a master franchisee with MindChamps, she was driven by a desire to reclaim her weekends and spend more quality time with her children.
Having a background in retail management, she had become accustomed to the relentless pace of work, but as her children started to get older, she began to regret not having a better work-life balance. This thought became a catalyst for her to begin a new career path, turning her passion for working with children into a business.
While MindChamps was not yet established in Western Australia, the brand possesses a quarter of a century of proven experience in early education, global recognition and research-backed credibility convinced her that it was worthwhile investigating a franchise opportunity with the brand. Josephine was also drawn to the brand’s international presence, particularly in Singapore, a place she frequented due to her Indonesian heritage.
The values upheld by MindChamps, centred around a genuine commitment to nurturing children’s potential, immediately struck a chord with Josephine. It was more than just a business opportunity; it was a chance to make a meaningful impact on young lives.
“The global presence and credibility was what drew me to MindChamps as a potential franchise partner. It just clicked with me as a person right away. It’s all about people. It’s all about the heart for children. That’s it. As simple as that,” said Josephine.
MindChamps has a unique ‘3-Mind’ approach to early learning that is designed to equip the children of today with the foundations of future success. Prioritising the development of learning for children under the age of six, MindChamps students develop the Champion, Learning and Creative Minds through its curriculum.
From her first interaction with the brand, Josephine connected with the team and found that their passion mirrored her own. This personal connection instilled her with confidence and excitement about becoming a “Champ”.
After signing her franchise contract, Josephine was quick to secure her centre. Her dedication
18 BUsiness FR an CH ise maga Z ine W o M en in franchising: Josephine Aprilia | Master Franchisee | MindChamps
and enthusiasm for the brand were soon recognised, leading to an extraordinary opportunity to become the master franchisee for the state – an honour she gratefully accepted.
Transitioning from a regular franchisee to a master franchisee brought forth a new set of responsibilities, with Josephine required to wear two hats. Expanding on her role as a Centre Owner, Josephine found herself immersed in the broader spectrum of the brand’s operations. As a master franchisee, Josephine is not only tasked with representing the brand but also with expanding its footprint in WA.
Her approach prioritises finding franchisees who share MindChamps’ core values and exhibit a genuine passion for children’s education. To Josephine, success is not solely measured by financial metrics but by the positive impact made on a child’s life. “What motivates me is finding the right people. It’s about the journey of connecting with like-minded individuals with the right heart and the right passion for children and education,” she said.
Despite her enthusiasm, Josephine admits she was apprehensive about starting her own business. Concerns about maintaining a healthy work-life balance, especially with the demands of childcare, weighed heavily on her mind.
“Opening up my own childcare centre is not a small thing, it’s a big thing. I was worried about how it was going to fit in with the family routine or if it was going to change the family dynamic, but I’m backed up with everyone in the family supporting me,
so I’m not doing this alone. And besides, I’m always up for a challenge,” said Josephine. Reflecting on her journey, Josephine emphasises the importance of alignment and connection when selecting franchisees. She seeks individuals who embody the spirit of the brand: compassion, dedication, and a genuine investment in children’s well-being. For Josephine, the success of a franchise hinges not only on financial resources but on shared values and a commitment to making a difference in children’s lives.
In navigating the challenges of being a female master franchisee, Josephine has encountered firsthand the occasional scepticism towards her age and gender from external parties. However, having the backing of a well known and respected brand, coupled with her authenticity and unwavering commitment to her passion for childcare have served as powerful tools in overcoming this.
For those contemplating franchise ownership, Josephine suggests the following:
• Embrace the Support: The backing of a franchise system is invaluable, especially in highly regulated sectors like childcare. From operational guidance to marketing support, franchisors provide a comprehensive framework for success.
• Leverage Brand Recognition: Aligning with an established brand not only enhances credibility but also opens doors to prime locations and resources otherwise inaccessible to independent operators.
• Prioritise Quality: The operational standards of any franchise are the cornerstone of its success. Investing in a franchise ensures access to meticulouslycrafted programs and operational procedures backed by research and expertise.
• Embrace Networking Opportunities: Engaging with fellow franchisees and industry experts offers invaluable insights and support. Building a community of like-minded individuals fosters growth and resilience in the face of challenges.
• Stay True to Your Values: Success in franchising isn’t solely measured by financial gains but by the alignment of personal values with the brand’s ethos. Pursue a franchise opportunity that resonates with your passion and principles.
Josephine’s franchising journey has been nothing short of transformative. From reclaiming her weekends with her children to spearheading a franchise expansion as a master franchisee, every step has been guided by a shared vision of nurturing young minds and making a positive impact in the lives of children and families across Western Australia.
With each new franchisee she appoints, Josephine sees not only a business opportunity but a chance to nurture a community dedicated to excellence in early childhood education. v
BUsiness FR an CH ise maga Z ine 19
c an a franchise fare better in these tough times?
We weren’t surprised when we recently read that the accommodation and food services sector is being hit by a wave of insolvencies.
The ABC recently reported that ASIC says more than 1,000 external administrations have been appointed this financial year to March 25 – double the amount from the same time two years ago and 300 more than in 2022. Many of the business owners we met, especially those in the food sector tell us how badly they are struggling, many are facing the very real threat of closing.
Any business which is hit at every part of the business chain, like the food industry today, would be struggling to survive. The Sydney Morning Herald notes that the industry is affected by the same combined crunch as their customers, inflation plus the cost-of -living crisis. This means the cost of their products, wages, electricity combined with a customer base which can no longer afford to spend on eating out, especially mid-range to pricy eating out is making it impossible for many outlets to survive.
It's no wonder a Google search on ‘café closures Australia 2024’ provides a page or more reporting on closure rates throughout the food industry. And the same applies to other sectors, such as builders, for example.
So, is there anything that can be done?
It’s tough and in many cases the answer will be no – it’s already too late and too difficult.
can franchises fare better?
But after so many years in the franchising industry, we wonder if there is something that can be done to at least provide for elegant survival. And yes, we do realise that following all the changes business has had to make through and following COVID, another ‘pivot’ will be as welcome as a shot in the head.
The thing is though, reports from those in the industry show there are two food sectors still performing – albeit with difficult issues to face – very small outlets owner-run with barely any staff and those that are part of a bigger restaurant group or franchise.
So, the question is why?
Very small restaurants surviving with no staff are very draining and not the way to go unless they can be managed in a way that preserves quality of life for the owner/ operators – limiting working hours to something reasonable.
The big groups, especially the good, well managed franchise groups though, have some operating traits which are interesting and worth investigating further.
1. The franchisor owns and looks after the brand
The brand is what the franchisor owns and licences to franchisees for the term of their franchise. Good franchisors spend a lot of time, training and supporting their franchisees to ensure brand consistency across the whole group. They also make sure the brand is kept up to date and appealing to the market – any changes are introduced across the whole group. Think of the big well-known groups. Maccas looks the same – kept up to date wherever it is located even though each outlet is under the management of many different owners. The same goes for Grill’d, Soul Origin, Muffin Break and countless other franchise groups.
Keep your brand singing and in line with market demands.
2. Modern franchisors manage most of the marketing
In this digital world, the days of local area marketing managed by each franchisee have almost gone. Sure, there is often some in some local areas, but digital traffic generation is handled by head office through AdWords, social media and more. But franchisees pay for this work to be done through monthly fees so, every franchisor knows they absolutely must be on top of the game or discontent will engulf them.
The result is, when the going gets tough, then the ad spend is increased and a very careful eye is kept on what is working and what needs to be changed. Marketing is definitely not an area to cut back on, it’s an area to nurture with care.
3. The franchisor keeps a close eye on the stats and the customers
Good franchisors know not only the sales figures of each outlet, but they also know when and what each outlet sells most of and how much, they know where the customers come from and how many kids they have, how much of the turnover is due to takeaway as opposed to eat in and when the ups and downs occur.
4. So, a good franchisor knows when it’s time to introduce change to the chain to meet a changing market
e XP ert advice: Brian Keen | Founder | Franchise Simply
20 BUsiness FR an CH ise maga Z ine
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
It’s no accident that Maccas introduced McCafe all those years ago. They realised that to keep trading in some areas they needed to produce something to keep Mum happy too – that decent coffee was essential to keep the burgers and Happy Meals going.
5. A good franchisor has good relationships with the franchisees and can introduce the changes with elegance
Not easy to do. Each franchisee is a business owner in their own right so making changes across the board won’t appeal to everyone. But handled with care and empathy, keeping customer happiness top of mind means changes can be introduced without upsetting brand consistency.
6. The franchisor is in touch with suppliers and, with substantial trading power, can get the best supply deals around
This is a big one, good franchisors have significant buying power and don’t hesitate to use it to control their own franchisee’s
woes with increasing inflation and costs in the supply chain.
so, join a franchise group or double down and control what
you can
1. Know your business
So, when times get tough, franchisors have the knowledge – they pick the early warning signs things are not so good across the whole chain and start to evaluate what can be done ahead of the curve. They discuss the options with all those affected knowing they can’t deal with everything but knowing every little helps.
2. Make the changes even where they hurt
Know your business, know when your customers want something different. Follow the lead they give you. If it means more bar tables and an increased share plate bar menu rather than fine dining – then do it with grace and brand consistency, giving everyone that special outing at a reduced price. Hopefully the increased trade and reduced costs in service will keep you trading through.
3. Control costs
What can you do to control the cost of goods? Tricky we know but worth a look.
Can you reduce the number of staff needed to serve in a new way? By refreshing your customer sales and supply chain funnels for example.
Look at every aspect of the business to see how much more effective you can be to give your customers your new offering at the lowest cost possible.
4. Keep the marketing going
Above all don’t drop the marketing. If anything, increase the spend here even if that hurts and push the amazing deal you have to offer with your sexy new costeffective dining experience on offer.
In conclusion: stay 100% customer centric with every conversation you have, and every decision you make. And remember, the market suffers these shocks periodically – and comes out of it. Do all you can that’s within your control … and be patient while the market turns round as it always does. Then you’ll be ready to fire up and benefit from all your hard work. v
BUsiness FR an CH ise maga Z ine 21
8 in 10 australians are optimistic
about their work over the next five y ears
• The majority (80%) of Australian employees are optimistic about the next five years in the workplace
• IT & telecommunications (96%), construction (88%) and finance (83%) are the industries with the highest level of positive sentiment
• More than 4 in 5 (84%) workfrom-home employees, across all industries, feel optimistic about the future workplace due to increased flexibility
The latest research from leading HR and Payroll solutions provider, ADP, reveals widespread optimism about the future of work among Australians. Despite ongoing apprehensions about AI, cost-of-living and other concerns, 8 in 10 Australians still report being quite or very optimistic about work over the next five years, influenced by workplace factors such as job security, career satisfaction and professional growth.
ADP surveyed 1,400 Australian workers across various industries and demographics in its People at Work research. The findings also revealed Australians working in IT and telecoms (96%), construction (88%) and finance (83%) have the most positive outlook on their careers.
Comparatively, many employees are concerned about their employers’ lack of focus on the development of career and skill set opportunities, with 40% in transport, 48% in media and information and 50% in retail or trade expressing less optimism than most other industries surveyed.
Kylie Baullo, ADP Managing Director ANZ, emphasised the adaptability of Australian workers amidst evolving workplace and macroeconomic trends. “Australians are an overwhelmingly resilient bunch. Despite the increasing pressures of the cost of living and the widely reported concerns around AI replacing workers and wage discrepancies, our research shows that Australians are positive about the future of work. That said,
“ Flexible working arrangements continue to improve Australians’ hopes for their careers but aren’t the sole solution to employees’ sense of optimism.”
businesses must keep this sentiment alive, especially in light of these concerns,” said Ms. Baullo.
“Employers should continue prioritising supporting and freeing their HR teams from administrative activities to focus on important strategies, such as employee engagement. One option is to outsource backend functions, such as payroll, to third-party experts,” Ms. Baullo continued.
The report also shed light on other factors spurring optimism in the workplace, with increased flexibility high on the priority list for most Australians. In fact, more than four in five (84%) Australians who regularly work from home across all industries report feeling positive about the future of their role for the next five years.
“Flexible working arrangements continue to improve Australians’ hopes for their careers but aren’t the sole solution to employees’ sense of optimism,” said Ms Baullo. “Continuing to reward achievements, addressing mental health concerns, upskilling training programs, and promoting open communication are all essential elements for creating a supportive workplace culture and in turn, creating employee optimism.
“Innovation can also play a key role. By leveraging solutions that automate tasks, such as payroll administration, managers
kylie baullo
Managing Director, Australia and New Zealand.
As Managing Director, Kylie Baullo is responsible for defining and leading the business strategy for ADP in Australia and New Zealand. Ms Baullo works closely with the global leadership team to identify key growth opportunities while leading the country’s vision. Kylie has spent three decades with ADP including 6 years as Vice President of Client Services for APAC and 2 as Managing Director in Australia and New Zealand.
Kylie’s LinkedIn: https://au.linkedin. com/in/kylie-baullo-23424792
can devote more time to supporting and collaborating with their teams,” added Ms Baullo.
As Australian businesses navigate the complexities of the modern workplace, prioritising employee well-being and fostering a culture of optimism emerge as critical imperatives.
For more insights, please read the ‘People at Work 2023: A Global Workforce View’ report at: https://au.adp.com/resources/articlesand-insights
have your say: Kylie Baullo | Managing Director, Australia and New Zealand | ADP
22 BUsiness FR an CH ise maga Z ine
fortifying your f ranchise: comprehensive s trategies to s hield your b usiness
How
Franchise Businesses
Can Proactively Manage Risks to Ensure Long-term Success
In the dynamic world of franchising, where business models extend across networks of franchisors and franchisees, the unpredictability of operational risks looms larger than in many other business types. Each franchise unit not only reflects but also impacts the health of the entire brand. Therefore, robust risk management at all levels becomes not just advisable but essential.
Here, we delve into strategic protections tailored specifically for franchisors and franchisees, highlighting why embracing proactive risk management practices is crucial for safeguarding your franchise against the unexpected.
1structural Integrity: the Foundation of Franchise stability
The structure of a franchise business is pivotal in maintaining operational integrity and financial health. For both franchisors and franchisees, a well-defined business structure protects personal assets from business liabilities and facilitates clearer operational roles.
Specialist franchise lawyers can offer invaluable assistance in setting up structures that enhance stability while allowing flexibility for growth. This structural foundation supports not just individual franchises but bolsters the resilience of the entire network.
e XP ert advice: Helen Kay | Founder | Rise Legal
asset. Intellectual property (IP) protection is critical, securing everything from trademarks to trade secrets and the distinctive brand identity that franchises rely upon. We usually recommend 3 layers of protection, a separate IP entity to hold valuable IP, trademarks to protect the IP legally and an IP licence for rules around use of the IP. Effective IP management by experienced legal professionals ensures that franchises can thrive without threat of infringement, maintaining the unique value proposition that attracts customers and franchisees alike.
4partnerships and relationships: beyond the handshake
3client and customer engagement: transparent Interactions
Clear, legally sound agreements between franchise business owners and their clients, are vital. Such agreements ensure that expectations are managed, service standards are maintained, and payments are processed on time. For franchises, where repeat business hinges on customer satisfaction and brand consistency, legal clarity in client contracts is not just helpful; it's a strategic necessity.
The relationships between co-owners of franchise businesses, whether they are franchisees or franchisors, are crucial. These partnerships require trust and a strong legal foundation to ensure long-term success and mutual benefits. Legal experts with experience in franchise operations are vital for drafting and reviewing co-ownership agreements. These agreements are tailored to clearly define roles, responsibilities, profit sharing, and dispute resolution mechanisms among owners.
This level of meticulous legal preparation helps prevent misunderstandings and conflicts by setting clear expectations from the outset. For both franchisors who may coown the franchising company and franchisees who might partner with others to operate a franchise unit, having ironclad agreements in
place is essential. It ensures that all parties are aligned with the franchise’s goals, understand their individual and collective obligations, and are equipped to handle internal disputes amicably. These agreements fortify the business structure, fostering a cooperative environment that supports sustained growth and stability within the franchise system.
5supplier and vendor Management: ensuring supply chain continuity
For franchises, a reliable supply chain is essential for consistent quality and service delivery. Legal oversight in drafting and reviewing supplier and vendor contracts helps maintain this reliability, safeguarding against potential disruptions that could impact multiple franchise units. These agreements are crucial in setting terms that favour the business, ensuring that supply needs are met promptly and cost-effectively.
helen k ay | Managing d irector | rise legal business l awyers | o ffices: g old coast | Perth | sydney t: 1300 064 707 | e: info@riselegal.com.au | https://riselegal.com. au
helen kay is an accomplished business and franchise lawyer with over two decades of legal expertise. As the founder of Rise Legal, Helen specialises in delivering strategic and practical commercial and franchise legal solutions. Her exciting 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 and franchisees in safeguarding their business through
comprehensive commercial legal support.
the business shield Quiz
To help you navigate this landscape, Rise Legal have introduce the Business Shield Quiz – a groundbreaking tool for Australian small businesses. This free, quick quiz assesses your business’s risk level across our Business Shield areas. It’s not just an assessment; it’s a step towards fortifying your business.
the Quiz: your First Line of defence
In mere minutes, the Business Shield Quiz walks you through a series of questions that span your business structure, intellectual property strategy, client relationships, partnerships, and supplier agreements. The result? A comprehensive report that not only highlights your business’s fortifications but also pinpoints areas in need of reinforcement, enabling you to make informed decisions about your business’s legal health.
Why take the Quiz?
• Spot Issues Before They’re Issues: Spot potential legal landmines before they detonate.
• Tailored Insights: Receive customised advice on bolstering your business’s legal framework.
• Make Smarter Moves: Armed with knowledge about your legal standing, make decisions that steer your business towards sustainable growth.
Rise Legal: Partnering for Your Franchise’s Success At Rise Legal, we specialise in franchise law and are dedicated to constructing enduring frameworks for franchise success. Our team of dedicated lawyers understand the nuances of franchise operations and is committed to ensuring that your journey in franchising is both prosperous and secure.
Embracing comprehensive legal strategies and proactive risk management is indispensable in the franchise business.
Me
With the right legal guidance and tools like the Franchise Shield Quiz, franchisors and franchisees can not only protect but also significantly enhance their business’s potential. Don’t leave the future of your franchise to chance—fortify your business today. v
e XP ert advice: Helen Kay | Founder | Rise Legal
take the Q ui Z Scan
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.
BUsiness FR an CH ise maga Z ine 27
Creative Courage For Life®
f erguson plarre’s
m oonee p onds store has changed hands after 25 years
Marie burrafato: “I have loved working at Ferguson Plarre and will miss coming to the store every day, which has become like a second home to me.”
Family-owned Victorian bakery, Ferguson Plarre’s Bakehouse has bid farewell to its Moonee Ponds franchisee, Marie Burrafato, after more than 25 years with the business.
Marie, who took over the franchise with her husband Sam in the early 2000’s, retired in March after over two decades at the iconic Puckle Street, Moonee Ponds store. Ferguson Plarre has been trading in Melbourne since 1901 and the Moonee Ponds store is their oldest, opening in 1911, and is also the longest trading business on Puckle Street.
Marie Burrafato, who finished up in March, said she would miss her team and regular customers but was looking forward to retirement and a change of pace. “I have loved working at Ferguson Plarre and will miss coming to the store every day, which has become like a second home to me. I have been lucky to meet so many incredible customers and colleagues over the last 25 years.
“A lot has changed in the area since I first took over the ownership of the store but the quality food, drinks and sense of community always remained the same,” she added. The new store owners, David and Audrey Camilleri, who bought the franchise from Mrs Burrafato in late March, said they were already thoroughly enjoying serving the Moonee Ponds community.
28 BUsiness FR an CH ise maga Z ine have your say: Ferguson Plarre
ferguson Plarre has been trading in Melbourne since 1901 and the Moonee Ponds store is their oldest, opening in 1911, and is also the longest trading business on Puckle street
new store owners, david and audrey camilleri:
“It’s an honour to take over the business from Marie who worked there for such a long time. I’m enjoying meeting the regulars and getting to know the Moonee Ponds locals.” which has become like a second home to me.
“It’s an honour to take over the business from Marie who worked there for such a long time. I’m enjoying meeting the regulars and getting to know the Moonee Ponds locals,” David said. “Audrey and I are settling in well so far and have been warming welcomed by the Moonee Ponds community. We have really hit the ground running with our team!”
Ferguson Plarre’s Bakehouse CEO Steve Plarre wanted to thank Marie for her dedication and commitment to the company for more than two decades. “25 years is a very impressive stint. I’d like to thank Marie for her dedication and wish her all the best in her next chapter.
“We’ve been operating in Moonee Ponds since 1911 and while the look of the store has changed since then, the handmade cakes, quality pies and pastries remain the same. We have proudly fed Melburnians for more than 110 years,” Steve added.
When the Bakehouse, then Plarre’s Cakes, first opened, by master pastry chef Otto Plarre, trams, horses and carts were still running down Puckle Street, and there were vacant blocks and paddocks close at hand.
Otto’s pastry chef skills were honed in Munich, Paris and London and the design of the Moonee Ponds store harks back to those
European roots for inspiration. The fit out reflects the early European roots of Ferguson Plarre’s Bakehouse, whilst remaining modern and stylish.
The Bakehouse at Moonee Ponds and the Plarre family’s talent was so well known that in 1963 when Queen Elizabeth II visited Australia to lead the Canberra jubilee celebrations, Eileen Plarre (Otto’s daughter inlaw), then known as “The First Lady of Puckle Street,” was personally requested to bake her famous “Fancies” for the Queen at Parliament House.
Otto’s motto was “Quality, Variety & Good Service,” a motto that the Plarre family still continue to uphold today with the fourth generation of Plarre’s in charge. Michael Plarre carries on Otto’s tradition as the head pastry chef whilst CEO Steve Plarre looks after the retail side of the business as Ferguson Plarre continues its mission to bring happiness to its customers through food.
The Moonee Ponds store is the perfect place to meet for a coffee, sweet treat or lunch, and enjoy a fresh donut or award-winning pie, pasty or sausage roll that Ferguson Plarre is known for. Famous for its Tiddly Oggie, a traditional pasty made with beef and vegetables, Ferguson Plarre has won awards for many of its favourite products, from hot cross buns to decorated cakes.
The savoury range now includes a gluten-free classic beef pie and a gluten free sausage roll, as well as several vegan-friendly pastries, including a plant based Aussie pie and a plant-based Tiddly Oggie. The products are made using the best fresh ingredients, locally sourced where possible. For example, their savouries are made using 100% Victorian beef sourced from farmers near Kyneton, Geelong and Warrnambool or free-range Victorian chicken.
All of Ferguson Plarre’s delicious cakes, pies and pastries are created at its central Keilor Park bakehouse and shipped fresh each day to its 80 stores across Melbourne and regional Victoria. Each week the bakehouse produces more than 300,000 products, the best selling of which is the Classic Sausage Roll, with over 17,000 baked and delivered to stores.
There are lots of exciting things in the works for Ferguson Plarre’s Bakehouse including more stores set to open in the near future. The Moonee Ponds store is located at 54 Puckle Street and is open seven days a week.
For more information about Ferguson Plarre’s Bakehouse or becoming a franchisee, visit fergusonplarre.com.au.
BUsiness FR an CH ise maga Z ine 29
What you need to kno W about the Franch I s I ng code o F conduct rev I e W
The release of a landmark review into Australia’s franchise law has shone a light on potential changes that may soon shake up the industry.
For franchisees and franchisors, it’s good news with the Commonwealth Government making a clear statement on its commitment to supporting the sustainability and growth of this key industry into the future.
Led by small business expert Dr Michael Schaper, the Independent Review of the Franchising Code of Conduct was delivered in Parliament in February this year, making 23 formal recommendations and 34 implementation suggestions for the Government to consider.
This review comes ahead of the existing Franchising Code’s expiration in April 2025, with an updated set of regulations expected to be in place by then.
While final laws will still take some months to be drafted and enacted, the recommendations and suggestions outlined in the Independent Review are the first step in what will ultimately lead to changes in the
franchising industry’s operating landscape – and will be relevant to all stakeholders including new and existing franchisees and franchisors.
the review
Dr Schaper’s review set out to widely consult interested parties across the franchising industry, specifically assessing:
• whether the current Code is fit for purpose.
• the effectiveness of existing regulatory frameworks.
• the role of the Australian Competition and Consumer Commission (ACCC) and the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) in supporting enforcement and dispute resolution.
• the success and outcomes of recent regulatory changes in the automotive sector.
• the implementation and effectiveness of harsher penalties introduced to the Code in 2022.
• the first year of new Franchise Disclosure Register requirements added in late 2022.
the findings and key recommendations
The Independent Review of the Franchising Code of Conduct found the existing Code is generally fit for purpose and highlighted the strength of relationships between stakeholders within the industry in underpinning confidence and ongoing success.
The report outlined a series of recommendations to improve existing processes, minimise duplication and complexity in current or new processes and advance the broader operating environment. One notable recommendation for further investigation focused on a potential fundamental change to the way new franchise systems can be established. That recommendation was to investigate whether a licencing system should be introduced to ensure that franchisors are qualified and meet certain minimum criteria before they enter into agreements with franchisees. Within the current regulations, there are no restrictions on any interested party setting up a franchise system. This suggestion of a licencing system presents an interesting case study for the sector’s participants to mull over, but there
30 BUsiness FR an CH ise maga Z ine e XP ert advice: Seva Surmei | Principal in the Transactions Team | DMAW Lawyers
is no suggestion this change is likely to be implemented in the next round of Code amendments set for early 2025.
Key recommendations outlined include:
• the Code should be remade largely in its current format with reviews to be conducted every 5 years.
• simplifying pre-entry information by merging the disclosure document and the key facts sheet.
• simplifying franchisor obligations in relation to existing franchisees including for existing franchisees to be able to opt out of disclosure and cooling off requirements.
• extending the new vehicle dealership agreement provisions, including the requirement for a reasonable opportunity for franchisees to make a return on investment and compensation for franchisees in the event of early termination, to all franchise agreements.
• enhancing public visibility and usage of the Franchise Disclosure Register, allowing greater transparency for existing or potential franchisees to access information relating to disputes and adverse actions previously taken against a franchisor by enforcement agencies for serious breaches.
• further Government resources to improve guidance and education for franchisees and franchisors.
• greater consultation of franchisees, by the franchise system, regarding major changes to business models during the term of a franchise agreement.
• simplifying the provisions relating to termination by the franchisor for serious breaches and further guidance provided relating to franchisee-initiated exits, to enhance the effectiveness of the existing regulatory framework.
• investigation of the feasibility of introducing a licensing regime to better regulate the franchisee-franchisor relationship.
What this means for existing franchisees and franchisors
It’s important to remember none of the recommendations are yet law – so we’ll need to wait and see what formal action, if any, needs to be taken by new or existing franchisees and franchisors with respect to Dr Schaper’s review.
driving franchising into its next era
While the most recent franchising reviews have centred mostly on disclosure, and adding extra steps in processes for more robust practices, this review and the update
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/
to the Code are not expected to increase the disclosure obligations or add significant effort to ongoing administration and documentation.
The proposed changes should not be cause for concern. There is a focus on finding improvements to strengthen the system for all parties and simplifying processes without adding too many further requirements, and taking a look at the broader state of the franchising industry.
Focus on change management
One of the recommendations relates to change management – helping franchisees and franchisors to navigate unplanned changes or updated requirements not set out or provisioned for in their existing agreements.
With the recent penalties introduced for unfair terms in standard form franchise agreements, a spotlight has been placed on creating more certainty and transparency for franchisees, whilst balancing the need for flexibility in franchise systems..
get your house in order
Regardless of impending regulatory changes, it’s always wise to ensure your business’ house is in order. Prioritise having a team of professional advisors on your side to review any new and existing agreements and ensure your processes are up to date with the requirements of the Code.
Keep abreast of any relevant legal developments, from unfair contract terms to
workplace and privacy law, and actively seek out advice to address any concerns or gaps in knowledge or in your agreements promptly. By being prepared now – and ensuring your existing systems are compliant – you can put your business in the best position to swiftly implement any new changes when the time comes.
Where to from here
With more than 1,100 franchise systems and 70,000 franchisees across the country, the franchise sector is a significant player in Australia’s economy.
Despite tough business conditions in recent years, the franchising industry’s ongoing growth has been secured through the sector’s innovative and entrepreneurial spirit.
The results of this Independent Review and the outlook towards an updated Franchising Code of Conduct in the next 12 months provide insight into the future direction of Australia’s franchising industry.
With business practices and the adaptation of new laws front and centre, franchisees and franchisors should remain on the lookout for updates and announcements from the Commonwealth Government and industry associations throughout 2024.
There are still many questions around obligations and compliance, which will become clearer as laws are drafted and enacted, so for now stay alert and ensure your business is ready to seek advice and act at the right time. v
BUsiness FR an CH ise maga Z ine 31
Why buy a rI ght at h o M e, ho M e care Franch I se?
Joining a network of dedicated, passionate local business owners is a safe and rewarding business opportunity. The home care industry is worth over $40b per annum, one of the largest markets in Australia.
An ageing population, disability services, shorter hospital stays and a preference for ageing at home are fueling the demand for in-home care services.
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.
The upfront cost is $120,000 for the franchise fee and you will need an additional $80,000 in working capital. Established franchise offices make returns many times this investment every year. Most offices reach financial breakeven within 12 months of start.
We have finance available for qualified candidates.
We currently have 49 franchisees in our system covering Queensland, most of Sydney and some regional areas of NSW, Perth and Kalgoorlie, Southwest Victoria, 3 offices in Melbourne and Adelaide Central.
There are still prime territories available in regional NSW, Perth, 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. We provide population maps and demographic statistics to help with territory selection. All territories are based on population figures so larger geographic territories are mostly found in regional areas, whilst metro cities can host many offices.
The initial training is a commitment of two weeks full time in Brisbane and the cost of training is included in the franchise fee.
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.
Because we are an approved provider of Home Care Packages you can hit the ground running with government funded aged care at-home services.
We manage the website, search engine optimisation, pay per click programs, internet advertising, and media advertising to drive customers to your new offices. We run television advertising in most markets.
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.
• How often will a field manager/BDM visit franchisees?
In addition to the RightStart© support, annually the home office will visit each owner to assist with reviewing and setting targets for the next trading period and discuss any issues or opportunities.
• How do you garner and monitor franchisee feedback?
Feedback is garnered through regular audits and client reviews and regular conversations with the home office.
• What product or service innovations will you bring in next year to help franchisees boost their businesses?
With bespoke skills in each office, franchisees are free to develop their own service innovations suited to those skills such as palliative care and allied health.
Contact Right at Home for your own rewarding career change and own your own homecare business.
Search https://www.rightathome.com.au/
32 BUsiness FR an CH ise maga Z ine P rofile: Right at Home
business-opportunities
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.
GREAT FRANCHISE LOCATIONS:
• Coffs Harbour
• Caringbah
• Randwick
• Wollongong
• Bateman’s Bay
• Melbourne
• Adelaide
BUsiness FR an CH ise maga Z ine 33
1300 363 802 rightathome.com.au
u nderstAnding the dyn AM i C s of Confli C t Within Business
M s
Business franchises have emerged as a prevalent and effective strategy for business expansion, offering entrepreneurs the opportunity to own and operate under an established brand, product, or service.
Through franchise systems, companies can rapidly expand their market presence, tap into local markets, and boost revenue streams. However, like any intricate business arrangement, franchise systems are susceptible to conflicts. Understanding the
dynamics of conflict within these systems is vital for preserving relationship harmony, safeguarding brand integrity, and ensuring long-term success. These conflicts, whether temporary, permanent, or imagined, are inherent to business franchise systems.
the Franchise relationship
The foundation of a franchise system is the relationship between the franchisor and the franchisee. A franchisor is the owner of the business, while the franchisee is an independent operator who licenses the right to use the franchisor's brand, products, and services. This relationship is
contractual and legally binding, outlining the rights, responsibilities, and obligations of both parties. Conflicts often emerge when expectations and realities within this relationship diverge. However, franchise relationships need be underpinned with regular consistent communication to reduce harmful effects of franchise conflict. Conflict is inevitable in a Franchise System and its needs to be managed before it escalates and impacts the franchise systems efficiency and harms relationships.
1. Divergent Expectations
Franchisees enter into an agreement with certain expectations. They anticipate receiving the necessary support, training, and resources from the franchisor to ensure the success of their business. Meanwhile, franchisors expect franchisees to operate according to their established standards and protect their brand's reputation. When these expectations are not met, it can lead to disputes and conflicts.
2. Asymmetrical Power
The franchisor-franchisee relationship often involves a significant power imbalance. The franchisor usually holds more power because they control the brand and the franchise system. This power dynamic can lead to conflicts when franchisees feel unheard, undervalued, or unfairly treated by the franchisor.
sources of conflict in Franchise systems
Understanding the sources of conflict within franchise systems is vital for addressing and preventing disputes effectively. These conflicts can emerge from various areas:
1. Contractual Disagreements
The franchise agreement is the cornerstone of the relationship between the franchisor and franchisee. Permanent conflicts may arise if the contract is not clear, if either party breaches its terms, or if there are ambiguities and misunderstandings within the agreement. Contractual disagreements can pertain to issues such as royalty fees, territory rights, and renewal terms.
2. Quality Control and Brand Standards
One of the main attractions of franchising is the consistent brand experience that consumers expect. Temporary and permanent conflicts can arise when franchisees deviate from the franchisor's brand standards or when franchisees believe that these standards are too stringent and costly to maintain. Striking a balance between uniformity and flexibility is a challenge for both parties.
34 BUsiness FR an CH ise maga Z ine
e XP ert advice: Dr. Nigel Bairstow | Academic Practitioner
fr An C hise s yste
3. Territory and Market Conflicts
Franchisees often operate in exclusive territories, and permanent conflicts can arise when territorial boundaries overlap or when franchisees feel that the franchisor is not adequately protecting their exclusive rights. Market competition can also lead to disputes when multiple franchisees are vying for the same customer base.
4. Operational and Training Issues
Franchisees require proper training and operational support to effectively run their businesses. Temporary conflicts can emerge when franchisees believe that the franchisor is not delivering on its promises regarding training, marketing support, or product quality.
5. Change Management
Adapting to change is a significant source of temporary conflict in franchise systems. When the franchisor introduces new products, marketing strategies, or operational procedures, franchisees may resist these changes, believing that they will negatively impact their businesses. Managing and communicating these changes and ensuring franchisee buy-in is a delicate balancing act.
6. Favouring one Franchisee over another
Sometimes conflict can be an be an imaginary conflict. This can be when; a franchisee perceives that the franchisor is intentionally favouring other franchise locations over theirs in terms of promotional support and marketing resources. Despite evidence suggesting equal treatment among all franchisees, the franchisee harbours a belief that they are being unfa irly d isadvantaged.
conflict resolution and prevention
Resolving conflicts and preventing them from escalating is essential for maintaining the stability and success of franchise systems. Here are some strategies for both franchisors and franchisees:
1. Clear and Comprehensive Contracts
Thoroughly drafted franchise agreements that clearly outline the rights, responsibilities, and expectations of both parties are crucial. Legal counsel experienced in franchise law should review these contracts to ensure they are fair, equitable, and devoid of ambiguities.
2. Effective Communication
Open and transparent communication between franchisors and franchisees is key to preventing and resolving conflicts. Regular meetings, feedback channels, and grievance mechanisms can help identify and address issues in their early stages.
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.
3. Training and Support
Franchisors should provide comprehensive training programs and ongoing support to help franchisees succeed. A welltrained franchisee is more likely to meet brand standards and operate successfully. Adequate support can also prevent conflicts stemming from operational issues.
4. Mediation and Arbitration
In the event of a dispute, mediation and arbitration can be valuable tools for conflict resolution. Including dispute resolution mechanisms in the franchise agreement can help both parties address issues without resorting to costly and time-consuming legal battles.
5. Ongoing Relationship Building
Franchise relationships should be viewed as partnerships. Building and nurturing these relationships over time can foster mutual trust and understanding, making it easier to resolve conflicts when they arise.
the role of technology in conflict Management
Modern technology has had a significant impact on how franchise systems manage conflicts. Tools such as customer relationship management (CRM) software, social media monitoring, and online communication platforms allow franchisors to stay connected with their franchisees and consumers. By leveraging these technologies, franchisors can promptly address emerging issues, provide support, and gain insights into customer experiences.
Additionally, technology can help streamline the franchise management process, reducing potential sources of conflict. Centralised systems for ordering supplies, managing inventory, and tracking financial transactions can improve operational efficiency and minimize disputes related to orders, deliveries, and finances.
case studies: Franchisee conflicts
McDonald's: McDonald's, one of the world's largest fast-food chains, has faced various conflicts with its franchisees over the years. These conflicts have ranged from disputes
over menu changes and pricing strategies to concerns about restaurant remodelling requirements and operational expenses. Franchisees have sometimes accused the company of implementing policies that prioritize corporate profits over the interests of individual franchise owners.
Subway: Subway, known for its submarine sandwiches, has experienced conflicts with franchisees regarding issues such as royalty fees, advertising expenditures, and store profitability. Franchisees have raised concerns about the company's handling of franchisee-owned restaurants, particularly regarding support, marketing initiatives, and product quality standards. In some instances, franchisees have taken legal action against Subway over alleged unfair business practices.
Dunkin': Dunkin', the popular coffee and doughnut chain, has encountered conflicts with franchisees related to store remodelling mandates, product pricing, and supply chain issues. Franchisees have criticized the company's directives regarding store upgrades and have expressed frustration over perceived lack of transparency in decision-making processes. Additionally, disputes have arisen over the allocation of advertising funds and the impact of corporate policies on franchisee profitability.
To conclude, understanding the dynamics of conflict within business franchise systems is essential for franchisors and franchisees to maintain strong, successful partnerships. By recognising the sources of conflict and implementing effective conflict resolution and prevention strategies, these relationships can thrive and continue to contribute to the growth and success of the franchise business model. Furthermore, leveraging technology to facilitate communication, streamline operations, and gather data is increasingly important in managing and preventing conflicts within franchise systems. Ultimately, fostering a culture of cooperation, trust, and transparency between franchisors and franchisees is key to long-term success in the world of franchising.
BUsiness FR an CH ise maga Z ine 35
v
The Totally Workwear business, its brand, and the unique franchise system at the core of its success, has recently undertaken a total transformation. Delivering on a strategy designed to set solid foundations for sustained profitable growth.
The launch of its refreshed brand in late 2023, provided the formwork to deliver a clear brand mission focused on Trade, Safety and Uniforms, with a strong slab then set by mixing in a customer value proposition aimed at inspiring Australian workers to ‘Love Your Work’. A suite of innovative eCommerce upgrades and digital platform solutions now bolster its omni-channel experience and provide an impermeable sealant to this solid foundational layer.
The team at Totally Workwear have continued doing things properly, not probably, in 2024, fast framing up their 90-store footprint with all new facades and delivering authentic brand activations that are reinforcing the networks leadership position in the Australian workwear industry and attracting the attention of new investors to the Wesfarmers owned, Workwear Group operated franchise model.
“Substantial stakeholder engagement, time and investment has gone into the foundation
setting phase of our strategic plan in recent years, the outcomes of which you are now beginning to see in market, as we deliver against the key pillars that will underpin our growth ambitions”, said Head of Totally Workwear, Troy Yewdall.
With solid foundations set, Totally Workwear now turns its attention to the sustained profitable growth phase of its strategic plan. A bold future vision encompassing world class store design, CX and range architecture programs, alongside a series of digital enablement initiatives designed to enhance system scalability and a network development framework supporting franchisees with footprint growth.
“In constructing our strategic foundations and future state objectives around a culture
centered on creating authentic customer connections, we are also able to provide a robust return on investment proposition for our key stakeholders, investors and partnerss”, commented Troy.
As the business approaches 30, it seems the brand and its franchise system are just hitting its straps… perhaps the result of a strong upbringing from its parent entities, where iconic Australian brands like KingGee are nudging 100 or possibly the influence of its long-term franchise operators and the family like culture they have helped create at Totally Workwear.
Whatever the reason or influence, Totally Workwear clearly isn’t your run of the mill franchise system, it wasn’t born out of a royalties for revenue box and doesn’t subscribe to over prescribing.
It’s created trust through transparency and seeks to support entrepreneurial endeavour from its franchise operators.
A business where the people are humble, hard-working, and honest, where they like a laugh and love their work.
sna P shot: Totally Workwear
v Austr Ali A’s lArgest Work W e Ar sPe C i Alist d estin Ation tAkes o n A t otAl Business t r Ansfor MAtion 36 BUsiness FR an CH ise maga Z ine
t he p et supplies, accessories, pet care and training sector
There is a song by Carrie Underwood called “The More Boys I Meet” where she writes in a funny way about all the men she met being inferior to her beloved pet (and also her dog being less messy than the guys!) … We all love our pets and many love their furry dogs, cats, lizards, and turtles more than humans!
Pet ownership significantly increased during Covid which led to increased demand for all pet services including veterinary services, on line accessories, pet care, home pet sitting and walking, dog washing, training even hydrotherapy.
Australia has one of the highest pet ownership rates around the world with over two-thirds of households owning a pet. I now get my boxer Bella’s dog food home delivered in bulk on auto delivery, so I don’t have to stress about running out of dog food and then I usually pop into a pet store to top up on treats.
the sector
The sector has had a huge variety of smallscale operators providing these services online retailers, with larger retailers and on line pet sales companies emerging such as PETstock (now 55% owned by Woollies) and Bunnings ramping up their sector in pet supply products.
Industry revenue has grown at 3.8% over the past five years to reach an estimated $3.7bn in 2023 yet despite healthy growth in revenue, profit margins have failed to rise at the same rate.
Demand for pet supplies will continue to grow with pet food being around 55% of the overall revenue and animal healthcare products at around 16% the balance being products and accessories.
The specialty pet sector is estimated to be worth an eye-watering $10 billion a year
and includes pet training, dog washing, dog walking and training.
Franchising
Franchising as a business model is well entrenched in this sector in retail and on line pet supplies, pet accessories, pet minding services, pet training, mobile dog wash and Veterinary services.
The cost of entry into all of these franchises varies hugely as do the demands and obligations on franchisees both in cost and time and attention needed.
Some franchises such as a retail pet store or dog training facility require large capital outlays of up around $300,000 to $400,000 whilst other franchises such as mobile dog wash franchises around $40,000. to $60,000.
As with any business franchisees should consider the business model that best suits their needs and budget.
Here are some key issues to consider:
• The budget - work out how much do you want to invest comfortably to take up a franchise – ensure you are not too highly geared on borrowing, and you have enough working capital to cover the first 6 to 8 months of operation.
• Full time or part time? - Do you want a full time or part time commitment or have a work life balance?
• Financial due diligence - As much as you may be dealing with something you love around pets you are still running a business and need to ensure the numbers work - so do your due diligence and financial analysis that is:
- Can you take a salary for your efforts?
- Do you need to operate from premises, or can you operate on line or mobile which has substantially less overheads –no lease, less insurances, less staff?
• The longevity test - Can you see yourself doing this work in 3 or 5 years’ time or is it something you will get bored with quickly and then need to exit ?
e XP ert advice: Robert Toth | Special Counsel | Sanicki Lawyers
franchising feature
• Feedback - Talk to other franchisees in the system you are interested in and get their feedback on the system and the franchisor - do they get the support they expected from the franchisor? have many sold their franchises and if so, how easy was it and were they able to realise a reasonable return on sale or did they have to walk away and crystalise a loss?
• Specialist Advice – Have you sought specialist Franchise legal and financial advice before committing to the franchise? Are you aware that you have the right to cool off and or change your mind in the 14 day disclosure period?
the main players in the sector
The main players in the sector are Greencross Group (Petbarn), PETstock, Pet Shop Direct and more recently Bunnings.
Greencross Ltd operates around 275 specialty large format pet stores (City Farmers & Petbarn) throughout Australia and New Zealand with an enterprise value of around A$1.7 billion.
The cost of becoming a franchisee is not cheap for example a turnkey PETstock
robert
is
and
at
Lawyers with over 35 years of experience in franchise, licensing and distribution law.
Robert is also an Accredited Commercial Law Specialist and regularly publishes articles on franchising in Australia and overseas journals and acts for a number of overseas, local and master franchisors and acts in dispute resolution and mediations. contact robert@sanickilawyers.com.au or even call him on mobile 0412 67 37 57 www.sanickilawyers.com.au
franchise will cost around $350,000 which includes fit-out, stock, forklifts, signage, and computer system.
Woolworths’recognised the value in the sector when it acquired a 55% stake in PETstock with almost 300 stores, 160 grooming salons and 65 vets bringing in $979 million in annual sales.
Bunnings has recognised the value in this sector and announced this sector as their “biggest category expansion in 20 years,” doubling its range of pet products including food, toys, and accessories.
Lonely Pets Club is on expansion plans around Australia for those that love dog
walking and doggy day care and is an affordable entry for franchisees not looking for a full time commitment.
If you are more interested in dog training there are new franchise opportunities with companies such as Pro Dog Training, although this requires a bricks and mortar presence with an outlay of around $300,000 to $400,000 which includes the initial franchise fee of $50,000 and a flat 10% royalty on gross sales with no additional hidden fees.
Other more affordable franchises include dog training, pet sitting and walking and dog grooming like Blue Wheelers or Aussie Pooch Mobile Dog Wash for an investment of around $15,000 to $20,000.00.
As with many sectors there are more and more players coming into the sector and larger retailers are now realising the value in the sector and like all sectors it is becoming a very competitive market.
summary
As I say in most of my articles if you are considering entering this sector as a franchisee, your best insurance, and the best way to make an informed decision is to seek advice from a Franchise Law Specialist and do your financial analysis before you commit as once you get into a franchise it is not easy to exit. v
BUsiness FR an CH ise maga Z ine 39
toth
Special Counsel
Franchise Specialist
Sanicki
fur BABies
WHAT TO LOOK OUT FOR IF YOU BUY A PET FRANCHISE
stewart g ermann founded Stewart Germann Law Office (SGL) in 1993 as a boutique law firm at Auckland, New Zealand, specialising in franchising, licensing and business law.
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
Just about everyone loves pets, be they dogs, cats, rabbits or guinea pigs. I would not deem goldfish in the same category but many people also like them.
Life is better with a pet but they can’t care for themselves and that why humans exist. In New Zealand we have a number pet franchises including Jim’s Dog Wash and Bark Busters. We also have franchised pet shops including Animates and Pet Essentials.
I really like Animates which are franchised pet shops. Animates say that their purpose “to make our world a happier place through the love of pets”. They go on to say: “At Animates, our belief is that life is better with pets. We understand the joy when your dog greets you at the door or the comfort of your cat curled up on your lap. We understand the unconditional love that pets
bring to our lives, each and every day. We’ve dedicated ourselves to creating an awesome experience for people and their pets – to provide our customers with everything they need to become great pet parents, alongside supporting the pet community with fundraising, donations and local events.”
As with any prospective franchise purchase, you need to do your due diligence. This includes finding out information from the franchisor such as the following:
• Franchisor’s financial health and history
• How long has the system been franchising
• Details of pilot operation results – how many different animals
• Type and level of head office support and full details of the training
• Territorial practices and exclusivity terms
• Do you need to buy products from the franchisor?
• Operating restrictions and launch assistance
Once you like the franchisor and the franchisor likes you and you have found out necessary information, you should be given a copy of the franchise agreement. This is the key legal document and it will cover the following:
• Geographical area and types of customers to whom you may sell
• Your rights to sell or transfer ownership of the business
• Nature and extent of your obligations to the franchisor, including buying supplies and services
• Right of renewal
• Terms and conditions under which you may terminate the contract, if any
• Fees which you would have to pay like royalties and marketing
• Precise boundaries of the territory
• Compliance with the Animal Welfare Act 1999
• Compliance with local Council regulations You should engage an accountant to examine the books and records and undertake some financial projections. Also if you have to borrow any funds you must know that the business will be able to service your proposed borrowings and still leave an adequate return.
If you decide to go ahead with purchasing a pet franchise you will need to think about the business structure – usually a new franchisee will set up a company and the directors will be the guarantors. Owning the franchise as a company will make it easier should you decide to sell the business further down the track. In New Zealand a company’s profits are taxed at 28%.
You also need to think about how many employees you will need and employees should be chosen carefully as the franchise may operate outside regular business hours and prospective employees will likely need to have experience with dealing with animals. All employees will need to have a written employment contract setting out the terms and conditions of their employment, eg wages, responsibilities.
If you need to lease premises then you will need legal advice as you must understand the lease document. As part of your due diligence you should obtain legal advice from a franchising lawyer with experience in the area.
If you love animals then a pet franchise might suit you. Do your homework, choose the brand carefully, talk to other franchisees about the franchisor, and enjoy the emotional experience. v
40 BUsiness FR an CH ise maga Z ine e XP ert advice: Stewart Germann | Franchsing Lawyer | Auckland, New Zealand
franchising feature
BUsiness FR an CH ise maga Z ine 41 our next Feature: ho Me serviCes AUSTRALIA and NEW ZEALAND next month our s pecIaL Feat U re on home services franchises provides the perfect opportunity to showcase your Franchise. For advertising opportunities please contact vikki bradbury at: vikki@cgbpublishing.com.au
g ro W ing in the right lo CAtions… s tr Ategi C net Work Pl Anning
If you are going to open a franchise, or you are the franchisor of a big network of stores, and the Board expect the number of outlets to increase – how do you decide where to look? The answer is to look at the numbers!
How often do we make a decision because it feels right? In most cases you are probably proven correct, however if it does not come off, do you feel a bit of a goose?
Australia has a wealth of information to help you make the correct decisions. We had a Census in 2021 which was released in 2022, and this, and the Australian Bureau of Statistics give you excellent information you can rely on.
The census tells us how Australia is as of a certain date – think of it like a Balance Sheet. On the 10th August 2021 – we had a population of x, average income of y and z% of us was born overseas. We can even compare this with the 2011 and 2016 Census if we want, and see what has happened IN THE PAST!
In financial speak, the difference between 2 Balance Sheets is a Profit and Loss, or what has happened in between (the changes). However most of us do not want to look backwards – we want to know what is going to happen in the future.
growth forecasting
There are a couple of ways to look at forecast growth, such as extrapolating between 2 past points in time, and take the change and move it forwards. However our friends at the ABS do it far better than just that.
In October 2019, the ABS released their forecasts for 2017 – 2032 for population projections by gender and by 5 year age groups for the
Department of Health. This data is the gold level data for consistently looking at future population growth, having taken in contributions from States, Councils and Federal policy settings to come up with the best available projections
While Covid has had some effect on this, stable areas will remain stable, while growth areas will continue to grow, and there is some regional areas that will exceed original expectations for the next few years I expect.
According to our Treasurer The Hon Jim Chalmers MP, and the 6th Intergenerational Report released in 2023, Australia’s population is expected to reach 40.5 million in 2062-63. We can see the small “speed bump” due to Covid 19 however the long term effect can be altered by Commonwealth migration policy.
The different lines on the graph below show the projections at various times over previous Intergenerational Reports (IGR)
42 BUsiness FR an CH ise maga Z ine e XP ert advice: Peter Buckingham | Managing Director | Spectrum Analysis Australia Pty Ltd
Peter buckingham is the Managing Director of Spectrum Analysis Australia Pty Ltd, a Melbourne based mapping, demographic and statistical consultancy. Peter is a CFE and Certified Management Consultant. Spectrum specializes in assisting clients with decisions relating to store location and territory planning, using various scientific and statistical techniques. to contact Peter email peterb@spectrumanalysis.com.au or call on (03) 98300077 or 0411 604921.
Not only can we see forecast Total Population growth, we can see it by certain age groups, and this needs to be taken into account in what you are trying to sell. The chart below called a Tornado diagram which shows what % of the population falls into what age group, starting in 1982, then 2022 and finally the expected for 2062.
Over time we can see a huge aging of the population especially when looking at the older population, especially the group 85+.
age structures, 1982–83, 2022–23 and 2062–63
If we look at an area like Wyndham in Melbourne or Bringelly in Sydney, the numbers are expected to sky rocket. Basically whether you are selling mortgages, school uniforms or many other services for young families – it should be strong.
SA3 Area: Wyndham
Population Projected (2017) : 246,455
Total Population Projected (2022) : 314,957
Population Projected (2027) : 381,003
Total Population Projected (2032) : 444,605 • Total Population Change 2017-2032 proj. (pct): 80 %
Total Population Change 2017-2032 proj. : 198,150 persons
“ Not only can we see forecast Total Population growth, we can see it by certain age groups, and this needs to be taken into account in what you are trying to sell.”
Imagine selling children’s shoes and offering child minding services in this area:
SA3 Area: Wyndham
• Age 5-19 Projected (2017): 51,164
• Age 5-19 Projected (2022): 69,551
• Age 5-19 Projected (2027): 86,664
• Age 5-19 Projected (2032): 102,560
• Age 5-19 Change 2017-2032 proj. (pct): 100 %
• Age 5-19 Change 2017-2032 proj.: 51,396 persons
the highest growth statistical area 3’s (sa3) across australia can be summarised as:
By # Change (> 50,000)
Source: Customised projections prepared for the Australian Government Department of Health by the Australian Bureau of Statistics (2017-2032)
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•
•
•
•
SA3 Name State Population Projection 2017 Population Projection 2032 # Change Wyndham VIC 246,455 444,605 198,150 Whittlesea - Wallan VIC 233,187 398,667 165,480 Casey - South VIC 187,712 332,759 145,047 TullamarineBroadmeadows VIC 176,098 288,017 111,919 Melton - Bacchus Marsh VIC 167,750 279,517 111,767 Bringelly - Green Valley NSW 112,509 220,155 107,646 Wanneroo WA 199,048 306,204 107,156 Sydney Inner City NSW 239,553 339,883 100,330 Blacktown - North NSW 100,976 193,164 92,188 Melbourne City VIC 159,050 249,405 90,355 Ormeau - Oxenford QLD 132,732 216,042 83,310 Cardinia VIC 102,704 176,923 74,219 Campbelltown (NSW) NSW 166,032 235,193 69,161 Swan WA 136,038 204,883 68,845 Springfield - Redbank QLD 90,932 156,805 65,873 Dandenong VIC 200,015 256,606 56,591 Auburn NSW 97,821 152,752 54,931 Parramatta NSW 150,866 202,796 51,930
Total
Total
•
By % Change (> 60%)
Source: Customised projections prepared for the Australian Government Department of Health by the Australian Bureau of Statistics (2017-2032)
By contrast Port Stephens in NSW is still growing, but it is becoming a retirement centre:
SA3 Area: Port Stephens
• Total Population Projected (2017): 73,520
• Total Population Projected (2022): 76,812
• Total Population Projected (2027): 79,578
• Total Population Projected (2032): 81,638
• Total Population Change 2017-2032 proj. (pct): 11 %
• Total Population Change 2017-2032 proj.: 8,118 persons
Whilst the population is expected to grow 11% or 8,118 people, what would happen if you are trying to sell school uniforms there?
• Age 5-19 Projected (2017): 13,522
• Age 5-19 Projected (2022): 13,487
• Age 5-19 Projected (2027): 13,397
• Age 5-19 Projected (2032): 13,203
• Age 5-19 Change 2017-2032 proj. (pct): -2 %
• Age 5-19 Change 2017-2032 proj. : -319 persons
The projected number of school age children is expected to drop by 2% or 319 children over the same 15 year period.
What does a high growth area look like?
If I had to summarise a high growth areas almost anywhere in Australia I would expect:
• High % of young families
• High levels of ethnicity as many immigrants are very keen to purchase a house at their earliest convenience, and often with their community who are in a similar situation
• Most families have a mortgage and in many cases both parents working
• A high demand for child care
• Low levels of socio economics, normally what we expect with young families trying to purchase a house
• Older cars – often needing work to remain on the roads
• Smallish modern houses, in fairly tight living (small blocks of land)
• A high % of multigenerational families – often up to 3 or even 4 generations
We need to think of this as opportunity for certain products and services, and try and bring them into the areas.
summary
Demographics and population forecasting can tell us a great deal about an area, and help guide us in our decision making. I suggest you think for the long term (10 – 15 years), and if what you are planning to sell matches in with the current market available, and how will it go in 10 – 15 years’ time?
If you are a potential franchisee, this can assist you in deciding the right type of business for your area given most people consider areas close to home when they buy a franchise, and most customers purchase near where they live. If you are considering a sea/tree change, similar population forecast information can be discovered for any region around Australia.
If you plan joining a mature network of stores (eg McDonalds, KFC, Ampol or 7Eleven), or you want to open a service franchise across Australia (Jim’s Everything), one of the best ways to expand is to be aware of the high growth corridors, and make sure you are ready to open when the time is correct.
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e XP ert advice: Peter Buckingham | Managing Director | Spectrum Analysis Australia Pty Ltd
SA3 Name State Population Projection 2017 Population Projection 2032 % Change Molonglo ACT 5,715 20,782 263.6% Serpentine - Jarrahdale WA 29,566 63,757 115.6% Bringelly - Green Valley NSW 112,509 220,155 95.7% Blacktown - North NSW 100,976 193,164 91.3% Rouse Hill - McGraths Hill NSW 36,218 69,055 90.7% Jimboomba QLD 49,760 94,077 89.1% Kwinana WA 41,866 75,611 80.6% Wyndham VIC 246,455 444,605 80.4% Casey - South VIC 187,712 332,759 77.3% Wollondilly NSW 43,285 76,221 76.1% Springfield - Redbank QLD 90,932 156,805 72.4% Cardinia VIC 102,704 176,923 72.3% Whittlesea - Wallan VIC 233,187 398,667 71.0% Melton - Bacchus Marsh VIC 167,750 279,517 66.6% TullamarineBroadmeadows VIC 176,098 288,017 63.6% Ormeau - Oxenford QLD 132,732 216,042 62.8% Palmerston NT 36,888 59,864 62.3% Parramatta NSW 150,866 202,796 51,930
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m aximising f ranchise p otential: t he vital role of f ranchise a dvisory councils
In the dynamic world of franchising, adaptability and innovation are key ingredients for sustained success. Franchise Advisory Councils (FACs) stand at the forefront of this pursuit, serving as invaluable conduits for real-world insights and actionable feedback from franchisees directly to the franchisor.
After all, it’s the franchisees who are on the ground every day at the frontline of the business. As a cornerstone of many reputable franchise groups, FACs play a pivotal role in steering brands towards relevance and excellence in an ever-evolving market landscape.
experts nationally across the Jump Swim School network. Heath has over 15 years’ experience, first joining Belgravia in 2008, and has worked across a range of franchise brands gaining a broad range of franchise and business experience.
Heath has had several management roles, including sales, project management and multisite operations management, and also recently played a key role in overseeing the growth and opening of various franchise businesses. Heath is highly skilled and passionate in business operations and oversees the JUMP! Swim Schools Operations nationally.
https://www.belgraviahealth.com.au/
Understanding Franchise advisory councils
Typically, Franchise Advisory Councils function as collaborative entities, fostering open communication channels between franchisees and the franchisor. Here’s a breakdown of their operational dynamics:
1. Representation and selection: Members of the FAC are usually elected or appointed from among the franchisee community, aiming to achieve diverse representation across different regions, business sizes, and tenure within the franchise system. Term of service is usually around two years at which point a new council must be elected.
2. Regular meetings: FACs convene regularly, either virtually or in person, to discuss pertinent issues, share insights, and deliberate on strategic initiatives. These meetings often follow structured agendas but allow for organic discussions to address emerging concerns or opportunities. Franchisor representatives regularly join these meetings too.
3. Feedback mechanisms: FACs serve as feedback mechanisms, offering firsthand insights into the operational challenges, market trends and customer preferences encountered at the franchisee level. This feedback loop informs franchisor decision-making processes related to marketing strategies, product development, operational enhancements and more. The FAC will often prepare a report or
other written feedback and periodically franchisor representatives join FAC meetings to engage in direct discussions.
4. Strategic collaboration: Beyond providing feedback, FACs collaborate with the franchisor to develop innovative solutions and forward-planning too, helping to refine business processes and drive continuous improvement. By leveraging the collective wisdom of franchisees, FACs help steer the brand towards sustainable growth and competitive advantage.
keys to success: nurturing an effective Franchise advisory council
While establishing a Franchise Advisory Council is a proactive step towards enhancing franchise performance, maximising its efficacy requires deliberate effort and strategic leadership. Here are some essential strategies for running a successful FAC:
1. Clear objectives and expectations: Define the purpose, scope, and expectations of the FAC clearly from the outset. Establish measurable goals and key performance indicators to evaluate the council’s effectiveness in driving business outcomes.
2. Transparent communication: Foster a culture of open communication and transparency within the FAC. Encourage members to express their perspectives candidly while ensuring respectful dialogue and constructive feedback exchange.
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have your say: Heath Graham, National Operations Manager, Belgravia Health & Fitness
“ As a cornerstone of many reputable franchise groups, FACs play a pivotal role in steering brands towards relevance and excellence in an ever-evolving market landscape.”
3. Engagement and participation: Actively involve FAC members in decision-making processes and strategic discussions. Leverage their expertise and frontline insights to inform critical business decisions and shape the future direction of the franchise.
4. Continual evaluation and adaptation: Regularly assess the FAC’s performance and relevance in addressing evolving business challenges and opportunities. Solicit feedback from both franchisees and corporate leadership to identify areas for improvement and refine the council’s structure and operations accordingly.
5. Commitment to action: Translate insights and recommendations generated by the FAC into actionable initiatives and tangible outcomes. Demonstrate a commitment to addressing franchisee concerns and leveraging their input to drive meaningful change within the organization.
6. Recognition and appreciation: Acknowledge the invaluable contributions of FAC members and demonstrate appreciation for their dedication and commitment to the franchise system. Celebrate successes, milestones, and collaborative achievements to foster a sense of camaraderie and shared purpose. v
real Insights from a franchisee
James
My journey as a franchisee within the JUMP! Swim School’s Franchise Advisory Council (FAC) has been incredibly rewarding. I didn’t know what the FAC was before I purchased my franchise — it was something I learned about once in the JUMP! network. I put my hand up to be part of the FAC because I had been a franchisee for several years and had helped numerous franchisees with advice in the past. Being a franchisee working in my own business I knew everything back to front and new I could use my knowledge to help discuss topics and provide feedback. I wanted to ensure that the elements that make JUMP! great are maintained and grown.
Serving as a point of contact for franchisees in two states, I was able to provide support and raise questions on their behalf, despite the demands of running my own swim school.
The experience of being on the FAC was enriching and I gained a better understanding of how the franchise NEEDS to operate to ensure success and longevity for all. Having representatives from each state made it a great group to share and discuss ideas, considering that some states have to do things differently. The bi-monthly catch-ups covered various topics—from brand performance to marketing strategies to operational updates. We were able to influence significant decisions, such as
providing feedback on proposed changes and negotiating better rates for essential services. FACs facilitate communication and collaboration between franchisees and the franchisor by being a point of contact for all franchisees and bringing ideas and discussions to meetings.
From my experience, a well-functioning and effective FAC is characterised by a happy and positive group that can come together to bring fun and great ideas to the table. It’s a group that listens to all aspects but knows when it’s time to make clear decisions and move forward. Working to good, clear, achievable timelines and sharing responsibilities ensures smooth operations. Ultimately, a successful FAC leaves the franchise in a better state than when they joined—a goal we consistently strive to achieve within the national JUMP! Swim Schools networ k.
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Bradley, Owner of JUMP! Swim Schools Pakenham & Lakeside Pakenham
A Business CoAC h’s Pl Ay Book to thrive in t odAy’s M Arket
The world of franchising is constantly evolving and changing every day, therefore, as a business coach, I play a pivotal role in guiding my clients toward thriving amidst all these changes.
Navigating through these changes reminds me of what leading entrepreneur and author Tony Robbins said, “Success today requires the agility and drive to constantly rethink, reinvigorate, react positively to change, and navigate through the complexities of evolving business trends.”
Below are 6 key strategies from my coaching playbook, to not only help you deal with change, but ensure your business thrives in today’s market.
1proactive Mindset
Your cornerstone for success is having a proactive mindset. I constantly help my
clients build a proactive mindset that ensures they anticipate shifts and challenges, actively seek information, stay updated on industry developments, and inspire them to think of change as an opportunity.
Having a proactive mindset entails a forwardthinking approach for your franchise that makes you ready to pivot when necessary. It often involves analysing the business landscape for what is to come and strategising how you can navigate and adapt to the changes. Being proactive also means that you are consistently seeking to improve and evolve.
2continuous Learning and skills development
Much like being proactive, another key element that I tell clients is to continuously seek to learn and improve themselves. With
technological advancements transforming the franchise landscape and affecting consumer behaviours and the economy, it’s no longer enough to simply survive. I encourage all franchise business leaders to not only transform themselves, but to create an environment where their teams prioritise upskilling and learning new things.
Highly skilled and trained staff should be the main objective for a franchise, because it’s your staff who are in constant contact with customers, delivering the standards you have set.
3Maximise technology
From streamlining operations to marketing, incorporating technology into your franchise is a necessity. I regularly advise my clients to evaluate activities, which then leads to decisions around elimination, delegation, or automation.
48 BUsiness FR an CH ise maga Z ine
e XP ert advice: Tony Meredith | Director and Head Coach | Tony Meredith Coaching
These three actions increase productivity and are commonly done much more efficiently through the help of technology and tools.
Nowadays, artificial intelligence (AI) has become the go-to assistant for franchise businesses and their teams, because of its quick and easy data-driven decision-making feature that makes it a strategic asset to thrive in today’s market.
Naturally, there’ll be those reading this article reluctant to embrace technology, and wishing that things went back to the way they were. The fact is, embracing technological advancement guides and allows you to streamline operations, enhance business productivity, and get ahead of your competition.
4strategic partnerships and connections
Have you heard the saying, “Your network is your net worth?” This saying definitely applies to the world of franchising. The power of partnerships and collaborations is an essential element of running a successful franchise business. Whether it be with the franchisor, other franchisees, suppliers, consultants, and customers, I encourage my clients to build strategic partnerships and maintain a strong network.
Your network has the potential to make or break your business. The connections and alliances you make with complementary businesses could provide access to new markets, prospective customers, and resources, in addition to fostering a collaborative community that can navigate through today’s challenges by leveraging each other’s strengths.
5customer- centricity
The preference of your customers shapes the market trends, therefore the customer must be central to the decisions within your franchise. Connecting to your customers and providing customer service is one thing, but I work with my clients to focus on ‘delighting the customer’. Delighting a customer is about going above and beyond customer satisfaction, considering all elements of the interaction, implementing at an extremely high level, and, ultimately, creating memorable moments. Don’t just provide customer service, as every business does that. Instead, be the franchise that will be remembered for the way you make your customers feel.
To improve the connection with your customers, implement a customer-centric approach where you’re constantly touching base with your customers. This may involve
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
“ It’s advantageous to prepare the best you can for the constant shift in today’s market, as being proactive to risk management and contingency planning will never go out of trend.”
regular feedback requests, leveraging your CRM to communicate, or doing market research. It is all about making sure you are delivering outstanding value, as this builds trust, and trust leads to gaining customer loyalty. When you align your strategies to the changing demands and expectations of customers, your franchise will always thrive, no matter the time.
6risk Management and contingency planning
Lastly, being over prepared will always be efficient. It’s advantageous to prepare the best you can for the constant shift in today’s market, as being proactive to risk management and contingency planning will never go out of trend. Sadly, I’ve seen the negative consequences of being complacent in business, therefore I work with my clients to recognise, investigate, strategise and monitor:
• Recognise potential challenges and threats.
• Investigate is your key to knowing why you have the problem, what is the solution and how you can work through it.
• Strategise on how you’ll address and manage risks.
• Monitor and assess emerging risks and adapt the relevant strategies.
In summary, none of us have a crystal ball that can tell the future, hence we can never accurately predict what the market will do. Trends are forever changing, technology is constantly evolving, and the economy can make sudden shifts. In this article I have shared 6 key strategies that every franchise owner can implement immediately and start to wrestle back control amongst the changes. These strategies work for any industry, and, when implemented effectively, will guarantee the future success of your franchise. v
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f
riction
at the end may be the beginning of a dispute
It is not unusual that one of the most difficult times in the ‘lifecycle’ of a business relationship between the franchisor and franchisee is at the end of the term of the franchise whether or not there is an option to renew and whether or not the end of the term is by expiry of the franchise on the end date or by termination by one party for breach of the franchise agreement.
Even if there is no option to renew or the franchisor disputes the franchisee’s exercise of the option because of breaches of the franchise agreement, a franchisee may find it difficult to understand or accept that the franchisee’s right to operate the franchise business is at an end.
Emotionally the franchisee may feel that even if the franchise term has ended that it is the franchisee who owns the business and that the franchisee’s customers and the franchisee’s trained and skillful staff are assets of the franchisee to be used in the continuation of the business.
“
The resolution of end of term disputes may be complicated if, during the franchise term, the franchisee has made a substantial capital expenditure in order to operate or continue to operate the franchise business.
Even if the parties accept that there is a difference between the specific business operated by the franchisee and the franchisor’s franchise system, brand and intellectual property, there may be other terms of the franchise agreement that make problematic any intention by the franchisee to continue to operate the business after the expiry of the franchise term independently of the franchisor’s franchise system, intellectual property and brand-name.
Our experience as franchise dispute lawyers has shown that many franchise disputes that are resolved by mediation conducted under the Franchising Code of Conduct (Code) are on terms that include the franchisor allowing the franchisee to de-brand the franchise business and be permitted to operate the business as an independent business outside the franchise system. Such a resolution of the franchise dispute in this manner may involve the payment of compensation by one party to the other party depending on the nature of the dispute.
”
This outcome when it is achieved often involves the franchisor giving up certain rights such as a right to enforce restraints of trade and rights to the business’ customer list. Franchisors are not always willing to permit this post termination arrangement without the franchisee paying compensation to the franchisor.
The outcome in our experience is more likely to occur when the business is marginally profitable but viable once franchise fees are removed as a cost of operating the business, but not so profitable that the franchisor has an incentive to take over and operate the business or sell it to a prospective new franchisee.
The resolution of end of term disputes may be complicated if, during the franchise term, the franchisee has made a substantial capital expenditure in order to operate or continue to operate the franchise business.
The fact that the franchisee has made substantial capital expenditure during the
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e XP ert advice: Bill Morgan | Morgan Mac Lawyers
term of the franchise can be a substantial point of friction on the termination of the franchise agreement, especially if:
1. The franchise agreement gives the franchisor a right to acquire the franchisee’s fit out, or equipment purchased by the franchisee at considerable costs during the term of the franchise; and
2. The franchisor intends to operate the franchise business or to sell it to prospective new franchisees.
This point of friction has led, in our experience, to several serious disputes. It is likely to continue to be a source of disputes in the future.
The Code anticipates the potential problems including financial stress caused by franchisors making unreasonable demands for large scale expenditure by franchisees on point-of-sale systems, fitout, signage, equipment upgrades, refurbishments not only at the commencement but during the term of a franchise agreement.
The Code prohibits a franchisor from requiring a franchisee from undertaking significant capital expenditure not disclosed to the franchisee before a franchise agreement is signed or extended but there are important exclusions which means that franchisees may ultimately need to meet significant capital expenditure items.
If a franchisee has been required to make Code compliant significant capital expenditure then it is likely to be a source of friction if there is a dispute in respect of end of franchise term arrangements about the franchise business.
recent case
The decision in Zhang & Liu Investment Pty Ltd v Nando’s Australia Pty Ltd [2023] VSC 199 is an example of a dispute between franchisor and franchisee on the expiry of a franchise agreement in which the franchisor sought to acquire equipment purchased by the franchisee during the term of the franchise. This case was an appeal from a summary judgment decision against the franchisee.
the Facts
The facts of the case were as follows:
1. The franchisor (Nando) and franchisee (Zhang) entered into a franchise agreement in 2011;
2. The franchise term was 5 years and was renewed once in 2016 for a further term of 5 years;
3. Nando did not wish to renew the franchise agreement again when it expired on 6
Bill
Morgan Mac Lawyers
T: (07) 3221 2221 E: info@morganmac.com.au www.morganmac.com.au
May 2021, and instead wish to exercise a contractual right under clause 18 of the franchise agreement to operate the restaurant business and acquire certain fixtures, fittings and equipment (Assets) of the franchisee at a price to be agreed by the parties or at fair market value to be determined by a valuer appointed by Nando;
4. Nando offered Zhang $50,000.00 plus GST for the Assets;
5. Nando proposed three independent valuers to Zhang, and when Zhang failed to respond, Nando appointed one of those valuers to value the Assets;
6. The Assets were valued at $134,610.00;
7. Nando’s took possession of the business in May 2021 on expiry of the franchise term.
Issues
There was a primary issue between the parties as to whether the obligation in clause 18 of the franchise agreement on which the franchisor relied to acquire Zhang’s business assets applied only if the franchisor terminated the franchise agreement for breach or also applied to expiry of the term
“ The case reinforces the importance of careful drafting and the consistent use of terms in franchise agreements to avoid ambiguity, which may be a source of expensive legal disputes.”
of the franchise agreement if not renewed. This was an issue of interpretation about the meaning of an ambiguous clause in the franchise agreement.
There was a further issue about whether the valuation should have attributed any value to alleged capital improvements undertaken by the franchisee at the direction of the franchisor. Zhang alleged that the value of the Assets was $372,035.00. Success on this issue for Zhang was contingent on Zhang succeeding on the primary issue.
court’s decision
The Court in dealing with the primary issue considered several clauses in the franchise agreement which used either or both of the words ‘expire’ and ‘termination’ or their derivatives and which although they overlapped were not synonymous.
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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.
“
The last thing parties to a franchise agreement need is for the end of the franchise to be the beginning of a long costly legal dispute.
The court noted there was ambiguity in clause 18 due to the clause not using the word expiry or expiration but found that ‘termination’ in clause 18 meant termination by actions of a party (e.g., for breach) or by effluxion of time.
Specifically, the Court found the purpose and object behind clause 18 was to ensure a mechanism at the conclusion of the franchise agreement for Nando to continue to exploit the benefit of the franchise business that was then operating after the incumbent franchisee has ceased operating the business and to acquire the Assets at a price to be agreed or at market value to be determined by an independent valuer to enable the business to be operated by Nando.
Despite finding against Zhang and indicating it would have otherwise dismissed the Appeal in the ordinary course, the court did not dismiss the Appeal as the summary judgment part of the orders made by the Associate Judge may have worked an injustice to Zhang by preventing him from bringing a claim for recovery of the amount of the valuation payable to Zhang pursuant to clause 18, or to challenge the valuer’s expert valuation.
In effect the Court’s orders permitted Zhang to amend the statement of claim to seek to recover the amount of $134,610.00 pursuant to the clause 18 valuation but its claim to recover $372,035.00 could not be maintained.
”
Although this case was a dispute about what Nando should have paid Zhang for taking back and operating the franchise business the subject matter of similar disputes is often whether the franchisee should keep the business as an independent business outside the franchise terms.
take aways
The case shows that friction at the point at which a franchise agreement expires by effluxion of time or is terminated by action of one of the parties can lead to a dispute and the commencement of costly legal proceedings.
The lesson for franchisees to draw from this case is the importance of making sure that the due diligence done before signing the franchise agreement covers any foreseeable significant capital expenditure during the term of the franchise agreement.
Compensation for capital expenses may be restricted or prevented by the terms of a franchise agreement.
It is also important that franchisees obtain legal advice that covers all risks of obligations under the franchise agreement including those obligations that arise at the end of franchise agreement, including whether the franchisor has the right to step in and continue to operate the franchise business and acquire the franchisee’s business assets used in the operation of the franchised business.
There is also a lesson for franchise lawyers from this case.
The case reinforces the importance of careful drafting and the consistent use of terms in franchise agreements to avoid ambiguity, which may be a source of expensive legal disputes. There is really no excuse for a lack of precision in drafting legal agreements.
Specifically, when franchise agreements provide a regime for what happens to the franchise business after termination or expiry of the franchise agreement, it is important that terms such as terminate or expire, or their derivatives, are used in a careful and consistent manner.
The last thing parties to a franchise agreement need is for the end of the franchise to be the beginning of a long costly legal dispute. v
52 BUsiness FR an CH ise maga Z ine e XP ert advice: Bill Morgan | Morgan Mac Lawyers
BUsiness FR an CH ise maga Z ine 53 RENT THE ROO The Rental Specialists renttheroo.com.au Rent The Roo Pty Ltd Australian Credit Licence 387405. Are you interested in running your own business without the stress of working out all the details? Why not become a Franchisee? We have numerous territories for Sale across Australia! Excellent for the last 11 years, fantastic service in office and delivery! Customer - Mary Boney “ ” For more information contact the Franchisor franchising@renttheroo.com Est. 1976
people are the life blood of every f ranchise b usiness
In the dynamic world of franchising, where systems and processes often take centre stage, it’s easy to overlook the crucial element that truly drives success: people.
Indeed, in the grand scheme of things, people are the lifeblood of every business. Whether you’re a franchisor steering the ship or a franchisee at the helm, prioritising the well-being and performance of your team is paramount. Let’s delve into the key
considerations for both franchisors and franchisees to ensure their people are not just present, but thriving.
Leadership
Effective leadership sets the tone for the entire organisation. Franchisors must lead by example, demonstrating a commitment to the values and culture they want to see throughout the organisation. This involves providing clear direction, fostering open communication, and empowering franchisees to lead their teams with confidence.
Franchisees, in turn, must embody leadership qualities within their own units. By inspiring and motivating their employees, they create an environment where everyone feels valued and driven to excel.
expectations and trust
Clear expectations are the cornerstone of a productive work environment. Franchisors should establish transparent guidelines and performance metrics, ensuring that franchisees and their teams understand what is expected of them. Equally important is trust—franchisees must have faith in their employees’ abilities and empower them to take ownership of their roles.
have your say: Jenny Boymal | Partnerships Manager | The Proven Group
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Wellbeing
The wellbeing of employees should never be overlooked. Franchisors and franchisees alike should prioritise initiatives that promote physical, mental, and emotional health. This may include offering wellness programs, flexible work arrangements, and access to resources for managing stress and maintaining work-life balance.
culture and purpose
A strong organisational culture is the glue that binds a franchise together. Franchisors should cultivate a culture that fosters collaboration, innovation, and a shared sense of purpose. By instilling pride in the brand and its mission, they can inspire loyalty and dedication among franchisees and their teams.
Franchisees play a pivotal role in upholding and reinforcing this culture within their units. By embodying the brand’s values and vision, they create a sense of belonging and purpose that resonates with employees and customers alike.
values
Values are more than just words on a page— they are the guiding principles that shape behaviour and decision-making. Franchisors should ensure that their values align with those of their franchisees, creating a cohesive framework for operating the business. By upholding these shared values, they can
build trust and integrity within the franchise network.
Franchisees, in turn, must embody these values in their interactions with employees, customers, and the community at large. By leading with integrity and ethical conduct, they set the standard for behaviour within their units.
training and support
Investing in employee development is an investment in the future success of the franchise. Franchisors should provide comprehensive training programs that equip franchisees and their teams with the knowledge and skills they need to excel. Ongoing support is equally crucial, whether through mentorship programs, regular checkins, or access to resources and expertise.
Franchisees must also prioritise training and development within their own units, recognising that a well-trained team is better equipped to deliver exceptional service and drive business growth.
While systems and processes are essential for the smooth operation of a franchise business, it is ultimately the people who breathe life into the organisation. By prioritising leadership, trust, wellbeing, culture, purpose, values, training, and support, franchisors and franchisees can create an environment where their people feel valued, empowered, and motivated to perform at their best. After all, when the lifeblood of a business is nurtured, success naturally follows. v
Jenny boyMal
Jenny is the Partnerships Manager for The Proven Group, a full service People and Culture Consultancy. She has a passion for franchising, working with a diverse range of franchises to support both the Franchisor and Franchisee with their employment relations, HR, Training and Wellbeing needs. The Proven Group works to support franchisees with their HR challenges so that they can grow their business.
Feel free to order your own copy of The Proven Group’s book – “Less Headaches, Happier Team, More Success!” for Franchise Owners. https://theprovengroup.com.au/ franchisebook/
BUsiness FR an CH ise maga Z ine 55
s tay one step ahead this f ringe b enefits tax year
Peta lonergan is acting Assistant Commissioner for Superannuation and Employer obligations in the ATO. An experienced tax professional with over 20 years’ experience, Peta started out as a tax accountant before joining the ATO and received her CPA in 2002. Peta has extensive experience across a number of diverse roles in the ATO. Starting out as a frontline business auditor and tax technical specialist, she then progressed onto strategic programs. Peta has a passion for identifying opportunities to challenge the status quo and create innovative team environments.
April 1 is the start of a brand new year for fringe benefits tax (FBT).
To kick things off, I’m sharing my top tips to help get you sorted for the year ahead.
tIp #1
Don’t forget the due date! The 2024 FBT year ended 31 March. Remember to lodge your 2024 FBT return and pay any FBT if you provided certain benefits to your staff in addition to salary and wages. The due date for self-preparers is 21 May, or if your tax professional lodges electronically on your behalf, you have until 25 June.
tIp #2
New year, new changes!
There are two key changes to be aware of for FBT: record keeping and help to calculate your electric vehicle (EV) home charging expenses.
record keeping
As an employer, you know keeping good records for your FBT reporting purposes is so important. Previously, these records had to be kept in an approved form such as travel diaries, employee declarations and logbooks.
From 1 April, you now have the choice to use existing records instead of travel diaries and declarations, but only for certain fringe benefits. This alternative record keeping option allows you to use your corporate records. For example, you can rely on a detailed work calendar for your record keeping instead of using a travel diary to record an employee’s travel movements.
Check out the ATO website to see if you’re
eligible to use this method. This will depend on the type of fringe benefits you provide to your staff.
If you’re not eligible for alternative record keeping, just keep on using the current approved form or record.
Remember, these options apply for the new FBT year and onwards, so make sure you have all the alternative records in time to lodge your FBT return in 2025.
Find more information at ato.gov.au/FBTrecordkeeping
electric vehicle home charging rate
The second key change is regarding the EV home charging rate, if you provide electric vehicles to staff. Calculating the electricity costs incurred by employees charging these vehicles at home can be tricky, so we’ve issued guidance to help make it simpler to calculate
“ As an employer, you know keeping good records for your FBT reporting purposes is so important.”
these expenses for FBT and income tax purposes.
The EV home charging rate is 4.20 cents per kilometre and can be used for zero emissions cars only. Plug-in hybrid models are excluded. Employers, you can use this rate back to 1 April 2022 for FBT reporting purposes.
Your employees can also use this rate back to 1 July 2022 for income tax purposes, when using the logbook method. Keep in mind that to rely on this guideline, employees need to have incurred an electricity expense when charging the EV at home.
You can still choose to calculate expenses
56 BUsiness FR an CH ise maga Z ine e XP ert advice: Peta Lonergan | Acting Assistant Commissioner for Superannuation and Employer Obligations | ATO
using actual electricity costs. You need to keep relevant records to support either of these calculation methods.
For more information, visit ato.gov.au/EVexemption
tIp #3
Here’s 4 easy steps to help you get your FBT reporting right the first time.
1. Identify the types of fringe benefits you provide.
2. Determine the taxable value of each fringe benefit.
3. Lodge an FBT return and pay the FBT you owe by 21 May (for self-preparers). If your tax professional lodges electronically on your behalf, you have until 25 June.
4. Keep good records that support your calculations and FBT position.
You can lodge your FBT return:
• electronically using Standard Business Reporting (SBR) enabled software
• through your tax agent, or
• by posting a paper FBT return to the ATO.
If you don’t have an FBT liability for the year and you’re registered for FBT, send the ATO a completed FBT non-lodgment advice form.
If this is your first time lodging through a
tax professional, make sure you contact them before 21 May to be added to their FBT client list. This ensures you’re eligible for the June lodgment and payment date.
Check out our great range of information at ato.gov.au/howFBTworks
“ If this is your first time lodging through a tax professional, make sure you contact them before 21 May to be added to their FBT client list.”
My FInaL tIp
We’re here to help.
The ATO understands you may experience difficulties and may not be able to pay on time, which can make it hard to meet your obligations.
Contact us before your due date to discuss your options. If you make a mistake on your FBT return, you can lodge an amended return electronically using SBR enabled software or you can request an amended assessment in writing and send via our online services for business or by post.
For more information visit ato.gov.au/FBT or talk to your trusted tax adviser.
BUsiness FR an CH ise maga Z ine 57
M otto M otto Bites into north
Q ueensl And W ith first ever region Al lo CAtion
North Queensland locals should prepare their taste buds, as Brisbane born and bred fan favourite chooses Townsville as their first ever regional outpost.
With a reputation for blending traditional Japanese with innovation, Motto Motto has already won food lovers' hearts across Brisbane, Sydney, and the Gold Coast. Now, it's time for Townsville foodies to indulge in the extraordinary offerings of Australia’s favourite Japanese diner.
Located in Fairfield Central Shopping Centre, the forthcoming Motto Motto Japanese Kitchen is poised to become a new local favourite. "We are super excited to introduce our unique dining experience to Townsville," shared Matt Fickling, Chief Operating Officer of the Motto Motto Group. "Our new Fairfield Central location will showcase innovative Japanese fare featuring ramen, rice bowls, fried chicken, and more. We love Townsville, and our newest outpost will reflect our commitment to taste, innovation, our passion for Japanese inspiration and always giving our guests ‘more’”.
Owner-operators Leo Canapi & Mario Canapi added, “Partnering with Motto Motto made perfect sense for us. From being our family favourite dining destination to the brand’s supply chain and systems all gave us confidence to open in Townsville to share ‘more more’ with the locals. A big thank you to Matt and the team for your support. We’re so excited to be on this journey, and bring our unique flavours to the Townsville community!”
With the grand opening set for June, anticipation is building for the unveiling of Motto Motto at Fairfield Central. This new dining hotspot eagerly awaits the arrival of passionate food enthusiasts eager to savour authentic Japanese flavours, meticulously prepared and served with unwavering dedication. Get ready, Townsville – an extraordinary experience awaits!
Motto Motto Japanese kItchen
Motto Means More. Motto Motto is a group of made-to-order premium-casual restaurants brought to life by William Liu, the owner of Australia’s most awarded Japanese restaurant, Sono. Featuring a mix of traditional and modern Japanese or Japanese-inspired dishes, Motto Motto is unique in blending innovation and tradition together to bring fine dining ingredients and quality to the world of fast, casual dining.
More than a name, ‘more more’ is the philosophy behind everything Motto Motto does. Selecting premium Australian ingredients, more chef-style precision, more incredible service and more value.
Motto Motto is committed to making sure every guest gets ‘more’ when dining at one of their restaurants.
For further enquiries, please contact Danni Dai at: +61 433 680 258 franchise@mottomotto.com.au www.mottomottofranchise.com.au @mottomotto_japanese
motto motto restaurants townsville
• (NEW) Fairfield Central brisbane
• Brisbane Domestic Airport
• Westfield Carindale
• Westfield Chermside
• Gasworks Plaza
• Indooroopilly Shopping Centre
• Westfield Mt Gravatt
• eat South Bank gold coast
• Pacific Fair Shopping Centre
• Robina Town Centre sydney
• Broadway Sydney
• Castle Towers Shopping Centre
• Macquarie Centre
• Marrickville Metro
58 BUsiness FR an CH ise maga Z ine
sna P shot: Motto Motto Japanese Kitchen
BUsiness FR an CH ise maga Z ine 59 To subscribe visit: www.businessfranchiseaustralia.com.au Franchise AUSTRALIA A nd new ze ALA nd BUSI ne SS SubScribe To Business Franchise Australia and New Zealand’s newsletter and receive all the latest franchising news delivered straight to your inbox! Want to stay on top of the latest neWs and What’s happening at the forefront of franchising?
e conomic growth is barely limping along,
businesses
encouraged to seek help and support
The latest report card on the economy will be no surprise to small business owners. Economic growth is barely limping along.
The combination of sluggish growth, persistently poor productivity, tight labour markets, supply chain challenges, abovetarget inflation impacting on higher input costs and customer demand, and 13 interest rate rises are taking their toll on small and family businesses.
Over the past year, there’s been a 20 per cent increase in queries from small businesses struggling to manage their debts.
Businesses are also becoming increasingly worried about other business they do business with – who might owe them money or worse be on the verge of insolvency.
Requests for help from small businesses concerned that they are owed money by businesses who are insolvent have doubled compared to last quarter. Three-quarters of these were from small businesses in the construction industry.
Corporate insolvencies are at their highest level in nearly a decade and reached record highs throughout the last year in the construction sector. In recent months we’ve seen some high profile and well-known construction firms call in the liquidators.
It is often not realised that there are more small businesses in the construction sector than any other industry, so it’s a terrible truth that when construction falters many small businesses can collapse.
We are also seeing rising insolvencies in industries reliant on discretionary spending
such as accommodation and food services. There is free financial, business know-how and mental health help available and it is important that small business owners take advantage of this before it’s too late.
Being able to speak to someone who understands the pressure of running a small business makes a big difference.
Data released by my office shows that 43 per cent of small businesses didn’t make a profit in the last full year of reporting. And some three-quarters of self-employed small business owners are earning less than the average total weekly, full-time earnings.
I can’t stress enough the importance for a small business to check the credit history of their trade creditors.
Recently there was some controversy about the Tax Office’s move to notify credit agencies about 20,000 small businesses with
But if you’re doing business with someone who owes the ATO a big sum, wouldn’t you want to know? This is a reasonable way of alerting other businesses that if you were to offer trade credit or finance, you might not be paid either. At the very least you should take that into account if you are considering doing business with them and if so, what terms.
Good business pays it taxes, proper employee entitlements and its suppliers in a timely way. Not paying is an unfair advantage over other small businesses who are meeting their obligations. Some businesses think not paying your taxes is a clever cash flow strategy – until
60 BUsiness FR an CH ise maga Z ine
they get hit with the penalty interest rate!
It’s equally important to get an expert or trusted adviser to look at your business finances – a check-up for the health of your business.
The Small Business Debt Hotline operated by Financial Counselling Australia provides financial counselling support, particularly for small business owners who have loans secured against the family home and are uncertain about their future.
For small and family business owners, their identities are interwoven into their business and the stakes are so much higher than just a job.
Many have invested a lifetime - and put their family home on the line - to build up their business, which amplifies the emotional challenges.
Almost 50 per cent of small business loans are secured by personal assets, such as the family home, and 27 per cent of all personal insolvencies are business related.
As is often the case when family businesses face difficult economic conditions, other family members pitch in – all hands-on deck to save the family home.
But this also means the dining table becomes the board table and that can create great stress.
New Access for Small Business Owners is a free service developed by Beyond Blue that offers one-on-one telehealth sessions with specially trained former small business owner ‘coaches’ that work with empathy and knowledge to equip small business owners with straight-forward approaches to managing stress and the feeling of being overwhelmed.
It is common for small business owners to be working long hours, feeling isolated, worrying about cash flow and decision-
making and experiencing market pressures all of which makes them susceptible to financial and mental distress.
You might be feeling overwhelmed by the big responsibility of running your own business and it might not be playing out the way you had planned. The passion, excitement and special talents and offer you aim to delight customers with is a long way from ‘the business of running the business’.
Few get excited about lodging a Business Activity Statement with the Tax Office or delving into the numbers to find the story they are telling you about the need for potentially tough decisions now.
Your ‘numbers’ may point to a bit of a wobble in your business and the need to adjust to improve future prospects to best capitalise on your strengths and financial resources. Or should you be considering a dignified dismount while you still have choices based on the trajectory of financials?
An early chat with your trusted adviser if you have one, or an end of financial year business health check and review, might be something to put in place. The Tax Office has produced some really good learning resources that might be useful in supporting your decision-making. https://smallbusiness. taxsuperandyou.gov.au/
Business know-how and being able to benefit from the wisdom of others can be key to turning an idea into a successful enterprise or turning around a business not firing on all cylinders.
Chances are someone has grappled with the problems you are now facing.
We have resources, tips and tools about mental and financial health available on our website at www.asbfeo.gov.au
Information about the Small Business Debt Helpline is available by calling 1800 413 828 or visit https://sbdh.org.au/
about bruce billson:
Bruce Billson is the Australian Small Business and Family Enterprise Ombudsman.
Bruce Billson commenced his role as Australian Small Business and Family Enterprise Ombudsman (ASBFEO) in March 2021. The Ombudsman is an independent advocate for small and family businesses. Bruce brings three decades of experience, knowledge, commitment and an understanding of the issues facing small business.
Bruce was the Australian Government Cabinet Minister for Small Business from 2013-2015, a founding Director of Judo Bank and has held various board appointments, including the Franchise Council of Australia, Deakin University Business School and Australian Property Institute. He has also owned and operated a number of small businesses, and knows first-hand the joys and challenges this involves.
Information about the New Access for Small Business Owners program is available at: www.beyondblue.org.au/ get-support/newaccess-mental-healthcoaching/newaccess-for-small-businessowners
BUsiness FR an CH ise maga Z ine 61
le Arn fro M s MAll Business le Aders And legends!
Anyone dreaming of starting their own business shouldn’t miss the opportunity to visit the Sydney Franchising & Business Opportunities Expo at ICC Sydney from Saturday 4 until Sunday 5 May.
“Small business is the driver of our economy, and many people find it offers a fantastic lifestyle and steady income,” says Exhibition Manager Fiona Stacey.
“But it’s also crucial to do your research and make sure you choose the best concept for your circumstances. The Expo is independent and gives you the perfect chance to see the options, speak with the experts and have all your questions answered.”
The Sydney Franchising & Business Opportunities Expo will showcase a huge range of business ideas. You will have the opportunity to come face to face with the people behind emerging brands as well as
established businesses, such as Appliance Tagging Services, Aramex, Boost Juice, City Cave Float & Wellness Centre, CouriersPlease, Crust Pizza, Jamaica Blue, Kumon Australia, LōKAHI Wellness, Luxaflex, Minuteman Press International, Ogalo, Pack & Send, Poolwerx, RASHAYS, Signarama, Snooze and Tax Store.
Concepts on offer for the first time in Sydney include Beany, Beare Flooring, Driving Miss Daisy, Drizzld, Little Boomers, Maple Bear Australia, and Minor Hotels.
In addition to meeting exhibitors, visitors find great benefits in attending the free seminars held as part of the show. Seminars help visitors to understand the difference between franchises, find a business that matches their skills, and identify success strategies and pitfalls to avoid. The popular seminar program features industry experts, franchisees and franchisors.
At the Sydney show, you can hear from keynote speakers such as Jeremy Hassell from City Cave, Kate Groom from Franchise
d iary dates:
s ydney: 4-5 May 2024
Melbourne: 17-18 August 2024
brisbane and perth: Return 2025
Accounting & Tax, Andrew Walker from Poolwerx and Marcel Lal from InXpress. You can also learn more about franchising in the’ ‘Is franchising right for you’ session. These sessions are designed to educate, inform and motivate. Whatever your reason for becoming your own boss, the best possible start you can give yourself is knowledge.
Furthermore, visitors can attend the Start Your Own Business Workshop, which will return to both shows on Saturday and Sunday, delivering advice on business ownership, how to get started and what you need to know to take the leap.
Gain the freedom and flexibility of being your own boss with an established brand and support network behind you. Visit the show to explore a wide variety of franchises, advisors and business ideas, all under one roof.
See the details above to get your half-price ticket today!
For more information on visiting or exhibiting, please email Fiona at fiona@specialisedevents.com.au or visit
62 BUsiness FR an CH ise maga Z ine P rofile: Franchising Expo Register to visit the
for half price at www.franchisingexpo.com.au by using promo code CGB
Franchising & Business Opportunities Expo
www.franchisingexpo.com.au.
BUsiness FR an CH ise maga Z ine 63 Be your own
• 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 ENDORSED BY Get your half price ticket online and save $10 using code CGB at franchisingexpo.com.au
Boss!
BEHIND t HE headlines
and potential franchisors and franchisees, and conducts regular education courses for franchisors in Australia and overseas. He has been awarded for his franchise achievements, and publishes Franchise News, Australia’s only fortnightly electronic news bulletin on franchising issues.
www.franchiseadvice.com.au
godfreys to close after 93 years
Vacuum and cleaning retailer Godfreys will close its doors forever on May 31 after administrators declared that no viable offers had been received for the business, which the owners placed into voluntary administration on January 30 this year, according to a media report.
Administrators had planned to close 54 stores and shed nearly a third of the company’s 600 staff to right-size the business, however all of the 169 stores that were operating in January will be closed by May 31 as the chain trades in the meantime to sell down existing stock.
Most of the brand’s outlets were companyowned, however 28 franchisees also face closure once the brand is wound up and its central ordering and supply functions cease. Administrators have informed franchisees they can trade until March 31 only to sell existing stock or can return stock for credit against amounts they may owe Godfreys. Despite receiving 55 expressions of interest and six indicative offers during the sale process, none were sufficient to secure the future of the business.
Godfreys was founded in 1931by Godfrey Cohen and business partner John Johnston at a time when vacuums were typically sold door-to-door, and became one of the largest retailers of vacuums and specialist floor cleaning products in Australia, and later became famous for its singular television ads featuring long-term CEO John Hardy.
The brand peaked at 220 franchised and company-owned stores at its peak. In 2006 following the death of Godfrey Cohen, it was sold for $350 million to a private equity consortium and listed on the Australian Securities Exchange in 2014 but delisted and returned to private ownership in 2018 when co-founder John Johnston, then aged nearly 100, bought back the business.
auto franchisor fined $1.5m for contempt of court
Automotive repair franchise Ultra Tune has been fined a record $1.5 million for contempt of court after failing to comply with Federal Court orders issued in 2019, according to an Australian Competition and Consumer Commission (ACCC) statement.
In 2019 Ultra Tune was fined $2.6 million in the Federal Court for breaching both the Franchising Code of Conduct and the Australian Consumer Law (ACL). ACL breaches related to prospective franchisees receiving false or misleading representations, and Franchising Code breaches related to Ultra Tune’s failure to act in good faith including failing to prepare and supply marketing fund statements. The company was also found to have attempted to mislead the Court by claiming it had sent disclosure documents to prospective franchisees when it had not.
Ultra Tune appealed the 2019 ruling and while the fine was reduced to $2.1 million,
the company was still under orders to implement a compliance program to ensure no further breaches of the Franchising Code or the ACL, to provide quarterly reports on the program’s effectiveness, to update its disclosure document on time, and to prepare two marketing fund statements within a specified time period.
Ultra Tune breached these orders by failing to ensure compliance program reporting for three consecutive quarters, failing to update its disclosure document on time, and twice failing to prepare its marketing fund statement on time, including on one occasion when the statement was prepared almost eight months after the deadline.
Franchisor's huge april Fool's prank
The founder of the Jim’s Mowing announced the launch on April 1 of a new political group called Jim’s Party with the goal of contesting and winning the next Victorian state election, according to a media report.
The prank announcement Jim’s CEO and founder Jim Penman, a vocal critic
64 BUsiness FR an CH ise maga Z ine
hot t oP ics
Jason g ehrke 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
of Victoria’s extended lockdowns during the pandemic, included a photo of a campaign bus parked outside Victoria’s state government buildings, a YouTube video featuring a “press conference”, and policy initiatives including that Melbourne’s councils be replaced with a franchise model of Jim’s Local Government.
Previous April 1 announcements by Penman include his 2023 public declaration of intending to secede from the state of Victoria to create his own sovereign micronation.
private takeover for listed real estate brand
Listed Sydney-based real estate group McGrath is in negotiations for a private takeover, according to a media report.
The deal would see McGrath de-listed from the Australian Stock Exchange after listing eight-and-a-half years ago for $2.10 per share, but since then its shares have slumped to as low as 16 cents.
The proposed takeover by a partnership comprising one of the largest residential specialist agencies in Europe, Knight Frank,
and New Zealand-based residential and rural real estate agency Bayleys, is offering existing McGrath shareholders a choice of $0.60 cash per share, an unlisted scrip alternative, or a combination of both.
McGrath consists of company-owned operations, a franchise arm, a mortgage broking business, and project marketing. If the deal proceeds, current CEO and founder, John McGrath, will remain CEO for the division and will reportedly take up the offer of unlisted shares for his majority stake.
World's top 3 largest franchise brands revealed
McDonald’s, Starbucks and Subway have been revealed as the top three largest restaurant chains in the world, according to a media report.
Burger chain McDonald’s holds the number one spot with 41,882 locations around the globe generating nearly USD$120 billion in annual system sales. Meanwhile, Seattlebased coffee giant Starbucks has surpassed international sandwich chain Subway for the first time. Globally Starbucks now operates
38,587 outlets generating USD$28.1 billion in annual systems sales, compared with Subway’s 36,516 outlets generating USD$15.6 billion.
Fast food chain delays public listing
Australian-based Mexican food chain Guzman y Gomez (GYG) has announced its listing on the Australian Stock Exchange (ASX) will be delayed from early 2025 to later in that year after the company reported a loss for the six months to December 31, 2023, according to a media report.
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. In September 2023, GYG re-initiated plans to list in the 2025 financial year or sooner, but market conditions which the company’s CEO described as “not great” appear to have again stalled the process. GYG announced a net loss of $3.9 million for H1 2024, an increase of $2.8 million from the prior corresponding period.
Watch the code review webinar with dr Michael schaper
The Franchise Advisory Centre hosted a free webinar for franchisors with the author of the Franchising Code Review, Dr Michael Schaper on Wednesday, February 28.
During the webinar, Dr Schaper discussed the nature of the review, common themes among submissions received and additional research on the franchise sector to inform the review. He also discussed the reasoning that led to some of the review's 23 recommendations for change, including the recommendation to introduce a licensing system for franchisors.
how to improve franchise resale processes
A two-part interactive online workshop to help franchisors and franchisees improve and accelerate the process of selling existing outlets will be held in May.
The Managing Franchise Resales workshop provides key insights into the resale process, how to better prepare an existing franchise for sale and how to more effectively engage franchisees and manage their expectations during the resale process. The workshop will be held in two parts on May 22 and 23. v
BUsiness FR an CH ise maga Z ine 65
WHY TOWN & COUNTRY PIZZA?
We strive daily on providing back to the local communities we service with a warm and friendly experience that sees people return frequently to our locations. Whether it be the convenience of not having to cook, the large variety, the delivery service or the lively and inviting restaurants, each location has its own identity which allows people nearby to treat it as their own.
Town & Country is the flexible, fun spirited brand that has been able to reinvent itself through a changing market year on year. Innovative products, quality.
THE PROCESS
STEP 1 - ENQUIRE
Submit your enquiry and our team will be in touch within 1-2 business days, get to know each other a little and invite you to apply.
STEP 2 - APPLY
You will have been provided with an application form that will be reviewed and a face to face meeting will be arranged.
STEP 3 - DISCOVER
We will meet to discuss the franchise opportunity in more detail and perhaps even spend the day visiting different stores nearby if needed. Taking into account the application and interview we will then decide if the franchise opportunity is to go to the next step.
With a passionate corporate team alongside enthusiastic and hardworking franchisees Town & Country is now in regional and CBD locations across the country. It is this connection that allows the stores to operate as one large family catering to the people closest to them, their peers, their locals....
With every meal being delivered, plated up or boxed with heart and soul we invite you to Be Part of Our Family…
STEP 4 - FRANCHISE DEVELOPMENT
At this point we will provide you with formal franchisee approval and documentation. Then, on to your store set up whilst you commence and complete your training.
STEP 5 - TRAINING
Our team will place you into a store and commence your 8 week training program. This is broken into 4 operational parts and assumes you have no experience in the industry at all. This ensures our thorough approach to getting you ready and we can work towards opening day.
STEP 6 - GRAND OPENING
At this point you will have completed your training and are ready to launch your franchise. Our operations team will be on site for a further 2 weeks training and to support you in your pursuit of success!
franchising@townandcountrypizza.com.au • Michael Graham - 0410864539 WWW.TOWNANDCOUNTRYPIZZA.COM.AU
your external inhouse legal team specialising in commercial, Franchi se and Intellectual property Law since 1995.
• australian & international Trade m arks
• intellectual property l icence & Transfer agreements
• Creation of Franchise systems
• Review and advice on Franchise d ocumentation
• Business purchases and sales
• Commercial leases
• d istribution & supply agreements
• shareholders agreements
• Business structuring
sr@ippartnership.com.au | (07) 5591 2522 | www.ippartnership.com.au
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.com.au has been looking after the needs of Franchisors and Franchisees for over 20 years. With a genuinely caring and professional team, we work with Franchisors to ensure minimum insurance standards across the business operation whilst ensuing Franchisees are provided with an efficient online quoting tool, super competitive pricing and back up service when a claim occurs.
We have looked after the interests of many franchisees over the years such as Just Cuts, Hairhouse warehouse, Gloria Jeans, Michel’s patisserie, Subway, Donut King, Schnitz and more.
Whether you are in Brisbane or Melbourne, one simple phone call to our office and we can take the worry out of your insurance requirements by ensuring a structured insurance program that provides automation, competitive pricing, quality insurance products that is backed by a supportive insurance service team. Give our Shopinsurance.com.au team a call on 1300 123 300 or drop us an email at insure@steadfasteastern.com.au.
Shopinsurance.com.au is a part of the Steadfast Group Limited, Australia’s largest insurance network.
We have over 25 years’ experience in the franchising sector in:
• Purchase and sale of franchise businesses
• Preparing and advising on franchise documents
• Franchise mediations
• Franchise dispute resolution
• Advising on franchise renewal and exit
• Commercial and retail leasing (07) 3221 2221 info@morganmac.com.au
Level 3/145 Eagle St, Brisbane City QLD 4000 www.morganmac.com.au
BUsiness FR an CH ise maga Z ine 67
P rofessional services listings
franchise listings
actiVate gaMes inc.
email: franchise@playactivate.com Website: playactivate.com
araMeX
level 9, 491 Kent street, sydney, nsW 2000
email: (aU) recruitment.au@aramex.com (nZ) Recruitment.nz@aramex.com
Website: www.aramex.com.au www.aramex.co.nz
bridgestone australia
210 greenhill Road, eastwood, south australia 5065
email: FranchiseeRecruitment@bridgestone.com.au
Website: www.bridgestone.com.au/stores/franchise-recruitment
city caVe
ph: 0401 058 607 email: franchise@citycave.com.au
Website: https://www.citycave.com.au/franchise
coffeetreat
64 liebig street, Warrnambool, ViC ph: 0421 786 008
email: enquiries@coffeetreat.com.au Website: www.coffeetreat.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 cleaning group
d5, 1-13 The gateway Broadmeadows ViC 3047 ph: 131 546
email: admin@jimscleaning.net.au
Website: www.jimscleaning.com.au
JiM’s pool care
pO Box 2171, Wellington point, Qld 4160 ph: 131 546
email: info@jimspoolcare.com.au
Website: www.jimspoolcare.com.au
kuMon education
pO Box 5363, West Chatswood, nsW 1515 ph: 02 9467 2200 email: info-au@kumon.com.au
Website: kumoninstructors.com.au/Franchise
k wik kopy australia pty ltd level 9, 50 Berry street, north sydney nsW 2060 ph: (02) 9967 5500 email: franchise@kwikkopy.com.au Website: www.kwikkopy.com.au/franchise-opportunities
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: 0455 589 448 email: franchising@myhomeclean.com.au
Website: https://myhomefranchise.com.au/business-franchise/
pack & send
Unit 3C mfive Business park, 1 moorebank ave, moorebank, nsW 2170 phone: 0447 711 353 email: francise@packsend.co.nz & franchise@packsend.com.au
Website: www.packsend.co.nz & 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
poolwerX
10 Camford st, milton Qld 4064 ph: +61 7 3173 7300
Free call aU: 1800 245 447 Free call nZ: 0800 543 419
email: Joinourteam@poolwerx.com.au Website: www.poolwerx.com.au/franchising
rent the roo phone: 0431 319 266 email: franchising@renttheroo.com
Website: www.renttheroo.com.au
yre
$160,000
$40,000
including stock
68 BUsiness FR an CH ise maga Z ine franchise nature of business outlets assoc MeMber initial fee Min inVest
e ntertain M ent 30+ - - -
freight & logistics/ courier 28 (aUs) 18 (nZ) Fca available upon application dependant on territory
t
retail and autoMotiVe Mechanical serVices 180 Fca $50,000 $400,000
health & wellness centre 74 Fca - $650,000
takeaway c afé 2 - $1,000
Mobile hose and fittings M anufacturing 400 + across aUs, nZ & pacific Islands Fca subject to location, starting from $20k subject to location, from $40 -60 k plus finance, equipment & stock
hoM e serVices 1,400$20,000 -$30,000
$20,000
M
pool shop & pool serVice 130 Fca $75,000
+ vehicle
obile
$75,000
after school tuition 322 Fca $5000 $5,000 - $30,000
k
– p rint d esign s ignage 90 Franchise council of australia (Fca) & v isual Media a ssociation ( vM a) - -
wik kopy
e arly c hildhood e ducation s er V ices 21 Fca - -
p re M iu M h o M e c leaning s er V ices 23 (Melbourne) - $75,000 $89,000
leading parcel & freight reseller 20+ nZ & 130+ aU FanZ & Fca $70,500 (nZ) ex gst From $190,000
(nZ) ex gst
d og wash 18 Fca $30,000
swiMMing pool & spa serVicing, equipMent & retail sales 161 retail stores Fca & spasa$90,000 + gst + van
furniture and appliance rentals 49$55k (franchising fee) $250k
for the
years
and running costs
first 1-2
69 franchise nature of business outlets assoc MeMber initial fee Min inVest 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 in - hoMe care for seniors, disability support and in hoMe nursing serVices 50+ Fca and accpa $120,000 $200,000 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 M obile tools and equip M ent franchise 180+ Fca / FanZ $43,000 varies soul origin 580 parramatta Rd, petersham, 2049 ph: 0439 611 962 email: Karlas@soulorigin.com.au Website: https://www.soulorigin.com.au/ fresh food and killer coffee 150 Fca $60,00 $320k-$450k + gst 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 children’s perforMing arts education franchise 350 - $20,000 $17,000 town & country piZZa & pasta g65/621-659 Bellarine Hwy, leopold ViC 3224 ph: 0410 864 539 email: franchising@townandcountrypizza.com.au michael@townandcountrypizza.com.au Website: https://www.townandcountrypizza.com.au piZZa & pasta franchise 12 Fca $40,000 $300,000 A-Z listings Are A greAt WAy to ProMote your Business For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to: www.businessfranchiseaustralia.com.au
Packed with information relating to many different sectors of the franchising industry, Business Franchise Australia and New Zealand is a valuable and informative source of guidance. Sub S cribe today! $39.95 6 issues growing in the right locations...strategic network planning stay one step ahead this fringe benefits tax year cover story unlimited growth potential with Jim’s blindcleaning & repairs latest news in franchising $4.95 (AUD), $7.95 (NZ) inc. GST. VOL 18 ISSUE 04 MAY/JUNE 2024 A Business CoACh’s PlAyBook to thrive in todAy’s MArket Scan the QR code to order your 6 issues of Business Franchise Magazine Australia and New Zealand for only $39.95 or got to: https://www.isubscribe.com.au/businessfranchise-magazine-subscription.cfm Franchisors Win Through Franchisee educaTion a neW Financial year checklist latest neWs in Franchising Harnessing tHe Power of LocaL area Marketing: The Key To Franchise success Franchise Due Diligence a Lawyers tiPs on wHat you need to investigate before you buy a francHise cover story Bedshed your search For The perFecT Franchise sTops here laTesT news in francHising special feature healTh, FiTness & BeauTy Franchises maximising franchise success with ai-powered chatbots landmark review the future of franchising in australia the impact of data privacy in franchising cover story celebrate the opening of their 150th store latest news in franchising special feature food and franchising Due Diligence is essential Finance anD your Franchise How do lenders decide wHat i can afford? the key Franchise Documents explaine D cover story Karen Bozic, ceo of craveaBle Bran Ds latest news in franchising special feature Franchises in your price range Franchisingcode oF conduct deemed generally Fit For PurPose how to sParkinnovation and caPture creativity in your Franchise cover story PurPose culture brand why this home care Franchise is exPeriencing such raPid growth latest news in franchising $4.95 (AUD), $7.95 (NZ) inc. GST. VOL 18 ISSUE 03 mar/apr 2024 special feature onFranchises the road
actIvate ga M es Inc.
activate is the world’s first active-gaming experience where players #enterThe g ame. activate offers a unique blend of physical activity and gaming that promotes a healthy lifestyle. e ach activate location provides fun and interactive rooms for players to
ara M ex
put yourself in the driver’s seat of success when you join aramex, a leading global provider of transport, logistics and courier services. in australia and n ew Zealand, more than 1,000 courier franchisees and 46 regional franchisees benefit from the award-winning aramex franchise system that has been honed by more than 40 years of success.
aramex offers courier franchisees the training,
b r I dgestone aUstraLIa
Bridgestone has retained the title of australia’s m ost 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 s elect 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
cIty cave
City Cave, established in 2016, has swiftly expanded to over 70 centres, with several more in development, all set to open their doors in 2024. The brand’s founders, Tim Butters and Jeremy Hassell, ventured into franchising in 2018 after their own profound experiences with float therapy. since then, City Cave Float & Wellness Centre has rapidly evolved into one of australia’s most swiftly growing franchise systems.
Our franchise system centres around a blend of transformative experiences through a combination of float therapy (using sensory deprivation to achieve deep relaxation), infrared saunas (detoxifying the body using heat and light) and massages (relieving tired muscles). This
compete, earn stars and track achievements.
With the global headquarters located in Winnipeg, Canada, activate has grown to 30 locations across Canada, the United states, and soon d ubai in the Fall of 2024!
To join the active gaming movement, visit playactivate.com.
b Us I ness Franch I se aUstra LI a and ne W Z ea L and a-Z listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.
support and technology they need to run their own rewarding franchise business in their local communities. n o prior experience is needed. Find out more and apply to join the network that delivers.
For more information contact:
aUs: recruitment.au@aramex.com
www.aramex.com.au
nZ: Recruitment.nz@aramex.com
www.aramex.co.nz
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. i t 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 s elect family. Couples are strongly encouraged to consider this opportunity to join the proven and highly successful Bridgestone s elect network with a full 10-year Franchise term included.
www.bridgestone.com.au/stores/franchise-recruitment
has created a following of loyal guests who are intent on unplugging, unwinding, and unlocking their health and wellbeing goals.
To become a successful City Cave franchise owner, no prior industry experience is necessary. What we seek are individuals with a fervour for enhancing the health and wellness of their communities and individuals who resonate with our core values.
everything we do is rooted in the principles of a bundance, Collaboration, Balance, and empathy.
email: franchise@citycave.com.au
Website: https://www.citycave.com.au/franchise
For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of australia) and speak to one of our sales e xecutives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz
BUsiness FR an CH ise maga Z ine 71 a -Z franchise directory
co FFeetreat
COFFee TR eaT is a unique Hole in Wall Takeaway Cafe and is owned and operated by the proprietor, Chelsea Hayward. The business commenced trading in January 2016 in Country s easide Warrnambool Victoria.
i t is a family owned business providing it’s customers “a Hole in Wall Coffee e xperience”.
We specialize in the sales of Coffee, i ced Beverages, Toasties, m elts, Cakes & pastries.
at COFFee TR eaT our mission is to deliver an exceptional takeaway coffee experience to our customers, one cup at a time”.
hydraULI nk pty Ltd
at Hydraulink, Business is BOO ming!
Our Hydraulink s ales s ervice 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 • m anufacturing and industrial processing.
The benefits and advantages of the mobile Hydraulink s ales s ervice
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
We make no apology for our aim - to offer quality products combined with an unforgettable service experience to each and every customer who visits our stores in australia and beyond.
Our aim is to become the preferred destination for takeaway coffee lovers worldwide, known for our outstanding quality, exceptional service, and genuine commitment to making a positive impact on coffee communities and the environment.
Fore more info contact Chelsea Hayward at: phone: 0421 786 008
email: enquiries@coffeetreat.com.au
Web: www.coffeetreat.com.au
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
b Us I ness Franch I se aUstra LI a and ne W Z ea L and
a-Z listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.
For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of australia) and speak to one of our sales e xecutives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz
J IM’s cLean I ng g ro U p
Jim’s Cleaning for home and office cleaning, domestic and commercial cleaning. From windows to blinds, from cars to kitchens, from carpets to driveways, from factory floors to office floors – Jim’s Cleaning does it all. Jim’s Cleaning is australia’s leading home and commercial cleaning service with services available in every state and our reputation is top class.
We cater for both home and business owners and
JIM’s poo L care
M ob ILe poo L 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.
provide 6 specialist cleaning divisions to ensure that your home, car or commercial property is clean from top to bottom, inside and out.
Jim’s Cleaning is a national award winning company dedicated to cleaning australian homes and businesses. We pride ourselves on our enthusiasm to perform and complete the best job possible for you.
phone: 131-546
email: admin@jimscleaning.net.au
Website: www.jimscleaning.com.au
a nother 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. i f 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
72 BUsiness FR an CH ise maga Z ine a -Z franchise directory
k UM on edUcatI on
Owning and operating a Kumon franchise is the perfect opportunity for people who would love working with children, their community, and who want to make a difference.
Kumon is the world’s largest after-school education programme with more than 4 million students in over 60 countries. a s a franchisee you will become part of a connected team, with strong local support and a worldwide network of associates all working to develop ‘life skills’ in children through education.
Kumon provides an individualised programme that
kWI k kopy aUstraLIa
p ty Ltd
start your franchising journey with Kwik Kopy, the leading provider of d esign, print, and signage throughout australia.
Kwik Kopy offers a flexible franchise model, where each Centre is fully equipped to create high-quality services on-site. Owning a B2B franchise means operating business hours m onday to Friday so you’ll enjoy a work-life balance, be your own boss and be part of a supportive community committed to success.
MI ndcha M ps
b e part of a brand that is transforming the early education space globally.
Hailed as THe education movement of the 21st Century by n ew York Times & Wall st Journal n o. 1 bestselling author d r Joseph a m ichelli,
m indChamps has over 80 e arly learning and preschool centres across australia, singapore, the philippines, m yanmar, m alaysia, indonesia and the Usa
m indChamps e arly 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 d omains of education, psychology, n euroscience and Theatre, our 3- m ind model of education nurtures children with the skills, flexibility, and Champion m indset to flourish and thrive in a unpredictable future.
MyhoM e
For over 15 years, m yHome has stood alone as the premium home cleaning 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. m yHome 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.
develops students’ self-learning ability through the study of mathematics and english worksheets. students progress at their own pace, developing fundamental reading comprehension and calculation skills for confidence in the classroom and everyday life.
We invite you to attend our next information meeting to learn about our extensive training and support, generous subsidies, low start-up costs, and potential earnings.
Join us to make a difference for children in your local community!
For details and to register, visit https://www.kumoninstructors.com.au/Franchise. Or, contact our recruitment team at: info-au@kumon.com.au.
You’ll also receive all the training you require, so no prior print or design experience is necessary.
a Kwik Kopy franchisee is young at heart with business experience, entrepreneurial flair, and most of all – an absolute passion for customer service. We have both existing and new locations for sale throughout australia. at Kwik Kopy, your business is our purpose.
For more information plese contact peter Fiasco at: phone: (02) 9967 5500
email: franchise@kwikkopy.com.au
Web: www.kwikkopy.com.au/franchise-opportunities
We are also the only early learning organisation to have the world renowned neuroscientist emeritus professor a llan snyder, Fellow of the Royal s ociety and founder of the Centre for the m ind at the University of sydney and the australian n ational University, as our Chancellor and Chair of Research.
a s a multi-award-winning early learning Franchisor, m indChamps is committed to your success. Our extensive list of international awards speaks volumes about the quality of our educational approach and its popularity with australian families. The strength of our brand name is synonymous with solid scientific research, quality early learning strategiesand a caring, child-centred environment.
To discover why owning a m indChamps e arly learning & preschool centre is your dream business, visit: au.mindchamps.org or call 1300 646 324.
m yHome 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 m yHome’s established model.
m yHome are now awarding a limited number of management franchises covering m elbourne’s finest suburbs. i f you aspire to a work life balance with great financial rewards, take the first step by visiting https://myhomefranchise. com.au/business-franchise/.
BUsiness FR an CH ise maga Z ine 73 pack & send paCK & send is n ew Zealand’s and australia’s leading ‘ n o 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 ‘multi-store’, multi-million sales revenue enterprise. What sets us apart You don’t need any freight, logistics, or parcel industry experience with our franchise system. Our comprehensive training program has been designed for you. a ll you need is to be a go-getter who loves providing 5-star service to your customers! Exceptional award-winning customer service Innovation and adaptability Extensive national network (and growing) Every day is different Business-friendly opening hours (5 ½ days) Multiple revenue streams • Comprehensive 4-week Induction Training Program (incl. 1 week at sydney THQ) • In-house Business Sales Training Program Customer’s love us, over 2,000 5-Star reviews! (NZ) Multiple award-winning brand Asset light business model – no need for a fleet of vans or a warehouse Part of the $3 billion+ parcel industry (NZ) 2023 Top 10 AU Franchise system as rated by 10 Thousand Feet Contact us today to learn more about our multi-award winning franchise business model. www.packsend.co.nz & www.packsend.com.au
petbarn M ob ILe dog Wash
Be part of the petbarn m obile d ogwash 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
• LARGE EXCLUSIVE TERRITORY – ALL LEADS COME TO YOU with NO
COs T peR lead Fee
• Lowest franchisee fee in this market
poo LWerx
Join Poolwerx to build your business dream. Benefit from our 30+ years of experience, including comprehensive training, marketing, technology and robust business systems; no prior experience is needed. The pool industry is resilient and in demand, with Poolwerx Australasia sales reaching $170.1 million in FY 2022-2023.
enjoy multiple revenue streams and a scalable business model. Choose from new mobile businesses starting at $90K + GST + van* or acquire an established franchise
• 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!
For more information call s cott m cintosh on 0402 902 620 or visit www.petbarn.com.au/mobiledogwash.
with multiple vans and a retail outlet serving residential and commercial clients. independent retailers can also elevate their business and join the poolwerx family. partner with an award-winning business – poolwerx is australasia’s largest and most trusted pool and spa maintenance network. We put people first!
For more information go to:
www.poolwerx.com.au/franchising or call aU 1800 245 447 or nZ 0800 543 419
*Leasing or financing options are available for an LDV Van G10 from $35K + GST.
b Us I ness Franch I se aUstra LI a and ne W Z ea L and a-Z listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.
For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of australia) and speak to one of our sales e xecutives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz
r ent the roo
We are a 3rd generation family-owned Franchise business established in 1976.
We provide rental agreements on new appliances & furniture for customers for terms of 12 to 36 months.
Our business model has evolved over the years with a strong focus on customer service which is evident in our 800+ google customer reviews!
We have developed strong relations with retail and wholesale suppliers to provide our franchisees with the best value.
r I ght at hoM e
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 49 franchisees in our system covering Queensland, most of sydney and some regional areas of nsW, perth and Kalgoorlie, melbourne, southwest Victoria, aCT 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.
We currently have 55 franchised areas, operating in all states and territories with prime areas available now.
Franchisees run their business as solo operators or with larger teams, remotely or on the ground in the territories they own.
We provide comprehensive training and ongoing support to ensure your success.
if you are looking for a new business with a healthy income and a work/life balance, contact us now!
www.renttheroo.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.
74 BUsiness FR an CH ise maga Z ine a -Z franchise directory
snap - on too L s
snap-on Tools australia & n ew 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.
snap-on Tools continues to grow and perform with a network of over 180 franchisees across australia and n ew Zealand.
so UL or I g I n
s oul 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 fast-food industry and create a space where people could grab food that is not just quick but also fresh, wholesome, and delicious. n ow, with 150 stores across the country, they have become the go-to spot for foodies looking for quality food on the go. a nd guess what? They are just getting started.
s oul Origin has set its sights on further expansion and innovation. Their commitment to providing healthy,
s tagecoach per For MI ng arts
at stagecoach performing a rts 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. stagecoach developed educational Framework which
toWn & co U ntry pIZZ a & pasta
a re you ready to embark on a deliciously rewarding journey? look no further than Town & Country pizza and pasta, the ultimate franchise opportunity for those craving a taste of success in the thriving pizza and pasta industry.
at Town & Country, we’re not just in the business of serving mouth-watering meals—we’re in the business of building communities. For over 25 years, our flexible and fun-spirited brand has been delighting customers and fostering connections in local neighbourhoods across the country.
What sets Town & Country apart? i t’s our dedication to innovation, quality, and customer service that keeps our franchise network thriving year after year. From our diverse menu offerings to our welcoming restaurant environments, each Town & Country location boasts its own unique identity, allowing franchisees to
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. e ach month, we develop specials to give customers a reason to buy immediately. With extensive training and ongoing support, Join the world’s largest tool franchise and drive your own success www.snapontools.com.au
fresh food will continue to inspire changes in the fast-food industry. a s they grow, they bring with them a promise that nutritious food should be accessible to all.
Take the next step and join a Food and Coffee Franchise with s oul Origin!
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.
a s 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. australia.stagecoachfranchise.com
cater to the specific tastes and preferences of their communities. But our success isn’t just about delicious food—it’s about the people behind the pizza. With a passionate corporate team and hardworking franchisees by your side, you’ll never be alone on your journey to franchise success. Our proven business model, comprehensive training programs, and ongoing support ensure that you have all the tools you need to thrive in the competitive pizza and pasta market.
Whether you’re a seasoned entrepreneur or a first-time franchisee, Town & Country offers a recipe for success. Join our family of franchisees and discover the unparalleled opportunities that come with being part of the Town & Country pizza and pasta network.
For more information contact m ichael g raham on ph: 0410 864 539 email: franchising@townandcountrypizza.com.au Website: https://www.townandcountrypizza.com.au
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a-Z listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.
For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of australia) and speak to one of our sales e xecutives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz
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AU Enquiries: packsend.com.au P: +61 447 711 353 If you’re all about delivering 5-star solutions, find out how the PACK & SEND franchise system can bring your business dreams to life. Contact us now! Join PACK & SEND, a globally recognised franchise with a dynamic business model equipped to provide 5-star solutions to the parcel, freight and logistics markets The PACK & SEND network is growing on the back of the BOOMING Freight, Logistics, and Parcel Market. To keep up with the demand, PACK & SEND has BRAND NEW TERRITORIES across AUS & NZ to take full advantage of the growing markets. Build a future Business 51/2 days a week Earn online residual income 24/7 Join an asset-lite, technology driven organisation Service one of the world’s fastest growing markets Global Franchise Awards Asia-Pacific Regional Champion DELIVER THE DIFFERENCE WITH PACK & SEND ACCELERATE YOUR GROWTH with a Future Proof Franchise Business at NZ Enquiries: packsend.co.nz P: +64 9 887 9444 EXPANDING NOW IN New Zealand!