Business Franchise Aus & NZ - Nov/Dec 2015 by CGB Publishing

T h e

m a g a z i n e

AUSTRALIA and NEW ZEALAND VOL 10 ISSUE 01 nov / dec 2015

f o r

f r a n c h i s e e s

AUSTRALIA and NEW ZEALAND

HEALTH, FITNESS & BEAUTY

Franchising hairhouse warehouse: the powerhouse

Secrets

to succeed as a franchisee

LATEST NEWS

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From the

Editor BUSINESS FRANCHISE AUSTRALIA and new zealand

Welcome to our 10th anniversary edition of Business Franchise Australia and New Zealand magazine. Our mission in 2006 was to create a magazine for you, the franchisee, that focussed on highlighting trends and developments within franchising and to provide you with expert advice on a wide range of franchiserelated topics. Fast forward 10 years, and that is still our primary objective although we have of course moved with the times! Still available within newsagencies, we also offer digital copies and readers can also download our App to read â&#x20AC;&#x2DC;on-the-goâ&#x20AC;&#x2122;. Our front cover features Hairhouse Warehouse founders Tony and Joseph Lattouf alongside Emad Nayef. Emad shares his journey from stacking shelves in the very first Hairhouse store to his appointment as

MD in 2012. With international expansion in the pipeline and another 20 stores to be opened within the next 18 months, Hairhouse Warehouse are the powerhouse of hair. Within our Health, Fitness and Beauty feature, starting on page 37, we have a wide assortment of expert advice articles and showcase a few of the current franchise systems working within this industry. Health, fitness and beauty franchises are attractive businesses that are guaranteed to make you feel good! Whether you simply want to join these booming industries for the financial returns or you enjoy a healthy lifestyle and keeping fit, then look no further than franchising to provide you with a multitude of exciting business opportunities. Our expert advice articles include, among others, Bianca Sevastos from Baybridge Lawyers who advises what you need to be aware of within your lease and Jeff Board from JAX Tyres who thinks that the franchise sector needs a stronger Federal role. So enjoy our expert advice articles and have a look at the numerous franchise systems profiled and featured throughout the magazine. Who knows? Maybe one of them will be the perfect fit for you! Enjoy the read! Joanne Tuffy Editor

VOLUME 10 ISSUE 1, november / december 2015 publisher: Colin Bradbury. colin@cgbpublishing.com EDITOR: Joanne Tuffy. editor@cgbpublishing.com.au SALES DIRECTOR: Vikki Bradbury. vikki@cgbpublishing.com SALES & marketing manager: Kathleen Lennox. kathleen@cgbpublishing.com.au PRODUCTION: production@cgbpublishing.com.au ACCOUNTS: Renee Gould. accounts@cgbpublishing.com.au DESIGN: Jejak Graphics (03) 8790 8006 COVER IMAGE: Tony & Joseph Lattouf Emad Nayef Hairhouse warehouse TO SUBSCRIBE: www.businessfranchiseaustralia.com.au or www.isubscribe.com.au CGB PUBLISHING PO BOX 968 MT ELIZA, VICTORIA 3930 TEL: (03) 9787 8077 FAX: (03) 9787 8499 Email: cgb@cgbpublishing.com.au www.businessfranchiseaustralia.com.au

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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.

Business Franchise Australia and New Zealand 3

busi n ess fr anch ise aust r a l i a an d n e w ze a l an d

Contents

Hairhouse Warehouse: The powerhouse

Secrets to Succeed as a Franchisee

Ali Kasa, Egnatium

Feature: Health, Fitness & Beauty Franchising

Cover Story:

On the Cover

november / december 2015

In Every Issue

Profiles

Whatâ&#x20AC;&#x2122;s New!

Announcements from the industry

18 9D Action Cinemas

FANZ News

Franchise Association of New Zealand

Feature News

Feature article: The Feel Good Factor in Franchising

Behind the Headlines

Jason Gehrke, Franchise Advisory Centre

Professional Services Listings

Listings

A-Z Directory

26 MAS Tax Accountants 46 HYPOXI Australia 54 BodyOlogy Franchising 58 Brazilian Butterfly 72 Thexton Armstrong 82 Franchising Expo

Franchisor in Depth 32

Crema Espresso

Snapshots

Just Cutsâ&#x201E;˘

30 V.I.P. Home Services

Fastway Couriers

4 Business Franchise Australia and New Zealand

Expert Advice

also in this issue: 7-Eleven..................................................................77, 98

14 What Should You be Aware of in

the Lease?

Bianca Sevastos, Baybridge Lawyers

Battery World.............................................. 98, OBC Bucking Bull................................................................ 99

22 Managing the Social Media Conversation

Appliance Tagging Services............................ 98

Burger Urge................................................................. 99

Joe Papadatos, Icon Visual Marketing

Cashflow It....................................................................... 2

28 Common Reasons Franchisees Fail

City Farmers Dogwash. ...................................... 99

Clark Rubber. ..................................................31, 100

Labrina Tsekouras, Westpac

44 Secrets of a Successful Franchise Business

Deb Farnworth-Wood, Australian Skin Clinics

Clean Green Strata. .................................... 71, 100 Domino’s Pizza...............................................81, 100 Dream Doors............................................................101

Dr Michael Schaper, ACCC

60 Kick Start your Workplace Relations routine

Lynda McAlary-Smith, Fair Work Ombudsman

64 How to Navigate your Franchise options

and hit the Road to Success

Cameron Cooper, Laser Clinics Australia

Fasta Pasta................................................................101 Fastway Couriers........................................IFC, 101

52 Advertising on a Level Playing Field

FC Business Solutions. ........................................17

Fitness Enhancement Personal Training................................................................. 51, 102 Groutpro...................................................................... 102 Hairhouse Warehouse............................. 63, 102 Jim’s Antennas....................................................... 102

68 Important matters to Consider with

Jim’s Pool Care...................................................... 103

Jump! Swim School........................................... 103

Franchise Territories Mark Sherry, Harmans Lawyers

La Porchetta. .................................................. 25, 103

74 Close the Loop on your FAC

Local Appliance Rentals.................................. 104

Luxaflex Window Fashions............................ 104

Corina Vucic, FC Business Solutions

86 Franchise Sector needs Stronger Federal Role Jeff Board, JAX Tyres

National Franchise Insurance Brokers..... 23 Primal Pantry. .................................................. 67, 104 Redcat Polygon........................................................... 1 Rent with Style. ............................................. 93, 105

Scrooz.......................................................................... 105 Seven Seas Seafood Café............................. 105 ShopInsurance.com.au....................................... 91 Skewerz Kebabz................................................... 105

Smoothie Factory................................................. 106

Have your say

Snooze..............................................................IBC, 106 The Drug Detection Agency................ 89, 106

Anytime Fitness

The Sporting Globe Bar & Grill................... 106

La Porchetta

Thermawood........................................................... 106 Vodafone Australia................................................107 Xpresso Mobile Café...........................................107

what’snew! There’s no better time to be your own boss After a long break the Franchising & Business Opportunities Expo is returning to Perth next May, with organisers reporting huge interest from exhibitors and visitors. “The time is right and the team are very excited about working with exhibitors and the Franchise Council of Australia to make it a professional and relevant event that showcases the opportunities presented by franchising,” says Exhibition Manager Fiona Stacey.

The Perth Franchising & Business Opportunities Expo will be a little different to the established shows running in Sydney, Melbourne and Brisbane. Each exhibitor will be restricted to a simple booth display with a table and brochure rack rather than a full blown stand. Fiona explains, “Running the event as a showcase will allow exhibitors to try out the market without blowing the budget. Visitors will still be able to see all the options, talk to the names behind the brands and attend business seminars. And for the first time we can make it free for visitors to attend.” Around forty companies will be on display. They will include household names as well as brand new systems. Most will be franchises but there will also be general business opportunities, magazines, government agencies and consultants who can help you franchise your own business.

“Of course a lot of this information is available online” says Fiona. “But nothing can replace the value of meeting someone face-toface to discuss your dream business. Visitors can check out all the opportunities and ask the hard questions. At the same time exhibitors can identify their best prospects. It is a really efficient way to bring the right people together.” The Franchising & Business Opportunities Expo will be running at the Perth Convention & Exhibition Centre from 6-7 May 2016. Entry is open to anyone looking to get into business for themselves. For more information visit the show website at www.franchisingexpo.com.au

Donuts, Pizza & Coffee to Tempt India’s Entrepreneurs Australia’s largest multi-brand retail food franchisor and leading wholesale coffee roaster, Retail Food Group Limited (RFG), has entered into an exclusive partnership with Franchise India, Asia’s largest integrated franchise solution company to launch its Brand Systems into India. Franchise India has extensive experience in pairing franchisors with qualified Master Franchise Partners whilst creating a high level of interest from potential local franchisees to achieve successful international expansion for foreign brands. The organisation also runs the world’s leading franchise website.

RFG CEO - Franchise Andre Nell said RFG is targeting significant international growth with plans to open 130 outlets in international markets this financial year. “RFG’s Brand Systems are market leaders and award-winning brands in Australia, each possessing successful business models that have been proven over many years. Our goal is to replicate this success in global markets by working with motivated partners who share our vision,” said Mr Nell. “RFG is looking forward to working with Franchise India and leveraging their extensive reach and intimate knowledge of franchising.”

6 Business Franchise Australia and New Zealand

New board members bring international skillset to the table POOL AND SPA care franchise Poolwerx has appointed two new board members to enhance the strategic skillset of the group to include international finance and marketing expertise. Long serving Poolwerx team member and Chief Financial Officer (CFO) Stephen Harris, and newly appointed Marketing Director and international franchise entrepreneur Troy Hazard will take a seat at the table for both the American and Australian /New Zealand boards. Rod Young, Poolwerx board chairman said the new appointments were confirmed as a part of a long term vision for the company’s overseas expansion. “Both Stephen and Troy provided vital guidance during the due diligence phase of our expansion planning and their knowledge and experience will continue to enhance the strategic vision of the board. Poolwerx has significant further expansion as a key part of our five year plan. The board and shareholders are very pleased they have accepted these appointments as they will add even more substance to the governance or the corporation as we build Poolwerx into a multinational industry leader,” he said. Mr Hazard, based in the USA, has been a long-term consultant to CEO John O’Brien and assisted with the recent American acquisition negotiations prior to joining the business in an official role.

Stephen Harris

Troy Hazard

“The business model John O’Brien has created ensures the company has the right structure and brand qualities to make expansion very accessible for Poolwerx. Part of my role is to help the business reach its goal of becoming a truly global brand,” Mr Hazard said. Mr Harris has been the company’s CFO for the past five years and will lend the board his 20 year experience setting up companies overseas. “Throughout my career I have assisted in setting up a number of companies across Canada, the UK and New Zealand so I have the right finance acumen to assist Poolwerx with its plans now and into the future,” Mr Harris said. Both Mr Harris and Mr Hazard have served on other boards around the world.

Noodle Box acquires Wok in a Box Noodle Box, Australia’s largest noodlebased quick-service restaurant (QSR) franchise, recently announced agreement has been reached to acquire the nation’s 2nd largest noodle based restaurant chain, Wok in a Box. The acquisition will consolidate Noodle Box as one of Australia’s leading franchise networks with over 100 restaurants nationally. Wok in a Box which operates 32 franchise restaurants predominantly, in Western Australia and South Australia, is a “near perfect strategic fit as Noodle Box moves towards becoming a world class franchise restaurant chain,” explained Noodle Box Chief Executive, Ian Martin. “The acquisition is a continuing part of our strategy to expand our brand reach more widely across the country as we continue to provide authentic, high quality and healthy noodle-based meals served by well trained and friendly team members in an inviting and relaxed environment.” Ian believes the noodle-based QSR sector in Australia is ready for consolidation, and

that the Noodle Box business is perfectly placed to capitalise upon the prevalent opportunities. He outlined that the strategy to enhance Noodle Box business’ growth through acquisition has excellent synergistic benefits, without incurring fundamental changes to the Noodle Box streamlined business structure. “We are excited to welcome the existing Wok in a Box franchise partners and their teams to the Noodle Box family and look forward to working with them and our current Noodle Box franchise partners as we continue on our journey to provide profitable growth opportunities for all stakeholders,” said Ian. The Wok in a Box acquisition follows Noodle Box’s international expansion activities after signing a Master Franchise Agreement with the Himmah Foods Company to open 65 restaurants over the next five years in the Middle East Region and the recent signing of an MOU to enter the Indian market. The first three restaurants in the Middle East have already successfully opened with a further two currently under construction.

Business Franchise Australia and New Zealand 7

what’snew! Fountain Gate says Konnichiwa to Rice Workshop The Japanese food sensation that has taken Melbourne by storm has set up its first Westfield Fountain Gate store!

Japanese food is more than sushi and sashimi, Rice Workshop offers you with the ability to try the flavours of Japan’s urban street culture.

Rice Workshop is creating the real taste of Japan in a bowl, every day at Westfield Fountain Gate. Proving that fast, fresh and flavoursome

Rice Workshop is a concept developed by entrepreneur David Loh and his chef, Tomohiro Suzuki. They both found that although Japanese food is available in Australia, people are unable to try edgy and exciting Japanese food that encompasses the pop-tastic and trendy place Japan is known for. After recognising this gap in the market they decided to open the flagship Little Bourke Street store in Melbourne’s CBD 18 months ago. After instant success ten stores have opened around Melbourne (Westfield Fountain Gate, Westfield Geelong, Pacific Werribee, Emporium Melbourne, Chinatown Little Bourke St, Highpoint Shopping Centre, Knox City, Box Hill, Eastland Shopping Centre, and Northland Shopping Centre) and their first interstate store in Westfield Sydney CBD. David Loh says; “We are transporting authentic Japanese culture to Melbourne, mimicking the service style which is ubiquitous at the moment with self-serve base dishes with extras added by the in-house chef. Rice Workshop promises to be a must visit luncheon destination for the epicurious.”

Baskin-Robbins puts the local in Local Area Marketing Baskin-Robbins has launched an innovative new online marketing platform which empowers Franchise Partners to create customised marketing materials at the click of a button.

marketing plans in order to drive store growth and local guest engagement. These plans also compliment the larger national marketing promotional calendar ensuring consistent Brand messaging across all stores.

The Local Store Marketing (LSM) Online portal has been developed to help Franchise Partners with ordering customised marketing collateral. These include Point Of Sale (POS) materials, editable LSM templates, store branding elements, and promotional items for Brand awareness.

“We are continually implementing new initiatives to assist Franchise Partners in this process and providing the tools they can use to ‘surprise and delight’ their guest base.

Australian General Manager David Jordan said the LSM Online Portal is easy to navigate and use, and therefore will encourage Franchise Partners to engage in LSM initiatives and drive Brand awareness for their stores within their local communities. It also creates an opportunity to share initiatives and best practice from within the network with our franchise partners almost instantaneously. “Our Franchise Partners, with the assistance of our Business Development Managers, are encouraged to create their own local

“With the introduction of the LSM Online Portal, Franchise Partners will have more flexibility and autonomy than ever before to tailor marketing materials to their own unique needs, and still adhere to Brand standards.” Within the first four months of launching the LSM Portal, Baskin-Robbins has already seen strong Franchise Partner engagement, with 85 per cent of the Franchise Network already utilising the system in their stores’ for customised marketing collateral. Additionally, Baskin-Robbins are incentivising the program to encourage continued engagement. Franchise Partners are able to earn points by achieving specific

8 Business Franchise Australia and New Zealand

guest satisfaction and store audit scores. These points can then be spent on marketing collateral through the portal, effectively complimenting their Local Store Marketing budget. “Brand affinity is at the heart of our business, it starts with getting Local Store Marketing working effectively, our Franchise Partners understand the importance of local community involvement and engagement,” he said.

EUROPCAR SEES BOOKINGS JUMP AS AUSSIES HOLIDAY AT HOME soar over December, January and even into February, with drivers snapping up cars for road trips in all states. In an industry where most holidayers generally book their car hire only a month in advance, forward bookings at Europcar are up 10 per cent in December, 20 per cent in January and 38 per cent in February. Europcar Australia & New Zealand CEO Ron Santiago said the forward bookings suggested that more people would be holidaying at home this summer, rather than travelling internationally. “Certainly travellers are more prepared this year and locking in their car hire much earlier than usual to get a good rate and peace of mind that their holiday is booked and ready to enjoy,” he said.

Car hire bookings over the summer period have surged across Australia as more people holiday at home this year, according to car rental company Europcar Australia. With 120 locations nationally, Europcar Australia has seen bookings

“The dollar could be somewhat of a factor in the desire to holiday at home, but the tourism industry in Australia has also responded really well and is making a great case to explore our backyard rather than travel overseas. Mr Santiago said January’s forward bookings included strong demand for the fleet’s bike carrier vehicles in Adelaide during the Tour Down Under, of which Europcar is a sponsor.

Snooze celebrates franchise success and expects strong growth for 2016 store spans over four years during which they have grown a very successful business, renowned locally for its exceptional customer service and impressive visual merchandising. Russell said, “We are absolutely thrilled to be awarded Snooze ‘Retailer of the Year’ for the second time. Delivering a good financial return on investment is just one component of owning and running our business; the reward of being recognised again by our peers truly is the icing on the cake!” The award night was brought to life with a Ruby-themed Gala Dinner, in celebration of the business’ 40th Anniversary milestone. Gentlemen wore ruby coloured bow ties, and ladies wore pieces of ruby jewellery to celebrate the theme. Bedding retailer Snooze has announced its top franchise performers during its 40th Anniversary award ceremony held recently in Fremantle.

Belinda Cooper from Snooze Capalaba (QLD) took out the top award for ‘Retailer of the Year’ for the second time in four years.

The annual black-tie event commends franchise achievements and praises the dedicated teams, and individuals, who contribute to the overall success of the business.

The team were awarded the prestigious accolade in recognition for their consistent delivery of excellence across all judging criteria – including customer experience, customer satisfaction, commitment to staff development and profit performance.

Snooze Franchise Partners, Russell and

Russell and Belinda’s commitment to their

Snooze Managing Director Simon Beaty said, “Every year, our awards ceremony presents the perfect opportunity to celebrate the year that was, acknowledge our year-onyear success as a franchised business and give our Franchise Partners and their teams the recognition they deserve.” With continued growth over the last few years, Snooze has reinforced its commitment to expand the brand’s store network across Australia in 2016.

Business Franchise Australia and New Zealand 9

cover story: h a i r h ouse wa r eh ouse

Hairhouse Warehouse:

The powerhouse Studying Commerce at Deakin University in 1997, Emad Nayef had no idea that his part-time job as a junior within a small store, would lead to becoming an award-winning multi-unit franchisee and Managing Director at powerhouse Hairhouse Warehouse (HHWH).

With hard-working parents and three siblings Emad had been delivering pizzas and working door-to-door sales to fund his degree when his friend Joe (now owner of HHWH Highpoint amongst others) told him about a shop that had opened in Knox City, Victoria called Hairhouse Warehouse. They were looking for a shelf stacker and afterhours cleaner, so Emad applied and soon joined the team. Emad says, “HHWH Founders Tony and Joseph Lattouf were working separately at that time. Tony was running the retail outlet at Knox City and Joseph was running Lattouf International in Doncaster which at that time was the busiest salon in Australia. “I was immediately drawn to Tony’s aura

10 Business Franchise Australia and New Zealand

and could see potential for the growth of the company. I quit University to work with him full time although my dad was furious. I had to tell him I was deferring university because I wanted to work full time as a Stock Manager but all I was really doing was putting stock away.” After a period of time Emad was promoted to Assistant Manager and set up a small wholesaling company that became a booming business; supplying the local salons with their shampoos, conditioners and styling products etc, in an old van that wouldn’t always start. “By 1999, I had become Manager at Knox City when HHWH decided to franchise, opening the first franchised store at

Chirnside Park. In 2000 Tony and Joseph - who was actively involved by then and helping Tony run the company - opened HHWH Greensborough, and on 11th August 2001 I took over and celebrated my first store opening - I was 22.”

RETAIL IS DETAIL Within the first six weeks, Emad doubled the turnover of the store. “My staff and I treated every single customer that entered as if they were my mother. I re-arranged the entire store and displayed everything perfectly. In the 1990’s and early 2000’s people would do hand-written signs, I changed that. I made sure all the signs were perfectly laminated, using consistent fonts and price tickets, creating my own style guide. It was like a different store.” Emad continues, “This was all at the age of 22. I had a wide age range of staff, from young to old and they all understood that my age was irrelevant. I have extremely high standards in everything I do, even at school, I always had to be the best; the best in class; the best at sports. “One year later, Tony and Joseph opened HHWH at Northland and I bought that from them also, so at the age of 23, I had two stores. Again at Northland I made sure that the shop looked spectacular, using my first store as the template.” Now the owner of eight stores, Emad says, “Since I acquired my first franchised store in 2001, 75 per cent of my staff are still with me; I have always ensured that my staff are treated well, knowledgeable, receive the highest standard of training and that they know exactly how to recommend, consult and upsell. For my staff, HHWH is a career, not a pitstop!”

A FAMILY AFFAIR In 2004, Emad’s brother Nic, after completing his Commerce degree at University, bought into the business and joined as Emad’s business partner. Emad says, “He’s integral to what happens both in my stores and also at support office and he’s the role model for every new franchisee, all of whom spend time with him training. He’s won Franchise of the Year, is in the Hall of Fame, and he’s also the Franchisee Citizen of the Year this year, as

“A lot of our single-unit franchisees are on the waiting list to get a second store which is a great testament to the brand; once you have one, you want more.” well as having the role of National Buyer for the Group. My other brother Sam, also with a Commerce degree, is the Marketing and Social Media Manager for our stores and he’s been working with me for approximately 12 years.”

BRIDGING THE GAP “In 2007, going full circle, I bought the original Knox City store where I started as a junior. “Many times over the years, I’d been asked by Tony and Joseph to buy into the company, and in January 2012 I became the Managing Director of HHWH and also one of the owners. My role is to make sure that I bridge the gap between franchisor and franchisee. Within other franchise systems there can sometimes be an ‘Us versus Them’ mentality and I know that for the continued and future success of HHWH the franchisee must always come first and foremost. The first thing that I did upon joining the board was to make sure that Head Office and the support team understood that. Without the franchisees this empire would not exist. “I’ve made sure that in all new agreements with suppliers, the franchisees are getting the absolute best deals. Everything that I had been doing for my own eight stores with regard to negotiations, I have replicated throughout the brand and so the franchisees are very happy. Every year, we are increasing our margins across the board to benefit the franchisees. When I’m negotiating with a supplier, I think of the franchisee that’s in a regional location that doesn’t have the support that say Chadstone does. The person that’s put their whole retirement fund; put their whole life on the line to join HHWH, for them every dollar does count!”

MOVING FORWARD At the recent HHWH Franchise Conference, Emad advised the franchisees to go back to their business and treat each day as though it was the grand opening day; to remember

the adrenaline and butterflies of opening the doors for the first time. “A successful franchise surely has to be one that has a majority of multi-unit owners, which HHWH does. A lot of our single-unit franchisees are on the waiting list to get a second store which is a great testament to the brand; once you have one, you want more. “At the conference, I wanted to remind our multi-unit franchisees to go back to basics. When you have one store, you know all your staff members names, their partners names, where they were born, when their birthdays are, you know everything. By your second store you still know a few of these things, but the second one can be more about numbers on a report. By the time you own the third one, you start forgetting the little things and I wanted our multi-unit franchisees to remember the passion that they had for the first store, to make sure they have the same for the second, third, fourth or fifth etc. - the same passion and the same emotions. The feedback has been very good and in the few weeks since the conference our growth has gone up by another two per cent.”

POWER LIFTING In late 2011, Emad took up power lifting, going on to win national championships in Australia, and international in Europe and the US before breaking his arm three times. Currently on his comeback trail, Emad is proof that with determination and the right mindset you can achieve your dream. With international expansion in the pipeline, 140 Australian stores plus another 20 to be opened within the next 18 months, HHWH are the powerhouse of good hair. For more information, contact Franchise Development Manager Peter Fiasco on: T: 0451 370 060 E: peterf@hairhousewarehouse.com.au W: www.hairhousefranchising.com.au

Business Franchise Australia and New Zealand 11

fanz

fr anch ise associ at i on of n e w ze a l an d

NEWS New FANZ Board takes up its responsibilities following the AGM

At its first meeting of the FANZ Board following the annual elections, Board members elect the Chair and Vice Chair positions for the following year.

Consultants was elected as Vice Chairman.

New Zealand, was elected as Chairman

In his message to Members, Brad Jacobs, who was Vice Chairman for the previous year said, “Our Board this year draws on a wealth of knowledge in the franchise and commercial sectors and in my view brings a fantastic balance of knowledge and experience to the table. It is comprised of four franchisors, a very experienced franchise consultant, an equally experienced Barrister and Solicitor and our newest member, a banker with wide experience right across the finance sector.

and Callum Floyd, Director of Franchize

“There are a number of challenges

For the coming 2015/16 year Brad Jacobs, Director of The Coffee Club,

12 Business Franchise Australia and New Zealand

currently facing our business sector, including such things as the Auckland housing bubble and the continuing volatility of milk product prices. We heard at this year’s Conference that whilst the dairy market was in decline, the service sector had been performing fairly well; however, we are now starting to see a general slowing in the economy. It will be important this Board remains cognisant of the markets we all operate in and makes fiscally sensible decisions about how we support our members. I believe the broad range of skills we bring to the table will place us in good stead in this respect.”

FANZ at the World Franchise Council and Asia Pacific Franchise Confederation meetings in Brisbane The World Franchise Council (WFC) is an association of 43 National Franchise Associations whose purpose is to encourage international understanding and cooperation in the protection and promotion of franchising worldwide, with the Asia Pacific Franchise Confederation (APFC) being the grouping of 12 of those Associations in our region.

The October meetings of the WFC and APFC were held in Brisbane from October 8th-10th to coincide with the Franchise Council of Australia’s (FCA) 2015 Convention. The reports from around the world told of a wide variety of franchise activity and government involvement, but a great many common issues were found amongst delegates and were discussed in

Westpac New Zealand Franchise Awards 2015-2016

This year will be the 21st anniversary of these awards that will culminate in a Gala Dinner and Awards presentation on the 14th November to be held at the Rendezvous Grand Hotel in Auckland. The Westpac New Zealand Franchise Awards

are designed to recognise franchising’s highest performers and provide them with valuable business and marketing advantages. The process of entering invites entrants to critique their business using key performance measures within the internationally recognised Baldrige methodology for business excellence awards. The Franchise Association of New Zealand has been working closely with the New Zealand Business Excellence Foundation since 2007 and has successfully upgraded the National Franchise Awards process, criteria

depth at a number of breakout sessions during the three days of meetings. Both the WFC and the APFC are attracting new national franchise associations to become members and to fulfil the necessary requirements for admission. One of the aims of both bodies is to help enhance the development and reputation of franchising, especially in those countries where franchising is, as yet, not fully developed. FANZ Executive Director, Graham Billings, said that at the meetings of these two bodies, the important role that the franchise business model can play in the economic development of countries as well as the opportunity to become agents of social change was high in the list of agenda items.

and structure. As some background to this relationship - the New Zealand Business Excellence Foundation administers the New Zealand Business Excellence Awards which recognise the top performing organisations in New Zealand. In past years many of our Franchise Awards winners have gone on to enter the New Zealand Business Awards with great success. The Awards incorporate a four stage assessment process A total of 30 Awards are available to be won. These are split into Categories (6 Individual Awards, 3 Community Awards, 5 Special Category Awards and 14 Industry Related Awards. The Industry Category winners are then automatically eligible for the 2 Supreme Awards (Franchise System and Franchisee of the Year). This year’s winners will be published in the next issue and will be available to view on the Association’s web site the following Monday.

Business Franchise Australia and New Zealand 13

e x pert a dv ice

What should you be aware of in the lease?

Starting a business can be a daunting process fraught with potential challenges. One of the most common and important factors in any retail premises-based business is the lease over the premises. The same is true for any site-based franchised system. As a franchisee, it is important to ensure that you are fully aware of all of your rights and obligations under the lease so that you can make an informed business decision before entering into the lease and franchise agreement. But what should you look out for in the lease?

Who holds the lease? In franchising there are predominantly two ways in which a franchisee can occupy business premises: 1. The franchisee enters into a lease with the landlord directly as tenant; or 2. The franchisor enters into the lease with the landlord and ‘licences’, or ‘sub-leases’, the right to occupy the premises to the franchisee through a licence to occupy. Whether you take the lease yourself or occupy the premises through a licence or sub-lease depends on the franchisor’s business model. Generally however, most franchise brands that operate out of major shopping centres have the franchisor enter into the lease. This is because major landlords prefer to deal with franchisors, who potentially have tens or hundreds of outlets around Australia, rather than stand-alone franchisees. Conversely, the ‘buying power’ of franchisors means that they are better placed

14 Business Franchise Australia and New Zealand

to negotiate more favourable lease terms than franchisees. It is important that you are across the terms of the lease, whether under a lease you occupy yourself or through a license granted to you. In general, licenses to occupy will require that you comply with all of the conditions of the lease regardless, making it important that you obtain appropriate legal advice and understand your obligations.

Your rights under Retail Leasing Legislation One of the first things you should be aware of is that you may have rights under Retail Leases legislation when it comes to negotiating, entering into and complying with a lease. Relevant legislation and provisions vary from state to state, but generally provide for crucial checks and balances in the leasing process and for important protections for lessees and retail businesses.

“It is important that you are across the terms of the lease, whether under a lease you occupy yourself or through a license granted to you.” Bianca Sevastos | Partner Baybridge Lawyers

Term Arguably one of the most crucial elements of a retail lease, the term of the lease determines its duration and how long you can expect to occupy the premises. The location of your business is one of the most fundamental and enduring characteristics of your business and its goodwill. Wherever possible you should ensure that the term of the lease coincides with the term of your franchise agreement. For instance, it is not advisable to enter into a three year lease if you are entering into a five year franchise agreement. In the current retail market, most large shopping centre landlords do not provide options to renew the lease and you could be left with a situation where there is a remaining term on your franchise agreement but you do not have the right to continue to operate out of the store. While most franchise agreements contemplate this situation by providing a right for the franchisee to find alternative premises if the landlord refuses to renew the lease, it is better to prevent any such issues through an appropriate term in your lease, if possible.

Rent/Percentage Rent Equally as important as the term of your lease is the rent which you will be required to pay. Given that rent often constitutes the largest fixed cost of any retail business it is important that you understand how much rent is payable and ensure that your business can afford it. Many retail landlords (for example, within most shopping centres) require payment not only of a fixed monthly base rent, but also of a proportion of the business’s takings, known as ‘Percentage Rent’. It is crucial that you understand the types of rent which will apply to your premises and fully understand the manner in which rent is

calculated. Percentage Rent in particular and its impact on your business can be difficult to calculate and it is important that you obtain business advice and undertake modelling to ensure your business can bear the cost. It is also important that you understand the associated sales and revenue reporting requirements.

Personal Guarantees Landlords often require that personal guarantees are provided by key persons of the business to guarantee compliance with the lease. In simple terms, this means that if the tenant is unable to pay the rent, or do anything else it is required to do under the lease, the landlord may pursue the person who provided the personal guarantee directly. Even where you are only granted a license to use the premises, you should be aware that you may be required to provide personal guarantees to the landlord. Landlords generally require personal guarantees to offset the risk they face with small retail businesses.

mitigation measure employed by landlords. Franchisees should enquire if the landlord has any specific requirements as to the wording of the bank guarantee and make contact with their bank well in advance of the bank guarantee being due. It can often take some time for the bank to prepare the bank guarantee which can lead to delays in the tenant being provided access to the premises.

Fitout Contributions or lease incentives In the current retail landscape it is standard practice for franchisors to negotiate with major landlords fit-out contribution payments to incentivise the franchisor to open an outlet in their centres. This reflects the significant clout and buying power of franchisors and the considerable investment franchisors must make in identifying and selecting appropriate retail outlets and leasing sites for their franchises. Landlords enjoy the benefits and patronage that the presence of a large franchise chain can bring to their retail centres. In accordance with the Franchising Code of Conduct, your franchisor must disclose any such contribution and whether it will be passed on to you to allow you to make an informed decision when entering into the franchise agreement and lease.

It is very important that you understand the implications of providing a personal guarantee and we highly recommend that you seek legal advice before doing so.

Bank Guarantee Most landlords will require security under the lease to be provided in the form of a bank guarantee, usually for an amount equal to three to six months’ gross rent including outgoings. In most circumstances, you will be required to provide the bank guarantee directly to the landlord. In the event that the business is in default of its obligations under the lease, such as by failing to pay the rent, the landlord may ‘draw down’ on the bank guarantee for the amount outstanding and require you to ‘top up’ the bank guarantee to the original amount provided. This is another risk

Landlord’s Disclosure Statement Under Retail Leasing legislation in most states, landlords are required to provide their prospective retail tenants with disclosure about the terms and conditions of the lease in the form of a ‘disclosure statement’. In most cases, even where you are only entering into a license to occupy over the premises, you should also receive a copy of the disclosure statement. It is important to review and familiarise yourself with the disclosure statement to ensure you fully understand the terms of the

Business Franchise Australia and New Zealand 15

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lease you are to enter into and to ensure it is consistent with the actual terms of the lease.

Outgoings/Marketing Contributions Most landlords will pass on to tenants, as part of standard leasing practice, the costs, outgoings and other expenses of the centre. These generally include all sundry and other significant costs associated with the operation of the premises and retail centre, including air conditioning, maintenance, pest control, security and, depending upon the applicable retail leasing legislation in your state, may include items such as land tax. Landlords will often also require from tenants contributions toward the marketing and advertising costs of the centre to promote greater patronage to the centre. Costs of this kind will generally be apportioned among the existing tenants of the centre based upon the proportion of the total floorspace of the centre that they occupy. It is important to ensure you understand the types of costs which may be claimed and the manner in which these are calculated and allocated to your tenancy.

Refurbishment Many leases will have a requirement that the premises are refurbished at least once during the term. The extent of such refurbishments can vary and are separate to any refurbishment requirements under the franchise agreement. Generally, these involve bringing the premises up to a presentable state consistent with the high standards of retail premises and presentation within the retail sector in Australia. Franchisees need to be aware of these requirements and factor any such costs into their business model to ensure that the business will have sufficient capital to carry out such repairs and refurbishments when the time arises.

Daunting yet manageable While the above may make the lease of a retail premises seem like a daunting and confronting affair, with the right assistance and advice and careful planning the leasing relationship becomes a very manageable process. As with most other similar business processes, it is important to ensure that you enter the process well informed with

â&#x20AC;&#x153;The location of your business is one of the most fundamental and enduring characteristics of your business and its goodwill.â&#x20AC;? the right advice and with adequate support and capital to ensure you can meet all its requirements.

dispute, obligations under the Franchising Code of Conduct and the Competition and Consumer Act.

Bianca Sevastos, Partner at Baybridge Lawyers, specialises in franchising and licensing and advises on all aspects of franchising industry compliance with the Code.

Baybridge Lawyers is a specialist corporate and commercial law firm and a leading authority on all franchise related matters. They are seen as trusted advisors to many brands nationally and internationally.

Bianca has extensive experience and advises on a range of national and international transactions, industry master and area development rights and advises both franchisors and franchisees in

16 Business Franchise Australia and New Zealand

Phone: 02 9232 3511 Email: info@baybridge.com.au Web: www.baybridge.com.au

FC_AD-Franchising_JULY2015.qxp_Layout 1 15/07/2015 9:08 am Page 1

WE ARE A FULLY INTEGRATED CONSULTANCY FIRM, SPECIALISING IN DEVELOPING, GROWING AND MARKETING FRANCHISE SYSTEMS FC Business Solutions is the only integrated consultancy focused exclusively on the franchise community. Our team of professionals has been providing specialised and expert services to franchises for many years.

System Development â&#x20AC;˘ Modelling and feasibility â&#x20AC;˘ Set up of franchise systems â&#x20AC;˘ Operational system development â&#x20AC;˘ Strategic planning â&#x20AC;˘ Coach, mentor and train franchisors in running their systems

Business Operations â&#x20AC;˘ Coaching and structured mentoring program â&#x20AC;˘ Strategic and business planning

Marketing, Communications and PR

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â&#x20AC;˘ Planning and implementation of marketing, communications and brand strategy

â&#x20AC;˘ Facilitation of relevant, action based training sessions aligned with national competencies

â&#x20AC;˘ Brand health checks

â&#x20AC;˘ Build learning pathways for franchisees to up-skill

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â&#x20AC;˘ Issues and crisis management â&#x20AC;˘ Franchise launch strategies â&#x20AC;˘ Building brand profile

â&#x20AC;˘ Implement a multi-unit development program to grow your franchise network Our range of training programs includes: â&#x20AC;˘ Managing the Performance of Your Team

Health Check Review and assessment of: â&#x20AC;˘ Business structure and planning â&#x20AC;˘ System and operations â&#x20AC;˘ Marketing, communications and PR â&#x20AC;˘ Organisational structures and resources

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â&#x20AC;˘ Bullying, Harassment and Discrimination - are you Taking it Seriously? â&#x20AC;˘ Developing Your Leadership Brand â&#x20AC;˘ Developing and Growing Your Franchise System â&#x20AC;˘ Structuring Your Support Team

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â&#x20AC;˘ Easy to read and updated Operations Manuals

â&#x20AC;˘ HR audits with ongoing HR helpdesk support

â&#x20AC;˘ Work Health and Safety Systems

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â&#x20AC;˘ Multi-Site Franchisee Development

â&#x20AC;˘ Franchisee Recruitment and Employee Manuals

â&#x20AC;˘ Social Media Coaching

â&#x20AC;˘ Internal Head Office Department Procedure Manuals

â&#x20AC;˘ Field Support Coaching

â&#x20AC;˘ Individual personal development plans and performance appraisals

â&#x20AC;˘ Franchise Induction Programs

â&#x20AC;˘ Exit interviews

â&#x20AC;˘ Structured and interactive induction program

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ISO 9001:2008 Certification

Our management system has been certified to meet ISO 9001:2008 standards.

Quality ISO 9001

profile : 9 D ACTI O N CI N EM AS

IN 9D ACTION CINEMAS YOU DON’T WATCH A MOVIE…

YOU BECOME PART OF IT!

9D Action Cinemas is an Australian owned company founded in 2012 when opportunities for small simulator ride cinemas were identified in Australia and New Zealand. After a considerable amount of time spent researching the best systems and equipment around the world to ensure reliability, safety and cost-effectiveness, a team of professionals was established to manage the corporate and operational structure. The Managing Director, Nigel Corne has a substantial background in establishing and managing franchise businesses. Utilising his engineering degree, he is also personally involved in providing the technical specifications to the manufacturers of the equipment, ensuring the machinery is designed to suit all Australian conditions and can be supported by locally trained technicians

Explode your senses “9D Action Cinemas is the latest generation in dynamic, visual entertainment, simulator rides suitable for both children and adults,” explains Nigel. “Your senses are overwhelmed with the stimulating and exciting 3D animated movies with surround sound, coupled with ‘active motion’ luxury chairs and nine different dramatic effects such as rain, fog, lightning, wind, snow, touch and bubbles. Never before has such an action adventure been experienced on an amusement ride,” he continued. All cinemas have either six or twelve seats with external television monitors that promote the cinema and also allow the public to view the fun people are having inside the cinema. This has the benefit of promoting the cinema and also gives parents the

opportunity to watch their children enjoying themselves, knowing they are in a safe environment. The parents love this facility! Running time for movies is up to nine minutes, allowing many sessions each day and generating constant income. Bookings are not necessary unless a birthday party or event is being planned

Time for a Change? 9D Action Cinemas offers something very different from the usual juice making, lawn mowing and fast food franchises. It’s an exciting franchise to operate! The latest Household Survey showed the average Australian spent $1,236 on goods and services, an increase of 38 per cent!. One of the largest increases highlighted was recreation, increasing up to 41 per cent. This emphasises the growing opportunity for 9D Action Cinemas franchises, whose sole focus is recreation, with cinemas located in major regional shopping centres or tourism precincts. Operated by just one person, 9D Action Cinemas has low overheads and is supported by an experienced franchisor. There is also an income guarantee for a period of time to give franchisees confidence in the expected revenues. With no competitors in Australia that offer these extensive services and support

18 Business Franchise Australia and New Zealand

through a franchise structure, 9D Action Cinemas understands the importance of the sustainability of this business concept into the future. All businesses need to remain innovative and react to changing times or new competition. 9D Action Cinemas has the ability to grow into the future, as exciting new movies are released often and new effects are easily introduced to ensure customers keep returning.

Turn-key business With each new site, franchise training is conducted before and after the opening to ensure each franchise is competent operating the business. 9D Action Cinemas provides a ‘turn-key’ business solution, fully established and functioning, ready to start trading. The support includes marketing, maintenance and most importantly, an ongoing movie supply so there is always a new experience to encourage people to return. If you can imagine owning a business which gives you MORE TIME to do the things you want to do, more CONTROL over your FUTURE and provides you with a GREAT INCOME at the same time, contact: P: 1300 550 132 (select Option 4) E: franchise@9dactioncinemas.com.au W: www.9dactioncinemas.com.au

Simple to operate z Low Overheads z Income Guarantee

Are you looking for a simple business that is easy to ŽƉĞƌĂƚĞ͕ ŚĂƐ ůŽǁ ŽǀĞƌŚĞĂĚƐ ĂŶĚ ŽīĞƌƐ ŐŽŽĚ ƌĞƚƵƌŶƐ supported by an income guarantee? If so, you must ůŽŽŬ Ăƚ ƚŚĞ ϵ ĐƟŽŶ ŝŶĞŵĂƐ ĨƌĂŶĐŚŝƐĞ ŽƉƉŽƌƚƵŶŝƚǇ͘ dŚĞ ϵ ĐƟŽŶ ŝŶĞŵĂƐ ĨƌĂŶĐŚŝƐĞ ŝƐ Ă ĐŽŵƉůĞƚĞ ƚƵƌŶͲ ŬĞǇ ďƵƐŝŶĞƐƐ ƚŚĂƚ ŝƐ ĨƵůůǇ ŽƉĞƌĂƟŽŶĂů͕ ƐƵƉƉŽƌƚĞĚ ďǇ an experienced franchisor and operated by just one ƉĞƌƐŽŶ͘

Each cinema has 6 or 12 luxury seats with animated ŵŽǀŝĞƐ ƚŚĂƚ ƌƵŶ ĨŽƌ ĂƌŽƵŶĚ ϴ ŵŝŶƵƚĞƐ͘ dŚĞ ŵŽǀŝĞƐ ĂƌĞ ĐƌĞĂƚĞĚ ĞƐƉĞĐŝĂůůǇ ĨŽƌ ϵ ͕ ĨĞĂƚƵƌŝŶŐ ŵĂŶǇ ĚŝƐƟŶĐƟǀĞ ǀŝƐƵĂů ŚŝŐŚůŝŐŚƚƐ ƚŚĂƚ ĂƌĞ ƐǇŶĐŚƌŽŶŝƐĞĚ ǁŝƚŚ ĚƌĂŵĂƟĐ ƐĞĂƚ ŵŽǀĞŵĞŶƚƐ ƚŽ ĐƌĞĂƚĞ Ă ƐĞŶƐĂƟŽŶĂů ĞǆƉĞƌŝĞŶĐĞ͊ The total cost of the investment starts from A$175,000 ĨŽƌ Ă ϲ ƐĞĂƚ ƐƚĂŶĚͲĂůŽŶĞ ŵŽĚĞů ĂŶĚ ĨƌŽŵ ΨϮϱϱ͕ϬϬϬ ĨŽƌ Ă ĮƩĞĚ ŽƵƚ ƉƌĞŵŝƐĞƐ͘

ϵ ĐƟŽŶ ŝŶĞŵĂƐ &ƌĂŶĐŚŝƐĞ ZĞĐƌƵŝƚŵĞŶƚ dĞĂŵ

Australia

1300 550 132 New Zealand +61 1300 550 132

Ğ͗ ĨƌĂŶĐŚŝƐĞΛϵĚĂĐƟŽŶĐŝŶĞŵĂƐ͘ĐŽŵ͘ĂƵ e: ĨƌĂŶĐŚŝƐĞΛϵĚĂĐƟŽŶĐŝŶĞŵĂƐ͘ĐŽŵ͘ĂƵ ^ĞĞ ŽƵƌ ǁĞďƐŝƚĞ ĨŽƌ ŵŽƌĞ ĚĞƚĂŝůƐ ǁǁǁ͘ϵĚĂĐƟŽŶĐŝŶĞŵĂƐ͘ĐŽŵ͘ĂƵ

(Photo by Patria Jannides /Newspix)

Business Franchise Australia and New Zealand 19

l ega l a dv ice

Secrets to Succeed as a Franchisee

You may have come across the statistic that nine out of ten franchisees renew their franchise after their first experience.

professionals and ‘want-to-be’ entrepreneurs, often meaning different things to different people. Just because you have an idea does not mean it’s an opportunity. I would define an opportunity as “The process of articulating an idea, assessing its commercial value and matching that with your capabilities to make money out of that idea”.

And if you think like me you will presume that the failure rate for a franchise business is about 10 per cent. To make sure you’re not in the 10 per cent, I’ll highlight a few areas to help you minimise the risk.

Do you realise that for an idea to be classified as an opportunity it must fulfill the following criterion:

But first let me ask you a question.

What does opportunity mean to you? The term is widely used by business

• Articulating the idea • The idea must have commercial values • It matches your capabilities • You can make money in the process Let’s discuss these aspects a little more closely to see what each of them means.

20 Business Franchise Australia and New Zealand

Articulating the Idea Articulating the idea means defining the idea. Throughout my entrepreneurial career I realised that defining the idea is very important and it could make or break your opportunity. In a real sense this will mean defining the business model or how you want to make money from the opportunity. During 2007 I was in the business of trading in electrical water heaters and we had more than five distributors buying our products that were contract manufactured for us by a company in Singapore. For every unit, we were making a gross margin of US$6 and it was a simple idea. I would get the order from my customer in Myanmar or Vietnam for let’s say 2000 units and we then place an order with our manufacturer and the goods are shipped

“Evidence of demand in another market may not mean similar demand for your market.” Ali Kasa | Founder Egnatium

It matches your capabilities Your idea must match your capabilities. In other words it must be something that you are good at or that you can do better than anyone else in the competitive landscape. My real competency is to find customers and build relationships. This was very well suited with our initial idea of trading only, but when we decided to modify that idea from trading to assembly we became exposed. We had a great idea that was commercial but assembling was new and we had never done it before. So we embarked on our assembling idea which took us eight months to set up. Our assembling plant and our bill of materials revealed that we sold our products at a loss of US$2 each. We struggled to fulfill orders on time so we had to compensate our customers for that, then our product was not stable and customers were not willing to accept a price increase.

The idea must have commercial value This simply means is there enough demand from the market for what you are thinking to do or offer to the marketplace? From my example above you could conclude that my idea had commercial values as we had orders in hand. All we needed to do was produce them.

Lastly, check the business model of the franchise system to discover how you will make money out of it. Ask the franchisor to show you evidence of how you will be able to make money out of their franchise. You need to assess the franchise opportunity for YOU and NOT for others. Simply ask yourself the following questions: • Do I clearly know what the franchise idea is? • Do I have evidence of the demand for such products and services in the market I want to operate? • Do I have the capabilities required including compliance to execute the franchise idea? • Do I have evidence that I can make money from this idea?

You can make money from the process

to the customer from our supplier and we would make US$12,000 for every container we shipped out. After two years a brilliant idea from one of our team members was proposed to start our own assembly plant and our margins would increase from US$6 to US$10. So now the idea changed from trading to assembling.

a franchise system is your ability to follow the franchise system. If you know that compliance is not your strength then perhaps franchising is not for you.

Your idea must allow you to be making reasonably good profits. From the example I shared above, you can see clearly that the trading idea was making money, but that was not the case for the assembly idea. Now, you may think that similar risk is not available in the case of purchasing a franchise opportunity and to some degree this is true. However, you do need to ensure that the idea is well defined. This usually is the case unless you are buying a new franchise. The idea must be commercially sound, so you need to look for data or evidence that shows the real demand for the products or services offered by the franchise system in the market you are operating. Evidence of demand in another market may not mean similar demand for your market. Another aspect is to ensure that your franchise matches your capabilities and one of the most overlooked capabilities in

Just because the franchise has worked for someone else in some other market does not mean it will work for you. I decided to move from a trading idea to an assembly idea because I looked at my contract manufacturer and not myself when assessing the opportunity. That can be dangerous. It may look exciting but that’s because you don’t know enough about it. Why not download our free report entitled Top 5 Franchise Opportunity Mistakes to Avoid and decide to buy the franchise opportunity and not false hopes. I wish you good luck with your entrepreneurial dreams. Ali Kasa is the founder of Egnatium, a B2B franchisor specialised in helping organisations achieve sustainable growth. Ali is a regular speaker, trainer and coach on business growth and sustainability. Ali can be reached at: E: ali.kasa@egnatium.com T: +61 439 222 377

Business Franchise Australia and New Zealand 21

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Managing the Social Media Conversation “Allowing a franchisee to maintain and contribute to their own social media resources also adds to their inclusion and commitment to the entire brand.”

22 Business Franchise Australia and New Zealand

It is abundantly clear that social media is now an integral part of most people’s lives, in both the personal and professional sense. Some franchise marketing strategists are shy to capitalise on social media as a marketing platform, mostly because of concerns with maintaining their brand integrity and control of the franchise identity. To some franchises, the thought of multiple and unrestrained voices on any social media is the stuff of nightmares in relation to brand preservation. But by shutting down the franchisee’s ability to promote themselves as the local purveyor of their products, a brand risks undervaluing its most valuable assets: its people. Promoting responsible and brandsensitive social media participation is an

Business Franchise Australia and New Zealand 23

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“Local knowledge and personalities can be extremely advantageous when it comes to promotion of localised services.” Joe Papadatos | Managing Director Icon Visual Marketing

excellent way for a franchise to enhance their market presence. Local knowledge and personalities can be extremely advantageous when it comes to promotion of localised services. The strength of a brand is usually established by existing marketing strategies, so adding the extra dimension of a local social media platform can enhance further brand development that would otherwise be left unexplored. Each franchisee is the face of the wider brand. They are the people on the ground developing the rapport with customers, providing the services clients are sourcing, and maintaining the image of the franchise in their local communities. The key to ensuring a franchise’s social media strategy is in the best interest of both its brand and its individual franchise owners is the provision of distinct and appropriate guidelines for all social media use. By giving clear recommendations, a franchise can control and preserve the integrity of its brand as well as open up the endless possibilities that social media marketing can present. These recommendations could include specific style guides, relevant and appropriate topics for discussion, and ideas for general, local interaction.

policies will ensure the preservation of the brand’s integrity while still giving the branches a voice in the local marketplace. By providing these frameworks, the franchise can be confident that their individual social media pages are promoting a unified and consistent message, just reworked with the local flavour. Market audiences are now highly immediate people. Google has even developed the phrase ‘micro-moments’ to describe the situational manner in which people are now searching and accepting recommendations for products and services. Circumstantial, ‘micro-moment’ searching is inherently benefitted by a local social media presence as it assists in capitalising on all potential sales. Moments like these could include a group of friends getting out of a movie and are suddenly looking for a good restaurant in the area, or a traveller that needs to find a last minute hotel after their flight was cancelled. By having a local social media presence, franchise businesses can benefit from a more flexible and adaptive marketing platform that can make the most of the modern ways

Allowing a franchisee to maintain and contribute to their own social media resources also adds to their inclusion and commitment to the entire brand. Isolation is a very strong concern in the world of franchise ownership but it is one that can be alleviated extensively by giving franchisees a ‘voice’ for their business. The wider franchise can manage any concerns they may have with allowing individual social media presences by offering pre-authorised posts, topics and content for local branches to use on their pages. These resources used in conjunction with the franchise’s comprehensive social media

24 Business Franchise Australia and New Zealand

people are sourcing their purchases. Social media participation does not need to be feared or shunned in the world of franchises marketing; embracing the franchisee’s responsible and managed involvement in social media, franchises can take advantage of all available opportunities and even create new ones. Joe Papadatos is Managing Director of Icon Visual Marketing, a full service marketing agency that for over twelve years has been equipping businesses with the marketing and sales tools to help them reach their next customer. Icon Visual Marketing are highly experienced at strategically planning and building robust marketing hubs that help franchisors deliver the right marketing tools and resources to their franchisees grow. For more information contact Joe on: T: 1300 138 984 W: www.iconvisual.com.au

“

J s

W b s

t t t t t t

Own a Slice of La Porchetta!

“

La Porchetta’s not run like a corporation, but like a family business and you really feel you are part of the group.

“

Vito Ramondetta Franchisee

Join the largest Italian restaurant chain in Australia and New Zealand. You will love taking part of serving our guests quality Italian food, to order, using fresh ingredients. We are looking for passionate food lovers with a strong work ethic and drive to join our family. You bring the drive and commitment and La Porchetta will provide the proven systems, training and support to achieve success.

WHY LA PORCHETTA? t t t t t t

A proven profitable operation. We are a much loved and recognisable national brand. We have strong local area marketing support and advice. Be part our dynamic and engaged family of restaurants that love people. Join our team of restaurant owners who love getting together and share ideas. We offer a flat fee structure that allows you to build your business faster.

Minimum Investment: Dependent on Site Conditions $300k+

Opportunities now available Australia-wide in key metropolitan and regional areas. Visit: http://www.laporchetta.com.au/franchising email: franchising@laporchetta.com.au OR call (03) 9460 6700. Follow us on Social Media

/LaPorchetta /LaPorchettaOfficial /LaPorchettaChefsTV

Enquire Now Download our New iPhone App or Android App

www.laporchetta.com Business Franchise Australia and New Zealand 25

PROFILE : M AS Ta x Accou n tan ts

BEYOND THE STANDARD A young and dynamic franchise business, MAS Tax Accountants are well on the way to achieve their goal of becoming a national Top 20 Accounting Practice by 2020. Now offering integrated financial services, with the recent addition of an Australian Financial Services Licence (AFSL), MAS Tax has capabilities beyond standard accounting services, meaning franchisees can harness expertise within the network for a broader range of services without having to employ additional staff or undertake post graduate study to become personally accredited. In setting up the AFSL, MAS Tax is using their existing knowledge gained from their successful move into lending and credit services as well as their focus on using technology to its fullest to stay at the forefront of current technology and gain a competitive advantage. Utilising cloudbased systems for franchisees, MAS Tax Accountants invest in the very best software and offer a full range of financial services allowing their franchisees to offer the holistic range of services that modern clients are increasingly demanding from their Accountants.

SERVICES OFFERED MAS Tax Accountants know that it is essential to understand their clientsâ&#x20AC;&#x2122; businesses and operations in order to provide the best service possible. Specialists at working with families and businesses, services offered to all clients include lending and mortgages, self-managed super (SMSF) returns and audit, and software set-up (Xero, Quickbooks Online, MYOB etc) as well as the typical tax and accounting services such as BAS, IAS, asset protection and tax minimisation. With the addition of the AFSL, franchisees and staff within the network will now be able to offer personal insurances like Life and TPD, superannuation and retirement advice, wealth creation and financial advice on top of their existing services.

BECOMING A FRANCHISEE Franchisees have the choice of offering these services themselves (they will need to complete or already have the required training) or they can work with a financial planner from within the network to deliver these services. All applicants pass through a comprehensive assessment and selection process to ensure that only those suitably qualified are accepted into this dynamic franchise business.

PLANNING FOR THE FUTURE The expanding Franchisee Support Division recently relocated to new offices in Edithvale, Victoria to accommodate management and seven staff, as well as enough room to accommodate the expansion plan. The company holds four national seminars each year, bringing head office and franchisees

26 Business Franchise Australia and New Zealand

together with industry leaders, demonstrating that ongoing professional development is a top priority as well as helping to facilitate collaboration and joint ventures between offices. Also offering training every fortnight covering subject areas such as financial planning, regulation, self-managed super and individual taxation - face to face, or online via webinars, these specialised groups utilise the pool of knowledge and experience within the network. If you would like to assist MAS Tax Accountants achieve their goal to become a national Top 20 Accounting Practice by 2020, now is the perfect time to join. For more information contact MAS Tax CEO Alan Maddick: T: 1300 627 829 E: alanmaddick@mastax.com.au

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e x pert a A dv ice

Common reasons franchisees fail There are various reasons why franchisees fail in business. The most common include financial issues, operational issues, personal issues and franchisor related issues. All these matters can adversely impact franchisee business performance and ultimately cause franchisees to fail. Although some of these risks can be minimised under a franchise model the franchisee still needs to be aware of their occurrence and actively manage these risks at a local level.

FINANCIAL ISSUES Several common financial issues that can contribute to franchisee failure include: • A franchisee not receiving the necessary financial and legal advice from inception and therefore gearing the business too highly by borrowing maximum capacity at the outset. • A franchisee may not be able to produce prompt and accurate financial data so that timely management decisions about the business can be made. • A franchisee may have initially paid too

much for the business, particularly when the remaining lease term is short. Without a lease term there may not be a viable location to run the business from. • A franchisee may have opened a greenfield/start-up site without sufficient financial analysis, planning and research. Greenfield sites require extra due diligence with extra planning. A detailed Business Plan should be prepared and include detailed financial statements together with a profit and loss, balance sheet, cash flow and funds statement so that an informed decision can be made. • A franchisee may not be monitoring controllable factors such as labour costs, gross profit margins and average customer spend closely enough. • A franchisee may lack a fall-back position and therefore may not have the ability to inject additional capital into the business to cover unforeseen circumstances. • A franchisee may be drawing money out of the business for non-business related purposes, such as buying a new home, luxury motor vehicle or boat, which increase financial commitments while not adding benefit to the business. • A franchisee may have requested a short-term facility, such as a temporary overdraft, when in fact they required a more permanent facility. This short term facility if not paid off can create hardcore debt and then put pressure on the business and its ability to access funds when required. An overdraft facility should

28 Business Franchise Australia and New Zealand

freely move from debt to credit throughout the year. • A franchisee may be experiencing falling business sales resulting in lower profitability and causing cash flow issues. This could mean they fall behind on loan repayments, rent, creditors, tax and royalties etc. • A franchisee may be required to undergo a store refurbishment without having the cash or equity available in the business and without demonstrating the ability to increase sales and efficiency as a result. • A franchisee experiencing financial distress may not keep open communication with their bank and franchisor. If a franchisee chooses to ignore or not return calls this could hinder all parties’ ability to achieve the best possible outcome.

OPERATIONAL ISSUES Operational issues that can impact franchisees business success can be both internal and external to the business. The following operational issues can occur:

“Speaking to existing franchisees within the franchise system should always form part of a franchisee’s due diligence when buying a franchise.” Labrina Tsekouras | Senior Business Development Manager VIC & TAS Westpac

• External issues may include a competitor opening nearby within their area of influence or the failure of a major supplier without a readily identifiable substitute product being available. • Internal issues may include overstocking, particularly in a seasonal segment or location therefore impacting the businesses cash flow and profitability if stock is sold at below cost. • Other internal issues include insufficient research and due diligence completed by the franchisee to understand the business and its competitive forces, customer preferences and expectations. • Franchisees often do not plan their local area marketing activities well and they either do not spend enough or spend in the wrong areas so sales and branding is not generated. • Multi-site expansion can impact the business if a franchisee doesn’t maintain proper control when moving from single store to a multi store operation. Many franchisees focus on the new store without maintaining sufficient control over the existing business and therefore may not properly accommodate for the increased labour costs to replace their own labour when they move out of the first store. It is also likely the second store will take time to build up enough business to reach breakeven so additional capital may be required.

adversely impact a franchisee’s operations. Some common personal issues include the following:

• The franchise system has a high number of existing businesses for sale.

• A franchisee may not be spending enough time in the business.

• The franchisor is experiencing high head office churn resulting in a potential reduction in support to franchisees.

• A franchisee may not recognise that they have a problem and not willing to ask for help until it is too late. • A franchisee may become seriously ill or involved in a serious accident. • A franchisee may divorce or separate from their spouse.

• The franchisor has insufficient capital to fund expansion and system development and is reliant on selling new franchises.

• A franchise partnership may experience conflict in their business partnership.

• The franchise system has a high number of unhappy franchisees and the franchisees are not making money.

• A franchisee’s partner may leave their paid employment to work in the business before the business is able to support them.

• The franchisor is desperate to sell new franchises therefore lowering the quality of franchisees and locations selected.

• A franchisee that has worked long hours for a considerable amount of time can become burnt out and lose interest in the business. This is particularly true if they are not making sufficient profit to reward their efforts. They may feel they are just working for the franchisor, landlord and the bank.

FRANCHISOR ISSUES

PERSONAL ISSUES

Lastly, there are also a number of franchisor related issues which can impact a franchisee’s performance. Speaking to existing franchisees within the franchise system should always form part of a franchisee’s due diligence when buying a franchise. This will provide some insights into current franchisees relationships with the franchisor, how happy franchisees are and the level of support provided by the franchisor.

Sometimes issues deemed to be personal in and out of a franchisee’s control can

Franchisor issues that could affect franchisees include the following:

• Multiple stores/sites also require greater leadership skills of people than a single store/site and sometimes franchisees overlook this aspect.

• The franchisor is experiencing cash flow and profitability issues.

Westpac has supported the franchise sector in Australia for over 20 years. The growth of a specific franchise system is supported by providing streamlined processes for lending, as well as access to other lending transactional solutions. The bank also has a national network of franchise specialist business bankers who are able to deal with specific day to day needs of the franchise customer. Labrina Tsekouras is the Westpac Senior Business Development Manager for Victoria and Tasmania and specialises in the franchising sector. Contact Labrina at: P: 0418 246 903 E: ltsekouras@westpac.com.au W: www.westpac.com.au

Business Franchise Australia and New Zealand 29

sn a pshot: v.I.P. Ho m e Serv ices

Sinking his teeth into a new career Working weekends and late evenings finally persuaded Mark Palmer to make a change. Working as a National Purchasing Manager in the dental supplies industry, Mark longed to get his ‘teeth’ stuck into something else. Juggling a hectic and high pressured job with the demands of a family with five children left Mark with virtually no time for himself, let alone his family. Mark’s first stage was chatting with V.I.P. Home Services, before spending the day with one of V.I.P.’s experienced home cleaning franchisees. This is a stage that all new franchisees have to go through before they make the decision if it is for them or not. The whole experience gives the person interested in a franchise business the chance to actually find out what life may be like as a franchisee. It was this hands on experience and the chance to talk directly with existing franchisees that really gave Mark the confidence that this was the right choice for him. One year on and Mark, and his family, couldn’t be happier. “Often I wouldn’t get home until after 8pm and would also go into work on a Sunday evening just so I could get a head start for the week ahead. I now feel like I have taken control of my life. I have time for me and time for the family,” explained Mark who has a V.I.P. home cleaning franchise. One of the many aspects of the business Mark researched was the importance of the power of the brand, knowing that to get a head start in business you need to go with a company that has the professional image and expert backing. “In my business having a brand behind you such as V.I.P. really is priceless. People know the brand and what’s more they trust it. But it is so much more than the brand – it is what’s behind it too. Even before I started I was fully supported. After my training I wasn’t just left alone. I take advantage of the ongoing training

One year on and Mark, and his family, couldn’t be happier...“I now feel like I have taken control of my life.” as I know that gives me the best chance of growing my business even further,” continued Mark. Mark did his ‘homework’ on franchising and for him it was clear to see just why V.I.P. have won so many awards for their franchise system. Over the last 35 years they have helped over 4,000 people from all walks of life and from all over the country to become successful business people. Their training and mentoring is ongoing and the provided start up kit gives you everything you need to get going. What’s more their affordable franchise options gives you access to a whole network of franchisees that can work together to help you grow. With the help of V.I.P. Mark has quickly

30 Business Franchise Australia and New Zealand

grown his business and had achieved his initial business goals before schedule. “It’s been a great start to not only have a new career but also a new life really. I’m looking forward to developing the business further. With the help of V.I.P. I have set myself other business and personal goals and am now looking forward to the future rather than dreading the Monday mornings or Sunday evenings!” If like Mark you would like to change your life and wish to start your own business call V.I.P. to see how they can help on:

If ov co lo pe

P: 13 26 13 W: www.viphomeservices.com

BUILD YOUR FUTURE WITH A RETAIL ICON

Clark Rubber, the leading national retailer of pools, foam and rubber offers everything you need to build your own business. If you want to be part of a growing, award-winning retail network of over 60 stores, we offer a turnkey solution, business development, comprehensive training and ongoing marketing and IT support. We are looking for friendly, customer service-orientated and business-minded people who want to take their future into their own hands.

If this sounds like you, contact Dirk Heinert, phone 03 8727 9999 or email dirk.heinert@clarkrubber.com.au Franchising Hall of Fame

clarkrubber.com.au

Business Franchise Australia and New Zealand 31

fr a nchisor in d ep th : Cr em a Espr esso

A COMMUNITY OF FRIENDS

Since opening its first branded franchise store on the Gold Coast in 2006 and two new stores set to open before the end of 2015, Crema Espresso will have reached a milestone 15 franchised stores in just seven years. The company is now expanding into other regions with its sights set on Brisbane, Sunshine Coast, Far North Queensland and Sydney.

“Franchisees are encouraged to participate and involve themselves in the local community through sponsorship of events such as sporting and charity efforts.” Crema Espresso offers customers premium coffee, light meals and most importantly an amazing experience. The stores are designed to be a meeting place for friends and families, incorporating a bright sophisticated and modern shop design.

rather open 50 exclusive outlets where our franchisees are recording strong revenues and profits. Unlike some other systems, we want franchisee business partners, not hostages,” said Managing Director Antony Forbutt.

The Gold Coast has proven to be a brilliant test market for the award winning franchise as the brand prepares to roll out nationally. Securing prime positions in high profile shopping centres, brand recognition and appreciation has meant new stores are opening to an existing customer base.

COMMUNITY SPIRIT

“We only establish new outlets in major shopping centres and premium locations as store branding is a key part of our appeal. We do not want to open 100 stores; we would

32 Business Franchise Australia and New Zealand

When it comes to recruiting new franchisees, Crema are looking for community-minded people with a lot of enthusiasm. They also need to have a sound understanding of business and understand there are risks involved but there can be rewards that come with it. Franchisees are encouraged to participate and involve themselves in the local

community through sponsorship of events such as sporting and charity efforts. “We encourage our franchisees to get involved in the community as much as we can. For example we recently had five teams compete in the Kokoda Challenge. We also supported 45 people who took part in the Gold Coast marathon and 15 teams at the Noosa Triathlon,” said Mr Forbutt. Best Practice Franchising has been adopted to review and coach the performance of all franchisees. All franchisees meet with a business coach for two hours every quarter to review and assess their business performance. Each franchisee is reviewed against a rating system and are provided benchmarks to compare their operations against other stores. This system has proved to be beneficial in the improvement and profitability of all stores. Mystery shoppers are also utilised to

provide vital feedback for franchisees. The program is used to give great insight into the customer’s experience which is crucial as Crema Espresso’s major source of new business stems from word-of-mouth.

THE FRIENDLY FRANCHISE The franchise actively encourages all employees to treat guests as ‘friends’ rather ‘customers’. “The people who visit our stores are our friends. We don’t like using the word ‘customer’. Our stores are communal places where friends come together to meet. We operate using the mantra: it’s about the coffee and you,” said Mr Forbutt. Customers can join the loyalty program that is free to register. Members receive a free cup of coffee and are credited with 10 per

cent for every purchase. This credited cash can be used to buy any item, in any Crema Espresso store. To further enhance performance and communication within the brand, Crema Espresso are rolling out ‘Bean Me Up’, an internal intranet and communication system that connects all franchisees and employees. The system has been successfully trialled at the Parramatta store and is now being introduced to all franchisees. It uses the cloud-based World Manager software suite that connects with every employee and provides them with online training. It allows for monitoring of employees to ensure they have completed courses such as food safety and quality control to the required levels. Store managers can see all the mystery shopper results, notices, a calendar of events, employee performance results, messages and

Business Franchise Australia and New Zealand 33

fr a nchisor in d ep th : Cr em a Espr esso

“Our stores are communal places where friends come together to meet. We operate using the mantra: it’s about the coffee and you.”

to help our franchisees perform better, we have implemented the Bean Me Up intranet system to better improve our internal communication,” said Mr Forbutt.

links to social media. Managers can monitor the performance of employees any time from a phone application. The entire franchisee training program is on the intranet and all manuals and files can be accessed at any time. The training program ‘Crema Friends’ follows a simple premise: treat the people in in store like you would treat your friends. The Crema Friends system has three levels. ‘Friends’ are the people in the business, ‘Neighbours’ are the other people and businesses in the shopping centre. “We like to build a connection with our neighbours and build strong relationships with them. The third level is the Community. We believe in giving back to the community and helping the community where we can. “We are continually looking for innovations for the way we conduct our business. We started our Crema Friends internal training program to improve customer service, we implemented the business coaching system

With the recent launch of the digital community platform www.cremafriends. com.au Crema Espresso is not only your modern sophisticated local café but are a holistic communal meeting place. It is this innovation that has seen the brand continually evolve to provide the ultimate experience for their friends. Mr Forbutt continues, “This is particularly evident at the Parramatta store where we identified that a high percentage of our customers are mothers shopping with small children. We created and installed the Crema Kids concept a 25sqm children’s play area that allows parents time to enjoy their coffee while their children play. This has proven exceptionally popular and has created opportunities that we did not expect. The success of this concept has created a lot of interest from major shopping centres, which will see the incorporation of the concept into the next two store openings and the rapid expansion of our brand.” Crema Espresso is a franchise that is changing the face of the café experience and customers appreciate the personal service that a friend can offer.

34 Business Franchise Australia and New Zealand

TRAINING AND SUPPORT Joining the Crema Espresso team gives you the opportunity to own your own business, but not just any business, a proven business with a simple operation, flexible floor plans, local support, regional advertising, a four week training program, ongoing learning for franchisees and their staff, store development assistance, design support; lease negotiations, staff guidance and much, much more. At Crema Espresso, extensive training is in place to enable the success of your business. Your initial training will have you focused on whole store management. Then ongoing training and support will be assessed and delivered through your quarterly business reviews conducted by Crema Espresso and the consultancy firm Best Practice Franchising Pty Ltd. Crema Espresso are looking for hands-on franchisees. If you possess the motivation and great communication skills, are looking for a new challenge, not afraid of rolling up your sleeves, and enjoy being around people in a communal environment, then Crema Espresso’s for you. For more information contact Antony Forbutt on: T: 07 5532 7727 E: antony@cremaespresso.com.au W: www.cremaespresso.com.au

Franchise BUSINESS

T H E

M A G A Z I N E

F O R

NEW ZEALAND AUSTRALIA AND

$7.95 AUD (INC.

GST) VOL 01 ISSUE

F R A N C H I S E E S

01 NOV/DEC 2006

FOR FRANCHISEES THE MAGAZINE

PREMIER ISSUE!

AUST RALI VOL 10 ISSUE

A and

01 NOV / DEC NEW 2015

ZEAL AND AUST RALI

HEALTH, FITNESS & BEAUTY

A and NEW ZEAL AND

Franchising HAIRHOUSE WAREHOUSE :

FOCUS: FRANCHISES IN COLLAR FOOD AND WHITE FRANCHISING ADVICE FROM S INDUSTRY EXPERT

THE POWERH OU

E FROM THE FINANCIAL ADVIC

AND DEVELOPMENT

HISE | ASSESSING A FRANC

Secrets

TO SUCCEED A FRANCHISEAS E

LATE ST NEWS

FINAN CIAL

ADVIC E FROM THE BANK S

CGB Publishing is celebrating the 10 year anniversary of the inaugural issue of Business Franchise Australia & New Zealand. Our mission in 2006 was to create a magazine for you, the franchisee, that focussed on highlighting trends and developments within franchising and to provide you with expert adv ice on a wide range of franchise-related topics. Fast forward 10 years, and that is still our primary objective although we have of course moved with the times! Still available within newsagencies, we also offer digital copies and readers can also download our App to read ‘on-the-go’. We thank all of our readers, contributors and advertisers for your assistance in making Business Franchise Australia & New Zealand become a leader in its field.

$4.95 (AUD),

TOP LAWY ERS’

$6.95 (NZ) inc.

GST.

ADVIC E

australia THEN

now

Franchising contributed $126 billion to the Australian economy.

Total sales turnover for the entire franchising sector estimated to be $144 billion

In 2006, there were 960 franchise systems

According to the recent research, there are approximately 1,160 franchise systems

An estimated 62,000 units were operating in business format franchises.

An estimated 70,000 business format franchised units and 9,000 company-owned units.

Some 426,500 persons were employed in business format franchise organisations.

It is estimated that more than 460,000 people are employed directly in franchise organisations.

new zealand THEN

now

Franchising contributed $6.9 billion to the New Zealand economy.

Total sales turnover for the entire franchising sector estimated to be $21 billion

There were 350 franchise systems

According to the recent research, there are approximately 446 franchise systems

An estimated 4,217 units were operating in business format franchises.

There are an estimated 22,400 business format franchised units in New Zealand.

Some 40,195 persons were employed in business format franchise organisations.

It is estimated that more than 100,000 people are employed directly in franchise organisations.

*Franchising Australia 2006/2014 reports. NZ information courtesy of FANZ.

BANKS

H FRANCHISE | GROWT INVESTING IN A

Business Franchise Australia and New Zealand 35

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VOL 10 ISSUE 01 nov/dec 2015

health, fitness & beauty

the

l Gooind Feefactor franchising

secrets of a

ccessful Sufranchise business

ising Adonveratlevel playing field

Business Franchise Australia and New Zealand 37

what’snew! Anytime Fitness Australia Announces Shannan Ponton as Brand Ambassador Shannan returned to Series 10 of The Biggest Loser as fitness trainer and mentor. The Biggest Loser continues to be amongst one of the highest rating shows on the Ten Network, with Shannan the most successful Biggest Loser trainer, having trained five of the Series’ winners so far.

Anytime Fitness, Australia’s number one health club, announces the reappointment of celebrity personal trainer Shannan Ponton as their Brand Ambassador. With over 20 years’ experience in the health and fitness industry, Shannan Ponton has acquired extensive experience and knowledge in the areas of exercise, fitness, nutrition, health, people management and the media. Shannan is a well-respected and in demand health and fitness expert having developed and delivered innovative personal training, fitness, motivational and general life solutions to many participants. In 2015,

“After working in the health and fitness industry for more than 20 years and being part of so many massive transformations in people’s lives, I’m still in awe of the resilience of the human body and spirit and amazed at how much and how quickly the body can change with the right diet, exercise and self-belief. I’m eternally grateful for the opportunities I get to transform people’s lives. That’s why my partnership with Anytime Fitness is so strong. It’s all about transforming lives,” says Shannan Ponton. The master franchisors for Anytime Fitness Australia, brother-and-sister team Justin and Jacinta McDonell, commented on the partnership, “Shannan is a great choice for us as a Brand Ambassador because his values and beliefs mirror ours. The Anytime Fitness

Existing staff members take the leap with Fitness Enhancement Fresh off having franchisees start in Melbourne and Sydney, the rapidly growing Personal Training franchise has had two of their own staff members take the leap into being franchisees themselves. Eli King who has worked for Fitness Enhancement for a year has purchased a franchise in North Lakes, North Brisbane. Troy Symons who has been with the company for five years as a Personal Trainer and then Studio manager has also purchased the Beenleigh QLD territory. CEO and founder Scott Hunt stated “every new franchise is extremely exciting for us, but it is extra exciting to have our own staff who know the business inside out also see the amazing opportunity there for the taking.

The fact that they have chosen to leave a good job to take up this opportunity is further evidence of the great direction we’re all heading in” New franchisee and former Studio manager Troy Symons says, “I had a great career working for Fitness Enhancement, but I always had the dream of owning my own business and the rewards that come with being your own boss. Fitness Enhancement was nowhere near franchising when I started with them five years ago, so I was more than content with a great job. However the more successful I saw other Fitness Enhancement franchisees becoming over the last 6 to 10 months; the more I wanted to follow my original dream of owning my own business. Only this time I wanted to do it with the amazing support from Scott and the team.”

38 Business Franchise Australia and New Zealand

brand is all about transforming lives and making a difference. We start with small steps and take bigger ones as soon as we can. Our business transforms the lives of our members, our franchisees, our staff and the broader community through our support for charitable organisations. We are pleased to be partnering with Shannan and are excited about how the Anytime Fitness brand will continue to grow in 2015 and beyond.” Shannan’s new relationship with Anytime Fitness will include the supply of exercise and nutrition programs, a regular column in the Anytime Fitness monthly newsletter, contributing social media content and public appearances. Justin and Jacinta launched the highly successful US franchise Anytime Fitness into Australia in 2008 and there are currently over 400 clubs open throughout the country. With over 2700 clubs and 2 million members worldwide, since Anytime Fitness launched into Australia in 2008 it has become the quickest growing segment of the world’s fastest growing fitness chain.

Celebrating creativity and passion at Hairhouse Warehouse The powerhouse of hair Hairhouse Warehouse (HHWH) recently held their annual convention at RACV Royal Pines Resort, Gold Coast QLD. Bringing together franchisees, store managers and staff from across the country, the three day event included keynote speakers, a presentation of the upcoming Christmas campaign, supplier expo plus the highlight of the convention, the gala dinner, announcing the HHWH 2015 Award Winners. HHWH speakers included CFO Michael O’Connell, Marketing Communications Manager Anni Lattouf and MD Emad Nayef, with a keynote presentation from Clint Paddison, who delivered an inspirational and very personal account of his journey with Rheumatoid Arthritis and his family’s dream to improve the life of fellow sufferers. Fellow keynote speaker was Tony Doherty, owner of 6 Doherty’s Gyms and promoter of the Arnold Classic in Australia. Having travelled from Bendigo to Melbourne

in 1994 with nothing but a truckload of broken gym equipment, $250,000 worth of debt, and a dream, Tony shared his inspirational story and also disclosed his secrets for success. However, the true stars of the convention are the franchisees and employees of HHWH. Year Franchisee of the Year (3+ sites) was awarded to Joe Kmaid, DFO South Wharf, Highpoint, Melbourne Central, Spencer Street, Victoria Gardens and Williamstown (VIC) and Franchisee of the Year (1–2 sites) to Greg Banis, Blacktown, Bondi Junction, Chatswood, Rousehill (NSW). Salon of the Year was won by Mt Druitt (NSW), owned by franchisee Paul Banis with Greg and Paul Banis being inducted into the Hall of Fame. Other winners on the night included Ross and Kyle Britton; Nic Nayef and Melissa Sciberras. “Dream big – you have every right to success.” Tony Doherty

Melissa Sciberras

Australia’s fitness industry elite revealed at annual awards Australia’s fitness industry elite have been recognised at Jetts’ annual conference. The annual event, held on Saturday 29 August, celebrated the leading 24/7 fitness group’s best in health and fitness across the country. Award recipients were recognised across six categories on both a state and national level. Each category was judged on a range of criteria including business performance, club culture and appearance, customer service, member feedback and excellence in other operational areas within each club. The national winners were as follows: Business Owner of the Year: Susan Chau, WA Club of the Year: Northcote, VIC New Club of the Year: Doncaster East, VIC Club Manager of the Year: Shannon O’Loughlin, Jetts Annerley QLD Personal Trainer of the Year: Amanda Brown, Jetts Kingsway NSW Making a Difference in the Community: Jetts Mandurah, WA With the addition of winners crowned across each state, there were 30 winners chosen on the evening. Elaine Jobson, Jetts General Manager, said: “At the end of the day it’s the way our people make our members feel that determines the

success of Jetts. We want every community to be better for having a Jetts in it and the contribution of our Business Owners, Club Managers and Personal Trainers is paramount to us delivering on that vision. “Our people help us to inspire our members to live a better life. We are passionate about making our clubs as accessible as possible from when a member first walks through the door to when they finish their session. We have some fantastic people running our clubs across the country and I’d like to congratulate all of our winners and thank them for the hard work they put in every day.”

Business Franchise Australia and New Zealand 39

FE ATURE: H ealth, Fitness & B eau t y

the

d o o G l e e Ffactor in franchising

â&#x20AC;&#x153;If you already love to spend time at the gym, enjoy exercising and living a healthy lifestyle, then that passion for the industry will be a great backbone for building a successful business.â&#x20AC;? 40 Business Franchise Australia and New Zealand

FE ATURE: H ealth, Fitness & B eau t y Health, fitness and beauty franchises are attractive businesses that are guaranteed to make you feel good!

undertaken - found that nearly two-thirds (63 per cent) of the population are now classified as overweight or obese. Men are more likely to be overweight or obese (70 per cent) than women (56 per cent) while one quarter (25 per cent) of our children are overweight or obese.

Whether you simply want to join these booming industries for the financial returns or you enjoy a healthy lifestyle and keeping fit, then look no further than franchising to provide you with a multitude of exciting business opportunities. Franchising has proven to be a fantastic format for successful businesses across these growth areas. People are becoming more aware of the benefits of maintaining a healthy lifestyle, and have the desire to take better care of themselves than ever before. The health, fitness and beauty industry covers an enormous choice of businesses, ranging from gyms to spas, to hairdressers and a wide range of beauty services including nails, hair removal, and male grooming. Keeping in shape, being healthy and wellgroomed can make you feel vibrant and attractive, on the inside and out. Fit and healthy people radiate happiness, self-confidence and vitality. Likewise, owning a customer-focused franchise that helps to promote a sense of wellbeing and happiness can be just as rewarding, not to mention lucrative!

Expanding waistlines

With these staggering figures, it’s no wonder that fitness franchises have experienced rapid growth over recent times. Two of the top three on BRW’s fast franchise 2014 list are fitness outlets with Jetts Fitness at number two, and Anytime Fitness coming in third. Indeed, five of the top ten are health, fitness or beauty related with the top ranking taken by beauty based franchise Laser Clinics Australia. Many franchised gyms, in varying formats, have experienced similar success in recent years.

Improving your bottom line In recent years, franchised gyms have experienced outstanding success as people become more and more aware of the importance staying active and looking after their physical wellbeing. Added to the mix are 24 hour gyms - catered specifically for our busy lives, single sex gyms and more - and you have a sector of franchising that has boomed across the country and the world.

Check out the figures

The number of people who are overweight in Australia continues to rise according to the Australian Bureau of Statistics.

A report released by IBISWorld states Australian fitness industry revenue of $2.9 billion and estimated to reach, over the next five years, $3.4 billion. Australians are expected to spend:

The 2011-12 Australian Health Survey - the largest check up on the nation’s health ever

• about $1.7 billion on gyms and personal training;

Business Franchise Australia and New Zealand 41

FE ATURE: H ealth, Fitness & B eau t y

owning a customer-focused franchise that helps to promote a sense of well-being and happiness can be just as rewarding, not to mention lucrative!

• about $380 million on weight-loss services; • about $292 million on dietary supplements; and • about $121 million on surgery. The Australian Fitness Industry Report 2012 (by Deloitte Access Economics for Fitness Australia) highlights some key statistics: • Among Australians, aerobics, fitness or gym workouts are now the second most popular physical recreational activity after walking. • Over four million Australians participate in fitness industry activities. • Users are typically female (42 per cent) and younger (25-34 years).

Just about every aspect of the beauty industry is covered by franchising. From teeth whitening to cosmetics, hairdressing, manicures and pedicures, massages, waxing, tanning, and all the beauty products to keep you looking great, there’s a business opportunity out there for you. Perhaps you have been a beauty therapist working out of a salon for many years; now may be the right time to build your own business based on a tried and tested successful formula offered by a franchise. According to an IBISWorld report (Hairdressing, Beauty Salons Market Research Report) key success factors for operators in the industry include:

• The biggest increase in users was from the 45-54 year age group.

• Having links with local health professionals. Beauty salons can benefit from client referrals from local doctors and dermatologists.

• Looking forward, participation will continue to increase exponentially with total demand increasing to 7.15 million users by 2020.

• Use of specialist equipment or facilities. Having specialist equipment enables salons to provide value-added, higherpriced services.

Big business The beauty business is big business. These days, people are spending more money on beauty than ever before, and the industry is constantly growing and evolving. Women have always loved to be pampered and preened, and now with ‘man-scaping’ rising in popularity it’s men too who like to be buffed and waxed – not just their cars!

• Proximity to key markets. It is an advantage to be located in a high profile, preferably wealthy area with significant passing pedestrian traffic and easy parking. • Having a loyal customer base. It is important for a salon to build up a base of satisfied clients, to ensure repeat visits and attract new customers through good word-of-mouth.

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• Ability to control stock on hand. Controlling stock levels, particularly hair-care and beauty products, is important to maintain the liquidity and cashflow of the business. • Superior financial management and debt management. Financial and business management skills are vital to ensure cashflow and the survival of the salon. • Access to highly-skilled workforce. A salon depends on the skill of its hairdressers and/or beauticians. Maintaining and updating skills is important to stay abreast of new hair styles and beauty treatments. • Marketing of differentiated services. Salons can move away from price based only competition by offering quality, value-added and higher priced services.

An alternative approach Alternative health therapies are also becoming increasingly popular among people searching for alternatives to prescription medicine, which has resulted in an increase in the popularity and use of herbal remedies in recent years. Financial figures showed the sector, which includes Chinese medicine, acupuncture and other therapies to grow by around six per cent per annum over the next five years. According to the Australian Trade Commission; “The Australian natural (complementary) healthcare industry has domestic sales of over $1 billion per year.

The Australian industry continues to grow to meet these requirements. Already attuned to alternative approaches to health, discerning baby boomers (Australia’s largest population group) increasingly demand greater choice and adopt a preventative healthcare approach to maintaining healthier lives. In Australia, the fastest growth areas are nutritional oils, men’s health and eye health.

Making the right choice The decision to purchase a franchise is no doubt a difficult one, and with so many successful offerings out there on the

market, how do you decide which one is right for you? Passion for the industry is an obvious must. Franchisors are looking for people who are passionate about what they will be committing a large part of their lives to. If you already love to spend time at the gym, enjoy exercising and living a healthy lifestyle, then that passion for the industry will be a great backbone for building a successful business. Becoming a franchisee could be a great step towards improving your lifestyle. Once you’ve done the hard yards in establishing the business it could give you more opportunity for flexibility to work around family life, or other commitments.

Is the price right? Once you have made the decision about which industry is right for you, the next step is working out whether you can actually afford it! You must then get with your franchise

Alternative health therapies are also becoming increasingly popular among people searching for alternatives to prescription medicine.

banker and put together a realistic sum of money you can afford to put into this new venture. This will most likely weed out some systems quite quickly – as the larger, more well-known fitness names come with a hefty price tag. They are strong, tried and tested and have proven success stories – but you must truly be able to afford to buy into them. Once you have an amount in mind, you can begin to shop around. You will be able to narrow down your search, but don’t rush. If you get to your shortlist, it is time to direct all your attention to the franchise system and the franchisor.

Know your franchisor The franchisor holds the key. The management system, the operational procedures, the leasing agreements, the contracts, and the fees have been generated by the franchisor. Check the franchisors background – is it solid? Meet with him or her. Do they seem to be a person of integrity? Do they answer all of your questions openly and honestly? Do they invite you to do your own investigations into the company? Are they eager for you to talk to existing franchisees? If at any point you feel pushed, rushed, bullied or even ignored by the franchisor – it is time to consider walking away. Hopefully though, the franchisor will be professional, honest and open. The next step is to meet with existing franchisees. While it’s fine to have all the manuals in place and have the franchisor tell you how great and successful the business may be, it’s the franchisees that have the real story. Visit them in their place of business, ask questions, and ask their employees if they enjoy working there.

The hard work begins! Once you have made the decision to purchase your franchise then the hard work really begins, and that’s where your passion and drive to succeed will be vitally important. So if being healthy, looking great or keeping fit is something that will get you out of bed every day, ready to work hard at growing your business then perhaps a franchise from one of these exciting growth areas is the one for you!

Look out for our next special feature:

The Price is Right Business Franchise Australia and New Zealand 43

FE ATURE: H ealth, Fitness & B eau t y

Market research shows that the popularity of natural healthcare products is increasing with a growth rate of seven per cent year on year. Three-quarters of Australians, including 92 per cent of women aged 2024, take at least one dietary supplement and a quarter of the population visit complementary healthcare practitioners each year.

FE ATURE: H ealth, Fitness & B eau t y

E x p er t Ad v ice

Secrofetsa

successful franchise business Did you know in 2013 the market for anti-aging products and services grew into a global industry valued at an estimated $261.9 billion? This went up from $162 billion in 2008 according to BCC Research, a publisher of technology market research reports based in Wellesley, Mass. In 2015/2016 we expect to see an annual growth of 18 per cent - this is fantastic news for anyone working in this space and provides massive opportunities for franchisees.

If you are interested in establishing a new business or converting to a successful franchise business model in the aesthetics or cosmetic industry, now is a great time to invest. A franchise provides an established business model which enjoys widespread brand-name recognition due to its association with proven treatments methods and service products. A franchise business can also offer significant opportunities and benefits including: • Proven business concept and operating model; • Established operating policies, procedures and standards; • Lower statistical risk of failure and easier to obtain finance than starting a new

44 Business Franchise Australia and New Zealand

business alone; • Profitability through established brand equity and centralised marketing of the franchise; • Shared marketing costs; • Established customer base; • Ongoing training; • Increased buying power; • Head office support; • Assistance with problems which may arise from time to time in the course of business; and • A team approach to business growth. Australian Skin Clinics’ strong history has enabled us to hone our skills, system

Deb Farnworth-Wood | Founder and Managing Director Australian Skin Clinics

and business model. Our forward thinking mentality and organisational culture of innovation and excellence, has seen the company grow rapidly since opening our first franchise clinic just four years ago. So what is the secret to running and maintaining a successful franchise business?

1. Look for a business model that is positioned for rapid and substantial growth With consumer spend on cosmetic procedures and related treatments in Australia at over $1 billion, the mediaesthetics industry is well positioned for considerable growth over the next 12 months. Of all cosmetic procedures, antiwrinkle injections, cosmetic and dermal fillers, laser and IPL are on top of the list. Given that it is estimated that only one per cent of the population have experienced cosmetic injectables, the potential in this market is guaranteed to continue to grow.

2. Find a franchise that you are passionate about and one that has a strong brand image Australian Skin Clinics was founded over nineteen years ago in 1996 and has maintained and continued to build upon its already recognised and trustworthy brand foundation. A modern franchise business will understand that brand image and reputation is just as important as the high quality goods or services it provides to the market. This has, and continues to be a powerful asset to both the franchisor and franchisee.

3. Simple, strong and forwardthinking system With any business you need to have solid

systems that are maximised for efficiencies. Unfortunately this is not often fully established in many businesses, who choose to develop their policies progressively as the business evolves. This can take many hours of hard work and can be a costly exercise. Choose a business model that has everything in place eliminating this headache. These solid systems could include: o Centralised and integrated computer systems and software; o Systemised accounts and payroll; o Benchmarking and performance management systems; o Simplified administrative requirements allowing time to focus on the performance of the business; o Communication, training and compliance portals; and o Medically-approved treatment protocols for all services.

4. Ongoing training programs Ensure the franchise business you choose has a heavy focus on training and compliance at the highest standard. This will not only allow you to up-skill, but will also ensure you and your team continue to grow professionally. Training is one of the unique selling points of Australian Skin Clinics. Founded in Queensland, the company commenced operation in one of the most highly regulated states for laser licensing in Australia. As such, the company made a commitment to develop standards that aimed to exceed these requirements to ensure the highest quality service standards were set for the benefit of the client, setting the benchmark in the industry. Despite other states, including Victoria and New South Wales having

no licensing regulations, Australian Skin Clinics enforces its training standards and protocols across all states to ensure consistent and high quality service is delivered across the brand.

5. Strong support by professionals Investigate the network and ensure the franchise has a strong support system in place for franchisees. While some businesses aim to reduce expense by minimising support personnel, a successful franchise business will embrace the importance of setting a strong foundation and providing quality service to franchisees and thus clients. Deb Farnworth-Wood is the founder and Managing Director of the Australian Skin Clinics franchise. She is an MBA graduate with incredible vision and passion for the aesthetics industry. While she has 20+ years’ experience in the management of large, complex and multidisciplinary health care organisations, she also has significant experience in the multi-outlet retail sector. Founded on the Gold Coast in 1996, Australian Skin Clinics is one of Australia’s original laser and skin rejuvenation clinics. Launched in 2011, the franchise company has achieved rapid expansion due to its successful business model and growing consumer demand for its services. Australian Skin Clinics’ mission is to make its customer’s look and feel fantastic about themselves. If you would like to learn more about becoming a successful franchise business owner please visit: W: www.ozskin.com/franchise

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FE ATURE: H ealth, Fitness & B eau t y

“A modern franchise business will understand that brand image and reputation is just as important as the high quality goods or services it provides to the market.”

FE ATURE: H ealth, Fitness & B eau t y

H y pox i

WELCOME TO THE FUTURE HYPOXI Australia launched its first studio in Sydney, Australia in 2005 and health and image conscious Australians quickly embraced the concept. The HYPOXI network has since grown to 84 studios across the country, and HYPOXI Australia is proud to celebrate its 10 year anniversary this year. In 2012, Goodlife Health Clubs, one of Australia’s largest and most successful full service health club chains, piloted an in-club HYPOXI studio to offer a premium, targeted weight loss service to its members. Based on the success of that first studio, Goodlife developed an in-club studio concept and through its parent company, the ASX listed Ardent Leisure Group, acquired the exclusive distribution rights for HYPOXI in Australia and New Zealand. HYPOXI Australia now oversees and is looking to grow the national network of HYPOXI studios with strong independently owned franchised studios.

TARGETED FAT BURNING Developed by esteemed Austrian sports scientist, Dr. Norbert Egger, a pioneer in the use of weight loss and compression technology, HYPOXI is a globally

proven and trusted exercise and targeted weight loss method. Since launching in the European market in 1997, HYPOXI has helped people fine tune their bodies, expanding its presence to more than 50 countries. HYPOXI combines low impact exercise, healthy nutrition and vacuum and compression therapy to target stubborn fat in problem areas. Scientific studies have proven HYPOXI to be up to 3 times more effective than traditional exercise at targeted fat burning.

Each franchisee’s journey is individually tailored to them, dependent upon their background, experience and whether or not they have previously owned a business. All prospective franchisees, if they haven’t already, are encouraged to undergo their own HYPOXI journey because seeing first-hand how the technology works and developing that belief in the technology is an essential part of the process. By undergoing their own HYPOXI journey, each franchisee has their own story to share when they open their studio.

A one on one experience, clients undergo an initial consultation and assessment and are introduced to the technology. Based on a number of factors such as age, fitness level, skin tone and texture, muscle density etc a personalised programme, incorporating 30 minute treatment sessions, is prescribed based on the client’s core problem areas.

There are two different franchise options available, a studio within a fitness centre or clinic or a standalone HYPOXI studio. A standard HYPOXI studio concept which typically consists of 3 HYPOXI devices as a starting point, appeals to many prospective franchisees because it’s low on staff overheads as the owner/operator can operate the business on their own.

Completing on average, a four week programme, with 12 dual sessions, clients can lose a dress or pant size in the core area targeted.

GOING STATESIDE

JOIN THE GROWING NETWORK Under Ardent’s ownership and investment in the brand, the HYPOXI network has experienced a phase of rapid growth, cementing the brand’s presence as a leader in the targeted weight loss sector. Franchisees are considered to be business partners and must possess a passion and genuine desire to help people. No formal qualifications from the health and beauty industry are required as all business and HYPOXI product training is provided. Franchisees come from a variety of professional backgrounds.

46 Business Franchise Australia and New Zealand

Due to the success of the Australian network, Goodlife now holds the exclusive distribution and franchise rights to North America and Canada, and is taking its HYPOXI studio concept to the USA. HYPOXI USA will open its first two studios in Scottsdale and Phoenix, Arizona in October 2015, with plans to then launch its HYPOXI franchise concept nationwide. In addition to independent franchise operators, HYPOXI USA will target health club chains who are looking to add a premium point of difference or convert underutilised club floor space into a profitable studio. For more information contact: www.hypoxi.com.au/start-a-franchise

Give yourself the technological advantage and invest in a globally recognised brand and studio concept. The HYPOXI-Method combines low impact exercise with advanced technology and healthy nutrition to target stubborn areas. HYPOXI is a simple, low cost, low staff business model that delivers strong revenue opportunities for franchisees and measurable results for clients.

HYPOXI.COM.AU/START-A-FRANCHISE Business Franchise Australia and New Zealand 47

FE ATURE: H ealth, Fitness & B eau t y

Just Cu ts™

JUST A GREAT STORY It’s been a busy year for Just Cuts™ - along with celebrating our 25th anniversary in the franchising business and the second birthday of our exclusive haircare and styling range, JUSTICE Professional™, we’ve just cut the Grand Opening ribbon on our 12th new salon for the year. And that’s not including any of our salon refurbishments. But behind all the numbers is just a great story; it’s about one man with a simple idea that would change the hairdressing industry forever. 48 Business Franchise Australia and New Zealand

Just Cuts™ was the brainchild of Denis McFadden, who, back in 1982, owned a hairdressing salon with only six months until his lease ran out. Always one to make the most of every situation, he decided to run a promotion and offered all clients a “no appointment, $6 Style Cut” to boost business. The response was outstanding, and the idea of Just Cuts™ was born. The following year, the inaugural Just Cuts™ salon opened its door to the public. In 1990, the first Just Cuts™ franchise opened in the suburb of Engadine, in the south of Sydney. And we’ve continued to expand ever since, with over 190 locations

Turn your dreams into reality with Just CutsTM If you’ve ever dreamed of owning your business, look no further...At Just CutsTM, it’s all about you. We believe in making things easy, comfortable and convenient for all our Franchise Owners. As a Franchisee, you’ll enjoy the ease of the Just Cuts™ business model, which has already been set up for you with operational, ordering and marketing systems all built into it. The model has also been fully digitalised with a range of support available online, including an e-learning platform, print marketing ordering system, retail reward program and Point of Service (POS) tools. Our dedicated Academy Team will also guide and support you throughout the whole process of opening your salon, including training, pre-opening assistance, management advice, a comprehensive Operations Manual and a bespoke Grand Opening marketing campaign. On top of this, you’ll get all the ongoing support you need from the Team, who will provide you with any business, operational and marketing guidance that you need once we’ve got you up and running.

in Australia and New Zealand now open. That’s an average of one new salon every six weeks! Just CutsTM has grown to be the largest hairdressing company in the southern hemisphere, and we perform over 80,000 Style Cuts™ cuts each week. We believe that this success comes down to our franchise model, which has been tried, tested and refined over the past 25 years of business. In 2013, we answered the calls of our Clients and launched JUSTICE Professional™ – a range of salon quality, paraben free haircare and styling products available exclusively in all our salons at a

competitive, affordable price. Our line has something for everyone, including every day shampoos and conditioners, antidandruff and dry scalp treatments, toning products, nourishing leave-in treatments and a range of hair styling waxes and sprays. We scoured the globe for the finest ingredients on offer and have consulted with hair experts worldwide to create a line of products made by hairdressers, for our Clients, so they can now experience a professional salon finish from the comfort of their homes.

As a business owner, this means you don’t need to worry about how to best develop a system to ensure your customers leave satisfied. You don’t need to worry about creating training programs for your staff, or nailing down operational processes for accounts and stock inventory. All this is packaged up for you for you when you move into your salon, providing you with the fundamentals you need to get your business up and running smoothly. We’ve tried, tested and refined this system over 25 years of business in franchising – that’s why it just works and is continuing to work, despite challenging retail conditions. It’s no wonder why almost half of Just CutsTM Franchisees own two or more salons each.

Business Franchise Australia and New Zealand 49

FE ATURE: H ealth, Fitness & B feature eau t y

“At Just CutsTM, it’s all about you. We believe in making things easy, comfortable and convenient for all our Franchise Owners.”

FE ATURE: H ealth, Fitness & B eau t y

Just Cu ts™

“I opened my first Just Cuts™ franchise six years ago and it’s been so successful that I now own eight salons! I was previously a Stylist, but decided to stop cutting so that I could spend more time with my wife and children. I’ve never had a better work/life balance and now I work when it suits me! The Just Cuts™ head office Academy Team give me all the support I need and my 60 Stylists are great. I enjoy working with my team and running my own business is truly rewarding.” - Oliver Adams, Owner of 8 JUST CUTS™ salons in Australia

“Just CutsTM has grown to be the largest hairdressing company in the southern hemisphere, and we perform over 80,000 Style Cuts™ cuts each week.” JUST SOME OF THE BENEFITS OF OWNING A JUST CUTSTM SALON • Enjoy the stability of fixed franchise fees • Become a part of an established homegrown brand with greater brand public awareness • Share a common pool of resources, ideas and information • Benefit from shared marketing costs • Increased flexibility and work/life balance • Grow your salon by tapping into an existing network of suppliers, Clients and contacts • Combine security with independence

50 Business Franchise Australia and New Zealand

• Receive ongoing training and operational support • Save time, effort and money with the guidance of our marketing experts • Take time to work on your business, not just in it. Want to find out what Just CutsTM can do for you? Just contact our Business Development Manager, Luke Manning, for a friendly, obligation-free chat today. P: 0439 130 499 W: justcuts.com/franchising Follow Just Cuts Franchising to stay up-to-date with the latest Just CutsTM corporate news.

Resources at your fingertips! Current titles include: Business FRANCHISE Australia and New Zealand magazine The Magazine for Franchisees, Bi-monthly publication The Australian and New Zealand Business FRANCHISOR magazine The Magazine for Franchisors, Quarterly publication Australian and New Zealand Business FRANCHISE DIRECTORY Annual publication The FRANCHISE GUIDE Annual publication CGBâ&#x20AC;&#x2122;s website also provides an additional advertising and information format and complements our publications.

www.businessfranchiseaustralia.com.au

FE ATURE: H ealth, Fitness & B eau t y

E x p er t Ad v ice

g n i s i t r e v d A ON A LEVEL PLAYING FIELD In an industry accustomed to pushing the limits to be healthier, fitter and faster, it might also be tempting to stretch the truth in advertising to win new customers. However, recent actions by the Australian Competition and Consumer Commission show this strategy is fraught with danger if you can’t back up your claims. Under the Australian Consumer Law it is illegal for a business to engage in conduct that misleads or deceives consumers, or which is likely to do so. It’s also unlawful for a business to make false or misleading claims about their goods or services.

Advertising and franchising Usually franchisees contribute to a marketing fund, with the franchisor taking responsibility for designing and implementing promotional campaigns. That said, it’s still important that franchisees also know where they stand, since the law applies to all promotional activities–including your own. The law extends to everyday consumer interactions like displaying prices, social media, online reviews as well as things you and your staff promise to customers.

“Think about the overall impression created by your advertising. How would the average consumer view your headline claims?” Fair game Rules around honest advertising are important for two reasons. Clear and accurate advertising allows consumers to make informed purchasing decisions, which is especially important when it comes to health and well-being. Truthful advertising also improves competition by giving businesses the opportunity to compete on their merits, not by cheating. The ACCC has taken a string of actions to ensure these objectives are realised in the health and fitness industry.

‘No Contracts’ We have warned gyms about using the phrase ‘No Contracts’ in advertising where consumers were required to sign membership contracts with conditions for termination and payment. We found ‘No Contracts’ advertising is an attempt by some gyms to distinguish their shortterm membership from gyms which offer long-term memberships. However, using the phrase does not provide consumers with clarity about this distinction. The lesson here is to think about the overall impression created by your advertising.

52 Business Franchise Australia and New Zealand

How would the average consumer view your headline claims? Have you left out or hidden important details in the fine print? Are there any contradictory statements or unnecessary jargon? Do logos, symbols and pictures create the wrong impression?

Walk the talk In 2014, the Federal Court ordered Reebok Australia Pty Ltd to pay a penalty of $350,000 for making false and misleading representations about the benefits of Reebok EasyTone shoes. The court found Reebok’s claims that wearing a pair of EasyTone shoes would increase the strength and muscle tone of a person’s calves, thighs and buttocks more than traditional walking shoes were false and misleading. If you make claims that your products have certain performance characteristics and benefits, you have a responsibility to ensure those statements are accurate and supported by credible evidence.

Ab crunch Here’s another example. Danoz Direct Pty Ltd recently acknowledged the ACCC’s concerns about possible misleading claims

Dr Michael Schaper | Deputy Chairman ACCC

made during infomercials for the Abtronic X2. The Abtronic X2 is designed to be strapped around a person’s mid-section, providing electrical stimulation to the muscles. Danoz made claims about weight loss and fitness benefits of the device which it could not substantiate. For example, Danoz claimed use of the device without any other exercise or dietary modifications, will tighten, tone, sculpt and flatten the stomach. To resolve concerns, Danoz has provided undertakings to improve procedures and ensure they can substantiate claims. The outcome is reminder for all businesses to put in place stringent systems to vet and approve promotions.

Skewed reviews Another key thing to know is that the same rules apply online as they do offline. It’s an area of growing importance as e-commerce and online consumer reviews take on more significance. Recently, Citymove Pty Ltd paid $30,600 after the ACCC issued three infringement notices relating to allegations that the removalist company used fabricated customer identities to post testimonials on Google+ and YouTube. The laws also apply to your firm’s social media activities. Using social media such as Facebook, Twitter and YouTube as promotional tools brings with it the responsibility to ensure all content on your pages is accurate, irrespective of who put it there.

Skinny on the facts The laws around misleading claims also protect franchisees. The ACCC took court action against SensaSlim and the individuals involved in supplying an oral spray which they claimed could cause weight loss and was the subject of a ‘worldwide clinical trial’. The spray was distributed through franchisees to be onsold to consumers through retail outlets. The Federal Court found that SensaSlim

(in liquidation) engaged in misleading or deceptive conduct by making false claims about the role of its officers, the ‘worldwide clinical trial’ and the earning potential of franchises. Misleading claims about important aspects of a business opportunity such as earnings can cause significant harm.

Penalties The ACCC has a range of tools to take action against false or misleading claims. We have the powers to require businesses to substantiate their claims and the ability to issue infringement notices. The ACCC can issue an infringement notice where it has reasonable grounds to believe a person has contravened certain consumer protection laws. Infringement notices carry a penalty fixed at $10,800 for a corporation (or $108,000 for a listed corporation) and $2160 for an individual. The ACCC can also resolve matters by accepting court enforceable undertakings and we can seek penalties in the courts of up to $1.1 million per contravention.

Further information For information about the Australian Consumer Law and advertising and selling download a copy of the ACCC’s free guidelines at http://www.accc.gov.au/ publications/advertising-selling For the latest ACCC small business news and events you can follow the ACCC on LinkedIn, or sign up to our Franchising Information Network email updates at http://www.accc.gov.au/media/ subscriptions/franchising-informationnetwork Dr Michael Schaper is Deputy Chair of the Australian Competition and Consumer Commission. W: www.accc.gov.au/franchising

The rules around franchise marketing funds If you contribute money to a marketing or cooperative fund, the franchisor can only spend the marketing fund money on: • expenses that were set out in the disclosure document; • legitimate marketing or advertising expenses; • expenses that have been agreed to by a majority of franchisees; and • administering and auditing the fund. The franchisor must prepare an annual financial statement of all the fund’s receipts and expenses for the last financial year, and do so within four months of the end of its financial year. The statement must provide meaningful information about who contributes to the fund and how the money is spent. The statement must be audited, unless 75 per cent of franchisees who contribute to the fund vote that an audit is not required. The vote must be revisited every year. The franchisor must provide you with the financial statement and auditor’s report (if required) within 30 days after their preparation. When buying into a franchise, it’s a good idea to find out whether you will be able to sell your goods or services online. If you can, will the franchisor impose any conditions? Can the franchisor, its associate, or other franchisees also sell goods or services online? If so, to what extent will the franchisor supply those goods or services in your territory? This information must be set out in your disclosure document.

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FE ATURE: H ealth, Fitness & B eau t y

“Misleading claims about important aspects of a business opportunity such as earnings can cause significant harm.”

FE AT U R E: H ealth, Fitness & B eau t y

B od y O log y

THE LEADERS IN INNOVATION Gwendoline McCracken, a pioneer within Australian franchising, recognised that the cutting edge technology now used by BodyOlogy Franchising was innovative and unique. While operating her successful chain of eyelash stores – which she has since sold – Gwendoline started to import weight loss products from Europe and quickly identified a growing market within Australia and world-wide. In 2010, she started to investigate the different technologies available to aid weight-loss and discovered advanced Medical Grade micro-current technology. Developed in the US, with over 100 world class patents and designed for weight loss solutions, she requested a sample. Within three months of receiving and testing the sample, Gwendoline contacted the company and purchased the worldwide rights. Using her well-honed business skills and franchising experience, Gwendoline, over the last three years, has developed the systems and procedures to roll out this exciting franchise opportunity.

ON A MISSION Gwendoline says, “At BodyOlogy Franchising, we are on a mission, to smash the old myth that you can’t spot reduce. This technology blows people away. “We can spot reduce by 2 - 8 cms in targeted areas. Helping post-natal women to shift fluid, reduce belly bulge in men, or even university students short on time, there is no limit to the number of clients we can work with, all of whom want to build lean

muscle and re-shape their body, without lifting a weight!.“ Losing on average 8 – 10 kilos - sometimes more - and in conjunction with the micro-current technology, on a 10 week programme BodyOlogy Franchising offers clients meal replacements that have been researched and developed to work in conjunction with the micro-current technology.

FLEXIBILITY AND CHOICE The BodyOlogy franchise is for born leaders who know who they are, where they are going and what they want!! Offering a selection of franchise options, franchisees can work from home, sublet within an existing business, have a standalone clinic, use a pop up kiosk or go mobile in your own company branded vehicle. With limited franchisees being selected per state capital, this allows you to purchase multiple franchises if you choose. In the six weeks since the release of the franchise, three territories have been sold, to join the flagship outlet at Docklands, Melbourne. Gwendoline says, “By restricting the number of franchisees per state, this will allow the franchisees to really grow their businesses and by the close of 2016 we expect to have 40+ on board in Australia. “We have already been receiving enquiries from the UK, and now that our trademark is in place, we are expecting that our first UK franchise will be in early 2016.”

TRAINING AND SUPPORT Although the new franchisees in Australia do have a medical background – two nurses and a doctor – no medical experience is required. With comprehensive training in place, as long as potential franchisees have common sense and great customer service skills, it will only be a matter of

54 Business Franchise Australia and New Zealand

Gwendoline McCracken

time before you would reap the rewards of working within your very own business. BodyOlogy do not charge a marketing levy, they simply charge a set royalty fee of 25 per cent. This means franchisees keep 75 per cent of the profits, all while the National Support Office takes away the day-to-day administration and running of the business. With the National Support Office processing all enquiries, bookings, schedules, reporting, Main Stream Marketing and product training plus much more, BodyOlogy franchisees can focus on their business and clients. Flights and accommodation is included for interstate franchisees. BodyOlogy’s experience has taken the science of weight loss to new levels of effectiveness, with clinically proven methods that gain real results, for real people, in real time. With a reduced start-up cost of $59,000 plus GST for a limited time, now is the perfect time to join this marvel of modern science. For more information contact Gwendoline on: P: 0438 245 555 E: info@bodyologyfranchising.com.au W: www.bodyologyfranchising.com.au

Franchising

A marvel of modern science

ENTRY FROM $59K for a limited time

Offering Flexibility & Choices Join the $6.6 billion weight loss industry in OZ GO MOBILE

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BodyOlogy franchising is innovative and unique! Using exclusive cutting edge technology, BodyOlogy has revolutionised the weight loss industry and myths attached to it about spot reduction and building lean muscle without weights, as we can do this and much more.

FRANCHISES NOW RELEASED AUSTRALIA WIDE ENQUIRE NOW 1300 FABABS (1300 322 227) OR 0438 245 555 XXX CPEZPMPHZGSBODIJTJOH DPN BV t JOGP!CPEZPMPHZGSBODIJTJOH DPN BV Business Franchise Australia and New Zealand 55

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H ave Your Say

HELPING YOU

r e t t e Feel B

56 Business 56 Business Franchise Franchise AustraliaAustralia and Newand Zealand New Zealand

My sister Jacinta McDonell & I, with our business partner Richard Peil, launched the highly successful U.S. franchise Anytime Fitness into Australia in 2008. IBIS World report recently ranked Anytime Fitness as the largest health club chain in Australia with over 410 locations currently open and still growing. Since Anytime Fitness’s launch into Australia, it has become the quickest growing segment of the world’s fastest growing fitness chain. Globally there are over 2500 locations and 2.5 million members. Not a bad result for a business that opened its first franchise in the New South Wales country town of Gunnedah in 2008, population 7888. We chose Gunnedah as a test location for the network because the site fit the global business model – it was located next to a supermarket. The rent was also low, allowing a relatively risk-free first foray into the market. Just two months later, we opened a second gym in Wodonga on the New South Wales/Victorian border. Jacinta and I grew up in the fitness industry, with our parents running clubs when we were young. We opened our first club straight after school and have been in the industry since 1992, so this experience is what really cemented the path to our success with Anytime Fitness Australia. When Jacinta and I were considering taking the Master Franchise opportunity for Australia, we looked at two different gym franchises that were already successful in the United States and also considered going it alone. After a lot of research and consideration, the benefits of being able to

access the Anytime Fitness infrastructure, marketing and I.T. support, as well as the name, convinced us to go ahead with the agreement. Since launching Anytime Fitness into Australia we’ve seen the brand go from strength to strength. Proof of this is demonstrated by Anytime Fitness ranking No. 1 on Entrepreneur magazine’s annual Top Global Franchise list this year. Averaging more than 300 new gyms a year for each of the past eight years, Anytime Fitness will soon open its 3,000th franchised unit – in less years (13) than it took other franchising companies like McDonald’s, Subway, 7-Eleven and Pizza Hut to reach that same milestone. Both the 24/7 gym concept and business model was unique to the industry and the Australian market at the time of us signing the Master Franchise agreement. Typically the industry was dominated by larger chains that had everything from juice bars, group exercise classes and crèches. Anytime Fitness gyms provide members access at any hour, with 24 hour entry, state-of-the-art equipment and top notch facilities 24/7. Local franchisees also offer communities an exceptional product at an exceptional price with the added benefit of convenience; clubs are located near to home to make exercise easier for members. Trained staff or franchisees are available during normal trading hours to provide assistance in using the equipment and working with members to identify and achieve their goals. After hours, members can access the gym safely and securely by using their key card. The franchisee can then monitor the gym from anywhere - the Anytime Fitness franchise model was built around the concept of freedom. Anytime Fitness franchisees can run multiple clubs remotely and require low labour, providing them with more free time and a balanced lifestyle. Anytime Fitness’ monthly franchise fees are also low and fixed which allows franchisees to benefit from their own business’ growth. We give franchisees support acquiring property or signing a lease and they also have access to an in-house architect and the business’s support team of 45 people, as

well as ongoing coaching. This business model allows flexibility and autonomy to the clients who use the gym, as well as to the franchisees who own the gym.

Keys to success Our business has provided a solution to health conscious Australians. We set big goals to grow our network quickly and dominate the market in which we operate. We knew we needed to run fast to do this, so we reached for the stars. As to how the business has managed to sustain such stellar growth since it launched, many franchisees own multiple franchises – the top franchisee has ten gyms – which has helped drive expansion. Growth has come from our internal networks and through referrals from existing franchisees. When selecting potential franchisees, we look for a passion for health and fitness, good business acumen or previous sales and marketing experience. If you attend our new franchisee training sessions, you’ll find accountants and personal trainers as well as people who have been involved with other franchises that are attracted to the low-staffing model. We are driven by technology, understanding our members and our consumers and ensuring we keep evolving and keeping our products and service offerings fresh because we’re very conscious that the product needs to keep evolving and be around long term. Anytime Fitness Australia will continue to offer an exceptional product in convenient locations, allowing easier access for members to achieve their health and fitness goals. We plan to continue to expand our already extensive club network, with more new club openings scheduled in all states throughout the rest of the year. Open 24 hours a day, 365 days a year, Anytime Fitness prides itself on providing members with convenient and affordable fitness options in friendly facilities which feature top-quality exercise equipment. Justin and Jacinta McDonell grew up in the fitness industry, with their parents running clubs when they were young and opened their first club straight from school. This experience cemented the path to such success with the Anytime Fitness franchise. www.anytimefitness.com.au/franchiseopportunities

Business Franchise Australia and New Zealand 57

FE ATURE: H ealth, Fitness & B eau t y

“Anytime Fitness Australia will continue to offer an exceptional product in convenient locations, allowing easier access for members to achieve their health and fitness goals.”

FE ATURE: H ealth, Fitness & B eau t y

B ra zilia n B u t ter f l y

THE METAMORPHIS OF BRAZILIAN BUTTERFLY to work 24/7 and prefer the elusive work/ life balance, Brazilian Butterfly is not a ‘cookie-cutter’ franchise. Adam says, “We’ve completely modified the way we do business. Offering vendor finance; we have a number of different partnership models - it depends on the individual franchisee. It’s about them and their particular circumstances, what they are looking for and how we can create a legitimate partnership. We provide assistance for everything - from finance, operational support, marketing, social media, design as well as much more.”

In the role of CEO for 12 months, Adam Simon and his team, in collaboration with the board of directors and founders Scott and Tanya Farrar, are tasked with transforming the brand, taking franchise system Brazilian Butterfly into the future. With more than 20 years’ global experience across sales, franchising, human resource management and finance, Adam’s immediate responsibility has been to foster a National Support Office culture, and transition from simple Head Office into a National Support Office; redevising the way the departments interact and hiring key personnel specifically for the task at hand. Adam says, “Moving away from having people that traditionally have been wearing multiple hats; we’ve hired specialists to work within the National Support Office to fundamentally support our franchisees in what they want to achieve.”

FUTURE GROWTH With 33 salons nationwide, Brazilian Butterfly are focusing on interstate growth as well as regional Victoria.

Recognising the landscape is changing in franchising, the business is moving and moulding on a daily basis. Attracting over 40,000 new clients a year nationally, “We are making informed decisions about how we move forward, in a way that’s going to benefit the whole brand as one as opposed to one individual above another,” Adam states.

In the 12th year of franchising, Adam says that they only progress a small number of their enquiries through to the application stage. “It’s extremely important that we partner with the right people that are customer service focused and not just interested in the significant profits that the brand achieves”.

OWN YOUR OWN BRAZILIAN BUTTERFLY SALON

“Our franchisees come from all walks of life. We have accountants, sales managers, beauty therapists and everything in between. The one thing that’s pivotal to our success within all our salons is that the franchisees are customer service focused; we can teach them how to run a business, we can teach them how to wax but we can’t teach them to be focused on the end user, which is the fee paying client.”

By joining one of Australia’s largest and most successful beauty salon franchise groups, you have access to the Brazilian Butterfly professionals who can advise you every step of your journey, you just have to be committed, driven, customer service focussed, passionate, and have the desire to succeed.

Dedicated to growing the number of franchise salons; Brazilian Butterfly offer a number of different models. While some franchisees prefer to work within the salon all day, every day they are open, some franchise partners prefer the hands-off approach and install management. Aware that not all franchisees get into business

58 Business Franchise Australia and New Zealand

Brazilian Butterfly can give you all the tools and support you need to be your own boss.

If you’re serious about a new start, join Adam and his team on their exciting journey into the future. For more information contact: T: (03) 9756 9700 E: franchise@brazilianbutterfly.com W: brazilianbutterfly.com

SMOOTH OPERATORS WANTED! Be your own boss with Brazilian Butterﬂy, Australia’s favourite & most successful beauty network.

Find out more today! brazilianbutterﬂy.com/franchise Business Franchise Australia and New Zealand 59

FE ATURE: H ealth, Fitness & B eau t y

E x p er t Ad v ice

t r a t S Kick your workplace relations routine It is easy to put off starting a new health kick despite good intentions. We all know that following through with our goals can be tough, particularly if you donâ&#x20AC;&#x2122;t know where to start.

laws, but sometimes find the process overwhelming. However, we know that the consequences of not applying a healthy regulatory regime can be disastrous. It can also have serious implications for your brand.

At the Fair Work Ombudsman we see the same - many small business owners and franchise operators have the best of intentions. They want to understand and comply with Commonwealth workplace

In our information and digital-driven world, consumers are more powerful now than ever. Social media has enhanced our capacity to inform ourselves about our choices, of which there is no shortage.

60 Business Franchise Australia and New Zealand

As a franchisee the reputation of your brand is one of your most valuable commodities. You should do everything you can to ensure that your brands positive image is maintained.

Why is this important?

FE ATURE: H ealth, Fitness & B eau t y

“Negative media coverage can result in consumers making a conscious decision to take their business elsewhere, impacting your bottom line.” Lynda McAlary-Smith | Executive Director of Proactive Compliance and Education Fair Work Ombudsman

Unfortunately not all publicity is good publicity. Negative media coverage can result in consumers making a conscious decision to take their business elsewhere, impacting your bottom line. It is important to protect the reputation of your brand, and to position your business as an employer of choice. This will help you to ensure that this doesn’t occur.

What steps can you take? The last thing you want to see is your brand in the media for the wrong reasons. One way to protect yourself from this is to put in the time and effort to ensure that compliance with workplace obligations is the norm in your franchise business and not the exception. As a member of the franchisee community it is important that you take a best practice approach in regards to your workplace relations obligations. Doing so will allow you to set an example that can be followed by others in your franchisee network and will help you to position yourself as an employer of choice. Further, both you and your franchisor can play a major role within the industry in setting the competitive and lawful employment conditions for employers at the smaller end of the industry structure. This is particularly important as these smaller businesses often do not have access to a head office for support and guidance. To ensure that you are compliant you first need to know what your workplace obligations are. You need to: • Know the correct rates of pay for your

staff and if penalty rates and overtime are payable; • Be aware of what employment records need to be kept and make sure that they are up to date and accurate; • Understand what leave and breaks your employees are entitled to and ensure that they receive them; and • Know how to end an employment relationship and what, if anything, your employees might be entitled to if you do. Once you have this information, you should openly discuss with your staff what this means for them. Creating a well-informed workforce can help to increase employee engagement and reduce the likelihood of workplace disputes. This is because your employees will feel comfortable discussing their entitlements directly with you. By putting time and energy into your workplace relations obligations, you are not only investing in good relationships with your staff, but also giving your business the best chance for success. If you are aware that others within your franchisee network aren’t complying then you should let your franchisor know. Reputational harm damages all the players in your franchise space including your franchisor, so at the Fair Work Ombudsman we expect them to take an active role in ensuring compliance across their franchisees and the industry.

How can the Fair Work Ombudsman help you? At the Fair Work Ombudsman, we know that there is a lot you need to understand

and consider when operating a franchise business. However, we also know that making sure your business is compliant with workplace laws may not always appear to be a high priority. However, by not factoring in the correct entitlements into your business model you run the risk of facing unexpected wages costs that can sometimes be staggering for small business. To put this into context, between July 2010 and April 2015, the Fair Work Ombudsman recovered over $2.2 million for 1700 workers within the Hair and Beauty industry. To assist you with starting your new routine and to make compliance easier, we have developed a number of tools and resources designed to assist you and the significant number of employees employed within franchise businesses.

Pay and Conditions Tool (PACT) PACT, our pay and conditions tool is designed to give you access to reliable advice on wages and entitlements on-thego. It can help you to locate the correct Modern Award for an employee’s position and quickly determine what wages apply, including overtime, penalty rates and allowances. The tool can also be used to assist with the calculation of apprentice and trainee rates of pay. In addition to wages, the PACT can also help you with calculating an employee’s entitlement to annual and sick leave as well as notice and redundancy. You can access PACT from the Fair Work Ombudsman website at: www.fairwork.gov.au/pact.

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FE ATURE: H ealth, Fitness & B eau t y

E x p er t Ad v ice

“As a member of the franchisee community it is important that you take a best practice approach in regards to your workplace relations obligations…to position yourself as an employer of choice’”

These courses have been designed to provide you with practical advice and assistance on core workplace topics including managing difficult conversations, hiring employees and managing performance. We have also developed an online course called ‘Starting a new job’ that will help your young employees understand their rights and obligations in the workplace. To access our online training, go to www.fairwork.gov.au/learning.

Workplace Basics Our Workplace Basics quiz contains seven modules designed to test your knowledge about everyday workplace issues including pay and awards, leave, record keeping and termination. At the end of each module, you’ll be provided with a customised list of links to relevant resources and information. The Workplace Basics quiz can be accessed at www.fairwork.gov.au/basicsquiz. Why not take the test and see if you are achieving your goals of being a proactive, fully compliant franchise operator.

Where can you get further assistance? If you do need further assistance understanding your rights and obligations under the Fair Work Act, you can contact us via www.fairwork.gov.au or during business hours on 13 13 94. You should also speak to your franchisor to discuss the type of support that they can offer to ensure that you are well prepared to meet the demands of your business and your obligations to your workers.

My account My account allows you to create your own personalised account within the Fair Work Ombudsman’s website. By registering for My account you can get priority support from the Fair Work Ombudsman. You can also save results from PACT, bookmark your favourite pages, ask questions and save our replies. When you register, you will be asked

to provide information about yourself including your industry. This information allows us to tailor information for you. To create a My account, go to www.fairwork.gov.au.

Online training One of our most popular resources is our online learning centre, which contains free and interactive courses for employers, employees, supervisors and managers.

Lynda McAlary-Smith is the Fair Work Ombudsman’s Executive Director of Proactive Compliance and Education. Lynda’s branch is responsible for proactively assisting Australian workplaces and educating them about their workplace rights and obligations. The Fair Work Ombudsman is an independent statutory office responsible for ensuring compliance with Australia’s workplace laws and promoting harmonious, productive and cooperative workplace relations. T: 13 13 94 W: www.fairwork.gov.au

62 Business Franchise Australia and New Zealand

Fran

Franshise_Ad_185X272_OL.indd 1

31/07/2015 5:15 pm

FE ATURE: H ealth, Fitness & B eau t y

E x p er t Ad v ice

- by Ca m e ro n C o o p e r

How to navigate your franchise options and hit the road to

s s e c c u S

Two former corporate executives share their experiences about evaluating and investing in a franchise system – and they outline some lessons that have helped them flourish. A lot has to go right for a franchise business to succeed. The right industry. The right time. The right city. The right people. In Australia, where franchising is omnipresent, choosing a target market can be a make-or-break exercise for potential franchisees. Silvio Del Vecchio understands the gravity of the decision and can rest easily in the knowledge that he got it right. As franchise owner of Laser Clinics Australia clinics at Erina Fair on the

“The thing that I love about this business is that people come in, they have their treatments and leave feeling good about themselves. And that makes me feel happy as a business owner.” - Micky Bittoun

64 Business Franchise Australia and New Zealand

Del Vecchio is achieving those goals with Laser Clinics Australia, a franchise that since its launch in 2008 has grown into a 50 plus clinic operation that made the BRW Fast 100 list in 2014, and placed 1st in the BRW Fast Franchise 2013 rankings. “I love having my own business and feeling like I am in control of my own destiny,” Del Vecchio says. “I work harder today than I’ve ever worked and I love to challenge my own boundaries – to keep testing new ideas, to keep learning, to keep growing as a person.” Del Vecchio says the experience of running his first clinic at Erina Fair, which opened in 2011, has been instrumental in an even smoother ride for the Charlestown Square clinic, which opened a year later. “There were a fair few mistakes made the first time, which of course we learned from and didn’t make the second time around.” Those lessons include fine-tuning the recruitment process and allocating more of the budget for extra staff – a relatively modest expense that has driven superior customer service and repeat business. “As with any new business to some extent I was counting my pennies,” Del Vecchio says. “I learnt that having an extra staff member actually adds to your bottom line because it frees their time up to spend more time with customers, which in turn makes people feel comfortable to make purchases.” For wannabe franchisees considering their options, Del Vecchio advises choosing a franchisor such as Laser Clinics Australia that has robust systems and processes in place to assist with the big business issues such as recruitment, training, human resources, technology and marketing. “It gave us a huge springboard into the efficient operation of the clinics,” Del Vecchio says.

FE ATURE: H ealth, Fitness & B eau t y

Central Coast and Charlestown Square in Newcastle, the former Macquarie Bank executive runs two thriving businesses after opting to “hop off the hamster wheel” of corporate life. Rigour in assessing his options five years ago is now paying dividends, and he recalls that a brief wishlist steeled his mind. Although he was prepared to work hard, he wanted freedom, flexibility and, most of all, to work in a sector that continually stimulated his business instincts.

Go for growth During the past seven years, Laser Clinics Australia has tapped into the booming demand in Australia for its three key service areas: laser hair removal, cosmetic injections and skin treatments. The provision of affordable, accessible and results driven cosmetic treatments has generated significant interest from a diverse range of franchisees – from corporate executives wanting to make a career switch to couples and individuals seeking to run their own small business with the backing of a proven franchisor. In upmarket Neutral Bay in northern Sydney, new Laser Clinics Australia franchise owner Micky Bittoun is relishing the day-to-day challenge of running a small business after opening her clinic in late August. Following a 20-year corporate career spanning executive roles with IBM, 3 and Apple, she brings a wealth of business experience to the clinic. In determining which sector to pursue, Bittoun narrowed her choice down to two preferred areas: technology led aesthetics and childcare. She also insisted on joining a business with a strong brand and track record.

Silvio Del Vecchio

“It’s incredibly important for me to be with a brand leader,” Bittoun says. “I’ve always worked for companies that have had a huge market presence.” Finally, she wanted to enter an industry that focuses on service, not products, after being involved in stock management at Apple for high-profile products such as the iPad and iPhone. “I was keen on a service-based business, one that I could scale up and down as I needed,” she says. “I then looked at areas that I knew would be in high demand and I started basically calling different franchises that fitted the categories I was interested in.” By setting clear parameters, it made Bittoun’s final choice easier. She adds that it is critical for both the potential franchisee and franchisor to put each other through a rigorous assessment process. For her, that meant ensuring Laser Clinics Australia could provide the requisite back-office support, in addition to best-practice inclinic products and services. “I have found all of that incredibly valuable and it’s made life so much easier.” Just as significantly, according to Bittoun, Laser Clinics Australia put her “through

Micky Bittoun

the wringer” with an intensive application process that put the onus on her to check out competitors, present best-case and worst-case financial scenarios and outline possible marketing plans. With her clinic performing well, she can now reflect on the importance of that process. “It wasn’t just about signing the paperwork and then opening a clinic,” she says. “If all the other owners are going through the same process, I have faith that the brand will stay strong.”

Cut the clutter Courtesy of his NSW clinics, Del Vecchio has years of experience in the Laser Clinics Australia fold. One of the key lessons he

Business Franchise Australia and New Zealand 65

FE ATURE: H ealth, Fitness & B eau t y

E x p er t Ad v ice

- by Ca m e ro n C o o p e r

“For me, it’s about reducing the clutter and focusing on the key things that drive business success – look after your staff, look after your customers and look after yourself.” - Silvio Del Vecchio has learned – and which he advises other franchisees to take on board, regardless of the sector – is to concentrate on what is important, and what is not, for business success. “For me, it’s about reducing the clutter and focusing on the key things that drive business success – look after your staff, look after your customers and look after yourself.” The latter is crucial given that life as a franchisee is incredibly busy. “This business is seven days a week… You need to build in rest and recovery because without that rest and recovery you do burn out.” Building the right culture is also important, not only within the clinic but also more broadly throughout Laser Clinics Australia’s operations, according to Del Vecchio. “As franchisees across different parts of the country we embody the culture of Laser Clinics Australia the corporation, but at the same time we also create and foster our own culture at a local level,” he says. “For me, it’s one of care and love and family and looking after each other.”

Enjoy the rewards As she welcomes a steady flow of customers into her Neutral Bay clinic, Bittoun can vouch for the value of nine months’ of due diligence and business planning that went into her decision to join Laser Clinics Australia. While the commitment is significant in terms of up-front investment and hours on the job, the mother-of-two appreciates the work-life balance that running her own business offers. She now has the ability to better manage work and a vast array of family duties such as getting her children to soccer on time. “I wanted a bit of flexibility with the hours I work, but also I was a bit over making other people a lot of money and wanted to make some money for myself for a change – and

it’s absolutely possible to do that with Laser Clinics Australia.” Bittoun is enjoying the chance to use her considerable business skills and interact with her team and customers. “The thing that I love about this business is that people come in, they have their treatments and leave feeling good about themselves. And that makes me feel happy as a business owner.” For Del Vecchio, his background in the financial services sector meant he was well-equipped to ask the right questions and calculate the risks and returns of his investment in the Erina and Charlestown clinics. Nevertheless, he says franchisees

66 Business Franchise Australia and New Zealand

still have to trust their instincts. “At the end of the day you still need to pull the trigger and sometimes, when it comes to the crunch, it’s gut feel that overrides all of the analysis.” LCA first opened in 2008, and has since established a dominant position in the cosmetic clinic market. They have carved a new niche, creating an exceptionally strong brand and large customer base through the supply of affordable, accessible and reliable cosmetic treatments. For more information contact: E: franchising@laserclinics.com.au W: www.laserclinics.com.au/franchising

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Important matters to consider with

Franchise Territories 68 Business Franchise Australia and New Zealand

When a prospective franchisee is looking to purchase a franchise operation, they are generally buying the right to operate in a specific territory. What a â&#x20AC;&#x2DC;territoryâ&#x20AC;&#x2122; is differs from franchise to franchise. Territories come in many shapes, sizes and styles so it is extremely important to understand how the territory is defined. The logic behind having a territory is to give

“A savvy franchisor should take steps to minimise risks relating to the territory.” Mark Sherry | Partner Harmans Lawyers New Zealand.

the franchisee a reasonable level of comfort that the business being purchased can be a successful economic unit. The expectation is that the territory is large enough and contains a sufficient customer base to operate profitably without facing undue competition from other franchisees. Issues can arise when a franchise system grows, as this can result in in-fill between existing franchise operations. New franchise outlets can intrude into the territories of existing outlets, and this can have several implications. In particular, it can impact on the economic viability of existing franchisees, it can create disharmony between franchisees and it can lead to a dispute between the franchisor and franchisees. Before delving into this issue further it is important to understand the most common types of territories:

Exclusive territories When a franchise is being sold with an exclusive territory this means that the franchise agreement will contain details of an exclusive area in which the franchisor will not set up another franchise. In many cases a map is attached to the franchise agreement to highlight the exclusive area of the franchisee. Depending on the type of franchise this could be anywhere from a specific address or premises, such as a certain shopping mall or defined suburbs, through to cities or even wider geographical areas. Exclusivity of course does not prevent competitors from outside the franchise system competing with the business. It is important to note that having an exclusive territory does not stop the franchisor setting up or selling another franchise outlet immediately outside the exclusive territory. The reality of this scenario is that the two franchisees may face a large overlap in the catchment from which their potential customers are drawn. This is often not contemplated by the initial franchisee, as they may have considered their

“A franchisor should have a coherent and clear area development plan that it is up front in providing to prospective franchises.” whole territory to be an exclusive catchment area.

Non exclusive territories Non exclusive territories often define the area that franchisees are allowed to trade within, but they allow the franchisor to sell franchises to other prospective franchisees within that territory also. Such systems allow franchisees to sell their products or services within that territory but they have restrictions on trading outside it. The freedom of the franchisor to sell other franchises within that area is retained in the belief that over time the territory could sustain an increase in the number of franchisees as the brand gains traction. In this scenario the franchisee must trust the franchisor not to over-saturate the market with franchises so that their franchise business will become diluted to the extent that it does not provide an appropriate return. An astute franchisor will not over-saturate the market because such action will lead to dissatisfied franchisees, which in turn leads to major disputes within the franchise system. Disharmony in a franchise system causes a loss of focus for all concerned and can lead to a loss in profitability. However, a prospective franchisee needs to be wary of a franchisor that could be looking for a quick profit from the sale of new franchises into non exclusive territories, especially if that market already has a number of participants. Meeting as many existing franchisees as possible and discussing the system with them is advisable to ensure that not only are they comfortable with the franchise system

generally, but that they are also comfortable that the market can sustain another franchisee. The better franchisors focus on earning income through the operation of the franchise and the royalties generated through their franchisees’ sale efforts rather than cannibalising franchise territories by selling new franchises into them for an upfront fee, knowing that the addition of a new franchisee will not increase the level of franchisee sales at all.

Changes to territories Many franchise agreements, even those that provide for exclusive territories, give the franchisor the right to change the territory or alternatively start up a new franchise within the territory should circumstances arise that will allow the territory to sustain another franchise operation. Such circumstances may include a change of demographics within the franchise territory or a development in the technology used by the franchise system that results in a much greater demand for the product or service being offered within the franchise system. It is not uncommon to see a provision which requires the franchisor to offer the franchisee the first right of refusal to purchase the new franchise operation commencing within the territory. Issues however can arise where a new operation is being sold just outside of the territory, as any rights of first refusal would not apply. Franchisors often also reserve the right to sell a new franchise into a franchisee’s territory where the franchisee is under performing or failing to meet preset minimum key performance indicators. This is understandable from a franchisor’s perspective as it cannot afford to have

Business Franchise Australia and New Zealand 69

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what could otherwise be a high performing territory failing to produce appropriate levels of income because of the lack of franchisee achievement. In such circumstances a franchisee would normally have received feedback and warnings from a franchisor that its performance is not up to the required standard. It should also have been given training, assistance and/or advice from the franchisor to try to turn the direction of the business around and it will be aware that the introduction of a new franchisee to the territory is one of a number of possible consequences that may be faced if its performance does not improve.

Problems with territories One of the problems that can occur with exclusive territories is when a franchisee attracts business from outside its allocated territory. Some franchise agreements recognise that this may occur and they attempt to deal with this issue in advance. Solutions range from an absolute prohibition on trading with a customer from outside the territory, to allowing such a transaction to occur but requiring the franchisee to make a payment to the franchisee of the territory that the customer came from. Such problems tend to occur more often in franchise systems where there is a service being offered to customers on a mobile basis, for example gardening and lawn mowing services, where a franchisee receives a customer referral from outside its agreed territory. The problem can also arise when a franchisee has an existing client within its territory and that customer moves premises outside the territory but wishes to continue using the services of their existing provider. A good franchise agreement or manual will have clear guidelines to deal with such issues and rules dealing with the allocation of work. It is not uncommon for some franchise systems to have the main point of customer contact coming through a toll free number. That allows the work to be referred to the franchisee that has control of the territory that the call came from, but they can be referred to other franchisees if the franchisee for the territory is too busy to meet the service guidelines of the franchise or that particular customer’s requirements. Such situations must be clearly defined and consistently adhered to so as to avoid disputes between franchisees. Another issue which is not uncommon for ‘premises based’ franchises is that alluded to earlier in this article. It involves the franchisor allowing a new outlet to open

“One of the problems that can occur with exclusive territories is when a franchisee attracts business from outside its allocated territory.” right on the edge of an existing franchisee’s exclusive territory. A savvy franchisor should take steps to minimise risks relating to the territory. First, it should have appropriately modelled what sort of customer base is required to sustain a successful franchise. This may involve having different rules in different areas, for example where socioeconomic factors may impact on the size of population that would make a territory viable. All too often territories are based on crude population numbers rather than taking other factors into account. Secondly, a franchisor should have a coherent and clear area development plan that it is up front in providing to prospective franchises. That way a franchisee has the opportunity to buy a business with all relevant information at hand. Thirdly, the franchisor should implement the plan that franchisees have relied on and not look to make changes without first discussing it with them and obtaining their buy-in based on sound data and logic. The writer has recently been involved in a dispute within a large international franchise system that has implemented its territory expansion in New Zealand haphazardly. The franchisor created and disclosed to existing franchisees an area development plan which they relied on to become multi-unit operators, only for the area development plan to be changed unilaterally resulting in the potential for them to face increased competition from within their own franchise system. In each case this has created significant disharmony between the franchisee and franchisor. It poses an economic risk that the franchisees would not have taken on had they known the franchisor would alter its plan for the development of the territories. Whilst many franchise agreements contain a disputes resolution procedure, it relies on the goodwill of the parties concerned to try and reach an amicable solution. There is currently no general duty in New Zealand for franchisors and franchisees to act in good faith towards each other so such disputes often result in one party being detrimentally affected whilst the other receives a windfall.

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Summary Every franchise agreement is different, and the rights and privileges obtained under the agreement will differ in each case too. It is extremely important to minimise unpleasant surprises and to properly understand exactly what rights a prospective franchisee is purchasing when buying into a franchise system, including knowing the issues surrounding the territory being purchased. Taking advice from a specialist franchise lawyer, along with asking the franchisor direct questions about how they plan to expand the system and what impact it may have on the operation being purchased would go a long way to giving a buyer some certainty. Further, liaising with as many existing franchisees as possible gives a buyer the ability to gauge the robustness of the franchise system and the behaviours of the franchisor. Other franchisees already operating within the system will generally give an indication of the general level of satisfaction that franchisees feel within the franchise system. Finally one always needs to remember that even if there is confirmation that an appropriate exclusive territory is being purchased, it does not prevent the franchisee from facing competition from any person in the same line of business who is not part of that franchise system. Mark Sherry, LLB (Hons), BCom, is a Partner with Harmans Lawyers New Zealand. He leads the commercial and property team, specialising in franchising, hospitality, rural law, property matters and asset protection. Harmans is a full service legal firm providing excellent service and advice, allowing Harmans to develop long-term, solid relationships with their clients. For more information please contact Mark Sherry at: P: +64 3 352 2293 M: +64 21 524 890 E: mark.sherry@harmans.co.nz W: www.harmans.co.nz

HAVE YOU NOTICED HOW MANY BLOCKS OF UNITS THERE ARE? Ever wondered who looks after them and how you might be able to get a piece of the action?

LOOK NO FURTHER - CGS CLEANING AND GARDENING WHY CGS FRANCHISE? s .O PREVIOUS EXPERIENCE REQUIRED s %STABLISHED BRAND IN THE STRATA INDUSTRY SINCE s .O AFTER HOURS WORK s .O WEEKEND WORK s 0ROFESSIONAL HEAD OFlCE SUPPORT s 6ERY PROlTABLE s (UGE GROWTH POTENTIAL

To learn how to get your piece of the action and get the perfect work life balance Call: 0410 633 536 | Email: chris@cleangreenstrata.com.au

www.cleangreenstrata.com.au Business Franchise Australia and New Zealand 71

PROFILE : T h e x ton a r mst rong

A GOLDEN OPPORTUNITY

Time for a New Career as a BUSINESS SUCCESS PARTNER

Business consulting is big business. It is also smart business. Thexton Armstrong realises this and has developed a unique and incredibly effective program to help you utilise your professional experience to create your own business and assist other business owners to achieve their maximum potential. The Thexton Armstrong Business Success Program is designed to enable a Thexton Armstrong franchisee to offer very high end consulting services to small and medium sized businesses. Franchisees work with the owners and managers of a business (the franchisees clients) to help make their business stronger, more profitable and more valuable. The programme provides the framework for the franchisee to go into their clients business and do a complete analysis and overhaul. One of the many benefits of being a Thexton Armstrong consultant is the fact that the programme is not a ‘quick fix’ for clients. It is a comprehensive system which allows you

“Franchisees come from a wide and varied background. Most have spent around 20 years in corporate life and/or have owned their own business.” to build a long-term relationship with your clients, across ALL areas of their business. Developing these strong relationships allows you to gain and retain clients. This produces better results for your clients and for you! Franchisees come from a wide and varied background. Most have spent around 20 years in corporate life and/or have owned their own business. These individuals now want to take their experiences and pass on this knowledge and advice to other up and coming businesses. Thexton Armstrong harnesses this vast amount of knowledge from their franchisees and teaches them how to put this information into a successful, structured programme which they can then take to potential clients. They provide comprehensive training to all franchisees to help equip them with the skills, tools and resources to approach potential clients and show them the enormous benefits of working with a professional business consultant. Clients initially sign on with a Thexton Armstrong franchisee because the franchisee can clearly demonstrate the financial advantages of having the franchisee as their ‘business partner’.

72 Business Franchise Australia and New Zealand

Businesses often see an increase in profits from four to ten times the consultancy fee paid. That is strong motivation for any company to jump on board. There is also room for growth, once the franchisee has become successful in their own right, they then have the opportunity to build their own consulting firm, employing multiple consultants under one roof. There is also the opportunity to join an existing firm if you would prefer to be a part of a team environment. Within Thexton Armstrong there may also be the option to work in one of their already established firms. The cost to entry may suit your budget better than the Master Franchise Model and gives you the added mentoring and experience of the Firm Owner. If you are interested in becoming part of the success of Thexton Armstrong you will find more information on their website or email them directly at: E: thextonhq@thextonarmstrong.com.au W: www.thextonarmstrong.com.au/ presentation

Business Consulting

MASTER FRANCHISEE OPPORTUNITY

FRANCHISEE/ CONSULTANT OPPORTUNITY

There limited New There are are Limited opportunities for Zealand Opportunities motivated and passionate for motivated and professionals to join our passionate professionals international consulting to join our international network. consulting network.

There limited New There are are limited opportunities for Zealand opportunities motivated and passionate for motivated and professionals to become a passionate professionals Franchisee/Consultant in one to become a Franchisee/ of our consulting firms. Consultant in one of our

Are Are you you tired tired of ofthe thecorporate corporategrind? grind?

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New Zealand consulting firms.

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Have you owned your own business and appreciate the plight of the small business appreciate the plight of the small business owner? owner?

Do you want to be a part of the fastest growing Do you want to be a part of the fastest growing business consulting brand in Australasia? business consulting brand in Australasia?

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Web: www.thextonarmstrong.com.au/presentation

Business Franchise Australia and New Zealand 73

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Close the loop on your FAC

Communication, sharing of information, ideas, being on the same page, one vision, one agenda – it’s all about how people come together for the ultimate goal… the continued growth and improvement of the brand. The traditional Franchise Advisory Council (FAC) is a formal meeting environment within a franchise brand which enables open and healthy discussion around the table between normal franchisees who are representing their peers, and the corporate office personnel, to think tank new methods, products and services that your industry’s market is looking for to ensure the brand is staying relevant.

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“The observations I’ve made in recent years is that the reality of the FAC for many systems is far from the core DNA of why FAC’s have become an institution within franchising.” Corina Vucic | Director FC business solutions

The franchisor leadership team should regularly take an insightful look into the FAC and dig deep to consider what function it plays in adding value to the brand, enhancing the communication loop within your system and reviewing what has it achieved in the past 12 months that warrants the investment in the forum. Is it time to stress test this organ in your franchise system? The observations I’ve made in recent years is that the reality of the FAC for many systems is far from the core DNA of why FACs have become an institution within franchising. Too often the forums are unhealthy and unhelpful, with franchisees representing only their own specific interests and the support office personnel just presenting on the progress of key result areas and lack the opportunity to share what really goes on at support office.

Chairing the Meetings Who chairs your FAC? Is it a biased Chair? Is the Chair too close to the action? Is the Chair experienced in facilitating the healthy blue sky thinking required in this forum? Is the Chair mentoring franchisees into successful FAC representatives? The ultimate purpose of an FAC is to talk, share ideas, think outside the box, stress test new ideas for the system, vote on acceptance by franchisees of the new concepts and ways - it is not the Senate Assembly where the FAC is charged with rubber stamping the corporate offices policies and procedures. Does the CEO or Founder have a constructive role to play within the FAC? Too often FACs become a forum where the CEO is looked to for sign off and decision making. CEOs struggle to remove their decision making hat and the franchisee representatives expect decision making and direction from the CEO inside this forum. This is not productive, the FAC is not a

“The ultimate purpose of an FAC is to talk, share ideas, think outside the box, stress test new ideas for the system, vote on acceptance by franchisees of the new concepts and ways.” decision making group and therefore those leading the FAC in franchise brands must remove this legacy and opportunity. In fact I would go as far to say that the CEO, Founder or the senior operational representative of the brand should not be the Chair but just be a contributor to healthy conversation rather than the emotional ‘executive’ protecting their turf and performance of their team.

Review the Agenda and Minutes When did you last take a hard look at the content of the FAC agenda? Is it filled with healthy agenda starters or is it department heads reporting on updates and validating the successes and challenges? Often I sit in these meetings where I am ready to be inspired by conversation and action yet I am underwhelmed by talk that requires no action or conclusion, just forward thinking and brain storming. Too often the think outside the square agenda item is at the back end of the meeting and by the time we get to it we have run out of time, are zapped of all energy and creative thinking or these items are pushed to another meeting. The result being we have not succeeded in taking a moment to brain dump what’s happening in our industry of choice. Review the agenda, think minimal, less word and less agenda items. Allowing more freedom to innovate will breathe new air into the FAC forum. We continue to see PowerPoint slideshows with slide after slide of information. Once again, think minimal, think of the time

you will save not requiring over exhaustive slideshows which add very little value to the outcome of the FAC. Have you considered treating the FAC members with respect and actually circulating pre reading materials and information and asking them to come along to the meeting well prepared, well informed and ready for conversation to develop ideas? Sometimes when I read pages and pages of FAC notes, which are referred to as the minutes, I am fast asleep - the minute taker has transcribed every comment and every conversation and in the end all I am looking for is the golden nugget or the action item and I am puzzled when I cannot find it. Was there one? How was the agenda item concluded? Was it just mindless talk? Record keeping of a meeting should be about action items - no one has time to read the detail of every conversation or exchange and if that is what they want then they should invest their time wisely and be an FAC member. It is the minute takers responsibility to record the action items, acceptance of decisions and ensure that if the FAC has the power to vote, that they record the votes and what the resulting change is.

Member Code of Conduct FAC members require guidelines on how meetings will be called, prepared for, conducted and concluded. FAC members also require a lesson into what the FAC’s purpose is, how it has contributed to the success of the brand’s growth and how the FAC member is obligated to contribute within

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the forum and when they are representing their peers each day between each scheduled FAC meeting. Do you have a process to induct an FAC member; have you introduced FAC members to the world of meeting structures, how to absorb information, how to communicate to their peers and how to collect information from the franchisees they represent to bring healthy thinking and voices to the FAC? Do you have member guidelines or a charter and when was it last reviewed? Is there an induction into becoming a productive FAC member?

Reporting to the Network With everyone’s pocket containing a smart phones, at the conclusion of the FAC meeting record a snapshot of what happened in the meeting and upload it to your brand’s intranet site to offer a quick visual to the network to say this is what we invested our time doing

“Review the agenda, think minimal, less words, less agenda items and allowing more freedom to innovate will breathe new air into the FAC forum.” today and to touch base with your FAC representative if they want to know more. A fit and healthy FAC is different for each franchise brand. Its heartbeat represents where the brand is within its journey, the culture of the company, the engagement levels of the franchisees and most importantly the willingness and strength of leadership teams to evolve the FAC into unchartered waters which require selfreflection, trust and courage. Corina Vucic has been involved in the franchising industry for more than 15 years. Corina is the 2012 FCA Woman in Franchising (Vic/Tas) and a Victoria Chapter Committee member of the Franchise Council of Australia. Corina is an experienced and highly qualified

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mentor, trainer and business coach. FC Business Solutions is an integrated consultancy firm specialising in developing, growing and marketing franchise systems. A professional team provides expert service exclusively to the franchise community, in system development, marketing and communications, business health checks, and business operations. They also offer solutions in documentation, training, and human resources. Contact Corina on: P: 03 9533 0028 E: corina@fcbs.com.au W: www.fcbs.com.au

Business Franchise Australia and New Zealand 77

Fr a nchisor in D ep th : Fast way Cou r i ers

Fastway Couriers deliver success! Not only has the friendly courier experts, Fastway Couriers, gone from strength to strength by delighting their customers at the door, it’s also a great place to work. Established in New Zealand in 1983, Fastway is a parcel delivery company with a global network of more than 1,500 franchisees across Australia, New Zealand, Ireland, Northern Ireland and South Africa. The company prides itself on their ability to connect buyers and sellers through a reliable parcel delivery and leading the franchise industry with continued innovation, offering global expertise that is tailored to a local level throughout Australia and New Zealand. Through its industry-leading franchise system, Fastway has developed a reputation for providing a reliable, friendly and cost-effective service to its B2B and B2C

customers – an achievement which has earned the franchise over 60 industry accolades, including Overall Franchise System of the Year on four separate occasions and the 2012 NAB Franchise Council of Australia Excellence in Marketing Award. Fastway Couriers Australia CEO, Richard Thame said, “The Fastway approach to courier services is unique. Our Courier Franchisees offer a cost effective, reliable, timetable courier service, backed up by the latest scanner technology and online parcel track and trace facilities, making Fastway Couriers the ideal choice for small to medium sized businesses as well as leading e-tailers. “Our strong brand, robust business model and continued innovation makes a Fastway franchise an attractive opportunity, and our continued support helps our franchisees to get the most out of their businesses.”

DELIVERING ON OPPORTUNITY Fastway is focused on leading the franchise industry in Australia and New Zealand,

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as well as around the world. As such, the company has a focus on identifying global trends and acting upon them at a local level to impact franchisees’ businesses. Thame added, “When conducting research, we look at the market and identify key trends, and then develop highly specialised strategies and methods to target specific territories, it’s all about making the best choice for the local area. For example, in our most recent market analysis, we identified online sellers as a key market and, as a result, we created and implemented tailored strategies, such as Parcel Connect and our eBay Portal, to best target that particular area of the market in Australia.” It’s this type of research led innovation that has seen Fastway experience a period of success after expanding into the B2C market. Five years ago, over 80 per cent of Fastway’s business was traditional B2B. Now, the vast majority of growth is from the B2C section, which represents in excess of half of the company’s business by volume. Fastway expects that over the next three years, B2C deliveries will account for more than 80

“The Fastway approach to courier services is unique. Our Courier Franchisees offer a cost effective, reliable, timetable courier service.” - Richard Thame, Fastway Couriers Australia CEO

per cent of the business as online retailing continues to grow. To continue to maximise on the online retailing boom, Fastway has developed new commercial offerings, as well as technologies to streamline processes. In 2014 the courier company launched Parcel Connect, a parcel delivery service that allows customers to send, collect or return packages through an expanding network of local retail outlets. It eliminates the need for customers to leave work early to accept parcel deliveries or spend their lunch hour queuing at the post office. Thame continues, “With more purchases being made online, the number of deliveries going to customers’ homes has increased, which can be inconvenient for some people. In response to this, we set up Parcel Connect locations nationwide and already have in excess of 400 locations throughout Australia and we’re aiming to have over 1,000 within the next 12 months.” Fastway also saw success with the launch of a new eBay portal for the thousands of businesses that sell items through the online marketplace. The eBay portal simplifies the shipping process by automatically importing all of the seller’s information. All the eBay seller has to do is select the Fastway product that suits their needs, nominate a pick-up window and affix an online printed label. This saves sellers time and provides them with access to Fastway services on a pay as they go basis, making the proposition efficient and very cost effective. To assist franchisees to cope with the increasing demand, Fastway is implementing back-end technology updates to streamline the delivery process. Fastway is in the

process of rolling out leading edge scanner technology, which provides end-to-end solutions for the entire delivery process, from shipper through to the end receiver. Connecting the shipper, operations, management, Courier Franchisee and the customer, this software provides real-time data and automated workflows to enhance and streamline the delivery process. Prospective franchisees can also rest assured that Fastway continually invests in innovation, to give their business a competitive edge. In July this year, Fastway Couriers New Zealand successfully collaborated with Flirtey, the world’s first commercial aerial delivery company, to complete the first non-commercial drone courier delivery. The trial saw auto parts delivered over a 1.9km trip, bypassing congested roads and traffic jams, getting the parcel to its destination in a quarter of the usual time. Thame continued; “While we don’t think that drone technology will replace our courier fleet, it’s an exciting prospect for Fastway and we’re keen to see where this technology could take us. Innovation is important to us and gives us the opportunity to evolve and grow with new technology to meet changing client needs.”

WHY BECOME A FASTWAY FRANCHISEE? Simply put, the time is right to become a Fastway franchisee. The company is experiencing increasing success, it continues to invest in new and exciting technologies and it’s a friendly and supportive brand to be part of.

The Fastway franchise model works on two levels, providing an easy route to starting a local business with the benefit of global experience and support. Courier Franchisees are the face of the company and embody the company’s ethos of ‘delighting at the door’ delivering packages. Regional Franchisees build the brand in the community, operating local depots, employing office staff and overseeing Courier Franchisees. Fastway Couriers practices a proven and successful business model. The group’s turnover increasing by 9.6 per cent for the year ending 31 March, a fact that has been observed throughout the company, with Regional Franchisees reporting strong profit growth. In addition, Courier Franchisees have seen an increase in average weekly revenue of approximately 10 per cent in 2014/15, compared to 2013/14. What’s more, over the last three years, average weekly earnings of individual Courier Franchisees have increased by more than $250.

TRAINING AND ONGOING SUPPORT Alongside buying into a brand that offers a successful business model, ongoing growth and continued innovation, Fastway franchisees also receive individual support. Regional Franchisees are offered perpetual franchise agreements, giving them the security and confidence to concentrate fully on growing their businesses. Ongoing training is offered through Fastway’s online

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Fr a nchisor in D ep th : Fast way Cou r i ers

“Fastway is focused on leading the franchise industry in Australia and New Zealand, as well as around the world.”

chance to learn more about using the online retail space to maximise growth.

portal MyFastway.me; visits from members of the Franchise Support Office, and both on and off the job training sessions, including annual conferences and off-site seminars. New Regional Franchisees receive an intensive induction process, where they spend two weeks working alongside existing franchisees, engaging in practical, on-thejob training, as well as online and classroom learning. Courier Franchisees may be offered a guaranteed income package for a defined period while they set up and a perpetual agreement on an exclusive territory. Other benefits include low start-up costs, no weekend work and unparalleled support. New Courier Franchisees spend two weeks in a Fastway van with an existing Courier Franchisee, as well as going through an induction process, face-to-face training with a recruitment specialist and a dedicated two week handover phase. “Our franchisees are the core of our service and we believe in supporting them from day one so that they can make the most of their businesses. Ongoing training and giving franchisees the ability to feedback on Fastway’s processes helps us ensure best practice is used by each and every member of our team,” added Thame.

THE FASTWAY CULTURE Fastway prides itself on being the friendly courier company, and encourages all its franchisees to get involved with their community. This year, Fastway depots across the country have been involved in fun days, local charity activities, sponsorships of local sports teams, entering and winning awards and a plethora of other activities in their communities. Recently, Fastway helped a number of their depots support Daffodil Day, with depots volunteering their time and services to deliver thousands of the yellow flowers across Australia on behalf of Cancer Council free of charge. The money saved by the charity will be used to continue their excellent work. In Wollongong, Regional Franchisees Anthony and Andrea Hamod were recently named winners of the ‘2015 Franchisee Community Responsibility and Contribution’ award for NSW/ACT at the Franchise Council of Australia’s (FCA) Excellence in Franchising Awards. Enterprising Barry Aitchison, Regional Franchisee in Mackay, listened to his customers’ needs and ran an online retailing course for local people looking to start a new venture. The ‘Logging On’ event provided Whitsunday business owners and those looking to kick-start a new venture with the

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Thame added, “We encourage our franchisees to go out into their communities, or the industry and get involved and are always impressed by their creativity and passion. As the friendly courier experts, we feel that it’s important that our franchisees know their customers and understand what is happening in their area.”

BECOMING A FRANCHISEE “The people behind Fastway Couriers are our most important asset. Attracting passionate franchisees is crucial to the company’s success. Once we meet with a suitable applicant, we engage in a thorough, multi-stage interview process, which involves a series of experience and behavioural based questions. Candidates also receive practical learning, going on van rides or spending time at a regional franchise, to go through an induction and handover phase,” adds Thame. Being a Regional Franchisee is a role that requires a skilled leader with strong business acumen and the willingness to take a hands-on approach. These franchisees may come from all walks of life. Over the years, those who succeed are enthusiastic and energetic with a strong customer centric focus and the desire to build a successful business within the guidelines of the Fastway franchise system. These are also qualities that are required to be a successful Courier Franchisee, where customer service is paramount. If you would like to find out more about becoming a Fastway Regional or Courier Franchisee visit: W: www.fastway.com.au/franchising

Undisputed leaders in online ordering. Australia and NZ's first and most advanced mobile ordering apps.

Ongoing training and support for franchisees and their teams. State of the art digital store management tools in the hands of every franchisee.

Innovative digital marketing with millions of customers assessable via email and social media.

Business Franchise Australia and New Zealand 81

fr anch isi ng e x po

Research the key

to finding the right franchise Owning a small business can be very rewarding, both financially and personally. It is also hard work, and mistakes can be costly, which is why many opt for the security of a franchise’s proven branding and operating system. The Franchising & Business Opportunities Expo is a place where Australian and international franchisors gather in Sydney, Brisbane, Melbourne, and now Perth, to showcase their brands. Industry experts are also on hand to offer advice and information about the ins and outs of being your own boss. “Some people find starting their own business is a bit overwhelming, but it doesn’t have to be,” says Exhibition Manager Fiona Stacey. “It’s a matter of finding the right people to help you on your journey – be they franchisors, lawyers, consultants, accountants or other advisors. All those people are available at the Expo, and more than willing to answer all your questions. “Entering a franchise agreement is a serious business, and it should not be undertaken lightly,” adds Fiona. “It is crucial that you do extensive research on any franchise you consider, and the Expo is a great place to start, or dig deeper into a concept you’re considering.” The Franchise Council of Australia’s General Manager Kym De Britt agrees. “It’s important to understand whether franchising is the right business model for you, and if you decide it is, to find out all you can about the franchise system you are considering becoming a part of,” he says. De Britt advises people looking at investing in a franchise business to consider not just the franchise business model and the franchise system itself, but to also look at the

Visitors talk franchising with Cafe2U at the Melbourne Franchising & Business Opportunities Expo in August.

overall health and long-term prospects of the industry or trade the franchise is operating in. Australia’s largest multi-food franchise operator, Retail Food Group (RFG), exhibited at the Brisbane and Melbourne Franchising & Business Opportunities Expos this year, showcasing renowned brands such as Donut King, Brumby’s Bakery, Michel’s Patisserie, The Coffee Guy, Gloria Jean’s Coffees, Pizza Capers, Cafe2U and Crust Gourmet Pizza. RFG’s Sales & Leasing Manager Sarah Kidman believes there are five major factors to consider when researching potential franchise opportunities. Brand: “One of the major benefits of a franchise is access to an established brand, giving franchisees a proven business model and immediate brand recognition for customers,” she says. Training: “As a small business owner, there are a multitude of new skills to learn and tasks to complete. A franchise gives you access to comprehensive training to develop your skills before you start a business.” Support: “After initial training is

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completed, franchisees should be offered expert support teams who are available to assist with marketing, operations and other business functions throughout the life of your franchise agreement.” Passion: “Choose a franchise that makes products that you truly love; whether it’s freshly ground coffee, handmade pizza, traditionally baked bread or delicious cakes, your passion will be infectious with your new team and customers.” Lifestyle: “Becoming your own boss is a great way to access a flexible and rewarding lifestyle, so make sure you choose a business that will allow you to do the things you want to do. Whether you prefer to work late nights at a pizza store, early mornings baking pastries, or half days doing the coffee run, there are a wide range of options available,” concludes Kidman. For information about participating in the 2016 Franchising & Business Opportunities Expo contact Fiona Stacey at: P: 03 9999 5464 E: Fiona@specialisedevents.com.au W: www.franchisingexpo.com.au

Looking for new franchisees?

2016 stand bookings now open! Sydney Royal Hall of Industries, Moore Park, 18-20 March Perth Perth Convention Centre, 6-7 May Brisbane Brisbane Convention Centre, 23-24 July Melbourne Melbourne Exhibition Centre, 26-28 August

www.franchisingexpo.com.au

ENDORSED BY

Business Franchise Australia and New Zealand 83

h ave your say: La P o rch e t ta

Pioneering new market trends The success of La Porchetta restaurants was built on providing traditional Italian food with warm service, however the franchise has a deep culture of innovation and is now pioneering new market trends as they emerge across Australia and New Zealand. In the mid-1980s, when La Porchetta’s founders bought a humble pizzeria in Melbourne’s North Carlton, the Australian love affair with Italian food was still in its infancy. Thirty years later, provincial Italian eating is entirely familiar to generations of Australians and New Zealanders and although customers continue to embrace the traditional, they’re also demanding on-trend foods, with lighter, healthier options. More than that, they also want to know the stories behind the recipes they’re enjoying and their ingredients. “We don’t see current trends as conflicting

with tradition, we just see them as an opportunity to add another layer of authenticity to our menu,” said La Porchetta CEO, Sara Pantaleo. Ms Pantaleo said customers want more information about food preparation, quality and ingredients. They want to know where and how food is produced, and they want to be informed about its supply chains. With an emerging focus on artisan meals, they also want to know the story behind the menu. There is also a renewed focus on the freshest possible ingredients and healthy, light, lowcarb options that are not usually associated with Italian food. “Our team has had ears to the ground when it comes to current food trends. We’re also informed by the latest industry research,” said Ms Pantaleo. “To this end, La Porchetta has introduced some great innovations to its menu, and we’re delighted to be partnering with the widelypublished, multi-award-winning Luca Ciano, an Italian chef of international renown.” As La Porchetta’s Chef Consultant, Mr Ciano has devised dishes and updated the La Porchetta menu to give its restaurants a contemporary edge, while enhancing their Italian authenticity. The new menu maintains traditional classic dishes and introduces Mr Ciano’s new

84 Business Franchise Australia and New Zealand

additions which focus on regional food and light options. They include Regions of Italy pizzas, new risottos and new fresh salads. “La Porchetta wanted me to help with remaining traditional in their approach, but also to modernise and reflect Italy in 2015,” said Mr Ciano. Some of the pizza innovations include: Prosciutto and Parmesan from Emilia Romagna; Prosciutto and Balsamic from Emilia Romagna; Italian Sausage and Broccoli from Puglia; Provolone and Salami from Calabria; Provolone and Eggplant from Sicilia; and Gorgonzola from Lombardia. These changes reflect emerging consumer trends in food, but still cater for the traditional Italian experience that attracts diners to La Porchetta. “Our customers want to feel they are experiencing authentic foods that have been consumed for many generations,” said Ms Pantaleo. “They also want to feel informed. So we’ve got a thoroughly contemporary menu rooted in deep tradition. “Diversity is the key here. Not only are we focused on the broad range of cuisines across Italy, but we really have something for every diner preference and every lifestyle, including a renewed focus on health and fitness.” For example, for those with active lifestyles who want to watch their carb-intake, there are high-protein chicken dishes providing

high nutrients and sustained energy. Pizzas, too, with the dough stretched to be light and fluffy, can be ordered with fresh seasonal vegetable toppings. “This is designed to cater for customers who consider a pizzeria the last place to find healthy options,” said Ms Pantaleo. “We can offer them wholesome choices in the same warm, traditional atmosphere.” Parents will be pleased to find that children can enhance their knowledge of food by learning how to make a simple pizza with basic ingredients at La Porchetta’s ‘MiniChef’ children’s parties. They’re a perfect way for children aged five years or over to celebrate their birthday with friends and then get to eat their own creations. Ms Pantaleo said the group will be reviewing processes to streamline systems for franchisees and their staff. “As focussed as we are on customer demands, we ensure that innovation and modernisation are not stressful or difficult for franchisees and staff,” she said. “And the beauty is these changes ultimately enhance profit-potential for franchisees.” Luca Ciano admires La Porchetta’s willingness to change, modernise and innovate. “I commend La Porchetta for using someone like me and my level of expertise to improve the menu offering in its restaurants. Most of the brand’s competitors don’t offer anything like that. “La Porchetta’s difference is the commitment to keep improving and this will be its strength into the future. “The process of devising a menu that strikes the right balance, said Mr Ciano, “is very simple. I get a brief, and I present a range of ideas on which we could move forward. La Porchetta then looks at what is do-able in its

“La Porchetta’s difference is the commitment to keep improving and this will be its strength into the future.” restaurant kitchens and we adjust the recipes accordingly.” Mr Ciano’s international reputation has seen him win many prestigious accolades, including recognition from Michelin and awards from the Salon Culinaire International de Londres Competition and Nestle’ Master Chef Grand Prix. His signature dishes have been published in Chefs of Distinction and he contributes to the Australian edition of the BBC’s Good Food Magazine. With his extensive international experience, he sees La Porchetta’s deep family culture as one of its major strengths and a key to its success. “La Porchetta feels familyrun,” he says. “There are amazing different backgrounds and cultures involved and everyone represents what La Porchetta stands for.” Sara Pantaleo agrees. “We began as a familyrun, family-oriented restaurant and we have

stayed true to that culture for 30 years. Our business revolves around a warm family heart and we refuse to compromise on our core values.” La Porchetta is now poised for growth, with strategic site openings planned in both Australia and New Zealand, now is the time to join our family which is underpinned by strong growth in the hospitality sector. Innovating the new menu was a delicate balancing act. To its current customers, La Porchetta is a trusted brand known for quality, value and warm service. The franchise has worked hard to retain its existing customer base while it builds upon its strong market position in a growth sector. For more information contact: T: 03 9460 6700 E: franchising@laporchetta.com.au W: www.laporchetta.com.au

Business Franchise Australia and New Zealand 85

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Franchise sector needs

stronger

Federal role

The elevation of Prime Minister Malcolm Turnbull and the overhaul of Federal Cabinet has delivered two things that have been sorely lacking and given the retail sector hope that economic reform is back on the agenda.

The first is the return of a visionary dimension to federal politics. Turnbull’s language has been effusive and brimming with optimism; our new PM is saying all the right things about the economy, including an open discussion about tax reform – something that is long overdue. Secondly, Mr Turnbull has assembled a solid and seemingly stable team. Whether this bears out in the longer term remains to be seen, but all in all, it appears to be a cracking cabinet. Mr Turnbull and his new front bench have

86 Business Franchise Australia and New Zealand

given people – and the retail sector – reason for optimism. The latest weekly survey by ANZ-Roy Morgan showed consumer sentiment rose 8.7 per cent in the wake of Turnbull’s putsch, but it’s still a good 10 per cent down since the Coalition’s election 18 months ago. As a canary in the discretionary spending coal mine, the tyre retail sector is keenly waiting to see if this upshot in sentiment is reflected at the shop front. Generally speaking, tyres are not a cheap purchase; people will procrastinate from buying tyres

“For many franchises, penalty rates create a delicate balancing act between wanting to keep head count at the right level and not wanting to overwork staff.” Jeff Board | CEO JAX Tyres

Minister for Resources, Energy and Northern Australia Josh Frydenberg. While the debate over penalty rates evokes strong reactions from both sides of the argument, the fact remains the $169 billion franchise sector is being crippled by an outdated system. In the tyre and retail sector, most purchases are done by mums and dads on weekends – yet we are penalised for offering a service at a time most convenient to our customers. JAX Tyres employees are covered under the Vehicle Manufacturing, Repair, Service & Retail Award, which covers everyone from tyre retailers to Holden dealerships. Under this award, employees are paid time and half for the first three hours worked over 38 hours per week – then double time for any additional hours worked. On Saturdays we pay time and a half, and on Sunday’s we pay double time. Incredibly, the award rate is higher than some of the other retail outlets – meaning our labor costs are higher than employers like David Jones and Myer.

until their financial situation is secure – or if bald tyres leave them with no other option. To make it easier for our JAX Tyres customers to make considered and informed purchase decisions, we have re-invented our digital and online presence with some worldleading industry technology that enables the Australian motoring public to choose, buy and book online 24-7. This has reduced our overheads, streamlined our operations and increased efficiency. Even so, and with three record months in a row since the launch of

Our franchisees work to the schedule of our customers, who typically drop off their car before work, after work and on weekends – all times affected by penalty rates. We estimate we pay nine hours of overtime per employee every week, the bulk of which takes place on Saturday mornings. the new website, we were expecting a tough first quarter in F16. But a revitalised Government under new leadership could provide a fillip to the retail and franchise sector.

Penalty rates The case for penalty rate reform – which stalled under the previous Federal Government – has received renewed focus, with Mr Turnbull declaring last week that Sunday penalty rates were up for consideration, backed this week by the

Tyre and underbody repair is a labor intensive business; on average, labor costs account for 35 per cent of a JAX Tyres franchise’s total costs. Talent recruitment is always a battle. Tyre retail is at a disadvantage in attracting young talent for the simple reason our highly skilled staff require far more training before they can enter the shop front than other employers in the retail sector. Times have changed and penalty rates must change with it. Many of our franchises simply can’t open on a Sunday when our

Business Franchise Australia and New Zealand 87

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“On Saturdays we pay time and a half, and on Sunday’s we pay double time. Incredibly, the award rate is higher than some of the other retail outlets – meaning our labor costs are higher than employers like David Jones and Myer.” customers would like to do business. Penalty rates are therefore reducing customer choice and preventing us from growing faster than we would like. For many franchises, penalty rates create a delicate balancing act between wanting to keep head count at the right level and not wanting to overwork staff. Instead of the current system, we would prefer to see a flat rate across the board, or that failing, the equalisation of penalty rates across the weekend.

Payroll tax For any national company dealing with Australia’s fragmented tax system, payroll tax is a doozy. Exemptions, exclusions and state-by-state differences make no sense in the context of a global economy. As a built-in disincentive to hiring – why should we be taxed for hiring staff? – we believe payroll tax should be scrapped

altogether. At the very least, Turnbull should propose a national approach to payroll tax, creating a simple and uniform system across state borders.

Waste Tyre management There also needs to be a federally directed approach to the issue of waste tyre management. While Tyre Stewardship Australia (TSA) was formed in January to improve waste tyre disposal, and although Federal Environment Minister Greg Hunt has become involved, it lacks any legislative bite due to the fact that is a voluntary, not legislated, system. Such a toothless tiger needs to be upgraded with real powers in line with the NSW’s Government’s WasteLocate approach. For those unfamiliar, WasteLocate is a NSW Government-mandated system for monitoring the disposal of waste tyres across the state that was officially launched by the

88 Business Franchise Australia and New Zealand

NSW Environmental Protection Authority (EPA) on October 1. This means for the first time anywhere in Australia, contractors must provide the NSWEPA with specific date regarding the movement of waste – including scrap tyres, of which only 5 per cent of some 51 million tyres are recycled in Australia every year. While the proper disposal of waste will remove millions of tyres from the natural environment every year, it is not strictly an environmental issue. There are substantial economic gains to be made by implementing a cohesive approach to waste tyre management and a federal solution, not stateby-statem is what’s needed. As CEO of the JAX Quickfit Group, Jeff is responsible for the strategic direction, business performance and sustainable growth of the company. Since joining 24 years ago, he’s transformed a traditional tyre retail and servicing operation into a fully integrated digital and bricks and mortar business. T: +61 2 9964 4000 W: www.jax.com.au

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Business Franchise Australia and New Zealand 89

h ot topics

Behind the

headlines Franchisors to be responsible for franchiseesâ&#x20AC;&#x2122; staff pay

the limit of 20-hours work per week allowed under their visa if they complained.

In a move oddly reflective of the United States where franchisors are fighting a proposal for all employees of their franchisees to be treated as employees of the franchisor, Australian Greens MP Adam Bandt has announced he will introduce a private members bill to achieve effectively the same thing.

Although both the proposed Greens private members bill and the existing National Labour Relations Board (NLRB) decision in the United States share a common purpose of preventing wage exploitation, the Australian scenario differs from that of the US in that the franchisees alleged to be underpaying their staff are already breaking the law, whereas in the US wage rates are so low that franchisees who do pay the correct rate are still viewed as exploiting their staff.

The bill by the Greens MP has been prompted by media reports that franchisees of 7-Eleven have engaged in a wage fraud scam that pays their staff only half (or less) of their proper earnings for the time worked. The wage fraud claims were first aired by a joint Fairfax/Four Corners media report on August 31, with allegations that franchisees were routinely forcing foreign student visa workers to accept long hours, but at only half the rate of pay. The workers were then threatened with deportation for exceeding

The private members bill is expected to make franchisors liable for any underpayments of staff by franchisees, exposing franchisors to potentially unquantifiable liabilities. It is reflective of arrangements 7-Eleven have put in place following its appointment of former ACCC chairman Allan Fels to an investigative panel that will receive any claims of underpayment by franchiseesâ&#x20AC;&#x2122;

90 Business Franchise Australia and New Zealand

staff, which if approved, 7-Eleven will then pay and pursue the responsible franchisees accordingly.

Unfair Contracts laws to capture more franchises The Senate Economics Legislation Committee has amended draft unfair contracts legislation to be applied to business to business contracts by changing the investment thresholds, and deferring its implementation. The legislation was referred to the committee and given less than a month to report to government, including a brief public consultation period. Under the initial draft legislation, small businesses that enter into contracts worth an upfront investment of up to $100,000, or an upfront investment of up to $250,000 where the contract lasts longer than 12 months would be affected, potentially resulting in

Business Franchise Australia and New Zealand 91

h ot topics

unfair terms of contracts being rendered unenforcable, or in extreme cases, a whole contract rendered void. The senate committee has now increased these contract thresholds from $100,000 to $300,000 for upfront contract payments, and from $250,000 to $1 million for contracts lasting more than 12 months. This means that almost all franchises will be impacted in future, whereas previously the threshold amounts would have primarily impacted service franchises, which have much lower investment levels than retail franchises. The new law defines a small business as employing fewer than 20 people, which means that it will also apply to small and developing franchisors who enter into agreements with larger organisations (such as suppliers). Although the Small Business Minister has the discretion to exempt industries subject to mandatory industry codes of conduct from the effects of the legislation (such as the franchise sector in regards to the Franchising Code of Conduct), no exemption has yet been offered despite the sector still adjusting to the new Code which commenced on January 1 this year. The unfair contracts legislation will apply to contracts entered into, renewed or amended after its implementation date, which will commence 12 months after the legislation is approved by the Governor General.

Sacked Grill’d worker wins payout, becomes union negotiator A young female worker who was allegedly fired from her job at a Grill’d franchise in Melbourne after speaking out about the company’s low rates of pay has received a confidential settlement in the same week that the matter was due to be heard in the Federal Court. Student worker Kahlani Pyrah, 20, was sacked for allegedly bullying two senior male managers at the Camberwell store 11 days after she raised concerns about underpaid wages and launched a legal application to replace the existing Grill’d employment contract with the modern award. The Fair Work Commission has ruled that the workplace agreement at the Camberwell store must be replaced with a new award agreement. Ms Pyrah has since been offered a job as a bargaining agent with hospitality union United Voice, which says that Grill’d’s new pay offer is still less than the fast food industry award.

The dispute garnered national headlines and caused Grill’d to review its award rates and its policy of forcing all staff to undertake traineeships, which pay substantially less than award rates.

Former Kleenmaid director pleads guilty to criminal charges More than seven years after its collapse, a former director of failed whitegoods retail franchise Kleenmaid has pleaded guilty to three criminal charges related to insolvent trading and dishonestly gaining loan facilities totalling $13 million. Kleenmaid was one of Australia’s highestprofile franchise collapses in recent years, mainly due to the approximately 6,000 customers who had prepaid almost $25 million for whitegoods that were never delivered. Approximately 30 franchisees, who each operated a retail shopfront and sold whitegoods on behalf of Kleenmaid lost their businesses altogether, while a similar number of service franchisees who installed and maintained Kleenmaid products joined another whitegoods maintenance chain following the 2009 collapse. The director, Gary Armstrong, will be sentenced in October. Two other Kleenmaid directors, Andrew and Bradley Young, have also been charged with up to 20 criminal offences, including fraud, as well as a further 18 charges of insolvent trading but are currently free on conditional bail. They could face up to five years jail for each charge, including charges of defrauding Westpac Bank of $13 million.

Pizza Hut franchisees launch class action over price war Pizza Hut franchisees who claim they lost money and in some cases, their whole businesses as a result of being forced to sell pizzas below cost in a price war last year against rival chain Dominos have taken their franchisor to court in a class action. The franchisees have alleged in the Federal Court that Pizza Hut’s parent company Yum Brands breached its duties to the franchisees by denying them the opportunity to make a profit. A media report has shown one franchisee whose losses spiralled from $9,000 per month to $5,000 per week after trialling reduced prices for premium pizzas discounted to $8, then $4.95. The class action represents 288 of the 298 Pizza Hut stores nationwide, according to a media report.

92 Business Franchise Australia and New Zealand

Jason Gehrke | Director Franchise Advisory Centre

ABC may compensate franchisees for store closures The Australian Broadcasting Corporation (ABC) may offer compensation to the franchisees of its 78 ABC Centres who will be affected by the network’s decision to end its bricks and mortar retail operations. The broadcaster recently announced it will close the 50 company-owned stores in its 35 year old retail network, but will continue its retail offer through its online shop. The 78 ABC Centres affected by the closure are franchises within existing businesses, such as newsagents and bookstores. ABC’s retail sales have been in decline over the last few years, with the growing potential of losses threatening to divert funds away from its broadcast operations exacerbated by government funding cutbacks.

Subway founder Fred DeLuca dies Fred DeLuca, the founder of Subway, the world’s largest franchise chain, has died aged 67. The highly successful entrepreneur was worth an estimated $3.5 billion but started his business empire humbly in 1965 at the age of 17 when he borrowed money to open a sandwich shop in order to help pay for his college education. The company which owns Subway, Doctor’s Associates, was owned by DeLuca and his business partner Peter Buck, who provided the finance for the initial sandwich stores. DeLuca had a reputation for being a very hands on CEO and founder, and was involved in managing the 44,000 outlet business until he stood aside as CEO of Subway earlier this year, and appointed his sister Suzanne Greco to the role. It is understood he had been diagnosed with leukemia in recent years.

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PROFESSIONAL SERVICES LISTINGS h ot topics

Freelease Copiers Pty Ltd

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HARMANS LAWYERS

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FRANCHISE LISTINGS LISTINGS FRANCHISE 7-ELEVEN STORES PTY LTD 357 Ferntree Gully Rd, Mt Waverley VIC 3149 Ph: 03 9541 0711 Website: www.franchise.7eleven.com.au

NATURE OF BUSINESS

OUTLETS

ASSOC MEMBER

INITIAL FEE

MIN INVEST Average of $775,000

CONVENIENCE RETAIL & FUEL

620+

FCA, AACS

(site specific – part of Min. Investment)

SIMULATOR ACTION RIDE

A$ 175,000

ELECTRICAL TEST AND TAG

FCA

$35,000

$47,000 + GST + Vehicle

RETAIL OF BATTERIES AND PORTABLE POWER ACCESSORIES

FCA

$49,900 + GST

$150,000 + GST

ADVANCED WEIGHT LOSS SOLUTIONS

FCA

$10,000

$59,000

BEAUTY SALONS

BOUTIQUE CARVERY FRANCHISE

Franchise Council of Australia

$60,000 + gst Incl. Training

$200,000

GOURMET BURGER RESTAURANT

Hogwarts School of Witchcraft and Wizardry

$30,000

$300,000

MOBILE DOG WASH

Franchise Council of Australia

$20,000

$30,000

RETAIL, POOL & SPA SERVICE

FCA, SPASA

$60,000

$460,000 + working capital

STRATA CLEANING, GARDENING MAINTENANCE SERVICE

FCA, SCA

$40,000 $60,000

$40,000 - $60,000

PREMIUM CAFÉ FRANCHISE

Franchise Council of Australia

$50,000 + GST Incl. Training

Dependent on Site conditions $300k$500K

PIZZA FRANCHISE

1500+

$60,000 + GST

$300,000 $600,000

KITCHEN, BATHROOM & BEDROOM REMODELLING

71+ worldwide

FCA & FANZ

From $60,000

$75,000

AUTHENTIC ITALIAN FAMILY FOOD FRANCHISE

Franchise Council of Australia

$50,000 + GST

$500,000 $800,000

COURIER SERVICE

650+

FCA & FANZ

From $25K+GST

$25K+GST

COURIER SERVICE

250+

FCA & FANZ

$10K

PERSONAL TRAINING & FITNESS

FCA, Fitness Australia

$29,000 inc. equipment & marketing

$29,000

TILE & GROUT RESTORATION

FCA & FANZ

$39,950 + GST & Vehicle

HAIR & BEAUTY – RETAIL & SERVICE

140

FCA

$66,000 plus GST

$390,000 incl. stock, for Greenfield sites

TARGETED WEIGHT LOSS

82 (19 Franchise, 63 Licensee)

$25,000 ex gst

$136,700 ex gst

ANTENNA & HOME THEATRE INSTALLATION

150

ADTIA, FCA

$59,000

MOBILE POOL SHOP & POOL SERVICE

FCA

$66,000

$66,000 plus Vehicle

9D ACTION CINEMAS PO Box 1333 Double Bay NSW 1360 Ph: AUS: 1300 550 132 (option 4) NZ: +61 1300 550 132 Email: franchise@9dactioncinemas.com.au Website: www.9dactioncinemas.com.au

APPLIANCE TAGGING SERVICES 80 Patterson Road, Bentleigh VIC 3204 Ph: 1300 287 669 Fax: 03 9557 4854 Email: steve@ats.com.au Website: www.appliancetaggingservices.com.au

BATTERY WORLD AUSTRALIA PO Box 46, Brisbane Market, QLD 4106 Ph: 0428 082 474 Fax: 07 3373 1770 Email: franchise@batteryworld.com.au Website: www.batteryworld.com.au/franchising

BODYOLOGY FRANCHISING Suite 612/198 Harbour Esplanade, Docklands, Melbourne VIC Ph: 1300 322 227 Email: info@bodyologyfranchising.com.au Website: www.bodyologyfranchising.com.au

BRAZILIAN BUTTERFLY AUSTRALIA Unit 5, 23 Kelletts Road, Rowville VIC 3178 Ph: 03 9756 5700 Email: franchise@brazilianbutterfly.com Website: www.brazilianbutterfly.com/franchise

BUCKING BULL 5 Henry Street, Loganholme QLD 4129 Ph: 07 3423 0555 Fax: 07 3423 0600 Email: franchise@buckingbull.net Website: www.buckingbull.net

BURGER URGE Level 1, 4/15 Lamington Street, New Farm QLD 4005 Ph: 0438 791 984 Email: camilla@burgerurge.com.au Website: www.burgerurge.com.au

CITY FARMERS DOGWASH 1 90 Main Street, Osborne Park, WA 6017 Ph: 0402 902620 Fax: 08 9440 1065 Email: scott.mcintosh@cityfarmers.com.au Website: www.cityfarmers.com.au/dogwash CLARK RUBBER FRANCHISING PTY LTD Administration Building, 254 Canterbury Road, Bayswater VIC 3153 Ph: 03 8727 9999 or 138090 Fax: 03 9729 3266 Email: dirk.heinert@clarkrubber.com.au Website: www.clarkrubber.com.au/franchise

CLEAN GREEN STRATA Unit 8/ 41- 43 Higginbotham Road, Gladesville NSW 2111 Ph: 1300 66 11 82 Fax: 02 9808 5498 Email: franchise@cleangreenstrata.com.au Website: www.cleangreenstrata.com.au

CREMA ESPRESSO 16B Harvest Court, Southport QLD 4215 Ph: 07 5532 7727 Fax: 07 5526 4896 Email: antony@cremaespresso.com.au Website: www.cremaespresso.com.au

DOMINOS PIZZA ENTERPRISES LTD Australia: www.dominosfranchise.com.au or call the Franchising Team on 1300 131 New Zealand: www.dominospizza.co.nz or call the Franchising Team on 0508 4Franchise

DREAM DOORS 26A Alfred Street, Milsons Point, Sydney NSW 2061 Ph: 08 8351 8588 Email: cam@dreamdoors.com.au Website: www.dreamdoors.com.au

FASTA PASTA PTY LTD Level 1, 137 The Parade, Norwood SA 5067 Ph: 08 8304 8600 Fax: 08 8332 8389 Email: franchise@fastapasta.com.au Website: www.fastapasta.com.au

FASTWAY COURIERS AUS Level 9, 491 Kent Street, Sydney NSW 2000 Ph: 1300 FASTWAY Fax: 02 9264 4966 Email: fso@fastway.com.au Website: www.fastway.com.au

FASTWAY COURIERS NZ Shed 5, Level 1, Lever Street, Ahuriri, Napier 4110 Ph: 0800 4 FASTWAY Website: www.fastway.co.nz

FITNESS ENHANCEMENT PERSONAL TRAINING 20 Lawrence Drive, Nerang QLD 4211 Ph: 1800 PT for U / 1800 783 678 Email: franchise@fitnessenhancement.com Website: www.fitnessenhancement.com

GROUT PRO AUSTRALIA Ph: 07 5515 0119 Fax: 07 5500 3716 Email: mail@groutpro.com.au Website: www.groutpro.com.au

HAIRHOUSE WAREHOUSE Level 1, 605 Doncaster Road, Doncaster VIC 3108 Ph: 03 9234 2200 Fax: 03 9234 2266 Email: franchising@hairhousewarehouse.com.au Website: www.hhwhfranchising.com.au

HYPOXI AUSTRALIA PTY LTD 7 Blackfriars Street Chippendale NSW 2008 Ph: +61 2 9281 2033 Email: kellie.wilson@hypoxi.com.au Website: www.hypoxi.com.au

JIM’S ANTENNAS National Office-25 Rocklea Drv, Port Melbourne VIC 3207 Ph: 131 546 Email: getstarted@jimsantennas.com.au Website: www.jimsantennas.com.au

JIM’S POOL CARE 48 Edinburgh Road, Mooroolbark VIC 3138 Ph: 131 546 Email: info@jimspoolcare.com.au Website: www.jimspoolcare.com.au

96 Business Franchise Australia and New Zealand

FRANCHISE

NATURE OF BUSINESS

OUTLETS

ASSOC MEMBER

INITIAL FEE

MIN INVEST

SWIM SCHOOL

$20,000 + GST

$110,000 + GST

HAIRDRESSING

180 across Australia & NZ

FCA

$35K

$90K-$240K

AUTHENTIC ITALIAN FAMILY FOOD FRANCHISE

FCA & FANZ

$300K+

APPLIANCE RENTAL

100+

$29,000

WINDOW COVERINGS RETAIL SHOWROOM

N/A

$90,000 - $120,000

ACCOUNTING, TAX AND FINANCIAL SERVICES

IPA, CPA, CA

$39,000

HEALTHY EATING CAFÉ

$60,000 + gst

$200,000

RENT TO OWN APPLIANCES & ELECTRONICS

$60,000 ex GST

$100,000

FIXINGS AND FASTENER TRADE SALES

$350,000 inc. stock

MODERN SEAFOOD CAFÉ

Franchise Council of Australia

$60,000 + gst

$200,000

MEDITERRANEAN FAST FOOD CONCEPT

Franchise Council of Australia

$60,000 + gst

$200,000

SMOOTHIES, JUICE BAR, YOGHURT

$40,000 + GST

$170k to $250k

BEDDING RETAILER

Franchise Council of Australia

$50,000

$450,000+

DRUG TESTING & EDUCATIONAL SERVICES

FCA (pending)

$130,000

varies depending on vehicle being owned/leased

SPORTS BAR & GRILL FRANCHISE

Franchise Registry

$50,000

$750,000

RETRO-FIT DOUBLE GLAZING

AWA

$40,000

Varies depending if vehicle needed

BUSINESS CONSULTING

70+

FCA

$25,000

Options available from $25K-$75K

DOMESTIC AND COMMERCIAL CLEANING, GARDENING FRANCHISORS

1100

FCA

$16,000 + GST

$25,000

RETAIL / TELECOMMUNICATION

160

Nil

$70k - $150k

DI BELLA COFFEE MOBILE ESPRESSO VAN

FCA, Australian Franchise Registry

Included in turnkey purchase price

$119,500+GST (incl.FAST TRACK program) Turnkey business.

JUMP! SWIM SCHOOLS 6/52-56 Paradise Avenue, Miami QLD 4558 Ph: 0477 800 181 Email: amy.hempstead@jumpswimschools.com.au Web: www.jumpswimschools.com.au

JUST CUTS™ Level 1, 4-6 Kingsway, Cronulla NSW 2230 Ph: 0439 130 499 Fax: 02 9527 5144 Email: luke@justcuts.com Website: www.justcuts.com

LA PORCHETTA 192 Mahoneys Road, Thomastown. VIC 3074 Ph: 03 9460 6700 Fax: 03 9460 3099 Email: franchising@laporchetta.com.au Website: www.laporchetta.com.au

LOCAL APPLIANCE RENTALS SOUTHERN GROUP 807, 1 Queens Rd, Melbourne VIC 3004 Ph: 1800 980 650 Fax: 07 3396 8311 Email: sacha@localappliancerentals.com Website: www.localappliancerentals.com.au

LUXAFLEX® Window Fashions Gallery 338 Victoria Road, Rydalmere NSW 2116 Ph: 02 9638 8000 Fax: 02 9638 8832 Email: mark.futeran@hunterdouglas.com.au Website: www.luxaflex.com.au

MAS TAX ACCOUNTANTS 244 Boundary Road, Braeside VIC 3195 Ph: 1300 627 829 Fax: 03 9687 4676 Email: alanmaddick@mastax.com.au Website: www.mastax.com.au

PRIMAL PANTRY 5 Henry Street, Loganholme QLD 4129 Ph: 07 3175 0640 Fax: 07 3423 0600 Email: dean.vella@aktivbrands.com Website: www.primalpantry.com.au

RENT WITH STYLE PO Box 2960, Rowville VIC 3178 Ph: 1300 73 23 83 / 0402 289 668 Fax: 1300 73 23 03 Email: admin@rentwithstyle.com.au Website: www.rentwithstyle.com.au

SCROOZ Unit 1, 709 Gympie Road, Lawnton QLD 4501 Ph: 1300 794 499 Fax: 07 3829 1283 Email: franchising@scrooz.com.au Website: www.scrooz.com.au

SEVEN SEAS SEAFOOD CAFÉ 5 Henry Street, Loganholme QLD 4129 Ph: 07 3175 0640 Fax: 07 3423 0600 Email: dean.vella@aktivbrands.com Website: www.aktivbrands.com

SKEWERZ KEBABZ 5 Henry Street, Loganholme QLD 4129 Ph: 07 3175 0640 Fax: 07 3423 0600 Email: franchise@skewerz.net.au Website: www.skewerz.net.au

SMOOTHIE FACTORY AUSTRALIA L54, 111 Eagle Street, Brisbane QLD 4000 Ph: 1300 880 382 Email: franchise@smoothiefactory.com.au Website: www.smoothiefactory.com.au

SNOOZE PTY LTD 21a Shierlaw Avenue, Canterbury VIC 3126 Ph: 0427 401169 Fax: 03 9888 6327 Email: alistairb@snooze.com.au Website: www.snooze.com.au

THE DRUG DETECTION AGENCY PTY LTD Email: Blair.Larsen@tdda.com Website: www.tdda.com

THE SPORTING GLOBE BAR & GRILL 207/120 Bay Street, Port Melbourne VIC 3207 Ph: 03 9645 4798 Fax: 03 9646 6939 Email: franchise@sportingglobe.com.au Website: www.sportingglobe.com.au/franchise

THERMAWOOD RETRO-FIT DOUBLE GLAZING PO Box 1007, South Melbourne VIC 3205 Ph: 04 555 55 330 Email: info@thermawood.com.au Website: www.thermawood.com.au

THEXTON ARMSTRONG AUSTRALIA & NZ Email: thextonhq@thextonarmstrong.com.au Website: www.thextonarmstrong.com.au/presentation

V.I.P. HOME SERVICES AUSTRALIA Offices in each State Ph: 13 26 13 Fax: 08 8220 4588 Email: info@viphomeservices.com Website: www.vipfranchisesales.com.au

VODAFONE HUTCHISON AUSTRALIA 40 Mount Street, North Sydney NSW 2060 Email: dealer.recruitment@vodafone.com.au Website: www.vodafone.com.au/careers/select-dealer-recruitment

XPRESSO MOBILE CAFÉ PO Box 57, Carina QLD 4152 Ph: 1300 655 559 Email: joinus@xpresso.com.au Website: www.xpresso.com.au facebook.com/XpressoMobileCafe

Business Franchise Australia and New Zealand 97

A-Z DIRECTORY 7-Eleven 7-Eleven is a global success story with more than 53,500 stores in 18 countries worldwide. 7-Eleven continues to grow, with an average of 6 stores opening in the world every day, and you can be part of this growth by becoming a 7-Eleven Franchisee. As a 7-Eleven Franchisee you will benefit from our position as a market leader in

9D Action Cinemas Operated by just one person, 9D Action Cinemas has low overheads, is supported by an experienced franchisor and has an income guarantee to give franchisees confidence in the expected revenues. 9D Action Cinemas offers something very different from the usual juice making, lawn mowing and fast food franchises.

simulator ride

exciting 3D animated movies with surround sound, coupled with ‘active motion’ luxury chairs and dramatic effects such as rain, fog, lightning, wind, snow, touch and bubbles. 9D Action Cinemas provides a ‘turn-key’ business solution, fully established and ready to start trading. The total cost of the investment starts from A$175,000 for a 6 seat stand alone model. Franchise enquiries: Australia: 1300 550 132 (option 4) New Zealand: +61 1300 550 132 E: franchise@9dactioncinemas.com.au See our website: www.9dactioncinemas.com.au

APPLIANCE TAGGING SERVICES

No prior electrical experience is required, just a passion for safety and a commitment to growing your business. With low entry fees, minimal franchisee administration, and average returns between $1,000 and $3,000 per week an ATS franchise may be just the opportunity for you.

With over 12 years’ experience, ATS are Australiawide specialists in Electrical Testing and Tagging in accordance with AS/NZS 3760:2010. Providing expert technical, admin, business and sales support, access to our National client base and comprehensive on and off-site training, ATS are committed to helping its franchisees grow profitable and successful businesses.

BATTERY WORLD AUSTRALIA Join the leading battery retailer in Australia! Battery World is embarking on a new era of rapid expansion and provides franchisees the chance to be your own boss but have the security of a national market leader with 18 years of stable growth behind it. Count the number of batteries you rely on every day. Now, multiply it by 9,117,033* households. Whatever figure you come up with it’s a very compelling reason to join Battery World, the nationally established franchise that a growing number of Australians rely on for their everyday battery needs.

A marvel of modern science

Visit franchise.7eleven.com.au to view more information, see which stores are available for sale and to determine whether a 7-Eleven franchise is right for you.

Being the latest generation in dynamic, multidimensional, visual entertainment rides, 9D Action Cinemas is suitable for both children and adults. Senses are overwhelmed with the stimulating and

Looking for a franchise with on-going repeat business, large territories and access to an existing client base to get you started?

Franchising

convenience retailing. You will be backed by our comprehensive support system. Our system gives you a complete turn-key set up including state of the art POS systems, product innovation and promotion as well as operational support.

ATS were named FCA Emerging Franchisor of the Year 2011 and the FCA National Franchisee of the Year 2013 (less than 2 staff). For further information please contact Steve Wren, National Sales Manager on 1300 287 669, email steve@ats.com.au or visit www.appliancetaggingservices.com.au

Battery World stores carry a product range of over 8,000 batteries for everything from mobile phones and laptops to vehicles and boats. With 85 stores throughout Australia we are the largest and most comprehensive retail franchise network focused on the battery category. Franchises are currently available in NSW, VIC, WA, QLD, SA and TAS for motivated individuals with strong communication skills and a passion for retail. For more information visit: www.franchise.batteryworld.com.au or email: franchise@batteryworld.com.au (*Source: Australian Bureau of Statistics, number of private dwellings in Australia 2011)

Bodyology Franchising

obesity issue in Australia and a ‘can do’ attitude.

The BodyOlogy franchise is a major breakthrough in the weight loss industry. Our model is flexible and simple. Cutting edge technology is the secret weapon, which we have global distribution rights to.

Full training is offered in Melbourne, flights and accommodation for interstate franchisees is all included.

Our franchisees will appreciate an entire industry to themselves, as there are no other competing franchise systems that get results like we do. No prior business experience is required, just a genuine passion to make a difference to our ever expanding

98 Business Franchise Australia and New Zealand

Our numbers are limited in each state capital around Australia, so if Bodyology is for you, please contact: Gwendoline P - 0438 245 555 E - gwendoline@bodyologyfranchising.com.au W - www.bodyologyfranchising.com.au

Brazilian Butterfly Australia Smooth operators wanted! Since 2002, Brazilian Butterfly have been making dreams come true for people who have the passion and drive to succeed. Brazilian Butterfly can give you all the tools and support you need to be your own boss in one of Australia’s largest and most successful beauty salon franchise groups. With more than 30 salons across Victoria, Western

BUCKING BULL Bucking Bull have been perfecting their roasting and carving methods for over 15 years, and are now Australia’s largest and most successful carvery franchise. The brand is 100% Australian owned and operated, with nearly 40 stores across Western Australia, Queensland, New South Wales and most recently, Victoria. Bucking Bull has built its success on a very simple recipeproviding great value ‘home cooked’ style food that people love to eat, serving nearly 3 million customers each year. Bucking Bull commands strong brand awareness, benefits from a unique positioning and is a proven business model.

BURGER URGE TURNING FOOD RETAIL UPSIDE DOWN… Queensland’s fastest growing Gourmet Burger Restaurant Chain is about to turn food retail upside down! With a growing number of stores in prime locations throughout Queensland, Burger Urge is headed for national expansion and is looking for suitable Franchise Partners to join our growth and success. The Burger Urge brand represents fast, fresh, quality gourmet burgers, which is served in a distinctively vibrant, young and urban environment. At Burger Urge, we do not follow a ‘would you like fries with that’ template. We are

business franchise australia and new zealand A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.

City Farmers Dogwash

Australia, Queensland and the ACT, they continue to grow because people right across Australia know and trust the professional and caring service. If you are serious about partnering in a business where you will be rewarded quickly both personally and financially, then you need to take action now! Please contact Adam Simon, CEO: (03) 9756 5700 or 0413 837 737 franchise@brazilianbutterfly.com brazilianbutterfly.com/franchise

Bucking Bull Franchisees benefit from comprehensive training and support with ongoing assistance in sales techniques, local store marketing, cost control, purchasing and financial management We’re on a rampage, recruiting passionate, hard-working entrepreneurs who are keen to carve up a rewarding career. For more information regarding Bucking Bull franchise opportunities, please contact Dean Vella: P: 07 3175 0640 E: franchise@buckingbull.net W: www.buckingbull.net

proud of our unconventional and out-of-the-box approach. As a Burger Urge Franchise Partner, you will receive: • Extensive operational and business training • Fully developed operating systems and procedures • Unique fit-out that is set up and ready for trade • Ongoing support from our senior management and inhouse creative marketing team • Up to 50% finance from ANZ Bank & Silverchef If you have the urge, please contact our Franchise Development Manager Camilla Roberts on 0438 791 984 or email camilla@burgerurge.com.au

For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz

City Farmers comprises 42 specialty large format pet stores throughout Australia with many more planned, a mobile network of over 30 City Farmers Dogwash vans as well as pet insurance business and an online store.

Australia, we’ve got plenty of work to do and are always looking for Franchisees with big smiles and big hearts to come on board and enjoy the ride. • No experience necessary • Full training & support • Strong brand recognition • Exclusive Marketing Zone • All-inclusive start-up package • Work outdoors & be your own boss

Our Franchisees love what they do and are so passionate about the part they play in a dogs’ health and wellbeing. But with more than 3.7 million pet dogs in

For more information call Scott McIntosh on 0402 902 620 or visit www.cityfarmers.com.au/dogwash.

Beginning more than 20 years ago as a small enterprise, City Farmers Dogwash is now part of the City Farmers Group.

Business Franchise Australia and New Zealand 99

A-Z DIRECTORY Clark rubber Clark Rubber is a well-known and iconic Australian business, and has been a part of the retailing landscape for more than 68 years. Clark Rubber commenced franchising in 1995 and since then has grown its store network to more than 60 locations nationwide. In 2006 Clark Rubber was awarded the prestigious ‘Franchisor of the Year’ honour by the Franchise Council of Australia, and today, Clark Rubber is Australia’s leading foam, rubber and pool retailer.

clean green strata Strata Cleaning and Strata Garden Maintenance Franchises Why Clean Green Strata? • We supply the customers from the 1st minute you start • Earn a guaranteed income with work scheduled year round to suit your situation • Work flexible hours to suit your life

business franchise australia and new zealand AUSTRALIA AND NEW ZEALAND

A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.

Crema Espresso The Crema Espresso coffee franchise provides premium coffee and light meals with a focus on personalised service. Established on the Gold Coast, Crema brings together community life with a bright sophisticated shop design. Our extensive training and systems are in place to ensure the best support for Franchisees. Crema Espresso provides a business with supervision and consulting readily available. This includes everything from full operation manuals, point

DOMINO’S PIZZA Domino’s Pizza Enterprises is the master franchisor for the Domino’s Pizza brand in Australia, New Zealand, France, Belgium, The Netherlands and Japan. Across these markets, DPE franchisees currently operate over 1460 stores and sell over 90 million pizzas annually. New franchises are supported through every

100 Business Franchise Australia and New Zealand

Clark Rubber offers a unique business proposition which includes business development, site selection, comprehensive training and ongoing marketing and IT support. Clark Rubber has identified several great opportunities for further growth, and is now looking for friendly, customer service-orientated business people to join its network. A minimum investment of $460,000 plus working capital will provide a turnkey solution. For further information and to register your interest, visit clarkrubber.com.au/franchise or call 13 80 90 or direct (03) 8727 9999

• No weekend or night work so more time with the family • Fully supported by energetic, experienced management team • Recession proof industry • Earn above average returns for the cleaning & gardening industry For more information call 1300 66 11 82 or email franchise@cleangreenstrata.com.au

of sale terminal, uniform package, store design & fit out together with ongoing research and development supported through marketing and advertising. “As coffee lovers we were tired of the same old coffee in dark gloomy cafes. Premium coffee and light meals, like we have in our stores, should be enjoyed in a bright sophisticated café with an atmosphere that creates a laid back, enjoyable meeting place for customers”. Contact: antony@cremaespresso.com.au www.cremaespresso.com.au

step of the process including site selection, lease negotiation, store fit out, comprehensive preopening training, coordination of suppliers, group purchasing power, store appraisals, ongoing training and support, and marketing promotions. Australia: www.dominosfranchise.com.au or call the Franchising Team on 1300 131 888 New Zealand: www.dominospizza.co.nz or call the Franchising Team on 0508 4Franchise

DREAM DOORS A dream opportunity Do you dream of working for yourself and earning a stable income? Make it a reality with Dream Doors – one of Australia’s fastest growing franchises. You don’t need any previous experience. It’s easy and affordable to set up your own franchise, backed by comprehensive support and a proven business model with over 14 years of international success. Be your own boss The unique Dream Doors ‘facelift’ concept makes it

FASTA PASTA With our authentic Italian background and 30 year success story, Fasta Pasta is now Australia’s largest, independently owned group of ‘fresh pasta’ Italian restaurants. An innovative ever-changing menu, with healthy options and a commitment to outstanding service, have all contributed to Fasta Pasta being voted Roy Morgan’s ‘Quick Service Restaurant of the Year’ in 2012. Loved for our affordable, fresh, family meals in relaxed fully licensed surroundings, this is a great

FASTWAY COURIERS AUSTRALIA

possible for Aussies to achieve a ‘new’ kitchen for a fraction of the usual cost, by replacing doors, drawer fronts and benchtops. The market response has been extremely positive, with some Dream Doors operators exceeding $400k gross profit in their first year. Call today and make your dream a reality. For more information contact Cam Hadlow on: T: 1 800 373263 E: cam@dreamdoors.com.au W: www.dreamdoors.com.au

opportunity to be part of our winning national organisation. Extensive initial training and ongoing support is provided. New franchisees undergo 12 weeks training in one of our company restaurants covering areas such as, front of house, kitchen (all areas), necessary bookwork, PPS, and Management skills. For more information on joining a successful franchise call 08 8304 8600, email franchise@fastapasta.com.au, or visit our website, www.fastapasta.com.au

• Low start up costs

• Ongoing business support and training • Exclusive territories • A perpetual franchise agreement with no ongoing fees No prior business experience is needed, just a great attitude and an ability to talk to people. So, if you’re ready for a positive change, we’d love to hear from you. Call 1300 FASTWAY or visit us at www.fastway.com.au

• No weekend work

*Conditions apply

business franchise australia and new zealand

Run your own rewarding business and take control of your future as a Fastway Courier Franchisee. As a market leader in nationwide courier services, our multi-award winning franchisees enjoy • Guaranteed income package*

A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.

FASTWAY COURIERS New Zealand Run your own rewarding business and take control of your future as a Fastway Couriers Franchisee. As a market leader in nationwide courier services, our multi-award winning franchisees enjoy: • Guaranteed income packages* • Low start up costs • No weekend work

AUSTRALIA AND NEW ZEALAND

• Ongoing business support and training • Exclusive territories • A perpetual franchise agreement with no ongoing fees No prior business experience is needed, just a great attitude and an ability to talk to people. So, if you’re ready for a positive change we’d love to hear from you. Call 0800 4FASTWAY, or visit us at www.fastway.co.nz *Conditions apply

Business Franchise Australia and New Zealand 101

A-Z DIRECTORY Fitness enhancement personal training 100% private Personal Training Studios and Mobile Personal Trainers. Over 80% of clients we meet with join and go on to spend an average of over $5,000 with us...and we never have to give away free sessions or free trials to get these clients! Our clients are primarily people who don’t like the Gym scene, or simply don’t have time for it, but know they need to get in shape.

GRoutpro Earn between $50 and $200 per hour and get a high return on investment in the booming Home Improvement Industry with LOW SETUP COSTS & little competition. GroutPro specialises in the after-market care of tiles and grout to homeowners and businesses. Offering a range of professional services from stain protection of new tile and grout installations to our flagship grout “colourseal” application which rejuvenates and recolours old grout saving customers time and money without having to re-tile.

With mobile and studio franchisees available, and the option to upgrade from mobile to a fully staffed studio at any stage, we offer an ultra-low cost franchise solution with unlimited growth potential. With amazing head office support (we even take and book your new enquiries when you can’t) and exclusive marketing territories so you will never have to compete with fellow trainers, we help you build a rewarding business and a lifestyle to match. Email: franchise@fitnessenhancement.com Website: www.fitnessenhancement.com

Specialists use GroutPro’s own branded range of professional quality products including cleaners, sealers, tile Anti-Slip treatments and shower glass restoration and sealer coatings. This is a complete package to get you up and running in your own business fast. Call us today for more information.

AUSTRALIA AND NEW ZEALAND

Contact: Geoff Biddle Phone: 07 5515 0119 Email: mail@groutpro.com.au Website: www.groutpro.com.au

HAIRHOUSE WAREHOUSE

Hairhouse Warehouse has become a household

Hairhouse Warehouse, Australia’s leading hair & beauty brand, has huge plans for the next few years to expand with 20 new stores planned to be opened around the country.

name in Australia, with a proven business model

We are looking for passionate people who want to own their own business, work for themselves and take control of their own destiny.

HYPOXI Australia Pty Ltd

that continues to evolve and generate strong returns for franchisees. For more information call 03 9234 2200, email franchising@hairhousewarehouse.com.au or visit www.hhwhfranchising.com.au.

HYPOXI is Europe’s most successful health and weight loss studio concepts. It’s the first weight loss technology to incorporate exercise with advanced vacuum and compression therapy to achieve targeted fat and cellulite reduction.

and New Zealand, and over the past 10 years has developed a studio network of over 80 independently owned and company owned HYPOXI studios; both stand-alone HYPOXI® studios, as well as specialist health, fitness and beauty businesses who have introduced HYPOXI® in to their existing service offering.

HYPOXI® Australia (a division of Ardent Leisure) is the licensed distributor for the HYPOXI® technology throughout Australia

For more information contact: Kellie Wilson – Sales Manager, Australia & New Zealand on Phone: 02 9281 2033

Jim’s antennas

• No Experience Required

Join Australia’s leading Digital TV & Home Theatre installation specialists.

• Paid On the Road Training

Jim’s Antennas is a division of the Jim’s Group of companies- Australia’s leading home services company with over 3500 Franchisees operating throughout Australia across 38 divisions. With a reputation for excellence in customer service, Jim’s Antennas has an excess of work available across Australia and is looking for self-motivated and enthusiastic people to join the team.

102 Business Franchise Australia and New Zealand

• Work Availability Guarantee • Work Where You Want, When You Want • Franchises Available Across Australia Contact Jim’s Antennas today on 131 546 or getstarted@jimsantennas.com.au to find out more and arrange your free trial day on the road. Alternatively visit our website www.jimsantennas.com.au

JIM’S POOL CARE MOBILE POOL SHOPS Join one of Australia’s largest franchise systems and reap the benefits of a strong national brand. Owning a Jim’s mobile pool shop means you can earn money from multiple streams. Not only can you charge for your time you can also 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

Jump! Swim schools

work and gives you scope to grow the business to a level that suits you. Another great bonus is our FLAT franchise fee. Yes, our fee is a flat franchise fee system so you can work hard and earn as much as you like and pay the same flat fee with all training and ongoing support included. We have selected opportunities all over Australia so give us a call and come for a ride along. For more information ph: 131546 or visit www.jimspoolcare.com.au

JUMP! Swim Schools is leading the way in bringing fun, private facilities for our little swimmers to learn the basics away from the busy aquatic centres If you are looking for a flexible lifestyle franchise, in a secure and established industry, with huge market opportunities then this is the franchise for you. Absolutely no experience necessary, and no need to be in the water! Great locations are still available, no experience necessary and a comprehensive training program provided.

Due to the bookings in advance system, the business is easy to manage as well as consistent ongoing support with our proven management systems. To find out more information on a JUMP! Swim Schools Franchise contact Amy Hempstead on: Phone: 0477 800 181 Email: amy.hempstead@jumpswimschools.com.au www.jumpswimschools.com.au www.jumpfranchising.com.au

JUST CUTS™

Just Cuts™ are also excited to announce our kiosk option! With only 49 sites available Australia wide, you can buy yourself a new lifestyle from just $85,000!

Join the largest, most successful hairdressing network in the Southern Hemisphere! Just Cuts™ offers a fixed franchising fee, with flexible finance options and ongoing business and marketing coaching, guidance and support. Did you know that most Just Cuts™ Franchise Owners are not hairdressers and just under half own multiple salons? Why? Because our proven systems, support and training allows your Stylists to easily run the business for you.

LA PORCHETTA La Porchetta is the largest Italian Restaurant Chain in Australia and New Zealand, and love serving quality Italian food with fresh ingredients The first La Porchetta Restaurant was opened in Melbourne’s Italian hub in 1985, and soon it became renowned as a special place to experience good food, love and a passion for life. Currently celebrating 30th years in business, is now looking to expand the network

business franchise australia and new zealand A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.

Just Cuts™ Franchisees also have exclusive access to our professional retail range made in Europe; JUSTICE Professional™. Contact: Luke Manning 0439 130 499 or luke@justcuts.com Website: justcuts.com/franchising LinkedIn: Just Cuts™ Franchising

of franchisees throughout Australia and New Zealand We are looking for passionate food lovers with a strong work ethic and drive to join our family. You bring the dream and La Porchetta will provide the recipe for success. For more information T: (03) 9460 6700 E: franchising@laporchetta.com.au W: www.laporchetta.com.au

Business Franchise Australia and New Zealand 103

A-Z DIRECTORY

business franchise australia and new zealand AUSTRALIA AND NEW ZEALAND

A-Z Listings re a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.

local appliance rentals Local Appliance Rentals are the largest rentals franchise in Australia today. Since franchising five years ago, there are now more than 100 franchisees in Australia, New Zealand and the United Kingdom. With a wide range of products including TVs, computers, game consoles, home entertainment systems, stereos, coffee tables, dining tables, fridges, freezers, microwaves, washers, dryers, air conditioners, beds, baby furniture, BBQs,

luxaflex® Window fashions Join the Luxaflex Dealer Network There are over eight million households in Australia – think about how many window furnishings that amounts to! The LUXAFLEX® Window Fashions brand is one of the most widely known and respected window furnishing brands in Australia, having sold its products under the Hunter Douglas Group in Australia for over sixty years – and is currently recruiting entrepreneurs looking for a new venture! Hunter Douglas offers an unrivalled partnership to meet

MAS TAX ACCOUNTANTS MAS Tax Accountants offer a range of Accounting, Tax and Financial Services. Most franchisees are CPA or CA qualified and specialise in one or two areas such as Tax, SMSF or Financial Advice. As a brand, MAS Tax Accountants only want to deliver high quality services to Australian families, including individuals and business owners. The benefit of joining the MAS Tax system is the branding, marketing and training available to the franchisees. We have a very hands-on approach, that includes the provision of salespeople and telemarketers permanently

PRIMAL PANTRY Primal Pantry is a new healthy eating café, takeaway and grocer franchise based on a clean approach to eating. Since opening the pilot store in Brisbane in 2013, Primal Pantry has become a phenomenon, gathering a loyal and passionate fan following. With innovative and evolving products that are gluten free, dairy free, contain no added sugar and are never processed, Primal Pantry is fast becoming the undisputed leader in clean dining in the marketplace. With a clean-eating dining experience that is in such high demand, Primal Pantry is now franchising Australia

104 Business Franchise Australia and New Zealand

outdoor furniture, fitness equipment and kids’ play equipment, Local Appliance Rentals helps their customers get what they want. As a home based franchise, Local Appliance Rentals is ideally suited for people looking for that elusive work/life balance. The only requirement is a basic home office and funds available to purchase the rental goods on behalf of the customers. Don’t miss out on your opportunity to join the largest rental franchise company in Australia, visit www.localappliancerentals.com.au/franchising

specific business needs, under our LUXAFLEX® Window Fashions Gallery and LUXAFLEX® Window Fashions Showcase Alliance programs. This includes marketing support, manufacture and production of all products and fabrics, as well as local on the ground sales support. No experience is required to enter the Programs as all training is provided, which focuses on enhancing the customer experience and increasing your profitability. For more information on our programs, contact National Sales Manager, Mark Futeran on 02 9638 8000 or mark.futeran@hunterdouglas.com.au

employed to present, often off-site, to a room full of prospective clients to assist the franchisee get clients. Initially starting in Melbourne, we now have successful franchisees operating their businesses in QLD, NSW, SA and WA. We are always looking for motivated professionals to join our growing network in all states and territories; both those with existing businesses needing access to our services and those starting their business with us. Please contact or CEO Alan Maddick on 1300 627 829 or alanmaddick@mastax.com.au for more information or to discuss the business in more detail.

wide with master franchise territories also available. Backed by the award-winning Aktiv Brands franchise system, all aspects of the Primal Pantry business and operation are supported by the category leading marketing, training and operational systems that Aktiv Brands provides. If you are a motivated entrepreneur, genuinely passionate about the positive difference that beautiful, clean food can make, then please contact Dean Vella: P: 07 3175 0640 E: dean.vella@aktivbrands.com W: www.primalpantry.com.au

rent with style Rent with Style is a proven rental business supplying affordable home appliances, furniture and electronics items. It is easy and very affordable to start your own Rent with Style franchise business. All you need is a phone, computer and vehicle branded to your business and you are up and running...

• You will be helping clients get access to house hold items and technology using a proven rental business model. We Make It Easy For You. How to Start

What You Get

• Franchise Application

• Flexible work hours

• Select your Territory

• Work from home

• Pay $5,000 refundable deposit • Low running costs

• Grab your own territory and start servicing clients immediately.

• Review the legal documents

scrooz

• With highly profitable repeat sales of consumables to the trades and DIY industries • Retailing our premium quality Scrooz® branded product range • With National and webstore driven multi-channel sales • Full training and on-going support provided • Outstanding opportunities for early take up We have limited opportunities for highly motivated people looking for a serious business, so to find out more contact us now for an information pack at franchising@scrooz.com.au

We’re Australia’s biggest online and multi-channel retailer of premium range fasteners, fixings and consumables for tradesmen, light industry and serious DIY’ers and we’re revolutionising fastener retail. We’re growing rapidly and to meet the high customer demand for our products we’re starting the launch and roll-out our network of Scrooz® Trade Centres across Australia right now. Want to earn some real money and get involved in • A $650 billion dollar industry

SEVEN SEAS SEAFOOD CAFE Seven Seas Seafood Café is a re-invigoration of the classic Aussie Takeaway Shop with a whole lot more style, sophistication and value. Seven Seas offers a casual dining experience that meets the continually shifting tastes and rising expectations of today’s consumers, serving a refreshing and modern selection of seafood with a contemporary flair. Seven Seas is 100% Australian owned and

business franchise australia and new zealand A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.

SKEWERZ KeBABZ Skewerz Kebabz is an exciting and innovative retail fast food concept offering authentic Mediterranean cuisine combined with fresh and exciting flavour profiles for the Australian market. Spicing up food courts in shopping centres around Australia, Skewerz is becoming the nation’s fastest growing kebab franchise. Providing an exciting alternative to the traditional kebab, Skewerz serves up a truly satisfying menu supported by a friendly and fun casual dining environment. The unique menu caters for all three primary trading periods and has

• Mobile business

• Sign & start

scrooz f a s t e n e r s

operated and benefits from the award winning franchise support at Aktiv Brands. As a Seven Seas franchisee, you can enjoy the advantages of being associated with a well-known and successful franchise group, supplying you with the tools to help your business grow and prosper. For more information about Seven Seas franchise opportunities, please contact Dean Vella: P: 07 3175 0640 E: dean.vella@aktivbrands.com W: www.aktivbrands.com

AUSTRALIA AND NEW ZEALAND

been strategically designed to ensure the concept will thrive in the competitive food court environment. Skewerz Kebabz is part of the Aktiv Brands group of franchise brands, which means that the model has been developed based on years of experience in the retail fast food franchising sector. For more information regarding Skewerz Kebabz franchise opportunities, please contact Dean Vella: P: 07 3175 0640 E: dean.vella@aktivbrands.com W: www.skewerz.net

Business Franchise Australia and New Zealand 105

A-Z DIRECTORY Smoothie Factory Smoothie Factory is an internationally-known smoothie and juice bar franchise with existing stores in the US, and international development throughout China, India, and Vietnam through our founder Olympic athlete James Villasana & SF Inc. Founded in 1996 with an emphasis on owneroperator success, approximately 95% of all Smoothie Factory locations are operated by the owner. Benefits of Smoothie Factory Franchise Ownership:

frozen yogurt shop, and health supplement retail store under one roof • Continual improvement to the Smoothie Factory franchise system, stores, and overall brand image • Flexible store formats, including the “Minifactory” which allows stores to be placed in food courts and other small spaces • A long and successful history with strategic plans for growth – in business since 1996 and franchising since 1997

• A high-quality product line made with real, fresh fruit – no concentrates, syrups or purees

• Outstanding franchisee training and support

• Not just a smoothie franchise – it’s like owning a juice bar,

Email: franchise@smoothiefactory.com.au

SNOOZE®

• Vendor finance assistance

As one of Australia’s longest-running, most successful and innovative franchised business, Snooze’s experience in the bedding industry is second to none.

• NAB & ANZ accreditation

With over 75 stores nationwide and a commitment to continued growth and development, Snooze offers great return on investment. Snoozes offers a personable, flexible business solution with expertise and support every step of the way, including:

Website: www.smoothiefactoryaustralia.com

• Sales and product training • Business management support • A national marketing program • IT services To take the first step toward a prosperous future contact the Snooze Support Centre on (03) 9830 4166 or visit www.snooze.com.au Email: franchising@snooze.com.au

The Drug Detection Agency (TDDA)

training program; Australasia wide business networks; State Office support and large-scale clients that need services in your area.

The Drug Detection Agency (TDDA) is rapidly establishing itself as the largest and most dominant provider of workplace drug detection services in Australia & New Zealand, with a fast growing list of major corporate clients.

TDDA wants highly motivated and business oriented individuals to join the team to share in the success of this proven business model.

With workplace drug screening becoming a necessity for most businesses for safety, legal and productivity reasons, the opportunities are endless to win contracts with Local, State and National businesses. You will also benefit from a comprehensive 100 day

The SPORTING GLOBE BAR & GRILL® The Sporting Globe Bar & Grill® is an innovative hospitality and sports entertainment brand with a mission to be Australia’s most loved sports bar and grill. Offering high quality casual dining and a social & welcoming bar atmosphere with the ultimate stateof-the-art sports fit out, The Sporting Globe is a great place to eat, drink and enjoy sport. The Sporting Globe business has distinct branding, product specialisation and operating systems. This model offers people who aspire to own their own venue

If you are seeking a next generation business opportunity with huge potential then contact us now to find out more. Contact: Blair Larsen  Email: Blair.Larsen@tdda.com Website: www.tdda.com

many competitive advantages over an independent operator, especially the ability to stay focused on what matters most – the customer. Franchise opportunities exist across Australia, so it’s time to be your own boss with Australia’s leading sports bar brand! Enquire today: Brad Dekkers Franchise Development Manager E: franchise@sportingglobe.com.au P: 03 9645 4798 M: 0400 616 285 W: www.sportingglobe.com.au/franchise

Thermawood

Become part of the success story with:

Thermawood Retro-Fit Double Glazing System is designed to retro-fit double glazing into existing wooden windows. Proven systems and processes with the Thermawood Patented drainage system.

• Full Training and ongoing support • Strong industry Growth • Full Advertising & Marketing • Patented product new to the Australian Building industry. If you are looking for passionate self-motivated people to join the Thermawood team.

Retro-Fitting fitting double glazing into existing wooden windows allows the home owner to retain the character of their windows, be more energy efficient, reduce energy costs and reduce noise. Along with installing double glazing Thermawood installers also fit draft/sound seals to all types of windows including double hung windows, casement windows and doors.

106 Business Franchise Australia and New Zealand

Please contact Thermawood Retro-Fit Double Glazing for more information. Info@thermawood.com.au www.thermawood.com.au 0455 555 330

Thexton Armstrong Become a Thexton Armstrong Business Success Partner! At Thexton Armstrong we are passionate about Business and helping Business Owners. With over 70 Franchisees and growing rapidly across Australia and NZ we believe that we have the No1 Business Consulting System in Australasia. We are looking for people with previous business or corporate experience to join our team. A Thexton Armstrong Business Success Partner works long term with Business Owners to help improve the profit, growth and value of their business.

Our Business Success Programme is designed to offer high end consulting services to small to medium sized businesses. The consulting industry is growing rapidly as most Business Owners do not have the skills to manage or grow their businesses. Only one in five businesses survives over ten years. Enquire now about joining our great network of people. Like to know more? PLEASE LOG ON TO www.thextonarmstrong.com.au/ presentation for a copy of our franchise presentation or email us at thextonhq@thextonarmstrong.com.au

V.I.P. Home Services

• Unparalleled national, state and local support

V.I.P. was the first company to start franchising in home services in 1979.

• Proven marketing, products and systems

V.I.P. has over 1100 franchisees across Australia and New Zealand. As Australia’s oldest and most experienced Home Services Franchisor, multi-award winning V.I.P. has helped over 4,000 just like you to become successful business owners in cleaning, lawn mowing and gardening by providing:

• Affordable franchise options • Everything you need to start a great new life and ‘love your work’ Phone: 13 26 13 Fax: 08 8220 4588 Email: info@viphomeservices.com

• Industry leading training, coaching and mentoring

Website: www.viphomeservices.com.au

Vodafone Australia

commission model with multiple income streams, comprehensive training to get you started and ongoing support from a dedicated Partner Area Manager to help you grow a profitable and successful business. All this with no ongoing fees or royalties!

More than five million people across Australia share, play and do more on the Vodafone network. We’re about to get bigger and even better. We’re looking for new Vodafone Licensees to join us on the next phase of our journey. You’ll have an exclusive relationship with one of the world’s leading telco brands, be a part of a retail brand with over 315 Vodafone branded stores nationally – and enjoy all the benefits that come with it. Key features of the program include a generous

XPRESSO MOBILE CAFE Xpresso Mobile Cafes operate in areas nationally where there are little to no fixed location café options for the workforce in commercial and light industrial precincts. Partnering with Di Bella Coffee ensures the quality of our hot and cold beverage products is unequaled in the mobile café industry. Our customers enjoy frappés, energy drinks, chilled cold brew coffee in a can (KICK), bottled water and light food options such as gourmet cookies and chocolate that are designed to complement the enjoyment of high quality specialty coffee products. The Xpresso Mobile Café high grade, bespoke fitout not

business franchise australia and new zealand A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.

We currently have a number of existing and new store opportunities available in locations around Australia. Interested? Contact Frank Chang on 0414 803 811 or email dealer.recruitment@vodafone.com.au or visit www.vodafone.com.au/careers/select-dealerrecruitment

only utilizes new technology that no longer requires noisy/ expensive generators but also ensures franchisees can display food and beverage items in a large secondary fully integrated fridge. Franchisees are encouraged to source some food and beverage items from local wholesale suppliers rather than through the franchisor; this ensures an increased net profit through reduced costs. Franchisees are supported nationally by both the franchisor and Di Bella Coffee as well as a fully integrated website, call centre, social media and Internet presence. We’re setting the benchmark for coffee vans – will you join us? Contact us TODAY for a detailed information pack: joinus@xpresso.com.au OR 1300 655 559

AUSTRALIA AND NEW ZEALAND

Business Franchise Australia and New Zealand 107

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Vendor finance now available* *Available to approved applicants.

We are looking for dynamic people who love dealing with others and are passionate about retailing. The Snooze brand has a strong history of over 30 years in retailing and has built a very solid franchise system. We provide franchise partners with a stable platform to start their business and offer support across the entire business including: • Marketing and Promotional Support

• Product Development and Buying Power

• Proven operating system that includes comprehensive product and sales training • Business Management support from our on the ground field team • Assistance in site selection and property negotiations • Business finance available to approved applicants

For more details visit snooze.com.au or email franchising@snooze.com.au or call the Support Centre on (03) 9830 4166

It’s amazing what a little snooze can do. snooze.com.au