Business Franchise Aus & NZ - Mar/Apr 2016

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m a g a z i n e

f o r

f r a n c h i s e e s VOL 10 ISSUE 03 mar/apr 2016

AUSTRALIA and NEW ZEALAND

achieve your dream with

consumer rights what you need to know special feature

retail: it’s all in the detail best practice workplace

get the basics right FINANCIAL & legal ADVICE

LATEST NEWS

$4.95 (AUD), $6.95 (nz) inc. gst.

franchise directory

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b us in ess f r an c h i s e m ag azin e aust r a l ia an d n e w z e a l an d

From the

Editor

FREE EXPO TICKETS SEE PAGE 19 FOR DETAILS

BUSINESS FRANCHISE AUSTRALIA and new zealand

If, like many others before, you have made the decision to own your own business, you have taken the first step by picking up this issue of Business Franchise Australia and New Zealand magazine, an invaluable source of information.

Another great source of information is the Franchising & Business Opportunities Expo being held in Sydney 18th – 20th March at the Royal Hall of Industries, Moore Park.

In 2016, Business Franchise readers enter FREE to all expos by simply going to www. franchisingexpo.com.au and entering BFM when purchasing your tickets.

VOLUME 10 ISSUE 3, march / april 2016

If so, you can read more about this award-

publisher:

winning franchise on page 10.

Our feature, starting on page 43 looks at retail franchising. Despite an unchanged growth

Colin Bradbury. colin@cgbpublishing.com EDITOR:

figure for December 2015, according to the

Joanne Tuffy.

Australian Bureau of Statistics, retail is still a growth industry, maintaining the strongest

editor@cgbpublishing.com.au

growth rate of any industry compared to the

SALES DIRECTOR:

previous year. Among our feature writers is

Vikki Bradbury.

Bianca Sevastos from Baybridge Lawyers on

vikki@cgbpublishing.com

page 60. She highlights what you need to be

SALES & marketing manager:

aware of regarding consumer rights under the

Kathleen Lennox.

Australian Consumer Law.

kathleen@cgbpublishing.com.au

As always, there is a great selection of articles

PRODUCTION:

throughout this magazine from leading

production@cgbpublishing.com.au

franchising experts including bankers, lawyers, accountants and consultants. Plus franchise news and updates from the Franchise Council of Australia and the Franchise Association of New Zealand.

There should be something for everybody!

As well as showcasing a range of different franchise systems, from under $10,000 to more than $500,000, you can also speak to experts within the franchising field, as well as attend the scheduled seminars.

If this magazine has piqued your interest, after

Our front cover this issue features Snooze. Do you fancy waking up to a fresh new career?

Joanne Tuffy

downloading your FREE ticket, why not come along to the Business Franchise Magazine

ACCOUNTS: Renee Gould. accounts@cgbpublishing.com.au DESIGN: Jejak Graphics (03) 8790 8006 COVER IMAGE: snooze

stand at the Franchising Expo in Sydney!

TO SUBSCRIBE:

Enjoy the read.

www.businessfranchiseaustralia.com.au

Editor

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

b us in ess f r an c h i s e m ag azin e aust r a l ia an d n e w z e a l an d

Contents march / april 2016 On the Cover Retail: It’s All in the Detail

Achieve your Dream with Snooze

60

54

Best work practice: Get the basics right

Consumer Rights: What you need to know

Lynda McAlaray-Smith, Fair Work Ombudsman

Bianca Sevastos, Baybridge Lawyers

60

20

Cover Story:

64

46

10

In Every Issue

Snapshots

6

What’s New!

18 V.I.P. Home Services

12

People at the heart of a Strong Franchising Sector

16

FANZ News

Announcements from the industry Michael Paul, Franchise Council of Australia

Franchise Association of New Zealand

43

Feature: Retail

44

Feature: Retail News

74

2016 FANZ Conference

90

Behind the Headlines

94

Professional Services Listings

96

Listings

98

A-Z Directory

82 Marsh & Maher Lawyers 88 Theobroma

Franchise Association of New Zealand Jason Gehrke, Franchise Advisory Centre

22 Bucking Bull 28 Home Sorted!

4 Business Franchise Australia and New Zealand

78

Franchisor in Depth

20 Are Franchisees comfortable with too much debt?

Jason Gehrke, Franchise Advisory Centre

32 To Buy or not to Buy

Ian Watt, Westpac

48 How to keep retail businesses profitable

with advanced data analytics

Alec Gardner, Teradata Aus & NZ

52 Australian Customer Service:

Bucking Bull.......................................................... 35, 98 Burger Urge. ................................................................. 98 Chem-Dry Australia.......................................... 81, 99

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

Clean Green Strata........................................... 35, 99 Crema Espresso........................................................ 99 Domino’s Pizza. ...................................................67, 99

strategy for retailers John Bresolin, BDO

Brian Walker, Retail Doctor Group

68 Procedural fairness explained

Battery World................................................................57

Why do we get it so wrong?

64 Retail is a H2H Business

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

Mike Holtzer, The Retail COO Group

58 Putting the ‘Social’ into a social media

7-Eleven....................................................................51, 98

Michael O’Shaughnessy, HR Central

Dream Doors..............................................................100

88

also in this issue:

58

Expert Advice

Fasta Pasta..................................................................100 Fastway Couriers.......................................... IFC, 100

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

First Class Capital. ..........................................25, 101 Fitness Enhancement Personal Training... 101 Freelease Copiers..................................................... 94 GroutPro. ...................................................................... 101

84 Franchising has Changed

David Banfield, The Interface Financial Group

Harmans Lawyers..................................................... 94

86 Is your franchise on SnapChat?

Hairhouse Warehouse.................................... 2, 101

Matthew Jonas, Topfire Media

HYPOXI® Australia................................................... 102 Jejak Graphics. ......................................................... 107 Jim’s Antennas.......................................................... 102

78 Big Business is possible with

Multi-Unit franchising John O’Brien, Poolwerx

Just Cuts™.................................................................. 102

72

Have your say

Jim’s Pool Care......................................................... 102

Krneta................................................................................71 La Porchetta...................................................... 83, 103

Primal Pantry.............................................................. 103

36 Attracting the right Franchisees

Redcat................................................................................. 1

Rent With Style. ............................................... 89, 103

Peter Fiasco, Hairhouse Warehouse & Jeremy Szelag, FC Business Solutions

Scrooz............................................................................ 104

Profiles 14 Ayers Rock Resort

36

Seven Seas Seafood Café................................. 104 Skewerz Kebabz...................................................... 104 Smoothie Factory.................................................... 104 The Sporting Globe Bar & Grill®..................... 105

26 National Franchise Insurance Brokers

Thermawood.............................................................. 105

40 Snap-on Tools

Top Snap..............................................................31, 105

72 National Drones 76 Franchising Expo

V.I.P. Home Services Fencing & Home Maintenance................................................. OBC, 106 Vodafone.......................................................................106 Xpresso Mobile Café..................................IBC, 106

what’snew!

Smoothie Factory achieve another milestone Popular smoothie franchise from the USA Smoothie Factory, has hit yet another milestone with their recent opening in Westfield Miranda in Western Sydney, NSW, attracting a vast amount of customers.

Originally established in Carrollton, Texas by its founder James Villasana (a former Olympian), Smoothie Factory has since grown into a successful franchise that continues to flourish. Known for providing franchisees with an easy way to open up their own store wherever they want, the company has a low investment cost, making it easy and affordable for franchisees.

Smoothie Factory allows the franchisee to run and operate their own store which in turn helps this franchise to build and maintain a rock-solid brand. This easy and affordable fast growing retailer is well known for its nutritional smoothies that contain formulas and nutritional boosts, freshly squeezed juices,

Smoothie Factory founder James Villasana (in black top) with Smoothie Factory’s Westfield Miranda store staff

authentic frozen yogurt along with choice of toppings picked from the topping’s bar, light foods, and nutritional products. Smoothie Factory’s main focus is on promoting health, thus pushing the message of ‘No concentrated

Strength of the Australian Franchising Sector on Show Two Australian franchises have been announced as winners of The International Franchise Association’s (IFA) NextGen in Franchising Global Competition, a high honour and further proof of the calibre and ongoing strength of the Australian Franchising Sector.

Representing Australia, the winners - Jai Hobbs, Co-Founder Paleo Café, and Jacob Foster, Managing Director FCF Fire and Electrical - were two out of 20 global winners of the NextGen in Franchising Competition for 2015.

Applications were open to young

syrups’ or ‘flavourings’, with their smoothies and juices proven to have substantial health benefits. www.franchise.smoothiefactory.com.au

entrepreneurs in business for between one and five years with a company that could scale through franchising and who bought forward innovative ideas for existing franchise companies. The competition rewards these entrepreneurs with incredible access to the most successful entrepreneurs, executives, experts and financiers in the franchise industry.

Amongst many major prizes, the two Australian winners will receive a trip to the 2016 International Franchise Association Annual Convention in San Antonio, Texas and USA to attend the NextGen Summit with the FCA funding travel and accommodation costs for this major event.

FCA Chairman Michael Paul congratulated the two Australian winners and said that the representation and participation of the many businesses who entered is proof that the Franchising Sector is booming here in Australia. “The competition is a fantastic initiative which has been brought about as a result of the partnership between the franchising peak bodies, the FCA in Australia and the USA’s IFA and succeeds in engaging young entrepreneurs to bring new ideas and thinking into this great industry,” Michael said.

6 Business Franchise Australia and New Zealand

RFG Achieves 2,500 Outlet Milestone

Australia’s largest multi-food franchisor Retail Food Group (RFG) entered 2016 on a high with the commissioning of its 2,500th outlet.

The Company celebrated the milestone with the opening of Michel’s Patisserie & Café in Maitland, New South Wales in late December. RFG CEO Franchise Andre Nell said the Company’s continued network expansion was being driven by high demand for innovative retail concepts in the domestic market, as well as strong international growth.

“Each of our traditional brands, Brumby’s Bakery, Michel’s Patisserie and Donut King, have developed innovative new retail concepts, focussed on enhancing the customer experience and driving franchisee success,” said Mr Nell.

New Operations Manager Signals Turning Point For Raw Energy Managing Director of Raw Energy, Matthew Hope, said Jay’s new position signalled an exciting period of growth for the brand.

“These new concepts have resulted in an increased appetite for the brands among potential partners looking to invest in a franchised business.”

In addition to organic growth domestically, Mr Nell said RFG’s international operations have supported the Company’s current ambitious growth targets, with highest growth markets including Turkey, Malaysia and China.

“Our Master Franchise Partner for Gloria Jean’s Coffees in Turkey is soon to open the 50th outlet in the region, placing Turkey as the fourth largest region for Gloria Jean’s Coffees across the globe, behind the USA with 60 outlets, UAE with 64 outlets and of course Australia with more than 300,” he said.

Listed on the ASX in 2006 with some 300 outlets, RFG has grown to become a leading global franchisor, with significant growth plans well underway. “RFG’s achievement of its 2,500th outlet commissioning is a major milestone on this journey,” said Mr. Nell.

“Jay has all the right experience and know-how to really drive expansion of the company,” he said, “He has some great ideas and we’re looking forward to working with Jay and seeing what new energy he brings to the company.

One of Queensland’s first healthy food franchises, Raw Energy, has received a significant confidence boost with the appointment of Jay Giles as the company’s new Operations Manager.

“2016 is set to be a big year and our goal is to open eight stores by the end of the year.”

Hailing from the Sunshine Coast, Jay has recently returned from London where he successfully opened, then operated, two cafes in the notoriously tough and competitive market. Since his return to Australia last year Jay, a qualified chef by trade, has been managing openings of Raw Energy franchises in Queensland and New South Wales until his new appointment.

Jay said he was looking forward to the challenges of the year ahead, and in particular to a number of upcoming store openings.

“In March, we’re opening a new store at the University of the Sunshine Coast and down the track we’ll be launching our first corporate store at Kawana Hospital.

“These new locations, positioned within large institutions, signals a new direction for the company, and one which we’re sure will produce dividends.”

Business Franchise Australia and New Zealand 7

what’snew!

Franchising & Business Opportunities Expo returns to Sydney Sydney’s Royal Hall of Industries at Moore Park will be filled with the who’s who of franchising this month, all attending the Franchising & Business Opportunities Expo 18-20 March.

This enterprising event offers visitors a forum to compare and research a diverse range of franchise opportunities, with investment levels from under $10,000 to more than $500,000.

panel sessions with established and successful franchisors sharing their stories and taking questions from the floor.

Readers of Business Franchise magazine receive FREE entry by entering code BFM when purchasing tickets online.

Companies from a wide range of industries will showcase their business concepts, such as V.I.P. Home Services, EmbroidMe, Dream Doors, Refresh Renovations, Tutor Doctor, endota spa, The Coffee Club, Minuteman Press, Skinny’s Grill, Amber Tiles, National Drones, WH Smith and Johnny Rockets to name just a few.

There is also legal and financial advice to buy and set up your new business or franchise, plus free daily seminars delivered by experts on topics relevant to current and prospective franchisees and franchisors.

The seminar program includes the dynamic CEO of Ella Baché Pippa Hallas, Poolwerx’s high profile CEO John O’Brien alongside specialist industry consultants such as Suzanne Jarzabkowska from DC Strategy, The Franchise Shop’s Grant Garraway and Brian Keen from How to Franchise Simply. The Franchise Council of Australia will also hold

Ella Baché’s dynamic CEO Pippa Hallas will share her franchising philosophy in her keynote seminar presentation.

Check out our new look website!

The Business Franchise Australia and New Zealand website brings together prospective franchisees, franchisors, associated businesses and experts from within the franchising community.

Incorporating a significant re-design, the new website makes it easier to access the information you’re looking for. Featuring a selection of the current franchise systems available, and comprehensive, categorised directory of franchises and service providers, we’re sure you’ll agree it’s vibrant and user friendly.

Featuring the latest news plus specialised advice from experts within the franchising industry, this really is your one-stop-shop for all things franchising.

Go to www.businessfranchiseaustralia. com.au and see the difference for yourself!

8 Business Franchise Australia and New Zealand

First Australian gym launches into Thailand gym memberships and personal training,” Brendon said.

“This growth presents great opportunities for our brand, with locals increasingly looking for more convenient fitness options. The combination of our 24/7 access and no lock-in contracts, alongside our Aussie brand, has been a big driver of new sales within the first gym.

“Australia’s focus on healthy living and an active lifestyle holds us in high regard internationally. We’re seeing that consumers in other markets really aspire to this concept, and will embrace the Jetts’ philosophy.”

Australia’s 24/7 health and fitness pioneer, Jetts, is continuing its international expansion, with the opening of its first gym in Bangkok, Thailand. As the only Australian gym brand in Thailand, the fitness chain will develop on the success of its Australian operations, with additional openings planned for Thailand in 2016.

The move marks a significant milestone for the group, which already boasts more than

270 gyms across Australia, New Zealand and the Netherlands since launching on the Gold Coast in 2007.

Jetts founder and managing director, Brendon Levenson, said Thailand was experiencing a growth in its economy, which has placed higher demand for quality fitness services built around convenience and flexibility.

“Thailand is currently witnessing tremendous growth in its middle class segment, bringing with it a demand for fitness services such as

“The Asian market, particularly Thailand, is still very much in its infancy but growing fast.

The chains that dominate are charging high fees and focusing on locking their members into 12 and even 18 month contracts. We simply don’t believe that model is the best for members and instead, aim to provide more people with the freedom of choice when it comes to joining a gym,” Brendon said.

The chain recently expanded into Europe with its first gym opening in the Netherlands, and expects to open 20 gyms across the Benelux region, Thailand and the UK in 2016. Further international expansion is planned throughout Europe and Asia Pacific over the next five years.

Helping kids to gear up for the Sanitarium Weet-Bix Kids TRYathlon Friendly courier experts, Fastway Couriers is helping kids to gear up for the Sanitarium Weet-Bix Kids TRYathlon series by delivering thousands of registration packs to participants. As an official service provider, Fastway Couriers depots across the country will transport TRYathlete kits containing a t-shirt, an event-day bib and other merchandise.

This year, approximately 17,900 kids in Australia are expected to take part in 11 events held across Australia between January and May. The Weet-Bix Kids TRYathlon is a series of non-competitive events run

by Sanitarium Health and Wellbeing Company that encourages kids to be more physically active. The community engagement programme aims to help kids across the country develop self-esteem, improve confidence and achieve their personal best, while having fun with friends.

Richard Thame, CEO at Fastway Couriers says: “At Fastway Couriers, our franchisees are always active, so we’re proud

to support the Weet-bix Kids TRYathlon series that encourages kids across Australia to do the same. With Fastway Couriers’ national network of parcel delivery franchises, we’re able to deliver a TRYathlete kit to each child, to ensure they’re geared up and ready to go for their local event.”

Each location will host two TRYathlons for children aged seven to 15. For kids between seven and 10 years old, the event includes a 75m swim, 3km cycle and 500m run, before crossing the finish line. For 11 to 15 year olds, the event incorporates a 150m swim, 6km cycle, and concludes with a 1km run.

For a complete list of the 2016 Weet-Bix Kids TRYathlon locations and dates and to register visit try.weetbix.com.au

Business Franchise Australia and New Zealand 9

c ov er sto ry: s n o oz e

WAKE UP TO A FRESH NEW CAREER WITH SNOOZE While many people dream of starting up their own business or purchasing a franchise, lack of experience, training and confidence in their own ability often stops them from pursuing that dream.

There is a fear of the unknown, the financial commitment and, of course, the perception that people who own their own business spend every waking hour at work.

Snooze General Manager-Retail, Garry Webb, has heard it all before. ‘I don’t have enough experience’, or, ‘I’ll wait until the kids are a bit older’, or, ‘My marriage won’t cope with the strain of owning my own business.’

However, as Garry points out, success isn’t always about what you know, or where you are in life. It’s about your values, goals and work ethic. With the help of the support team and a strong system, many Snooze Franchise Partners have struck a balance of work and life, and made a success of both.

In part, this is because of the Snooze vision and the importance it places in making the right partnerships with the right people, whoever they are and wherever they come from, and helping them create a successful life, in and out of the store.

“I’m in franchising to be part of a family,” explains Garry, “and to help people make a success of their life, not just their business.”

For Sarah Miller, who lives in Mornington in Victoria, purchasing a Snooze franchise was a positive experience. After working at Snooze head office for two years, Sarah took six weeks off to travel through Europe to think about her career path.

“I always knew I wanted to own my own business, maybe because I come from a long line of entrepreneurs so it seems to be in my blood. From the time I started working for Snooze I really believed in their vision and, when I returned from my holiday, it dawned on me how far we had come in realising that vision, and I wanted in!”

At just 28 years of age, and entirely on her own, Sarah bought Snooze Mornington and hasn’t looked back. Over the last five years, she’s built up a great team including two warehouse men and seven part-time sales

10 Business Franchise Australia and New Zealand

people, who are all women. “I didn’t set out to create an ‘all woman’ sales team, it just ended up that way. But it’s been really effective as they’re all highly committed and happy to work flexible hours.”

Having confidence in her team means Sarah can now reduce her hours. She currently works 4.5 days a week, taking Friday afternoons, Sundays and Mondays off to relax and enjoy life. Travel, walks on the beach with her dogs, and time with her nephew are high on her list of hobbies.

In 2012, Sarah also played an integral part in testing and developing a ‘new look’ for Snooze stores, which involved the creation of five bedroom styles, a simplified product offering, the ‘Customise Me’ zone and refreshed point of sale to align each store with customer expectations.

“We trialed the fresh design, new style collections and the ‘Customize Me’ zone at Snooze Mornington,” says Sarah. “We were so successful with these initiatives that we’ve now implemented those changes in every store across the nation.”

Like Sarah, Russell Cooper, who owns Snooze Capalaba and Snooze Helensvale in Queensland, began his Snooze journey

working at Snooze head office. With no formal business degree, Russell has worked in the retail industry for 30 years, including sales roles at Freedom and Ikea, as well as Business Development Manager and National Operations Manager roles at Snooze. For Russell, being a successful Snooze Franchise Partner is all about common sense and having a passion for retail.

“I believe the main attribute a successful Franchise Partner needs is the ability to understand your own weakness, and to then surround yourself with a team who can balance the skill base. Plus, as a team, we always, and I mean always, put ourselves in the customer’s shoes. We try to see everything from their perspective.”

“I always knew I wanted to own my own business, maybe because I come from a long line of entrepreneurs so it seems to be in my blood.”

Sarah Miller and the Store Manager of the Mornington store Christine Thornton

- Sarah Miller

“As a team, we always, and I mean always, put ourselves in the customer’s shoes.

We try to see everything from their perspective.”

Garry Webb believes Russell and his team, including Russell’s son, Kyle, have been successful for two main reasons. “Russell believes in the Snooze system and it shows. He never strays from the formula and embraces every aspect from floor layout to marketing campaigns. Plus he’s passionate about retail and appreciates the value of a customer.”

Russell highly recommends the Snooze Franchise Partner model to anyone interested in starting their own franchise. “Of course you need to work hard but I now enjoy a great work/life balance, which means I have more time to be with my family.”

For Marthese Scott, one of the attractions of becoming a Snooze Franchise Partner was the flexibility. When Marthese and her husband, Tom, opened Snooze Alexandria five years ago, they had four children under eight, including a one-year-old baby. And while Marthese’s background is in the education sector (she was a teacher for 15 years), she believes the trick to succeeding as a Snooze Franchise Partner is planning and evaluating, working within the system, and having a sense of humour.

“Having a good sense of humour is probably the most important thing. We’re running a successful retail store and we have four children so it’s a constant juggle. But I’m proud of our business and our staff, and the passion we all share to always want to do things better.”

Snooze works hard to ensure its Franchise Partners have access to the latest trends, technology and digital developments. This includes the bedMATCH® system, which is only in Snooze stores, that helps customers take the guesswork out of buying a bed, and the award-winning online bedBUILDER® tool, which helps customers design a Snooze bed on their desktop or tablet.

This bed-building tool is integrated in store with the ‘Customise Me’ zone, allowing

Simon Beaty, Managing Director, Russell Cooper’s son Kyle, Russell Cooper, Garry Webb, General Manager-Retail

- Russell Cooper

“I’m proud of our business and our staff, and the passion we all share to always want to do things better.”

- Marthese Scott Simon Beaty, Marthese Scott, Tom Scott, Garry Webb

customers to create and order a bed that’s completely unique to suit their style.

The product on offer is just as exciting. Snooze constantly updates its products to ensure their Franchise Partners are offering fresh new designs in beds, bedroom furniture and the ever-growing kids’ bedroom sector. Like their Franchise Partners, Snooze customers are often juggling work, kids, life and sleep, so Snooze designs furniture for real people living real lives. Quality beds with storage bases, fun trundles for kids, easy to open drawers, style collections and exclusive linen are just part of the Snooze story.

With their exciting product, proven system, brand vision, exceptional customer insights, digital offering and ethical sourcing policy, Snooze has won numerous awards including a top 10 position in the Top Franchise Awards

for the last five years. The team has also won numerous website awards, including the ‘Award of Distinction - Website Visual Appeal’ in 2014.

With 78 stores across Australia and more in the pipeline, there are plenty of franchise opportunities for all types of people at Snooze.

Whether you’re young and buying on your own like Sarah, a father and son team like Russell and Kyle, a husband and wife team with small children like Marthese and Tom, or someone completely different, Snooze could be the fresh new career you’ve been looking for.

For more information contact Bettina Davis, Network Development Manager: E: Bettina.Davis@snooze.com.au W: snooze.com.au

Business Franchise Australia and New Zealand 11

f r an c h i s e c o u n c i l o f aust r a l ia

People at the heart of a strong franchising sector “The core of franchising’s success is simple: it is about people.”

Michael Paul | Chairman | Franchise Council of Australia

Australia’s $144 billion franchise sector is not just an important contributor to this nation’s economy, it also makes a significant social and community contribution.

The core of franchising’s success is simple: it is about people.

Franchising is built on the entrepreneurial success stories of ordinary people taking an idea and turning it into a successful franchised business as they methodically implement the systems and processes that will form the foundations upon which a successful network can grow.

It’s ongoing viability and vitality is due in no small part to the 79,000 franchise business units run by ordinary people – mums and dads, young couples or careerchangers looking for flexibility and financial independence – to whom franchising provides

the opportunity to own and run their own small businesses with the systems, support and marketing reach that come with joining an established franchise brand.

The success of these small businesses is in turn driven by the 460,000 people who are employed directly in franchising – including the many students whose first part time job might be at the franchise business down the road, or apprentices who gain the opportunity to learn their trade in a franchise business.

Indeed, one of the most enjoyable elements of being involved with the Franchise Council of Australia (FCA) is hearing the many individual success stories generated by the sector.

It was particularly pleasing in late 2015 to see two emerging Australian franchise systems, and FCA members, recognised on a global stage, with Jai Hobbs, Co-Founder Paleo Café, and Jacob Foster, Managing Director FCF Fire and Electrical, named as two out of 20 global winners of the International Franchise Association’s (IFA) NextGen in Franchising Global Competition for 2015.

Applications for the competition were open to young entrepreneurs in business for between

12 Business Franchise Australia and New Zealand

one and five years with a company that could scale through franchising and who brought forward innovative ideas for existing franchise companies.

The representation and participation of the many Australian businesses who entered is a testament to the strength of the Australian franchising sector and the opportunities it provides for innovation and entrepreneurship.

The FCA is proud to support the many young franchisors who represented Australia in this competition along their journey as they continue to develop and grow their systems.

The FCA also acknowledges and recognises the hard work and success of franchisees, who are the mainstay of any successful franchise system.

These are people like Britt and Ben Diggins of Bakers Delight, Sturt Mall in Wagga Wagga, NSW, who were named the 2015 Single Unit Franchisee of the Year, two or more staff at the MYOB FCA Excellence in Franchising Awards last year.

Britt and Ben became franchisees eight years ago - at just 18 and 23 years old respectively after Ben not only finished his apprenticeship with Bakers Delight, but then took on management of the franchise that they now own.

Britt says the decision to buy a franchise was easy: “The best thing about a franchise is the support network and Bakers Delight was always going to be our first choice as the brand is well-known and respected. They have a great support network and the franchisees

“The FCA also acknowledges and recognises the hard work and success of franchisees, who are the mainstay of any successful franchise system.” have all been fantastic to us, both before we came into the group and since we’ve purchased the business.

“We’ve got 34 staff on our books, they all get consistent shifts and they’re the backbone of our business. We have a great retention rate and we know that if our staff are happy, our customers are happy. I look at the staff we employed at the start, and those that have moved on and are getting married, starting their own families, it’s wonderful to feel that we’ve been part of their development.

“I love our franchise and we’re very driven, we really do look forward to the next challenge

and we’re very proud of what we’ve achieved; from where we started - so young - to now owning our home, our business and starting a family. We’ve got two beautiful children and the business allows me the flexibility to be able to still work but also stay home with the kids and help them grow and develop,” Britt says.

It’s the FCA’s role to ensure the sector that supports all of these people and livelihoods remains a robust one. We are committed to continuing our efforts in this regard and look forward to hearing and sharing many more franchising success stories throughout 2016.

W: www.franchise.org.au

Business Franchise Australia and New Zealand 13

pr o fi l e : ay er s r o c k r eso rt

light up your next event

Ayers Rock Resort will host its most ambitious event yet, a monumental solar powered art installation from 1 April 2016 to 31 March 2017, adding extra sparkle to any event.

As part of Ayers Rock Resort’s commitment to arts and culture, it’s hosting the biggest Field of Light installation to date at the place that inspired it - Uluru. Internationally acclaimed artist Bruce Munro’s Field of Light, will be installed in a remote desert area near the resort and within sight of the majestic Uluru.

In keeping with the desert’s vast scale, 50,000 slender stems crowned with radiant frostedglass spheres, connected via illuminated optical fibre, will gently bloom as darkness falls over Australia’s spiritual heartland.

Delegates can delve into the experiential

artwork in a number of different ways; from a special dinner under the night sky at Field of Light with inclusions such as a sparkling wine and canapés at sunset accompanied by didgeridoo and Indigenous performance, and a mouth-watering three-course dinner showcasing native bush ingredients; to an exclusive sunrise breakfast experience.

In addition to Field of Light, delegates can enjoy other unique experiences, including camel rides over the red sand dunes, Indigenous cultural experiences and guided tours around the base of Uluru.

Since opening its doors in 2012 Uluru Meeting Place, Ayers Rock Resort’s conference centre, has won two consecutive Australian Tourism Awards in the Business Events category, in recognition of its state-of-theart facilities and range of unique dining and touring options.

The conference complex itself includes two main conference spaces which can host 306 delegates and 420 delegates respectively with theatre style seating. The rooms can be

14 Business Franchise Australia and New Zealand

sub-divided with acoustically rated walls, or opened up to become one common space for exhibitions or trade shows. A light-filled pre-function area adds more flexibility to the complex while a permanent marquee caters for up to 280 guests and an outdoor amphitheatre can host up to 350 guests. Advanced audiovisual equipment is seamlessly integrated throughout.

With easy access from all east coast capital cities, Ayers Rock Resort encompasses a diverse offering of accommodation, from 5-star Sails in the Desert through to the authentic 3.5-star Outback Pioneer Hotel.

This diverse offering ensures all conference markets are accommodated. Outside the Resort’s four hotels, lies a collection of resort and community style facilities that add depth to a delegate’s overall conference experience.

For more information contact: T: 02 8296 8067 E: conferences@voyages.com.au W: www.ulurumeetingplace.com.au

ULURU MEETING PLACE

us Anangu luru

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ULURU MEETING PLACE AT A GLANCE • • •

• • •

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f r an c h i s e asso c iat i o n o f n e w z e a l an d

NEWS

New CEO for Franchise Association of New Zealand Robyn Pickerill is appointed to FANZ as the new CEO, replacing Graham Billings who retired in December after seven years of positive leadership.

achieve their goals and over the next few

Robyn joins FANZ from a background of management, marketing and communication roles across the Photographic, Consumer Electronics, Retail and IT related industries.

Government liaison and opportunities to

As an energetic and commercially astute senior level Marketing and General Manager, Robyn has much experience at driving strategic and marketing initiatives to success.

privilege to be working for FANZ and I will

Robyn is passionate about providing support and structures to assist business owners to

4-5 August 2016

months she hopes to meet members and learn first-hand about the opportunities and challenges which present for the year ahead.

The Franchise Association of New Zealand is a well-respected and high performing association, providing members with credibility, information, representation, network with peers, attend conferences, and participate in the prestigious Westpac Franchise Awards. Robyn says, “It is a do my utmost to continue to develop the Association.”

To contact Robyn Pickerill email: robyn@franchise.org.nz

“It is a privilege to be working for FANZ and I will do my utmost to continue to develop the Association.”

Franchise Association of New Zealand Conference 2016 Trinity Wharf Hotel Tauranga The theme for this year’s conference is ‘Building Your Brand’ and the conference will open with a presentation by Chris Brown, NZ Director of Marketing for one of the world’s leading franchise brands McDonald’s. A great opportunity to learn from the masters of franchising!

Conference registration will include invitations to two social events where delegates can relax, recharge and enjoy their surroundings.

For more information see pages 74-75

16 Business Franchise Australia and New Zealand

Franchise System Setup

Franchisee Training HR Support & Helpdesk Online Operations Manuals Network Development Strategy Executive Recruitment Operational Team Support Digital Marketing Strategy www.fcbs.com.au contact@fcbs.com.au (03) 9533 0028

Quality ISO 9001

s n a ps h ot: V.I.P. h o m e s er vi c es

NO LOOKING BACK Prior to joining the franchise in March 2014 and living in the NE suburbs of Adelaide, Rod and Janet Smith were well aware of the South Australian V.I.P. Home Services brand, with Rod even studying V.I.P. as a case study during his corporate career.

Rod says, “For a number of years we had discussed having our own business but we hadn’t been quite sure what we wanted to do.

We thought that home cleaning would suit our requirements and lifestyle and started to look at a number of the different franchise systems available. Upon comparison between them, V.I.P. won hands down. Streets apart in terms of their professionalism, support and system, in the end it was a no-brainer; V.I.P. suited us right down to the ground.”

Janet, having worked at a senior level for a number of companies, as well as a period being a stay at home mum adds, “Our children were getting older and it seemed a coincidence that the role Rod was in at the time was coming to an end.”

Although saying they would like their own business for a number of years, there was no real impetus to do it but after being made redundant Rod says, “The timing was right and we have not looked back.”

After the initial contact was made to V.I.P., Rod and Janet took time to read and review the information they were given.. “At no time was there any pressure. V.I.P. were very upfront, open and honest and took us through everything,” says Rod. After completing a “V.I.P. Day In The Field” with another couple, Rod and Janet were impressed with what they saw and took the next step by becoming franchisees. Rod says, “We went out with the same couple from the original field day for two weeks training and

Photo credit: Laura Jane Smith

“Although saying they would like their own business for a number of years, there was no real impetus to do it but after being made redundant Rod says, “The timing was right and we have not looked back.” they took us through all the products and processes to become successful franchisees.

“We completed an induction at Head Office which focussed more on the administration side of running the business, including managing our client base, super and costings, etc. We also receive ongoing training for new products and different services that can be offered, such as carpet cleaning.”

Initially starting off by working a four day week, Rod and Janet soon had to increase this to five days once they had built up their client base. Now established, they work a nine day fortnight with their average day starting at 9am and finishing around 3pm. “It’s an ideal job to do if you have dependent children, there’s so much flexibility available; our kids are grown up and independent now but if we’d had known this lifestyle was achievable when they were little, we’d have done it years

18 Business Franchise Australia and New Zealand

ago! You can easily drop them off and pick them up at childcare or school due to the flexibility of your hours,” says Janet.

Rod finishes by saying, “Without exception, we have found that everybody we have dealt with at V.I.P. Head Office has been very friendly and helpful and they really do put the emphasis on the franchisee; helping them build their business as quick and efficiently as possible. We certainly can’t complain about the support and backing we’ve received and we’d recommend it to anybody.”

If, like Rod and Janet, you are interested in finding out more about running your own franchise business or would like to spend some time with an experienced franchisee, simply contact V.I.P. today.

T: 13 26 13 W: www.viphomeservices.com.au

Franchising & Business Opportunities Expo’S 2016: Sydney: 18-20 March

Royal Hall of Industries, Moore Park

Perth: 15 May

Crown Perth, Burswood

Brisbane: 23-24 July

Brisbane Convention & Exhibition Centre, South Bank

Melbourne: 26-28 August

Melbourne Exhibition Centre, South Wharf

TO THE 2016

FRANCHISING & BUSINESS OPPORTUNITIES EXPO’S FOR BUSINESS FRANCHISE READERS!

Don’t pay at the door, entry is free for readers by entering the code BFM when purchasing tickets online.

“Grab your ticket now, it’s really time to stop dreaming and start doing!”

For more information go to

www.franchisingexpo.com.au

CORRECTIVE NOTICE ORDERED BY FEDERAL COURT OF AUSTRALIA

A Correction from A Whistle & Co (1979) Pty Limited False or misleading representations by A Whistle & Co Following legal action by the Australian Competition and Consumer Commission (ACCC) commenced on 1 July 2014, the Federal Court of Australia has found that A Whistle & Co (1979) Pty Limited (ACN 001 267 054) (A Whistle) engaged in false or misleading representations in contravention of section 29(1)(e) of the Australian Consumer Law, being Schedule 2 of the Competition and Consumer Act 2010.

The false testimonials were designed to benefit the business by purporting to be positive customer reviews, when in fact the reviews were posted by A Whistle or some franchisees, and not by genuine customers.

As part of its orders, the Court also: • restrained A Whistle from engaging in similar conduct for a period of 3 years;

A Whistle is the franchisor of the Electrodry business that conducts carpet, drapery, tile, upholstery and mattress cleaning services throughout Australia. The franchisees provide these services across Australia under trading names which incorporate the term “Electrodry”.

• required A Whistle to pay pecuniary penalties in the total amount of $215,000 together with a payment of $10,000 towards ACCC’s costs of the proceeding; and

A Whistle admitted and the Court found that between February and June 2012:

For further information visit www.accc.gov.au or call the ACCC Infocentre on 1300 302 502.

• required A Whistle to publish this corrective notice in the “Business Franchise Australia and New Zealand Magazine”.

a. A Whistle posted false testimonials on a number of internet review websites including www.google.com.au, www.truelocal. com.au, www.womo.com.au and www.yelp.com.au; and b. A Whistle attempted to induce and actually induced its franchisees to post false testimonials on a number of internet review websites including www.google.com.au, www.truelocal. com.au, www.womo.com.au and www.yelp.com.au.

This Corrective Notice has been published by A Whistle in accordance with orders made by the Federal Court of Australia.

e x pert a dvi c e

Are franchisees comfortable with too much debt?

On the first Tuesday of each month, the board of the Reserve Bank meets to decide whether to change interest rates.

As interest rates determine the cost of borrowed money, it’s worth considering how franchisees and small business owners can become too comfortable with too much debt.

To illustrate this concept, let’s start with home loan debt, before moving on to business debt.

For a first time home owner, the process of buying a home is daunting even before coming to terms with the idea of a mortgage lasting 20 years or longer.

20 Business Franchise Australia and New Zealand

Now suddenly the franchisee is in a world of hurt. His profile as a successful businessman takes a hit as creditors move to recover their security, and the businesses - and perhaps even the house from which this all started - are liquidated at fire sale prices.

“With all this externalising of responsibility, the franchisee may never properly come to the realisation that it may actually have been their own fault for borrowing too much money.”

Jason Gehrke | Director | Franchise Advisory Centre

To firstly even qualify for a home loan, the buyer has to scrimp and save to get their five or 10 per cent deposit together, plus demonstrate a sustainable income by which to repay the loan.

If the buyer wants to save money by avoiding the need for loan insurance, then he will scrimp and save even longer to get a 20 per cent deposit (acknowledging of course that the opportunity cost of buying a home sooner may be greater than waiting until an even larger deposit is available).

Either way, the buyer has built-up a deposit in order to qualify for the loan, then presto, they are a home owner.

After some time of home ownership, the property has hopefully gone up in value, and the owner has paid the interest (and hopefully made a dent in the principal amount) on the loan.

Perhaps by this time he is also tired of his job, and looking to get into a business of his own, so starts looking at franchises, and presto (again), finds a franchise he would like to buy.

However to pay for it he needs money. He doesn’t have savings because he’s shovelled all his cash into his home loan, so instead asks the bank to give him a business loan secured against the equity in his home (or may even draw directly from the home loan itself if it provides equity access).

In effect, the buyer has parlayed his initial home deposit into a deposit on his franchise.

He now has a home loan and a business loan/ debt.

Fast forward a year or so, and the buyer – now franchisee – has found a magnificent opportunity to open or buy an additional outlet or territory for his franchise business.

This time, the equity in his home is stretched across a third loan facility, until another year passes when he buys yet another outlet.

With no more equity in his home available to borrow against, the franchisee seeks to fund

100 per cent of the loan for the new business based on the cashflow of the other two existing outlets.

This cycle may be repeated one or more times as the franchisee entrepreneur builds his business empire with the encouragement of the franchisor who also derives benefit from the growth of their network, the comparitive ease of growing with an existing operator than breaking-in a new one, and the growth in royalty income.

Then one day something happens to disrupt the flow of cash that has been sustaining the loan repayments on the business empire, and all hell breaks loose.

Perhaps one of the businesses needs a major refurbishment for which the owner has not made provision? Perhaps some key staff leave and their customers follow? Perhaps a competitor opens near one or more of the outlets? Perhaps access to one of the stores is restricted by road or building works?

Perhaps the franchisee has made investments outside of the franchise (a common trait of multiple-unit franchisees), which may now need an injection of cash for which the business is the only available source of money? Perhaps there has been a relationship breakdown and the business owner needs to pay out a former partner?

In such instances, a business’ cashflow can be put under stress to deal with the loan repayments and other demands imposed on it.

Perhaps, in a moment of inspiration, the owner decides to free-up cash in his business by changing his business loans from principal and interest, to interest only.

And then perhaps there is another setback in one or more of the businesses, and then the franchisee’s cashflow is no longer capable of dealing with his competing demands, and somebody stops getting paid (with the somebody typically being the franchisor, the bank, the Tax Office, suppliers, staff superannuation funds, or any and all of these).

Watching helplessly in the centre of this maelstrom is the franchisee. Like other people in his position before or since, he will blame others for his demise.

• “It was the franchisor’s fault for letting me have too many outlets.

• “It was the bank’s fault for not being flexible enough.

• “It was the government’s fault for charging too much tax.

• “It was the union’s fault for forcing wages too high.

• “It was the landlord’s fault for charging too much rent.

• “It was the supplier’s fault for stopping my credit.”

With all this externalising of responsibility, the franchisee may never properly come to the realisation that it may actually have been their own fault for borrowing too much money, and for not taking proper steps to pay it back as quickly as possible.

So on a regular basis, when the Reserve Bank board considers interest rates each month, ask yourself how comfortable you really are with your level of business debt, and whether continued low interest rates represent an opportunity to borrow more, or pay more back?

Jason Gehrke is the director of the Franchise Advisory Centre and has been involved in franchising for 20 years at franchisee, franchisor and advisor level.

He advises both potential and existing franchisors and franchisees, and conducts franchise education programs throughout Australia, and publishes Franchise News & Events, a fortnightly email news bulletin on franchising issues and trends.

Contact Jason at: T: 07 3716 0400 E: jason@franchiseadvice.com.au W: www.franchiseadvice.com.au

Business Franchise Australia and New Zealand 21

fr a n c h i s o r i n d ep t h : B u c k in g b u l l

From Carvery to CafĂŠ

Bucking Bull’s New Fast Casual Concept

22 Business Franchise Australia and New Zealand

Since 1999, Bucking Bull have been roasting, toasting, glazing, carving, grilling and serving up the country’s favourite home-style meals in food courts around Australia.

Some might call the brand the ‘black sheep’ of the food court, serving slow cooked roasts in what is very much a fast paced environment, but for this Australian grown franchise, roasting continues to be hot business.

Now 16 years and 34 stores after opening in Western Australia, the boutique carvery franchise has launched its newest dining concept, the carvery café.

Make no mistake, you’ll still find the team roasting and toasting, but you can also expect to smell the aroma of fresh coffee beans, as well as other delights synonymous with a relaxing café environment.

Rustic bricks, natural timber finishes and subtle lighting adorn the café fitout, with an ambience that encourages diners to take a break from the hustle and bustle of their day and escape the typically noisy shopping centre environment.

This is the newest manifestation of Bucking Bull and is a glimpse into the national franchise’s direction for future growth.

As Aktiv Brands Executive Director, Dean Vella explains, “the carvery café model is such an important and exciting milestone for Bucking Bull.

“The retail landscape in Australia is evolving

“With the growth of dining in major shopping centres, we’re witnessing a shift in customers’ purchase behaviour. Centres are focusing on food as a destination in itself and expanding the food offering both in the takeaway and dining sector.”

- Dean Vella, Aktiv Brands Executive Director.

quicker than ever before, especially for food retailers,” he said.

“With the growth of dining in major shopping centres, we’re witnessing a shift in customers’ purchase behaviour. Centres are focusing on food as a destination in itself and expanding the food offering both in the takeaway and dining sector.

“As a result, food courts now serve a very functional purpose for busy retail customers.

We’ve started affectionately referring to them as a ‘drive through for shopping trollies’,” Dean said.

“It’s about value, speed of service and consistency of quality in this environment, and our food court model caters to this need exceptionally well and will continue to do so in the future.

“On the other hand, there’s a growing segment of the market who now prefer to stay longer, spend more and treasure the dining experience, even in a shopping centre. These are the customers we’re seeing coming through the doors of the carvery cafe” he said.

Bucking Bull launched the very first carvery café model in November last year in Townsville as part of Fairfield Central’s $24 million stage-two development.

Dean explains that the brand plans to open more similar café sites around the country in 2016, with a vision to have a more substantial presence along the east coast.

“The model we’ve implemented in Townsville can be replicated in most major shopping centres and dining precincts around the country so we’ll definitely be looking to increase our footprint this year, and we are actively looking for appropriate greenfield sites to do so,” he said.

“We already have two sites in Hervey Bay and Yeppoon that we’re looking to match with the right franchise partners.

“When we look to regions such as Perth, where the brand was born, there is a Bucking Bull in just about every major shopping

Business Franchise Australia and New Zealand 23

fr a n c h i s o r i n d ep t h : B u c k in g b u l l second franchise with Aktiv Brands after opening a Skewerz Kebabz in Stockland, Townsville nearly four years ago.

Joining forces with the franchise group was an obvious choice for the ex-mining professional, equipping him with the skills and training he needed to get his business off the ground.

“I’m pretty entrepreneurial by nature, but I had also never run my own business before so franchising just made sense,” he said.

“I knew that I wanted to be in control of my career. It’s not just about being your own boss, it’s about the satisfaction of growing a successful business yourself, being in control of how and where you spend your time,” Andy said.

This year Andy has aspirations to work on his businesses as much as he works in them.

“With two stores now, I can’t be in two places at once, and I’ll work myself to the ground if I try to. It’s about striking a balance, structuring a good system with my team and encouraging them to hone their own skills,” he said. centre food court. It means that if we want to continue to grow in these markets, we have no choice but to look outside of the food court, and to models such as the carvery café.”

As well as obvious aesthetic differences, the carvery café model has required the development of a completely new menu offering. It features classic Bucking Bull menu favourites as well as an expanded full café experience including coffee, sweets, cakes, an extensive all day breakfast menu as well as a more substantial variety of main meals for customers to choose from.

“Our Development Chef has designed a range of fresh and flavoursome meals, developed especially for this carvery café model including eggs benedict, pancake stacks, salt and pepper calamari, and a range of fresh made salads,” Dean said.

“We’ve also expanded on our range of burgers, meals and signature sandwiches.”

The carvery café menu is also set to be more flexible than its food court counterpart, with seasonal menu ranges and a focus on product localisation.

“We want to incorporate as much local produce as we can in our dishes, which means tailoring each café for the local market,” Dean said.

As for Bucking Bull’s range of famous roasts, well they’re proving to be as in demand as ever; “I don’t think I stopped carving once on Fairfield’s opening day,” said Bucking Bull Field Support Manager, Scott Leith.

“We’re dedicated to serving 100 per cent Australian grown roast meats, and that’s something that’s really resonating with the people of Townsville,” Scott said.

The site currently seats 50 guests with an internal dining room as well as an external seating area.

At the helm of the Bucking Bull Fairfield Central café is franchise owner, Andy May. “We had such an incredible response to the café in our opening week. Bucking Bull is a brand that Townsville customers are just so ready for, so it was a case of if I don’t do it, somebody else will,” Andy said.

The Bucking Bull carvery café is Andy’s

24 Business Franchise Australia and New Zealand

Andy’s advice for other ambitious entrepreneurs is to find an industry and a brand that you’re passionate about.

“At the end of the day, you can be taught how to manage your cash flow, how to market your business and even how to slow roast a pork leg, but you need to have the ambition and motivation to turn all of that into a well-oiled machine, and that’s where you find success and satisfaction,” he said.

For more information about Bucking Bull or any of the Aktiv Brands franchises, please contact: T: 07 3175 0640 W: www.aktivbrands.com

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pr o fi l e : n AT I O N A L F R A N CH I SE I N SUR A N CE B ROKERS

How NFIB Simplifies

the franchise Insurance Process

The insurance needs of franchises are unique, as cover is required for both the master franchise and the franchisees’ businesses.

National Franchise Insurance Brokers (NFIB) was formed in 2010 specifically to address the insurance needs of franchises, and has sought to find a better and simpler way for franchisors and franchisees to financially protect their business interests.

The NFIB system streamlines the process of securing insurance cover for franchised businesses through an easy-to-use automated system that meets all insurance compliance requirements.

NFIB’s background and products NFIB is owned and operated by LTM Risk Partners, which has been in operation since the 1970s.

NFIB’s policies are underwritten by insurers approved by the Australian Prudential Regulation Authority (APRA) and include cover for property, public and products liability, business interruption, fire and perils, machinery breakdown, burglary and various other types of business insurance. Workers’ compensation insurance can be arranged in some states as well.

NFIB can also arrange separate personal insurance such as home and contents, boating, life insurance and income protection, offering policyholders the convenience of having their personal and business insurance held in one place.

How NFIB’s system works Under an NFIB managed program, the insurance cover required is negotiated with the franchisor according to the business’s risk profile and financial protection requirements.

The franchisor then endorses NFIB as the preferred insurance provider for their franchisees.

“NFIB is expanding globally in 2016, including opening for business in New Zealand on March 1 by partnering with Rothbury Insurance Brokers.”

When franchisees decide to come on board they only need to hook into the existing system using a few clicks, saving themselves the trouble of sourcing suitable insurance and ensuring that their businesses are fully insurance-compliant.

to NZ as there are many existing franchisor groups that are part of NFIB in Australia that have franchise networks in NZ. This partnership will see both countries being able to work together to expand the services we provide to the franchise market.”

A managed program provides a number of distinct advantages for franchised businesses, including the cost savings that come with group or bulk cover, a simplified process, as well as appropriate and uniform insurance cover throughout a franchise.

Conversations are also underway with potential partners in the UK, Spain, Germany and the Netherlands to represent NFIB in their regions, and Mr Morris has expressed his keenness “to finalise new partnerships in new regions in the northern hemisphere.”

Other benefits include 24/7 online access, common insurance due dates, a fast claims turnaround time, an easy renewal system, comprehensive documentation including Certificates of Currency, and dedicated account executives and customised online sites for each individual franchise.

These expansions will be managed through Worldwide Franchise Insurance Brokers (WFIB) – a global franchise insurance organisation which has been established based on the successful implementation of NFIB in Australia. In the same vein as the NFIB, WFIB provides a streamlined method of securing insurance for franchised businesses across the globe.

Franchisors are also provided with their own dashboard so they can monitor their franchisees’ insurance activities and ensure all policies are up-to-date.

NFIB’s system of insurance is proving very popular, and a number of well-established and well-known Australian franchises have joined the program.

Latest news – global expansion NFIB is expanding globally in 2016, including opening for business in New Zealand on March 1 by partnering with Rothbury Insurance Brokers – a company with branches throughout the North and South Islands.

NFIB Director Darryl Morris said the expansion would provide greater synergy between Australia and NZ. “I am very pleased to now be represented in this region and we are excited about the development of the partnership,” he said.

“It is a natural progression for NFIB to move

26 Business Franchise Australia and New Zealand

Significant growth on home shores As well as international growth, NFIB has also seen significant increases in franchisor client groups here at home, with customers growing at the rate of 20 per cent per annum. In fact, franchising across Australia is growing, with a recent IBISWorld industry report stating that revenue is expected to increase by 2.3 per cent per annum over the next five years.

With the growth of franchising in Australia looking set to continue, NFIB is well placed to continue providing streamlined tailored solutions for Australian franchisors and franchisees into the future.

T: E: W:

1800 776 747 info@mynfib.com.au www.mynfib.com.au

Business Franchise Australia and New Zealand 27

fr a n c h i s o r i n d ep t h : h o m e so rt ed !

HOME SORTED = LIFE SORTED! Do you want to join a strong brand offering a unique service while working within your local community? If helping people feel more relaxed and happy within their environment appeals to you, Home Sorted! is the franchise opportunity you’ve been looking for.

After writing Home Sorted! A Simple & Effective Guide to Organising your Home, mother of three Nina Rosace realised that the concept of a professional home organising service could be turned into a successful business. She then launched her Home Sorted!

Business and commenced organising homes within the Melbourne metro area.

With demand high, following the success of the book within all major department and book stores, and subsequent television and radio interviews, Nina has decided to expand her Home Sorted! business by franchising.

“If you’ve always dreamed of owning your own business, but aren’t sure where to start, you’ve come to the right place. The benefit of franchising Home Sorted! is that you don’t need to start from scratch. I’ve already figured out what works and what doesn’t and have developed systems that you simply need to follow,” says Nina.

Home Sorted = Life Sorted!

The Home Sorted! concept is simple – if people’s lives are organised, they are happier and more productive.

Offering simple and effective organising solutions, a franchisee will work with their clients, helping to create a customised organising system for their home or office.

This allows clients to create free time, to do more enjoyable activities without spending a fortune to get their home in order.

Following an initial phone consultation, the Home Sorted! franchisee visits the home and/ or work place to view any problem areas and discuss a plan of action. Offering solutions

28 Business Franchise Australia and New Zealand

and suggestions for the home and family’s needs, the Home Sorted! franchisee also acts as a personal coach, pushing when needed, stepping back when necessary and providing a guiding hand throughout the process.

Home Sorted! offer de-cluttering and organising services for the home or work place, with minimal cost and effort to the client. Tailored to individual needs, room by room organising within the home includes the kitchen, pantry, laundry, bathroom, bedroom, wardrobe, home office and kids areas. Alongside organising the home, other services offered are home relocations, home packing, pre-sale preparation, renovating and downsizing.

The workplace/office is one area guaranteed to fill with clutter due to the constant paper build up and endless filing. Utilising many years of experience, Home Sorted! will create a work environment tailored to their clients’ needs and set up any office in a well organised and useful manner. This includes archiving old files into neatly labelled boxes for future reference and recycling and re-arranging current filing systems within the office set-up.

INVESTMENT AND ONGOING COSTS Creating a strong franchise offering, Home Sorted! offer a step-by-step process for operating a successful business. Dedicated staff provide ongoing assistance and support every step of the way. With seamless and fully integrated systems, the franchisee can focus on simply servicing their clients’ needs, with the assurance that Home Sorted! are guiding them every step of the way.

With an investment level starting at $19,990 (Interest Free Options available), the Home Sorted! franchise package provides everything a franchisee needs to set up and start operating their business from the very first day.

Franchisees receive a full range of Home Sorted! organising products and a brand new Home Sorted! iPad to make quoting, invoicing and stock control easy. Customised software allows the franchisee to keep the business, stock and clients well organised.

No experience is necessary as franchisees

receive a Home Sorted! Franchise Operating Manual, containing detailed ‘how to’ information, full training and ongoing support to assist with the day-to-day running of the franchise.

A two day training session offers step-by-step business tips as well as one-on-one mentoring and support, which ensures that if franchisees have no experience, they will learn everything that is required to successfully establish their own client base and operate their very own business.

With guidance and assistance on how to use the Home Sorted! business stationery, access to online software and iPad to capture and maintain the business processes, franchisees also receive a 90 day proven marketing action plan, with advertising at a local and national level, to grow their business further.

Working within an exclusive franchised territory and servicing the local community, franchisees can create their own flexible roster, work close to home, all while being part of a strong brand.

“The Home Sorted! concept is simple – if people’s lives are organised, they are happier and more productive.”

Business Franchise Australia and New Zealand 29

fr a n c h i s o r i n d ep t h : h o m e so rt ed !

“Creating a strong franchise offering, Home Sorted! offer a step-by-step process for operating a successful business.�

A fixed fee weekly royalty of $150 plus GST is charged, in exchange for the continuing right to use the operating system, brand trademarks and other intellectual property.

Increasing each year by CPI or 3 per cent (whichever is greater), this royalty contributes to marketing, advertising, ongoing support, brand development, local area marketing campaigns and the continued growth of the Home Sorted! brand.

A FOUR STAGE PROCESS Stage One: Pre-Qualification Once an enquiry is made, a brief Franchise Information Kit is sent, including a Confidentiality Agreement. Once the Confidentiality Agreement is signed and returned, a more in-depth Franchise Information Kit is provided and then followed up with a phone call. Prospective franchisees are then invited to complete an official Application Form to apply for their own Home Sorted! franchise. Once reviewed, an interview is scheduled, which is a great opportunity to get to know each other and answer any further questions.

Stage Two: Reserve Territory and Due Diligence A refundable deposit of $2200 is paid by the franchisee to reserve the territory while completing due diligence on the franchise system. If, within 14 days, the franchisee decides not to proceed any further, the deposit is fully refundable. At this stage all legal documentation is provided by Home Sorted! including the Disclosure Document, a copy of the Franchise Code of Conduct and the Franchise Agreement. At this stage, the franchisee also needs to get independent advice.

Stage Three: Business Plan Review and Approval Once the 14 day period has passed and the franchisee is satisfied with the business offering, the balance is then utilised and the official documentation compiled. All forms are to be returned, signed along with the independent advice form. Once the Franchise Agreement is finalised, another cooling off period of 7 days commences.

Stage Four: Sign Contract, Start training and Launch your Business The date is set for the business launch.

Training is undertaken and the franchise is launched in your very own exclusive territory.

THE IDEAL FRANCHISEE Each franchisee is required to invest their time, work hard and commit to the business system developed, while maintaining the existing high standards.

Home Sorted! are searching for naturally organised and enthusiastic individuals, who take pride in their work. Franchisees need

to be great multi-taskers, have excellent communication skills and be optimistic and energetic. Added to this, a friendly and helpful nature is required.

If this sounds like you, then this is the opportunity you’ve been looking for.

Contact Nina Rosace now on: T: 1300 30 11 77 E: info@homesorted.com.au W: www.homesorted.com.au/new- franchise-opportunity/

30 Business Franchise Australia and New Zealand

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finan c ia l a dvi c e

To Buy or Not to Buy a Franchise

Six reasons as to why you would, or would not, buy a franchise 32 Business Franchise Australia and New Zealand

“Before buying your franchise, talk to your bank.

They have a lot of experience in helping people buy franchises and know the issues you face.”

goods or services offered for sale, restrictions on the method of operation and competitive restrictions, such as the way you establish your selling prices. All these issues should be covered in the contract. If they are not, go back to the franchisor with your questions.

Ian Watt | Senior Business Development Manager - Franchising, NSW & ACT | retail & business banking, Westpac

Look at the downside

Six reasons to buy:

1

Less chance of failure: the survival rate for franchises against small businesses is better by around 77 per cent to 33 per cent.

2

You are buying a developed business idea with proven delivery systems and support behind it.

3 4

You don’t necessarily need specific industry knowledge.

You don’t need extensive business experience as you have access to training, advice, assistance, marketing and advertising.

5

Savings from the franchisor’s centralised bulk purchasing of product, equipment, supplies, advertising.

6

You are operating a tried and tested brand with a proven market position.

Six reasons not to buy a franchise:

1 2 3

Could be more expensive to set up than your own independent business.

Contractual issues need to be carefully considered.

Competitive restrictions on price, type of product sold or service offered and area in which you can operate.

4

A franchise gives you less independence than your own business model.

5

Other franchisees may weaken the brand name and hence adversely affect your business by association.

6

There is a risk your franchisor might fail.

The fine print Your franchise agreement is the legally binding document that cements the relationship between you and the franchisor.

It outlines the rights and obligations of both parties and reflects the outcome of your negotiations.

Go over this document carefully. You are entitled to a 14-day cooling-off period after you have signed, but don’t rely on that to get you out of trouble.

Look for support Franchises are seen to be a popular entry into small business because they offer support for the business owner. Ask the franchisor what kind of assistance they offer. Check to see if they provide a free comprehensive ongoing training program, help with site selection, layout or design of premises, and assistance in negotiating the lease or helping with accounting, bookkeeping or stock purchasing.

Check the contract Check that the franchise contract has not been written to the advantage of the franchisor, and that it doesn’t call for unreasonably high sales quotas from their franchisees or for mandatory working hours. Most franchise agreements will have an expiry date and there may be no guarantee that they can be renewed.

Even if renewal is guaranteed, the terms may not be favourable. Contracts also specify conditions for the cancellation or termination of the franchise by the franchisor and restrictions on the franchisee selling their franchise or otherwise recovering their investment. Remember, that as a franchisee, although it appears that you are your own boss, in fact it is the franchisor who calls many of the shots. This is in order to ensure uniformity across the brand but these controls may severely restrict you from exercising your own business judgements. These restrictions might include issues such as site approval, design or appearance standards, restrictions on

Franchising has a better record of survival than most independent small businesses, but you need to be aware that not every franchise succeeds. It is for this reason that you need to scrupulously evaluate your franchisor, the product or service and the system of distribution.

Follow the money Take time to develop your business plan, outlining your goals, your strategies, your prospects and how you will achieve them.

Each business should have its own unique plan. While it’s good to work from a template, throw out any headings that don’t specifically apply to your business. Don’t treat this as homework, but as a serious analysis of how your business will work. Your plan will help you test your ideas and decide on strategies to reach your goals.

Planning enables you to recognise problems that call for outside sources of information and assistance. The nature of markets and consumer needs change rapidly. Planning cannot predict change, but it can help you to recognise it and to construct your business strategy accordingly.

Planning helps you to achieve smooth growth and to avoid unexpected crises. A business plan enables you to monitor your results against a set of goals and performance standards.

A business plan and cash flow projection will keep you on track. They are vital tools if you want to work smarter rather than harder.

Your plan is your roadmap to success. It needs to be fluid and flexible, reviewed and revised at regular intervals throughout the business year. If at any time you are forced to take a detour in your strategy, your business plan will help you find your way back onto the main road. For help in preparing a plan and to get a useful template that you can adapt to your needs, see the Commonwealth Government’s Business Entry website at www.business.gov.au.

Your banking needs Before buying your franchise, talk to your

Business Franchise Australia and New Zealand 33

finan c ia l a dvi c e

bank. They have a lot of experience in helping people buy franchises and know the issues you face. They have dealt with many franchisors before and will know what you will need to do to get established. They may even be familiar with the one you plan to buy into.

The relationship with your bank will be important to your success. Find out what services they have that can free up your time and improve the efficiency of your business.

Even such apparently simple things as using online banking, and getting advice on how to structure accounts to suit your particular business needs, will free up your time and allow you to work ‘on’ the business rather than ‘in’ the business.

Cash flow: A steady stream Poor cash flow is one of the main reasons that small businesses fail. The important thing to understand is that many profitable businesses can go broke because they didn’t have enough cash flow to support their business in the short term.

A month-by-month cash flow budget will help you forecast whether you have sufficient cash in the bank to pay the bills each month - and help you sleep better at night. A cash flow budget simply records the amount of money that you expect to flow in and out of your business over a given time frame - usually 12 months. This cash flow budget should be based on a series of assumptions about how your business has performed in the past and what you expect to change in the future.

“A month-by-month cash flow budget will help you forecast whether you have sufficient cash in the bank to pay the bills each month - and help you sleep better at night.”

If you are starting a business from scratch and do not have previous records then it is even more important to back up your cash flow assumptions with market requirements, planned fixed expenses and information on similar types of businesses. Make sure you do your research.

Once you have completed a cash flow budget make sure you use it as a living document.

Track your projections against actual receipts and expenses when they are made. This will help keep your finger on the pulse, manage expenses and income and plan for any unexpected issues in advance.

It’s also important to understand where cash can get tied up in your business - primarily stock and debtors. If money in the bank is tight each month you may need to ask yourself some of these questions: • Do you use a cash flow budget?

• Do you make collecting accounts a priority or are you too busy?

• Do you have a clear debt collection system in place?

• Do you need an overdraft facility to smooth out your cash flow?

34 Business Franchise Australia and New Zealand

• How do you manage your stock and do you have too much stock?

For further information about cash flow and the above key questions, obtain a copy of the Westpac cash flow guide and ask your bank for a copy of a cash flow budget and any training they may provide which may help you manage cash flow and improve your business performance.

Ian Watt is the Senior Business Development Manager - Franchising, NSW & ACT. Westpac continues their long-term commitment to franchising in Australia.

The bank has a national network of franchise specialist business bankers who are able to deal with the specific needs of the franchise sector.

Contact Ian at: P: 0419 271 995 E: ianwatt@westpac.com.au W: www.westpac.com.au/business- banking/industries/franchising/

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h av e yo u r say

Attracting the right franchisees

36 Business Franchise Australia and New Zealand

“If a prospective franchisee is looking for some financial security or freedom as part of their decision making, you have to find a way of demonstrating that about your franchise model.”

The franchising industry is growing at a steady pace, in both profitability and size, and with Australia closing in on 1200 franchise systems, the franchising industry has never been as competitive as it is now. So how are the best franchisors attracting new, quality franchisees to their system?

In 2016 it is no surprise that most franchisee recruitment activity is being done online.

Whether it’s digital publications, industry websites, email marketing, or social media sites – it’s critical to have a comprehensive and integrated strategy for each medium.

However, as important as it is to be tech savvy with your recruitment, we cannot forget that it is just as crucial to build an actual relationship with each and every one of your prospective applicants. The best way to do that is to give them the information they are seeking from the get go.

If you only take one tip away from this article,

it’s that content is king. It always has been, and always will be. No matter your advertising budget or target audience – if you only want to attract outstanding leads, your content has to support that agenda.

XGolf – Industry leading product development for over 10 years

We all want to make our lives easier, and franchisors are doing this by automating their processes with services such as online forms, and email responders. But this automation can be the downfall of any recruiter. If a prospective franchisee sends through an enquiry, you only have a very limited time to connect with that person before they leave to search for another franchise. Some systems wait up to a week before responding to leads, and then wonder why the person is no longer interested. They forgot about you!

How are you selling your profitability?

Make sure you have a process in place so that all leads are dealt with immediately, and if that’s not possible make sure it happens within the first 24 hours.

Unique Selling Proposition (USP) – have you defined yours?

Whether you’re the largest retailer in your field, or an up and coming franchise system, all businesses have a unique selling proposition. Your USP is the message that must be conveyed in all of your marketing material. It’s the reason why potential franchisees will view your advertisement, why they will google you, contact you, and ultimately why they will join your franchise system.

A well-defined USP shows potential franchisees the core to your success - whether it’s buying power, franchisee support or a household brand name – you must highlight the USP in all content that you put out to the public.

No matter what stage the franchise is going through the unique selling proposition is always easy to find.

Bing Boy – Unique and exciting product Salsa’s Fresh Mex – Fresh and great tasting food

Australian Skin Clinics – Industry leading in safety and excellence

When you get down to it, a prospective franchisee is looking for financial security.

That’s one of the reason why they are looking at a franchise in the first place. Franchise systems have a higher success rate than independent small businesses. Therefore, if a prospective franchisee is looking for some financial security or freedom as part of their decision making, you have to find a way of demonstrating that about your franchise model.

There are certain limitations around discussing profitability as a franchisor, particularly with the rules around prior representation, however, you need to make prospective franchisees feel at ease that your model fits their expectations.

There are several ways of doing this without breaching any laws. It is important to remember that you are allowed to present real facts, what you cannot do is represent predictions. Therefore, use real facts to present your financial modelling. Prospective franchisees really want to know this, and you can come across as evasive if you don’t have this crucial conversation. It is important to always explain in all of your communication that none of the information you provide should be taken as a predication or guarantee of earnings. You should also mention that, like any business, your business model provides them the basis of creating a great business, but it will be their hard work and dedication that will truly make the business a success.

TIP: Benchmarking against similar sized stores within your system can make prospective franchisees feel more comfortable with your system.

Business Franchise Australia and New Zealand 37

h av e yo u r say

“No matter your advertising budget or target audience – if you only want to attract outstanding leads, your content has to support that agenda.”

Price range for entry – does it matter?

The price range that you advertise your business for sale can determine both the type of person that will be applying, and the investment potential of the person.

Much like some other industries, underquoting is sometimes used to encourage enquires from those looking at a lower investment level, but let’s be honest – what’s that really doing? Your franchise development team are just going to waste time sifting through unsuitable leads that are unlikely to amount to anything.

To stay on the side of safety it is better to overestimate than to underestimate.

Keep in mind that offering a lower entry cost into your system is always a choice the franchisor has. Poolwerx and many other franchise systems give franchisees the opportunity to enter at a lower cost by offering mobile locations, which can then progress into retail stores.

TIP: Make sure that your offer is most appealing to your target market. If that includes displaying an inclusive fee and a higher total price, so be it.

Email Marketing Campaigns Email blasts are seeing increased popularity in the franchise recruitment scene, due to the quality of leads and relatively low costs.

Be on the lookout for databases with a high quality and up to date subscription base. Many lists are full of consultants and members who are not really your target audience, so do your research before committing to these e-blasts.

TIP: The cheapest option may not always be the best option here. Ask whoever you are using how big their databases is and who is their average subscriber.

Be clear with your investment price range, if you can’t enter the business with less than $300,000 make sure that the intended audience are well aware of the number.

So where should all this content be going?

Business for sale websites

The investment cost should give potential franchisees a general idea of what purchasing a franchise with all the included features would cost. It’s not a detailed breakdown of all costs.

As previously mentioned – the majority of franchise recruitment advertising is now online and having multiple online advertising avenues is a must.

External websites can be a great place to advertise business opportunities for sale, however it is easy to get caught up in the hype of the larger market players. There are a

38 Business Franchise Australia and New Zealand

number of online directories that will work.

TIP: Seek Commercial is not your only option. Many other directories have similar monthly page views at a lower cost per month.

“Make sure you have a process in place so that all leads are dealt with immediately, and if that’s not possible make sure it happens within the first 24 hours.”

Traditional media With the rise of the internet, traditional magazines and newspapers have been struggling to keep their market influence.

However, many industry magazines are still the go to place for articles, and relevant information. Does your industry have a dominant magazine?

There is still value in these mediums, however, you shouldn’t expect that you place an ad and watch the leads come in. You need to interact more with these mediums. Most magazines have an online arm, so when using them, ensure you are also connecting with their online audience.

TIP: If you’re paying for an advertisement, ask to be featured for an editorial once in a while. These can often add more weight than a stand-alone advertisement.

Website Is your website highlighting that franchise opportunities exist?

You have a captive consumer who is likely already a fan of your product or service – make sure that they know that they could be your next franchisee.

As mentioned earlier, content is king! And the medium that you will have the most control over will be your website. Therefore, all of the previously mentioned forms of advertising should all be directly linking back to your website in one way or another.

Hairhouse Warehouse has recently launched their own Hairhouse Franchising website that includes a vast amount of information about franchising with Hairhouse Warehouse as well as franchisee testimonials and the contact details of the Franchise Development Team. www.hairhousefranchising.com.au TIP: If your website only focuses on consumers and not on your franchise offer, it may be time to rethink the page design.

Your Customers Have you thought about your customers?

By far your best lead source should be your customers. The brand that does this best is

Subway. Every Subway has napkins and apart from their logo, franchise opportunities are the thing they put on their napkins. Think about it in your business, what’s your napkin?

Think through your business model and think about what is the equivalent in your business model. Quest Apartment Hotels for example have ads and franchise stories in their in-house guest magazine. So think about what your customers are looking at.

talking to prospective franchisees and selling.

There are several cost effective CRM systems out there that will make your processes more streamlined. More importantly, they will help your sales people track their progress in a much better way and not let any leads fall through the cracks. Converting 1 to 2 extra leads as a result of having a good CRM virtually pays for your CRM. TIP: Look for a CRM that can link to your emails so that it is also a repository for all of your communication and documents so you have a clear paper trail with every candidate.

TIP: If you are a retail brand, and use catalogues in your brand, why not have a franchise splash in your catalogue.

Budgeting and marketing Some franchise systems still do not have a dedicated franchisee recruitment budget, and this can cause stress on the development team.

You need to think about franchise development separately from your everyday marketing. Most brands focus their marketing on the consumer, which may be a different audience to your potential franchisee.

Therefore you need to make sure that you are clearly marketing your franchise offer to the correct target audience.

It doesn’t matter how much the budget, what matters is how you use it. Over 12 months a $20,000 budget can get a decent amount of quality leads without too much effort.

Having a dedicated budget also allows the development team to trial and run existing campaigns throughout the year, but it also allows you to track your spend far better and more importantly, track it’s effectiveness.

TIP: Don’t throw out an idea because it didn’t work. A/B test your marketing initiatives to figure out why things are and are not working.

CRM and database Finally, a subject close to this writers heart, invest in a decent CRM database system.

There is nothing worse than having your sales people bogged down in having to work off spreadsheets or an antiquated database; keeping them updated and spending a lot of time doing this rather than being out there

Conclusion There are many different methods and strategies when it comes to franchisee recruitment. At the end of the day what works really well for one brand, may not be as effective for another. There are several factors that will make something work well in one brand versus another.

What might work one month, may see no results the following month. It’s important to have a wide variety of marketing initiatives that are evenly spread out throughout the year.

Peter Fiasco is the National Franchise Development Manager for Hairhouse Warehouse and currently sits on the Franchise Council of Australia, Victorian Committee Board. Peter has more than 20 years of experience with working small and large retail brands.

Jeremy Szelag is the Digital Media Specialist at FC Business Solutions and has operated an online retail store which provided him with valuable marketing, advertising, social media and public relations experience.

W: www.hairhousefranchising.com.au W: www.fcbs.com.au

Business Franchise Australia and New Zealand 39

pr o fi l e : Sna p- o n To o ls

Awarding Success with Snap-on Snap-on Tools is the preferred choice of professional technicians around the world and more than that, Snap-on provides the opportunity to become part of a highly successful franchise network.

“This result is a testament to the strength of the Snap-on business model.”

Snap-on’s 2016 annual Australian and New Zealand Franchise Conference was held at the Melbourne Grand Hyatt in January incorporating the annual Snap-on Franchisee Awards. The level of success clearly demonstrated why the Snap-on business model is a winning formula.

When you consider employees usually have a strong idea of how well franchises are run and managed in the real world as well as their profitability, having employees moving over into the franchise side sends a strong endorsement of the strength of the system.

“It’s satisfying being able to acknowledge those franchisees that have performed well throughout the year, particularly those new to the network,” said Stacey Gilbert, Snap-on National Franchise Manager.

During 2015, a number of Snap-on franchisees were recognised for achieving over $1 million in purchases.

The New Franchisee of the Year award went to Michael Vrouxiou from NSW. Vrouxiou had been a Snap-on Tool Storage Specialist Representative before venturing into the franchise side of the business.

“I’m excited to be awarded as the New Franchisee of the Year. Having worked for Snap-on for some time, I was confident and trusted the franchise system and the results have spoken for themselves,” said Vrouxiou.

“Michael brought enthusiasm and belief in the system into his new business and was willing to learn along the way. We were proud to present him with the award,” said Gilbert.

The Snap-on system was created in 1920 when Joe Johnson not only created the quality Snapon tool range, but also a unique customer relationship focused system, via mobile showrooms (trucks) that regularly visited

40 Business Franchise Australia and New Zealand

“It’s satisfying being able to acknowledge those franchisees that have performed well throughout the year, particularly those new to the network.”

- Stacey Gilbert, Snap-on National Franchise Manager

customers. The system has not fundamentally changed, because it simply works.

“It comes down to our handshake deals. We believe our products and service are the best on the market and the way we sell our product to our customers means they can make money from their purchases whilst using Snap-on’s unique RA programme,” said Gilbert.

The past and the future are equally important for Snap-on. Snap-on has been selling tools the same way for nearly 100 years. With an ever evolving product range and offers and technology that has afforded new opportunities, Snap-on Tools Australia is very proud of their system and excited about the future.

To find out more about a Snap-on franchise, call or head to: T: 1800 762 766 W: www.snapontools.com.au/franchise

A global leader in tools & franchising

A proven & established business model Since

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BE IN BUSINESS WITH THE BEST SNAP�ON TOOLS IS ONE OF THE LARGEST AND MOST SUCCESSFUL FRANCHISES IN THE WORLD AND HAS BEEN OPERATING IN AUSTRALIA SINCE 1988.

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Australia: 1800 762 766 New Zealand: 0800 762 766

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VOL 10 ISSUE 03 march/april 2016

FRANCHISING

retail:

it’s all in the detail!

Business Franchise Australia and New Zealand 43

what’snew!

NMI target retail businesses The National Measurement Institute (NMI), a part of the Department of Industry, Innovation and Science, has recently published their summary of 2014-2015 trade measurement compliance.

As part of a targeted inspection program directed to proper use of scales, NMI inspectors made anonymous ‘trial purchases’ at more than 720 businesses. Inspectors issued non-compliance notices for incorrect use of scales and/or not properly accounting for the weight of packaging at almost a third (241) of those premises. The program identified particular issues among franchise businesses in the confectionary and dairy products (frozen yoghurt) sectors.

In most cases inspectors were able to work with the business to ensure proper procedures were put in place and no further action was taken. Demonstrating the effectiveness of NMI inspections under this program, when follow-up ‘undercover’ purchases were made 87 per cent of previously non-compliant businesses were subsequently found to be compliant. However, repeated or severe breaches resulted in around $40,000 in fines being issued to 47 businesses under this program in 2014-15.

To read the report in full go to: http://www.measurement.gov.au/TradeMeasurement/ NationalData/Pages/default.aspx

Appointment of 7-Eleven Specialist Investigator a position to act as quickly as possible in cases where breaches have clearly occurred.

7-Eleven interim CEO, Bob Baily said “the appointment of the investigator adds an additional layer to 7-Eleven’s compliance protocols, which include store audits, enhanced payroll, timesheet and rostering procedures as well as refreshed training and education for Franchisees and their employees.

7-Eleven Stores Pty Ltd says that it has strengthened its investigative and compliance capability with the appointment of a specialist investigator.

The investigator, who has a law enforcement background looking into criminal and fraudulent activity, is tasked with undertaking inquiries into any suspected serious breaches of workplace obligations, so the company is in

“7-Eleven does not condone the failure to meet workplace obligations including the underpayment of employees by Franchisees and these measures demonstrate our ongoing commitment to stamping out such practices,” Mr Baily said.

7-Eleven is not only committed to ensuring all Franchisee employees are accorded their workplace rights, but by supporting the work of the Independent Panel headed by Professor Allan Fels, is making sure those who have been underpaid receive their entitlements.

To assist the Panel in encouraging claimants

44 Business Franchise Australia and New Zealand

to come forward 7-Eleven has also established a special whistleblower hotline so complaints or claims can be made without any fear of retribution. 7-Eleven will also not tolerate any action by a Franchisee that may intimidate employees or actively attempt to minimise legitimate claims.

7-Eleven Chairman Michael Smith said “The company is making significant progress toward satisfactory remediation and prevention, but we recognise there is more work to be done.

“As Chairman I am sorry for the circumstances and the fact of Franchisee Employee underpayments and I am sorry that those workers have been subjected to it.

“What has occurred is unacceptable and abhorrent and we are building capability internally and utilising external expertise to rectify the impacts of what has occurred and prevent them from happening again,” Mr Smith said.

Bridgestone franchise awards recognise the best of the best Owner Ashley McDougall said the win was a testament to the efforts of his team, including manager Neil McAlpine who has worked at the store for 38 years.

“Neil takes a systematic approach to running the store and does his utmost to make each and every customer feel at home,” Ashley said.

“Ninety per cent of business is from repeat customers and when you see how well Neil and the team treat their customers, it’s not hard to understand why people keep coming back.”

In addition to being named National Franchise of the Year, the store was also inducted into Bridgestone’s Chairman’s Club – an accolade reserved for those stores which deliver the ultimate in customer service, operational excellence and more.

Bridgestone Australia has announced the winners of its annual MasterClass awards, recognising retail outlets across the country for their commitment to customer service and excellence in retailing procedures. The MasterClass awards recognise those Bridgestone stores which achieve the highest standards in customer service, safety, compliance, sales, showroom and workshop management and responsible tyre recycling.

For the third year in a row, Bridgestone Select Coffs Harbour won the top honour – being named Bridgestone’s National Franchise of the Year and taking home a brand new Toyota Hilux as part of the major prize.

Bridgestone Australia and New Zealand Managing Director Andrew Moffatt said the importance of the MasterClass program is twofold. “Not only do our MasterClass awards recognise the hard work and dedication of our people, but the program is also a vital part of ensuring our retail outlets across the country maintain the highest standards in all areas of operation,” he said. “Congratulations to Ashley and his team on being named Bridgestone’s National Franchise of the Year for the third year in a row – it’s an incredible achievement.”

Alongside the national winner, the following stores were announced as Bridgestone’s state franchise of the year retail outlets: QLD: Upper Coomera | SA/NT: Aberfoyle Park (SA) | WA: Malaga | VIC/TAS: Hobart (TAS) | NSW/ACT: Coffs Harbour (NSW)

Retail turnover relatively unchanged in December 2015 The latest Australian Bureau of Statistics (ABS) Retail Trade figures show that Australian retail turnover was relatively unchanged (0.0 per cent) in December 2015, following a rise of 0.4 per cent in November 2015, seasonally adjusted.

In seasonally adjusted terms there were rises in food retailing (0.8 per cent), clothing, footwear and personal accessory retailing (1.1 per cent) and department stores (0.1 per cent). Household goods retailing (-1.0 per cent), other retailing (-0.9 per cent) and cafes, restaurants and takeaway food services (-0.5 per cent) fell in December 2015.

The fall in household goods retailing was the largest of any industry in December. This fall follows large rises in recent months which have contributed significantly to stronger rises in total retail turnover. Despite the fall in December this industry maintains the strongest growth rate of any industry compared to this time last year, rising 6.3 per cent compared to December 2014.

In seasonally adjusted terms, there were rises in the Australian Capital Territory (2.4 per cent), Queensland (0.2 per cent), New South Wales (0.1 per cent), South Australia (0.2 per cent) and the Northern Territory (0.3 per cent). There were falls in Western Australia (-0.6 per cent), Victoria (-0.1 per cent) and Tasmania (-0.6 per cent).

The trend estimate for Australian retail turnover rose 0.3 per cent in December 2015, following a 0.3 per cent rise in November 2015. Compared to December 2014 the trend estimate rose 4.0 per cent.

Online retail turnover contributed 3.0 per cent to total retail turnover in original terms.

In seasonally adjusted volume terms, turnover rose 0.6 per cent in the December quarter 2015, following a rise of 0.5 per cent in the September quarter 2015. The largest contributor to the rise was Household goods retailing which rose 2.5 per cent in seasonally adjusted volume terms in December quarter 2015.

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RETAIL:

It’s all in the detail!

By definition, retail is the sale of goods to end users, not for resale, but for use and consumption by the purchaser. The retail transaction is at the end of the supply chain.

Manufacturers sell large quantities of products to retailers, and retailers sell small quantities of those products to consumers.

Your product So, as a retailer, or potential retailer, your product is the most important component in your business, right?

True, your product is vital. It should be top quality and something you believe in. But to succeed in retail, you must be a shrewd business person who considers all facets of the business. If you don’t have a sound business plan, a strong marketing strategy and a firm grasp on your financial status – the quality of your product becomes second tier.

A growth industry According to recent Retail Trade figures by the Australian Bureau of Statistics, Australian retail turnover was

46 Business Franchise Australia and New Zealand

FE ATUR E : r e ta i l fr anch isi ng unchanged in December 2015, rose 0.4 per cent in November, which followed a rise in October of the same percentage. Whilst the percentage may seem small in comparison to previous years, it shows that retail is still a growth industry, despite a continuing squeeze on the economy.

Sectors experiencing growth included food retailing (0.8 per cent) and clothing, footwear and personal accessory retailing (1.1 per cent).

Tread carefully Tempting, isn’t it? Do you have visions of owning your own quaint little dress shop in the local village, or a big name coffee house in the flash shopping centre in the city?

Can you get your hands on some of this vast sum of money being handed over by eager consumers?

The answer is yes, but tread carefully. Over the last few years, the global financial crisis has affected nearly every industry throughout the world. Australians are still willing to spend money, but they are much more selective now. Consumers are more conservative, more willing to seek out a ‘good deal’ and more willing to wait for the items they want.

This means retailers are competing in a highly competitive arena as they fight to win the dollars that are being spent.

Add to this the fact that commercial rental rates have gone through the roof, with large shopping conglomerates pushing for leasing rates based not on what the market can

bear, but what they can scrape out of their leasees.

So, if the cost of doing business has gone up, is it worth the risk of entering the retail market now? The answer, again, is yes, but do your due diligence.

Security in franchising This is where the benefits of entering the franchise industry come into play. If you know you want to own a corner bakery, why not purchase a bakery franchise.

It is romantic to envision the sign over your bakery having your own name on it, however this is symbolic of the situation that will follow. You will be on your own.

You will have to develop your business plan, secure funding, choose a site, negotiate your lease, supervise your fitout, formulate a marketing strategy, source your products and then actually run the business. Are you tired yet?

Imagine if all of this work had been done for you already? Well, at least a great majority of the work. This is the beauty of franchising. Retail is romantic, in a sense, but it is also risky. As opposed to the service sector or the work-from-home business options, in retail you have bigger costs and bigger risks.

The strength of experience But don’t despair. Despite the drop in consumer confidence, people are still spending. Perhaps not as quickly or as easily as before – but they are still spending.

Being part of a franchise system that has weathered previous economic storms, and

knowing that you are an integral part of a larger network, can give you the strength and knowledge to not only survive retail lulls, but continue to prosper.

Along with the actual site you eventually choose, hopefully with the help of your franchisors site selection strategy, you also now have the online space to consider.

Online spending According to the NAB Online Retail Sales Index, currently, online retail spending in Australia stands at $18.1 billion to November 2015, which accounts for around 7.3 per cent of traditional retail spending (excluding cafes, restaurants and takeaway food). But this figure is surely poised to keep growing. Social Media is a powerful tool and one that can not be ignored.

The benefits of utilising the social media platform include reaching a large audience to develop and instill brand awareness, increasing the effectiveness of marketing plans and creating an interactive experience for your current and potential customers.

Make it happen In the end, the choice will be yours.

Whether you decide to go forth into the world of retail and whether you choose to do this as part of a franchise, it is ultimately up to you to define your success. You must be passionate about your product, committed to offering the best service to your customers and willing to work hard to make your business successful.

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How to keep retail businesses profitable with advanced data analytics “Whether it is the ability to try on a jacket, hold a product in your hands, or get detailed advice from an assistant, physical stores retain a number of advantages over digital outlets.”

Alec Gardner | General Manager, Advanced Analytics Teradata AUS & NZ

There is no doubt that online retail is growing swiftly.

However, the perception that it is beginning to overtake bricks-and-mortar retail outlets is misleading.

There is a lot of life left in physical retail stores, and new technology, such as data analytics and mobility, is helping to establish a better business case for these shops.

In Australia, research has shown that the general public still favours physical over online stores. The latest research by the Australian Bureau of Statistics (ABS) shows that online retail turnover contributed

just 3.1 per cent of total retail turnover in Australia during July 2015.

Globally, the vast majority (93 per cent) of total retail sales worldwide still take place in-store, and customers are willing to pay 50 per cent more for items they can see and touch.

While online sales are strong, market figures by the National Australia Bank (NAB) suggest they’re not growing as fast as you might think. According to NAB, online sales in Australia actually fell by 1.4 per cent in July last year, compared to the previous month.

Given these trends, it’s no surprise that retail franchises in Australia remain particularly strong, despite weaker growth in other sectors. Research by Griffith University’s Asia-Pacific Centre for Franchising Excellence found that the franchise sector in Australia has experienced net growth in franchise units and sales turnover, particularly in the retail franchises, despite generally sluggish economic growth in the local market.

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Whether it is the ability to try on a jacket, hold a product in your hands, or get detailed advice from an assistant, physical stores retain a number of advantages over digital outlets.

Despite these traditional benefits, it would be foolish to think that the experience, on its own, is enough to protect bricks-andmortar stores from the encroaching online alternatives forever. Online retail is growing and will continue to cut into real stores’ revenue.

So, what does commercial success require for physical stores in an age of online retail?

A good starting point is to have a close look at what physical stores can offer that online stores cannot: physicality and face-to-face advice, and service. Traditionally, one of the strengths retailers have had is the ability to know their customer on a face-to-face level, understand their habits, and preempt their desires. In today’s increasingly crowded, metropolitan society, however, this has become an almost impossible task for physical stores that might have hundreds, or

even, thousands of customers come through each day.

At the same time, it is becoming easier for online stores to understand their customers, as they can easily track a customer’s shopping and purchasing activity on a website.

Fortunately, technology is now providing retailers with new ways to re-discover the physical customer, and understand the customer’s behaviours and desires.

The power of technology Physical retailers have an unprecedented number of digital tools with which they get to know their customers. Data analytics, along with mobility, are perhaps the most powerful tools retailers now have at their disposal to truly unlock the secrets of customer behaviour.

There is an increasing amount of information that bricks-and-mortar retailers can now draw upon thanks to the data-capture capabilities opened up by online channels, loyalty programs, electronic payment methods, beacon technologies, social media interactions, and mobile device activity.

In some ways, the mix of data physical retailers can draw upon is more diverse than much of the information pure online sellers generally use. This means they can increasingly know, rather than infer, how and why customers are behaving. The challenge, however, is to analyse that data effectively and act according to the insights that data delivers.

The core capability that can be leveraged by both online and offline channels to effectively understand all this information is advanced analytics. By using data analytics, retailers can begin to understand what customers want before they ask, and how they’d like to interact before they even walk into the store.

Professional services and analyst firm, PricewaterhouseCoopers (PwC), calls this ‘consumer adaptive retailing’. It is where

“Online retail turnover contributed just 3.1 per cent of total retail turnover in Australia during July 2015.”

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The strength of traditional retail

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businesses provide a seamless customer experience across multiple touch-points by integrating all processes and business systems. However, without adequate data and the analysis tools to understand it, this approach could leave retailers fumbling over how to adapt their approach to each customer.

Many traditional retailers recognise the importance and value of the data produced by digital channels and e-commerce portals, yet few are leveraging its full potential.

Retailers no longer have an excuse for not making the most of the information at their fingertips. They now have the tools at their disposal to integrate data analytics insights into business processes and systems. This way, they can better tailor their product offering, increase relevance and adjust their customer service methods. This tends to engender better customer engagement, improve service level and, therefore, increase sales.

There are four key ways advanced data analytics can transform physical stores’ profitability:

1

Have the right stock in the right place at the right time

Advanced analytics can help retail outlets understand what stock they should have available, and when it should be made available. Advanced analytics can also help inform retailers’ scenarios planning, which provides detailed information for decisionmaking as far-reaching as stock sizes based on customer demographics, outlet locations, and range. Analytics can bring insight to variations in demand and act upon it. In the Australian market in particular, there is a significant opportunity to better optimise ratio pack provision to improve service levels and to reduce markdowns and wastage of over provisioned, irrelevant items.

2

Price it right

Despite the availability of fine, granular data around price and sales, many retail pricing decisions are still based on past experience and spreadsheet analysis of general data.

If retailers use price sensitivity analysis on their fine data, they could be far more precise about how best to adjust prices, by how much, and at what time. This approach to pricing could yield incremental revenue for a bricks-and-mortar retail outlet. In store digital technologies can enable faster turnaround in on-shelf pricing.

“Many traditional retailers recognise the importance and value of the data produced by digital channels and e-commerce portals, yet few are leveraging its full potential.”

3

Maximise the impact of promotions

One third of promotions don’t yield the results expected because of insufficient stock which continues to represent a significant area for optimisation. Promotions should first and foremost be relevant to the customers expressed or predicted need.

In bricks and mortar retail, many are set around special events, such as Christmas, to take advantage of additional foot traffic at those times.

Advanced analytics can give retailers the fine-grain information they need to determine the most appropriate stock levels to align with promotions currently in market, be it Christmas, Easter, holiday seasons, or other special dates in the calendar. Traditional retail modelling techniques can now be significantly enhanced and run at much larger scale to enable wider and deeper data sets to be brought in. This enables retailers to modify analyses to allow for specific anomalies in market conditions that could exist at the time of promotion.

4

Get value for money on marketing spend

Extra marketing spend doesn’t always translate into additional sales. Businesses must understand the factors that contribute to the success of marketing efforts. Advanced data analytics can work to understand how

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much return on investment (ROI) there is for marketing dollars spent and attribute the value across the full lifecycle of a multichannel campaign.

There is an increased amount of data now available to real world retailers thanks to connected business equipment, such as electronic point of sales (POS) tools and inventory management platforms. It should be an easy leap to incorporate advanced analytics and use all of that valuable information to better engage with customers and drive profits.

Alec Gardner is General Manager, Advanced Analytics, at Teradata Australia & New Zealand. He is responsible for the Teradata Advanced Analytics line of business in Australia and New Zealand, incorporating Teradata Aster, Big Data Analytic solutions and the Teradata partnership with key Analytic partners such as SAS. In this capacity, Alec heads an expert team of Data Scientists and Business Analysts.

Teradata (NYSE: TDC) helps companies get more value from data than any other company. Teradata’s leading portfolio of big data analytic solutions, integrated marketing applications, and team of experts can help organisations gain a sustainable competitive advantage with data.

W: www.Teradata.com

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Australian customer service

Why do we get it so wrong?!

“You need to forget what you think you know about your service levels and see it from your consumers’ point of view.”

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And with much anticipation you arrive… but you find yourself instantly deflated by the complete and utter lack of ANY kind of quality of service. It’s a struggle to even get any acknowledgment from staff! So you find yourself standing alone, waiting, wondering why, oh WHY is it so hard to give you people my money!

Service levels in Australia can be mediocre and it is one of the most important challenges we face today. Getting it right is one of the most important keys to success in any consumer facing business.

Why is it so important?

Obviously, poor customer service can destroy a business very quickly, but mediocre service can be just as costly. Providing exceptional customer service can create one of the most valuable marketing tools we have at our disposal – word of mouth. Bad word of mouth can send a business to the point of failure in the blink of an eye and tarnish it forever in the eyes of the customers. Good word of mouth can propel a business into the dizzying heights of success without breaking a sweat. The problem is that as consumers we are geared to talking about our bad experiences. There is a saying in hospitality and retail – “every customer that has a bad experience tells 20 people while a customer that has a good experience might tell five”.

I believe this rings true in all industries, especially in today’s world of online review sites and forums. Now, more than ever we need to work for that good word of mouth.

Your business NEEDS those five people to hear about how great you are, so you need to work for it.

The thing that really annoys me is that the people who are running businesses are consumers themselves! They share these same experiences and same frustrations. So, why can’t we get this right?!

“Service levels in Australia can be mediocre and it is one of the most important challenges we face today. Getting it right is one of the most important keys to success in any consumer facing business.”

Mike Holtzer | Owner | The Retail COO Group

How do we get it right?

• Hire the right people – It’s that simple.

Hire the right people. Hiring people who are naturally geared towards providing exceptional service will get you half way there. You can teach anyone to serve well, but under stress people always revert back to their natural preferences. What you need are employees that revert back to providing excellent service when they are under stress. These people are invaluable to your business - get them on board!

• Mix it up – Even the most customer focussed employee will get bored performing the same monotonous tasks day in and day out. So, mix up the shifts.

Having staff that are trained in multiple areas not only makes them more valuable to you, it allows you to rotate them through different duties during their shifts, keeping them fresh, focussed and poised for excellence.

• Motivate! – This is crucial - you need to find a way to motivate your staff to consistently go above and beyond. This is part of the reason we see such high service levels in other parts of the world. For example the legendary service standards in the US are primarily driven by a tipping culture. Waitresses rely on tips to survive and if they don’t provide exceptional service, they don’t get paid very much at all. While this is an extreme example, it illustrates that with the right incentive, we are all capable of more. If you can find a way to incentivise your staff to go above and beyond, you will undoubtedly see better performance.

• Budget for it – Excellent customer service is essential to growing your business in today’s market but it doesn’t come for free. I have seen so many operators get this wrong. They try to run on a skeleton crew even during peak trading periods in the hope of controlling their labour percentages. In fact they would be much better off concentrating on driving top line sales in peak periods and growing their business. I believe labour costs need

to be seen less as a cost to your business and more as an investment in the growth of your business. It is an investment that will always pay off and needs to be budgeted for. Create that good word of mouth and the sales will follow!

But more than anything else, I think we need to re-evaluate what it is that we are trying to achieve. Essentially we are trying to find a way to have our customers leave feeling something positive. Exceptional customer service is integral to the success of your business but it’s only a small part of something bigger – your consumer experience.

An exceptional consumer experience incorporates exceptional customer service but doesn’t stop there. It starts there and goes way beyond it into the sensory experience of your customers. Getting the lighting and music right can be just as important to your consumer’s experience as your customer service levels. So, you need to revisit your consumer experience through their eyes.

You need to forget what you think you know about your service levels and see it from your consumers’ point of view. You need to see what they see, you need to hear what they hear and you need to feel what they feel when they shop with you.

Herein lies the dichotomy – how can you possibly see the business through their eyes when you work so closely with it? Answer this question and you will discover the key to tackling this issue.

Mike Holtzer is a highly talented COO, with over 25 years of experience in public and private companies spanning over four continents: Australia, North America, Asia and Europe.

The Retail COO Group resolves operational issues for Retailers – Parttime COO’s, Non-executive Directorships, Board of Advice, Forums / Seminars and Operational projects. For more information visit: W: www.theretailcoogroup.com

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We have all been there.

Eagerly out on a shopping spree buying our favourite brands, or maybe finally ordering that special piece of furniture that we have been saving up for, or even heading out to try the new cafe that EVERYBODY in the office has been talking about.

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ACHIEVE A BEST PRACTICE WORKPLACE

BY GETTING THE BASICS RIGHT

“We offer a wide range of free services and educative resources to help you develop the skills needed to confidently manage your employment relationships.”

Lynda McAlary-Smith | Executive Director – Proactive Compliance and Education | fair Work Ombudsman

The retail franchise sector is a significant contributor to the Australian economy and continues to grow – a 2014 report showed that growth in retail franchises in Australia has surpassed other franchise sectors and retail accounts for the highest proportion of new franchise business entrants.

If you are considering purchasing a retail franchise, or are already in the business of operating one, you may be looking at hiring your first employee or taking on additional employees. This is an opportune time to brush up on your knowledge of workplace laws and establish employment practices that will stand you and your business, in good stead.

The good news is there is a wide range of support available to help you. Here are the Fair Work Ombudsman’s (FWO) top four tips to creating and maintaining a best practice workplace:

1

Know where to get help Firstly, it’s important to know where

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to get accurate and reliable advice. Your franchisor is a great starting point. Your franchisor knows your business and will have a good understanding of your employment needs. Importantly, they might already have a number of established employment policies in place, such as an induction policy, to help you and your employees navigate the employment relationship. If your franchisor hasn’t already provided you with this information, it is a good idea to ask if they have any policies or other employment relations support available.

You should also consider joining an employer association in the retail sector. Employer associations are member organisations that offer assistance and advice on a range

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“One of the important things to consider when hiring a new employee is the type of employment status. Should the new employee be engaged on a full-time, parttime or casual basis? ”

of topics, often including employment relations. As these organisations are generally industry-specific, they are able to offer advice tailored to your industry making them a valuable source of information. Lawyers, accountants and HR advisers are other third-party advisers that can offer you expert knowledge on a range of topics relevant to your business operations.

Finally, remember that help is always at hand at the FWO. We offer a wide range of free services and educative resources to help you develop the skills needed to confidently manage your employment relationships.

For instance, our Small Business Best Practice Guide provides an overview of the workplace relations system, relevant to small business operations. It explains minimum employment conditions, record keeping, pay slips, unfair dismissal laws and other responsibilities of employers. We also have a dedicated Small Business Helpline you can call on 13 13 94 (choose option 3).

2

Get the basics right

Now that you know where to get help, it’s time to determine what your employees are entitled to. Minimum wages and conditions for most employees are set out in modern awards. Modern awards apply to employees depending on the industry they work in, or the job they do. The General Retail Industry Award 2010 covers employers and their employees in the general retail industry. This refers to the sale or hire of goods or services to final consumers for personal, household or business consumption. If you are not sure whether this award would apply to the employees in your business, you can find the award at www.fairwork.gov.au/awards and read the coverage clause and job classifications to work out if your employees are covered.

Once you’ve checked award coverage, you need to know what to pay your employees.

The FWO’s pay and conditions tool, PACT,

lets you calculate rates of pay, penalty rates and leave entitlements under the retail award. It is accessible ‘on the go’ via mobile devices making it simpler and faster for you to get wage information for your employees.

PACT can also give you a reference number and lets you save your results so that they can easily be retrieved at a later date. Find the PACT at www.fairwork.gov.au.

To find out what you need to know about minimum employment conditions and your obligations as an employer, take the FWO’s Workplace Basics quiz. Workplace Basics is our online, interactive quiz with multiplechoice questions on topics including pay and awards, leave, and record keeping and termination. At the end of each topic, a customised list of links to relevant resources and information is provided which you can email to yourself so you can easily find these later. Workplace Basics will allow you to identify any gaps in your workplace relations knowledge and provide resources and information to develop in these areas. Visit www.fairwork.gov.au/basicsquiz to assess your workplace relations knowledge.

By signing up for FWO’s My account service you will be able to store and receive personalised workplace information, such as pay guides for the retail award. Through My account you can save results from PACT and our Pay, Shift, Leave, Notice and Redundancy calculators. You can also submit queries and receive responses that can also be saved in My account. You can register for My account on the www.fairwork.gov.au homepage.

3

Establish good employment practices

Once you understand the basics, it’s a good idea to establish employment practices and systems that will help your business run smoothly. At the FWO, we have a variety of tools and resources to help you do this.

For instance, when hiring a new employee there are a number of important decisions to be made. Taking some time to think about aspects of the role, and preparing the right questions to ask potential candidates can dramatically affect the outcome of the recruitment process. One of the important things to consider when hiring a new employee is the type of employment status.

Should the new employee be engaged on a full-time, part-time or casual basis? Each employment type is different with different pay and conditions. It’s important to be aware of those differences when hiring a new employee. Our online learning centre provides a free interactive course on hiring employees, which includes a tool that can help you determine which employment type is best suited for the role you need to fill.

With some simple planning you can ensure that you are prepared for the hiring process, including being aware of what the minimum pay and conditions are for each employment type.

Online learning courses are also available on managing performance and having difficult conversations in the workplace.

These courses take you through activities and interactive scenarios to provide hands-on, skills-based training that fosters good workplace practices. By taking an

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FEATURE : r e tai l fr anch ising online learning course, you can acquire the information and skills that will assist in the management of your employees.

Additional online courses on diversity and discrimination, workplace flexibility, managing people and record-keeping and pay slips will be released this year. Visit www.fairwork.gov.au/learning.

In addition to helping you develop the skills and know-how to manage your employment relationships, we also have a number of guides and templates to assist you. Our downloadable templates can take the stress out of the record keeping that’s involved with hiring employees, pay slips and other common workplace issues. Visit www. fairwork.gov.au/templates.

4

Stay on the front foot and resolve issues early

Finally, it is important to be proactive and stay on the front foot when it comes to the management of employment relationships in your business. You can do this in a number of ways. Firstly, take steps to ensure that you are kept up to date and informed of any changes that impact the retail industry and, as a result, your business. By subscribing to our email updates or our employer newsletter at www.fairwork.gov.au you are ensuring you will be amongst the first to know if

“It is important to be proactive and stay on the front foot when it comes to the management of employment relationships in your business.” any changes or updates have been made to the wages or conditions that apply at your workplace.

Be proactive in resolving any disputes that arise in your workplace. Where a dispute occurs, and it will at some point, it’s important to know how to approach it. The best thing to do is to address it early, and to try and resolve it at the workplace level.

Doing so will not only alleviate the need for intervention from a third party, such as the FWO, but it is also likely to save both your time and money. We know that having a difficult conversation with an employee can be a daunting task. Dealing with these issues before they escalate is not only best practice as an employer, but can also prevent further disputes arising later down the track. Our ‘Difficult conversations in the workplace’ online learning course was developed to help you feel confident in discussing and resolving issues that arise in your workplace before they escalate.

As you now know, there’s plenty of support available to help you navigate the workplace relations system. Not knowing is not an excuse for failing to comply with your obligations as an employer. Failing to comply can expose you and your business

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to significant penalties. For example, the owner-operators of a franchise in Melbourne were fined a total of $110,500 after underpaying employees a total of $83,566 in a nearly two year period.

Be proactive in getting the help you need, get the basics right, take the time to establish good management of employment relations in your business, and stay up to date. It will save you time and money down the track, and will help you build a workforce that performs well and supports your business goals.

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

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PUTTING THE

‘SOCIAL’ INTO A SOCIAL MEDIA

STRATEGY FOR RETAILERS “Establish whether you’re aiming to increase your brand recognition, inform customers of current discounts and promotions or manage customer feedback and complaints.”

John Bresolin | Audit Partner BDO

As the digital world continues to integrate itself into our lives, it’s no surprise this integration is emerging as a prominent part of businesses’ day-to-day operations, and the retail sector is no exception.

Retailers are diving head first into social media to help create brand awareness, launch and run campaigns and, ultimately, improve sales.

In the last decade, social media has moved from an emerging trend to a central pillar of any organisation’s digital marketing strategy, thanks to an exponential increase in use among consumers.

At BDO, we’ve just released our annual Spend Trend* report, which has revealed some interesting insights into how retailers are actively investing in their marketing to increase brand awareness in a bid to attract shoppers to local bricks and mortar stores.

Spend Trend provides an annual health check for Australia’s $292 billion retail

sector by analysing key 2014-15 financial ratios and indicators for 18 ASX-listed retailers, including Wesfarmers (WES) and Woolworths (WLW), as well as 13 US and UK-based retailers.

What we found was that Australian retailers boosted their marketing spend by 35.7 per cent in relative terms between FY14 and FY15, including investment in digital marketing to coincide with an increasingly mobile marketplace.

This effort is not a mere half-asked attempt at engaging with social media, with many retailers now employing dedicated social media staff or appointing a digital marketing department to coordinate these efforts. Tools like Facebook, Instagram and YouTube are being used heavily, particularly in key sales periods like Christmas or school holidays.

This social media surge among Australian retailers has coincided with some encouraging growth in online sales, with many – analysed as part of the Spend Trend report – recording significant double digit growth in relative terms. However, they still have a long way to go if they are to match their international counterparts, whose online sales represent well over 10 per cent of their total revenue.

So while social media is becoming a

58 Business Franchise Australia and New Zealand

fast-growing part of retail businesses, it’s important those giving it a go do so with a measured head, and commit to understanding its full scope before giving the green light.

Perhaps more than any other sector, retailers will need to stay ahead of new trends and meet the changing demands of their customers. Social media can provide insight into these developments, offering platforms where people go to share, like and talk about what they want from a shopping experience.

More importantly, an effective social media strategy that can drive concrete engagement also requires buy-in from senior executives who can offer oversight from across a retail business’ operations.

With that in mind, here are a few points on what executives within your business can do to help drive this development.

1

Ensure your company has an up-to-date social media strategy Social media can be a rabbit warren if your company doesn’t have a clear understanding of what you want to achieve through its use.

Establish whether you’re aiming to increase your brand recognition, inform customers of current discounts and promotions or manage customer feedback and complaints.

Understand that all can be achieved, but only with a defined strategy. Lastly, make sure your strategy is integrated with your broader digital, marketing and sales strategies to not only ensure they don’t contradict one another, but to leverage and complement each other’s success.

Measure – data is gold

Just as you do for almost all other parts of your business, it’s imperative to know whether your social media strategy is effective, so measuring its operation is important. The key is ensuring that what you are tracking fits your objectives. There are a number of recommendations for how to measure your social media return-oninvestment, from number of impressions, tracking traffic through to your website or store and to operational analysis such as number of complaints handled or number of enquiry responses / conversations directly with potential customers. Consider which are most important for the business and best reflect your business goals.

With all of this in mind, a social media strategy is something executives will need to be aware of and involved in if they want to see it add value to their organisation.

The role of social media — both as a tool for communicating with customers and for achieving commercial objectives — is only going to grow in the coming years and businesses need to respond accordingly.

For retail executives, taking the time to understand how their own actions can support a strategy will certainly help the company realise its long-term goals. That requires going beyond the technologies involved and understanding how to drive meaningful engagement with individual users.

“For retail executives, taking the time to understand how their own actions can support a strategy will certainly help the company realise its long-term goals.”

2

Be aware of how social media is changing the way a company communicates with its customers and vice-versa Social media is now a common forum for reviews, feedback and complaints, and as such can quickly damage your brand if you’re not responsive and do not communicate appropriately. Make sure to actively listen and engage with your customers; put a plan in place for how you communicate with the public in various scenarios. Ensure your social media team understands how to respond to both positive and negative social media posts and what policies are in place for formal complaints, product returns or general feedback.

3

Understand your audience

When determining your target market, you must figure out who they are, what social media platforms they prefer and how much time they are spending there. Then you can decide which platforms are the right fit to achieve your company’s goals.

4

Understand your company’s voice and how it is being portrayed through social media If your company’s voice differs across its digital platforms, your brand will be diluted.

Consumers will be confused about what your brand stands for so it’s important your content is harmonious and consistent across all platforms.

John Bresolin is an Audit Partner in BDO’s Sydney office. He has over 20 years of experience and has worked with medium to large, private and publicly listed clients.

John is retail specialist with extensive expertise in supporting retail clients. As an active member of the BDO’s Retail Partner Group, he authors two of BDO’s retail flagship publications - the annual BDO Spend Trend and Changing Tides: BDO Retail Market Update.

BDO offers a wide range of business, accounting and corporate advisory services to large corporate organisations, Government & Public Sector entities, private businesses, entrepreneurs, and individual clients across a wide range of industry sectors.

T: 02 9240 9711 E: john.bresolin@bdo.com.au W: www.bdo.com.au *http://www.bdo.com.au/resources/publications/ retail/spend-trend-2015

Business Franchise Australia and New Zealand 59

FEATURE : r e tai l fr anch ising

5

FEATURE : r e tai l fr anch ising

Franchisees need to beware of consumer rights

under the Australian Consumer Law On 12 January 2016, the Federal Court of Australia (“Federal Court”) handed down an important judgment which should serve as a timely reminder for franchisees, and its employees, to avoid engaging in conduct that could breach the Australian Consumer Law (“ACL”).

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The Federal Court held that the Harvey Norman franchisee had breached the ACL when dealing with two consumers who each purchased a computer at the Bunavit store.

Employees of the Harvey Norman franchisee made numerous incorrect statements in relation to the consumer’s rights prescribed

by ACL. In this instance, the consumers returned to Harvey Norman to have their defective computers repaired. They were,

The Federal Court held that such statements were false or misleading and resulted in a breach of the ACL guarantee provisions.

The Harvey Norman franchisee should have offered to repair the computers free of charge. Importantly, the Federal Court found that the conduct was so unlawful that it ordered the franchisee to pay a $52,000 penalty to the Australian Competition and Consumer Commission (”ACCC”).

In light of this important judgment, franchisees and their employees need to be aware of the extensive consumer rights under the ACL and the significant ramifications a breach of those rights may have for them.

The most common and important consumer rights and obligations under the ACL are:

Businesses may be consumers The ACL does not only apply to business to consumer transactions. Confusingly, given the name of the Australian Consumer Act, the ACL also applies to business to business transactions with a value of less than $40,000. In those circumstances, it does not matter whether the products or services were supplied to the business for business purposes only.

Guarantees on products and services There are various consumer guarantees which automatically apply to transactions relating to the sale of products or the provision of services. These guarantees must be provided regardless of any additional and/ or voluntary warranties you give to your customers.

In the sale of products to customers, there is an automatic guarantee that these products are of ‘acceptable quality’. Products are of acceptable quality if they are, for instance, fit for the purpose for which the products

You are not always required to provide the automatic guarantees. These guarantees do not apply if, for instance: (a) the products have been damaged by the customer and the products do not operate correctly any longer due to the damage caused;

Bianca Sevastos | Partner | Baybridge Lawyers

however, advised that Harvey Norman could not assist them and that they should contact the relevant computer manufacturers to have the defects repaired.

Exceptions

were purchased, free from defects, safe and durable. The nature and price of the products may be taken into account when determining whether products are of acceptable quality. This means that a customer may not expect the same durability for cheaper second hand products than brand new products which are sold at the regular retail price.

When providing services to customers, you automatically guarantee to your customer that they are supplied with due care and skill, are fit for the purpose for which the services were supplied and will be delivered within a reasonable time in the event no time period has been agreed with the customer.

Failure to provide guarantees If you fail to provide any of the mandatory product or service guarantees, your customer may: (a) request that you repair or replace the products free of charge; (b) request a refund for monies paid; (c) cancel the services which you were to supply to them; or in some instances, (d) make a claim for compensation for loss and damage incurred by the customer.

Be aware that you cannot refuse to provide your customers these options by simply referring them to the manufacturer or importer of the products or to your franchisor. The ACL clearly states that it is your obligation as a supplier to offer your customers these options. Customers may have additional options which they can exercise against the manufacturer or importer. As the decision of the Harvey Norman franchisee shows, the Federal Court may find that you have breached the customer’s rights or your obligations under the ACL and, in circumstances where incorrect statements are made about consumer guarantees, even penalise you for those incorrect statements.

(b) you made express statements prior to the sale that the products or service are unsuitable for a particular purpose and the customer later complains that the products or services are unsuitable for that purpose; (c) the customer changed his/her mind about the products or services and wants a refund of the purchase price; or (d) the products or services are worth more than $40,000 and were supplied for business use only.

In these circumstances, you are not required to provide the customer with the right to a repair, replacement, refund, cancellation or compensation.

Warranties In addition to the mandatory consumer guarantees, you may wish to provide additional warranties about the products or services. Warranties are voluntary promises to your customers about the products sold or services provided. These promises can be enforced under the ACL and you must therefore ensure the accuracy of those warranties before providing them to customers.

You may, for instance, make additional warranties about extended service or repair time frames for customers or other particular statements about the characteristics, performance or state of the products.

Misleading or Deceptive Conduct You are not permitted to make any representations or statements about your products or services which are false or incorrect. The ACL provides clear examples of areas in which you are not permitted to make such false or incorrect statements. For instance: (a) false advertisements; (b) engaging in bait advertising to lure customers into buying the products or services;

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“The ACL also applies to business to business transactions with a value of less than $40,000.”

FEATURE : r e tai l fr anch ising “Failure to adhere to the consumer guarantees or making incorrect statements to your customers about their consumer rights could result in damage to your reputation, the franchise network’s reputation and unhappy customers.”

Importantly, it could even result in lengthy proceedings with those customers or the ACCC resulting in significant claims for compensation or fines.

(c) incorrect labelling or packaging of the products; or (d) false statements about the standard, quality, value, grade, composition, style or model of the products or services, the country of origin, consumer rights or remedies under the ACL or the price of the products or services.

It is important to note that if your business makes any false or misleading statements that this could result in enforcement proceedings from the ACCC where you could be ordered to pay heavy fines up to $1.1 million.

Consumer rights and your obligations must be taken seriously Consumer rights and your obligations are important aspects of doing business in Australia. They are automatic, complex and may be difficult to understand. It is, however, important that you have a basic understanding of those rights and obligations. Failure to adhere to the consumer guarantees or making incorrect statements to your customers about their consumer rights could result in damage to your reputation, the franchise network’s reputation and unhappy customers.

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Bianca Sevastos is Partner at Baybridge Lawyers where she specialises in franchising and licensing. Bianca advises on all aspects of franchising industry compliance with the Code, day-today management of franchise systems and relationships with suppliers and franchisees.

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 dispute, obligations under the Franchising Code of Conduct and the Competition and Consumer Act. T: 02 9232 3511 E: info@baybridge.com.au W: www.baybridge.com.au

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FEATURE : r e tai l fr anch ising

Retail is a H2H business 64 Business Franchise Australia and New Zealand

Retail is detail, retail is a brand game, retail is about the numbers. Heard it all before? Well so have I and I have actually said these very catch cries more than once in my career.

Well here’s a confession: they are all true and paradoxically are actually, in many cases, the undoing of many retail strategists work, because above all else, we are in the business of people – a human to human business (H2H). Our type, style, behaviour,

Brian Walker | Founder and CEO | Retail Doctor Group

amongst the sage advice it simply says that to win a war, we must have a great army.

of retail strategy. Better to learn in the dress rehearsal than on opening night.

Again, how many strategies have we witnessed that fill in the people piece as they go along? As we enter 2016, let us take a closer look at five business fitness™ steps to ensure we are effectively utilising the people within our strategies.

There is very strong evidence to show that up to 50 per cent of strategy is rolled out by the CEO and team, endorsed by the board with little or no customer involvement.

The first people fitness piece is to understand in great detail the capability and preparedness of the team as a vital input to the strategic implementation. Forecasting future needs in up-skilling, deployment and succession planning is critically important in the planning rather than implementation phase.

Omni channel deployment is a case in point: what are the influences to the team and their deployment with the introduction of adjunct methods of distribution.

Look to the boards and senior team that have senior HR capability with strong influence and you will see that they “get this piece”.

motivation, bias, the conditionality upon which we accept or reject, the messages we hear as distinct from what we are told... all these elements contribute to forming our uniqueness.

Put another way, more than we give it credit for, strategy is simply about understanding people. To elaborate on this point consider the old multi-channel strategies that focus purely on product, or location. With some exception, we have seen so many of these ‘product push’ strategies invariably fail and often because they are so easily replicated and copied.

The Art of War by Sun Tzu is, in my mind, mandatory reading for ‘Fit’ strategy and

Leading on from this comes fitness step number two, consider the power of your in-store team. The fit retailer understands one of the most powerful weapons in its arsenal is its staff. By investing in increased service levels and staff training, fit retailers generate more motivated and confident employees who in turn generate motivated customers. By measuring your service levels and rewarding excellence, you create a culture of customer service fitness in your retail business, allowing you to trade on the front foot strategically rather than tactically.

The third fitness step concerns the ‘good old customer’ and aren’t they lucky to have us retailing to them?

I’m not sure how many retailers test their strategic implementation with their desired or actual customers. What I can tell you is that this is a significant ‘fitness’ step to ensuring that the desired market provides much needed feedback in the gestation stage

Creating assumptive ‘product push’ methodology that presumes too understand the customer? Saved some money in R&D, and then spend an awful lot more if they have it wrong at the coal face (and some do).

The fourth fitness step is to deeply understand who our customers are with more research and definition than ever before. To be ‘fit for business™’, retailers must think strategically when it comes to connecting with consumers and the key to becoming smarter and fitter as a retailer is how you listen and connect with your shoppers. You need to inspire, lead and manage them in new ways.

Have we understood who our market is and ‘who’ our customer is? What, why and how do we have permission to consider that we actually have this understanding?

It’s also equally apparent that the definition of market and consumer is rapidly changing such that last season’s product strategy may no longer be relevant to that fast moving and elusive core customer.

Demographics are increasingly becoming superseded by ‘customer behaviour motivation sets’. Where we live is becoming increasingly secondary to who we are and our preferences.

To test this point I recently purchased product from a London based retailer online.

These products were delivered to our home in Sydney from London within seven days.

I am now on the database of that English retailer - importantly, where we live is increasingly secondary to our customer motivations. A classic demographic slice would never pick that up.

Whilst data capture is an evolving

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“Our type, style, behaviour, motivation, bias, the conditionality upon which we accept or reject, the messages we hear as distinct from what we are told... all these elements contribute to forming our uniqueness.”

FEATURE : r e tai l fr anch ising conversation amongst retailers on top of this, have you considered that 95 per cent of consumer decision making happens in the subconscious limbic mind? So whilst you may capture their demographic location and understand which products they buy regularly, do you know why? Today we have access to new technology that allows you to go deeper into your consumer’s subconscious drivers. Are they influenced by others or perhaps by your marketing? Are they a thrill seeker or perhaps prefer efficient clean shopping processes?

influences them to purchase. Furthermore, you have the ability to personalise their experiences, whether it’s online or in the physical store space, thus adding value and allowing you to be strategic about how you may decide to get tactical.

We apply our proprietary Limbic® methodology – The limbic insights model used by our subsidiary company RDG Insights which is based on the latest findings from consumer neuroscience, psychology, sociology and neurobiology and has been built into a model that is applicable for the marketing practice and allows our ‘fit’ retailers to base decisions on genuine shopper and marketplace insights.

The fifth fitness step is simply about communication and the alignment of strategy, branding, messaging through to the internal language of our business on the shop floor. The more complex the messaging, the less clarity in understanding, the greater the risk of breakdown in communicating.

Simply testing understanding in communication helps the process of clarity significantly. (It’s not rocket science is it?)

If you put all the tools in place to listen and analyse what your shoppers want, need or have to say, you have enormous intelligence in understanding what motivates and

Walk into a highly ‘fit’ retailer and you will see clarity in communication, alignment of purpose, articulated expectations, staff feedback and above all else a culture of

“Demographics are increasingly becoming superseded by ‘customer behaviour motivation sets’. Where we live is becoming increasingly secondary to who we are and our preferences.”

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performance, mutual respect and winning.

These five fitness steps all have one glaring commonality and that is the engagement of all stakeholders as vital fitness inputs to a successfully aligned strategy and operational implementation.

Happy ‘Fit’ retailing.

Brian Walker is Founder and CEO of Retail Doctor Group. Brian specialises in the implementation of insights driven strategy to build Business Fitness™.

Contact Retail Doctor Group and quote ‘Business Franchise Australia’ to receive a complementary discussion on building your business’s retail fitness in 2016.

T: 02 9460 2882 E: businessfitness@retaildoctor.com.au W: www.retaildoctor.com.au

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 67

e x pert a dvi c e

Procedural Fairness explained PROCEDURES

We often hear the term ‘Procedural Fairness’ as it relates to employees and dismissals. It tends to be presented as “employees need to be shown procedural fairness” or “the employer didn’t show procedural fairness”. Is it really important and do we really know what this means from a practical day to day perspective?

Let me start by making it very clear, following procedural fairness or not following procedural fairness in many cases is the difference between being successful in the Fair Work Commission when an ex-employee challenges their employment termination.

Despite the fact you might believe you have 100 per cent clear evidence of misconduct, your failure to follow some simple procedural steps could result in the Fair Work Commission saying you have a valid reason for terminating that employee, however you didn’t follow the right process.

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“It is essential to have a process to follow each and every time you are dealing with a performance issue or an area where an employee may be guilty of misconduct.”

• harsh — because of its consequences on the personal and economic situation of the employee or because it is disproportionate to the gravity of the alleged offence.

• unjust — because the employee was not guilty of the alleged offence on which the employer acted.

• unreasonable — because it was decided on inferences that would not reasonably have been drawn from the material before the employer.

Interwoven into this examination is the area of procedural fairness and its absolute relevance is demonstrated in the following case.

An employee was dismissed for serious misconduct following an altercation with his supervisor, but was successful in his unfair dismissal application. The Fair Work Commission found that the employer had a valid reason to dismiss the worker, but the dismissal was nonetheless unfair due to deficiencies in procedural fairness.

This was because the Commissioner held that the employee’s dismissal was unfair because the company had failed to discharge its obligations with regards to procedural fairness.

The key facts were that the employee had sworn at his supervisor and acted towards him in an aggressive fashion when approached by his supervisor to ask why he had not followed the job list the previous day.

An argument ensued between the two men with the employee swearing and seemingly acting very aggressively towards his supervisor.

This was not the first occasion the employee

had received warnings for similar behaviour so on the surface, it would seem a very routine matter justifying termination.

However, this was not the case as some key deficiencies were found to have occurred in the process.

For example, the Commissioner found the employee had not been given the full opportunity to respond to the allegations as they were put to him in the meetings.

The employer had made its mind up prior to hearing from the employee about the facts of the incident and had in fact prepared the termination letter before its final meeting with the employee.

In addition, the Commissioner also took into account evidence that the employer had not applied its disciplinary procedure consistently, and that this had resulted in the unequal treatment of the employee.

The employee was awarded a substantial compensation payout, not to mention the time and costs incurred by the employer having to defend its initial decision.

It is clear to see that the element of procedural fairness plays a key role in determining Fair Work Commission decisions, but what does this mean for you as an employer from a practical ‘day-to-day’ perspective?

What should you be doing in your business to meet this standard of procedural fairness?

It is essential to have a process to follow each and every time you are dealing with a performance issue or an area where an employee may be guilty of misconduct. Have it clearly written so you know what do when the situation arises.

Suggested steps to follow are listed below, but these are by no means exhaustive: • Act promptly and communicate transparently in relation to all matters.

• Advise the employee of what a disciplinary meeting is about rather than ambushing them with allegations at the meeting.

• Don’t deny the employee the opportunity to have a support person present if they have asked.

Michael O’Shaughnessy | Principal Human Resources Specialist HR central

This is because the Fair Work Act specifically refers to the matters it must take into account when determining the harshness of a dismissal case. Over time, the expression ‘harsh, unjust or unreasonable’ has come to encapsulate what the Fair Work Commission examines and, in simple terms, the words mean:

• Provide a minimum of 24 hours before any performance discussion.

• Allow the employee to respond to all of the allegations put to them.

• Have all meetings and interviews documented, including details of who attended and agreed outcomes.

• Don’t make up your mind on actions to be taken before hearing what the employee has to say.

• Establish a paper trail of documentation that shows you followed these steps.

A broad way to look at this is to ensure the employee is provided with sufficient information to understand the nature and specifics of the allegations, and the information is sufficient for the employee to prepare and articulate a response to those allegations.

Don’t simply go through the motions of giving the employee the opportunity to deal with allegations concerning their conduct when, in fact, a firm decision to terminate has already been made irrespective of anything the employee might say in his or her defence.

These steps are not onerous and are really what every fair employer should do and that is to give each and every employee a ‘fair go all-round’.

Some of you might be thinking you are covered by the Small Business Fair Dismissal Code so this doesn’t apply to you, but actually and quite specifically, this area of procedural fairness is referenced within the Fair Dismissal Code, a code which applies to small business employers with fewer than 15 employees (calculated on a simple headcount of all employees including casual employees who are employed on a regular and systematic basis).

A snap shot of a few key parts of the Code is below:

Other Dismissal A small business employer must give the employee a reason why he or she is at risk of being dismissed. The reason must be a valid

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reason based on the employee’s conduct or capacity to do the job.

The employee must be warned verbally or preferably in writing, that he or she risks being dismissed if there is no improvement.

The small business employer must provide the employee with an opportunity to respond to the warning and give the employee a reasonable chance to rectify the problem, having regard to the employee’s response.

Rectifying the problem might involve the employer providing additional training and ensuring the employee knows the employer’s job expectations.

Procedural Matters In discussions with an employee in where dismissal is possible, the employee can have another person present to assist.

A small business employer will be required to provide evidence of compliance with the Code if the employee makes a claim for unfair dismissal to Fair Work Australia, including

“Don’t simply go through the motions of giving the employee the opportunity to deal with allegations concerning their conduct when, in fact, a firm decision to terminate has already been made.” evidence that a warning has been given (except in cases of summary dismissal). Evidence may include a completed checklist, copies of written warning(s), a statement of termination or signed witness statements.

Summary Procedural fairness is a process and series of steps all employers need to follow when disciplining employees in a clear and consistent fashion.

Not only should you implement the steps referenced to comply with the Fair Work Commission or Small Business Fair Dismissal Code, you should do it because it’s the right thing for you as an employer in order to give each and every employee a ‘fair go all-round’.

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Michael is the Principal Human Resources Specialist at HR Central, with 20 years HR experience in a variety of industries, nationally and internationally, including McDonalds, VECCI and the Coles Group.

HR Central is an HR solutions provider, offering cloud based software teamed with accessible HR Specialist support.

This service has been developed to help franchises manage all their HR requirements.

Contact HR Central today: P: 1300 717 721 E: info@hrcentral.com.au W: www.hrcentral.com.au

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pr o fi l e : nat i o na l d r o n es

A NEW PERSPECTIVE Recent advances in battery technology, coupled with the emergence of reliable and affordable RTF (ready-to-fly) systems, has seen a number of industries embrace the technology commonly known as ‘drones’, as a way to cut costs, deliver efficiencies and save time when compared to traditional methods of capturing aerial photography and videography and conducting aerial spotting and aerial surveillance works (namely, the use of helicopters).

Furthermore, applications that simply wouldn’t have been economical to perform using a helicopter, can now be performed using an ‘unmanned aerial vehicle’ (UAV), or ‘remotely piloted aircraft system’ (RPAS) as they are becoming more widely referred to, to conduct low-noise, low-altitude, low-risk flight operations at an increasingly affordable rate.

Analysts predict that the market for drones (including services), currently valued US$9.1bn is set to grow ten-fold over the next decade. Whilst military spending accounts for a significant proportion of this, consumer and industrial markets are tipped to have decades of growth ahead of them, according to the September 8, 2015 report “Drones: A Rising Market” co-authored by Sean Peasgood (President & CEO) and Marcel Valentin (Vice President) of Sophic Capital.

National Drones, an Australian-first franchise system is poised to take advantage of this growth market opportunity, by positioning itself as Australia’s safest, most recognised, respected, accessible and affordable professional aerial photography, aerial videography, aerial spotting and aerial surveillance service provider utilizing remotely piloted aircraft systems (RPAS).

“With hundreds of potential applications in

“Analysts predict that the market for drones (including services), currently valued US$9.1bn is set to grow ten-fold over the next decade.” industries such as agriculture, asset inspection, building and solar panel inspections, civil engineering and construction, mining, insurance assessment, emergency services, commercial photography, cinematography, media and television, opportunities exist for rural, regional and city franchisees alike” said Kevin Scrimshaw, CEO and Chief Pilot, National Drones.

With so many applications and potential opportunities available, it might be tempting to think that simply buying a drone and starting a sole-trader business is a ‘cheap’ alternative to buying a franchise. Few people realise however that in order to operate commercially in Australia, operators need to hold both an Unmanned Aerial Vehicle (UAV) Controller Certificate and Aeronautical Radio Operator Certificate (AROC) before also applying for, and being granted an Unmanned Aerial Vehicle Operator Certificate (UOC), a process that can take up to a year.

Buying into a franchise system that already has a UOC means franchisees could potentially be ‘up and flying’ (literally) within a month. Considering the amount of revenue that might be generated in the eleven months

72 Business Franchise Australia and New Zealand

operating a franchise, versus that which might be saved not joining a franchise, could prove to be false-economics.

“National Drones’ extremely comprehensive training and induction program goes well beyond teaching franchisees how to operate a drone and helping them attain an Unmanned Aerial Vehicle Controller Certificate and Aeronautical Radio Operator Certificate”, said Brad Aylett, Director and Maintenance Controller, National Drones. “We include training on digital thermography, NDVI analysis, photogrammetry, photo and video editing software, business operating systems and much, much more,” he continued.

Anyone who’s ever considered ditching their desk job but can’t bear the thought of being tied to a retail outlet; likes the idea of working outdoors, but doesn’t want to get their hands dirty and is craving variety in their workday should consider a National Drones franchise.

National Drones will be exhibiting at the Sydney Franchise & Business Opportunities Expo, 18-20th March 2016 at the Royal Hall of Industries where you’ll have the opportunity to meet Kevin and Brad to discuss your interest in becoming a National Drones franchisee.

Alternatively, for more information on this exciting opportunity contact them on: T: 1300 SKY VIEW E: skyview@nationaldrones.com.au W: www.nationaldrones.com.au

THE SKY’S THE LIMIT

With hundreds of potential commercial applications, drones are being used to CUT COSTS, DELIVER EFFICIENCIES AND SAVE TIME across a range of industries.

Commentators believe that “In just ten years’ time this AU$13bn industry is tipped to grow tenfold” creating an industry worth as much as $130 billion. Apply now for your chance to become a part of this exciting growth-phase industry.

AGRICULTURE

No prior experience is necessary, as all training is provided.

Get your career flying today!

FRANCHISES AVAILABLE ASSET INSPECTION

BUILDING & SOLAR INSPECTIONS

CIVIL ENGINEERING AND CONSTRUCTION

MINING, MAPPING & SURVEY

EMERGENCY SERVICES

1300 SKY VIEW www.nationaldrones.com.au skyview@nationaldrones.com.au

INSURANCE ASSESSMENT

AERIAL VIDEOGRAPHY

AERIAL PHOTOGRAPHY

Business Franchise Australia and New Zealand 73

f r an c h i s e asso c iat i o n o f n e w z e a l an d

2016 Conference

Trinity Wharf Hotel Tauranga 4-5 August

The 2016 Franchise Association Conference will be held for the first time, in Tauranga, at the unique Trinity Wharf Hotel located on and over the harbour with a relaxed ambience and waterfront dining.

Tauranga is New Zealand’s fifth largest city and home to an estimated 125,000 people.

The city sits right on the water’s edge and is well-known for its blue skies, warm climate, sparkling harbour and relaxed lifestyle. Many national and international businesses are based here, and the bustling Port of Tauranga is the country’s largest export port. The region has much to offer with its stunning beaches, outdoor activities, wineries, arts and cultural experiences.

The Franchise Association of New Zealand’s conference will bring together the franchise community over two days to network, exchange ideas and interact with other systems and service providers; catch up on industry trends and hear what experts in the field of franchising have to say. Conference registration will include invitations to two social events where delegates can relax, recharge and enjoy their surroundings.

The theme for this year’s conference is ‘Building Your Brand’ and the conference will open with a presentation by Chris Brown, NZ Director of Marketing for one of the world’s leading franchise brands McDonald’s. A great opportunity to learn from the masters of franchising! Following on from Chris,

74 Business Franchise Australia and New Zealand

The Trinity Wharf Hotel will be the base for the conference sessions, however for the two social occasions there is a real treat in store. attendees will hear from an array of talented speakers, both local and international. Should energy levels dip, look out for Bruce Ross from Ignite Business Leadership. Bruce is sure to fill the room with energy as he shares his ‘Inside Out’ approach to dynamic leadership, focusing on how higher energy levels impact on performance. In this session it is not just about theory, he will show you how!

Afternoon workshops continue to be popular and provide delegates with an opportunity to drill down on some specific areas of interest.

Smaller groups made up of like-minded individuals, facilitated by an industry expert, provide a valuable insight into the world of franchising.

The Trinity Wharf Hotel will be the base for the conference sessions, however for the two social occasions there is a real treat in store.

Lord of the Rings fans will revel in their very own Middle Earth adventure, with a visit to Hobbiton. In the surrounds of the Green Dragon pub and Hobbiton movie set you will enjoy a Hobbiton style evening of fun, games, socialising and a memorable feast.

Lord of the Rings fans will revel in their very own Middle Earth adventure, with a visit to Hobbiton.

Conference will conclude on the evening of Friday 5th August with A Masquerade Ball and Gala Dinner at the Mills Reef Winery, an award-winning Tauranga landmark situated on 20 acres of beautifully landscaped grounds with stunning rural vistas and relaxed surroundings.

So if you are keen to progress in the franchise business and network with like-minded people who are happy to share their experiences and challenges plus soak up new ideas and hear the latest happenings in the industry, the 2016 FANZ Conference is not to be missed.

Registrations are open now at www.franchiseassociation.org.nz/event

A Masquerade Ball and Gala Dinner at the Mills Reef Winery.

Business Franchise Australia and New Zealand 75

fr a n c h i s i n g e x p o

Hit the franchising hotspot in Sydney Sydney’s Royal Hall of Industries at Moore Park will be filled with the who’s who of franchising this month, all attending the Franchising & Business Opportunities Expo 18-20 March.

This enterprising event offers visitors a forum to compare and research a diverse range of franchise opportunities, with investment levels from under $10,000 to more than $500,000.

Companies from a wide range of industries will showcase their business concepts, such as V.I.P. Home Services, EmbroidMe, Dream Doors, Refresh Renovations, Tutor Doctor, endota spa, The Coffee Club, Minuteman Press, Skinny’s Grill, Amber Tiles, National Drones, WH Smith and Johnny Rockets to name just a few.

Ella Baché’s dynamic CEO Pippa Hallas will share her franchising philosophy in her keynote seminar presentation.

There is also legal and financial advice to buy and set up your new business or franchise, plus free daily seminars delivered by experts on topics relevant to current and prospective franchisees and franchisors.

Poolwerx’s high profile CEO John O’Brien will share what he has learned as he built Australasia’s largest pool and spa network with over 220 active franchise territories, 330 mobile vans and more than 70 retail stores.

“This Expo – and the shows to follow in Perth, Brisbane and Melbourne later this year – are must-see events for advice, inspiration and information about the latest life-changing franchising opportunities,” says Exhibition Manager Fiona Stacey.

The seminar program also includes specialist industry consultants such as Suzanne Jarzabkowska from DC Strategy, The Franchise Shop’s Grant Garraway and Brian Keen from How to Franchise Simply. The Franchise Council of Australia will also hold panel sessions with established and successful franchisors sharing their stories and taking questions from the floor.

“I’m very excited about our seminar program in Sydney this year, especially our keynotes Pippa Hallas and John O’Brien,” she adds.

“It’s an incredible opportunity to hear from people at the top of their game, to learn from them and to see what drives them.”

Pippa Hallas is the dynamic CEO of the beauty company started by her grandmother Edith Hallas and her great aunt Ella Baché 60 years ago. Now she is taking it from strength to strength, with a renewed focus on education and product innovation. Visitors will learn about her franchising philosophy and growth strategy at this unmissable presentation.

“The seminars and free panel sessions are always a highlight of the Expo,” says Fiona Stacey. “It’s a good idea to check the program on our website before you attend, to make sure you’re in time to hear from any speakers who particularly interest you.

“But of course the main game is on the show floor, with exhibitors from a wide range of industries all ready to encourage and inform visitors about their franchise or business opportunity.”

76 Business Franchise Australia and New Zealand

Stacey adds that readers may gain free entry, by entering the code BFM when purchasing tickets online. “So grab your ticket now, it’s really time to stop dreaming and start doing!”

For more information go to: www.franchisingexpo.com.au

Diary Dates: Sydney: 18-20 March Royal Hall of Industries, Moore Park

Perth: 15 May Crown Perth, Burswood

Brisbane: 23-24 July Brisbane Convention & Exhibition Centre, South Bank

Melbourne: 26-28 August Melbourne Exhibition Centre, South Wharf

Business Franchise Australia and New Zealand 77

h av e yo u r say

Big

Business Is Possible with Multi-unit Franchising

78 Business Franchise Australia and New Zealand

territory within the first two years.

“Many franchises limit people to only one store but I think this is ultimately detrimental to a business long-term as they are turning away and limiting their greatest assets.”

John O’Brien | CEO & Founder | poolwerx

With 85 per cent of his business comprising multiple unit franchise holders, John O’Brien, CEO and founder of Poolwerx knows what it takes to grow a business utilising this strategy. The good news is it provides both franchisee and franchisor with immense opportunity to build big business.

“A common misconception is that franchising is only for people who want a small business, but a franchise with the right multi-unit growth strategy can provide an environment where the sky is the limit for its franchisees,” Mr O’Brien said.

And he should know, with the business acknowledged as the country’s best for the third time in five years winning the Multiunit Franchisee of the Year category at the Franchise Council of Australia Excellence Awards in 2015, 2013 and 2012.

Irene and Ian Hughes, from West Australia, won in 2015, with the couple developing a business from one store to four and five mobile operators. At its peak last year the couple topped sales in excess of $3 million dollars.

corporate jobs in pursuit of being the masters of our own destiny, and it is a decision that has paid off in many ways for us, both financially and in lifestyle balance and flexibility.

“The Poolwerx model is specifically designed to allow franchise partners a strong career path from mobile operator to multiple store owners and it allowed us to grow the business to the level we desired.”

Mr O’Brien said the Hughes were an example of the calibre of franchisee a well-structured multi-unit growth strategy can attract.

“Over the 12 years it took us to finesse our full multi-unit offering we have seen a shift in the type of franchise partner attracted to our model now.

“Many of our franchise partners have had previous experience in business or come from a high-level corporate background, which results in people joining the business with clear goals and expectations from day one.

“They usually know what they want financially, and the type of lifestyle they want to create. Our support team then help them design and implement a business plan to achieve it. When you attract people into your business with such clear direction and goals the model then becomes scalable as they are capable to expand and grow easily.

“One of the benefits of this scalability for franchisees is that the size of their business allows them to have a management structure within their business.

“We started out with one store in 2006, added another within two years and then a partnership in 2010 saw us grow to four stores and we have continued to grow year on year at an average of 20 per cent despite some tough economic conditions over the last five years,” Mr Hughes said.

“No one wants to be a prisoner in their own business and whilst there is a lot of responsibility running a multi-unit franchise, the structure does provide extra freedom, allowing more time for family and holidays; all round more lifestyle flexibility. It also provides an excellent platform for succession planning in the future.”

“We bought out our partners for another 30 per cent in 2011 to become 80 per cent manager owners. We originally left our

Poolwerx includes a development clause in its franchise agreement that states a franchise partner must open a retail store within its

“Many franchises limit people to only one store but I think this is ultimately detrimental to a business long-term as they are turning away and limiting their greatest assets.

“We promote a set career path in our business because we know it works for all parties involved and while our model allows people to buy in at whatever level they desire, they can easily build the business from the ground up.

“This is how the Hughes, Grahams and Attards, some of our largest Franchise Partners and Franchise Council award winners, have grown multi- million dollar businesses in under 10 years.”

While the premise of franchising is often touted as providing the necessary structure and training to help any franchisee succeed Mr O’Brien believes successful multi-unit Franchise Partners share a number of key attributes.

1

Team player

In our business we term them ‘intrepreneurs’; somebody who strives to be their own boss, to experience the freedom of running their own business and the opportunity to sure up their financial future, but whom has the wisdom to realise they don’t want to start from scratch to achieve it.

They realise they can have the business success they desire within an existing structure.

This is necessary to not only be a successful franchisee at any level but especially if they want to pursue being a multi-unit holder.

2

Good leader

Running multiple sites requires strong leadership and organisation on a daily basis. You need to be good at empowering people and trusting them to the job they are hired to perform. You need to be firm but fair, providing KPIs or guidelines that make it simple for people to know if they are performing or not. And most importantly you must be willing to lead by example at all times, no matter the situation or job.

3

Unwavering commitment

If you want to operate a business then the reality is it takes work and lots of it. The people that truly succeed are the ones with full commitment to their goals and who are not deterred easily, even in difficult times.

Business Franchise Australia and New Zealand 79

h av e yo u r say

“When you attract people into your business with such clear direction and goals the model then becomes scalable as they are capable to expand and grow easily.”

4

People person

In most business’, whether they be staff or customers, people are central to your success so it’s important you can interact on many levels. Our best Franchise Partners have excellent social skills and thrive on interactions with others. As a service based business being somewhat of a people pleaser can go a long way.

Poolwerx utilises personality profiling to identify potential franchisees with the right acumen and attributes to be successful multiunit business owners.

“It’s hard to find one person with all the necessary traits but most of our Franchise Partners are partnerships, particularly husband and wife teams, so more often than not the combined skills of the pair provide the right mix.

“It is for this reason we always profile both people in a partnership, even if one of them is not planning to initially work in the business.”

Mr O’Brien believes a franchisee benefits from joining a franchise brand with a strong focus

on multi-unit growth because the support structure is more advanced.

“In order to properly support multi-site franchises a business needs a more experienced and sophisticated support team to provide the experience and mentoring franchisees need to succeed.

“It also requires better sales and marketing, advanced buying processes to reduce costs and a franchise fee structure that promotes growth.”

According to the latest Griffith Franchising Australia report, on average, franchisors held only three multiple-unit holders in their system.

“The research indicates that although considered and offered by most franchises, many have not yet realised the advantages to focusing on multi-unit franchising as a business development strategy.

80 Business Franchise Australia and New Zealand

“What a business has to offer in regards to multi-unit franchising is something every potential franchisee should ask about before making a final decision.”

John O’Brien is the founder and CEO of Poolwerx Corporation, the world’s leading swimming pool service company and largest franchised pool retail group. As an industry leader, John has advised the Australian Government on a variety of issues facing franchising and has also chaired the Australian, the Asia Pacific and the World Franchise Councils, all whilst building a brand that has twice been named Australia’s Franchisor of the Year.

Today, the Poolwerx group provides poolside services to an estimated 300,000 domestic pools, has a nationwide chain of retail stores and is the strongest player in the commercial pool maintenance sector in Australia.

W: www.poolwerx.com.au/franchising

Want to make a clean break?

Build your future with Chem-Dry Chem-Dry is the world’s largest carpet cleaning franchise, and has been helping Australian’s realise their dream of business ownership since 1986.

Franchises available in all capital cities & regional centres

Our unique, hot-carbonated water extraction method, combined with best in-class products and services, and unparalleled training and support, make it impossible to find a better cleaning franchise opportunity. No experience is necessary, as Chem-Dry provide comprehensive training on all aspects of the business. Our on-going marketing and operational support will ensure that you are able to enjoy the flexibility and lifestyle benefits that owning your own successful business can provide.

1800 243 637 chemdry.com.au

If you’re ready to make a clean break with your own Chem-Dry franchise, simply fill out the information form on our website, or call our franchise business info line on 1800 243 637.

Business Franchise Australia and New Zealand 81

s n a ps h ot: m a r s h & m a h er l aw y er s

FRANCHISing LICENSING AND RETAIL GROUP “We love being part of such a dynamic industry and acting for local and international clients.”

We have been extremely busy with new and overseas franchisors upgrading their agreements to comply with the Code.

Overseas franchisors coming into the Australian market require their franchise documents to be updated to comply with the Code and also meet their financial disclosure obligations.

New Franchisors We are acting for a number of new and exciting franchise systems in a wide range of areas such as retail, food and hospitality, childcare, fitness and health, online sales and business to business service Industries.

We love being part of such a dynamic industry and acting for local and international clients.

Dispute Resolution There have been a number of recent high profile franchise failures and we have been advising a number of franchisees in these systems as to their rights and obligations including their options in dealing with shopping centre landlords, administrators and liquidators.

We have also been involved in a number of mediations under the Code acting for both franchisors and franchisees aimed to resolve disputes, so the parties can get on with business or negotiate an exit.

We provide a full range of services to our business clients in the areas of leasing, employment law, intellectual property, contract and consumer law, and dispute resolution.

Franchise Services We provide the full suite of franchise services to our franchise clients which include franchisors, master franchisors and franchisees.

• Assisting multiple franchisees to renegotiate their franchise agreements.

• Mediations - acting for franchisors and franchisees.

Marsh & Maher are members of :

• Preparing, reviewing and renegotiating Master Franchise Agreements.

• The Franchise Council of Australia (FCA).

• Advising on corporate structures systems.

• International Franchise Lawyers Association (IFLA) a network of specialist franchise and licensing lawyers worldwide. We can therefore refer Australian franchisors to reputable and experienced advisors worldwide.

• Upgrade of franchise documents to comply with the Franchising Code 2015.

• US Commercial Service - assisting US companies to establish business in Australia; and • Themislink European Lawyers Network.

We also have a network of experienced consultants (FCA members) to assist our new franchisor clients to ensure the success of their franchise system, which includes accountants, feasibility and site selection, territory planning and developing operations, manuals and franchisor systems.

Our recent experience includes: • Acting for overseas companies from Germany, France, Sri Lanka, Thailand, Greece, Hong Kong, Singapore, New Zealand and the US to establish their business operations and franchise systems in Australia.

82 Business Franchise Australia and New Zealand

• Acting for multiple franchisees in disputes with their franchisor.

• Advising franchisees for a fixed fee.

• Applying for third line forcing exemptions from the ACCC. • Strategic advice to franchisors and franchisees.

Robert and Marianne have over 30 years of combined industry knowledge and experience.

We provide clients with fixed fees based on the scope of services so our clients can monitor and budget for their legal costs.

Please contact Robert or Marianne: Robert Toth, Partner (03) 9604 9405 rxt@marshmaher.com.au Marianne Marchesi, Senior Associate (03) 9604 9413 mim@marshmaher.com.au

O

Own a Slice of La Porchetta!

“

La Porchetta is like a family. They are there for support when we need it and they work with us to improve our business.

“

Vicky and Michael Vincent 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? • • • • • •

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 83

e x pert a dvi c e

franchising has changed

Most people still associate the old adage - location, location, location with franchising. It was supposed to indicate a measure of success - everything came down to the location. Bad location = bad results, and so on.

In the much earlier days of franchising it is quite probable that there was considerable

substance in the location statement. Early franchise opportunities were often fast food outlets, and then there were automotive suppliers in various forms - for such entities passing trade was absolutely essential to creating brand awareness and the allimportant repeat business.

If location, location, location equated to success in the franchise, what then has changed? It certainly was not the need for fast food outlets and others that rely on passing trade and high visibility to be very conscious of their prime location.

It is the nature of the franchised entity that has changed. We have moved, and moved very rapidly from a franchise world dominated by

84 Business Franchise Australia and New Zealand

fast food and automotive outlets, to a world of franchising that covers literally hundreds and hundreds of different opportunities. We could not hope to catalogue the various brands, industries and professions covered in the space of this article. Needless to say, franchise opportunities exist today in signage, care facilities, financial services, mail centres, flyer distribution, pet supplies and grooming, and the list goes on.

What this diversity of offerings has created is a noticeable shift in the physical location of a franchised outlet. Many of these ‘new’ formats do not require the ‘main street’ exposure so common in the past. They can operate from smaller secondary locations to modest

“Franchising has certainly changed, and the advent of the home-based opportunity has opened the door for franchisors to look for candidates that have a different skillset from those where location, location, location was the moto for success.”

David Banfield | President | the interface finalcial group

for every franchise and every individual?

Naturally the answer must be, No. A franchisor will, as they built out their model, have determined the optimum location requirements and, in many cases, that research could result in a home-based setting.

The franchise will, therefore, come with a definition of where the location shall be and what it shall consist of, and that definition is unlikely to be negotiable.

Is every individual then well-suited to a homebased operation? Again we believe the answer is clearly, No. With the enormous advances in technology, what once took a large amount of space - an array of computers and an army of employees - has now been reduced to one person, a laptop and a cell phone. Technology has certainly changed the face of franchising.

That, however, does not automatically mean that everyone is well-suited to a home-based environment.

office suites. Franchising has also moved into the realm of a ‘no office’ or actual physical location. There are virtual and home-based franchises that operate from almost any location - exposure to the general public is absolutely not a requirement.

The lure of a home-based franchise for many individuals is very strong, especially when in a past life the franchisee was a commuter, spending many hours a week in the daily travel chore of just getting to the office. With the franchise commute time reduced to ‘minutes’ this can be a major plus factor in the search for the ideal franchise.

Does the home-based environment work

The majority of individuals seeking a franchise opportunity have a past, or even present, life in the corporate world. They work for different-sized entities, from medium-sized to businesses with thousands of employees around the globe. Common to most corporate environments will be structure.

Corporations tend to have well-established internal structures. Individuals know who they report to and who reports to them. They know the ‘rules’ and what is expected in terms of performance and contribution. The organisation provides a structure that often goes beyond just the fabric of the individual business, but extends to take in social amenities alongside the business aspects.

For many people transitioning from the corporate world is a considerable change, as they may well have been employed by the same company for a long period of time.

Likewise, the change may also be stressful if the change was more the employer’s decision, rather than the employee. Moving from a traditional corporate structure to a homebased franchise can be a considerable leap of

faith. That leap of faith is compounded and becomes a quantum leap when the homebased business is also a one-person business, where the franchisee is the ‘one person’.

Franchising has certainly changed, and the advent of the home-based opportunity has opened the door for franchisors to look for candidates that have a different skillset from those where location, location, location was the moto for success. Franchisors in the home-based area are now very much focused on an individual, and their self-disciplined characteristics. It might be argued that selfdiscipline is a requirement of any franchisee or business owner. That may be true, however the motivation requirements of owning a franchise that has a retail façade - and that requires the owner to open the doors at a certain time, and to interact and manage staff - is a very different motivational pull than that of running your own business from your own home.

It is therefore essential that individuals that see a home-based environment as one to pursue, also look at their own skill base to determine if they have what it takes to work on their own, albeit in a franchise system, and to determine if they can write and follow the action plan needed to be successful.

A 5-minute commuting time is most certainly a great advantage but it’s what happens when one arrives at the (home) office that really counts.

David Banfield is President of The Interface Financial Group, a position that he has held for over 20 years. He has been instrumental in starting Interface as a franchise opportunity and building it to its current international status. Prior to his involvement with Interface, he worked extensively in the banking, credit and factoring financial service areas. www.interfacefinancial.com.au

Business Franchise Australia and New Zealand 85

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is your franchise on snapchat?

Why you should consider using Snapchat as a marketing tool “As the amount of users continues to grow on Snapchat, the opportunities for your franchise business to create a social media presence do as well.”

Matthew Jonas | President | topfire media

A white ghost strategically placed in the centre of a yellow background—an incredibly simplistic form of marketing, but a logo that is recognised by many. It’s safe to say the free mobile app, Snapchat, is sweeping the globe and being utilised as a marketing tool for businesses.

In September of 2011, Snapchat was launched as a simple way for Millennials to share photos and videos between friends, but shortly revolutionised into a $16 billion platform used by companies and individuals of all ages worldwide. The popular app is reported to have more than 200 million users who open more than 7 billion photos and videos every day.

So how does it work? When a user posts a photo or video, it self-destructs as soon as it is opened and a few seconds elapse – never to be seen again. If a user chooses to post the content to his or her ‘story,’ it remains displayed for 24 hours.

Snapchat has become a marketing tool that businesses are not passing up. The smartphone app has created endless opportunities for industry insiders to increase community engagement, create innovative marketing campaigns and boost brand recognition.

Leveraging one of the fastest-growing social networks, marketers are making the most of every second the app has to offer.

Targeting Millennials versus Baby Boomers The concept of marketing on smartphone apps often carries a negative connotation among Millennials, in particular. The practice arguably poses a disruption to their mobile activity. However, Snapchat has found a way around this with the introduction of geofilters. This feature can help a brand maximise

86 Business Franchise Australia and New Zealand

the effectiveness of its marketing campaign while reducing the chance of appearing intrusive.

A location-based filter allows users to add stickers to snaps in order to show off their location or an event they’re attending.

Activating the location services on a smartphone can help the app identify whether the user’s location is within the geo-filter’s boundaries. This new form of marketing is powerful since it allows users to interact with promoted content in ways that don’t interfere with their user experience.

Millennials may hold the majority on Snapchat, but Baby Boomers are flooding the app, as well. Over the last year, there has been an 84 per cent increase in users over 35. Older family members looking to stay in touch with the younger generation influenced this significant growth. Having the opportunity to view real-time images and videos is an aspect that other apps have yet to explore.

The recent addition of the ‘Discover’ channels is also a major draw to those who are 35

and older. ‘Discover’ channels curate snaps from different editorial perspectives. The in-house content allows large media brands and companies to highlight content and news stories.

Marketing to the Baby Boomer generation requires an air-tight strategy. This target audience spends less time on their mobile device, and would rather hear about the news or the best place to eat. Holding more than 40 per cent of Australia’s wealth, Baby Boomers have money to spend – making them a perfect audience for this real-time tactic, if executed well.

Making the most of your seconds In order to maximise your brand via Snapchat, there are several tips and strategies that a business can apply. First and foremost, humanise your brand. Snapchat is designed for frequent use with no added pressure, since the photos and videos are only available for a few short seconds. It allows them to show their true identity. By using a behind-thescenes strategy when posting, you give users the opportunity to learn more about you, your

“Being open to new technologies gives your business a competitive edge since we live in a time of constant change.”

business, and its employees from a raw, honest perspective.

Everyone is attracted to social media giveaways. Create promotions, contests, perks, and even teasers about new products that you may launch. Asking users to post a photo with your product for a discount can create a demand. When people see something LIVE, they want it.

If you have the opportunity to partner with an influencer, do so. Finding a user with a large social media presence to promote your product or engage in a Snapchat takeover is a great way to turn their followers into your followers.

Get snapping Being open to new technologies gives your business a competitive edge since we live in a time of constant change. Snapchat is a real-time, authentic social media platform that can make a positive impact on your

followers while strengthening your brand image. With the right marketing strategies, your business can flourish and inspire the masses to join your following. As the amount of users continues to grow on Snapchat, the opportunities for your franchise business to create a social media presence do as well. So make the most of every second you get.

Matthew Jonas is President of TopFire Media and a digital marketing strategist with over a decade of in-depth experience in SEO & PPC, social media publishing, conversion based marketing, inbound marketing, sales management, and online lead generation. Matthew has built a career dedicated to delivering an integrated marketing approach that achieves client success and long-term relationships. www.topfiremedia.com

Business Franchise Australia and New Zealand 87

s n a ps h ot: t h e o b r o m a

FIT FOR THE

GODS Known for their innovative menus, products and store designs, Theobroma are taking that to the next level with the recent launch of a new concept store at Northland, Victoria.

Incorporating alfresco dining and an efficient workflow design, the new concept results in an attractive and relaxing environment for customers.

The perfect respite from a bustling day, Theobroma Chocolate Lounge offers consumers a wide variety of chocolates; hot and cold chocolate beverages; chocolate desserts; melted chocolate dips; other chocolate related products as well as breakfast and a full food all-day menu. The concept was developed in response to the spiralling demand for high quality chocolates and chocolate beverages as an alternative to coffee.

HOW IT STARTED Opening a boutique store in Hawthorn, Victoria in 2004, founders Theo Racovalis an award winning craftsman and chocolate connoisseur and George Roiniotis - an architect and designer by trade wanted to fill a void in the marketplace with a high quality Australian alternative. Once the decision was made to commercialise and franchise the concept, a showcase store was opened at Spencer Street DFO, Melbourne in December 2006 and received a phenomenal response.

With stores in Victoria, New South Wales and also New Zealand, Birmingham, UK and Shanghai, China, which opens this month, Theobroma are looking to expand nationally and also further afield into India and other Asian regions.

“The concept was developed in response to the spiralling demand for high quality chocolates and chocolate beverages as an alternative to coffee.”

YOUR CHOICE OF CONCEPT All Theobroma stores are designed to drive sales by attracting customers, presenting product in their most attractive manner and to provide efficient workflow. The colours, counter concept and displays provide an attractive and efficient retail layout. There are both internal and external product display counters to enhance sales and capture the outside audience.

There are four concepts to choose from: Lounges: most suited for shopping centres, high end retail areas, shopping strips and local community areas.

Lounge Bars: suitable for large format areas and high traffic zones - predominantly for local shopping strips and entertainment/ shopping and café/bar precincts.

Pavilions: suited to shopping centre environments where a kiosk isfavourable over an inline store. It also works strongly in high commuter areas with a captive audience.

Pavilion Bars: an expanded offering on the Pavilion concept but with the added addition of a chocolate cocktail menu and a limited beer and wine menu. Only suited to either airport terminals or entertainment precincts.

is done and Customer Service – to strive for 100 per cent customer satisfaction. Looking for people that have drive and passion, Theobroma believe that people are the most important ingredient in making any business a success.

Desirable attributes include an ability to make people smile; a friendly disposition; a positive and enthusiastic approach to business ownership and a determination to succeed and grow.

A training program has been developed to aid these values and includes everything there is to know about chocolate, selling skills, inventory control, local area marketing, and all areas of the store operations including POS systems and opening/closing procedures.

A professional team with extensive experience in franchising, retail and marketing also provide assistance with site selection; store design and fit-out; property leasing; marketing of the brand and providing marketing support.

Theobroma are confident that once you get to know their business model, you’ll become just as hooked as they are.

DRIVE AND PASSION

To find out more contact Franchise and Operations Manager Ben Fernandes on:

All franchisees must share similar business values to Theobroma to succeed, which are Excellence – to strive to be the best in all that

T: + 61 3 9480 1030 E: ben@theobroma.com.au W: www.theobroma.com.au

88 Business Franchise Australia and New Zealand

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Business Franchise Australia and New Zealand 89

h ot to pi c s

Behind the

headlines Dick Smith collapses amid calls for senate inquiry The collapse of electronic retailer Dick Smith has devastated consumers with valueless gift cards and non-refundable deposits, and led to independent senator Nick Xenophon calling for a senate inquiry into the chain’s continuous disclosure and its $520 million float.

The 393-store chain continues to trade after the appointment of voluntary administrators earlier this week, however its 3,300 staff are concerned about their jobs and entitlements, as well as facing the anger of customers who bought gift vouchers, online items yet to be delivered, or paid deposits that will not be honoured by the administrators.

Senator Xenophon has called for an inquiry into the company’s collapse, as well as the role its former private equity owners, Anchorage Capital Partners, played in setting it up for failure amid media reports that Anchorage stripped Dick Smith of much of its valuable inventory before the listing, forcing the newlylisted company to take on unsustainably high levels of debt to rebuild its inventory.

The Australian Competition and Consumer Commission (ACCC) is also reported to be concerned with the manner in which Dick Smith promoted the sale of now valueless gift cards in the lead-up to the collapse.

All Dick Smith stores continue to trade in administration, however it is likely that stocks will not be fully replenished and that any sale of the business will force the closure of a significant number of outlets.

Home ventilation franchise collapses Home ventilation franchise Ventis HQ which is partly owned by former Wallabies captain George Gregan and has eight franchisees, has collapsed into administration.

Administrators suspended the business’ operations over the Christmas period and are

90 Business Franchise Australia and New Zealand

2016

FRANCHISE D IRE C T O R Y on sale now! the most comprehensive franchise guide

h ot to pi c s

assessing the likelihood of continued trading as they field expressions of interest from potential buyers.

Franchisee engages underworld figure to mediate with franchisor A Melbourne franchisee of the Bank of Queensland engaged underworld figure Mick Gatto and his associates John Khoury and Anthony Swords to assist with a mediation after his franchise was compulsorily acquired by the bank.

According to a media report, the former owner of the Bank of Queensland franchise at Mt Waverley hired Gatto Corporate Solutions to help negotiate a higher payout from the bank after it paid him $265,000 for the business several months after lending him $500,000 to buy his partner out of the business, and which valued the business at close to $1 million.

However the Bank of Queensland has refused to deal with Gatto Corporate Solutions because the presence of Gatto and his colleagues “intimidated” senior staff.

Franchise conman Peter Foster raided over murder plot Franchise conman Peter Foster continues to make headlines less than three months after being released from jail for his role in the SensaSlim franchise scam which defrauded more than $6 million from 110 franchisees, this time over a plot to murder a private investigator.

Properties in New South Wales and Queensland linked to Foster were raided by police over allegations that he plotted to murder a private investigator who uncovered millions of dollars stashed abroad from the proceeds of another Foster scam, online gambling company Sports Trading Club.

Carpet cleaning franchisor fined $215,000 for fake testimonials The Federal Court has ordered the franchisor of the Electrodry Carpet Cleaning business to pay $215,000 in penalties for misleading consumers by posting fake testimonials about its carpet cleaning services on the internet, and inducing its franchisees to also post fake reviews on popular online product review websites.

The fine followed an investigation by the Australian Competition and Consumer Commission (ACCC), and was accompanied by other orders including injunctions, corrective advertising, and that Electrodry contribute towards the ACCC’s costs.

Franchise litigants behind crash of My Baby Warehouse The former operators of 11 IGA supermarkets which were placed into administration earlier this year are also the owners of the My Baby Warehouse chain of retail stores that collapsed last week owing staff more than $1 million in entitlements.

The 11-store chain owned by the Arora Group of entities is accused of blackmailing suppliers, with witnesses claiming that brown paper bags of cash would be dropped off.

Owners Ajay and Poojay Arora were paid an unspecified sum earlier this year after they sued IGA owner Metcash after paying $9 million for 16 supermarkets in New South Wales in 2012 and 2013, but claimed that they would not have entered into the deal if they had received information in a franchise disclosure document beforehand.

The plaintiffs also sought a declaration that Metcash was in fact a franchise and therefore had breached the Franchising Code of Conduct, however the confidential settlement meant no such declaration was made.

Domino’s acquires stake in German operations Domino’s Pizza Enterprises (DPE), the Brisbane-based operators of Domino’s in Australia, New Zealand, Japan and Europe have added another country to their growing portfolio through a joint-venture with a UKbased Domino’s operator to acquire and grow a pizza chain in Germany.

The AUD$68 million acquisition will be operated by a new company that will be two thirds owned by DPE, with the balance held by its British partner.

Visas safe for 7-Eleven workers The Australian government has confirmed that exploited and underpaid 7-Eleven workers on student visas will not be deported for breaching their visa conditions by working more than 20 hours per week, however all visa holders are expected to comply with their visa conditions going forward.

Maurice Blackburn, a law firm acting for exploited workers received the government undertaking which applies to workers who assist in investigations into poor treatment and underpayment. The firm has represented more than 40 workers to date, who have claimed more than $1.2 million in underpayments with some workers originally paid as little as 59c an hour.

92 Business Franchise Australia and New Zealand

Jason Gehrke | Director Franchise Advisory Centre

7-Eleven wage panel raids 50 stores The independent panel appointed by 7-Eleven to investigate the exploitation of workers among the network’s 620 stores have raided 50 stores across Australia in which the worst exploitation is believed to have occurred.

The panel, headed by former ACCC chairman Allan Fels is assisted by accounting firm Deloittes, who provided 150 staff for the unannounced store visits to seize documents including rosters that are not available from 7-Eleven’s head office.

The retail chain has been embroiled in a worker underpayment scandal since August 31, when a joint Fairfax media / ABC Four Corners report alleged that underpayment and exploitation of workers on foreign student visas was rife throughout the network.

Since then, 7-Eleven has appointed an independent panel to investigate and authorise payments to exploited workers, has fronted a hostile senate inquiry, and re-signed 90 per cent of its operators to a new franchise agreement that increases their share of gross profits but increases their compliance obligations.

To date, 100 exploited workers have received outstanding wages totalling $2.3 million, however it is expected potentially thousands more claims will be presented to the independent panel over time.

Retail chain with 340 outlets up for sale Tobacco Station Group (TSG), a retail chain with more than 340 franchised outlets and head office turnover of $4.7 million is up for sale, according to a media report.

The sale includes all business assets including trademarks and intellectual property, with 65 per cent of franchisees under agreements that have between two and five years left to run.

W: www.franchiseadvice.com.au

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With over 30 years’ experience in providing high quality business information, with a particularly strong focus on franchising, our global presence allows opportunity for international franchise marketing solutions.

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pr o f ess i o na l s er vi c es l i st in gs

Freelease Copiers Pty Ltd

Offices in Sydney, Brisbane & Melbourne P 1800 63 63 44 Contact Tim Holland E info@freeleasecopiers.com.au www.freeleasecopiers.com.au COPIER AND PRINTER LEASING WITH NO LOCK-IN CONRACTS Starting a new business or franchise takes a lot of commitment but there are some things you should not have to commit to. Most suppliers of copiers and printers want you to sign up for 5 years, in that time they can change whatever they want , they can, it’s their contract.

Here at Freelease Copiers we don’t believe in contracts. We should good enough for to want to keep us.

By just charging per page, we have the same aims; to have a reliable, working printer.

You supply the paper and we supply everything else • Free Toshiba E-Studio Multifunction Printer/ Copier/ Scanner • All toner, maintenance and consumables included • A4/A3 Printing & copying • No repair bills ever • No price rises ever • All with no lock in contracts • Network assistance (we are not a network company but we will do our best to help, for free) • Free upgrades as machines wear and technology changes Also • No financial references required • Any options: fax, staple and fold - at no extra cost We have machines ready for immediate delivery, feel free to call or visit the our webpage at www.freeleasecopiers.com.au

HARMANS LAWYERS

485 Papanui Road, Christchurch P +64 3 352 2293 F +64 3 352 2274 Contact Mark Sherry or Alan Prescott E mark.sherry@harmans.co.nz www.harmans.co.nz If you’re considering buying a franchise you need the legal confidence that the agreement is fair and ethical. Getting the right legal advice early is essential, and that’s where the knowledgeable Harmans team of franchising experts can help.

Our extensive experience in all aspects of franchising, across a wide range of industries, will provide you with the advice you need to more forward with confidence. We have acted for franchisors and franchisees over many years and know the advantages of franchising and pitfalls to watch out for.

Our Franchising Team can assist with a full range of franchise related services, including: - Legal rights and obligations under franchise documentation - Business structures and asset protection structures - Financing issues - Employment issues and health and safety - Lease arrangements and agreements - Terms of trade - Dispute resolution We are members of the Franchise Association of New Zealand

Madgwicks Lawyers

MARSH & MAHER LAWYERS

Level 33 140 William Street Melbourne VIC 3000 P 03 9242 4744 F 03 9242 4777 Contact Ed Browne E franchising@madgwicks.com.au www.madgwicks.com.au

Lvl 2 100 Wellington Parade, East Melbourne VIC P 03 9604 9400 F 03 9419 7735 Contact Robert Toth E rxt@marshmaher.com.au Marianne Marchesi E mim@marshmaher.com.au www.marshmaher.com.au

Madgwicks’ Franchising team has experience across a variety of franchise industries representing both franchisors and franchisees.

Our Franchise team is made up of lawyers from our Business Services, Litigation and Property areas, enabling the group to address the broad nature of legal needs associated with establishing and operating a franchise system.

A key part of our service delivery is partner accessibility and in-depth industry knowledge.

Our services include: • Franchise agreements and disclosure documents • Advice on business structures appropriate for franchise systems • Franchising Code of Conduct Compliance • Trade Practices advice including ACCC notification/authorisations • Acquisition, disposal, joint venture and partnership advice • Supplier and terms of trade agreements • Workplace Relations • Commercial and retail leasing, as well as general property advice • Tax, duty and GST advice • Litigation and dispute resolution • Advice on branding, intellectual property and trade marks.

30 Years of Franchise Industry knowledge and experienceActing for local and international franchisors Members of: Franchise Council of Australia (FCA) International Franchise Lawyers Association (IFLA) Marsh & Maher Lawyers provides fixed fee services to franchise clients for most aspects of work.

THE NEW FRANCHISE CODE COMMENCED 1 JANUARY 2015 • What do you need to know?

• What do you need to do?

Email Robert or Marianne for a complimentary guide for franchisors to the new Franchise Code.

MARSH & MAHER PRACTICE IN THE FOLLOWING AREAS: • Commercial and Corporate Law • Corporate Reconstruction and Insolvency • Discrimination, Employment Law and Industrial Relations • Media Law • Litigation and Dispute Resolution • Trade Practices and Competition Law

94 Business Franchise Australia and New Zealand

FCA

Join Become a Franchise Council of Australia Member Membership of the FCA is voluntary, and open to any organisation or individual involved in the franchise sector, including franchisors, franchisees, lawyers, accountants, banks, consultants, academics, publishers - plus many others.

BeneďŹ ts of Membership Representation of franchising sector perspectives to government A voice in your association Franchising public relations Excellence in Franchising Awards Education National Franchise Convention Regular industry events FCA branding Website directory advertising Enquiries and Further Information E info@franchise.org.au W www.franchise.org.au Business Franchise Australia and New Zealand 95 FCA_Membership Ad.indd 1

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l i st i n gs

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

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

CHEM-DRY AUSTRALIA Unit 3, 30 Park Road, Mulgrave NSW 2756 Ph: 02 4587 6300 Fax: 02 4587 8733 Email: info@chemdry.com.au Website: www.chemdry.com.au

NATURE OF BUSINESS

OUTLETS

ASSOC MEMBER

INITIAL FEE

MIN INVEST

CONVENIENCE RETAIL & FUEL

620+

FCA, AACS

(site specific – part of Min. Investment)

Average of $775,000

ELECTRICAL TEST AND TAG

45

FCA

$35,000

$47,000 + GST + Vehicle

BOUTIQUE CARVERY FRANCHISE

36

Franchise Council of Australia

$60,000 + gst Incl. Training

$200,000

GOURMET BURGER RESTAURANT

15

Hogwarts School of Witchcraft and Wizardry / FCA

$30,000

$300,000

CARPET AND UPHOLSTERY CLEANING

141

International Franchise Association (IFA)

$16,500 + GST

$39,950 + GST

MOBILE DOG WASH

34

Franchise Council of Australia

$20,000

$30,000

STRATA CLEANING, GARDENING MAINTENANCE SERVICE

4

FCA, SCA

$40,000 $60,000

$40,000 - $60,000

PREMIUM CAFÉ FRANCHISE

13

Franchise Council of Australia

$50,000 + GST Incl. Training

Dependent on Site conditions $300k$500K

PIZZA FRANCHISE

1600+

-

$250,000

$300,000 $600,000

KITCHEN, BATHROOM & BEDROOM REMODELLING

71+ worldwide

FCA & FANZ

From $60,000

$75,000

AUTHENTIC ITALIAN FAMILY FOOD FRANCHISE

23

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

$10,000

$10,000

SME CASH FLOW SOLUTIONS

26

FCA

$40,000

-

PERSONAL TRAINING & FITNESS

7

FCA, Fitness Australia

$29,000 inc. equipment & marketing

$29,000

TILE & GROUT RESTORATION

-

FCA

-

$39,950 + GST & Vehicle

HAIR & BEAUTY – RETAIL & SERVICE

140

FCA

$66,000 + GST

$390,000 incl. stock, for Greenfield sites

HOME ORGANISING FRANCHISE

1

AAPO

$19,990

$24,990

TARGETED WEIGHT LOSS

82 (19 Franchise, 63 Licensee)

-

$25,000 ex gst

$136,700 ex gst

CITY FARMERS DOGWASH 190 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

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

FIRST CLASS CAPITAL Level 12 50 Margaret Street, Sydney NSW 2000 Phone: 02 9098 0860 Email: info@firstclasscapital.com.au Website: www.firstclasscapital.com.au

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: 0451 370 060 Fax: 03 9234 2266 Email: franchising@hairhousewarehouse.com.au Website: www.hhwhfranchising.com.au

HOME SORTED! PO Box 197, Keilor East VIC 3033 Phone: 1300 30 11 77 Email: franchise@homesorted.com.au Website: www.homesorted.com.au

HYPOXI AUSTRALIA PTY LTD 7 Blackfriars Street Chippendale NSW 2008 Ph: 02 9699 3011 Email: kellie.wilson@hypoxi.com.au Website: www.hypoxi.com.au

96 Business Franchise Australia and New Zealand

FRANCHISE 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

NATURE OF BUSINESS

OUTLETS

ASSOC MEMBER

INITIAL FEE

MIN INVEST

ANTENNA & HOME THEATRE INSTALLATION

150

ADTIA, FCA

$59,000

$59,000

MOBILE POOL SHOP & POOL SERVICE

85

FCA

$66,000

$66,000 + Vehicle

HAIRDRESSING

193 across Australia & NZ

FCA

$18,000 $35,000

$80,000 - $240,000

AUTHENTIC ITALIAN FAMILY FOOD FRANCHISE

70

FCA & FANZ

-

$300,000+

AERIAL PHOTOGRAPHY, VIDEOGRAPHY, SPOTTING & SURVEILLANCE

147 Territories available

FCA, Australian Franchise Registry

$60,000 + GST

$100,000 - $130,000 + GST (Inc. Franchise Fee)

HEALTHY EATING CAFÉ

3

-

$60,000 + gst

$200,000

RENT TO OWN APPLIANCES & ELECTRONICS

3

-

$60,000 ex GST

$100,000

FIXINGS AND FASTENER TRADE SALES

3

-

-

$350,000 inc. stock

MODERN SEAFOOD CAFÉ

2

Franchise Council of Australia

$60,000 + gst

$200,000

MEDITERRANEAN FAST FOOD CONCEPT

11

Franchise Council of Australia

$60,000 + gst

$200,000

SMOOTHIES, JUICE BAR, YOGHURT

-

-

MOBILE TOOLS AND EQUIPMENT FRANCHISE

170 +

FCA / FANZ

Start-up cost from $50,000

-

BEDDING RETAILER

78

Franchise Council of Australia

$50,000

$450,000+

SPORTS BAR & GRILL FRANCHISE

6

Franchise Registry

$50,000

$750,000

RETRO-FIT DOUBLE GLAZING

2

AWA

$40,000

Varies depending if vehicle needed

Real Estate Photography & Marketing Services

30 outlets

FCA

$49,000

$49,000

DOMESTIC AND COMMERCIAL CLEANING, GARDENING FRANCHISORS

1100

FCA

$16,000 + GST

$25,000

FENCING & HOME MAINTENANCE

4

MBA, FCA

POA

POA

RETAIL / TELECOMMUNICATION

160

-

Nil

$70,000 - $150,000

DI BELLA COFFEE MOBILE ESPRESSO VAN

28

FCA, Australian Franchise Registry

Included in turnkey purchase price

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

JUST CUTS™ Level 1, 4-6 Kingsway, Cronulla NSW 2230 Ph: 02 9527 5444 Fax: 02 9527 5144 Email: maree@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

NATIONAL DRONES PO Box 2322, Ivanhoe East VIC 3079 Ph: 1300 SKY VIEW (1300 759 843) Fax: 1300 784 493 Email: skyview@nationaldrones.com.au Website: www.nationaldrones.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

SNAP-ON TOOLS PO Box 6077 Seven Hills NSW 2148 Phone: Aus: 1800 762 766 NZ: 0800 762 766 Email: Sota.franchise@snapon.com Website: www.snapontools.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 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

TOP SNAP 208/40 Yeo Street, Neutral Bay, Sydney NSW 2089 Ph: 1300 TOP SNAP Email: franchise@topsnap.com Website: www.topsnap.com

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

V.I.P. HOME SERVICES FENCING & HOME MAINTENANCE PO Box 686, Mount Martha VIC 3934 Ph: 0402 898 555 Email: joinus@vipfandhm.com.au Website: www.vipfandhm.com.au/join

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

$40,000 + GST $170,000 - $250,000

Business Franchise Australia and New Zealand 97

a-z d i r ecto ry

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.

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

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

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

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 Queensland’s fastest growing dangerously good restaurant brand is turning food retail on its head!

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 and dangerously good gourmet burgers, which are 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 proud of our unconventional and out-of-

98 Business Franchise Australia and New Zealand

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

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.

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.

No prior electrical experience is required, just a passion for safety and a commitment to growing your business.

With low entry fees, minimal franchisee administration, and average returns between $1,000 and $3,000 per week an ATS franchise may be just the opportunity for you.

ATS were named FCA Emerging Franchisor of the Year 2011 and the FCA National Franchisee of the Year 2013 (less than 2 staff).

For further information please contact Steve Wren, National Sales Manager on 1300 287 669, email steve@ats.com.au or visit www.appliancetaggingservices.com.au

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

the-box approach. As a Burger urge Franchise Partner, you will receive: • Extensive operational and business training • Proven and refined 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 If you have the urge, please contact our Franchise Development & Marketing Manager Camilla Roberts on 0438 791 984 or email camilla@burgerurge.com.au

Chem-Dry Australia

have the drive and determination to work hard and

Chem-Dry is the world’s largest carpet cleaning franchise, and has been helping Australian’s realise their dream of business ownership since 1986.

enjoy their success.

Our unique, hot-carbonated water extraction method, combined with best in-class products and services, and unparalleled training and support, make it impossible to find a better cleaning franchise opportunity.

No experience is necessary, as Chem-Dry provide comprehensive training on all aspects of the business. We are looking for franchise partners that

City Farmers Dogwash

Our on-going marketing and operational support will ensure that you are able to enjoy the flexibility and lifestyle benefits that owning your own successful business can provide.

If you’re ready to make a clean break with your own Chem-Dry franchise, simply fill out the information form on our website, or call our franchise business info line on 1800 243 637.

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.

clean green strata

• No weekend or night work so more time with the family

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

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

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 1600 stores and sell over 90 million pizzas annually.

New franchises are supported through every

• 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

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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

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

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

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• 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

first class capital Small to medium sized businesses face a number of cash flow challenges in today’s buying environment.

Offering larger and longer trade credit terms, purchasing greater volumes of stock or even the day to day operating costs all puts cash flow pressure on the SME. First Class Capital is an independent Australian finance company specialising in developing and delivering innovative cash flow funding solutions to the underserviced small to medium sized business.

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.

We are a company that embraces technology by providing our solutions through a fully automated internet based system streamlining the process making it very quick and effortless for our clients.

Our solutions will help pay for those outstanding invoices, bridge the gap between accounts payable and receivable and even pay that pesky ATO bill.

Uniquely we have a solution that will even extend your 30 day trading terms to 6 months where you get paid upfront. www.firstclasscapital.com.au

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.

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.

that continues to evolve and generate strong returns for franchisees.

For more information call 0451 370 060, email franchising@hairhousewarehouse.com.au or visit www.hhwhfranchising.com.au.

HOME SORTED!

processes for operating a successful business.

Home Sorted! is the first (and only) Professional Home Organising Company to launch a Franchise Business within Australia.

If you’re extremely well organised, great at multitasking and an excellent communicator, then you are well on your way to meeting our criteria.

Our organising methods and systems are easily applicable to any household. Demand for our unique service is high and Home Sorted! is now looking for an extremely organised team of Franchisees to help expand our brand nationwide.

No previous experience is required, as we will teach, support and guide you.

Considering our line of work is organising, our business systems offer simple step-by-step

Home Sorted! Is currently seeking interest across all states. Please visit our website www.homesorted.com.au or contact us on 1300 30 11 77 | franchise@homesorted.com.au for more information.

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HYPOXI® Australia Give yourself the technological advantage and invest in a globally recognised health & fitness 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 measurable results for franchisees and clients.

HYPOXI® Australia (a division of Ardent Leisure) is the exclusive distributor and franchisor of the

HYPOXI® technology throughout Australia and New Zealand; and over the past 10 years has developed a studio network of over 80 company owned and independently owned HYPOXI studios.

Prospective Franchisees looking to turn their passion into a profit are encouraged to contact us for a confidential discussion.

Contact: Kellie Wilson – Sales Manager, Australian & New Zealand Phone: 02 9699 3011

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.

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

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™ 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.

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• 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

AUSTRALIA AND NEW ZEALAND

and arrange your free trial day on the road.

Alternatively visit our website www.jimsantennas.com.au

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

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

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 $80,000! Just Cuts™ Franchisees also have exclusive access to our professional retail range made in Europe; JUSTICE Professional™.

Contact: Luke Manning 0439 130 499 or maree@justcuts.com Website: justcuts.com/franchising LinkedIn: Just Cuts™ Franchising

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

national drones Want to ditch your boring desk job but can’t bear the thought of being tied to a retail outlet? Looking for variety in your workday and enjoy being outdoors, but don’t want to get your hands dirty? Look at things from a different perspective!

Exciting opportunities now exist to join National Drones; Australia’s first CASA certified franchised service provider of aerial photography, videography, spotting and surveillance services utilizing Unmanned Aerial Vehicles (UAV’s).

With hundreds of potential uses, UAV’s are being

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

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...

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

used to cut costs, deliver efficiencies and save valuable time across a range of industries including agriculture, asset inspection, building and solar panel inspections, civil engineering and construction, mining, insurance assessment, emergency services, commercial photography, cinematography, media and television.

No prior experience is necessary as all training is provided. Get your career flying today!

For initial enquiries, please call 1300 SKY VIEW or visit http://nationaldrones.com.au/franchiseopportunity to submit an enquiry form.

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

• 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

business franchise australia and new zealand

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

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

The Sky’s the Limit

• Mobile business

• Sign & start

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scrooz

scrooz f a s t e n e r s

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

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

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:

• 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

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

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

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

business franchise australia and new zealand

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

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

104 Business Franchise Australia and New Zealand

Website: www.smoothiefactory.com.au

SNAP-ON TOOLS Snap-on Tools Australia & New Zealand is a mobile franchise operation putting high quality tools and equipment into the hands of mechanics, engineers, and other professional tool users across the country.

Snap-on Tools is a subsidiary of Snap-on Incorporated, a leading global innovator, manufacturer of tools, diagnostics and equipment solutions for professional technicians, with an

established network of franchise operations across the globe.

After more than 25 years in the Australian market, Snap-on continues to perform, providing robust financial results for its network of over 170 franchisees. Extensive training and ongoing support is provided - no previous mechanical experience required.

Snap-on offers an exclusive finance package to assist new franchisees.

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 78 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:

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

• 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

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.

We are looking for passionate self-motivated people to join the Thermawood team.

Retro-Fitting fitting double glazing into existing wooden windows allows the home owner to retain the character of their windows, be more energy efficient, reduce energy costs and reduce noise.

Please contact Thermawood Retro-Fit Double Glazing for more information.

Along with installing double glazing Thermawood installers also fit draft/sound seals to all types of windows including double hung windows, casement windows and doors.

Info@thermawood.com.au www.thermawood.com.au 0455 555 330

Top snap

Photography, Drone Photography, Property Videos, 3D Home Scanning, Virtual Home Furnishings, Floor Plans and much more.

Top Snap specialises in Real Estate Photography Marketing in Australia and New Zealand for over a decade.

With the emergence of new and innovative technologies Property Marketing has never been this exciting!

Build your own business with Real Estate

Sounds interesting?

Contact us today and let’s have a chat.

Call 1300 TOP SNAP Email franchise@topsnap.com Web www.topsnap.com

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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

V.I.P. Home Services fencing & home maintenance

• Fencing franchises

New Thinking, New Business!

Fantastic ground floor opportunities are now available with V.I.P. Fencing & Home Maintenance.

Master Franchise Opportunities available Sydney, Adelaide, Brisbane and Perth.

• Home Maintenance franchises • “Quality Nailed” For further information, go to our website or call Warren Smith.

Mobile: 0402 898 555

Affordable Franchise opportunities, NOW selling in Melbourne and Victoria.

Email: joinus@vipfandhm.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 CAFé Xpresso Mobile Cafés 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 unequalled in the mobile café industry. Our customers enjoy frappés, energy drinks, chilled, bottled cold pressed coffee and food options such as gourmet sandwiches/wraps, salads as well as cookies and banana bread - all designed to complement the enjoyment of high quality specialty coffee products.

Our innovative van fit-out uses new technology that no

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.

106 Business Franchise Australia and New Zealand

Website: www.vipfandhm.com.au/join

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

longer requires noisy/expensive generators but also ensures franchisees can display food and beverage items in a large display fridge and freezer. Franchisees are encouraged to source some food and beverage items from local wholesale suppliers rather than through the franchisor; this ensures 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 2016 information pack: joinus@xpresso.com.au OR 1300 655 559

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

JEJAK GRAPHICS

a lasting impression

CREATIVE DESIGN SOLUTIONS

LEAVING A LASTING IMPRESSION Jejak Graphics is a freelance graphic design business based in Melbourne, Australia working with clients worldwide. With over 18 years experience in the design and print industry specialising in magazine layout and advert design as well as offering a number of other graphic design services and print solutions including: t $PSQPSBUF TUBUJPOFSZ t #SPDIVSFT BOE nZFST t 1PTUFS BOE CBOOFS EFTJHO t &EVDBUJPOBM NBOVBMT t 4QPSUT QSPHSBNT t .POUIMZ /FXTMFUUFST t 1SPEVDU MBCFMT BOE QBDLBHJOH Artwork is tailored to your brand and focused on your message and target BVEJFODF /P KPC JT UPP CJH PS TNBMM $POUBDU NF UPEBZ UP EJTDVTT IPX +FKBL (SBQIJDT DBO NBLF ZPVS DPNQBOZ or organisation leave ‘a lasting impression’.

P: 03 8790 8006 M: 04222 676 39 E: jejak@bigpond.com www.jejakgraphics.com.au

1 Year of T H E

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That’s right!

One year (6 issues) of Business Franchise Australia and New Zealand for only $39.95 AUD or $52.95 NZD.

Packed with information relating to many different areas of the franchising industry, Business Franchise Australia and New Zealand is a valuable and informative source of guidance.

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SUBSCRIBE Send me 6 issues (1 year) of Business Franchise Australia and New Zealand for only $39.95 AUD for delivery within Australia or $52.95 NZD for delivery within New Zealand.

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Name:__________________________________________________________________________________ Address:________________________________________________________________________________ City:____________________________________________________________________________________ State:________________________________________ Postal Code:________________________________ Phone Number:___________________________________________________________________________ Email:___________________________________________________________________________________ Credit Card No._____________________________ CCV No: ________________ Exp. Date______________ Mail to: CGB Publishing Pty Ltd PO Box 968 Mt Eliza Victoria 3930 AUS Email: cgb@cgbpublishing.com.au Business Franchise Australia New Zealand 108108 108 Business Business Franchise Franchise Australia Australia andand and New New Zealand Zealand

with change brings

OPPORTUNITY new thinking, new business M A S T E R F R A N C H I S E S AVA I L A B L E Wouldn’t you rather be a V.I.P.!

V.I.P. Home Services - Fencing and Home Maintenance is a newly launched division that is part of the iconic V.I.P. Home Services group. We have the pleasure of offering you this unique opportunity!

Currently, we are seeking suitable candidates to take up the limited Master Opportunities that are available Australia wide, in Fencing & Home Maintenance.

Our offer to you: • Join a trusted and established brand since 1979 • Have access to quality and modern systems • Have essentially two businesses for less than the price of one And much more...

In limited areas: Franchises are available in; Fencing OR Home Maintenance!

Visit our website for more information about this fantastic opportunity!

“Quality Nailed”

13 2613 vipfandhm.com.au