Business Franchise AUS & NZ January/February 2018 by CGB Publishing

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m a g a z i n e

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f r a n c h i s e e s VOL 12 ISSUE 02 jan/feb 2018

AUSTRALIA and NEW ZEALAND

essential beauty

wants you to succeed! donâ&#x20AC;&#x2122;t miss a

million dollar pay day franchising

know your rights

$6.95 (AUD), $7.95 (nz) inc. gst.

FINANCIAL & legal ADVICE

retail franchising feature LATEST NEWS

franchise directory

Shift to Combining Loyalty and Online Ordering

It’s no secret that loyalty programs are effective marketing tools. They increase sales, help retain customers, and improve your brand’s reputation. Combine a loyalty system with online ordering and you really maximise your sales potential. Most people in Australia have placed a restaurant takeaway or delivery order online. Consumers are inclined to order online because, more than ever before, they value convenience. That’s why some of Australia’s leading cafés, restaurants, and QSR’s use Redcat Polygon for their POS Management needs including sophisticated online ordering and loyalty solutions.

Redcat Polygon Online Ordering and Loyalty Features • no double keying • orders go straight to the kitchen • manage in-venue orders and online orders in the same place - integrated reporting - integrated to the Redcat Loyalty and gift card solution • customised websites and smartphone Apps

1300 4 REDCAT hello@redcat.com.au www.redcat.com.au

PB10424

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Help your franchise partners get the finance they need by becoming a Cashflow It accredited franchise system. Not only does accreditation reduce the challenges of accessing finance, it is also a powerful tool to assist in the growth of your franchise network. While Cashflow It operates with the flexibility of a small business, we have the resources and backing of one of Australiaâ&#x20AC;&#x2122;s largest non-bank finance companies - Thorn Group Ltd, an ASX 200 company with over 80 yearsâ&#x20AC;&#x2122; experience in the finance industry.

Cashflow It has been a key partner for the growth of the Rolld system. Where traditional lenders have rigid requirements, the team at Cashflow It have understood the challenges of a growing franchise system and have been prepared to partner for growth. Ray Esquieres, Co-Founder & CFO, Rolld Australia

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Franchise Accreditation Brochure.indd 1

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

AUSTRALIA and NEW ZEAL AND

AUSTR ALIA and NEW ZEAL AND

BUSINESS FRANCHISE AUSTRALIA and new zealand VOLUME 12 ISSUE 2, jan/feb 2018 publisher: Colin Bradbury. colin@cgbpublishing.com EDITOR: Joanne Tuffy. editor@cgbpublishing.com.au SALES DIRECTOR: Vikki Bradbury. vikki@cgbpublishing.com SALES & marketing manager: Kathleen Lennox. kathleen@cgbpublishing.com.au publisher’s assistant: Jorgia Rice. PRODUCTION: production@cgbpublishing.com.au ACCOUNTS: accounts@cgbpublishing.com.au GRAPHIC DESIGN: Jejak Graphics - Michelle Quinn jejak@bigpond.com COVER IMAGE: essential beauty TO SUBSCRIBE: www.businessfranchiseaustralia.com.au or www.isubscribe.com.au CGB PUBLISHING PO BOX 968 MT ELIZA, VICTORIA 3930 TEL: (03) 9787 8077

From the

Editor Welcome to the start of another twelve months of Business Franchise Australia and New Zealand magazine. As we say farewell to 2017 and move into 2018, I would like to take this opportunity to say thank you – to our readers for their enthusiasm for Business Franchise magazine and the great comments that we receive throughout the year – to our contributing writers, who continuously submit high quality and informative editorials, written to inspire and guide potential franchisees as they embark on their franchising journey – and last, but certainly not least, our advertisers and continuing supporters of all of our publications. As we celebrate another successful year passed, we wish the same to all members of the franchising community for the upcoming 12 months. The front cover this issue features Essential Beauty, a franchisor that has earmarked 2018 as a period of greater expansion. The beauty industry is booming as beauty and appearances are no longer considered a luxury but an essential part of daily life- making it a long-term business opportunity for people from all types of backgrounds. You can read more about this 100 per cent Australian owned and operated brand on page 10.

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? Want to get your hands on some of this money being handed over by eager consumers? If this is your franchise sector of choice, check out our retail feature, starting on page 33. In 2018, Business Franchise readers once again enter FREE into each of the Franchising & Business Opportunities Expo’s, being held in Sydney, Perth, Brisbane and Melbourne. Simply go to www.franchisingexpo.com.au and enter BFM when purchasing your tickets. Exhibition Manager Fiona Stacey says, “For many, it’s time to make a new start, and there is no better place to see so many business ideas all under one roof than the Franchising Expo!” As always, there is a great selection of articles throughout this magazine from leading franchising experts including bankers, lawyers, accountants and consultants. Plus franchise news and updates from the Franchise Council of Australia. So if your New Year’s resolution is to become your own boss by buying a franchise business, then you have picked up the right magazine. Enjoy the read. Joanne Tuffy Editor

FAX: (03) 9787 8499 Email: cgb@cgbpublishing.com.au www.businessfranchiseaustralia.com.au www.businessfranchisenz.co.nz

SUPPLIER FORUM

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

contents

january/february 2018

On the Cover 10

Cover Story: Essential Beauty We Want You to Succeed!

26 Don’t Miss a Million Dollar Pay Day Kerry Boulton, The Exit Strategy Group

33 Retail Franchising Feature 68 Franchising: Know Your Rights Dr Michael Schaper, ACCC

In Every Issue

Announcements from the Industry

Special Feature: Retail Franchising

Feature News Announcements from the industry

Feature editorial: Retail Franchising Check It Out!

Protecting and Promoting an Unrivalled Business Model

Hot Topics: Behind the Headlines

Professional Services Listings

Listings

A-Z Directory

What’s New!

Bruce Billson, Franchise Council of Australia

Jason Gehrke, Franchise Advisory Centre

Have Your Say 54 Rowan Hodge, Battery World

Profile 48 Luxaflex® Window Fashions 76 Franchising Expo

Snapshot

60 Ella Baché

also in this issue: 7-Eleven................................................................... 34, 94 Aircoat Australia. ........................................................ 94 Appliance Tagging Services. ...................... 21, 94

Franchisee in Action 18

Yarra Valley Farms

Focus Feature 65 Soul Origin

Begin Bright.................................................................. 94 Cashflow It........................................................................ 2 Clark Rubber........................................................ 53, 95 Crema Espresso........................................................ 95 Ecomist Australia....................................................... 95 Fasta Pasta.................................................................... 95 Fastway Couriers............................................. IFC, 96 FC Business Solutions............................................ 15 Focalpoint....................................................................... 96

Franchise Picks

Franchise Retail Brands......................................... 96 GroutPro. .........................................................................97 Hairhouse Warehouse.................................... 43, 97

58 Pizza Fresh Co. | Small Business Accounting Sweet Dreams and Goodnight

Jejak Graphics. ............................................................87 Jimâ&#x20AC;&#x2122;s Pool Care............................................................97 Just Cuts..........................................................................97

Expert Advice 12

Areas to Investigate When Buying a Franchise Bobbie Cole, Top Snap

16 Culture is King when Selecting the Right Franchise for You Stephen Raff, Ace Body Corporate Management

La Porchetta......................................................... 31, 98 Listen to your Body. ................................................. 98 Little Kickers & Little Rugby. ............................... 98 Mad Mex Fresh Mexican Grill..................... 59, 99 Magnetite Windows. ................................................ 99 Mail Boxes Etc.................................................. 99, IBC Matt Fiddes Martial Arts........................................ 99

22 How to Purchase an Existing Franchise Business Helen Kay & Bianca Reynolds, LegalVision

Midas. ............................................................................... 99

28 How Businesses can address Low Engagement Levels in Millennial Employees Bill McMurray, Qualtrics

National Drones........................................................100

Nanoshield...................................................................100 National Franchise Insurance Brokers...........71 Novus Glass. ..............................................................100 Oporto.............................................................. 100, OBC

44 Why Retailers must embrace Customer Feedback Vicky Katsabaris, Qualtrics

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

50 The Balance of Power Steve Wright, FTI Consulting

Smallprint...................................................................... 101

62 Funding Your First (and Subsequent) Franchise Purchase Labrina Tsekouras, Westpac 72

Creating a Dispute Resolution Plan for your business Alison Shaw, SHAW Mediation Australia

78 Checking your business with a Self-Audit FC Business Solutions

Sandwich Chefs.............................................. 75, 100 Snap-on Tools........................................................... 101 Soccajoeys.................................................................. 101 Spray Pave Australia.............................................. 101 SpudBAR...................................................................... 102 The Cash Back App. ............................................. 102 The Interface Financial Group IFG 50/50..................................................................... 102 Theobroma Lounges | Pavilions Bars..........................................................................61, 102

80 Tougher Policing for Super Guarantee puts Repeat Offenders on Notice Brad Eppingstall, RSM Australia

Trent Driving School............................................... 103

84 The Home-Based Office is Here to Stay David Banfield, The Interface Financial Group

Viva Energy.................................................................... 83

Thermawood.............................................................. 103 V.I.P. Home Services Fencing & Home Maintenance............................................................... 103 Wok Me. ........................................................................ 103

what’snew! Just Cuts open new Salon Concept in Conjunction with Myer Just Cuts recently celebrated the Grand Opening of its latest salon innovation, the Just Cuts Style Bar, a brand-new hair cutting and styling concession store on Level 1 of Myer in Westfield Fountain Gate, Victoria. The Style Bar will offer a range of services including Style Cuts, blow waves, straightening and hair styling, all delivered using JUSTICE Professional, a range of haircare products exclusively available from Just Cuts salons. “This new salon concept is based on our core business model with no appointments, fixed pricing and services delivered by fully qualified hair Stylists only. However, we’re now thrilled to offer our Clients another level of service with more hair styling than what’s offered in a traditional Just Cuts salon, also at an affordable price,” says Just Cuts founder and CEO, Denis McFadden. “It’s an ideal solution for time poor clients who want to pop in for a blow dry or styling for a special occasion while running other errands around the shopping centre,” he added.

All services include a personalised haircare consultation and recommendation from a fully qualified Stylist, educating clients on how to keep their hair looking its best every day.

FWO targets Businesses in Melbourne’s Inner East

yet this cohort makes up almost 30 per cent of the disputes we receive from this area,” Ms James said. This ranks the region ninth in the country in terms of the proportion of disputes received from young workers. Most of these disputes relate to the cafe, restaurant and takeaway foods sectors. Businesses across a range of industries will be audited, including those in the retail trade, accommodation and food services and education and training industries. Last financial year, the Fair Work Ombudsman received 244 disputes from Melbourne’s inner east region. The agency recovered more than $530,000 for 141 workers in the region during the same period.

The Fair Work Ombudsman’s latest proactive compliance and education campaign is targeting at least 200 businesses in Melbourne’s inner east. Fair Work Inspectors are checking wage and time records of a cross-section of businesses in Hawthorn, Kew, Camberwell, Doncaster and surrounding suburbs to ensure that they are complying with their workplace obligations. The region is being targeted primarily due to the vulnerability of its workforce, with

the large numbers of young workers and a significant culturally and linguistically diverse community. Thirty-one per cent of the population speaks a language other than English at home. Fair Work Ombudsman Natalie James said that young workers in particular are overrepresented in the disputes her agency deals with relating to the area. “Around one-fifth of the workforce in Melbourne’s inner east is aged between 15-24,

6 Business Franchise Australia and New Zealand

The Fair Work Ombudsman offers a range of free tools and resources for employers at www.fairwork.gov.au, including the Pay and Conditions Tool (PACT) to assist business owners to calculate applicable pay rates and templates for pay slips and time-and-wages sheets. Employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance about their rights and obligations in the workplace. A free interpreter service is available on 13 14 50.

Franchising Expo: Explore every opportunity

Jamaica Blue Awarded at World’s Largest Coffee Competition

The first Franchising Expo for 2018 runs from 17-18 March at the ICC Sydney at Darling Harbour, and is shaping up to be the biggest franchising event Sydney has ever seen. “ICC Sydney is a stunning venue and we are thrilled to be opening there in March,” says Stacey. “Being at Darling Harbour means there are many options for public transport and parking, and the exhibition facilities are second to none.”

Jamaica Blue recently received the highest industry accolade being named ‘Overall Large Franchise Champion’ at the 12th Pentair Everpure Golden Bean Roaster’s Competition - the world’s largest coffee roasting competition.

our customers receive consistently highquality coffee,” Regan said.

Endeavouring to find Australia’s best coffee roasting businesses, the judges awarded Jamaica Blue medals across all four categories entered, with Jamaica Blue’s Signature Blend and Colombia Single Origin collectively earning three silvers and a bronze:

“We received entries from over 200 Australian & New Zealand coffee roasting businesses, and there were 1,402 coffees judged across 10 categories through a blind tasting format. Competition was fierce, and we congratulate Jamaica Blue for coming away with the overall Golden Bean Large Franchise win, which is always a hotly contested award,” he said.

Jeremy Regan, Head of Coffee for Jamaica Blue attributes the brand’s continued success at the Golden Bean Competition to the company’s mission of sourcing the very best coffee to help customers escape the everyday. “We hold ourselves to the highest standards in sourcing and roasting great coffee, so to be recognised by our peers within the coffee industry is the greatest honour. Above all, it reinforces our commitment to ensuring that

According to Managing Director of Café Culture and Event Organiser of Golden Bean, Sean Edwards, 2017 represented the largest Golden Bean Championship on record.

This victory topped off a phenomenal year for Jamaica Blue. A Finalist at the Franchise Council of Australia’s 2017 Excellence in Franchising Awards, the brand also celebrated 25 years in business, which has seen the network grow from one suburban NSW café to an internationally recognised franchise of 170 cafés across seven countries.

Visitors to the show will not only benefit from meeting franchisors on the stands, but also from listening to experts and advisors speaking in the free seminar program. Plus, the Franchisee Success panel sessions presented by the Franchise Council of Australia are always popular, featuring successful franchisees and franchisors. “It’s a new year and many people are considering their lifestyle and career choices,” reflects Fiona Stacey. “For many, it’s time to make a new start, and there is no better place to see so many business ideas all under one roof than the Franchising Expo.” Sydney’s show will be followed by Franchising Expos in Perth on 6 May, Brisbane 21-22 July and Melbourne 25-26 August. For more information go to www.franchisingexpo.com.au Reader special: register to visit any show for FREE at www.franchisingexpo.com.au by using code BFM.

Business Franchise Australia and New Zealand 7

what’snew! Tradie Lady Leads the Way

ASC Injects New Life Into WA Medi-aesthetics clinic Australian Skin Clinics (ASC) has landed in Western Australia after 21 years of keeping women and men hair-free and care free in Queensland, New South Wales, Victoria and South Australia. Mandurah Forum has received a medi-aesthetics makeover with the addition of the first Australian Skin Clinics in Western Australia. ASC Mandurah franchisee Connor Grindlay, along with business partner Andrew Debryun, said they are excited to be able to offer Mandurah locals a new beauty experience. “Since opening we’ve received an outpouring of positive responses about our clinic and the services we have brought to the area,” Mr Grindlay said. Australian Skin Clinics’ CEO, Kevin Waite, said the company’s expansion into Western Australia is the result of a growing demand for medi-aesthetics in the state. “Our focus is to empower our clients to look and feel fantastic,” Mr Waite said. The Mandurah location represents the first move outside of Australia’s East Coast and Mr Waite said Western Australia can expect more Australian Skin Clinics over the coming years. “We are already looking at potential clinic locations in Perth and surrounding areas as we continue to grow our national footprint,” he said.

8 Business Franchise Australia and New Zealand

With only 11 per cent of women making up the construction industry1, Hire A Hubby, Australia’s largest handyman franchise, is on a mission to encourage more women to enter the handyman industry and challenge the stereotype of a traditional tradesperson. The trades industry is predominantly men working in construction, painting and carpentry but one Hire A Hubby franchisee, Emma Stone from Victoria, is setting an example for other women by becoming the go-to Tradie Lady in the Caulfield South community. Seeing an opportunity to enter the industry, Emma was determined to challenge herself, expand her skills and knowledge by breaking away from the traditional administrative female-focused roles to a more hands-on and practical environment where she could make a difference in the local community. “Everyone is always nervous trying something different for the first time but the more you do it, the more you learn and the more confidence you gain as a result. You need to have a bit of faith and trust that you are just as capable as anyone else,” said Stone. Research shows that from an early age, women are unaware that they can achieve a career in trades due to a lack of personal connection from a family role model or through educational options available to them. Additionally, they’re introduced to these opportunities much later in life through recruitment and even then, not as often as their male counterparts. Stone says some of the easiest jobs make the biggest difference to a home and although many customers are often surprised to see a female tradesperson working on site, she believes the community is welcoming diversity and starting to thinking differently about the handyman trade. 1. https://www.wgea.gov.au/sites/default/files/Gender%20composition-of-the-workforceby-industry.pdf

Research shows Red Tape has Employers Walking on Eggshells Work Act leaving themselves exposed to penalties, fines, and serious legal costs.” The Employsure Workplace Index of over 500 Australian small and medium sized businesses highlighted the three key issues for employers as: - staff calling in sick - how to end employment, and - the complexity of workplace laws. According to Ed, “We found 86 per cent of small businesses don’t fully understand their obligations as an employer under Fair Work, so it’s not surprising that employers lose 60 per cent of unfair dismissal cases. They are exposing their businesses to financial risk.”

Only 1 in 3 employers are confident they are compliant with the Fair Work Act according to the Employsure Workplace Index, conducted by the largest workplace relations firm in Australia. Further, 20 per cent admit they know very

little or nothing at all about the Fair Work Act.

The research also revealed 1 in 4 employers find it difficult to calculate the correct pay, entitlements, and interpret the Modern Awards for their business. In addition, only 10 per cent of managers are confident they understand the Fair Work Act.

Employsure’s Managing Director, Ed Mallett, said: “We receive over 600 calls a day from employers confused by what they are required to do to meet the requirements of the Fair

Also of concern is small business employers don’t know where to go to find help with over one third admitting they rely on Google for information on managing their Fair Work obligations - www.fairwork.gov.au

Crust Parap Celebrate Business Birthday by Raising Money for Charity Franchisee Sally Illingworth and staff at Crust Parap successfully raised $3,529.60 in one night for the Make A Wish Foundation Australia, when 200+ Darwin locals went to the store to support the cause. Sally says, “Since we started trading in November of 2014 we have chosen to celebrate each business birthday by raising dough for the foundation as a gesture of appreciation for how they supported my brother throughout his cancer journey from the age of ten. “With our success, we have proudly donated $12,076 in three years which is an amazing and humbling achievement for us as a small pizza business in the Northern Territory. We hope that our efforts encourage territory businesses of all sizes to challenge themselves and use their presence as an opportunity to drive positive social outcomes and inspire the lives of others. “Since November 2014 we have used our presence to support the Darwin community as much as we possibly can, including the donation of 101 Large Pizzas to the evacuees of the Darwin River Floods in December of 2015. “We express our thanks to the Darwinites who have helped us to raise $12,076 and look forard to raising more dough in 12 months.”

Business Franchise Australia and New Zealand 9

c ov er sto ry: ess en t i a l b e au t y

WE WANT YOU TO SUCCEED! Beauty and appearances are no longer considered a luxury but have become essential in people’s daily lives. Men and women today are searching for ways to look and feel younger. The beauty industry is booming making it a longterm business opportunity for people from all types of backgrounds. One of Australia’s largest beauty salon brands Essential Beauty, is 100 per cent Australian owned and operated with over 70 salons in all states. 2018 has been earmarked for greater expansion into NSW & QLD in particular.

AN AUSTRALIAN SUCCESS STORY

20-year reign at the top, developing a thriving franchise network. The business is committed to consistently providing high client satisfaction through outstanding service with quality products. “A franchise network can only succeed with a strong focus on its clients and the services and products that create value for them, like Laser and Injectables. We provide beauty services with the latest equipment in order to take treatments to a new level of experience. This guarantees client satisfaction,” he said.

TRUSTED BRAND NAME Essential Beauty has developed an enviable brand name in the industry across Australia and is well-regarded and recognised. This allows new franchisees to focus on the day to day operations of the business and leverage from strong brand recognition and credibility in the market place. Essential Beauty’s goal is to be innovators within the industry, continuously taking beauty treatments to a new level of client experience. The beauty industry is constantly evolving and clients’ expectations for new treatments and products is higher than ever.

“Our award-winning business model is well developed and structured and has served our franchisees well through challenging periods such as the GFC and other market downturns,” says Paul Gogia, Asset & Strategy Manager for the brand.

The service offering initially started with traditional beauty treatments. After 27 years of business, it has evolved to include Laser and IPL hair removal, Injectables, Fashion piercing, Facials and Skincare, all performed within a salon environment that is modern and unique in style.

The business has been in operation since 1990 when founder Melissa Gav opened a single beauty room outlet in Adelaide.

WHY ESSENTIAL BEAUTY?

“Our 27 years of business experience shows in the billion-dollar market place. We have a continued focus on client service and people development through our comprehensive training programs including over 40 e-Learning online modules,” he said. CEO Tony Maiello has driven Essential Beauty from strength to strength over his

“This question is at the heart of what all potential Essential Beauty franchisees consider when choosing to join us. There are numerous items to factor in and it can be a major family decision,” says Paul Gogia. Why people consider joining franchises is based on numerous factors. However, Essential Beauty provides an environment where the franchisee can thrive and enjoy an

10 Business Franchise Australia and New Zealand

enviable lifestyle. The benefits of owning an Essential Beauty franchise are unique in such a lucrative and in-demand industry. Paul continues, “Making people feel good about the way they look is the DNA of the company. Whenever a client enters an Essential Beauty salon, we ensure they receive the best beauty treatments and services available, performed by dedicated therapists, who create an exceptional experience. The staff represent the company’s values and dedication to client service.” Training is essential in every successful business in order to gain high client satisfaction. Potential Essential Beauty franchisees do not need to have a background in the beauty industry to join the team. Essential Beauty has established ongoing training programs, professional courses and marketing strategies to support franchisees on their way to a successful beauty business by meeting the client’s needs. Other benefits of partnering with Essential Beauty include product innovation, market research and modern technology for salons.

BUSINESS SUCCESS We all know time is essential when operating a successful business. Having the systems at your fingertips to implement effective management on a day-to-day level, means more time to undertake other lifestyle opportunities that present.

Essential Beauty Watergardens Franchisee Debra Tate has seen her salon rise from strength to strength since opening six years ago. Having always wanted my own business and loving the beauty industry, I was fortunate enough to come across the Essential Beauty brand in 2011. Twelve months later, I had my own salon. Yes, I was nervous at first, but the in-depth training and support from Essential Beauty head office soon put my mind at ease. Buying an Essential Beauty salon is a great opportunity to become your own boss with the added benefit of a great support network.

Further, the company undertakes unique market research overseas to ensure its franchisees are well-versed in all aspects of up and coming trends in the beauty industry.

From the moment you open your Essential Beauty salon, you have a business that has an established brand with a great reputation. This ensures that clients continue to flock in every day because head office is working in the background on marketing concepts to attract more clients for my business.

Not having to attend expos and research scientific studies and new products, frees up large amounts of time for franchisees to be more flexible with daily life. In turn, they can invest this time into their business and clients. This creates a win-win situation for all parties. The most rewarding moments working at Essential Beauty are the happy faces of clients after they have received their treatment. It makes work/life much more enjoyable knowing that franchisees have made a difference in people’s lives. Happy clients turn into long term clients, then into friends and eventually, a work family. They put their trust, beauty and health requirements in our hands. This is both a great responsibility and great honour. It is an extremely rewarding industry to be involved with. Essential Beauty provides strong business support from the very start of your franchise journey and they are close by to ensure they can assist when you need it most. Having that security and support from the very beginning is something you do not receive when you open your own business. As Matthew Katalinic, CFO of Essential Beauty says, “We provide our franchisees with strong financial support to ensure their business succeeds. This includes assisting

them with the financial tools and training to understand the direction and profitability of their business.”

LET’S GROW TOGETHER! If you want to become part of the Essential Beauty family, contact us today for more information. You do not need to have a background in the beauty industry to become a successful franchisee, though you must take pleasure in working with people. Contact Paul Gogia directly for any franchise enquiries on: 0404 088 946 paul@essentialbeauty.com.au ebfranchise.com.au

Since opening, our salon has gone from strength to strength. We have an amazing team of dedicated and talented beauty therapists, a healthy regular clientele and a consistent increase in sales year on year. Having a franchise makes life easier when owning your own business. One email to head office and my stock is ordered and it arrives quickly. I don’t have to drive around to suppliers trying to get the best prices, that’s all done for me. With the introduction of Laser Hair Removal, I didn’t have to worry about what machine to buy. It’s all done for us plus we have an E-Learning program that makes team training really easy. Understanding how much goes into operating a successful business, I know it was the best decision I ever made to purchase my salon at Watergardens with Essential Beauty.

Business Franchise Australia and New Zealand 11

e x pert a dv i c e

Areas to investigate when buying a franchise

Buying a franchise is a significant and life-changing move that requires a lot of consideration and thorough research to make a wellrounded and confident decision. With so many facets of a business, we look at some of the key areas to investigate before signing on the dotted line.

Firstly, is franchising right for you? One common misconception among

potential franchisees is that they believe they are basically buying themselves a job. This couldn’t be further from the truth. Franchisees need to be prepared, willing and able to take on the responsibilities associated with running their own business.1 Similarly; the ‘cash-cow’ assumption - that a franchise is profitable from day one. There are lower risks involved with buying a franchise, but like any business they require a defined strategy and ongoing development to become profitable. Another common misconception is that a franchise will run itself, and some owners make the mistake of becoming complacent once up and running. There will be some form of start-up training and ongoing support from

12 Business Franchise Australia and New Zealand

the franchisor though it takes consistent hard work and exceptional business management skills to build and maintain a successful franchise. Even if it reaches a point where staff can manage the day-to-day operations, you still need to be actively involved in the business. Can you work within a set structure and operational guidelines? While you may have the entrepreneurial drive and want the freedom of owning your own business, franchising models don’t offer much wiggle room when it comes to expressing individuality, as they are generally founded on the basis of tried and tested methods for best results.

“One common misconception among potential franchisees is that they believe they are basically buying themselves a job.” Bobbie Cole | Marketing & Franchise Support | Top Snap

while ensuring you have adequate borrowing capacity, including working capital, to successfully establish this type of business.2

The Importance of Due Diligence It’s crucial to ensure you completely understand the financial, legal and practical implications of operating a franchise and the franchise agreement in its entirety. Dedicating sufficient time to the due diligence process is key in making an educated decision to reduce the risk of issues later on.

Franchising is much more than fast food, from all forms of hospitality to retail, b2b and services, there are many types of franchise concepts available - each with unique strengths and weaknesses, so you need to assess what style would best support your personality, goals and expectations. Once you’ve made an evaluation, you can then narrow your search down to a few systems to request further info from. If you’ve assessed the information and you’re confident that a particular franchise system will suit your needs, the next step would be to commence the application process,

Questions for current franchisees: • How long have you been a franchisee? • What first attracted you to this franchise?

Where to start

Questions for former franchisees:

The process can seem overwhelming, Griffith University’s Asia-Pacific Centre for Franchising Excellence has developed a free online pre-entry franchise education program, to assist prospective franchisees with conducting their due-diligence effectively, and help ensure people are well informed about franchising and what to expect as a franchisee.3

• Did you get accounting, legal or business advice before buying the franchise?

Legal and Financial

• What franchise and industry-specific training or education have you or your personnel undertaken in the last 12 months?

The franchisor must maintain and provide franchisees (current and potential) with a disclosure document, which includes current information that is material to the running of the franchised business.4

What are your income and lifestyle expectations, and how does that impact your options?

operations of a franchise is a common query amongst potential franchisees. But how do you gather such information? As part of your due diligence it’s important you speak to the franchisor, existing franchisees and ex-franchisees. Below are some questions recommended by the Asia-Pacific Centre for Franchising Excellence.

The disclosure document may include; Copy of lease (in the case where a franchisee is occupying premises leased from/by the franchisor); copies of financial statements and any other agreements pertinent to the operations of the franchise. It is also now mandatory that prospective franchisees obtain independent, third-party professional advice (solicitor, accountant and/ or business adviser) and provide a signed statement informing of such to the franchisor during the purchase process. To fully understand your rights and obligations as a franchisee, it’s recommended to take some time to study the Franchising Code of Conduct, as it covers all legal and financial requirements in detail.

Operational & Practical Being familiar with the typical day-to-day

• Did the business meet your income and lifestyle expectations?

Questions for the franchisor: • What financial data can be provided to assist the putting together of a detailed and relevant business plan?

Other areas to investigate: • The franchise territory - is it exclusive, non-exclusive, do you get first option on additional franchises in the area? • In addition to the initial capital investment, what other start-up or ongoing costs could you expect to pay?

Training & Support Finding out what initial and ongoing training and support is important for the day-to-day operations of your business, and whether or not training requires funding external to your initial capital investment. Do they provide ‘day-in-the-life’ training with a current successful franchisee - whether it is in-store or out on the road with a service franchise? Does the franchisor provide initial training for your staff? Or is this (and the cost) left up to franchisees?

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“Dedicating sufficient time to the due diligence process is key in making an educated decision to reduce the risk of issues later on.”

To what extent does the franchisor provide support? Do they have field support staff, how many and how often do they visit franchisees?

• Stay up to date with trade-specific journals, become a member of industry associations and attend relevant expos/trade shows.

Systems & Processes

Marketing

Are the operations manuals up to date, and go into depth regarding policies and procedures for the majority of business matters? E.g. From scripts for sales calls to best practices for HR and recruitment.

By now you may have researched and found that the entry cost to buy well-known franchise brands is quite high, and out of reach to the majority of prospective franchise owners.

What proprietary systems do they have? Is the POS system custom made for their products and services or is it left up to franchisees to purchase and maintain an off-the-shelf model?

This doesn’t mean that owning your own franchise business is impossible; you just need to know what to look for. During the due diligence phase of purchasing a franchise, branding and marketing are the areas sometimes overlooked.

Industry & Market Research An activity often overlooked by franchisees is conducting their own market research, albeit necessary to understand your customers, competitors and industry.5 Customers: • Who are they and what are their needs? • When and why will they buy? • How much are they willing to pay for your products or services? Competitors: • What products and services do your competitors sell, and for what price? How do they market their business? • Do you know your competitors’ current market share, pricing and competitive advantage? Industry: • Are there any political, legal, economic, social and cultural issues that may affect your business?

Look for consistency: Subscribe to the franchisor’s email-marketing list, request copies of brochures, flyers and any advertising material (magazine, print ads etc.), make time to go through their website and find out when it was last updated. Is the look-and-feel modern and consistent through all mediums? Are their messages the same or similar? When a company invests appropriate time and money (potentially the money you will be contributing to marketing) into developing the brand identity and branding strategy, everything should look flawless and consistent. Presence in the industry: Have you checked out their social media profiles? And those of their franchisees? Are there many online reviews about them, their products or services, or their individual franchises? If they have a high social media presence and followship, with unique content - they can be perceived as a leader/innovator in their industry.

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Prospective franchisees should look at what the brand stands for, if they align themselves and their personality with the brand, and what kind of support they will receive from the franchisor to build the brand locally. And, is that brand strong enough to pull customers for that particular product or service?6

How long should due-diligence take? Even though there is a 14 day waiting period when buying a franchise, this shouldn’t be considered an indication of how long the duediligence process ‘should’ take. Don’t feel rushed; buying a franchise is possibly one of the biggest life decisions a person can make, and not forgetting franchise agreements are legally binding documents; due-diligence is a process that should continue until you are comfortable that you are making a fully-informed and confident decision. 1 http://www.evancarmichael.com/library/david-banfield/5-CommonFranchising-Myths-Busted.html 2

https://www.franchise.org.au/buying-a-franchise.html

3 https://www.franchise.edu.au/home/education/for-franchisees/pre-entryfranchise-education 4

https://www.legislation.gov.au/Details/F2017C00182

5 https://www.business.qld.gov.au/starting-business/planning/turn-into-business/ market-research

6https://www.linkedin.com/pulse/20140814044523-branding-an-importantaspect-in-franchising

Bobbie Cole joined Top Snap in 2016 as part of the Marketing & Franchise Support team, training and assisting franchisees with daily business operations. Top Snap is a business-to-business franchise, providing a full range of visual marketing services to the real estate and property industry. 1300 TOP SNAP hello@topsnap.com www.topsnap.com

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Business Franchise Australia and New Zealand 15

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Culture is King

when selecting the right franchise for you As Franchisor and CEO of one of Australia’s largest strata management companies, I am often asked one simple question: ‘What makes a franchisee successful?’. My answer to this question has evolved quite significantly over the years and if truth be told, measuring success can be interpreted in a myriad number of ways as some people measure success according to financial growth, whereas others find work/life balance as a better measurement of success, or even something completely different entirely.

“A successful franchisee in my opinion is someone that best embraces the culture and group mentality of the brand that they have decided to represent.” Stephen Raff | Franchisor and CEO Ace Body Corporate Management

For the sake of this article, I will determine that success can be measured by overall happiness. Happiness is an umbrella term that considers work/life balance, financial security and finding challenging yet rewarding work as a franchisee, but most importantly happiness correlates to belonging to a group of likeminded individuals that share purpose and direction. That is why belonging to a franchise

16 Business Franchise Australia and New Zealand

group can be so empowering and I would argue that a successful franchisee is always someone that best fits the ‘Culture’ of the franchise they decide to belong to. A successful franchisee in my opinion is someone that best embraces the culture and group mentality of the brand that they have decided to represent. As a franchisee you are a

part of the brand and by default have become an owner in the business. All potential franchisees, when purchasing a franchise, should first research the franchise and investigate whether their own personal goals and aspirations marry up with the culture of the franchise group, because if not, it is very likely not the franchise for you. I have met with hundreds of potential franchisees over the past 22 years that on paper have been the perfect candidate for my industry, they have been university educated, have good financial understanding, comprehend the importance of local area marketing and have experience in mediation. However, when it has come time to meet with the franchisee face to face, it often becomes apparent that their goals and aspirations are completely different to the culture of the franchise group. While short term this would not be too much of a problem as the potential franchisee undeniably has the skills to operate a franchise and likely grow and improve the overall brand, long term this could lead to a toxic work environment for other franchisees and create conflict with the franchisor when misaligned values start to become noticeable. Happiness is subsequently at an all-time low, because the franchisee wants to head in one direction while the rest of the group is moving the other way and while the group culture will eventually win, it has taken time and effort away from focusing on more important endeavours. Allowing these people to become franchisees would have been doing a disservice, not only to myself, but also to current franchisees that are on this journey together, that believe in the culture and direction of the franchise group and an established way of doing things. While it is true that goals and ambition change with time, it is always best to have everyone working together and if I get the sense that someone is not going to be a good fit culturally, I thank them for their interest but suggest that this is not the best option for all concerned. I have always valued the honesty of potential franchisees when considering what franchise might be the best fit for them and I know other franchisors also value honesty very highly. Entering into a franchise agreement is one of the biggest decisions that you will ever make in your life, and while everyone has some doubts about their own ability or potential risks with operating their own business, the one thing you should be certain of is that

your personal goals align with the culture and direction of the franchise group.

system and ask whether this aligns with their current franchise culture.

The franchise industry in Australia is incredibly diverse and there are many options available to potential purchasers, so you should never feel rushed into making a major decision without being confident, doing so will just lead to problems for both you and the franchisor in the first 18 months.

2. Contact franchisees already operating in the system and ask them whether they are happy to belong to the organisation.

As a new or potential franchisee, I will let you in on a little piece of advice. It is much more advantageous to feel happy and confident as a franchisee that embraces the company culture and believes in the brand long term, than operating within a brand that you do not care for, with the only thing driving you being the financial gain. Your motivation for carrying out the work will likely wane much faster than if you were passionate about the brand and company youâ&#x20AC;&#x2122;re representing, and without passion you may not be getting the best successes that could be achieved to help grow your franchise. I have many franchisees that have been with me for over 15 years. These franchisees have been integral to the development of a successful culture and while there have been times when I would have liked them to grow the business more, they are happy with the current position of their business including their financial position and work/life balance. Securing long term happy relationships with your franchisor is one of the critical factors determining sustained growth and expansion within a franchise environment and this can be directly related back to having a strong company culture. Okay, so now that we have established how important the alignment between a franchisee and the existing franchise system is, what can you as a franchisee do to ensure that you are entering the right long-term environment for you? 1. Be completely honest with the franchisor or head office about what you would like to achieve by entering into this franchise

3. Ask the franchisor to provide the contact information of some industry relevant suppliers and then ask them how the franchise is perceived in the industry. 4. Repeat question one and ask further questions to the franchisor and head office. Culture really is king when entering a franchise environment, so I implore all potential franchisees to do their homework and make sure that they are going to fit in well with the current culture and vision of the franchise. Franchising really is a great opportunity that allows many different people the opportunity to operate their own business, I wish you all the best in your hunt for the perfect cultural fit. Stephen Raff is the CEO and franchisor of Ace Body Corporate Management and supports over 118 franchised areas under the Ace name around Australia. Holding a Certificate IV in Assessment and Workplace Training, Stephen is a qualified Surveyor for Retirement Villages, an Accredited Mediator and holds a Masterâ&#x20AC;&#x2122;s Degree in Management. Stephen is also the author of The Body Corporate Handbook, Strata Living Stories and he co-authored the bestselling book, Top Franchise CEOsâ&#x20AC;&#x2122; Secrets Revealed. Ace Body Corporate Management (Ace) is the largest 100 per cent Australian owned strata management company with franchises and their support staff managing property worth an estimated replacement value of $20 billion. Ace currently manages over 60,000 strata title units nationwide. www.acebodycorp.com.au

Business Franchise Australia and New Zealand 17

fran c h isee in Acti o n : Ya r r a Va l l e y Fa r m s

A FRESH FRANCHISE

IDEAL FOR EARLY BIRDS

Working for Australia’s most trusted Wholesale Fruit and Vegetable suppliers wasn’t initially a part of Andrew Borg’s career plan. Andrew trained as an Architect and worked in Project Management, but a few years and a couple of children down the line he found himself working as a Forklift Driver in a business and with people that he didn’t like.

Searching on the internet looking at the many options available, Andrew came across Yarra Valley Farms. Although originally not looking for a franchise, Andrew was impressed with what he read. “I hadn’t considered buying into a franchise before, but when I came across the Yarra Valley model and understood how the onus was on me to generate business and keep my customers happy, I realised I would enjoy doing that and it really appealed to me. I hate the idea of being a salesperson, but that’s what I’m doing, although it doesn’t feel like it! As soon as I met the Franchise Manager, it

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really solidified that I was making the right decision,” says Andrew. With the help of technology and franchising, Yarra Valley Farms have built a network of farmers, agents, and owner-operators who deliver fresh fruit and vegetables from the farms to their customers, whether they are restaurants, cafes, care facilities, hospitals, universities, etc. Buying an existing route in August 2016, Andrew has increased sales by $5,000 per week, attributing this to his personality and the rapport he has built with his customers.

“I hadn’t considered buying into a franchise before, but when I came across the Yarra Valley model and understood how the onus was on me to generate business and keep my customers happy.” AUSTRALIA’S MOST VALUED Wholesale suppliers of quality fruit and vegetables, Yarra Valley Farms source the fresh produce from farmers and growers and deliver directly to the customer’s door using owneroperated franchisees such as Andrew. Founded in 2001 by Bill Kollatos, Yarra Valley Farms became the first Australian organisation within this industry to establish a successful franchising model after just 18 months in business. Today - 16 years later orders in excess of $45 million are generated annually with a current annual growth rate of 20 per cent for the last three years.

“I can actually have a conversation with each of my customers and take an interest in their lives without the traditional pressure of being in a sales environment. I love being out on the road and have a smile on my face throughout the day! You learn about your customer’s likes, dislikes, family, holidays, how they like their produce, and what they’re using it for. Taking an interest is one of the key aspects of the success of the business. If you can make yourself valuable to them then they soon realise they can’t function their business without you,’ Andrew says.

Using a unique online ordering system, customers directly place orders with Yarra Valley Farms and the produce is sourced fresh every day by a team of buyers. These orders - 180,000+ each year - are then picked and packed by the Yarra Valley Farms team at the distribution centres located in Melbourne, Sydney, Brisbane and the Northern Rivers/ Gold Coast. Fulfilling orders to over 2,000 customers each day, franchisees collect the produce and deliver it the same morning. A Yarra Valley Farms Franchisee is an early bird! – they start early but they finish early too! This gives them the flexibility to generate more opportunities, spend time with their families or on their personal interests.

Andrew Borg

For Andrew, this means a 5am start but he’s usually home by midday and with three boys under the age of four, this is invaluable to the family and his home-life balance. Andrew notes, “One of the main deciding factors for me was the time I would finish my day. In my forklift job I was working 2.30pm until 12.30am with no option available to make changes to accommodate my growing family. Being a franchisee with Yarra Valley Farms will allow me to be involved when my boys start school. Whether it to simply be there at the end of their day, or attend duringor after-school sports and activities etc.”

SUPPORT AND TRAINING Although each Yarra Valley franchisee is responsible for the success of their territory, they’re not alone. With the assistance of 100 support staff, each franchisee enjoys a great deal of support, which includes: • Induction – prior to getting started you get a chance to meet the team, see the business

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fran c h isee in Acti o n : Ya r r a Va l l e y Fa r m s

in operation, and spend time in a territory so you can see the role of the franchisee for yourself. • Training – you’ll spend time with an experienced and qualified team who provide detailed training in all areas of the business. • Support Team – the team of service professionals are always available for customers and franchisees to receive support. • Online Ordering System – the unique and market-leading online ordering system can be accessed by customers and franchisees to make product ordering quick and simple. • Ready-to-go Orders – all customer orders are picked, packed and ready for franchisees to check and collect each morning. • Invoice Preparation – an online system will prepare your invoices ready for you to print and drop off to your customer with the delivery. • Marketing Support – you’ll be provided with the sales tools you need to create awareness in your area and grow the customer base in your territory. • Delivery Relief Service – most small business owners worry about never getting the chance to have a break and recharge the batteries as there’s no-one to look after things if they’re not around. Everyone needs time out at some stage, so Yarra Valley Farms allow you to arrange to take some time off, and their professional team will cover your business and look after your customers. This support network is very important to Andrew, both at the beginning of his franchising journey and now, as he continues to grow his territory.

“I reached out to Yarra Valley Farms when my youngest son was on his way, so as you can imagine it was an extremely busy and stressful time and I needed things to be straightforward, which they were. “Buying an existing route, I was able to spend two weeks with the previous franchisee, which got me up and running. But as time went on, I realised there were areas lacking in my knowledge base, which I required training for. I addressed these issues with the Franchisee Manager at Support Office and things soon fell into place. Support Office have now hired a Business Development Manager who has helped me to learn new sales techniques for approaching customers etc., which in turn has brought new accounts onboard. “We also have monthly meetings, where all the franchisees get together and we receive updates with regard to what’s happening in the business. They’re used to communicate new products coming into season, new procedures for the business moving forward, and we also receive training in new systems, practices and technology, having recently changed from a PDA to new smartphone technology,” explains Andrew.

INCOME GUARANTEE Following an initial investment of $75,000 plus legal document and truck costs, franchisees pay a small ongoing royalty of two per cent of Gross revenue on all Sales excluding corporate customer sales. Providing a defined and exclusive territory, Yarra Valley Farms give a guaranteed minimum gross income for the first six months of $2,000 per week, which is derived from Corporate and Franchisee customers. Andrews says, “My weekly sales figure is made up in a number of different ways. Eighty per

20 Business Franchise Australia and New Zealand

“Using a unique online ordering system, customers directly place orders with Yarra Valley Farms and the produce is sourced fresh every day by a team of buyers.” C

cent of my customers are mine, that I have sourced directly and twenty per cent are Corporate clients, and include big businesses such as Nando’s. I receive a percentage on the sales which come directly from Support Office - basically anything that is sold within my territory I receive a percentage.” Although the support offered from Yarra Valley Farms is second to none, Andrew emphasises the fact that at the end of the day, each franchisee is responsible for the success of their business. “In my opinion, I’ve bought the territory, the branding and also the time of the warehouse staff which enables me to be ready to leave on time for my deliveries. But new franchisees need to realise that ultimately this is their business. It’s a hard job but very rewarding - it is what you make it!”

KEY REQUIREMENTS Yarra Valley Farms are looking for positive, passionate, motivated and fun-loving franchisees, who are over 18 years with a clean Australian Drivers Licence and a good level of English literacy to join the team. If you have a customer focused mentality, a good eye for details, the ability to connect with people and enjoy getting up with the birds in the morning then Yarra Valley Farms would love to hear from you. For more information contact Darren Young now on: 0428 224 433 Darren.young@yarravalleyfarms.com.au

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How to Purchase an Existing Franchised Business For a business buyer, the franchise space presents several advantages over starting your own business or buying another type of business. A franchised business not only possesses established clientele, but also prominent brand recognition. When starting out on your journey with buying a franchise, it can be comforting to know that you do not have to start from scratch as someone has already done the groundwork to build the business up to where it is today.

The choice of buying an existing franchised business as opposed to establishing a new franchise location is entirely up to you. While buying an existing franchised business has many benefits, you will need to consider if the cost of doing so is suitable for you. In addition to paying the franchisor for the right to operate the franchise, you will also be paying the existing franchisee for the hard work they have put into growing the franchised business. The sale process can be daunting and unfamiliar â&#x20AC;&#x201C; this article sets out the essential aspects of purchasing an existing franchised business, in particular: 1. the sale and transfer process; 2. the sale of business contract; 3. the franchise agreement; and 4. the lease.

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The Sale and Transfer Process Once you are ready to take the first step of buying an existing franchised business, it is important to understand the sales process to ensure a successful business purchase. There are five common steps: 1. Making an offer; 2. Negotiating the key terms of the sale; 3. Reviewing, negotiating and signing the sale of business contract; 4. Obtaining franchisor consent and entering into the franchise agreement; and 5. Finalising your purchase of the business. Whenever a franchisee wishes to sell their business, they must comply with the terms of their existing franchise agreement. As the franchisor is the overarching owner of the franchise network, they must provide their

“It can be comforting to know that you do not have to start from scratch as someone has already done the groundwork to build the business up to where it is today.” Helen Kay | Practice Leader | LegalVision

The Franchise Agreement “Whenever a franchisee wishes to sell their business, they must comply with the terms of their existing franchise agreement.” is withheld, the sale cannot go ahead. Consent cannot be unreasonably withheld). 5. If the franchisor provides consent, the buyer and the franchisee must then satisfy the conditions of that consent (for example, your experience, financial position and suitability to join the franchise network) as well as prepare a sale of business contract. 6. The buyer enters into a new franchise agreement with the franchisor.

The Sale of Business Contract

consent to the sale as well as to you becoming a franchisee. This means that there are extra steps that need to be taken compared to the sale of an independent business. The Franchising Code of Conduct (the Code) sets out the transfer process that must be followed. The standard process has six steps: 1. The franchisee first offers the business for sale to the franchisor. 2. The franchisor must notify the franchisee within 21 days if they wish to accept the offer (this timeframe may vary). 3. If the franchisor does not wish to purchase the franchise, the franchisee must seek their consent to transfer it to a particular buyer. 4. Based on the requirements of the franchisor, the franchisor may either withhold or provide consent. (If consent

The sale of business contract sets out the terms of the sale and ensures that both parties are protected in the transaction. The sale of business contract is usually prepared by the franchisee’s lawyers. However, the franchisor may require that their own lawyers prepare the contract or for particular special conditions to be included.

In a sale of an existing franchised business, the franchise agreement sets out your rights and obligations in managing the franchised business after settlement of the sale. It is more common for the franchisor to require a buyer to enter into a new franchise agreement rather than to transfer the current franchisee’s franchise agreement. Among other things, your franchise agreement will set out the payments you need to make to the franchisor, how you need to fit out and occupy the premises and any mechanisms for resolving disputes. The Code sets out the process for how a franchisor must provide a new franchisee with a franchise agreement and other important documents including an information statement, the disclosure document and a copy of the Code. The franchisor must provide these documents at least 14 days before you sign the franchise agreement or make any non-refundable payments. This disclosure period should be factored into any proposed settlement date. Franchise agreements will often require you to get a lawyer to sign a legal advice certificate. A franchise lawyer can also advise you on your rights and obligations as well as request amendments.

As a buyer, it is important to engage a lawyer who specialises in the sale or purchase of franchised businesses. In particular, they will ensure that the contract covers terms which are specific to the sale of a franchised business. For example:

The Lease

• the contract should be subject to the franchisor providing consent and both the existing franchisee and the buyer meeting the franchisor’s conditions for consent (e.g. paying any fees or attending training);

With a franchised business, the buyer would either enter into a:

• settlement being conditional on you and the franchisor executing your new franchise agreement; and • the landlord of the premises providing consent for you to occupy the premises of the business.

If the existing franchised business operates out of a premises (e.g. a shopfront), then there will be an additional party involved in the sale — the landlord.

• licence to occupy with the franchisor (who is the tenant); or • deed of assignment to have the lease transferred from the current franchisee. It is common with a franchised business for the franchisor to be the tenant under the lease as it allows them to maintain some control over the premises. It can often be easier to obtain the use of a premises when there is a

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“Whether the lease is being assigned to you or you are entering into a licence to occupy, you should understand your rights and obligations under the lease.” “Getting the assistance of a franchise lawyer experienced in managing the entire process will provide you with peace of mind.”

licence to occupy instead of an assignment of the lease itself. Whether the lease is being assigned to you or you are entering into a licence to occupy, you should understand your rights and obligations under the lease. As the licence to occupy will require you to be bound by the terms of the lease itself, review both documents to ensure that you understand the terms. If the lease itself is being transferred, then you will need to enter into a deed of assignment with the landlord. If the lease is a retail lease, there are also additional obligations each party must meet depending on the state or territory within which the premises are located. The requirements for assigning a lease can be stringent and cumbersome. Getting the process underway early is advisable to avoid any delays closer to settlement.

Conclusion There are many moving parts to purchasing an existing franchised business. As the buyer, you

Bianca Reynolds | Lawyer | LegalVision

need to be confident that the sale of business agreement, the franchise agreement and any applicable lease contain terms and conditions that are reasonable and fair. Getting the assistance of a franchise lawyer experienced in managing the entire process will provide you with peace of mind in knowing that your interests are being looked after throughout the transaction. Helen Kay is a Practice Leader at LegalVision with extensive experience working within top tier firms in the UK and Western Australia. Bianca Reynolds is a lawyer, who works across LegalVision’s Sale of Business and Commercial teams. Both Helen and Bianca

24 Business Franchise Australia and New Zealand

advise commercial clients across many industry sectors in relation to commercial leasing, business sales, franchises and commercial contracts. LegalVision is a market disruptor in the commercial legal services industry. Their innovative business model and custom-built technology assist their lawyers to provide a faster, better quality and more cost-effective client experience. LegalVision is a leader in delivering legal services in Australia and has assisted more than 50,000 businesses. The firm was awarded NewLaw Firm of the Year at the 2017 Australian Law Awards. 1300 544 755 legalvision.com.au

Resources at your fingertips!

CURRENT TITLES INCLUDE: Business FRANCHISE Australia and New Zealand magazine The Magazine for Franchisees, Bi-monthly publication The Australian and New Zealand Business FRANCHISOR magazine The Magazine for Franchisors, Quarterly publication Australian and New Zealand Business FRANCHISE DIRECTORY Annual publication The FRANCHISE GUIDE Annual publication CGBâ&#x20AC;&#x2122;s website also provides an additional advertising and information format and complements our publications.

www.businessfranchiseaustralia.com.au Business Franchise Australia and New Zealand 25

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Don’t miss a million dollar pay day -

why you need an effective exit strategy

Preparing yourself and your business for exit or succession is no different whether you are a franchise or not, with one possible exception. You may need approval from the franchisor on acceptability of your potential acquirer, so it’s important to check your agreement for any conditions/restrictions so you can address them from the outset. Doing the right things today ensures a successful exit in the future. It doesn’t require a focus on the ‘end game’. It requires you to focus on now. It’s not about choosing between today and the future. Identify your value drivers (and value killers), instigate action plans and then ask yourself this question every 90 days: “Do I continue to grow, or do I want to sell?” However, a plan gets you nothing if you can’t execute. Exit planning is grounded in action. It is only through action that we can create the life we want and harvest the value of our businesses.

26 Business Franchise Australia and New Zealand

“Doing the right things today ensures a successful exit in the future. It doesn’t require a focus on the ‘end game’. It requires you to focus on now.” What can I do today to make my business more valuable? You-Proof Your Business It can be tempting to run your company as your own personal fiefdom but the sooner you get it running without you, the more irresistible it is likely to be. To be valuable to an acquirer, your business must be able to succeed and grow without you at the hub of all activities and your employees mere spokes that cannot operate independently of you.

Customer Satisfaction Most business owners know intuitively how satisfied their customers are, but as their companies grow, some owners lose touch with their customers. Being able to objectively measure the satisfaction level of your customers is essential to maintaining their loyalty.

Competitive Advantage Differentiation = unique and meaningful. Think about what differentiates your business from its competitors. If you´re not sure what your point of differentiation could be, focus on finding something that is both unique and meaningful to customers, and stake a claim to it.

Recurring Revenue One of the biggest factors in determining the value of your company is the extent to which an acquirer can see where your sales will come from in the future. If you´re in a business that starts from scratch each month, the value will be lower than if you can pinpoint the source of your future revenue. A recurring revenue stream acts like a powerful pair of binoculars for you to see months - even years - into the future, so creating an annuity stream is the best way to increase the value of your business.

Cash Flow The more cash an acquirer needs to inject into your company, the less they will pay for it. The inverse may also be true: the less cash your

“A recurring revenue stream acts like a powerful pair of binoculars for you to see months - even years - into the future.” Kerry Boulton | Certified Exit Planning Advisor & Founder The Exit Strategy Group

acquirer must put into the business, the higher the price they will likely pay. Your goal should be to create a business that accumulates cash as it grows. In addition to maximising your overall profitability, having money in the bank makes running your business much more enjoyable.

Growth Potential Acquirers typically pay the most for businesses with the potential to grow. What would have to change in your business for it to handle 10 times the number of customers?

Do I continue to grow, or do I want to sell?

Dependence on key supplier, customer or employee A business´s sellability requires the business to not be overly reliant on any one customer, employee or supplier. Suppliers: Spread your business around even if you lose some special pricing discounts. Neutrality is worth more than a few dollars in savings. Employees: If you´re too reliant on any one employee, you are at significant risk if that employee chooses to leave and at a disadvantage when it comes to negotiating his or her salary. To avoid this situation, nurture a pool of people you want to hire. Customers: If you´re too dependent on any one customer, your business will be highly unstable. Try to work your customer concentration down to a point where your largest customer represents no more than 15 per cent of your revenue. You´ll sleep better at night and have a more valuable company when it comes time to sell.

How does your business stack up on these key value drivers? There are many other elements to consider, including your personal readiness, but first and foremost is maximising the value of your business. Kerry Boulton is a Value-Acceleration specialist, Certified Value Builder, Certified Exit Planning Advisor and Founder of The Exit Strategy Group. Kerry works with entrepreneurs to build a valuable business and create a fulfilling, purposeful life after business. She is also author of Million Dollar Pay Day: How to Get Rich and Get Out…Creating the Perfect Exit Strategy and Life After Business. To find out how Kerry can accelerate the value of your business (and for a FREE copy of her book – just pay postage) visit: www.TheExitStrategyGroup.com.au

Business Franchise Australia and New Zealand 27

e x pert a dv i c e

How businesses can address low engagement levels in millennial employees “The cost of replacing a departed millennial employee is somewhere between $15,000 and $25,000, which doesn’t include the knowledge they take with them5.” Bill McMurray | Managing Director, Asia Pacific and Japan | Qualtrics

Millennials have come of age in a layoff culture, so their understanding of loyalty isn’t based on a sense of job security. They crave a clear career path, mentoring, training, and other learning opportunities. Defined as those aged in their 30s and below, millennials now make up an increasing percentage of the workforce. However, research suggests that businesses are struggling to find ways to engage their employees, with 59 per cent actively looking for their next employment opportunity1 and 50 per cent saying they would consider another job even if they weren’t looking to leave their current role2. To attract and retain millennials, business leaders must understand their stressors and motivators, and invest in building engagement with these employees. Building engagement starts with knowing what is likely to grab millennials’ interest and keep it. When millennials become leaders, their notion of loyalty becomes very different; 44 per cent of millennial leaders say they intend to stay at their same company for more than 15 years compared with just 29 per cent of nonmillennial leaders3. Leadership appears to be of vital importance to millennials. In the fifth annual global millennials survey by Deloitte, respondents stated a shortage in opportunities to grow their leadership ability is the primary reason they move to a new job4. Another recent global survey conducted by Qualtrics found that employees are seeking tailored training experiences and not a classic, fixed, broadspectrum approach.

28 Business Franchise Australia and New Zealand

“Millennials will soon make up the highest proportion of the workforce, so they’re key to helping businesses achieve their objectives and targets.”

Retaining talent is important for business continuity. For most businesses, the cost of replacing a departed millennial employee is somewhere between $15,000 and $25,000, which doesn’t include the knowledge they take with them5. The benefits of putting in some extra effort to understand and motivate millennial employees are therefore clear. Not only will they likely be more productive, but they’re also more likely to be loyal, which will save costs. The key to employee retention, regardless of what generation they come from, is to engage them. The trick is understanding how to develop that engagement. For millennials, it could be about providing strong leadership, including coaching and training, to help them develop skills that are meaningful to them and valuable to the organisation. Business leaders should also personalise training experiences to each employee, not their role within the organisation. This may include creating modulated training sessions delivered using micro-learning and mobile learning tools for short, sharp learnings. The first step towards increasing and improving engagement is to understand where engagement currently sits in the organisation. If employees are already relatively engaged,

it could be simple to add some workplace activities or training to take their engagement to the next level. However, if engagement is very low, businesses will need to prioritise which issues to address first so they can begin to improve those engagement levels. Some surveys show that as much as 55 per cent of the millennial workforce is not engaged at work, while a further 16 per cent are actively disengaged6. This presents a potentially significant issue that businesses must address urgently. The most direct way to find out how employees feel about their job and the company is to ask them. Annual employee surveys are uniquely valuable to identify drivers of engagement and recognise areas of low engagement. Pulse surveys can help to determine levels of engagement and sentiment across the organisation more regularly. Conducted on a monthly, bimonthly, or quarterly basis, pulse surveys are short and timely, and the results are easy to analyse. Business leaders can gain immediate feedback, consistently track levels of employee engagement, and identify trends and at-risk employee populations with low engagement and attribution. There are four key pieces of advice businesses

can follow to measure and act on levels of engagement in millennial employees:

1. Make it easy Open-ended questions and frictionless processes are crucial for companies to get the rich, detailed feedback they need. Companies should simplify the survey process and consider whether they’re using the most appropriate channel when asking for employee feedback. For example, millennial employees have grown up in a mobile world where text messages are vastly preferred over paper-based or even emailed surveys. Pop-up boxes via the company’s intranet may also be useful.

2. Lifecycle feedback Lifecycle feedback lets businesses measure and connect insights across their employee’s entire lifecycle, from recruitment to exit. By collecting ongoing feedback, organisations can recognise employee engagement trends across every lifecycle touchpoint. Pulse surveys that employees can complete in less than a minute using their mobile devices can work well because they’re minimally intrusive and can create a habit of feedback that results in more consistent insights.

Business Franchise Australia and New Zealand 29

e x pert a dv i c e

•

• n

3. Share and act Companies must let decision-makers access feedback in a timely fashion. By implementing feedback channels, business leaders can learn what employees like and dislike, leveraging this information to design and deliver experiences that their employees value which encourages loyalty. Employees are more likely to feel valued, heard, and understood when feedback is not only sought but, importantly, acted on. This also makes them more likely to respond honestly to surveys in the future, increasing the value of the feedback they provide.

4. Show the value of loyalty and hard work With career advancement a main motivation for many employees, including millennials, businesses looking for ways to attract and retain workers can do so by addressing these concerns. Whether it is the importance of loyalty, hard work, or other factors specific to the organisation, identifying and communicating the best ways to achieve their desired career path can be a strong way to cement the loyalties of millennials in the workforce. Millennials will soon make up the highest proportion of the workforce, so they’re key

to helping businesses achieve their objectives and targets. Millennials can provide a unique perspective and fresh ideas, so organisations must invest in keeping them engaged, challenged, and interested, while presenting opportunities to learn and grow where possible. Businesses that frequently and regularly measure the experiences of their employees can obtain a clearer picture of how to best work with not only millennials but all employees. References: (1) http://news.gallup.com/reports/191489/q12-meta-analysisreport-2016.aspx?g_source=ServiceLandingPage&g_ medium=copy&g_campaign=tabs (2) https://public.dhe.ibm.com/common/ssi/ecm/lo/en/ low14354usen/collaboration-and-talent-solutionsibm-collaboration-solutions-lo-white-paper-externallow14354usen-20170804.pdf (3) https://www.conference-board.org/publications/ publicationdetail.cfm?publicationid=7379&centerId=3 (4) https://www2.deloitte.com/content/dam/Deloitte/global/ Documents/About-Deloitte/gx-millenial-survey-2016-execsummary.pdf (5) http://articles.chicagotribune.com/2013-08-05/business/ ct-biz-0805-work-advice-huppke-20130805_1_millennialsworkplace-companies (6) http://www.gallup.com/businessjournal/191459/ millennials-job-hopping-generation.aspx

Bill McMurray is an international technology executive with over 30 years of experience in the Information, Communication and Technology (ICT) industry.

He has held senior executive management roles across Europe, Asia Pacific, Japan, and the United States. His career highlights include holding the posts of Managing Director (ANZ) at CA Technologies; Senior Vice President & General Manager (Asia Pacific & Japan) at IDS Scheer; Vice President Sales & Marketing (World-wide) at IONA Technologies; as well as senior roles at Parametric Technology, Seer Technologies and IBM.

• o s

• y

• c

Bill is currently the Managing Director (Asia Pacific & Japan) at Qualtrics, who provide the rapidly growing experience management platform. A key part of his responsibility is to establish and grow Qualtrics across this region. Qualtrics is a single system of record for all experience data, also called X-data™, allowing organisations to manage the four core experiences of business - customer, product, employee and brand experiences - on one platform. Over 8,500 enterprises worldwide, including more than 80 per cent of the Fortune 100 and 99 of the top 100 U.S. business schools, rely on Qualtrics. To learn more, and for a free account, please visit: www.qualtrics.com.

30 Business Franchise Australia and New Zealand

ART

WHY OUR FRANCHISEES LOVE BEING PART OF LA PORCHETTA 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.

WHY LA PORCHETTA? • A proven proﬁtable operation • A much loved and recognisable national brand • They’re part of our team of restaurant owners who love getting together and sharing ideas • We offer a ﬂat fee structure that allows you to build your business faster • We are the largest Italian restaurant chain in Australia and New Zealand

Opportunities now available!

Visit: www.laporchetta.com/franchising Email: franchising@laporchetta.com OR call (03) 9460 6700

Business Franchise Australia and New Zealand 31 ART-CGB- Full Page - 210 x 297.indd 1

7/12/2017 2:59:39 PM

Donâ&#x20AC;&#x2122;t miss an issue

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www.businessfranchiseaustralia.com.au 32 Business Franchise Australia and New Zealand

VOL 12 ISSUE 02 jan/feb 2018

retail franchising ! t u O t i k c e h C why retailers must embrace

customer feedback donâ&#x20AC;&#x2122;t buy a

build a business

job

The balance of power

Business Franchise Australia and New Zealand 33

Be the

LEADER OF YOUR OWN SUCCESS Welcome to a world of opportunity, brought to you by 7-Eleven, the brand that’s world famous. A 7-Eleven franchise is a partnership in success. When you buy a 7-Eleven franchise, you buy two things. Firstly, a brand name that’s recognised around the world, and secondly a business system that works, one that provides more support than most other franchise networks.

BENEFITS OF BEING A 7-ELEVEN FRANCHISEE Our stores are open 24/7, so we’re with you 24 hours a day, supporting you in every part of your operation. From setup, to training, to marketing, and even to book-keeping, we’ll help you turn your new business into a solid investment. We set up shop for you and give you

full training

We take payroll admin off your hands

and help with the book-keeping

We deal with suppliers to get you the

best products

We manage the fuel

Financials

Contact Details

An initial investment of between $400,000 and $1,000,000 + is what is required to become a 7-Eleven Franchisee, so it’s certainly a big decision to make.

Franchise Development Managers

The 7-Eleven franchised business model is one with a difference, because we tie our financial success to the success of our Franchisees. 7-Eleven shares in the profits, so it’s in our interest to ensure that we continually work with you to meet the needs of your customers to grow sales, and to grow profits. Our gross profit split is determined progressively, and there are other shared income stream profits, such as commissions.

We have brands you won’t ﬁnd anywhere

Brett Reading Queensland

E-Mail: bzr@7eleven.com.au Mobile: 0407 877 674 Peter O’Hara Victoria / Western Australia

E-Mail: pwo@7eleven.com.au Mobile: 0408 175 534 Shayne Boogaard New South Wales

E-Mail: szh@7eleven.com.au Mobile: 0418 136 156

else

We provide advertising and promotional

support

START YOUR SUCCESS STORY TODAY www.7elevenfranchise.com.au

34 Business Franchise Australia and New Zealand

FRANCHISING

Contents On the Cover 40 Feature Editorial: Retail Franchising

Check It Out!

44 Expert Advice: Why Retailers must embrace Customer Feedback

Vicky Katsabaris, Qualtrics

48 Profile: LuxaflexÂŽ Window Fashions 50 Expert Advice: The Balance of Power

Steve Wright, FTI Consulting

34 7-Eleven

36 Whatâ&#x20AC;&#x2122;s New! Feature news 43 Hairhouse Warehouse 46 Expert Advice: Protecting and Promoting an Unrivalled Business Model Bruce Billson, Franchise Council of Australia 53 Clark Rubber

54 Have Your Say: Rowan Hodge, Battery World

A regular of Business Franchise Magazine, our special supplement in franchising showcases a different industry each issue To share your specific expert industry advice or to feature your franchise in the next issue, please contact: Kathleen Lennox, Sales & Marketing Manager Phone: 03 9787 8077 Email: kathleen@cgbpublishing.com.au

Business Franchise Australia and New Zealand 35

what’snew! A TAXING TIME FOR RETAILERS The recent launch of e-commerce giant Amazon has brought the spotlight back on GST. Consumers shopping with global online retailers currently don’t have to pay GST on goods under $1,000, but from 1 July 2018, low value goods that cost $1,000 and under, supplied by overseas retailers to Australian consumers, will become taxable supplies. The changes to GST are in response to Amazon and other global e-commerce giants including eBay and Alibaba coming to Australia and part of a trend of taxes in response to the disruptive influence of online goods and services. It follows the ‘Netflix Tax’ which was passed in March 2017 and applies to all intangible goods such as software, as well as professional services and consulting. Sellers of low value goods into Australia should consider the impact of these rules on their businesses and current arrangements and Australian retailers should take appropriate steps to prepare including identifying supplies of low value goods to consumers.

BDO Australia have recently published a Tax

www.bdo.com.au/en-au/insights/tax/tax-

Industry Insight for the Retail Sector which

industry/green-light-for-gst-changes-levels-

can be downloaded at:

playing-field-for-retailers

An Inconvenient Truth How do shopping centre owners press for increases in rents of 4 or 5 per cent per annum when the increase in the $/sqm. sold through the Centres has been increasing in the range of only 0.5% – 1.65% per annum over the last few years? Using data provided by The Property Council, and originally sourced from the Shopping Centre owners, the logic for these increases is not substantiated says Peter Buckingham from Spectrum Analysis. Recently Luke Baylis of SumoSalad took an unusual negotiating position with the major shopping centre owners to place two of his property leasing companies into Administration, to change his negotiating position and highlight some facts about shopping centres. Luke’s position was to show how rentals kept rising at well above CPI rates and yet the shopping centres are not increasing sales and turnover accordingly, and in many cases he was talking of added competition in his direct field coming in, thereby reducing the potential sales. Over a 10-year period the CPI for Australia has moved from 87.7 (June 2007) to 110.7 (June 2017). This could be seen as a 10 year increase of 26.23% or 2.63% pa. This definitely forms a strong argument against high rental increases, and having them locked in by the policies of the Shopping Centre owners!

36 Business Franchise Australia and New Zealand

Spectrum Analysis have facts and data relating to most shopping centres in Australia - if you have to negotiate a new lease or a lease renewal, it would be prudent to check the details relating to the shopping centre concerned. For more information see www.spectrumanalysis.com.au.

SMALL BUSINESSES RUN BIG RISK offer unique, personalised customer service. If they don’t act now, there is some real risk small businesses will be left behind.” When there is such fierce competition continually entering the market, it is some concern small business owners aren’t prioritising investment in technology to meet customer demand. Only 52 per cent of small businesses have some form of website, with 24 per cent saying they have no intention of ever getting one. On a positive note, almost half of small businesses use social media marketing and a further 24 per cent plan to do so. 24 per cent are targeting increased online sales.

Small businesses are failing to embrace technology and many seem oblivious to larger and online businesses who threaten to take them out of business, according to American Express’ Economy of Shopping Small: Keeping it in the Community report. Only 38 per cent of small businesses feel under threat from large online businesses and

a similar number (37 per cent) are concerned about larger bricks and mortar rivals. This begs the question: are small businesses complacent to the potential impact that techsavvy large and online businesses pose? Katrina Konstas, American Express’ Vice President for Small Merchants, said: “Small businesses need to focus on what’s important for their customers in this new digital age, and

Konstas added, “Ensuring small businesses have a good website and social media profile means they not only protect their customers, but gain further reach and opportunities for referrals, so they thrive for generations to come.” The research also revealed that rising energy prices (55 per cent), and managing costs and overheads (53 per cent) are what’s weighing most heavily on the minds of small business owners this year. This differs from 2016 where attracting and retaining customers was the number one concern.

behind the headlines:

retail

Telstra Franchisee Buys Cosmetic Clinic Chain A listed operator of more than 100 Telstra stores has bought a chain of six cosmetic clinics as part of a bold diversification strategy to offset declining Telstra commissions, according to a media report. Shares in Vita, Telstra’s only master licensed dealer and operator of 107 mobile phone stores, have dropped 75 per cent during the last year, after the company revealed its commission payments from Telstra could be reduced due to increased competition and the rollout of the National Broadband Network. The company has bought beauty chain Clear Complexions, which provides botox injections and facial peels, among other services. Vita founder and chairwoman Maxine Horne said she mystery shopped several outlets before agreeing to the acquisition, and claims that the business is highly aligned to its mobile phone operations. “Everyone thinks that we’re a telco. We’re not, we’re a consultative retailer,” she said.

Vacuum retailer’s shares sink to 14 per cent of listing price Shares in vacuum retailer Godfrey’s have crashed to 39 cents, just 14% of their 2014 listing price of $2.75, as the company announces a profit downgrade, and the departure of managing director John Hardy, who has been the face of the business for decades. According to a media report, Godfreys has warned the market that its F2018 earnings will be up to $4 million lower than forecast, which it is blaming on the slower rate of converting company owned stores to franchises. In F2017, it converted 22 stores, but in F2018 it expects to convert only two or three stores. About half of the chain’s 220 stores are now franchised.

Business Franchise Australia and New Zealand 37

what’snew! What does the launch of Amazon mean to Australian retailers? Brian Walker, Principal and CEO of Retail Doctor Group says, “A great deal of debate, conjecture and for some, abject fantascism and equally many opinions are somewhat isolated from the opinion that ultimately matters most: That being the customer opinion. “Our insights division at Retail Doctor Group, supported by our partners at Lightspeed, asked these questions to Australian consumers on their perceptions of Amazon: What do our customers think about the launch? What is their reaction? “We found that awareness of the Amazon brand was high however, the results also uncovered the lack of knowledge around what the Amazon proposition really is. Thirty-eight per cent of Australians reported not to be aware of the launch of Amazon, surprisingly millennials were even less aware. “Dig a little further into the fuller Amazon model and we see even less Australian consumer awareness. Knowledge of Amazon Prime was equally unclear for consumers when asked to define it, with 24 per cent thinking TV streaming, 15 per cent thinking Delivery subscription and a whopping 47 per cent admitting they weren’t sure. “Only 22 per cent of consumers think Amazon will change their shopping behaviour. For those unlikely to shop at Amazon, the barriers were around a physical element – 33 per cent like to see, touch and feel the product before buying and 28 per cent prefer the shopping experience in a store. “This confirms what we already firmly believe, that building a one channel retail ecosystem is key to customer loyalty, as we like to say -

“Interaction before transaction”. Retailers should be dialling up their instore experience and emotionalising their brand attributes to build their customer connection and loyalty. “Ninety-three per cent of the retail professionals said Amazon was a brand consumers trust, whereas consumers themselves rated this at 58 per cent. Building your customers trust is key to customer loyalty, ensure you know everything about your customer. Knowing how to connect to them on an emotional level will strengthen their loyalty to your offering and brand.”

Pop-up parcel store at Westfield Bondi Junction Leading parcel delivery service CouriersPlease (CP) opened a PopUp Stand in Westfield Bondi Junction during the Christmas rush to enable customers to conveniently courier recently purchased presents to loved ones around Australia and overseas to 220 countries. CP is one of Australia’s largest parcel delivery services, and last year delivered more than 1 million parcels across Australia in December alone. The PopUp Stand operated for two weeks between 4-17 December, helping shoppers save time by buying and sending gifts all at once. CEO of CP Mark McGinley, said: “Our PopUp Stand operates like a mini postal store, which allowed customers who purchased

Christmas gifts from Westfield Bondi Junction stores to bring their presents straight to the CP stand, place them in a CP satchel or small box and ship them anywhere domestically or to 220 countries around the world. Christmas is the busiest time of the year, and we wanted to offer customers competitive pricing and a convenient, hassle-free alternative to sending their presents.” The partnership with Scentre Group, owner and operator of Westfield in Australia and New Zealand, comes after a recent announcement by CP that customers could now redirect parcels to a parcel locker (POPStation) in their area if they will not be home to receive them. This service is available at 22 Westfield shopping centres across New

38 Business Franchise Australia and New Zealand

South Wales, Victoria and Queensland. Mark McGinley said: “Our PopUp Stand is a great opportunity to grow our relationship with Westfield, as we look to evolve the bricks-and-mortar shopping experience. Although eCommerce is increasing, Aussies are still predominately shopping in-store, and we are trying to enhance this experience, so customers can purchase and post all in one location. By implementing hassle-free delivery and returns solutions, we are offering more flexibility and convenience to Australian shoppers.”

has taken the step of rolling out the change to customers nationally, as well as to their New Zealand operations. The business has also backdated the change to the date the bill was passed through NSW Parliament, meaning any voucher purchased on or after 18 October 2017 will carry the full three-year expiry; a tripling of the current 12month industry standard. RedBalloon founder and small business advocate Naomi Simson is delighted about the change as it means incredible value for both customers and their 2000-plus small business partners. “We’re making this change because we think it offers great value to our customers. We’re doing it now because we didn’t want to serve hundreds of thousands of customers between now and the enactment, given we understand the inevitability of the law change.

RedBalloon leads the way with three-year expiry With new legislation on the horizon, the online experience retailer implemented tripled expiry on all vouchers across Australia and New Zealand before Christmas. Australia’s leading online experience retailer RedBalloon made a bold move in the countdown to Christmas, opting to implement

early sweeping changes to its expiry policy for all customers.

“We are protecting our suppliers by managing the financial burden of carrying customer credit for an additional 24 months, so that our customers have a longer time frame in which to use their vouchers.”

New NSW legislation - which is yet to specify a compliance date - will require businesses to honour a three-year expiry period on all gift vouchers (and similar) sold in the state. The legislation limits the expiry extension to NSW customers only, however RedBalloon

The extended expiry will also apply to RedBalloon retail gift cards (found in major retailers like Woolworths, Coles, Myer and Target), where any customer who can show proof of purchase on or after October 18 2017 is able to access the full three years to redeem that value.

Australian Businesses Set to Save on Summer Power Bills An Australian invention is set to save businesses hundreds of thousands of dollars in energy bills with the touch of one button. Australian-owned Zen Ecosystems has announced the Australian launch of its Zen HQ energy management platform, a year after its successful roll out in the US, an early adopter of cutting-edge smart-energy technology. Multi-site businesses and franchisors struggling to contain energy consumption and costs will be the biggest beneficiaries, with the innovative Zen HQ system able to control heating, cooling and lighting usage across stores nationally through a central online portal. Zen HQ uses smart Zen thermostats installed across multiple store locations that can be controlled remotely through a central portal,

providing the ideal energy solution for retailers, franchisors, hoteliers and commercial property developers. Zen Ecosystems general manager Michael Joffe said the Zen HQ system, which recently received the backing of the Australian Government, provided a solution to one of businesses’ biggest expenses. “Our system puts an end to thermostat wars between individual store managers and staff jockeying with the thermostat setting throughout the day. Our centrally-controlled system allows for all stores to be heated or cooled at a nominated temperature, and regulated or switched off outside of business hours,” Mr Joffe said. “We know from our experiences in the US that this has the potential to save businesses hundreds of thousands of dollars. After just one month of using our thermostat system,

businesses were saving 25 to 35 per cent off their store power bill.” Mr Joffe said the thermostats could be easily retrofitted and were cheap to install. The Zen HQ was one of the handful of projects to be awarded a multi-milliondollar Australian Renewable Energy Agency (ARENA) grant by the Australian Government last month. Businesses signed up to the system have the option to receive incentives to reduce power usage in peak demand times, easing the strain on the national power grid.

Business Franchise Australia and New Zealand 39

FE ATUR E : r e ta i l

Retail Franchising:

! t u O t i k c Che Retail is defined as the sale of goods for use and consumption by the purchaser. The retail transaction is therefore 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 With this in mind, as a retailer, or potential retailer, your product is the most important component in your business. Your product is vital. It should be top quality and something you believe in. However, it cannot stand on its own. If you donâ&#x20AC;&#x2122;t have a sound business plan, a strong marketing strategy and a firm grasp on your financial status â&#x20AC;&#x201C; the quality of your product becomes second tier. To succeed in retail, you must be a shrewd business person who considers all facets of the business.

40 Business Franchise Australia and New Zealand

FE ATUR E : r e ta i l

“Retailers are competing in a highly competitive arena, as they fight to win the dollars that are being spent.” An industry on the up According to recent Retail Trade figures by the Australian Bureau of Statistics, Australian retail turnover rose 0.5 per cent in October 2017, which followed a 0.1 per cent rise in September 2017. This follows similar rises from last year, and shows that retail is still a growth industry year-on-year, albeit it small and despite a continuing squeeze on the economy. Specific sectors experiencing small and consistent growth include food retailing (0.1 per cent), and cafes, restaurants and takeaway food services (0.1 per cent).

Dreaming big 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? Want to get your hands on some of this money being handed over by eager consumers? These are tempting ideas, but tread carefully. Over the years, global economies have affected nearly every industry. Australians are much more selective now with their money. 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. On top of this, commercial rental rates have skyrocketed, with large shopping conglomerates pushing for leasing rates based not on what the market can bear, but what they can scrape out of their tenants. So, if the cost of doing business has gone up, is it still worth the risk of entering the retail market? Of course it is, as long as you do your due diligence.

Prof. Lorelle Frazer, Director at Griffith University’s Asia-Pacific Centre for Franchising Excellence has 10 tips for completing your Due Diligence.

Tip #1:

Get advice from advisors experienced in franchising.

Tip #3: Speak to current and former franchisees.

Tip #4: Talk with current or potential

customers.

Tip #5: Verify the information you have

Engage the moral and emotional upport of your partner/spouse, family and friends.

Tip #8: Assess your own living costs. Tip #9: Do a business plan. Tip #10: Take your time.

Tip #2: Read everything.

Tip #7:

received.

Tip #6: Undertake web searches.

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? Although it is romantic to envision the sign over your bakery having your own name on it, this would also be symbolic of the situation to follow: you would be on your own. You would have to develop your own business plan, secure funding, choose a site, negotiate

Business Franchise Australia and New Zealand 41

FE ATUR E : r e ta i l 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? This is the beauty of franchising; a great majority of the work is already sorted. 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. Franchising is a way to minimise these risks for you.

A support network 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.

Online spending Along with the physical site you eventually choose, hopefully with the help of your

“According to the NAB Online Retail Sales Index, online retail spending in Australia currently stands at $23.28 billion to August 2017, which accounts for around 7.5 per cent of traditional retail spending.” franchisor’s site selection strategy, you also now have an online storefront to consider. According to the NAB Online Retail Sales Index, online retail spending in Australia currently stands at $23.28 billion to August 2017, which accounts for around 7.5 per cent of traditional retail spending. This figure is up 10.3 per cent from last year, and 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.

You as the driver 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.

42 Business Franchise Australia and New Zealand

KICK SOME GOALS FOR YOURSELF Contact our development team about FRANCHISING OPPORTUNITIES AVAILABLE in your area. Ongoing support & training provided.

ENQUIRE TODAY (03) 9234 2200 franchising@hairhousewarehouse.com.au www.hairhousefranchising.com.au

FE ATUR E : r e ta i l

e x pert adv i c e

Why retailers must embrace customer feedback to deliver

a superior customer experience “A significant proportion of shoppers in Australia and New Zealand believe their feedback never reaches someone who can make a difference.” Vicky Katsabaris | CX Subject Matter Expert & Principal Consultant Qualtrics

In this highly connected age, customers are quick to share their experiences with a broad network of people. There have been numerous recent examples where negative experiences gain a wide reach through social media platforms. People value the opinions of their peers and if they hear a brand has failed to provide a positive customer experience, they’re more likely to vote with their feet, taking their business elsewhere. While this can be a worry for businesses, the benefits of social media fall both ways. Customers can share their experiences, good and bad, but retailers can also listen to what their customers are saying. In theory, this should make it simple to deliver an experience that delights customers and has them lining up not only to buy from the company again but also to recommend it to their friends. Customer experience (CX) is therefore a key differentiator for brands in today’s competitive and globally connected marketplace. To deliver superior CX, offline retailers must collect, analyse, and act on real-time feedback from customers about their experiences and expectations, as well

“The benefits of social media fall both ways. Customers can share their experiences, good and bad, but retailers can also listen to what their customers are saying.”

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as their future intentions to recommend or purchase. However, according to new Qualtrics research, a significant proportion of shoppers in Australia and New Zealand believe their feedback never reaches someone who can make a difference. Qualtrics conducted a multinational survey of 1,700 in-store shoppers, including respondents from Australia and New Zealand, to understand customer services concerns across the retail industry. The insights from the research showed that customers believe their feedback is ignored 45 per cent of the time regardless of whether complaints are made via social media, surveys, or directly to staff. Despite this, shoppers still have high expectations for how quickly retailers should respond to questions and complaints, with 42 per cent of shoppers expecting a response to their social media post on the day of posting. The majority of customers expect a response within a few days (82 per cent). The research showed the impact of negative experiences on new customer acquisition, finding that for 59 per cent of customers their expectations about retailers are set through social media or referrals from family and friends. Further, 58 per cent of shoppers blame a retailer if one of their employees provides unfriendly or unhelpful service. That heavy reliance on previous experiences demonstrates that it’s critical for retailers to deliver a consistent, seamless experience every time and more importantly, act on the feedback they receive. Those that fail to do so are missing out on a huge opportunity to grow their business. Worse, they can contribute to a narrative in which their business is portrayed as the villain, perpetuating a perception that could snowball into further negativity for the retailer, affecting its ability to attract new customers. Most companies offer a platform for feedback, whether it’s a simple Facebook page or more formal feedback mechanisms. However, too many companies gather this feedback then fail to act on it. Retailers who do this may as well stop asking for feedback altogether. The damage that can be done by failing to act on feedback can be significant, and can be worse than never asking for feedback at all. They risk their customers developing a more intensely negative opinion of the brand. This is because people want to be heard. When a company says it’s listening and they act on customer feedback, they demonstrate that they care. Their customers are more likely to engage with that company if they believe their voice has been heard and

their suggestions considered. Even if the customer’s initial experience was negative, by demonstrating that the business is eager to rectify the situation, retailers can turn unhappy customers into loyal ones. In this instance, responding in the moment is extremely valuable. Retailers also need to know which feedback to respond to. Retailers who have sophisticated CX management platforms are able to understand what truly matters for customers, and what doesn’t. To be successful, retailers must gain an insight into overall customer behaviour, not just the opinions of individuals. They also need to learn how to identify and attract key demographics to their store. By implementing feedback channels, retailers can begin to build a more comprehensive picture of what customers like and dislike, and what drives certain behaviours. Responding to customer feedback at scale is also important because not every customer takes the time to provide feedback. By aggregating customer feedback and understanding what matters, especially for high value customers, you’re able to make changes crucial for business growth. By focusing on customer needs, retailers can identify the right areas for improvement as well as potential areas for business growth and further success. Doing this successfully means installing listening posts at the right moments to learn

about customer needs in real-time – not annually or in an ad-hoc way. Retailers need to constantly review the customer experience they’re delivering. Working with feedback in real time is an absolute requirement for retailers that want to close the customer experience gap. Doing this across all the key customer touchpoints and moments that matter and then providing their people with timely access to this feedback will deliver the greatest benefits. Vicky Katsabaris is a principal consultant and customer experience subject matter expert at Qualtrics. She provides expert guidance to organisations implementing customer experience programs. Prior to joining Qualtrics, Vicky spent 3 years as the General Manager of Customer Advocacy strategy at Telstra, leading the team responsible for developing Telstra’s corporate strategy for improving customer advocacy. Qualtrics has released its Customer Experience Management: 5 Competencies for CX Success recommended for any organisation that is looking to build or start a CX program. The competencies outlined in this e-book detail how organisations large and small can focus on customer needs, inject that view into the company, and use those customer insights to drive business results. www.qualtrics.com

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fran c h ise c o un c il o f australia

Protecting and promoting an unrivalled business model One of the many fantastic aspects of franchising is that it represents a diverse range of industries, from quick service restaurants to health and fitness businesses, petrol and convenience stores to administration and support services and everything in between.

The largest proportion of franchise brands belong to the retail (non-food) industry, with more than a quarter of franchises operating in this space, and a further 19 per cent of franchise brands falling into the food services and accommodation category.

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For the Franchise Council of Australia (FCA), that means an active involvement in consultations and discussions on issues that affect retailers as lessees (particularly in shopping centres) and as employers.

Fair Work Amendment (Protecting Vulnerable Workers) Act 2017 The issue of franchisees as employers has been a major legislative focus over the past couple of years, with the Fair Work Amendment (Protecting Vulnerable Workers) Act 2017 coming into force late in 2017. Speaking at the FCAâ&#x20AC;&#x2122;s National Franchise Convention 2017, Fair Work Ombudsman (FWO) Natalie James told more than 400 delegates that under the new laws franchisees

FE ATUR E : r e ta i l “Franchising drives economic and entrepreneurial success in a way that no other model has, and no other model can.” Bruce Billson | Executive Chair Franchise Council of Australia

retain the primary responsibility for complying with their workplace obligations, but franchisors have a clear role to play in ensuring compliance and preventing deliberate exploitation of workers within their networks. Resources are available on the FWO website at www.fairwork.gov.au to help both franchisees and franchisors understand their obligations and responsibilities under these new laws, and the FCA is continuing to work with the FWO to ensure the franchise sector has access to further compliance resources.

Retail leasing and the Casual Mall Licensing Code of Practice (the Code) With such a large representation of franchise brands in the retail space, the Franchise Council of Australia is actively engaged in consultations and discussions on retail leasing, often in conjunction with other peak bodies that represent retailers in their membership. Any franchisee with a bricks and mortar store invests heavily in their retail space. It is therefore imperative that franchisees’ businesses are protected, particularly in shopping centres where there is a marked power imbalance between landlords and their retail tenants. In recent times, the FCA has worked in conjunction with our industry partners, the Australian Retailers Association (ARA) and the Pharmacy Guild of Australia (PGA), to engage with State Ministers responsible for Small Business, and the State Small Business Commissions around the issue of retail leasing regarding the review of state-based Retail Leasing legislation.

These bodies have also been involved in a review of the voluntary Casual Mall Licensing Code of Practice (the Code) applies to shopping centre owners and managers who agree to become signatories. It regulates the terms on which participating shopping centres will grant casual licences to temporary retailers such as ‘pop-up’ shops.

Excellence in Franchising Awards.

The Code was reviewed by the Australian Competition and Consumer Commission (ACCC) during 2017. In a joint submission as part of the review, the Australian Retailers Association (ARA), the FCA and the Pharmacy Guild of Australia (PGA) did not support re-authorisation of the Code (without amendment). Primarily these bodies held the view that the Code is currently not administered and governed well, particularly with casual mall leases increasing to drive additional tenancy income.

“Winning these Awards means a lot for both me and my team, but also our brand. It will definitely help us win business. People will trust us more and it will give us a lot of credibility,” Ryan said of his Awards success.

At the time of writing the ACCC was seeking submissions from the public in response to the draft determination before making a final determination on the reauthorisation of the Code until 31 December 2020.

2018 FCA Regional Excellence in Franchising Awards are now open Franchising drives economic and entrepreneurial success in a way that no other model has, and no other model can. And none of this would be possible without the endeavour and commitment of more than tens of thousands of franchisees across the nation. In 2017, the FCA recognised outstanding franchisees across a diverse range of sectors as our national winners of the MYOB FCA

Ryan Willsher of Finn Franchise Brokers, North Perth and Regional WA, came out on top in two categories, being named the 2017 Multi-Unit Franchisee of the Year and winner of the 2017 Franchisee Community Responsibility and Contribution Award.

In 2018, we are looking to unearth more franchisee success stories and provide these franchisees with the recognition and promotional opportunities that Ryan and his fellow Award winners had in 2017. We know that as small business owners, franchisees are focussed on their day-to-day operations and on how they can continue to reach sales goals. The opportunity to sit back and reflect on their achievements is all too rare. The FCA’s Regional Excellence in Franchising Awards provide the chance to better understand your company through an up-to-date business health check and judges’ feedback, and can provide direct marketing exposure you cannot afford to miss. If you’re a successful franchisee looking to take your business to even greater heights, success at the Regional Excellence in Franchising Awards could be just the catalyst you need. To find out more and to enter the Awards, visit www.franchise.org.au/awards2018 www.franchise.org.au

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pr o file : lu x afle x

Don’t buy a job, build a business!

Hunter Douglas’ flagship brand Luxaflex® Window Fashions has been established in Australia for over 60 years and is currently the market leader when it comes to innovative, technologically superior window coverings. Offering the most comprehensive collection for Australian homeowners with a vast choice of styles, colours, and patented operating systems, the brand offers a selection of indoor and outdoor products including Blinds, Shutters and Awnings. Numerous patented products such as Luxaflex® Duette® Architella® Shades set the brand apart while exclusive operating systems provide market-leading differentiation. The Luxaflex customer experience is personalised to the client offering solutions to their design, heat, light and privacy requirements in state of the art showrooms and in-home consultations. The window coverings are then manufactured to order and sent to the Luxaflex Alliance dealer licensee to provide the installation service. This service, as well as the quality and breadth of product range available, is what sets the brand apart from competitors.

On the High Street The Luxaflex Window Fashions brand has partnered with independent, local businesses across the country for over 60 years, driving the continued success of the brand. We do not just offer a range of products, we truly become your partner with ongoing training, networking opportunities and comprehensive marketing support. Initial investment is affordable with no inventory holding required. Key areas are now available nationwide and no previous window covering or interior decorating experience is required. The Alliance programs offered are not a franchise, the licence provides you access to

the brands, trademarks, marketing programs and a retail program designed for small to medium business to distribute the products in Australia. There are two options in the Luxaflex Alliance program. The Luxaflex Gallery program is the premium full-line retailer, with access to the entire range of products and business programs offered by Hunter Douglas while Luxaflex Showcase is a smaller program that still provides retailers with access to a comprehensive range of products within a smaller retail environment that suits generally smaller interior design stores.

Your Luxaflex Gallery Business The Luxaflex Gallery is specially designed to display full-size products in the latest fabrics and colours, allowing consumers to envision the product in their homes. The entire Gallery is set up for a superior customer experience, designed to inspire consumers to consider products that they may not have been aware of, leading to a satisfied customer and a higher sale value. Marketing support and communication tools that work on both a national and local level are provided and used to promote your business to existing customers and

48 Business Franchise Australia and New Zealand

personalise communications to potential customers across multiple platforms. The marketing focus is lead-generation with individualised websites available for all Galleries which contain comprehensive product information and inspirational information for consumers. You will benefit from leads received via the website’s Dealer Locator pages alongside the use of Google Adwords, Social Media marketing, eBrochures, sponsorships and much more. A dedicated training team offers in-person and online video training to support your product and installation knowledge and training is ongoing with support always close at hand. A national annual conference offers networking opportunities with likeminded business owners while a Gala Awards and Travel Incentive Program are designed to reward you for your business success. Luxaflex Window Fashion license opportunities are available now in selected parts of Australia. To find out more about joining this innovative and world leading brand contact Damon Gardner at: 02 9638 8000 damon.gardner@hunterdouglas.com.au www.luxaflex.com.au

Design and Innovation Leaders

Integrated Marketing

Patented Products

Build Yourself a Business With the market leaders by your your side, side, establishing establishing and and managing managing your your own ownWindow Window Coverings business Coverings business is is a a highly highly rewarding rewarding experience. experience. Having Having partnered partnered with with small small business business in in Australia Australia for for over over60 60years, years,we weunderstand understandthe thesupport supportbehind behindthe theproducts products are are just just as as vital vital for for business businesssuccess. success. The The Luxaflex Luxaflex Window Window Fashions Fashionsalliance allianceprograms programs provide comprehensive marketing, marketing, training, training, development, development,networking, networking,incentives, incentives,events provide comprehensive events and showroom to support our innovative high yield range product range. and showroom fitouts tofitouts support our innovative high yield product With opportunities available available in in numerous numerous prime prime positions, positions,the thetime timetotojoin joinour our highly With opportunities successful network of Luxaflex Window Fashions showrooms is now. Mark highly successful network of Luxaflex Window Fashions showrooms is Contact now. Futeran 02 9638 8000on or 02 mark.futeran@hunterdouglas.com.au to discover the Contact on Damon Gardner 9638 8000 or damon.gardner@hunterdouglas.com.au possibilities of the Luxaflex of Window Fashions alliance programs. to discover the possibilities the Luxaflex Window Fashions alliance programs.

Business Training & Support

Business Franchise Australia and New Zealand 49

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e x pert adv i c e

THE BALANCE OF POWER The Royal Commission into the banking sector is about to get underway – and its twists and turns may provide some pointers for small businesses, particularly those in franchised and licensed businesses. It may at first seem a conceptual stretch to make this link, but there are some interesting analogies in key themes likely to be explored in the Royal Commission this year and those which may unfold in franchising/licensing, especially those in the retail sector. An article in the Australian Financial

Review in December highlighted one of the key themes: the reversal of the onus of proof; and the cost of remedying what may well be someone else’s mistakes - or deliberate misdeeds. The article, by respected former Commonwealth Bank CEO David Murray, described the potentially very negative consequences of the bank Royal Commission, giving rise to proposals which prompted a move away from ‘caveat emptor’ to ‘caveat vendor’. Those who have watched the progress of the Fair Work Act amendments relating to employee payment obligations will no doubt be aware that this ‘drift from caveat emptor to caveat vendor’ is exactly what has happened in the franchising/licensing sector. Among other hair-raising aspects of the FWA amendments, entitled ‘Protecting Vulnerable Workers’, the onus of proof has

50 Business Franchise Australia and New Zealand

been reversed to mean that brand owners may be held responsible for misdeeds by their franchisees/licensees. In other words, if a franchisor knows that a franchisee has failed to pay an employee properly and fails to address the situation, then the franchisor may be held liable as well as the franchisee. In the banking context, the analogy is that if a bank knowingly sells a product or advice which turns out to work against the interest of the customer, who for instance goes broke, then the bank may be held accountable under law. It is not hard to see how this could frighten bank managers and shareholders. It is a big move to shift the onus of proof fall on to the bank to prove that it did all it could to sell the right product/service and that the ultimate financial failure was indeed the fault of the customer.

FE ATUR E : r e ta i l “The Code’s provisions covering initial and ongoing information disclosure and ‘good faith’ negotiation are aimed at ensuring parties enter agreements with their eyes wide open.” Steve Wright | Advisor | FTI Consulting

However, there is not a lot of love for banks in the community – including small business.

disclaimers, franchise agreement disclosure documents can be long and impenetrable for a potential franchisee.

As business commentator Jennifer Hewett said: “Given the perceived imbalance of power between a borrower and a bank, there’s certainly a community expectation that individuals will be treated fairly and their own interests treated as paramount.”

A constructive way the Code has been amended over the years has been a requirement for a franchisor to include a ‘plain English’ summary of the main risks associated with entering a franchise agreement.

This is a very good point – and has been a key theme underpinning franchise-specific regulation, since it emerged through the Franchising Code of Conduct 20 years ago.

A good franchise will have an easy-to-read informative document of this type, which actually gives sound advice on what to do before signing an agreement.

The Code’s provisions covering initial and ongoing information disclosure and ‘good faith’ negotiation are aimed at ensuring parties enter agreements with their eyes wide open and that there is no attempt to exploit the “perceived imbalance of power”.

Another very positive aspect of the way the Code works in practice is found in its unique and highly effective provisions mandating complaint handling including timely dispute resolution able to be completed at a fraction of the cost of a legal argument.

Unfortunately, as with bank contract

These are all positive measures which are

simply not available for business agreements in the non-franchised world. They have been introduced to provide protection to potential franchisees, just as the FWO amendments aim to provide protection of vulnerable workers. The question is at what cost, and who is to pay? This was the precise theme of my article in this magazine a little over a year ago: ‘Raising the bar for franchisor responsibility – but at what cost?” In the banking Royal Commission context, the question is posed as to what affect would the onus of proof reversal have on bank advice and lending practices. Would it cause them to withdraw from risk, resulting in a sharp cutback in lending? Perhaps there may be a jump in the price of lending, through higher fees and/or interest rates?

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“A constructive way the Code has been amended over the years has been a requirement for a franchisor to include a ‘plain English’ summary of the main risks associated with entering a franchise agreement.” Many entrepreneurs and potential small business owners already complain that it is often very difficult to convince a bank to take the risk and back a new business borrowing proposal. Many complain that interest rates are already marked up too much for small business risk compared to that applied to other segments of the economy. Again, franchising has an edge over the broader small business market. A potential franchisee has a much better prospect of getting lending approval if he or she is applying to join a successful franchise network. Some of the bigger, more established franchises have an ‘accreditation’ status with a lender or panel of lenders. This can help new franchisees get access to funds, usually with comfort they are doing so at competitive rates. But in the instance of a market wide credit crunch, everyone is affected. So, in the banking context, is the reversal of onus of truth something which would hurt banks and business? If Mr Murray is right, and it would have “profound” implications, then it is safe to assume that small business would be the first to feel the repercussions. In the franchising context, the ‘at what cost’ question is all too easily – and painfully -answered for 7-Eleven, the first network to be targeted by the Fair Work Ombudsman for franchisee employee underpayment. To its significant credit, 7-Eleven has paid out more than $150 million in franchisee underpayments; and trusts that the integrity of its position, diligent franchisee communication, bearing all responsibility and paying out all claims will carry it through. To its chagrin though, what 7-Eleven has learned is that not even the money it has spent and the improvements it has made can guarantee that opportunists within a franchising network will not try to rort the system. The brand has also spent millions to ensure it has the systems to properly execute a centrally-controlled franchisee employee payment system.

Most franchise networks can’t afford this kind of remedy, but for the bigger brands, a new standard of franchisee service delivery has been established – one which protects the brand owner. This is a very serious issue not just for franchisors, but for franchisees as well. Not every franchise network is able to absorb the shock and the cost of a situation like this, there is an impact on all elements of the network. Could the franchise community have dealt with things differently? There is a possible answer to that question. Dominos, Pizza Hut and Caltex are three of the other biggest names to be targeted by FWO Natalie James. Each has dealt with issues in different ways, but there is no missing the decisiveness of the Caltex headquarters. Perhaps seeing the pain of 7-Eleven, and wishing to avoid as much of it as possible, Caltex acted swiftly to purge the system. According to the most recent media report, it has axed as many as 49 franchisees (who owned more than 100 sites) following an audit of franchisee payment records. The reason it has been able to do this so decisively is that the specific regulatory code set up for petrol retailing – the Oil Code – gives brand owners much greater opportunity to terminate franchisees who break the rules. That is why 7-Eleven has conducted a campaign to have the Franchising Code changed. Imposing an accountability on franchisors and reversing the onus of proof is a serious double whammy. To then compound it by lack of availability of serious sanction is very hard to swallow

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for franchisors with long experience in the franchise sector. To avoid expulsion from the network, an offending franchisee need only redress the fault, according to the requirements of the Franchising Code of Conduct. This process can be repeated over and again, without penalty. A year ago, I flagged these issues - the willingness of some to feed the crocodile in the hope that it would leave eating them till last has meant that the political opportunity to have the issues debated publicly is probably past for the near future – certainly the term of this Parliament. And given that Labor moved the Fair Work Act amendments which resulted in the onus of proof reversal, if there is a change of Government at the next election, there is very little prospect of change in the next Parliamentary term. What will be the cost? It is hard to estimate, but it’s a good bet that it is going to continue to rise. Steve Wright is known for his depth of experience in corporate and investor relations, industry representation and financial market activity. A former CEO and company director, he has represented small and large international companies including five years as Executive Director of the Franchise Council of Australia. Steve Wright was Acting Chief Executive of the Retail Council, the voice of Australia’s top retailers until early 2017 and is now a Senior Director and Advisor at international firm FTI Consulting. 03 9448 2813 Steve.Wright@fticonsulting.com

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h av e yo ur say

Unique franchise agreement ices the cake for

20 years/100 store’s celebrations Long before the Australian Government passed its Fair Work Amendment in September 2017 requiring franchisors to examine their role in compliance activities, national niche battery retailer Battery World had already overhauled its 20-year-old agreement with surprising results.

In March, Battery World announced to franchisees at their annual national conference that the franchisor had taken a bold and unprecedented step in creating a new franchisee agreement with reduced royalties and lower fees to the franchisor. The move was so unprecedented; it was met with scepticism by some franchisees. In return for bonuses to the franchisees, Battery World sought to double down on the commitment to the 24- hour battery roadside assistance, unpopular with some franchisees.

Seven months down the track, the new agreement is now squared away and live as more and more franchisees sign the new agreement.

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It’s been a milestone year for the company: celebrating 20 years of operation and the opening of their 100th store last month. The company expects to close the year out opening a further five new stores across the country as they continue their march towards a goal of 182 stores nationally.

For General Manager Rowan Hodge, the new contract is renewed commitment to the franchisees and acknowledgement of tougher retail landscape of the future. “Any P&L has a third axis that people often overlook,” he said. “There is revenue, there are expenses, and there is time. One thing our long history of success has bred is an appreciation of this third axis. We want the franchise community to prosper – their

Rowan Hodge | General Manager | Battery World

success depends on it right now – but more than that, we want them to continue to succeed far into the future. “This third axis is all the more important in times of flux and challenge. Retailers are facing material changes to their competitive landscape and supply chain with the disruptor, Amazon launching their first domestic operations in Melbourne. Any reduction in cost pressure allows franchisees to better focus on fighting for the customer. Beyond just slashing fees, this new agreement specifically aligns around the customer, with dramatic discounts (from 6.7 per cent to 1 per cent royalty) on services that take the store to the customer.” 2016 Franchisee of the Year, and the company’s most successful store for 10 years in a row, Townsville’s Greg Leslie says signing the new franchise agreement was a no brainer. While happily operating under the existing agreement, Leslie says the winds of change of 20 years of operation, bringing with it increased store and franchisee numbers coupled with new operating and sales procedures meant the document needed updating. “There was a lot of dead wood in the existing document: bylaws that were distracting and inhibiting but had never been acted on,” Leslie said. “This is a cleaner document addressing retailing changes and challenges over the last two decades as well as including incentives to drive the brand both through recruitment and retention. The term on the oldest agreements was an initial term of five years with a further five year option: or since 2015, six by six. This new document allows you a straight 12 years with voluntary renewals anytime. Add to that if a franchisee sells their business, the buyer also gets a full term, so as a seller you would always bank maximum value. This not only means better business planning but also increased security to your business.”

Council, agrees crucial to ongoing brand success, along with franchisee wealth, is the company’s commitment to 24-hour battery roadside assistance: even with the mixed feelings of some franchisees: some who have been unable to connect the inconvenience of going out at night to increased sales. “It’s madness that we are seeking out national accounts, but we still have franchisees reluctant to do this part of the business: the new franchisee agreement addresses this. Without trivialising it: we are a franchise and just as you cannot have one McDonald’s store selling cheeseburgers and another not – we need to offer the same level of service across over 100 stores. Once you have rescued someone from the road late at night they are pretty much a customer for life.” Leslie is quick to agree: early in his business leaving a mate’s buck’s party to help out a stranded truckie landed him a $6 million contract. Yet still there was reluctance and the biggest stumbling block in getting all franchisees on-board with the new agreement continued to be ‘roadside’. With 20 years under her belt, working between the very successful Cairns and Darwin stores, Kerry Boyd says anyone joining the group has only to look at the top sales volume stores to see the secret really is roadside.

“It really is the icing on the cake and makes the big stores really big,” she said. “Even though it was part of the old agreement: – this new agreement makes it clear that a commitment to roadside is not optional if you want to be successful. That being said the deal has been sweetened with extra incentives like a reduction in royalties – so that should help with those franchisees who might find it confronting. Like anything new from a franchisor I have to admit I was a bit cynical about all the incentives being offered. People are naturally wary that a franchisor is in it to make money – but the exciting part of this new agreement is there is an understanding that if we make more money, they make more money.” The company has also re-branded its logo and trademark, ‘Batteryologists’ as a tip of the hat to the obsession with product expertise that has fueled growth since 1997. Hodge says it’s fitting that in looking to the future, with the uncertainties facing all modern retailers, Battery World’s ability to give customers what they want, where and when they want it will continue to stand them out from the crowd. “That means Roadside services, delivery, advanced 12-volt circuit solutions, and of course battery expertise. Not surprisingly, these were the principles upon which we were founded so are essential the agreement,” he said. “The other way the new franchise agreement aligns with the third axis is by recognising the value of tenure. A franchisee’s tenure defines a limit on their future cash flows. This new agreement does away with that by locking in voluntary optional agreement renewals at any time during their 12-year

“A more profitable franchisee is better able to properly reward their biggest assets – their team.”

While Leslie has been with the brand 12 years: Cairns’ franchisee Rob Bonser, Darwin’s Kerry Boyd and Perth’s Tom Spence have been with the company for the long haul – the full 20 years. Spence, President of the Franchise Advisory

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“The new contract is renewed commitment to the franchisees and acknowledgement of tougher retail landscape of the future.”

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h av e yo ur say

“Most of the reduction in fees will happen as a result of a major new incentive benefiting franchisees who carry out Battery World’s national 24-hour roadside service.”

franchisees who carry out Battery World’s national 24-hour roadside service. This is not negotiable: and it is a service that has been a common denominator among our most successful stores for 20 years. “In the context of new headwinds for Aussie retailers, services outside the four walls of a bricks and mortar shop have never been so important. Our franchisees are already obliged to do roadside. This new franchise agreement is all about reinforcing that with a big fat financial incentive, so that it further rewards franchisees, and carries us as one of our key points of difference for our next 20 years. “Another topic relevant to franchising is the protection of vulnerable workers. Increasing profits of franchisees will go a long way to addressing this issue. “Lowering a franchisee’s operating costs, in fees and royalties, is just one small way to lessen the financial pressures they may experience from time to time. And a more profitable franchisee is better able to properly reward their biggest assets – their team.” Battery World’s commitment to franchisee wealth along with the flow-on effect to protecting vulnerable workers has not gone unnoticed by the Australian Retailers Association.

franchise term, with an unchanged franchise territory guaranteed. “There is no more fundamentally important document than the franchise agreement and though it might coexist with other contracts, it is the contractual connection between the parties for a very long time. Understandably any change to such a central document is a really big deal for both the franchisee and the franchisor – and that can be quite disruptive. “We knew it had to be something special, something really ground-breaking, and so we’ve offered incentives the likes of which no other franchisor has done before. In doing so we knew it would be viewed with cynicism by some. But if you are promoting something that makes somebody more money and helps reinforce their business in the long run, the challenge is to get out there and educate them. “There are huge legal repercussions with any contract this long, so in all communications our franchisees have been advised to seek independent advice before signing.

This document is governed by laws and regulations made by the government. The most fundamental is the Franchise Code of Conduct (the Code). The law, including the Code, takes precedence over anything a franchisor ever does or tries to do, and that includes this contract. “This agreement includes lower fees to the franchisor and lower royalties to the franchisor which virtually guarantees every single franchisee would be financially better off as a net result of either or both of these new concessions. “If we will wind up earning less: why would a franchisor possibly want to reduce its fees and revenue base? The answer lies in a very simple franchising philosophy: remember who it is you work for. In the Battery World franchise network, like many elite franchising systems, we choose to take the view that we work for the franchisee, and our pinnacle goal is to help franchisees grow their wealth. “Most of the reduction in fees will happen as a result of a major new incentive benefiting

56 Business Franchise Australia and New Zealand

ARA Executive Director Russell Zimmerman said the changing retail landscape, including the imminent arrival of Amazon and other disruptors, heightened the need for retailers to stay focused on customers’ changing needs and wants like never before. “Increasingly this means being available when and where the time-poor modern customer calls,” Zimmerman said. “A 100store retailer like Battery World getting serious about taking their products and services to the streets 24-7 is a great example of being where the modern customer wants them to be. It’s also admirable to see this franchisor has formalised a strategy to lessen the overall cost pressures for their retailers.” Rowan Hodge is the General Manager of the 102 store Battery World franchise network. He is a council member of the Australian Retailers Association; cochair of the Industry Working Group for battery recycling for the Queensland Government; and a member of the Australian Battery Recycling Initiative (ABRI). He has undergraduate degrees in Accounting and Law. www.batteryworld.com.au

Next issue we feature

THE PRICE IS RIGHT! Franchises you can afford

1600+ franchise systems in Australia & New Zealand, where do you start? Business Franchise can help

on-sale

Friday 2nd March 2018 If you would like to showcase your franchise within this popular feature, contact Kathleen Lennox on 03 9787 8077 to discuss advertising opportunities available.

eR F x pert A N CHISE a dv PIC i c e KS

FEATURED Franchise

PIZZA FRESH CO. Pizza Fresh Co. is a company established to promote a new retail pizza concept, which reconstitutes an existing pizza franchise framework under a new young vibe. The new pizza model that Pizza Fresh Co. is promoting is combining a social lifestyle with eating behaviours focused on a new funky, hip and health conscious generation. Pizza Fresh Co, is a 90s-hip-hop inspired pizza venue and is reinventing the ‘pizza’ by giving consumers the power to tailor pizza to their specific tastes and dietary requirements — from traditional toppings to smoked beef brisket, poached eggs and even baby pork ribs. We understand that buying a business may be a daunting experience, so we have put together a team of experienced professionals that will support franchisees at every step to ensure they are always well informed in respect to all aspects of the business, including legal, design, construction, finance and operations. • Legal Services • Construction and Fit-out • Architectural Design Services • Technology Consultants • Insurance Services • Logistics Services Don’t have enough funds? We can organise it for you!

Small Business Accounting More than a franchise. We are a collegiate network of independent offices working under a common branding, using state of the art systems to grow their businesses and build a sustainable income. And a friendship network where we focus on working together, not in isolation, co-operating in the cloud. And not just focused on tax compliance – also providing advisory and management accounting services. If you are an Accountant or Bookkeeper, or have significant experience in these areas, and are seeking a pathway to Registered Tax Agent / BAS Agent status, then talk to us. About half our members are “dinkydies”, and half first generation Australians. Overseas trained members welcome. Each office has a unique territory, access to support and on-going training, access to software only available to RTA & BASAA firms. Operating since April 2010 we now have 27 offices, in Vic, NSW, Qld & WA. We are actively looking for more offices to make a difference. Our system works. Enter as an Apprentice (currently 7), become a Journeyman (currently 8), then a Master (currently 4), then attain RTA status (currently 9).

For further information, please do not hesitate to contact Nour Atalla our Managing Director at: franchise@pizzafreshco.com | 0410 384 714

FEATURED Franchise

Sweet Dreams and Goodnight Do you have an eye for detail and a creative flair? Do you want to be part of something special? Do you love making dreams come true? Join the team that introduced the glamour slumber party to Australia. Sweet Dreams and Goodnight is the industry leader in supplying this popular party choice for children in the 7+ age group. Our mission is to ensure our clients create memories that last a lifetime. Our reputation is built on high-quality products coupled with our ability to exceed market expectation in innovation and delivery. Our business continues to grow, with our services in high demand. And we’re looking for people with our passion and enthusiasm to join our team. Sweet Dreams and Goodnight is expanding their franchise opportunities throughout Australia and New Zealand. If you’ve got the desire to bring smiles to children’s faces, we’ve got the tools and training to make it happen. Let us, help you create a business that won’t feel like work when you’re having way too much fun bringing joy and happiness to so many others.

For more information:

For more information

Phone: 1300 843 354 / 03 9752 8729 Email: info@sbaaccounting.com.au Web: www.sbaaccounting.com.au

Phone: 0402 463 812 franchise@sweetdreamsandgoodnight.com.au www.sweetdreamsandgoodnight.com.au

58 Business Franchise Australia and New Zealand

MM_

Become Your Own

HEAD HONCHO Invest in a brand that offers the highest quality and freshest Baja-style Mexican. With guacamole, meat and salsas made in our restaurants fresh every morning, you can be part of something unique. JOIN THE FAMILIA

madmex.com.au/franchise

MM_Franchise_Press_AD_17.indd 1

28/11/17 12:27 pm

sna ps h ot: ella Bach é

Pippa Hallas, CEO of Ella Baché

5 minutes with Pippa

Mandy Kaur bought Ella Baché Doncaster two years ago, after working as an Accountant for over 10 years. Business Franchise caught up with her to ask how running an Ella Baché franchise has changed her life. What made you decide to change your career and move into franchising? Working as an accountant for big Australian companies like Coles, Origin and Pacific for more than 10 years, I decided to start my own business when my son was born. I just wanted to have that flexibility and balance that I didn’t think I would get in a job. So, two years ago, I bought my own Ella Baché franchise.

Office and was sent to me for approval. I really appreciated all the help that I got from Ella Baché, especially coming into a new industry with no prior experience. What type of training and ongoing support is provided? Ella Baché has a Field Trainer and a Business Manager in Victoria who visit every month to update the team on new products and services, as well as to train new team members. Has your work/life balance improved since buying the franchise? Buying a franchise has definitely improved my work/life balance. Especially since I have a child, it gives me the flexibility to decide my hours and days. What would you say to someone looking at joining the Ella Baché team? Ella Baché is the best in the industry and their support before and after you buy a franchise is excellent.

How did you find about Ella Baché and why did you choose their franchise system?

What stands out to you about franchising with Ella Baché?

I have been an Ella Baché client for years and the brand’s image and reputation are what attracted me to it. I wanted a business where I could see myself working. The beauty industry was perfect for me and Ella Baché is the best in the industry. It was a very easy decision to make.

The ongoing support and training provided by Ella Baché is amazing. It’s good to work with a brand that keeps up with the changes in the industry and at the same time maintains a reputation of providing best customer service and products to their clients.

What was the process like once you signed the franchise agreement?

If you would like to join Pippa and Mandy in this market-leading beauty franchise, contact James Brouillard on:

Everything from site selection, to fit out, to lists of suppliers for disposables and equipment was done and planned by Ella Baché Head

02 9432 5054 franchise@ellabache.com.au

60 Business Franchise Australia and New Zealand

Ella Baché are in their third generation of family ownership, how much does the history of the company influence its future development? Our culture is deeply influenced by our family values, and whilst the business is no longer small, we work hard at protecting and nurturing these values. We have always been committed to skin health, and to empowering women to feel confident in their own skin. Firstly through understanding their skin, then providing the right products and treatments for maximum results. We are dedicated to educating Australians about their skin, and providing opportunities for people to leverage our brand and assets to become successful business owners. As the first franchised beauty salon in Australia, how do Ella Baché continue to innovate in an ever-changing industry? We have always been a non-invasive brand. Whilst there are a lot of harmful fixes available in the industry, it’s our role to invent and launch new skin solutions, using new ingredients, techniques and technology to support our position of “providing maximum skin results without harm”. As a CEO and woman in business, why do you think being a business/franchise owner is appealing for women? Owning and running a business allows balance between different roles women have. Plus, it is very rewarding as it allows you to constantly learn and grow in a dynamic industry. Empowering women is a beautiful profession, and will provide a lot of satisfaction if you have a passion for beauty and skin care, and love people.

LOUNGES | PAVILIONS | BARS

FRANCHISE OPPORTUNITIES AVAILABLE

Concept

at Theobroma with extensive franchising,

Theobroma is a â&#x20AC;&#x153;Total Food and Beverage

marketing and retail experience. The store

Conceptâ&#x20AC;? offering consumers high quality

design and layout is appealing to a broad

chocolate and chocolate beverages with the

range of consumers. Our coffee blend is

added enhancement of a full food menu, with

exclusively done by our Roaster using the

some stores even offering a licensed venue.

100% Arabica 5 bean blend. All this enhances

From handcrafted artisan jewels using

the commercial viability and strength of the

real Belgian Coverture chocolate to hot and

business model. The brand has 4 concepts

cold chocolate beverages, desserts, melted

ranging from Lounges, Lounge Bars, Pavilions

chocolate dips and retail products, there

and Pavilion Bars.

is something for everyone and for every occasion. International Presence The first store was opened in Melbourne in December 2006. The brand now has stores in 3 countries; Australia, New Zealand and the U.K. Theobroma have opportunities currently available throughout these, or new regions. New sites now available in Australia and New Zealand. Enquire now! Experienced Team A professional team backs the franchise

What the Franchise Offers s )NNOVATIVE AND UNIQUE CONCEPT that includes all of lifeâ&#x20AC;&#x2122;s pleasures: Chocolate, Coffee, Food, Alcohol and Retail. s (IGHEST QUALITY CHOCOLATE PRODUCTS s 0ROFESSIONAL TEAM WITH A RANGE OF SKILLS TO assist you. s %ASY TO MANAGE AND FULL TRAINING provided. s 3ITE SELECTION lT OUT EXPERTISE AND property leasing experience.

Franchise Details For further information on franchise opportunities please contact Benjamin Fernandes our franchise and operations manager today +614 31 727 004 or email ben@theobroma.com.au or complete the online Franchise Enquiry Form available at www.theobroma.com.au

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Funding your first

(and subsequent)

franchise purchase The franchise sector offers many appealing opportunities with a large variety of options available to potential buyers interested in business. The purchase of a franchise business is a major investment decision which can be both an exciting and stressful time for a potential franchisee. Funding a franchise business is a unique experience as both the franchisee and the financier needs to consider additional information. The fundamentals of funding a franchise business have not changed over the years however the financial management tools and information available from the internet and other sources have expanded. This makes it easier for prospective franchisees to find good opportunities and also enables franchisors to provide more relevant information to franchisees which will help find the necessary funding. In this article I will be discussing the various franchise businesses that exist and how franchisees can source funding for their first (and subsequent) franchise purchases.

KEY FRANCHISE MARKETS The most well-known business format for franchising is the retailer â&#x20AC;&#x201C; the retailer model in which the franchisor promotes products

62 Business Franchise Australia and New Zealand

)

e e

or services through franchisees who adopt the franchisor’s business model and set operating practices. In 2017 the key markets in which franchising exists include retail trade; accommodation and food services; administration and support services; personal services; education and training; construction; transport; financial and insurance services; healthcare; rental; hire and real estate services. Many of these growing franchise markets belong to the service business franchise space and often these businesses do not include a physical premises, physical stock or assets that can be relied upon by a financier for security purposes. These service based businesses include businesses such as a cleaning franchise business, a mowing franchise business or a pet grooming franchise business. These franchise operations often also cost significantly less to get into than a retail trade business such as an established fast food franchise chain or an established accommodation franchise chain. Because of the relatively low cost entry these franchise operations are generally funded differently, due to the lack of business assets that financiers can rely on. Businesses with business assets that can be relied upon can be funded in several ways by financiers and this can also vary depending if there is a formal accreditation arrangement with the financier where a percentage of the set-up costs can be funded against the business. Further detailed discussion about financing follows in the funding section.

CHOOSING A FINANCIER After identifying the franchise opportunity the next step is to determine ways to fund the purchase. It is therefore important to work with the franchisor, financial advisor, accountant and lawyer to find out what is achievable, what is realistic and to put together a comprehensive business plan to achieve the right funding available to you. A business plan will assist franchisees to understand most of their financial requirements such as purchase price/set-up costs, stock requirements, debtor levels, and ongoing costs (for example, legal fees, accounting fees, stamp duty, government charges, insurance prepayments, landlord bonds etc.). Franchisees should choose a bank lender who has expertise in the franchise sector and which provides a range of financial products and services that the franchise business will need. In all probability this will not just be one simple loan but will involve a combination of two or more of the following options:

“Multi-unit ownership can offer great opportunities... Allowing successful franchisees to open in more locations and greatly speed up system growth for the franchisor.” Labrina Tsekouras | Senior Business Development Manager VIC & TAS, Westpac

generally secured by the borrower’s residential property.

FUNDING OPTIONS Secured Funding This is used extensively, particularly where long-term funding is required or when funding is sought for service based businesses or a franchise operation that may not have a formal accreditation with a bank in place. It may require an owner’s contribution: for example, free equity in a property or the total funding can be secured against the property. Other forms of security or third party guarantees can also be considered. Secured lending would usually be the cheapest option and the part of the loan secured against property can often be done over a longer term, which can lower monthly repayments and ease cash flow pressures.

Business Term Loans Bank business term loans are repayable over a specified term and are therefore a well suited finance for the initial purchase, or the set-up of a business. This can include funding for the franchise fee, initial stock, fit-out and equipment costs. Care should be taken to match the term of the loan with the remaining term of property leases and franchise agreements to ensure that business debt is fully paid at the expiry of these agreements. Generally business term loans can be secured against equity in the borrower’s residential property or in some situations the borrower may be able to use the assets of the franchise as part of the security mix. This will depend on the arrangements between the bank and the franchisor and if the bank has accredited the franchise. In practice, if an accreditation is in place this means that a potential franchisee needs less of their own money to get into a franchise business as they can secure part of the investment against the assets and future cash flow of the business.

Equipment Finance and Leasing Many franchise businesses require specialised equipment such as pizza ovens, coffee machines, cool rooms, display cabinets and vehicles. Equipment finance is normally managed using the equipment as security and over a term within the useful working life of the item being funded. Equipment finance has the advantage of lowering the equity/ investment required, as funding could be up to 80 - 100 per cent of value (if new). This is a facility for a specified term secured by equipment and the funding may be provided by a bank or finance company.

Landlord contribution If it is a franchise that needs a physical location, in some instances another possible source of funding could come via the landlord in the form of fit out contributions and set up costs.

Loans from family or friends Family and friends can become investors in your franchise operation if they have the willingness or means to invest. Even though your investor or financier may be your family and friends it is best to have formal documents prepared to ensure there are no problems down the track.

FUNDING A SUBSEQUENT FRANCHISE PURCHASE

Short term funding - Overdraft

Multi-unit ownership can offer great opportunities for both the franchisor and the franchisee. Allowing successful franchisees to open in more locations can greatly speed up system growth for the franchisor. It can also increase local market penetration, reduce recruitment and training costs and help retain worthy franchisees by offering them more opportunities and benefits.

This type of finance is suited to cover cash flow fluctuations. Overdrafts may be suitable for seasonal business and franchises with a high level of debtors or stock. This facility is

Some of the most successful franchisees are multi-unit owners. Successful franchisees manage to build up a strong balance sheet which allows them to take up new

Business Franchise Australia and New Zealand 63

e x pert a dv i c e

Be a part of the

“Match the term of the loan with the remaining term of property leases and franchise agreements to ensure that business debt is fully paid at the expiry of these agreements.” opportunities. They understand how to raise and use capital, and because they are already successful operators with strong business acumen and profitable franchises who can work strategically with the franchisor to get the best sites over time. They also have the ability and relationships in place to move quickly to seize opportunities if required. Having a base of trained staff, shared cost and, in many cases, another layer of management is critical. All of these factors also greatly contribute and assist with gaining funding for new projects and expansion.

PLANNING EXPANSION Few franchisees are in a position to start by opening multiple outlets, even if the franchisor would allow them to do so. If the ultimate goal is to become a multi-site operator, it is important to discuss your plans with the franchisor, your specialist franchise banker and your accountant. The first franchise can greatly assist in funding additional outlets down the line without having to come up with much (or any) additional equity. In a typical scenario, a franchisee may open a new outlet with a plan to add a second outlet/territory within 18 - 24 months and a third a year later. Setting up the funding structure in the right way from the outset can allow the franchisee to build enough equity in the first outlet to fund the second (providing the sales and profitability projections are met and the franchisor approves them as a multiple owner). The cycle to build enough equity typically gets shorter with each new profitable outlet added.

VALUATION AND EQUITY Part of your planning will require you to look at the valuation of existing outlets to determine the equity each might generate towards your future growth. This would normally be based on a multiple of EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation). One would need to understand the franchise system benchmarks for determining a value, which is why consulting a franchise-experienced accountant and banker is so important. It is important to understand that a business can sometimes be under or overvalued depending on where in the business cycle it finds itself, influencing

the equity calculation. Multiples don’t always take into account lease issues or the need for significant capital reinvestment in the business.

• The applicant’s personal tax returns for the last two years.

Multi-unit ownership is not for everyone. It requires more financial resources, more management expertise, and extra drive and commitment from franchisees to make it work. It also requires clear planning and the ability to manage the transition from a hands-on role to a leadership and management position. Failure to do so can result in subsequent outlets underperforming and ultimately lowering the average profit of each site. But for those who do make the transition, the rewards can be substantial.

• Tax portal printouts (1 Year) – for existing businesses.

Multi-unit ownership offers the opportunity to start with a realistic investment and build a sizeable, sustainable and diversified business which can create a major asset for the future.

INFORMATION REQUIRED FOR A FUNDING APPLICATION: Information generally required for a franchise loan application is as follows: • Copy of the proposed Franchise Agreement. • Detailed list of set up costs – for greenfield sites only. • The applicants Curriculum Vitae detailing their background, experience and qualifications. • A detailed Business Plan, which must include 12 month’s cash flow and profit and loss projections. • Copy of the proposed Lease Agreement. • An executed Business Loan Application – provided by the bank.

64 Business Franchise Australia and New Zealand

• The last two years tax return and ATO assessment – for existing business.

• A copy of the sale contract - for existing businesses. • The last 12 months bank loan and transaction account statements –for refinance applications. • Client contribution details and evidence of any savings. Westpac has supported the franchise sector in Australia for over 20 years. The growth of a specific franchise system is supported by providing streamlined processes for lending, as well as access to other lending transactional solutions. The bank also has a national network of franchise specialist business bankers who are able to deal with specific day to day needs of the franchise customer. Labrina Tsekouras is the Westpac Senior Business Development Manager for Victoria and Tasmania and specialises in the franchising sector. Contact Labrina at: 0418 246 903 ltsekouras@westpac.com.au www.westpac.com.au

The information contained in this article is intended as a guide only and is not intended as an exhaustive list of matters to be considered. Persons entering into franchise agreements should seek their own independent legal, accounting and other advice.

Be a part of the BEST EMERGING

FRANCHISOR OF THE YEAR

Find out more about our Franchise opportunities available at soulorigin.com.au Contact Phil Tucker on 0478 652 884

fo c us : SO U L O R I G I N

DO YOU HAVE SOUL? Delivering delicious, fresh and nutritious food with killer coffee at an affordable price has seen Soul Origin rise to the very top of the food chain. Offering freshly made, guilt-free salads and sandwiches, they’re changing the way Australians think about fast food. Experienced franchisee and franchisor, CEO Chris Mavris, lives and breathes food retailing. In 2013, he joined the threestore brand, and since then has overseen phenomenal growth. Along with his team, he recently celebrated opening 87 stores in just four years.

SOLID FOUNDATIONS While many businesses were closing amid the GFC in 2008, the precursor Soul Origin concept stores were opened and after three years of fine-tuning, the Soul Origin concept was unveiled in 2011. With a strong commitment to excellence and continuous improvement, the Soul Origin brand emerged, and has continued to grow ever since. Chris says, “Food has always been the core of many families. It brings people together; it builds relationships and keeps them together. It does more than just feed our stomachs. Food and family is fuel to our soul and our aim is that it becomes fuel to the soul of our customers.” The Soul Origin goal is to challenge people to re-think their attitude towards fast food. To this end, they offer a wide range of breakfast and lunch options; from wraps, sandwiches, soups, salads and paninis, to speciality

66 Business Franchise Australia and New Zealand

coffee, sweets and fruit salads - perfect for an afternoon treat.

ENTREPRENUERS WELCOMED The franchise industry doesn’t always support entrepreneurism, and some brands actively discourage it. But at Soul Origin, entrepreneurs and individuals with retail and sales experience are always encouraged to apply. “As an entrepreneur when I was a franchisee with another brand, I felt this challenged the brand to be better. Entrepreneurs use their initiative and offer innovation, plus constructive ideas. We actively encourage two-way communication - here at Soul Origin, we value the input of our franchisees,” Chris assures. “We have 87 stores presently, and within the network we have 19 multi-site owners and 21 single store owners. Bringing in entrepreneurs means they can grow, creating their own brand within a brand.”

Industry-wide, 73 per cent of franchisees would like to be multi-site franchisees, but within Soul Origin it’s 88 per cent, which is a true testament to the brand.

BUT WHAT MAKES SOUL ORIGIN DIFFERENT? Soul Origin has four points of difference that separate them from the pack: Atmosphere & Store Design: Walking up to a Soul Origin store and experiencing the atmosphere first hand, you can clearly see that the stores are different to your average fast food outlet. The brand aims to have an inviting and welcoming atmosphere, a business that has Soul. Teams - passionate about the food and business - welcome customers into the modern stores, designed to showcase the menu items while enticing the customer in with clean, friendly and alive culture. Name & Culture: The name says it and the business lives and breathes it - the brand is an expression of the soul of each origin the food represents. This culture is reflected throughout Soul Origin. “When we talk about brand culture and values – we talk about being family minded. Soul Origin are supportive and protective of everyone, which includes our families, our team, our partners, customers and suppliers. We’re in this together and nurture everybody within the business equally,” says Chris. “Three words really reflect who we are as a brand: Humble, Courteous and Reliable. We’re true to our word and treat each other with kindness.” Products: Aside from the distinctive flavours of the salads, sandwiches and wraps, Soul Origin’s emphasis is on freshness and uniqueness; delivering a complete healthy eating experience of the highest standard. Best Practice: Focusing on best practice means Soul Origin are committed to excellence - in the food prepared and served to the customers; excellence in the customer experience; excellence in the relationships built with customers, partners, suppliers and franchisees; and excellence in absolutely everything that they do.

PART OF THE FAMILY Acknowledging the future depends on the dedication, passion, commitment and cooperation of Franchise Partners. Soul Origin are looking for individuals with the ability to work within a fast-paced environment, where customer engagement is key. Although previous food and retail industry

experience is advantageous, it’s not essential – a commitment to devoting your time and attention to the business especially in the first 12 months is paramount. In return, you’ll receive the opportunity to build and grow a sustainable business within a system that is tried and tested. Solid induction, ongoing training systems, and continuous support is provided by the Support Centre staff, meaning you’re in business for yourself, but not by yourself. As a member of the Soul Origin family, you are never alone!

PLANS FOR 2018 Consolidating an exceptional 2017, Soul Origin were honoured at the Franchise Council of Australia’s MYOB FCA Excellence in Franchising Awards as 2017 Emerging Franchisor of the Year. Living by the corporate culture of humility, Chris says, “To receive that acknowledgement - from our peers and the franchise community - in such a competitive and large industry,

is truly humbling and a great reward for the hard work that the entire network has put in.” Planning to open over 100 stores by the end of 2018, Chris believes that the century is likely to be surpassed. Closing 2017 with 87 stores open, stores are opening at a rapid rate and sites have already been locked in for territories across Australia, including in Western Australia and the Northern Territory. Do you have great communication skills, a commitment to superb customer service, a willingness to adhere to guidelines, principles and operating policies, and procedures, plus a willingness to have fun? Soul Origin are actively looking for individuals with dedication, passion and commitment. For those with big goals and dreams, contact Head of Franchisee Recruitment Phill Tucker now on: 0478 652884 or 02 8565 5400 PhilT@sohq.com.au www.franchising.soulorigin.com.au

Business Franchise Australia and New Zealand 67

e x pert a dv i c e

FRANCHISING:

Know Your Rights Franchising can be a rewarding investment, providing you with an opportunity to make the most of an existing brand and image. However, it’s important that you go into franchising with your eyes open. If you decide to buy a franchise you need to know about your rights and protections under the Franchising Code of Conduct (“Code”). The Code regulates the conduct of franchising participants towards each other and is mandatory in Australia. Your rights under the Code include: • entitlement to key information about the franchise system which can be found in the franchisor’s disclosure document, that they must give to you; • a seven-day cooling-off period for new franchisees; • a requirement for ‘good faith behaviour’ by the franchisor (this obligation applies to you also); and • access to a dispute resolution mechanism. The ACCC’s role is to regulate the Code, investigate alleged breaches, and provide information and education to make the franchise experience work better for franchisees and franchisors.

“The franchisor must provide details of any payments that you would need to make to them or their associates during the franchise term.” Dr Michael Schaper | Deputy Chair Australian Competition & Consumer Commission (ACCC)

Understand the risks

Disclosure document

As with all businesses there are risks with franchising and success isn’t guaranteed for you or the franchisor. This is why it’s important that you do your due diligence to work out if franchising, and a particular opportunity, is right for you. You can assess the risks by following some simple steps:

Under the Code, franchisors are required to provide prospective franchisees with a disclosure document. The disclosure document contains valuable insights about the franchisor, its officers and the franchise system, which will help you to make an informed decision about the opportunity. Key information you’ll find in your disclosure document includes:

• find out what would happen if you, or the franchisor, became insolvent. • work out how much capital would be required to establish the franchise and keep you going if you have a slow start. • understand the consumer demand for the product or service. • ask what will happen at the end of the agreement, and whether you are able to renew, extend or in the event of a sale, transfer the agreement. • consider whether the franchise matches your personal attributes, skills, experience and lifestyle. • complete a pre-entry franchise education program to find out how franchising works. • research the franchise system.

68 Business Franchise Australia and New Zealand

• relevant business experience of each officer of the franchise; • certain legal proceedings against the franchisor, its directors or associates; • contact details of current and former franchisees; and • whether the franchise is for an exclusive territory. The franchisor must give you a disclosure document, a copy of the franchise agreement in its final form and a copy of the Code at least 14 days before you enter into the agreement or make any non-refundable payments. The disclosure document will also contain key financial information to help you work

out if a franchise system will be viable for you in the short and long term. When reviewing your disclosure document, it’s worth paying attention to: • Start-up costs – the franchisor must outline the range of costs associated with establishing the franchise (such as legal fees and equipment). If a cost can’t be easily worked out, the franchisor must identify the upper or lower limits of the cost. • Ongoing or foreseeable expenses – the franchisor must provide details of any payments that you would need to make to them or their associates during the franchise term. This would include costs such as royalties, marketing or advertising fees, uniforms and merchandise. The franchisor must also disclose payments you make to other people that are reasonably foreseeable by that franchisor or within its knowledge or control, such as staff wages and utilities. Again, upper and lower limits must be provided if a cost cannot easily be worked out.

“You should always check your franchise agreement and disclosure document carefully before entering a franchise to identify any costs you might face.”

• Statement of solvency – the franchisor must provide a signed statement confirming that the franchisor will be able to pay its debts. This statement must generally be supported by either financial reports for the last two years or an independent auditor’s report. If a new statement or report becomes available before the franchise agreement is signed, the franchisor must provide you with copies of them. • Previous insolvency – the franchisor must disclose if the franchisor, its directors or associates have been bankrupt or insolvent under administration in the last 10 years. If the franchisor was insolvent during the last two financial years, they must disclose when they were insolvent, and provide you with a statutory declaration and auditor’s report about the current solvency of the business. Penalties can apply to franchise systems that fail to supply this information. For example,

in 2017, the franchisor of the Pastacup franchise system was ordered to pay penalties of $100,000 because its disclosure document failed to disclose that its cofounder and former director had previously been the director of two Pastacup franchisor companies that became insolvent. • Supply arrangements and restrictions – the disclosure document must include any limitations on the suppliers from where you buy goods and services, or whether the franchisor has nominated specific suppliers you must use. If there are any restrictions on sourcing supplies or services this may need to be factored into the cost of the business. Tip: If you become a franchisee, you can request a copy of the franchisor’s latest disclosure document once every 12 months.

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Tip: If you become a franchisee, you can request a copy of the franchisor’s latest disclosure document once every 12 months.

Significant capital expenditure As a franchisee, sometimes you might be asked to spend money on things that you didn’t expect such as new equipment or stock, or upgrading your store. Under the Code, the franchisor can’t force you to make significant capital purchases unless you agree to it, or if: • it was in the disclosure document you were given before your entered (or renewed) your agreement; • the expenditure is system-wide and a majority of franchisees agreed to it; • it is needed to meet a legal requirement; or • the franchisor justifies in writing why it’s necessary (including the benefits and risks), and how much it’s likely to cost you. You should always check your franchise agreement and disclosure document carefully before entering a franchise to identify any costs you might face. It’s also a good idea to ask your franchisor whether there are likely to be any future initiatives (such as rebranding or upgrades) that could lead to additional costs.

Earnings information As part of your dealings with the franchisor or their representatives, they may make claims to you about how much you can earn, how much other franchisees earn or if it’s an existing franchise store, how much the previous franchisee earnt in the past. If the franchisor makes such claims to you, ask them to confirm it in writing. You should also get professional advice to check how feasible these claims are for you.

Get independent professional advice

• (if they’re a former franchisee) why did you leave the system?

A crucial step in undertaking your due diligence involves seeking independent professional advice from a lawyer, accountant and business advisor. These advisers will help you to thoroughly review all documentation provided to you. In particular, this advice will guide you with:

Buying a franchise is a significant financial and personal commitment. For further information about franchising, or for a copy of ACCC’s Franchise manual, visit www. accc.gov.au/business/franchising. To be kept up to date with latest franchise development, subscribe to the ACCC Franchising information network at https://www.accc. gov.au/media/subscriptions/franchisinginformation-network.

• understanding any guarantees you may be asked to provide; • considering any additional leasing or licensing agreements you may be required to enter in to; • reviewing the costs associated with the franchise; and • developing and testing a business plan, including projected income and expenses.

Speak to other franchisees When it comes to buying a franchise, the most valuable advice you receive will likely come from the people who were in your shoes. Speaking to current and former franchisees about their experiences will allow you to test what the franchisor has told you. Ask them some questions such as:

The information in this article is for guidance purposes only and does not constitute or substitute for legal advice. When considering a franchise opportunity, seek advice from a lawyer, accountant and business advisor with franchising expertise.

Dr Michael Schaper is the ACCC Deputy Chair. His special focus is on small business, franchising, industry associations and business liaison with the national competition and consumer protection regulator.

• are you happy with the earnings?

A previous president of the Small Enterprise Association of Australia & New Zealand, he has also served as Small Business Commissioner for the ACT, chairperson of the ACT Small & MicroBusiness Advisory Council and a director of the International Council for Small Business.

• would you buy this franchise again?

www.accc.gov.au/business/franchising

• what have your experiences been like with the franchisor? • what sorts of challenges have you experienced with running your business?

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PSC National Franchise Insurance Brokers Pty Ltd ABN: 62 151 774 668 is an authorised representative (ARLN 1256170) of Professional Services Corporation Pty Ltd ACN 119 835 611 (AFSL 305491)

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Creating a Dispute Resolution Plan for your Business Disputes of varying degrees will arise when buying, running and selling a franchise business, but the one thing that sets one business owner apart from another when it comes to customer service, the running of a business and the outworkings of being a franchise, is how they deal with disputes. Running a franchise business is no easy feat, and much of the time business owners can be so future focused on where they want to be, focused on their sales targets and personal business goals, and so task orientated in the day to day running, that they don’t plan ahead for what possible disputes may arise and what their plan will be when things don’t go to plan. Planning for when things might go wrong is an important step allowing you to be prepared for anything.

Disputes facing Franchisees! The most common disputes for franchisees are: • Franchise Agreement boundaries and rules; • Contractual issues in the buying and selling of the franchise; • HR/Staff disputes including pay, disputes

“Knowing what your response is before something arises, and knowing the plan, can allow you to get straight onto resolving the conflict and in good time.” Alison Shaw | Mediator | SHAW Mediation Australia

between team members and unfair dismissal cases; and • Customer service and complaints.

Dispute resolution is on the rise Culture and the dispute landscape are so different today compared to what it was 20 years ago. Previously, we would have prioritised a discussion with someone, these days, disputes escalate fast, and many times parties are threatened with litigation. When something did escalate, disputes had to go through the court system back then. Today though, there are alternative dispute resolution options available by fully qualified legal practitioners that can walk you through any disputes that arise, leaving court as the last resort. Key government bodies have now started to put Dispute Resolution policies, opportunities, and resources in place, to enable parties in a dispute to try to resolve their disputes out of court. Ombudsman offices also offer quite a lot of resource around how to resolve disputes effectively, should something arise. This growing global focus on dispute resolution shows just how important it is to be prepared for anything.

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Franchise Agreements set out the process for dispute resolution. What does yours say?

Dispute resolution plan for your Business Creating a Dispute Resolution plan for your business can give you the confidence to deal with disputes in a timely manner. Knowing what your response is before something arises, and knowing the plan, can allow you to get straight onto resolving the conflict and in good time. All disputes need to be assessed to determine how best it can be dealt with. Unresolved disputes costs money, can escalate to lawsuits, lost productivity, loss of morale with staff, and a damaged reputation. A dispute resolution plan can include a number of features, and the plan may vary slightly for different industries, but these are some I recommend:

1. IDENTIFICATION OF DISPUTE Disputes can arise out of nowhere, but it’s important to identify the issues surrounding the dispute even if it seems small. Things escalate quickly these days especially with the uprising of social media, so it’s important

“Disputes can arise out of nowhere, but it’s important to identify the issues surrounding the dispute even if it seems small.”

to identify, and kick your plan in as early as possible.

2. POLICIES AND PROCEDURES What procedures and policies need to be put into place in your business to ensure things can be resolved in a timely manner? What recording and reporting will you require to cover your franchise business? What documentation can you collate and provide in support? What reporting from time management and financial tools might you need to be up to date in order to create a log of data and fact? How do you back up your systems? What might be missing in your systems that you may need to incorporate for your own peace of mind?

3. SOCIAL MEDIA Disputes can turn into a massive media storm very quickly with social media out of control these days. You’ve probably seen some brands in recent times, copping flack for making a certain decision, or refusing to deal with a situation that’s unfolded. What will you do when disputes start to gain traction on social media? I would recommend: • Having someone on hand to help monitor the page. • Always respond, even if it’s ‘we are aware of X and Y, and we are currently doing what we can to resolve the situation’. • Remember that no response is actually a response.

• Franchise brands have a great opportunity to stand out by dealing with disputes the right way. • Remember everyone is entitled to an opinion, but giving them a brand/business statement will show that you are trying to resolve. • We don’t recommend unpublishing profiles or closing them down. This adds further fuel to the fire.

3. INSURANCE The amount of businesses who don’t have insurances to protect themselves is really alarming. It’s important each year to mark a day in your calendar to review insurances, make sure they are up to date, and make

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“Disputes can turn into a massive media storm very quickly with social media out of control these days.”

sure nothing needs to be changed. These days we need Cyber-insurance which is an insurance product used to protect businesses and individual users from internet-based risks, and more generally from risks relating to information technology infrastructure and activities. Are you covered?

4. PLAN TO RESOLVE You may want to consider the following: • Who will take charge of resolving any disputes? • How will they do this, and where? • Do you have a list of all the contact details of your advisers and support people? • Would you need any outside contacts to assist? • Are you obliged to contact anyone or let anyone know that there is a problem or a potential problem?

in place to ensure things can be dealt with can definitely help keep you grounded, there are times when it’s important to call in a professional mediator to help mediate the issues. We don’t want things to escalate so bad that you end up in long, drawn out court battles that are not only tiring, but possibly a battle that will result in you losing your franchise, or assets or ruining a reputation. My team work with all types of disputes requiring mediation, and we generally get amicable outcomes, without the costly need to go to court. So, what is best practice in dispute resolution? The Fair Work Ombudsman’s recommends pursuing dispute resolution outcomes that are: • quick - it’s important to sort things as quickly as possible; • fair - all parties need to be heard in any dispute that arises;

Make sure you are communicating with the right person. Save your time and effort until you are confident that you are dealing with the decision maker who has the authority to settle the dispute and insist on their personal presence. You run your franchise businesses in a ‘litigation prone world’. It’s never been so easy to be taken out of context, to be threatened with litigation. It’s actually become harder to even just run a business. One of the best things you can do is plan for disputes, because they will arise in varying capacities. A dispute resolution plan is a bottom drawer document, kept with all other important documents to your business like your Franchise Agreement. Being clear on your next steps, gives you the confidence to calmly resolve whatever comes your way. Avoid panic and remain in control.

• Do you need to set aside time or day to resolve it? Or set some meeting times to get things moving?

• handled sensitively - the way you handle a dispute will say a lot about your brand. Be open and honest, but professional in all your dealings; and

5. IF THE DISPUTE ESCALATES, WHAT’S NEXT?

• transparent - all parties need to know the process. The above dispute resolution plan, allows the entire process to be clear for everyone.

Alison Shaw is a former lawyer and CEO of national mediation firm SHAW Dispute Resolution Australia. SHAW Mediation offers voluntary mediation opportunities to everyone for all types of disputes anywhere, anytime for fixed scaled fees. Alison and her national team of mediators are all nationally accredited and have a legal background.

To achieve that, my tip to franchisees is this:

www.shawdr.com.au

When you are in the middle of a massive dispute, it can be hard to think of what your next steps are and while having a good plan

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PR OFI L E : FR A N C H I S I N G E X P O

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at Franchising Expo One of the most challenging things for entrepreneurs planning to start or buy a business is deciding on a concept that best suits their skills, budget and lifestyle. That’s why the Franchising & Business Opportunities Expo is so popular year after year, it showcases a wide range of businesses under one roof, as well as offering expert advice and information.

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“Over the past 30 years the Franchising Expo has been the launching pad for thousands of small businesses, and has seen new ventures grow into household names,” says Exhibition Manager Fiona Stacey. “And when you have so many brands in one place, it’s easier to see which is the right fit for you.” The first Franchising Expo for 2018 runs from 17-18 March at the new ICC Sydney at Darling Harbour, and is shaping up to be the biggest franchising event Sydney has ever seen. “ICC Sydney is a stunning venue and we are thrilled to be opening there in March,” says Stacey. “Being at Darling Harbour means there are many options for public transport and parking, and the exhibition facilities are second to none.” Visitors to the show will not only benefit from meeting franchisors on the stands, but also from listening to experts and advisors speaking in the free seminar program. Plus, the Franchisee Success panel sessions presented by the Franchise Council of Australia are always popular, featuring successful franchisees and franchisors. “Hearing from franchisees in person gives a great insight into the challenges and opportunities of owning a franchise,” adds Stacey. “They are very frank about their experiences – what has worked for them, and what hasn’t!” The Sydney show will showcase a wide spectrum of business ideas, from established brands such as Mail Boxes Etc., Poolwerx and Jim’s Group, to up and coming business concepts like Cryo Australia, Experimac, Tubz Australia and Bug R Off Pest Busters. A contingent of exhibitors from Taiwan will be returning with a range of new business ideas, and there will also be plenty of legal, financial and business advisors. “It’s a new year and many people are considering their lifestyle and career choices,” reflects Fiona Stacey. “For many, it’s time to make a new start, and there is no better place to see so many business ideas all under one roof than the Franchising Expo.” Sydney’s show will be followed by Franchising Expos in Perth on 6 May, Brisbane 21-22 July and Melbourne 25-26 August. For more information go to www.franchisingexpo.com.au

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Checking your business pulse with a self-audit You’ve said goodbye to your old career and your consistent pay packet and taken the amazing and rewarding leap into small business ownership to purchase a franchise. Thrilling? Absolutely. Terrifying? Yes, well, that too. As you continue to work in and on your business, it can be challenging to know exactly where you stand and assess where this

business, that has so much riding on it (maybe your house), is really at. Assuming you’ve done your research prior to signing on the dotted line and been properly inducted into the franchise system, you’ll have a reasonable understanding of what you expect from your franchisor, as well as what is expected of you. How can you be sure that you are seeing this business for what it is, and doing everything that you should and could be doing to make it as successful as possible? Conducting a franchise self-audit on your business by taking a step back and looking objectively at the key compliance and performance areas is the first step.

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When most people think of the word ‘audit’, they think of the Australian Taxation Office going through your deductions to ensure everything is above board. A franchise selfaudit is similar. It is a check to ensure that every element of your business is financially and operationally sound, compliant and wellmanaged in everything from marketing to human resources. “When a franchisee buys a new business, it can be tempting to see the business where they think or hope it is rather than perhaps how it truly is performing,” says Andrew Harvey, Audit Specialist at FC Business Solutions. “A self-audit is a great option for franchisees to assess the health of their business, give them opportunity to fix things that need fixing or take advantage of areas of strength.” Andrew suggests franchisees should consider all facets of their business when conducting a self-audit to ensure the health and viability of their business. “Franchisees should put everything on the table – forewarned is forearmed.” The first area of focus should be on the franchisee’s business goals and financial performance. Andrew suggests that the basic business management tools are critical here – a clear business plan, a budget and forecast, a profit and loss statement, and a cash flow report. Using the cash balance of your bank account should not be relied upon as a measure of success or profitability.

“Key areas for franchisees to consider when auditing the franchise include ensuring there are frequent updates to systems and operational manuals to ensure processes are best practice, efficient and ahead of the pack in their industry.” It is then important to assess those items against specific benchmarks and financial performance indicators of: • your business in previous years; • within the franchise network; and • the industry and sector as a whole. Jessie Caudry, Franchise Support Systems Specialist at FC Business Solutions, warns that franchisees though shouldn’t just focus on the financial side of the business. “A full self-audit should go beyond just the financials to look at all areas of compliance and regulation,” says Jessie. “This is critical with regular updates across such requirements as Industrial Relations (IR) and Consumer Law frameworks and tools. Elements such as pay rates and consumer protections may change significantly and can expose the franchisee to risk if they are out-of-date or not best practice.” While it is important for franchisees to focus on the hot topics of IR and Consumer Law compliance, there are also a range of other regulatory responsibilities including superannuation, OHS, ASIC, and taxation obligations to ensure you are on top of, along with industry-specific regulatory requirements that are also critical to include in any auditing process. “If you are in hospitality, you may have various compliance needs in terms of food storage and handling, or if you are in retail, you may have policies for returns or refunds consistent with Consumer Affairs regulations,” says Jessie. While many policies and procedures within a franchise may be guided by compliance and regulation, Jessie suggests the self-audit is also an excellent time to review procedures important to your business but not necessarily issues of compliance. “The delegation of key tasks or internal communication processes are simple things that should be reviewed to ensure that the franchisee and the employees are using their time efficiently and effectively,” says Jessie. With the business’s financials and compliance angles checked, what else should franchisees look at to ensure their business is in the best shape it can be? Andrew suggests that franchisees should look beyond their own business to ‘audit’ the franchisor.

Top 5 franchisee self-audit areas:

“Franchisees pay good money for their business and should therefore expect service and support from the franchisor, as well as peace of mind and assurance that their franchisor is continuing to innovate and grow,” says Andrew.

• Compliance with relevant Modern Award and other Fair Work Act obligations

Key areas for franchisees to consider when auditing the franchise include ensuring there are frequent updates to systems and operational manuals to ensure processes are best practice, efficient and ahead of the pack in their industry.

• Business goals have been set, assessed and revised

Branding at a national level should also be consistent to ensure individual franchisees are well-placed to capitalise on national marketing initiatives and brand awareness. “Franchisors should also be providing support to their franchisees by way of at least annual audits of each site and support in analysing performance, benchmarking and KPIs,” says Andrew. “Productive and useful visits from the field team are a must to ensure that franchisees are gaining industry knowledge, business analysis, support and coaching.” For many franchisees, the idea of such audits can be overwhelming but there is support available by way of auditing tools and information from authorities such as the ATO, ASIC or Fair Work Australia. However, sometimes it is wise for a fresh set of eyes to review things, says Andrew.

• Alignment to the franchise brand and systems

• Staff are trained and onboard with the businesses systems • Financial performance is analysed via the figures, benchmarks and KPIs. FC Business Solutions is the only integrated consultancy focused exclusively on the franchise community. Our team of professionals has been providing specialised and expert services to franchises for many years. The FC Business Solutions team are actively involved members of the Franchise Council of Australia regularly attending events, participating in committees and assisting in raising the profile of franchising in Australia.

“Sometimes when franchisees are emotionally and financially invested in their business it can be hard to see exactly what is happening,” says Andrew. “An outsider can often quickly assess what is working or not working, what requires streamlining, minimisation or a new approach.”

FC Business Solutions is a business which has proudly been certified in accordance with the internationally recognised ISO 9001: 2008 management system which focuses our business on delivering a consistent level of quality to our clients defined by regularly reviewed processes and procedures.

“Regardless of where you are, an audit can put you back on the right track or simply provide you with assurance to make that next move.”

hello@fcbs.com.au (03) 9533 0028 www.fcbs.com.au

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Tougher policing for super guarantee puts repeat offenders on notice Due to a new regime of reporting and transparency, plus a package of approved and pending governmentinitiated reforms, businesses that don’t pay compulsory super guarantee (SG) employee contributions on time will be in the crosshairs of an Australian Tax Office (ATO) crackdown.

Under the current law, companies are in breach of their SG obligations if contributions remain unpaid 28 days after the quarter ends. However, due to a more sympathetic stance taken by the ATO in recent years, tolerance over non-compliance has, by default, progressively short-changed a growing number of employees in Australia. According to ATO analysis, employees missed out on around $2.85 billion of their super guarantee payments during the 2014/15 financial year alone, and a whopping $17 billion over the last eight years. As a result, it’s hardly surprising that the federal government wants the ATO to get tougher with the worst offenders, many of which include small- to medium-sized

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enterprises (SMEs). Recent statements by the revenue minister, Kelly O’Dwyer, confirm that a new era of tougher policing by the ATO towards employers who deliberately avoid paying their workers’ super entitlements is now in effect. Having closed a legal loophole used by some unscrupulous employers to shortchange employees making salary-sacrifice contributions to their super, the government is funding an ATO superannuation task force to crack down on employer non-compliance. In conjunction with this crackdown, the government’s recent package for reforms also includes a timetable for the move to a Single Touch Payroll, a new mandatory electronic payment system. Like it or not, all companies

with 20 or more employees will, as of 1 July 2018, be required to adopt the Single Touch Payroll system, while smaller firms have until 1 July 2019 to fall into line. While an electronic payment system will give the ATO much greater visibility into unpaid super, the Australian Institute of Superannuation Trustees (AIST) CEO, Eva Scheerlinck, doesn’t think reforms go far enough. Instead of being required to pay staff super quarterly, she says employers should be required to pay super at least monthly, in line with wages payments and with benefits paid clearly recorded on the employee’s payslip. It’s not uncommon for businesses to be a few days late paying their SG contributions, especially if cash flow is tight, and the ATO’s previously-benign stance has clearly encouraged this. However, serial offenders must be aware that the ATO is likely to come after them first. Unbeknownst to many companies, by the time the ATO knocks on their door asking questions, it most likely already has all the data needed to substantiate non-compliance with its SG obligations.

On top of the outstanding amount, directors may also have to pay interest and an additional percentage of SG contributions (to employees, not the ATO) as a penalty.

Improved data transparency aside, much of the ATO’s information into serial non-payers also comes from within, with employees and former employees reporting around 20,000 instances of non-payment annually.

Seek help early

While the ATO’s crackdown on late SG payments could accelerate the collapse of companies with liquidity issues, many directors still don’t have a good grasp of their requirements, which may not end along with the business. Admittedly, some safe harbour provisions have been set up to give directors a level of protection. But, given their exposure to personal liabilities, would-be directors of a company are recommended to firstly check for any unpaid or unreported PAYG withholding or SG liabilities. Even if one director within a franchise is solely responsible for the administration of SG payments, that doesn’t necessarily exonerate other directors from their responsibilities to ensure SG contributions are paid. On top of unpaid SG contributions, one of the changes being proposed is to add GST to the amounts directors can be personally liable for. Technically, directors are liable in equal measure to pay the outstanding SG amount between them. However, the outstanding SG amount could fall onto the shoulders of just one director, should the others have no capacity to pay.

Rather than being on the receiving end of the ATO’s harsher approach to serial SG late-payers, businesses needing more time to pay need to take a proactive approach. Given that the ATO has traditionally been willing to discuss options, reasonable attempts to set up a lump-sum payment plan could deliver a much better outcome than trying to fly under the radar. If the business is heading towards insolvency, directors must get advice about managing SG contributions and other outstanding debts as early as this becomes apparent. Ensuring the business is structured appropriately could mean implementing accounting software or appointing an external provider to manage the company’s payroll. From July 2014, Superstream became the compulsory electronic standard for processing super data and payments. If companies are still not sending corresponding data in an appropriate electronic format, they’re not compliant with Superstream. The ATO also offers a Small Business Superannuation Clearing House (SBSCH) service that’s free to SMEs with fewer than 19 staff and turnover under $2 million. Unlike Slipstream, this isn’t compulsory but, given it’s free and very useful, it’s hard to see why a company wouldn’t want to use it.

“Ensuring the business is structured appropriately could mean implementing accounting software or appointing an external provider to manage the company’s payroll.” Beware director penalties Company directors are personally liable for a penalty equal to the amounts the company has outstanding in PAYG withholding and super guarantee obligations. New directors have 30 days before becoming liable to director penalties equal to all of the company’s unpaid PAYG withholding liabilities, as well as all unpaid super guarantee liabilities from 1 April 2012. However, as new directors won’t be liable to director penalties for amounts due before their appointment if, within 30 days starting on the date of their appointment, the company does one of the following: pays their PAYG withholding and/or super guarantee debt in full; appoints an administrator under section 436A, 436B or 436C of the Corporations Act 2001; or the company begins to be wound up (within the meaning of the Corporations Act 2001). Even if a new director resigns within the 30-day period, they will still be liable for the unpaid PAYG withholding and super guarantee liabilities of the company that were due before their appointment. They will also be liable for any unpaid liabilities for reporting periods that started while they were a director, except if they resigned before the first withholding event in that period.1

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“On top of the outstanding amount, directors may also have to pay interest and an additional percentage of SG contributions (to employees, not the ATO) as a penalty.”

Reforms under consideration The mandatory Single Touch Payroll system is only six months away, (1 July 2018) for employers with 20-plus staff, (and another 12 months for companies with fewer than 20 employees). Consequently, Kate Carnell, Australian Small Business Enterprise Ombudsman, urges companies to ensure they have the appropriate software in place to comply. While the Single Touch Payroll system will streamline business reporting obligations, it doesn’t demand quicker payment. However, Kate Carnell has reminded employers that it will provide near real-time visibility by requiring them to: count the number of staff, including casuals; and improve payslip reporting by providing information to the ATO on the amount of tax paid and SG payments when paying staff. While Single Touch Payroll reforms received Royal Assent on Friday 16 September 2016, other recommended measures currently under consideration include granting the ATO power to seek court-order penalties where employers are caught repeatedly failing in their super obligations. There are also moves afoot to strengthen

“A new era of tougher policing by the ATO towards employers who deliberately avoid paying their workers’ super entitlements is now in effect.” Brad Eppingstall | Director, Business Advisory | RSM Australia

director penalty notices, and use of security bonds for high-risk employers, to ensure that unpaid super is better collected by the ATO and paid to employees’ super accounts. Businesses need to ensure they’re on the right side of these superannuation and PAYG changes. They should seek professional advice immediately to avoid the penalties associated with non-compliance. www.ato.gov.au

Joining RSM in 1997, Brad Eppingstall is a director of the business advisory division in Ballarat. Brad is often consulted by clients to provide specific and ongoing advice in relation to superannuation planning strategies; taxation advice on group restructures and

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taxation advice on specific transactions. Having grown into one of Australia’s leading professional services firms over the last ninety five years, RSM Australia is committed to enabling clients through a greater understanding of what matters most to their business. In addition to local knowledge provided by their advisers in 30 offices across Australia, RSM Australia draws on their international reach and scale to ensure clients stay at the forefront of the world’s best practices, technology and innovation within a rapidly changing global economy. (03) 5330 5800 brad.eppingstall@rsm.com.au www.rsm.global/australia

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The Home-Based Office is Here to Stay Franchising has come a long way in a short time – long gone is the notion that franchising is only about fast food. Similarly, long gone is the notion that a franchise location will always consist of a ’bricks and mortar’ structure.

individuals transitioning from the corporate world to that of self-employment and business ownership often see substantial benefits in a home-based environment. This can be especially true if an individual has spent several hours a day commuting to their place of employment.

The era of the home-based office has arrived and is surely here to stay.

Here are five things that every would-be home-based entrepreneur should consider and examine carefully before they launch a homebased business.

People are often drawn to a franchise because it offers a home-based environment –

Transitioning to a home-based office is, however, not just about the commute and perhaps a more relaxed life and work style. When considering a home-based approach there are some fundamentals that must be remembered.

84 Business Franchise Australia and New Zealand

1. Do I really need an ‘office’?

We think the answer is yes – you need a dedicated specific space that is your office. Working from the kitchen counter or the back of your garage is not a professional environment - you need a clearly defined area that is the office where you ‘go to’ work. It should, therefore, not be a dual purpose area that doubles up as an office for a certain period of the day. Not all ‘homes’ are conducive to an office environment.

2. Office equipment

Just because you are in a home environment does not mean that you do not need appropriate office equipment that will enable you to run your business

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e x pert a dv i c e

“It would be argued that one of the reasons why a home-based office is desirable is the fact that you can dress ‘down’ and not be overly concerned about your appearance.”

effectively and professionally. You must have the right tools to do the job and if that requires some expenditure, then that is all part of your investment.

3. Work when you feel like it?

Running a business from the home office is just that - it is running a business, and is not something that you can do as and when you feel like it. You should always have specific hours when you are ‘available’, and they should naturally be in the normal core business time range. Even though you are in a home-based environment, you’re still interacting with clients and customers who are running businesses from perhaps a more conventional environment.

4. Dress for success

This statement opens up the debate as to whether in a home-based environment you can conduct business in your PJ’s - we think the answer to this is, No. It would be argued that one of the reasons why a home-based office is desirable is the fact that you can dress ‘down’ and not be overly concerned about your appearance. That may well be the case, however you must establish some appropriate standards that work – it is generally accepted that an individual works better when they dress appropriately.

5. The right business

Not all businesses lend themselves to a home-based environment, and you need to examine any business or franchise carefully to ensure that it would fit into such a framework. Normally if you are looking at a franchise, then the franchisor will have already predetermined if a home-based approach is acceptable. If it is a nonfranchised business, then you certainly need to consider all of the aspects of the business and how they relate to your home environment before you take the plunge.

Running a home-based franchise certainly has many positive advantages, however there are still some ‘rules’ that one should adopt in order to make the home office a productive place. In trying to determine what is right and appropriate and acceptable, the easiest approach may be to just compare the homebased situation with the corporate office situation. Most people have experienced

86 Business Franchise Australia and New Zealand

life in the corporate office at some point in their career, and they clearly understand the standards that are expected. Translating those into a home-based office is an appropriate process in order to determine what is workable and acceptable. Before you take the step of establishing a home-based office, run down the checklist and make sure that you have appropriate space and equipment and, above all, the self-discipline to make it work. David Banfield is the 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/franchise

“Running a home-based franchise certainly has many positive advantages, however there are still some ‘rules’ that one should adopt in order to make the home office a productive place.” David Banfield | President | The Interface Financial Group

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h ot to pi c s

Behind the

headlines Modified Franchising Code released A modified version of the Franchising Code of Conduct, dated 1 March 2017, has been released to reflect new terminology used in the Corporations Act. The last material changes to the Code came into effect on 1 January 2015, and the 2017 update has been released in response to the passing of the Corporations and Other legislation Amendment (Insolvency Law Reform) Regulation 2016. The updated Code contains only minor amendments to reflect terms relating to a body corporate that is externally administered. Franchisors are advised to make a minor change to their disclosure documents in Item 4.2(c), and in their franchise agreements (where the agreement deals with a special

circumstances right to terminate) to use the new terminology. Franchisors should also give out this latest version of the Code.

Failure to disclose background results in $150k in fines The Federal Court has awarded fines of $100,000 against Western Australian-based food franchise Pastacup and $50,000 against its former director Stuart Bernstein for not disclosing Bernsteinâ&#x20AC;&#x2122;s involvement in two failed former franchisors of Pastacup. The fines resulted from proceedings instigated by the Australian Competition and Consumer Commission (ACCC), which sought declarations, injunctions, penalties, findings of fact, and costs against Pastacup and Bernstein, who co-founded Pastacup in 2008, and which was placed into administration in 2014.

88 Business Franchise Australia and New Zealand

This is the first time the ACCC has sought penalties for breaches of the Franchising Code of Conduct since the Code was overhauled to encompass penalties for breaching key provisions. The ACCC alleged that Bernsteinâ&#x20AC;&#x2122;s directorship and management of two previous Pastacup franchisor companies that became insolvent should have been disclosed by Pastacup to potential franchisees.

Union seeks termination of Subway and pizza agreements The Shop, Distributive and Allied Employees Association (SDA) has applied to terminate enterprise agreements with sandwich chain Subway, and legacy agreements relating to several pizza brands, according to the Fair Work Commission website.

The Subway enterprise agreements date back to 2004, and the pizza agreements relate to former brand Pizza Haven in 2005. Pizza Haven was acquired by Eagle Boys, which in turn was acquired last year by Pizza Hut.

Retail Food Group’s shares are sixth most shorted on ASX Multi-brand listed franchisor Retail Food Group (RFG) has asked its shareholders to stop lending their shares to short-sellers who are betting on a further collapse of the company’s share price after it has already declined 37 per cent since January, according to a media report. RFG is currently the sixth most shorted stock on the Australian Securities Exchange (ASX), with 12.4 per cent of its shares in a short position, meaning that investors are expecting the share value to decline further. RFG issued a $3.3 million profit downgrade in June amid concerns about the effect of new accounting standards that will require retail shop leases to be recognised as liabilities on future balance sheets.

Collins Foods burns Snag Stand Listed franchise operator Collins Foods has decided to close down its fledgling Snag Stand business as it concentrates on its growing portfolio of KFC stores and its relaunch of the Taco Bell brand in Australia, according to a media report. The gourmet sausage and burger brand was acquired by Collins Foods in 2013 as an early stage investment opportunity, however the brand failed to launch and has only three stores in Queensland and one in Canberra, which will now be closed at a cost of $1.2 million. Collins Foods also owns the diminishing chain of Sizzler restaurants, but recently acquired the country license for Taco Bell, whose parent company Yum! also owns KFC.

ASIC ends Harvey Norman investigation The Australian Securities and Investments Commission (ASIC) has ended its investigation into the accounts of listed electrical and furniture franchise Harvey Norman, according to a media report. The investigation commenced in March and was reported to cover the year ending June 30, 2016 following a failed shareholder vote at the company’s AGM to change the way financial performance of franchisees was reported, with more than $1 billion shown in the company accounts as loans to franchisees.

Franchise founder charged over $30m tax fraud The founder of RAMS Home Loans has pleaded not guilty to fraud offences allegedly as a result of avoiding more than $30 million in tax obligations, according to a media report. The charges against Sydney businessman John Kinghorn date back to 1997 when he claimed he did not control an unlisted company incorporated outside Australia. Additional charges relate to dishonestly influencing a commonwealth public official between 2004 and 2007 through his use of companies registered in the British tax haven of Jersey. Kinghorn floated the RAMS network ahead of the Global Financial Crisis, with the company’s share’s plunging to less than half their value within two months, costing investors millions before Westpac bought the business.

SumoSalad seeks $3m capital to fund new growth SumoSalad, which controversially threw down the gauntlet to shopping centre landlords last year by placing two of its leasing entities into administration, has announced a new strategic direction and a $3 million capital raising to fund its growth, according to a media report. The new strategy will see Sumo moving away from shopping centre food courts to expand into other locations including airports, transport hubs, universities and Caltex service stations. The company will also grow its premium format ‘Green Label’ stores, as well as upgrade its direct-to-consumer offerings through a partnership with Menulog to deliver to homes and workplaces. In June, Sumo put two of its leasing companies into administration to force shopping centre landlord Scentre to renegotiate terms. The company claimed the bold move, which affected the leases of up to 14 stores in Westfield centres, was in response to constantly rising rent costs while centres increase the number of competing food retailers by up to 300 per cent in their tenancy mixes without any corresponding growth in pedestrian traffic.

Le Wrap and Ali Baba food franchises merge Food chains Ali Baba Lebanese Cuisine and Le Wrap have merged their networks to form the Retail Systems Group, which will operate 63 stores across Australia. The merger is expected to capitalise on

Jason Gehrke | Director Franchise Advisory Centre

synergies between the two brands, improve support to franchisees and broaden the reach of both brands.

Supplier blamed for email data breach A former supplier to Domino’s in Australia has been blamed for sending personalised emails to Domino’s customers which asks to reconfirm their suburb details, according to a media report. The pizza chain insists no data breach has occurred and that customers do not need to change their passwords or user information, but that a former supplier who ceased working with the company in July was responsible for the unauthorised sending of the emails.

Coffee franchisee referred to AFP over enterprise agreement A franchisee of coffee chain Zarraffa’s has been referred to the Australian Federal Police by the Fair Work Commission after the commission found the franchisee had provided false information when applying for an enterprise bargaining agreement (EBA), according to a media report. The West Ipswich franchisee used consultancy Platinum Employee Relations to develop an EBA for their business which included statutory declarations that the staff had voted on alternative pay rates when no staff were actually employed at the time. The Fair Work Commission approved the EBA application based on the statutory declaration, however the franchisees sought to unwind it following concerns raised by Zarraffa’s head office. The initial inaccurate statutory declaration for the agreement and the witness statements of the parties will now be referred to the Australian Federal Police “for investigation as to whether a crime has been committed”, the full bench of the Commission said. www.franchiseadvice.com.au

Business Franchise Australia and New Zealand 89

pr of ess i ona l s er v i c es l i st i n gs

IP | partnership

MARSH & MAHER LAWYERS

fr an chise specialists

Level 6, 64 Marine Parade (Po Box 10857) Southport Qld 4215 P 07 5591 2522 F 07 5591 2511 Contact Peter Thelwell E pt@ippartnership.com.au www.ippartnership.com.au A specialist Franchising and Intellectual Property legal and consulting firm, providing comprehensive advice for Franchisors from conception through to recruitment of Franchisees and ongoing management of the franchise. Clients receive expert, cost-effective advice on a collaborative basis with the firm taking great pride in its long term relationships with Franchisors. Expert advice and assistance is also provided to Franchisees buying & selling businesses as well as in relation to disputes.

Lvl 2 100 Wellington Parade, East Melbourne VIC P 03 9604 9400 F 03 9419 7735 Contact Robert Toth E rxt@marshmaher.com.au www.marshmaher.com.au

robert toth - 30 YEARS OF FRANCHISE INDUSTRY KNOWLEDGE AND EXPERIENCE. ACTING FOR LOCAL AND INTERNATIONAL FRANCHISES. Members of: Franchise Council of Australia (FCA) International Franchise Lawyers Association (IFLA) Marsh & Maher Lawyers provide fixed fee services to franchise clients for most aspects of work. • 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 • Intellectual Property • Retail Licensing and Distribution.

Verimark Pty Ltd

Walker Wayland WA

62/23 Narabang Way, Belrose NSW 2085 Contact Michael Amler P 02 9450 0099 E michael@verimark.com.au www.verimark.com.au

Level 2, 129 Melville Parade, Como WA 6152 P 08 9364 9988 Contact John Dorazio E johnd@ww-wa.com.au www.ww-wa.com.au

Verimark is a company that offers comprehensive service in commercial property and retail tenant representation. Our services extend to:• Site Selection • Lease Negotiation • Lease Renewals • Lease Disposals • Retail Strategy and Management We also work with a network of professionals who can cater to all aspects of your business needs i.e. Shop Fitting, Designs, Legals etc. If you require any property assistance please don’t hesitate to contact Michael Amler directly on 0411 333 637 or email michael@verimark.com.au.

90 Business Franchise Australia and New Zealand

Walker Wayland WA is an independent firm of Perth based Chartered Accountants and Business Advisors who provides a friendly, efficient and professional service for both developing and established franchises. We can assist you with: • Fixed priced service packages - including all bookkeeping, tax and accounting needs • Due diligence services when you are thinking about buying - or selling • Growth strategies • Marketing fund audits • Business planning and structuring Walker Wayland has offices based in every Australian mainland State and in New Zealand.

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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

AIRCOAT AUSTRALIA 1 Griffith Ave Bentleigh East VIC Ph: 1800 247 262 Email: info@aircoataustralia.com.au Website: www.aircoataustralia.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

BEGIN BRIGHT Support Office, 20 / 8 Corporation Circuit, Tweed Heads South NSW 2486 Ph: 1300 234 462 Email: franchise@beginbright.com.au Website: www.beginbright.com.au

NATURE OF BUSINESS

OUTLETS

ASSOC MEMBER

INITIAL FEE

MIN INVEST

CONVENIENCE RETAIL & FUEL

670+

FCA, AACS

(site specific– part of Min. Investment)

Average of $775,000

RESURFACING OF KITCHENS & BATHROOMS

$35,000 $40,000

$35,000 - $40,000

ELECTRICAL TEST AND TAG

FCA

$35,000

$52,000 + GST + Vehicle

SCHOOL READINESS & PRIMARY TUTORING

Franchise Council of Australia

$48,000

$70,000 (includes Franchise Fee)

RETAIL, POOL & SPA SERVICE

FCA, SPASA

$60,000

$420,000 + GST

PREMIUM CAFÉ FRANCHISE

Franchise Council of Australia

$50,000 + GST Incl. Training

Dependent on Site conditions $300K - $500K

HYGIENE PRODUCTS & SERVICES

33 in AUS, 18 in NZ

Franchise Council of Australia

None

$10,000 - $300,000

BEAUTY AND COSMETIC MEDICINE

FCA

$27,500

$220,000

AUTHENTIC ITALIAN FAMILY FOOD FRANCHISE

Franchise Council of Australia

$50,000 + GST

$500,000 $700,000

COURIER SERVICE

800+

FCA & FANZ

From $25,000 + GST

$25,000 + GST

COURIER SERVICE

250+

FCA & FANZ

$10,000

BUSINESS COACHING & PROFESSIONAL DEVELOPMENT TRAINING

200 Worldwide

$89,950

CAFÉ, COFFEE AND QSR FRANCHISES

FCA

$25,000

$175,000

TILE & GROUT RESTORATION

FCA

$49,950 + GST & Vehicle

HAIR & BEAUTY – RETAIL & SERVICE

140

FCA

$66,000 + GST

$390,000 incl. stock, for Greenfield sites

MOBILE POOL SHOP & POOL SERVICE

FCA

$67,500

$67,500 + Vehicle

HAIRDRESSING

200 across Australia & NZ

FCA

$18,000 $35,000

$80,000 - $240,000

AUTHENTIC ITALIAN FAMILY FOOD FRANCHISE

FCA & FANZ

$300,000+

GROUP PERSONAL TRAINING

Franchise Council of Australia

$30,000

$100,000

CHILDREN’S SPORT & DEVELOPMENT

250 +

FCA

From $15,000

$30,000

WINDOW COVERINGS RETAIL SHOWROOM

BMAA

N/A

$90,000 - $120,000

MAD MEX FRESH MEXICAN GRILL

59 Australia, 9 New Zealand

FCA

$50,000 + GST

$375,000 $550,000 + GST

CLARK RUBBER FRANCHISING PTY LTD Administration Building, 254 Canterbury Road, Bayswater VIC 3153 Ph: 03 8727 9999 or 138090 Fax: 03 9729 3266 Email: dirk.heinert@clarkrubber.com.au Website: www.clarkrubber.com.au/franchise

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

ECOMIST Unit 4/28 Barcoo Street, Chatswood NSW 2067 Ph: 02 9417 2211 Email: info@ecomist.com.au Website: www.ecomist.com.au

ESSENTIAL BEAUTY Building 4/550 Churchill Road Kilburn SA 5084 Ph: 08 8359 6622 Email: paul@essentialbeauty.com.au Website: essentialbeauty.com.au | ebfranchise.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

FOCALPOINT COACHING 30 Walter Street, North Adelaide SA 5006 Ph: 08 8267 2144 Email: info@focalpointintl.com Website: www.focalpointcoaching.com

FRANCHISE RETAIL BRANDS 19b Guardhouse Road, Banyo QLD 4014 Ph: 07 3999 8950 Email: info@frb.com.au Website: www.frb.com.au

GROUTPRO AUSTRALIA Ph: 07 5515 0118 Email: franchise@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

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

JUST CUTS™ Level 1, 4-6 Kingsway, Cronulla NSW 2230 Ph: (AUS) 02 9527 5444 (NZ) 0800 100 114 (toll free) Email: bdm@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 Website: www.laporchetta.com

LISTEN TO YOUR BODY First Floor 19/21 Centreway, East Keilor VIC Ph: 03 9331 5673 Email: franchise@listentoyourbody.com.au Website: www.listentoyourbody.com.au

LITTLE KICKERS & LITTLE RUGBY AUSTRALIA 120 Erina St, Gosford, NSW 2250 Ph: 0423 312 550 Email: dkelland@littlekickers.com.au Website: www.littlekickers.com.au, www.littlerugby.com.au

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

MAD MEX FRESH MEXICAN GRILL Level 1/117 Clarence Street, Sydney NSW 2000 Ph: 02 8115 9550 Email: franchising@madmex.com.au Website: www.madmex.com.au/franchise

92 Business Franchise Australia and New Zealand

FRANCHISE

NATURE OF BUSINESS

MAGNETITE 36 Garema Circuit, Kingsgrove NSW 2208 Ph: 02 9565 4070 Fax: 02 9565 4080 Email: info@magnetite.com.au Website: www.magnetite.com.au

MAIL BOXES ETC (MBE) Suite 202, 54 Alexander Street, Crows Nest NSW 2065 Ph: 1800 556 245 Email: franchising@mbe.com.au Website: www.mbe.com.au

MF GROUP 12 Boronia Crescent Marcoola QLD 4564 Ph: 1800 840 403 Email: info@mattfiddes.com.au Web: www.mattfiddes.com.au www.mfstreetdance.com.au

MIDAS 76-92 Station Street, Nunawading VIC 3131 Ph: 03 8878 1122 Email: franchiseenquiries@midas.com.au

NANOSHIELD 2/5 Michellan Court, Bayswater VIC 3155 Ph: 03 9738 0070 Email: ray@nanoshield.com.au Website: www.nanoshield.com.au

NATIONAL DRONES 832 High Street, Kew East VIC 3102 Ph: 1300 SKY VIEW (1300 759 843) Fax: 1300 784 493 Email: skyview@nationaldrones.com.au Website: www.nationaldrones.com.au

NOVUS GLASS (Australia Head Office) 1/2 Jenner Street, Nundah QLD 4012 Ph: 07 3625 2400 Email: franchising@novusautoglass.com.au Website: www.novusautoglass.com.au

OPORTO Head Office: 12 Help Street, Chatswood NSW 2067 Ph: 02 8905 8400 Website: www.oporto.com.au/franchising

SANDWICH CHEFS Suite 1, Level 11, 636 St Kilda Rd, Melbourne VIC 3004 Ph: 03 9856 4400 Fax: 03 9856 4401 Email: chrisf@pnfm.com.au Website: www.sandwichchefs.com.au

SMALLPRINT AUST & NZ 4/2-4 Williams Grove, Bonbeach VIC 3196 Ph: 1800 762 557 Email: ian@smallp.com.au Website: www.smallprint.com

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

SOCCAJOEYS PO BOX 4119, Kogarah Bay NSW 2217 Ph: 1300 781 735 Fax: 02 9150 0837 Email: info@soccajoeys.com Website: www.soccajoeys.com.au

SOUL ORIGIN AUSTRALIA 1/8 Lillian Fowler Place, Marrickville NSW 2204 Ph: 02 8565 5400 Email: info@sohq.com.au Website: www.soulorigin.com.au

SPRAY PAVE AUSTRALIA GPO Box 501, Green Acres SA 5086 Ph: 1800 688 888 Fax: 08 8266 5360 Email: spraypave@senet.com.au Website: www.spraypave.com

SPUDBAR 147 Chapel Street Windsor VIC 3181 Ph: 03 9571 0600 Email: info@spudbar.com.au Website: www.spudbar.com.au

THE CASH BACK APP Level 5, 320 Adelaide Street, Brisbane QLD 4000 Ph: 07 3010 9755 Email: info@thecashbackapp.com Website: www.thecashbackapp.com

THE INTERFACE FINANCIAL GROUP IFG 50/50 Level 32, 8 Exhibition Street, Melbourne VIC 3000 Ph: 1300 957 900 Email: ifg@interfacefinancial.com Website: www.interfacefinancial.com.au/franchise

THEOBROMA LOUNGES, PAVILIONS, BARS 3A Kia Crt, Preston VIC 3072 Ph: 03 9480 1030 Fax: 03 9480 1035 Email: franchising@theobroma.com.au Website: www.Theobroma.com.au

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

TRENT DRIVING SCHOOL 201/32 Delhi Road North Ryde NSW 2113 Ph: 02 8748 4500 Email: office@ltrent.com.au Website: www.ltrent.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/franchises

WOK ME PO Box 6105, Woolloongabba QLD 4102 Ph: 0414 527 051 Email: ben@wokme.com.au Website: www.wokme.com.au

WINDOW INSULATION

OUTLETS

ASSOC MEMBER

6 franchises AWA, HIA, WFAANZ & 12 dealers

INITIAL FEE

MIN INVEST

$20,000 $50,000

$20,000

SERVICE PROVIDER, FREIGHT, PRINTING MAIL

1700+ (36 AUS)

$60,000

$150,000 - $200,000

MARTIAL ART & DANCE SCHOOLS

31 Martial Art 11 Dance School

$12,500 $32.500

$12,500 - $32,500 Single or multi site

AUTOMOTIVE MECHANICAL SERVICE & REPAIR WORKSHOP

88+

FCA, AAAA, ACRA

$25,000 franchise fee + set-up costs

$200,000+

ENERGY SAVING WINDOW COATINGS

POA

AERIAL PHOTOGRAPHY, VIDEOGRAPHY, SPOTTING & SURVEYING

16 (March 2017)

FCA, AFR, Australian Certified UAV Operators (ACUO)

$45,000 + GST

$80,000 - $99,000 + GST (incl. Franchise Fee)

WINDSCREEN REPAIR & REPLACEMENT SERVICES

Australian Auto Glass Association (AGA) & FCA

$25,000

$60,000

FLAME GRILLED PORTUGESE CHICKEN FRANCHISE

150+ nationally

FCA

$50,000

from $350K to $900K depending on site size

GOURMET SANDWICHES, DELI CARVERY, JUICE BAR, BARISTA

50+

$180,000 $390,000

SILVER FINGERPRINT KEEPSAKE JEWELLERY

$36,500 ex GST

$45,000

MOBILE TOOLS AND EQUIPMENT FRANCHISE

170+

FCA / FANZ

Start-up cost from $50,000

CHILDRENâ&#x20AC;&#x2122;S DEVELOPMENT PROGRAM

From $20,000

$25,000 - $35,000

THE FRESHEST FOOD + COFFEE EXCELLENCE

FCA MEMBER

$60,000 + GST

$270,000 - $370,000 + GST

SAFETY & DECORATING TO ALL INSIDE & OUTSIDE CONCRETE

$15,000 (Licence Only)

$75 P/W

HEALTHY FOOD RETAIL TAKEAWAY

$40,000

$250,000

CASH BACK ON GOODS & SERVICES

102

$10,000

$50,000

PROVIDES UNIQUE SPOT FACTORING PROGRAMME

66 worldwide

FCA, IFA, CFA, Irish FA

$34,500

$50,000+

FCA, BFA

$40,000

$200,000 $500,000

CHOCOLATE LOUNGES, 14 worldwide PAVILIONS, BARS

RETRO-FIT DOUBLE GLAZING

3 AUS, 40 NZ

AWA

$40,000

Varies depending if vehicle needed

LIGHT VEHICLE TRAINING, DRIVING INSTRUCTION

Australian Driver Trainer Association

Nil

$3500 for Cert. IV Driving Instruction training + car

FENCING & HOME MAINTENANCE

12 +

MBA, FCA

POA

ASIAN NOODLE & SUSHI BAR

$50,000

Varies Approx $250,000

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7-ELEVEN At 7-Eleven, we take a different approach to franchising. We take care of the things that are a hassle about being a small business owner, and provide you with support every step of the way. We’re looking for people with bundles of

AIRCOAT AUSTRALIA Shining Opportunity from a Leader in Resurfacing

RESURFACE

KITCHEN

BATHROOM

BATH

Freecall 1800 AIRCOAT - 1800 247 262

Resurfacing has been recognised as one of the most lucrative businesses in decades. An Aircoat Australia Franchise can offer the right person fantastic income potential, an ideal home based service, and an affordable all inclusive business package incorporating high profits with low overheads, the ability to set your hours for a more flexible schedule and begin your new career without the ‘new business’ startup risks. You’re the boss, making all the decisions for your business yet you are under an umbrella of total support

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.

BEGIN BRIGHT Looking for a business opportunity with high rewards both personally and financially? If you have a real passion for working with and helping people, a Begin Bright school readiness and primary tutoring franchise could be for you. Begin Bright has opened over 30 centres in the last 5 years and has rapid growth plans.

With the Australian tutoring industry worth $6 billion,

business franchise australia and new zealand AUSTRALIA AND NEW ZEALAND

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94 Business Franchise Australia and New Zealand

energy, love providing customers with great service, are great leaders and communicators and have an eye for detail. So if you think you’ve got what it takes, we’d love to hear from you. For more information: 03 9541 0711 www.franchise.7eleven.com.au

with Aircoat Australia’s experience and guidance. Choose your hours and whether you work solo or hire employees. Using our trusted name and exposure, having access to our continuing support and guidance, your new business can be anything you want it to be. Aircoat Australia has built a strong reputation in the resurfacing industry and prides itself on being an innovative company in multi facet resurfacing and restoration. We specialise in the renewal of worn and damaged fixtures and surfaces including bathtubs, tiles, porcelain, laminates, fibreglass, vitreous china, appliances, benchtops, floors and timber surfaces. Call 1800 AIRCOAT (1800 247 262)

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

it’s a great opportunity to join a fresh and positive company. With a low cost investment and our franchisees benefiting from our exceptional support and proven systems and programs, it’s a great time to find out more about owning your own Begin Bright centre and help children to become happy, smart and confident. franchise@beginbright.com.au 1300 234 462 www.beginbright.com.au/franchising

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

Clark rubber Clark Rubber is a well-known and iconic Australian business, and has been a part of the retailing landscape for 70 years. Clark Rubber commenced franchising in 1995 and since then has grown its store network to more than 60 locations nationwide. In 2006 Clark Rubber was awarded the prestigious ‘Franchisor of the Year’ honour by the Franchise Council of Australia, and today, Clark Rubber is Australia’s leading foam, rubber and pool retailer.

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

Crema Espresso

• A proven business with a simple operation;

Crema Espresso is a franchise that is continually evolving. Already well known for their food and premium coffee, Crema stores are beginning to make waves in the retail community with their store designs.

• Local support;

When recruiting new franchisees, Crema is always looking for community minded people. The business believes that this mind set and attitude brings a warmth and connection to customers that is invaluable. Crema Espresso provides a business with supervision and consulting readily available. This includes everything from full operation manuals, point of sale terminal, uniform package, store design & fit out together with ongoing research and development supported through marketing and advertising. Joining the Crema Espresso team gives you the opportunity to own your own business, but not just any business.

ECOMIST AUSTRALIA Established in 1994, Ecomist Australia is a leading provider of premium quality hygiene products and services, specialising in Odour Control and Insect Control. Our core product is an innovative programmable aerosol dispensing system that won an award for the Best New Product from The Aerosol Association of Australia and New Zealand. Our aerosol products are manufactured in New Zealand and we offer a natural insect killer and over 50 fragrance options with French perfume.

ESSENTIAL BEAUTY Amazon does not affect Essential Beauty! Our services cannot be bought online! Grow with us! 70+ salons Australia wide, 27+ years of franchising experience, superior training, online and direct business support and marketing. We offer Laser and IPL hair removal, waxing, injectables, fashion piercing, facials

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

• Flexible floor plans; • Regional advertising; • A four week training program; • Ongoing learning for franchisees and their staff; • Store development assistance; • Design support; • Lease negotiations • Staff guidance; and • Much, much more. Crema Espresso where coffee is the souvenir of the experience. Contact: antony@cremaespresso.com.au www.cremaespresso.com.au

Our ultimate aim is to enhance the environments of our customers through our high quality products and excellent after-sales service. Over the last 23 years we have developed a secure and proven franchising business model. Each Ecomist franchise has its own exclusive territory based on post codes and purchase price is generally 2x the net income of the existing business. If you are interested in finding out more, please contact Gary Vandoros on 02 9417 221, email gary.vandoros@ecomist.com.au or visit www.ecomist.com.au

and skincare all performed within a salon environment that is modern and unique in style. Suitable for families, men and women with or without beauty experience. Take control of your work life today! Contact Paul Gogia directly for any franchise enquiries on: T. 0404 088 946 E. paul@essentialbeauty.com.au W. ebfranchise.com.au

opportunity to be part of our winning national organisation. Extensive initial training and ongoing support is provided. New franchisees undergo 12 weeks of 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

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FASTWAY COURIERS AUSTRALIA

• 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

FASTWAY COURIERS New Zealand

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

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 • Revenue support packages*

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: • Revenue support packages* • Low start up costs • No weekend work

business franchise australia and new zealand AUSTRALIA AND NEW ZEALAND

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

FOCALPOINT As a global company with a local presence, FocalPoint has been going strong for 12 years. We offer exclusive franchises in Business Coaching and Professional Development Training. Our services are highly sought-after as our materials and methods have been developed by worldrenowned business expert Brian Tracy over 35 years of research. We guarantee results and have over 5 million satisfied graduates of our programs. FocalPoint is a brand you can trust.

franchise retail brands Franchise Retail Brands (FRB) is fast establishing itself as the home for growing franchise brands within the Café, Bakery/Dessert and QSR segments. Franchise Retail Brands first launched operations in 2016 and is the proud home of New York Slice Pizza, Hombre Mexican Cantina, 1582 Coffee, Crave Ice Creamery, The Dessert House and our casual dining brand, Sabatini’s. In line with our growth strategy, FRB has also

96 Business Franchise Australia and New Zealand

*Conditions apply

You can own your own business coaching & training franchise. As a certified FocalPoint professional business coach and trainer, your clients range from the solopreneur to multi-national companies. You receive full training, resources and support so you can confidently make a fast, profitable start and build a long-term, residual income. Our 200 coaches worldwide recommend this opportunity as a personally-fulfilling and financially-rewarding business offering a balanced lifestyle. Contact us today info@focalpointintl.com Tel: 08 8267 2144

taken options over several other brands in the cafe and QSR markets and will be unveiling these as we move towards an IPO in 2017. Our model has been designed specifically to allow us to leverage supply-chain operations to franchisees within the network. This is made possible through the purchase of a Brisbanebased 1200 tonne per-year coffee roasting facility and we will also have a specialised bakery which supplies a range of savoury baked goods and sweet treats.

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.

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: Delena Farmer Phone: 07 5515 0118 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.

JIM’S POOL CARE MOBILE POOL SHOPS Join our team and Australia’s largest franchise system to build a business that suits your goals and lifestyle. Owning a Jim’s mobile pool shop means you can earn money from multiple streams. You charge for your time and charge for the lucrative pool items such as chemicals, pool equipment and pool accessories. This means your income is not limited by how many hours you can work and gives you

JUST CUTS™ australia Join the largest, most successful hairdressing network in the Southern Hemisphere, servicing over 90,000 clients each week! 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 over half own more than one salon? Why? Because our proven systems, support and training allows your Stylists to easily run the business for you.

JUST CUTS™ new zealand Join the largest, most successful hairdressing network in the Southern Hemisphere, servicing over 90,000 clients each week! 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 over half own more than one salon? Why? Because our proven systems, support and training allows your Stylists to easily run the business for you.

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.

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 at fee with all training and ongoing support included. If you are ready for a change then you need to put us on your list. We have selected opportunities around Australia so give us a call and come for a ride along. For more information ph: 131546 or visit www.jimspoolcare.com.au

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 1800 334 498 Email: bdm@justcuts.com Website: justcuts.com/franchising LinkedIn: Just Cuts™ Franchising

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 0800 100 114 (toll free) Email: bdm@justcuts.com Website: justcuts.com/franchising LinkedIn: Just Cuts™ Franchising

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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 lovingly prepared food. La Porchetta is now looking to expand the

LISTEN TO YOUR BODY (LTYB) In fitness, one size doesn’t fit all. LTYB sessions are individually programmed to drive 90%+ retention rates across all studios and build a strong local fitness community. Established in 2004, LTYB has proven progressive systems, high level franchisee support and strong goals of member results and Franchisee Profitability. LTYB look for motivated people who have a passion to make a difference to member’s lives. To be successful in the fitness industry, you need to walk the talk and continue to grow as a business leader and fitness leader.

LITTLE KICKERS & LITTLE RUGBY AUSTRALIA Double brand opportunity! We offer fun, energetic, healthy, imagination based activities for kids aged 18m to 7 years. With over 50,000 children attending weekly, we pride ourselves on being the leader in preschool sport! Little Kickers & Little Rugby offers a business path for people whom are passionate about working for themselves and creating a FUN environment whilst achieving financial success through our Play Not Push ethos. Franchisees need not have a background in business as

LUXAFLEX® Window Fashions Join the Luxaflex Dealer Network There are over eight million households in Australia – think about how many window furnishings that amounts to!

AUSTRALIA AND NEW ZEALAND

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

LTYB currently have 11 Studios in Victoria and Queensland with expansion plans Australia Wide. We offer our franchise partners an exclusive territory, full marketing support, IT and Software support, Online Operations Manual access and training, Studio business coach, Franchisee Induction program, supplier discounts, professional development opportunities and everything required to open your studio. We are currently recruiting Franchise partners Australia wide. For further enquiries, feel free to contact: Ph: 03 9331 5673 Email ben@listentoyourbody.com.au Website: www.listentoyourbody.com.au

full training is provided. Being personable and a self-starter is essential. Members of the FCA, the peak body of the country’s franchising sector, since launching, Little Kickers has become the most established and fastest growing preschool program in Australia, replicating the success that the brand has enjoyed around the world. Seeking interest for Sydney & Surrounds, Melbourne and Surrounds, Canberra, Coffs Harbour, Port Macquarie, Northern Territory and Tasmania (Hobart & Launceston). For details on how to join our team contact Dan Kelland on: E: dkelland@littlekickers.com.au M: 0423 312 550

Hunter Douglas offers an unrivalled partnership to meet specific commercial needs, under our LUXAFLEX® Window Fashions Gallery and LUXAFLEX® Window Fashions Showcase Alliance programs. This includes marketing support, manufacture and production of all products and fabrics, as well as local on the ground sales support.

The LUXAFLEX® Window Fashions brand is one of the most widely known and respected window furnishing brands in Australia, having sold its products under the Hunter Douglas Group in Australia for over sixty years – and is currently recruiting entrepreneurs looking for a new venture!

No experience is required to enter the Programs as all training is provided, which focuses on enhancing the customer experience and increasing your profitability.

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.

98 Business Franchise Australia and New Zealand

For more information on our programs, contact National Sales & Operations Manager, Mark Futeran on 02 9638 8000 or mark.futeran@hunterdouglas.com.au.

Mad Mex Fresh Mexican Grill We are continuing our growth, and are actively seeking new franchise partners. Our menu is heavily influenced by fresh, Baja style Mexican food made with authentic ingredients. Our focus is on serving fresh quality food in a quick environment whilst still allowing customers to tailor meals to their personal tastes and dietary requirements.

• The passion to utilise your past business knowledge & skills to deliver an outstanding customer experience? • A background with QSR, sales or marketing ideal, but not essential. • Ability to lead, inspire and motivate staff! Become your own Head Honcho! We are seeking expansion Australia wide. www.madmex.com.au/franchise

• Do you have the drive to lead the way with fresh authentic Mexican flavour?

For more information contact us: franchising@madmex.com.au or 02 8115 9550.

MAGNETITE WINDOWS

solutions provide all the benefits of double glazing without the hassle of replacement windows. At Magnetite, we aim to exceed our customer’s expectation of comfort. We believe this starts with the first contact and continues through an assessment, installation and after sales service. Join the team that has:

Do you have a trade license or are you hands-on? Do you want to become your own boss? Your WINDOW of opportunity is now. As noise and energy efficiency are prominent issues plaguing home owners, now is the perfect time to become part of an expert team who solve these issues every day. Magnetite specialises in double glazing existing windows, as the core offering in a product range that includes seals, tint and other complementary window treatments. Our

MAIL BOXES ETC (MBE)

• 18+ years technical and practical experience • #1 place in a niche market, with a unique product range • Comprehensive, hands-on training, with ongoing business and technical support • Average franchisee tenure now over 15 years. To learn more, visit www.magnetite.com.au

with 36 of those here in Australia that offer these in-demand services all under the one roof.

With Australian SME’s employing over half of the working population together with the increase in numbers of home and internet based businesses, the need for basic business services like packing and freight services, printing, mailboxes and virtual office facilities are all in high demand.

Having these 3 in-demand services sets MBE apart from other franchises too. It means that owning a MBE is like owning 3 franchises in one; print, freight and mail boxes giving our franchisees 3 strong revenue streams.

Established in 1980 Mail Boxes ETC (MBE) is one of the world’s largest Business Service Franchise with more than 1,700 service centres worldwide

For more information please contact our franchise department on franchising@mbe.com.au or phone 1800 556 245.

MATT FIDDES MARTIAL ARTS

success is down to hard work, high values and simple principles – built on a commitment to provide the most professional instructor training possible. This is based on developing role models, respect, discipline, better school grades, confidence, self-defence, focus and maintaining a “can do” attitude.

Join entrepreneurs and instructors who are part of our concept in providing children and adults with answers to the questions which worry them most: how do we stop kids being bullied or tempted into drugs; how do we equip them, and ourselves, with the self-confidence, character and ability to succeed in a competitive world? Focusing both mind and body to develop life skills is why Matt Fiddes Martial Arts Schools became the largest Martial Arts franchise in the world. This

MIDAS Midas is a trusted household name with over 40 years of experience in the Australian market. Initially establishing itself as an exhaust and muffler specialist, we’ve become the auto service experts specialising in car service, brakes, suspension and, yes of course, exhausts. There are currently over 88 Midas Auto Service Expert centres across Australia and we have an ambitious plan to grow our network across

Our programmes help students lose weight; improving both their self-respect and physical abilities. They also learn self-defence in a fun, safe environment. Contact Samantha Weir 0428 515 107 Or Ryan Canavan 0419 316 000

Australia. We are always looking for new franchisees who have a passion for all things automotive. Midas franchisees are comprehensively supported in all areas of business, including workshop operation, national & local marketing, a fullyintegrated point-of-sale system and ongoing local field management expertise. (03) 8878 1122 franchiseenquiries@midas.com.au

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NANOSHIELD New & Exclusive in Australia Unique and exclusive to NanoShield Australia, Cosy 24/7 has finally reached Australia after strong international success in over 30 countries. Share in this opportunity as we couple a great product with an effective business system to provide a cost-effective solution to a rapidly growing market with minimal competition in its class. Australia’s increasing energy problems, harsh climate and the impacts of climate change is predicted to create rising demand. The superiority and affordability of Cosy 24/7 makes it well poised to sustainably service this demand.

NATIONAL DRONES

The Sky’s the Limit

Want to work your own hours and on your own terms? Don’t want the risk of being tied into a lengthy shop Lease? Perhaps you’re 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, ISO accredited franchised service provider of aerial inspection services, agricultural land surveys, photography and videography services utilising Remotely Piloted Aircraft Systems (RPAS). With hundreds of potential uses, RPA ’s are being used to

NOVUS Glass

Franchises currently available for discerning and passionate individuals to help improve the quality of life for Australians through the sales and installation of Cosy 24/7! Currently, there are no direct competitors in the energy saving window nanotechnology coatings market in Australia! Seize the opportunity! For more information please contact NanoShield at: www.nanoshield.com.au 1800 COSY 247 (1800 267 924) info@nanoshield.com.au

cut costs and improve customer’s bottom lines by saving time and improving safety across a range of industries, including agriculture, building and asset inspection, 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 (1300 759 843) or to submit an enquiry form visit: http://nationaldrones.com.au/franchising

ongoing support and assistance in all aspects of marketing and business development. We also provide you with ongoing referrals from our established portfolio of commercial clients in our comprehensive Fleet and Insurance referral network.

NOVUS is the Inventor of Windscreen Repair, providing professional and reliable services in auto glass repair and replacement. NOVUS was established in 1972 and has been operating in Australia for over 35 years. With over 2,000 locations globally and over 50 franchises across Australia, NOVUS Glass is The Clear Choice in Windscreen Repair.

Enquire today to become part of the NOVUS network. Phone 07 3625 2400 or email franchising@novusautoglass.com.au

On top of our comprehensive initial training, we also offer our franchise business partners

More information can be found on our website www.novusautoglass.com.au/franchising

OPORTO

Our wide customer base gives Oporto an ideal business platform on which to grow. We serve drive thru, dine-in and take away meals, and we also offer delivery to your door.

When you become an Oporto franchisee, you’re not just buying a restaurant, you’re buying into a powerful brand, built over 30 years. Many other brands and product categories have come and gone yet Oporto continues to grow. With over 150 stores nationwide, you’ll find us in cities, suburbs, food courts, stadiums and airports. Oporto is a celebration of PortugueseAustralian flavours that continues to evolve as our nation’s tastes and preferences change.

Sandwich Chefs® Join our team of Sandwich Chefs® and be a part of Australia’s most successful deli-carvery franchise with 50+ stores and continued growth across Australia. We provide over 30 years of brand history with tried and tested offerings from gourmet sandwiches to our carvery, fresh juices and barista made coffee. Our most successful franchisees exhibit great customer service skills and team leadership attributes.

100 Business Franchise Australia and New Zealand

If you are passionate about customer service and possess business acumen, there has never been a better time to become an Oporto restaurant franchise owner. Apply now! www.oporto.com.au/franchising

With a 6 week training program, we will cover all aspects of your business including in-store operations and business administration. A supportive marketing team will work with you to promote your store from promotional campaigns, brand awareness initiatives and local area marketing. We are looking for hands on people who are passionate about what they do and are ready to reap the rewards of their own hard work. For more information:

03 9856 4400 | chrisf@pnfm.com.au www.sandwichchefs.com.au

SMALLPRINT Smallprint is a home based business that handcraft silver keepsake jewellery. We capture loved ones fingerprints, hand or footprints, children’s drawings, words or names in a range of charms, pendants, key rings and cufflinks. Having commenced in the UK in 2005, Smallprint is now a global brand with franchisees in over 20 countries including Australia, which has 30 plus franchisees in all states.

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

SOCCAJOEYS Soccajoeys has been developed by a team of childhood development experts to provide soccer programs to children G E 27,000 aged 2.5 to 8 years. We deliver our programs to PA over children annually with over 300 classes in operation across the 6 country. Our mission is to give children the opportunity to develop skills for life through soccer. Transform lives, including yours and become a Soccajoeys Franchisee. We offer a unique opportunity for people to become mentors to the next generation of Australian kids, instilling in them a passion to lead healthy and active lives. • Ongoing training to boost your success

SOUL ORIGIN Soul Origin believes Australians eating in a hurry won’t have to compromise on quality. With a wide variety of salads, bread products and coffee, Soul Origin serves food good for the soul. Freshly created daily and ready to go, the Soul Origin philosophy is simple “Eat Mindfully”. Our coffee excellence compliments our menu

Exclusive territories are still available for sale. If you are looking for a home based business that returns more than a hobby then we maybe the right one for you. You do not need jewellery experience as full training is included prior to commencement. Strong customer service skills coupled with a drive to succeed could see you in a business that rewards in so many ways. To find out more, contact Ian Peebles on 1800 762 557 or email to ian@smallp.com.au

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.

• Continuous Head Office support (marketing, operational, financial and S Esystems) CTION 03

• Access to industry leading childhood development programs • Coaching and mentoring workshops • Trusted Australian brand • Become part of a thriving and energetic network of franchisees • Your own business and exclusive franchise zone • Rewarding career in the childhood development industry • Flexible lifestyle. Call us today on 1300 781 735 or email at info@soccajoeys.com

DO’S + DON’TS

Please visit our franchise page at www.soccajoeys.com.au/franchise

with either our Soul Origin blend or single origin for the astute coffee fanatical. Strong partner support and a proven concept has seen the brand awarded the FCA 2017 Emerging Franchise of the Year. Contact: Phil Tucker 0478 652 884 Email: philt@sohq.com.au

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SPRAY PAVE AUSTRALIA Pty Ltd

• Learn a range of new lifelong trades.

Earn up to $3,300 per week. With Income Guarantee.

• Head office training plus follow-up on your own job.

That’s right, up to $170,000 per year! Our service decorates concrete. We Spray Pave, Polish, Epoxy and Stain. Jobs are inside and outside. Customers are domestic, commercial and Government. Our license structure allows you to choose when, where and how you want to work! This is a sincere “Be Your Own Boss” system. You genuinely keep all the profits!

• Guaranteed work available anytime after training. • Customers contract and interest free finance. • Lifelong support from 6 Head Office trainers. • From $7,000 deposit + Support Payment Plan. Established in 1991, Security with Australia’s largest and oldest network. The name of the industry. Phone or email now, for a FREE information pack: FREE CALL 1800 688 888 Website: www.spraypave.com

Business Franchise Australia and New Zealand 101

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a-z d i r ecto ry

spudbar SpudBAR was founded in 2000 around the simple promise to create delicious food that’s healthy, great value and convenient. We discovered the spud was the perfect platform to build a meal around – delicious, filling and much healthier than the typical meal staples of pasta, bread and rice. SpudBAR takes the relationship with our franchisees very seriously, understanding that investing in a business is one of the biggest financial commitments that a person can make. Our franchisees are warm,

business franchise australia and new zealand AUSTRALIA AND NEW ZEALAND

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

THE CASH BACK APP Are you looking for an opportunity to build a true residual income? Our franchisees list local businesses on the app. Businesses share the app with their customers and customers share with their friends. This is your opportunity to join what we believe will become the next big viral app and potentially Australia’s largest loyalty platform.

down to earth people, passionate about bringing healthy, tasty food to their local communities. Our franchisees are a big part of the customer’s experience. So, it is important to us that the right kind of people join the SpudBAR family. If you love the idea of bringing fresh and healthy to the fast casual world, and are excited by the idea of owning your own business then we’d love to hear from you. Phone: (03) 9571 0600 Email: info@spudbar.com.au Website: http://www.spudbar.com.au

• Thorough training with ongoing support • Exclusive access to world’s first ZERO transaction fee payment platform Contact us TODAY to take back control of your life and your time. We’d love to discuss what this opportunity could mean for you. Call Matthew Inglis, Franchise Manager on

• Low cost of entry with interest free terms available • No ongoing franchise royalties’ payable • Exclusive territory with uncapped earnings potential

M: 0411 356 419

THE INTERFACE FINANCIAL GROUP - IFG 50/50

franchise network in Australia, New Zealand, Canada, the Republic of Ireland, the United Kingdom, the United States, Mexico and South Africa.

The Interface Financial Group franchisees provide shortterm working capital for businesses by purchasing their invoices at a discount. In the current economic climate SMEs need working capital but banks are unwilling or unable to provide it. Many of these businesses are turning to Interface for a solution. Interface has been in the alternative finance market business since 1972. It is the leading alternative funding source for business, and distributes its service through its

The IFG 50/50 franchise offers the opportunity to get started quickly and with a more modest capital base. Why? Because we syndicate all transactions with our franchisees 50/50. Franchisees do the ‘people work’ - we do the ‘paperwork’ – a great combination to achieve an aboveaverage return.

Theobroma Lounges, Pavilions, Bars

Our franchise offers: • Innovative and unique concept that includes all of life’s pleasures- chocolate, coffee, food, alcohol and retail. • Highest quality chocolate products. • Full training provided. • Professional support team with a range of skills to assist you.

The earliest record of chocolate was over two thousand years ago in the central American rainforest where the tropics is the ideal climate for the cultivation of the plant from which chocolate is derived, the Cacao Tree, Latin name “Theobroma Cacao” or “Food of the Gods”. The concept was developed in response to the spiraling demand of high quality chocolate and chocolate beverages with the added enhancement of a full food menu, with some stores even offering a licensed venue.

102 Business Franchise Australia and New Zealand

E: matthew@thecashbackapp.com W: www.thecashbackapp.com

For more information: ifg@interfacefinancial.com www.interfacefinancial.com.au/franchise

With new stores opening in countries across the globe, be part of something special. Contact Ben on +61 437 727 004 E: ben@theobroma.com.au www.theobroma.com.au

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

TRENT DRIVING SCHOOL

purpose. Get involved with a strategy to reduce the road toll.

At last! You can have a meaningful career helping learner drivers Have you been looking for a career that provides you with the opportunity to grow your own business, help your community become safer and truly make an impact? Work with a proven system and brand. As a Trent driving instructor, the time you spend training learner drivers will have a positive impact on their lives and create a safer future for all road users.

Great flexibility and work life balance. Inclusions• Best in market website • Online live booking system for use in vehicle • Sales and administration teams • + much more! Get started

This exciting business opportunity will give your day

Call Chris on 02 8748 4500

V.I.P. Home Services fencing & home maintenance

• Ongoing coaching and mentoring

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. You have a choice of owning a Fencing Franchise or Home Maintenance Franchise or why not do both? Affordable Franchise Opportunities NOW available in Melbourne, Victoria and Perth in Fencing or Home Maintenance. • 8 Weeks Paid Training - Fencing • 4 Weeks Paid Training - Home Maintenance

WOK ME Wok Me is an Australian owned healthy, fast food company based in Queensland. The first Wok Me opened in Fortitude Valley just before Christmas in 2004.

• Comprehensive Cloud based IT systems • National and local marketing • And much, much more. Regional (Master) Opportunities available! Currently we are seeking suitable candidates to take up this excellent but limited opportunity that is available Australia Wide. Husband and wife teams or business partners with integrity, energy and self-motivation should apply! For more information contact Warren Smith: Mobile: 0402 898 555 Email: joinus@vipfandhm.com.au Website: www.vipfandhm.com.au/join

delivered to you in store or to your home as quick as possible.

If you have had any experience in the fast food industry you will know that this can be a difficult time of year… But we opened with a BANG and have never looked back!

With success in an inner city restaurant hub, a discount outlet food court and a convenience centre in an outer suburb we know that this concept can work almost anywhere... Today we have 10 stores and are growing by the day with our motivated and creative team, this is your opportunity to jump on to the ship.

Wok Me has a philosophy to provide a healthy, great tasting, Fresh, made to order Fast to take home or

For more information on Wok Me go to our website www.wokme.com.au or email ben@wokme.com.au

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.

AUSTRALIA AND NEW ZEALAND

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