Business Franchise Aus & NZ Sep/Oct 2013

T he

ma g a z ine

for

franchisees

AUSTRALIA and NEW ZEALAND VOL 07 ISSUE 06 september / october 2013

On the menu:

The Food Franchising Issue Multiple franchises: Avoiding a train wreck

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

LATEST NEWS

When mediation works FINANCIAL ADVICE FROM THE BANKS

TOP LAWYERS’ ADVICE

Run your own rewarding business Fastway Couriers has a number of exciting franchise opportunities available • Guaranteed income package* • Low start up costs • Perpetual Franchise Agreement • Recognised brand • Award winning system for over 30 years

• Exclusive territories • No weekend work • Ongoing business support & training • Easy to operate - no experience required • Enjoy the freedom of working for yourself

To find out more contact us: Australia:

p. 1300 FASTWAY w. fastway.com.au

New Zealand:

p. 0800 4 FASTWAY w. fastway.co.nz

*For a defined period. Conditions apply. Fastway Couriers (Australia) ABN 38 057 389 769 | Fastway Couriers (NZ) Ltd T/A Fastway Couriers, New Zealand.

Fastway Couriers is a franchised courier network and its businesses are independently owned.

Fit Fleet.

Run your franchise at its peak.

A Daimler Brand

When you look at the lean, whole-of-life costs of Mercedes–Benz vans and our preferential fleet pricing, you'll understand how a Fit Fleet can help every franchise perform well. Let's discuss the advantages. www.mercedes-benz.com.au/vanfleet

Get a Fit Van Fleet Call 1300 366 372 Australian Credit Licence 387405.

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

“In this edition we take a closer look at some of the franchise systems thriving in the food and beverage industry and our experts have provided their insight into succeeding in this competitive world.”

From the

Melissa Wakefield, Editor, CGB Publishing.

Editor If you’re considering venturing into the exciting world of franchising, you won’t want to miss this issue of Business Franchise Australia and New Zealand.

It is simply overflowing with food for thought and we hope we have helped you in some way as you go about immersing yourself in all things franchising.

From our regular contributors, we provide a collection of expert advice to help set you up on your journey to a rewarding franchise experience. We profile some of Australia’s top franchise systems, and report the recent goings on in our What’s New pages.

Did you know that 1 in 8 small businesses are affected by false billing scams? Dr Michael Schaper from the ACCC provides important information on how to protect your business from scams and what to look out for.

Corina Vucic from FC Solutions advises on the importance of understanding your team, from the perspective of taking over an

BUSINESS FRANCHISE AUSTRALIA and new zealand VOLUME 7 ISSUE 6, sept / oct 2013 publisher: Colin Bradbury. colin@cgbpublishing.com

established franchise, or creating a new one.

Steve Seddon from Westpac shares his invaluable franchising knowledge and experience to ensure you are proactive in in securing your personal and financial success, through effective financial and operational planning.

EDITOR: Melissa Wakefield. editor@cgbpublishing.com.au SALES DIRECTOR: Vikki Bradbury. vikki@cgbpublishing.com SALES & marketing manager:

The Franchise Council of Australia overview the very recent Franchising Code of Conduct review and what this means for our industry.

Kathleen Lennox.

Our experts have covered everything from the legal concept of exclusive dealing, trends in franchising, online marketing for franchise systems, and how to avoid multiple franchise disasters.

Jodie Turner.

In addition, we overview the substantial food franchising sector... it’s a ‘foodie’s’ delight, this issue! We also proudly feature McDonald’s licensee, Phil Wilson, on the cover as he shares his journey from travel industry to family restaurant. We thank him for sharing his interesting story and advice.

On a personal note, and in my first edition as Editor, I would like to wish you every success as you embark on your franchising journey.

Melissa Wakefield Editor

kathleen@cgbpublishing.com.au SALES & marketing executive: jodie@cgbpublishing.com.au PRODUCTION: Joanne Tuffy. production@cgbpublishing.com.au ACCOUNTS: accounts@cgbpublishing.com.au DESIGN: Jejak Graphics (03) 9772 2571 COVER IMAGE: McDonald’s Australia TO SUBSCRIBE: www.businessfranchiseaustralia.com.au or www.isubscribe.com.au CGB PUBLISHING PO BOX 968 MT ELIZA, VICTORIA 3930 TEL: (03) 9787 8077 FAX: (03) 9787 8499 Email: cgb@cgbpublishing.com.au

SUPPLIER FORUM

www.businessfranchiseaustralia.com.au www.businessfranchisenz.co.nz

The information and contents in this publication are believed by the publisher to be true, correct and accurate but no independent investigation has been undertaken. Accordingly the publisher does not represent or warrant that the information and contents are true, correct or accurate and recommends that each reader seek appropriate professional advice, guidance and direction before acting or relying on all information contained herein. Opinions expressed in the articles contained in this publication are not necessarily those of the publisher. The publication is sold subject to the terms and conditions that it shall not be copied in whole or part, resold, hired out, without the express permission of the publisher.

Business Franchise Australia and New Zealand 3

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

Contents 61

september / october 2013 On the Cover 36 Multiple franchises: a train

wreck waiting to happen?

Kieran Liston, Liston Landers

48 Why mediation works to

61 Feature – Food

6

What’s New!

Announcements from the industry

10 Cover story – McDonald’s Australia

Michael Paul, FCA Chairman

16 Executive Director’s report

Graham Billings, FANZ Executive Director

71 Book review – Janine Allis

Profiled Franchises 12 SumoSalad

Flying to success

14 Chairman’s report

On the menu

90

38

22

In Every Issue

resolve franchise disputes

Jason Gehrke, Franchise Advisory Centre

The secrets of my success

20 Cafe2U 42 TeleChoice 46 V.I.P. Australia 58 Snap-on Tools

100 Behind the Headlines

Jason Gehrke, Franchise Advisory Centre

101 Professional Services Listings 102 Franchise Listings 104 A-Z Franchise Directory

66 Zarraffa’s Coffee 88 InXpress 96 The Concrete Cutter

Franchisor in Depth 68 Fasta Pasta 72 Lava Carts 76 Taco Bill

also in this issue: Battery World................................................. 47 Brazilian Beauty............................................ 33 Bright Eyes Franchising........................... 25

18 30 52

Wisewould Mahony Lawyers National Franchise Insurance Brokers

Coral Homes.................................................. 25

68

Snapshot / Spotlight on Service

Energis. .............................................................. 41

Exa Web Solutions. .................................... 35

eWorks Fastway Couriers....................................... IFC

Expert Advice 22 Increasing the success of your franchise business

Steve Seddon, Westpac Banking Corporation

26 Which kind of franchise is right for me?

Kevin Bugeja, Franchise Selection

32 Franchisees at risk of false billing scams

Dr Michael Schaper, ACCC

38 Create value in your retail experience

Franchise Selection.................................... 50 Jump! Swim School................................... 87

84

FC Business Solutions. ............................ 19

Link Business Broking.............................. 29

Mercedes Benz. .............................................. 2

Brian Walker, Retail Doctor Group

44 Four steps to handling complaints

Noodle Box. .................................................... 60

54 Understanding your team and how

Red Rock Noodle Bar. ............................. 75

Michael Sherlock, Consultant

it works

Corina Vucic, FC Business Solutions

80 Approaches to managing

RedCat.................................................................. 1

employment

Dr Ashlea Kellner, Griffith University

Rent the Roo.................................................. 83

84 Trends in franchising

Philip Morrison, Franchise Accountants

90 Exclusive dealing and obligations

Bianca Sevastos, Baybridge Lawyers

92 Evolution of territory planning

Peter Buckingham, Spectrum Analysis

98 Online marketing for franchise

Snooze.............................................................IBC

businesses

Ben Bradshaw, SponsoredLinX

The Australian Drug Detection

44

Agency............................................................... 81 The Interface Financial Group.............. 57

what’snew!

Anytime Fitness Opens 250th Club in Australia!

Anytime Fitness Australia, part of the world’s largest 24 hour co-ed fitness franchise, have reached yet another milestone with their recent 250th club opening.

The club belongs to 29 year old franchisee Chris Bennett and is located in Mount Isa, QLD. This will be Chris Bennett’s first Anytime Fitness franchise, though he already has a second one scheduled to open in three months in Kalgoorlie.

Chris comments, “I come from a mechanical background, so had no previous experience within the fitness industry. I’ve always had a passion for fitness though and have been training in gyms for the last 15 years, so to be able to open my own was dream come true. I also love being in an industry that has a positive impact on so many people’s lives.

Anytime Fitness head office have provided me with endless support and operating systems to assist in my business growth, and I’m pumped to have two Anytime Fitness gyms opening within the next three months.”

The club’s master franchisees for Australia,

the brother-and-sister team Justin McDonell and Jacinta McDonell-Jimenez, are proud to announce the 250th club opening. Justin McDonell says, “We are aiming to open 400 clubs nationally so are very happy to be over our half way mark. Our most successful franchisees focus on sales and marketing and hire a fantastic club manager to produce an ideal club culture. Our clubs offer the members what they need – great equipment, personal attention, and convenient and affordable facilities, open anytime”.

Justin McDonell and Jacinta McDonellJimenez launched the highly successful USA franchise into Australia in 2008. Since the launch of Anytime Fitness into Australia it has become the quickest growing segment of the world’s fastest growing fitness chain, with over 2000 clubs and 1.5 million members’ worldwide. Anytime Fitness want their members to see them as more than just a gym and to ‘Feel Something Better’ whether that’s weight loss, strength gain, a lift in self-esteem or something much more subjective, and Anytime Fitness believes they can provide this by being the gym that is refreshingly different.

Registrations open for the National Franchise Convention 2013 Registrations are open for the National Franchise Convention 2013, to be held at Jupiters on the Gold Coast.

Delegates will hear from some of Australia’s leading business and technology leaders including: Guy Russo, MD - K-Mart, Hamish Moline, Director - eBay, Warren Wilmot, CEO – 7-Eleven, Dean Pearson, Head of Industry Economics – NAB , James Sanders, Head of Channel Sales - Google and many more.

From the United States, the keynote address will be delivered by Steve Romaniello, the Chairman of the International Franchise Association, and Managing Director of the Roark Capital Group.

The three day convention opens with a Legal Symposium, and for the first time ever, will include a CFE (Certified Franchise Executive program) education stream. Each session will attract CFE credits, and registration is open to all.

Back by popular demand are the franchisor panel sessions, featuring

6 Business Franchise Australia and New Zealand

some of Australia’s best, and up and coming franchisors and CEO’s sharing their knowledge and experience. Brands on the panels include: 7-Eleven, The Coffee Club, LJ Hooker, Foodco, Luxottica, The Coffee Club, Wendy’s, Mortgage Choice, GJ Gardner Homes and Wendy’s Supa Sundaes.

As in previous years, there will be a focus on networking – guests will be transported by catamaran to the beautiful surrounds of McLaren’s Landing to make new connections, enjoy fine food and talk all things franchising.

The convention concludes with a Gala Dinner to celebrate the NAB FCA Excellence in Franchising Awards.

There are limited sponsorship and exhibition booths still available.

For enquiries, please contact the Franchise Council of Australia on, 1300 669 030 or visit www.franchise.org.au and click on the NFC banner.

approach that would support people who may have no business or retail experience,” Steve said.

“We provide a full training program at no extra cost. Quality training from the start is a huge influence in a franchisee’s success and it’s critical to giving potential franchisees more confidence in their decision-making.”

Puckles also moved away from the royalty system most common to the industry. “Franchisees are looking for more value in a tight economy,” Steve said.

“Having no royalties is a practical way to create a strong profit base for the business while giving our franchisees more control over their own profit – and the feedback has been very positive.”

Puckles offers sweet innovation for franchisees Puckles Family Bakehouse has created an innovative franchise offer in response to a market trend that’s seeing more ‘first timers’ entering the bakery and café franchise sector.

Owned and managed by the Plarre family, of Ferguson Plarre Bakehouses, Puckles has four stores in Queensland since launching in December 2011, based on a model geared for simplicity.

Puckles Director Steve Plarre said the business was attracting interest from people new to franchising. “With people seeking more independence in their lives, we knew we had to create a franchise

The innovative business offer is rounded off with Puckles’ simple bakery model that ensures fresh products for customers without the hurdle of needing skilled pastry chefs and bakers in-store.

Base product components are delivered from the award-winning Ferguson Plarre export-grade manufacturing facility. The training program equips franchisees to manage the final stages of baking and finishing in-store, creating fresh products without the space or skill needed to start from scratch.

“Everything Puckles sells is made 100 per cent in-house. It’s unique in the market to have a franchisor that’s also your baker – with nothing outsourced,” Steve said. “It gives us full control over our supply chain, the quality of our ingredients and product innovation.

Along with the right training and support, that’s how we ensure a consistently excellent product range.”

Puckles offers homestyle cakes, savouries, party food and celebration cakes, as well as barista coffee and other beverages.

PIE FACE RECEIVES PRESTIGIOUS AWARD Aussie favourite Pie Face has been awarded with a Certificate of Excellence

by TripAdvisor, the world’s largest travel site renowned for its reviews and advice on all things travel. The worldwide accolade honours hospitality excellence and is awarded to establishments that qualify in the top-performing 10 per cent of businesses listed on TripAdvisor.

“Pie Face is proud to receive a TripAdvisor Certificate of Excellence,” said Kim Carlon, Senior Marketing Manager at Pie Face. “We strive to offer a memorable and delicious experience for our customers, and this accolade is evidence that our hard work is translating into positive feedback from our valued TripAdvisor customers. As an Australian company our worldwide reputation is important to us and we work hard to ensure that our products and customer service are our number one priorities.”

Pie Face is one of Australia’s leading bakery cafe with over 70 franchise stores across Australia and four stores now open in New York. Over 3.6 million pies are eaten in Pie Face stores alone every year, showing just how much Australia’s love affair with the humble pie is continuing to grow. Pie Face uses only the finest ingredients to create its character filled pies so consumers can be safe in the knowledge that they are consuming fresh produce.

“TripAdvisor is delighted to celebrate the success of businesses around the globe, from Sydney to Chicago, Sao Paulo to Rome, which are consistently offering TripAdvisor travelers a great customer experience,” said Alison Copus, Vice President of Marketing for TripAdvisor for Business.

“The Certificate of Excellence award provides top performing establishments around the world the recognition they deserve, based on

feedback from those who matter most – their customers.”

From businesses to hotels, the TripAdvisor Certificate of Excellence recognises companies that consistently achieve outstanding traveller reviews on TripAdvisor.

To qualify, businesses must maintain an overall rating of four or higher out of a possible five, as reviewed by travellers on TripAdvisor, and must have been listed on the website for at least 12 months.

Business Franchise Australia and New Zealand 7

what’snew!

Snooze leads innovation charge with online bedBUILDER and customisable furniture the company’s recent website analytics identifying a trend towards shoppers using mobile devices to research products and compare prices. In the past year alone, mobile traffic on the Snooze website has increased by more than 400 per cent.

Snooze’s Manager Director, Simon Beaty commented, “At Snooze, we understand how important it is for a new bed to be a representation of the customers individual style, so we’re pleased to be able to deliver further creative control in an easy to use way”.

This isn’t the first time Snooze has launched an exclusive technology. In 2011, Snooze introduced bedMATCH – powered by Sleep to Live, the system helps take the guesswork out of buying a bed by matching customers to a selection of mattresses that may better meet their needs.

Snooze today unveiled its brand new online tool, the bedBUILDER. The first of its kind for the company, the tool allows consumers to design their dream bed from the comfort of their own home with a few easy clicks of the mouse.

The launch comes in response to market research insights revealing consumers’ increasing desire to personalise the look and feel of their living space.

The tool will also be used to strengthen Snooze’s ongoing online strategy, with

Mr Beaty continued, “The retail purchasing landscape is constantly evolving and, as a result, Snooze will continue to adopt new methods that respond to our customers’ needs and engage with them in new and exciting ways.”

Visit www.snooze.com.au to trial the bedBUILDER or to find out more about franchise opportunities at Snooze.

NZ Franchising Sentiment Remains Elevated According to the latest Franchize Consultants 2013 Franchising Confidence Index July results, f.ranchisor sentiment is very positive and remains elevated this quarter, across a range of important franchise sector growth drivers.

Most notable were high and positive levels of sentiment toward franchisor growth prospects, sales levels per franchisee, general business conditions, and franchisee profitability levels.

The Franchising Confidence Index is a quarterly survey that tracks key factors

that impact the growth and development of the economically important New Zealand franchising sector The key highlights included: • Franchisors sentiment toward general business conditions is high and comparable to other general business confidence surveys (i.e. ANZ, BNZ and NZIER).

providers noted improved sales conditions.

The Franchize Consultants’ July 2013 Franchising Confidence Index demonstrates a general trend towards improvement in confidence across overall sector growth drivers.

For a copy of the full report visit: www.franchisingconfidence.co.nz

• Franchisors remain positive, on balance, about franchisee profitability prospects – arguably franchising’s most important key performance indicator.

• Generally, both franchisors and service

8 Business Franchise Australia and New Zealand

FRANCHISING SENTIMENT REMAIN Franchize Consultants’ July 2013 Franchising

Plus Fitness announces the recruitment of a National Franchise Support Manager Having grown from 6 to 60 gyms in just two years, and with a further 54 territories sold, Plus Fitness recently announced the recruitment of Roger Nakad in the newly created position of National Franchise Support Manager.

Roger has an extensive background in both the Fitness Industry and Franchising Sector.

With a degree in Business and Marketing, Roger has also previously held senior roles within both Fitness First Australia and Genesis Health Clubs. Roger’s primary role with Plus Fitness will see him and his team of Franchise Support Managers continue to

assist all Plus Fitness Franchisees with their business and professional growth.

Franchisors Nigel Miller and John Fuller said that with growth at such a rate, the need to create this role became had become apparent. The appointment would ensure that their team of Franchise Support managers were getting the right level of support that would in turn flow on to their franchisees Miller went on to say, “With our high support Franchise Model, the need to attract someone with both Business Franchise and Fitness Industry experience was crucial and in recruiting Roger we have achieved this

whilst also attracting someone that has the work ethic and attitude in fitting with our brand and existing leadership team.”

Having recently opened their first Franchise in Queensland, and with a further 12 Queensland Territories sold, Plus Fitness is now located in 5 States and is showing no signs of slowing down.

To find out more about Plus Fitness, visit www.plusfitness.com.au

Jim’s take on Conveyancing The Jim’s Group franchise juggernaut has announced the launch of its 36th division, Jim’s Conveyancing.

The division is headed by experienced Melbourne-based conveyancer, Mandi Morison, who has been involved in the industry for 13 years and operates Victoria’s largest conveyancing firm “After more than two years in the planning, Jim’s Conveyancing was finally launched on July 1 and the first lawyer franchisee, for the Yarraville/Williamstown area in Melbourne’s inner-west, has already come on board,” Mandi said.

Mandi said that the Jim’s Group customer service ethos was the driving force behind her partnering with Australia’s largest service franchise network.

“Jim may not personally know about conveyancing, but he does know a thing or two about service. In fact he is completely obsessed by it and instills the strictest service standards in all Jim’s franchisees.”

“We are hoping to establish ourselves in all major centres in Victoria, and will then be looking for regional franchisees in the other states so that we can launch nationally early next year.”

Jim’s Conveyancing is one of the Jim’s Group’s newer franchise categories of ‘and depending on state licensing requirements franchisees can either be lawyers, established conveyancers, or people wishing to train and become licensed conveyancers.

Mandi has big plans to completely overhaul the public’s perception of the conveyancing business by providing a consistent, professional service with friendly, approachable franchisees who are as passionate about property as their clients are.

“We absolutely love property. Every settlement is a triumph and something to get excited about. Each settlement is different and there can be a minefield of legal and logistical issues associated with ensuring that settlement day goes smoothly, and that’s what Jim’s Conveyancing is all about.

“We not only help with buying and selling residential properties but also with business sales and purchases, so we are available to help other Jim’s franchisees within the group.”

Jim Penman, (right), welcomes the Jim’s Conveyancing team to the Jim’s Group

Business Franchise Australia and New Zealand 9

COV ER STORY

Flying to Succe head office previously, that sparked his interest in becoming a McDonald’s licensee.

He still recalls this conversation to this day.

“She was so passionate about her time there,” he said.

“I researched many franchise systems over a long period. I was only interested in the ‘best’ model, and I firmly believe McDonald’s are the market leaders. If you speak to anyone who has had an experience with McDonald’s, it’s always positive.” he explained.

Phil insists that it’s important to do your homework when embarking on purchasing your first franchise, and he found talking to other licensees invaluable.

“The support from the licensee network was extraordinary and incredibly unique in my experience. They were so generous with their time and would constantly tell me to pick up the phone if I had any questions,” he said.

In 2011, McDonald’s celebrated its 40th anniversary in Australia, and now has over 900 restaurants.

Phil Wilson held various mid to senior management roles over 20 years, working for a large corporate in the business travel sector in Sydney.

While having no previous experience managing a restaurant, he believes he was able to draw from his past business experience and the many parallels.

“At the end of the day, it’s all about customer service,” Phil said.

The business ownership dream started a few years ago. “I’d always had a burning desire to own my own business. I needed to prove to myself that I could do it. I didn’t want to end my working life and have not given it a go.

Phil finally began operating his own McDonald’s franchise in December 2011 in Scone, located in the upper Hunter Valley in New South Wales. He attributes a conversation he had four years prior with a colleague, who had worked at McDonald’s

10 Business Franchise Australia and New Zealand

“Another thing that struck me as I spoke to other licensees was their longevity in the business. I met with a number that have been in business for 25-35 years,” Phil said. These observations also gave Phil the confidence that he was starting his business for life; as he hopes to one day pass it on to the next generation.

“They have such a strong brand, strong systems and structure. It was a very logical decision for me,” he added.

Buying a franchise is a lengthy but thorough process. He advises the potential franchisee to make sure the business model is a good cultural fit – for both you and the franchisor - and said he found everyone throughout the process to be open and supportive.

“If I had come from a background working with a small team of 3 to 4 staff, it would have been quite a culture shock coming into the business,” he said.

cess “McDonald’s provided invaluable training, everything from start to finish. The basics right through to a structured management program. Everyone could learn from the way McDonald’s train their licensees,” said Phil.

Phil acknowledges that the training is intensive, and adds, “In retrospect, it was critical to understand every facet of the business. It gave me the confidence to know that I can manage a profitable business.

Also, the culture and professionalism were invaluable to making the transition to business owner.”

Phil is quick to point out that you should be under no illusion that the system will do all the work for you. “While the training provides you with the tools, you also have to get in and roll up your sleeves so that you fully understand every aspect of the business – from the back of house to the front of house. You need to select, remunerate, and incentivise the right crew to create a long lasting business model,” he explained.

Phil currently employs around 80 staff, with aspirations for this to grow to well over 100 in the future. “The first twelve to eighteen months were the hardest. The restaurant now has its own culture, a fantastic team and a great bunch of managers, but it took hard work.

“You are the face of McDonald’s. Customer interaction is a big part of the role. If you think you can be out the back, then being a licensee is probably not for you,” added Phil.

“I really enjoy the day to day operations of the restaurant. It’s a great way to speak with customers and make sure we’re doing a good job” said Phil.

Phil has much advice to offer those looking to enter the world of franchising. “There is no easy solution. Everything is hard work but the return and sense of achievement is really rewarding. There are opportunities out there if you want to get involved.

“Be sure to budget for the training process.

Invest in yourself to achieve what you want to achieve. Be prepared for a lot of travel!” he said.

Potential licensees must make an upfront investment and security of at least $500,000 in equity and assets at the commencement of the franchise. Furthermore, they need to ensure they have the capital available to cover the nine months they will spend undertaking the Registered Applicant Training Program. While the investment of time in your new franchise is significant, Phil also had this to add: “McDonalds gave a lot back to me for my investment; their support, which is ongoing, and years of experience from other licensees.”

McDonald’s licensees are also expected to make a twenty year commitment to the business, as the franchise term of 20 years is standard.

Relocating his family from Sydney to the upper Hunter Valley has also been positive.

“The region has great schools, reasonably priced real estate and we are enjoying the transition to country life. It’s also good from a profitability point of view,” he explained.

Importantly, licensees are expected to become an integral part of the community within which they operate, as an employer, service provider and local business – becoming the Mr & Mrs McDonald’s of their local community. Licensees have a responsibility to add value to the locality in which they operate, playing and active role in their community through support to community groups and charities that make a difference to the lives of every day Australians.

conferences, the Women’s Leadership forum, and the reward of supporting the Ronald McDonald House Charity, which has been making the lives of seriously ill children and their families easier since 1981.

Phil says he enjoys being a part of his new local community. “As one of the largest employer’s in the region, it’s very rewarding.

It’s the best thing I ever did”.

McDonald’s Australia would like to partner with you to create the next success story.

If this sounds like the next chapter in your life, contact: Email: franchising@au.mcd.com Web: www.mcdonalds.com.au

PHIL’S TOP TIPS • Just do it • Do your research • Learn the business • Speak to other franchisees • Be prepared for hard work • Employ the right team • Follow the Macca’s system It works!

Other opportunities that are provided to McDonald’s licensees include global

Business Franchise Australia and New Zealand 11

PROFILE : Su m osa l a d

CELEBRATING 10 YEARS WITH EXPANSION SumoSalad is excited about this year’s brand expansion into North and South America, which also coincides with the franchise’s 10-year anniversary.

Australia and learnt of the values they pride themselves on, we knew it was a business we had to be a part of and introduce to the US. We’re really excited about the launch of SumoSalad into the American market and feel confident that it will resonate with consumers as well as educate them on healthy lunchtime options.”

Having served 30 million salads since its first store opening in 2003 in Sydney, SumoSalad is continuing to expand its presence by launching new stores in the key markets of North and South America.

Brazil master franchisee, Joao Mastrangelo, who moved to Australia a decade ago, commented: “The importance of a healthy lifestyle is truly prevalent in Brazil, where fresh food is the centrepiece of most dining experiences.

SumoSalad was formed after its founders, Luke Baylis and James Miller, spent two years in America experiencing the country’s trends of obesity, poor diet and exercise, and wanted to make sure it didn’t happen in Australia. Now, after 10 successful years on home soil, SumoSalad is opening its first store in North America, reconnecting with the country that prompted its very existence.

“In the US we noticed a need for easy, convenient and affordable healthy lunchtime options, the current availability of this is scarce and consumers are hungry for fresh accessible produce,” said American master franchisee, Matt Yuriditsky.

“When we discovered SumoSalad in

SumoSalad will also see brand expansion into South America with the launch of new stores in Brazil in late 2013.

“I knew there was an opportunity to bring one of the local healthy food brands across to the people of Brazil and we couldn’t look past SumoSalad. It offers accessible, good quality produce that is tasty and fresh. A winning combination! We are looking to open 300 stores across various markets over the next 10 years, so really looking forward to getting started in time for the World Cup in 2014.”

While SumoSalad is looking to expand its stores globally, it still remains committed to providing healthy lunchtime options to Australians nationwide.

“We are looking to launch at least 15 new

12 Business Franchise Australia and New Zealand

stores each year in Australian high street and CBD locations,” said Luke Baylis, CEO and founder of SumoSalad. “SumoSalad will become more convenient than ever before and we’re really excited about what that means for people looking to make healthier lunchtime choices.”

Now in its tenth year, SumoSalad is Australia’s largest and most awarded healthy fast food franchise, with 91 stores across Australia, as well as nine internationally in New Zealand, United Kingdom, Dubai and Singapore. A recent investment from the Tulla Group in December 2012 has ensured a bright future for SumoSalad, further cementing its place as a leading Australian franchise.

“I remember making winter soup by hand in our first store!” said Baylis. “We’ve come a long way since then, but I will always look fondly on our experiences at the beginning.”

Baylis added: “Our staff and franchise owners have worked tirelessly to ensure SumoSalad can offer nutritious, satisfying and convenient meals over the past 10 years, and I cannot wait to see what the next decade will bring.”

For further information contact: Phone: 0401 055 437 Email: steves@sumosalad.com Web: www.sumosaladfranchise.com.au

Business Franchise Australia and New Zealand 13

fr anch ise cou nci l o f aust r a l i a

All signs point to a healthy sector and a modernisation of regulation At the time of writing, the Federal Government has just commenced a regulatory impact analysis on the recommendations contained in the Wein Report.

its response to the Franchising Code of Conduct review, which has been continuing in various phases since early January this year.

Following a consultation period that closed on the 9th of July, the Government released

Given the sector was heavily involved via submission processes prior to both the

The news is good. Minister for Small Business Gary Gray, along with Parliamentary Secretary for Small Business, Bernie Ripoll released a response on the 24th of July accepting all the recommendations in the review, in entirety, part or principle.

14 Business Franchise Australia and New Zealand

review and the Government response, it is reasonable to believe that a wide cross section of stakeholders in franchising have been heard. It also appears from the response the current Government, while requiring further analysis, is upbeat about the future of franchising in this country.

What has come out of this process is a consolidation and modernisation of the Code that regulates our sector: • The obligation for both franchisors and franchisees to act in good faith, while historically present under common law, will likely be included as an express obligation for both parties under the Code; • It is probable disclosure requirements will be updated to include the rights of both the franchisor and the franchisee to conduct and benefit from online sales; • It is most likely the Government will legislate to ensure the ACCC has the power to seek pecuniary penalties and infringement notices for Code breaches.

The response also outlines the plan to ‘clarify the policy intent of provisions of

“It is reasonable to believe that a wide cross section of stakeholders in franchising have been heard.”

Michael Paul, Chairman, Franchise Council of Australia.

the Code which have caused unintentional confusion of an administrative burden without any corresponding benefit’.

Ours is a sector that has evolved with the rest of the Australian business community.

Reassuringly, our regulatory framework is one that simply needs updating to reflect the current state of doing business in Australia and globally, rather than one that needs fixing.

implementation will take place ‘as soon as feasible’. With limited days left on the parliamentary calendar, a new process for regulatory impact analysis, and two pieces of legislation to update (the likely changes will require updates both to the Code and Competition and Consumer Act 2010), we

can assume there will not be much movement until after the Federal election.

Regardless of when the election takes place, input from across the franchising community has ensured any changes to our sector will reflect what is best for franchising in Australia.

In its response, the Government confirmed its commitment to the sector through initiatives such as the Office of the Franchising Mediation Adviser and free preentry training sponsored by the Australian Competition and Consumer Commission.

The Office of the Franchising Mediation Adviser (OFMA) is a wonderful resource for franchisees and franchisors alike to assist in both early intervention, and phone and face-to-face mediation. Government funded, the OFMA provides a free or low cost means of dispute resolution and peace of mind for franchisees.

Close to the heart of the FCA is credibility.

The Government’s added focus on preentry education and transparency through disclosure aligns with FCA member standards, and works to enhance Australian franchising. When proper due diligence is performed by a prospective franchisee, both on their chosen system as well as their own financial situation and desired lifestyle, franchising as a business model really is win-win.

To that end, it was encouraging to read in a release from the ACCC in July, that not only were complaints down almost 40 per cent in the last six month period, there have now been more than 4,500 successful completions of the Griffith franchisee pre-entry course sponsored by the ACCC. Timing around the regulatory impact statement and implementation of changes is still unknown. According to the response,

Business Franchise Australia and New Zealand 15

fr anch ise associ at i o n o f n e w ze a l an d

FANZ launches free online training course for prospective franchisees The Franchise Association of New Zealand Inc. (FANZ), the peak body for the $20 billion franchising sector, has launched a free online training course in association with Massey University that can be accessed through the FANZ web site: www.franchiseassociation.org.nz.

Although there are almost 24,000 independently owned New Zealand businesses operating in a franchised format, up to now there has been no NZ based pre-entry education programme for people considering buying a franchise. The availability of relevant information is part of the total solution for greater informed decision making by prospective franchisees.

In recognition of the benefits of such a course, some funding was provided by the Ministry of Innovation, Business and Employment towards the initial production costs.

Franchising research in Australia has previously found that improved pre-entry

16 Business Franchise Australia and New Zealand

New FANZ Board takes up its responsibilities following the AGM The election result saw Ian Robertson, the National Franchise Manager for New Zealand Post, re-elected and Sean Dwyer of ASB, elected for his first term. Chairman, David Foster, did not have to re-stand as he automatically stays on the Board as Immediate Past Chairman.

At its first meeting, Ian Robertson, who was Vice Chairman last year, was elected as Chairman, with Brad Jacobs of The Coffee Club New Zealand elected as Vice Chairman.

Ian Robertson

education is likely to have significant positive impact on the franchise sector. One key study found that 71.3 per cent of respondents felt completion of pre-entry education should be a mandatory requirement before entering a franchise agreement.

Each module incorporates a mixture of downloadable text and short videos followed by a self-assessment questionnaire.

Completion of a module allows access to the

He brings with him a wealth of hands-on experience across the franchise sector, with previous involvement in both large and small ticket retail systems, along with experience in the home service sector.

Ian is still passionate about franchising and the benefits it has to offer and he commented, “As an industry that generates a turnover of approximately $20 billion in New Zealand, franchising contributes significantly to our economy. The high standards set by members of the Association, combined with their commitment to self-regulation, certainly add credibility to those franchise systems and affiliates that are members.”

ranchisees Principal author of the 5 module course is FANZ Affiliate Member, Franchize Consultants, with contributions from other key FANZ Member experts from the banking, legal, accounting and property leasing sectors.

Ian Robertson is an experienced franchise professional with more than 20 years in the franchise industry; initially as a franchisee and then in franchise sales, recruitment, training, operations and management. He was elected to the Board in 2011 and as Vice Chairman in 2012.

Brad Jacobs

next in the series, with Massey University providing a Certificate of Participation to individuals who complete all 5 segments.

Potential Australian franchisees have had the benefit of a similar course for some years produced by Griffith University of Queensland.

As the new Chairman, Ian commended previous Boards of the Association for their focus on self-regulation. He went on to say that the work carried out by the Board over the past two years, to develop and implement the free pre-entry online course for prospective franchisees was a major step forward. “A clear focus for the Board over the coming two years will be on-going education for existing members and targeting additional quality franchise systems and affiliates to take up membership,” he said.

Business Franchise Australia and New Zealand 17

Sn a pshot on Service : W ise wou l d M a h o ny Law y ers

Franchise Law Specialists Wisewould Mahony Lawyers is a Melbourne-based Corporate law firm that acts for business clients throughout Australia and overseas with expertise in franchise law, licensing and distribution, liquor licensing and gaming, pharmacy, new energy law, regulatory compliance, and corporate and taxation advice.

The practice is the result of the successful amalgamation of two highly recognised law firms on 1 July 2009. Wisewoulds have been in business since 1853, and Mahonys since 1885.

Based in Melbourne, the firm operates a modern, progressive and diverse law firm from their historic Collins Street premises.

Although proud of their heritage, they are dedicated to modern work practices, flexible costing and the use of the most up to date technology in the practice of law.

There is no pretence at Wisewoulds. They are proud to be a leading medium sized Melbourne law firm that is able to provide their clients with a range of fee options, including fixed fees, capped fees and fees based on the scope of services. Clients can therefore budget with certainty for their legal costs.

The firm has over 30 years of Specialised Franchise Industry knowledge acting for retail clients, local and international franchisors and companies as well as inhouse Tax and Employment Law specialists.

Services Provided • Legal and consulting advice to franchisors & franchisees • Code compliance requirements

• Dispute resolution – mediation – strategies & solutions • Sale/Purchase of franchise systems

• Employment law and workplace relations specialists • Master franchising

• International franchising • Business law specialists.

Robert Toth is a recognised leader in the areas of franchise and dispute resolution and now a converted serial blogger on LinkedIn. Robert is an Accredited Business Law Specialist. The Corporate Workplace and Property Group, offer expertise in the following areas: • Franchising - acting for both franchisors (local and international) franchisees, master franchisees and area developers; • Franchise dispute resolution acting for both franchisors and franchisees solutions and strategies - mediation;

• Mergers and Acquisitions of small to large business; • Liquor Licensing and Gaming;

• Retail leasing, property and development projects, joint venture syndicates; • Establishing companies in Australia for foreign companies; • Licensing and distribution, commercial and contractual agreements, software licensing and development agreements;

Robert holds memberships and associations with: • Franchise Council of Australia (FCA);

• International Franchise Lawyers Association (IFLA) with Franchise lawyer networks worldwide; • Franchise Association of New Zealand (FANZ);

• Member of the US Commercial Service; • Member of the Themislink Legal Group Worldwide;

• Board member and Company Secretary (corporate compliance) Elwood Community Bank (under franchise of the Bendigo Bank); and

• Advisory Board member to franchisor and corporate clients.

Robert has also published numerous articles in the Australian Financial Review, franchise magazines and on the internet and Journals on franchising and establishing business operations in Australia.

At Wisewould Mahoney Lawyers, there is no greater reward than working closely with their clients and enjoying their success.

For advice contact: Phone: 03 9629 8333 Email: enquiries@wisemah.com.au Web: www.wisewouldmahoney.com.au

• General commercial, corporate advice and consultancy, shareholder / unitholder agreements and buyouts; • Corporations Law - director’s duties, corporate compliance and ASIC prosecutions of directors;

• Pharmacy Law - advice to Pharmacists and Pharmacy Representative organisations; • Contract - Tenders and Trade Practices Law (Competition and Consumer Act 2010) and

• Renewable Energy Law – Solar – Regulator requirements of ORER and the Clean Energy Council (CEC).

18 Business Franchise Australia and New Zealand

FC_

Meet the team

GO TO OUR NEW WEBSITE

fcbusinesssolutions .com.au

Business Franchise Australia and New Zealand 19 FC_A4Adver[2012].indd 1

22/09/12 4:39 PM

profile : Café 2U

The new franchisee frontier In March 2012, John Kaxos, made the leap into business ownership with the purchase of his first franchise with Cafe2U. It was the culmination of months of research and competitor analysis, a process which also included spending a day with an existing franchisee, and one that John believes was integral in making the right decision for him.

“I researched a number of different franchise systems. When I looked at coffee vans, Cafe2U was the first name that I came up with,” said John.

As John became more invested in the purchasing process, he says he became more and more impressed with what Cafe2U had to offer.

“I was impressed by the professional and upfront manner of everyone I dealt with at Cafe2U. There was no push. I was given plenty of time to consider the option without feeling any pressure,” he said.

Previously working as a storeman and warehouse manager for a variety of businesses in the logistics sector, John finally came to a realisation that he was ready to take on a franchise opportunity.

“I felt I was overworked and underappreciated in my previous job,” John said, echoing the sentiments of many new franchise owners.

“I didn’t agree with the direction my job was taking me but felt powerless to do anything

about it. I realised I had no say in my work and it could be taken away from me very easily. After much discussion with my wife, we decided to investigate a new career path that enabled us to have full control over what we did,” he said.

while. “I’ve found I’m working similar hours to my previous roles plus some weekends.

However, I’m finding the work is more rewarding. I bounce out of bed early in the morning and now look forward to going to work.

John said it was a huge relief once he and his wife came to a decision, and added, “We were made aware of what territories were available before we decided to sign on, and this enabled us to conduct our own research into the territory that interested us most.”

“Not often have I had that feeling before,” he adds, “I love visiting my customers - who I know pretty well now – and putting a smile on their face and making their day.”

After signing his franchise agreement, the first task was to purchase their brand new Mercedes van that would be transformed into his mobile business.

“Cafe2U completed the entire fitout without me having to lift a finger. After that we were booked in for a week of training at the Cafe2U Training Academy in Sydney.

This took place a couple of weeks before we were due to launch in our chosen territory, Coburg,” he explained.

The training, which also included Barista training, provided John with the tools required to successfully run his business right from the outset, and also establish a customer base.

“Cafe2U also appoint a Franchise Development Manager (FDM) who oversees each franchisee, and is available anytime for advice or help if required. He also launches each new franchise by helping you set up your customer base,” he said.

John is quick to point out the hard work required to run a successful franchise, but it’s not hard to tell that he finds it worth-

20 Business Franchise Australia and New Zealand

In terms of support, Cafe2U assist their new franchisees with a term they call, the ‘Acceleration Package’. This stands out to John as an important feature of the system.

“During the launch phase of your business, the Acceleration Package guarantees you $500 a day of income for 2 weeks during the on-van training phase.

“It means that during the two weeks on-van training while you build your customer base with the help of the FDM, Cafe2U will subsidise your income to ensure you are banking at least $500 while they help you grow the business to this level,” he explained further.

Cafe2U also have a dedicated events coordinator who organises and collates all event enquiries throughout the country and forwards them to the appropriate franchisee.

“They make the process so easy for franchisees,” he said.

To find out more contact John Stanton: Phone: 1300 CAFE2U (223 328) Email: jstanton@cafe2u.com Web: www.cafe2u.com.au

e x pert a dv ice

Increasing the Success of your Franchise Business Being the owner of a franchise business can be very rewarding and satisfying. People buy businesses for a wide range of reasons including, the ability to be their own boss, opportunity to gain financial independence and the capacity to involve family members.

Becoming a franchise business owner is a serious undertaking as your life savings, house and financial future is put at risk.

Business failures are all too common and owners need to be proactive in increasing their opportunity for success.

Franchisees have a range of factors to consider when determining success. It would be rare to find a business which is

always successful in all areas. Even large multinationals makes mistakes. The secret is to identify the issues and develop an action plan to limit the impact, or even better still turn these issues into successes.

Financial Success • Before buying the business research the opportunity fully. Intending purchasers should spend at least one hour of investigation for each $1000 invested.

This includes researching the business,

22 Business Franchise Australia and New Zealand

its location, competition, the industry, speaking to other franchisees, accountants, lawyers, local council and other advisors.

In this way you can learn from the experience and mistakes of others which may reduce your risk. • Ensure you have a profitable business.

Make sure you are measuring the key aspects of your business. This will include sales numbers, gross profit margin, controllable costs (labour costs, wastage etc.), taxes and profit. Other aspects may

“Operating a well-run and profitable business can be one of the most rewarding things you will do.

Conversely making losses may cost you everything.”

Steve Seddon, Senior Manager Business Development, Westpac Banking Corporation.

include tracking customer numbers and average customer spends per transaction.

• Working capital is critical for any business - Working Capital is the money used to run the business, pay the staff, pay the rent etc. Franchisees need to ensure they also hold enough working capital to cover any start-up losses/costs and unforeseen circumstances.

• Compare profit and loss budgets (financial projections) to actual results at least monthly. Look at any variances (negative and positive) and develop a specific and measurable action plan. As an example, if your labour costs are higher than expected then go back to your rosters and review to reduce this cost. Make the hard decisions early before your business is put at risk.

• Keep your bank informed. Regularly meet with your bank, particularly if you have a problem. The earlier you seek advice the better.

• Limit the money you draw from the business. Don’t go and buy a new car or upgrade your house before you are certain the business can afford it. In the early stages of ownership businesses will need more money to fund expansion.

Withdrawing this money from the business will cause cash flow problems later.

• Don’t confuse profit and cash flow.

Profitable businesses have gone bankrupt due to an inability to manage their cash flow. Creditors, including the tax office etc., are able to apply to liquidate a business if they are not paid within their terms.

• Don’t take on too much debt. This applies equally to money borrowed from banks, family members or finance from the vendor (seller of the business). All borrowed money needs to be paid back with interest and this creates a risk for the business. Be careful about borrowing the maximum you are able as this will leave no room to come back if more working capital is needed.

• A business is not worth what you pay for it. It’s only worth what someone else will pay for it. Ensure you understand the franchises value and compare it to similar business both within the same system and outside. Look at remaining lease term and refurbishment requirements, particularly if the location is critical or the business would be expensive to move. All will impact the businesses resale value. At some point businesses will lose value as the remaining lease and franchise terms shorten as there is no guarantee of business continuation beyond this time.

Operational Success • Buy a business that suits your personality, skill and capital resources.

Before committing, spend some time speaking to your banker, accountant and other business advisors. Also spend some time with the franchisor and in the business itself.

• Follow the franchisors system.

Purchasing a franchise business means you agree to follow the franchisors guidelines and business methods. That said, if you have an idea for improvement

ensure you go through the correct channels and discuss with the franchisor. All good franchise systems encourage franchisee input and historically this has led to a wide range of business improvements.

• Plan for expansion early. If you are looking to open a second outlet ensure you have a comprehensive and robust business plan. How are you going to manage the both the new and existing businesses? Will you need to employ more staff to cover your absence? How will you ensure the original business maintains performance while you work on the new one?

• Work closely with your franchisor to ensure stock levels are optimum.

Overstocking or carrying obsolete stock will impact the business and its cash flow.

Controls need to be set and monitored especially in seasonal or fashion related industries.

• Maintain quality control and customer service. Make your employees accountable for their actions and reward those who exceed expectations. Be highly selective about who you employ as they are the face of your business. Invest in training and other support.

• Watch local competition. Your franchisor is not able to watch every aspect of your industry and it is important to keep close to your local competition. They may be independent businesses, new entrants or even another franchise group. Don’t wait for your sales to fall before acting. Be proactive.

Business Franchise Australia and New Zealand 23

e x pert a dv ice

Personal Success • Once you are settled in the businesses and it is working well ensure you are able to take some time away. Although you may need to work for more than 50 hours per week at the beginning business owners need to ensure they are able to take a break. If not, they risk burnout or other personal issues.

• Family support is essential to the success of any business. Without this issues can be magnified, particularly when the family’s assets are on the line. Before committing to a business ensure relevant family members understand both the risks and potential rewards. If they are not involved on a day to day basis ensure they are kept fully informed at all times.

Franchisor Success • Research the franchisor. Ensure both of you have similar business objectives

and values. You will have an ongoing relationship and need to understand each other’s rights and responsibilities.

• Look at the support provided by the franchisor including, ongoing field support, training, buying power, marketing, research and development etc.

• Is the franchisor in a sound financial position? Be wary of those who rely on sale of new franchises to pay their operating costs.

• Should the franchisor’s business fail, this will impact all franchisees, suppliers and customers. This will particularly be the case if the franchisor holds a head lease over the premises. Even a profitable franchisee may lose their business in these circumstances.

In summary, do your research before you purchase, don’t rush your decision, tackle any issues early and get advice. Monitor your business and outcomes and don’t be in too

24 Business Franchise Australia and New Zealand

much of a hurry to spend the profits.

Operating a well-run and profitable business can be one of the most rewarding things you will do. Conversely making losses may cost you everything.

Once you have everything under control you can enjoy your time as a franchisee.

Steve Seddon is a Senior Business Development Manager with Westpac.

He specialises in the franchise sector and holds a position on the Franchise Council of Australia’s Western Australian Committee. He holds a Bachelor of Commerce, Diploma in Franchising and is a qualified CPA. Contact Steve at: Phone: 08 9426 2204 Email: sseddon@westpac.com.au Web: www.westpac.com.au

With a range of brands that are second to none, at Bright Eyes we’re not simply selling eyewear; we’re selling an enhanced way of life.

Our brand portfolio includes:

Ranked #10 overall #5 franchise in Support #10 franchise in Lifestyle #3 franchise in Passion in the 2013 10ThousandFeet Survey (topfranchise.com.au) To join our-award winning team, contact us now!

BRIGHT EYES FRANCHISING PTY LTD “The Dock - Retailer House” Level 1 Unit 3 321 Kelvin Grove Road, Kelvin Grove QLD 4059 T: 1800 178 251 | F: 07 3056 3322 W: BRIGHTEYES.COM.AU | E: enquiries@brighteyes.com.au

...and many more

Australia’s housing shortage is forecast to be over 500,000 houses* by 2020.

Be a part of the solution with Australia’s most trusted builder – Coral Homes.

NOW FRANCHISING after 23 years of helping Australians into new homes

With Australia’s housing shortage set to continue to grow well into the future, now is a great time to apply your knowledge and skills gained from the housing industry to home building, and what better way to do it than with the winning business model a Coral Homes franchise can provide.

And the good news is you don’t have to have a builder’s licence of your own; you just have to have someone in your business who does.

Own a slice of an iconic Australian brand Expert assistance with franchise startup Leading systems, processes and training Extensive marketing support and product range Real bulk buying power from a major builder

130716-FRA-BFM

Take your first step to achieving success in the home building industry with Coral Homes - one of the most successful and trusted home builders in Australia.

*HIA “Housing to 2020” report

Coral Homes – unlock your potential in the home building industry.

P (07) 5585 2555 W coralhomes.com.au/franchises

Business Franchise Australia and New Zealand 25

e x pert a dv ice

Which kind of

Franchise is right for me?

Sounds like an easy question but finding the answer to this can be much harder than it may first appear. Going into business is one of the most important decisions most people will make in their lifetime, somewhere between buying a house and choosing their partner.

The cost of a franchise, including the franchise fee and set up costs can run into the hundreds of thousands or even millions of dollars. With so much at stake, it pays to do your homework. Investing time and patience in the beginning can save you frustration and money in the future.

There are literally hundreds of franchise opportunities to choose from in nearly every imaginable category you can think of. So before we all get too fixed or excited about what type of franchise we are interested in, it is probably important to understand what your budget is and then only look at franchises that fall within 60-70 per cent of this budget. Most people tend to overstretch themselves and don’t leave enough for working capital and some emergency funds should the business end up costing more than first anticipated due to a cost blow out or just because the business is taking longer than expected to breakeven.

Once you calculate the initial investment for the franchises you are interested in then you will be able to determine which one best fits your financial situation. If you don’t have the capital for opening a particular franchise then you should find one more suited to your financial situation.

When it comes to franchising you will be expected to pay a one time franchise

26 Business Franchise Australia and New Zealand

“The most lucrative franchise for anyone is the one they find enjoyable and won’t mind dedicating all their free time to making it a success.”

Kevin Bugeja, Managing Director, Franchise Selection.

fee simply to have the rights to open that franchise. This one time non-refundable fee ranges depending on the franchise you are interested in but is usually around $50,000.

There are also other fees associated with franchises like start-up expenses, training, insurance, inventory, royalties, and marketing fees. Different franchises have different fees so it is important to consider all the fees associated with each franchise you are interested in.

Once you have evaluated your liquidity, total investment, and personal business experience you are that much closer to finding the right franchise idea. Remember however, that while having the financing and experience down, there is still one very important element. What’s left you might be wondering? The answer is personal interest.

If you are not personally interested in selling muffins and coffee then you are going to have a tough time making your muffin franchise a success.

Personal interest before profit Next choose a franchise that you can be proud to own. When considering franchise ideas keep these three key points in mind; investment, experience, and personal interest, to make sure you find the best franchise for you.

I cannot emphasise this enough as most of the people we meet didn’t choose their careers but somehow fell into them. Most of these people left school and got a full time job and stayed in the industry that they have now become accustomed to and have attained knowledge and skills in. But if we think about this we made this decision after leaving school with no real life experience so it’s no wonder that people hate their jobs.

One of the greatest advantages you have when buying a franchise is the freedom to choose an industry that you are interested in. The next is to choose a franchise that you will be happy to tell your best friend or someone you haven’t seen in years what it is you do for a living and choose to do as your own business. If the business you are interested doesn’t pass this test then chances are you will begin to hate this choice pretty soon too.

Get rich quick schemes don’t work!

All franchises have the possibility of being lucrative and they also have the possibility of failing, most of the time the success of a franchise is achieved by the franchise owner and not just by the franchise model they purchased. Even in successful brands franchisees can fail. The type of franchise

you should pick is not one that has the supposed possibility of making you the most money because this simply won’t work.

In business, challenges arise just like in everyday life but how quickly the franchise owner is able to deal with these and overcome they can also make a difference to the results they achieve. The most lucrative franchise for anyone is the one they find enjoyable and won’t mind dedicating all their free time to making it a success.

Business Franchise Australia and New Zealand 27

e x pert a dv ice

Develop an exit plan before you start We all catch planes not expecting them to crash but each time we fly they do a safety demonstration and tell you to ‘Locate the nearest exit’. You wouldn’t get on an airplane unless you were reasonably sure you were going to make it safely but you also need a plan in case something goes wrong.

The same is true in business. No one likes to think that their new business might not succeed. You want things to work out. You also want to be able to survive in case they don’t.

Besides, there are many reasons for leaving a business other than business failure. You may wish to try something different or decide to retire and enjoy your fortunes.

Either way, you need to know what you are going to do with the business. Can you sell some parts of the business and keep others?

Can anyone run this business? Who might be interested in buying it? Finally, how can you recoup your investment? Focus on your entry strategy, but be aware of the exits.

Evaluate yourself The most important ingredient to being a successful franchisee is passion. Before settling on a franchise, really give some thought to your passions in life. In business, passion brings success, and that rule applies equally to franchisees and independent business people.

You must be able to follow the rules of the franchise. The franchisor is going to prescribe the colours you use, the design of your space, personnel procedures and perhaps salary ranges, products, and pricing.

If you are going into business to do things creatively and differently, franchising may not be the best fit.

Ask yourself the following questions: Am I willing to embrace someone else’s system without trying to do it my way or make it ‘better’?

Can I follow someone else’s lead and accept their advice and their criticism?

Am I willing to be part of a network of

28 Business Franchise Australia and New Zealand

franchisees, realising that there may be times when what is the best course for the network as a whole is not what is best for me?

If you can honestly answer “yes” to each of these questions, then you should continue to explore franchise opportunities.

Franchising is very similar to starting and operating a non-franchise business. There are pluses and minuses, and the prospective franchisee must do their homework. So do your due diligence, think hard about what you hope to get out of it, reflect upon your passions in life, consider the risks, and if at the end of your analysis it adds up and makes sense to you, then put your best foot forward and strive for success.

Kevin Bugeja, Managing Director Franchise Selection Phone: 1300 FRANCHISE (372 624) Email: kevin@franchiseselection.

com.au Web: www.franchiseselection.

com.au

If you are a franchisor, you’ll know that the success of your business relies heavily on the quality of your franchisees.

Finding the right person is an exacting task. We at LINK are specialists in franchise recruitment and resales, we know.

All NZ LINK offices are licensed REAA08

sales

uitment and Re

Franchise Recr

Managing the Sale of Your Business

Compiled by indust ry exper ts in busine ss sales, this guide provides a comprehensive overvi ew of all steps involved in selling a business, from groom through to settlem ing ent and handover.

The authority

LINK’s Franchise Division specialises in the sale of business format franchises. With a combination of the best franchisee selection skills and the best business broking skills, we are the only franchise recruitment agency of our kind. Our role is to present the information about your business in a very systematic and professional manner, and to target, test and recruit franchisees to match your profile. LINK recruits franchisees nationwide for selected franchisors that have well documented systems.

For your free pack or to discuss how LINK can help you in the development and growth of your franchise call LINK today.

esses

on selling busin

PM 8/22/2012 3:29:31

ent Franchise Recruitm

and Resales.indd

1

The authority on selling

businesses

MTSOYB Booklet.ind

d 1

The authority on selling businesses

8/17/2012 11:39:10 AM

0800 546 528 (NZ) linkbusiness.co.nz l 1300 763 668 (AUS) linkbusiness.com.au LINK have offices in New Zealand, Australia and South Africa (linkbusiness.co.za) Business Franchise Australia and New Zealand 29

Spotlight on Service : N ATIO N A L FR A NCHISE I NSUR A NCE B RO K ERS

Another successful year for NFIB said NFIB Executive Director Darryl Morris. “And our recent nomination for the Telstra Small Business Awards really is the icing on the cake.”

For those of you not familiar with NFIB, they offer a web-based insurance platform that has been designed exclusively for all kinds of franchised businesses around Australia. What’s central to NFIB’s success is two-fold: inexpensive insurance premiums regardless of the franchised business being insured, and the ease at which a franchise business can insure their business.

NFIB Executive Director Darryl Morris

Having recently been announced as a finalist in the Telstra Small Business Awards and after another year attracting more and more of Australia’s best known franchise businesses, National Franchise Insurance Brokers (NFIB) is fast becoming an insurance force to be reckoned with.

“Our goal has always been to penetrate the market with the most competitive insurance premiums for franchised businesses, and that goal is now beginning to be realised,”

“Four clicks of a computer mouse to get a franchised business covered is what we’ve always promised,” said Mr Morris. “And that’s precisely what we’ve delivered.”

What makes insuring with NFIB so easy is the fact that the product is designed to meet franchisor compliance requirements, is simple to arrange and very competitively priced.

An added benefit to the franchisor is that they are able to monitor the programme performance via custom dashboards. The management of certificates of currency for Landlords and Managing Agents is also fully automated.

Plus, there isn’t any paperwork or forms for the franchisee to complete, all information is collected on the web portal and there are no signatures required. It really is quite a simple and ingenious process.

“We spend a great deal of time and effort travelling around the country speaking to both franchisees and franchisors and their feedback is extremely positive,” said Mr Morris. “Our online system allows the franchisor to make sure that all of their individual franchisee’s businesses

30 Business Franchise Australia and New Zealand

have adequate insurance cover. From the franchisee’s perspective, our ability to ‘bulk buy’ insurance cover means their costs are significantly reduced when compared to what they may have paid for insurance in the past.”

The NFIB business model has been so successful that the group has now ventured abroad with the recent launch of Worldwide Franchise Insurance Brokers or WFIB. “We are currently in discussion with insurance brokers in a range of different locations including Central Europe, United Kingdom, USA and New Zealand,” Mr Morris said. “It goes without saying that the number of franchised businesses in these regions is significant so we’re very excited about the prospect of launching our online insurance platform globally.”

Mr Morris said that he strongly believes that the future of the business lies in his group’s ability to provide the most competitive and simplified solution available.

“We all hate getting insurance premium renewals. That’s a fact of life. People want the most adequate cover for the lowest possible price – it’s as simple as that. What we’ve focused on from the beginning and what is still central to everything we do today is to make sure our customers save money on their business insurance” Mr Morris said.

For more information about National Franchise Insurance Brokers please contact either Darryl Morris or Brad Dixon.

Phone: 1800 776 747 Email: info@MYNFIB.com.au Web: www.MYNFIB.com.au

TIME OUT! Take a couple of minutes out of your day to discover how you can save money on your franchise business insurance. �anks to our highly simplified online system together with our reduced premiums, we are fast becoming the preferred insurance provider for Australian franchised businesses.

To find out how you can insure your franchised business in just four clicks of a mouse, speak to Brad Dixon today on 1800 776 747 or email info@mynfib.com.au

MYNFIB.COM.AU National Franchise Insurance Brokers Pty Ltd is an authorised representative (ARLN 277977) of LTM Group Pty Ltd (AFSLN 245374)

NFI084BUSINESSFRANCHISE

Business Franchise Australia and New Zealand 31

e x pert adv ice

“The financial costs of this type of scam can be devastating, but the damage done to personal attitudes and business relationships is just as concerning.�

Dr Michael Schaper, Deputy Chairman, ACCC.

Franchisees at risk of false billing scams False billing, overpayment and email hacking — scams are hitting franchisees and small business owners in more ways than one.

New research conducted by Curtin University found that one in eight small businesses surveyed lost between $100 and $10,000. It also found that scams hit more than just the hip pocket with researchers estimating that businesses can spend up to 100 hours dealing with the consequences.

In releasing the findings, Dr Paull Weber said the natural tendencies of entrepreneurs means that some small business people think an offer is probably too good to miss

32 Business Franchise Australia and New Zealand

rather than the obvious too good to be true.

Franchise operators and small business owners are also busy people who often have fewer resources than large businesses, which in some cases can make them easy targets for scams.

False billing scams are a classic example.

The ACCC often hears from managers of small firms who have been tricked into paying for unwanted or unordered advertising, stationery or other services.

The scam involves receiving a subscription form disguised as an invoice or a late notice. The paperwork looks like every other bill in the pile, and the scammer hopes that it is processed without a second thought. In some cases non-payment might be followed up with aggressive legal threats.

In 2012, more than 2,500 people reported false billing scams to the ACCC, a welcome decrease of seven per cent on the previous

W I

CHECK OUT THE BEAUTIFUL FIGURES COMING OUT OF OUR NEW FRANCHISE.

230 clients in the first 6 days.

Up to 30 clients had to be turned away each day.

90% booked out until the end of month.

Over $15,000 turnover (at normal prices) in the first 6 days.

60% of clients rebooking.

When you put a proven business model into a great location the results can be stunning.

If you’re interested in a franchise check out our website www.brazilianbeauty.com.au Business Franchise Australia and New Zealand 33

e x pert adv ice

year. Likewise, the total reported losses fell to around $560,000, a drop of close to eight per cent. However, there’s a sting in the tail with false billing scams increasing their strike rate. The number of people reporting a loss increased to 19 per cent. The Curtin University study also found that small businesses lost up to 20 hours in dealing with false billing scams.

The ACCC is alive to false billing conduct and we have taken action where we can to protect small firms. In March, Adepto Publications Pty Ltd and two individuals were penalised a total of $750,000 by the Federal Court after they admitted to false and misleading representations. Adepto demanded small businesses pay for unwanted and unordered advertising in publications which it falsely claimed were affiliated with charities.

In a separate case, the ACCC took action against three publishing companies which contacted small businesses and told them that they had already paid for, or agreed to, advertising in one of the companies’ magazines, when in fact they had not. In September 2012, the Federal Court ordered the publishing companies to pay penalties totalling $400,000, and the companies’ director to pay $100,000 after they admitted to misleading and deceptive conduct, harassment and coercion, and unconscionable conduct.

Across the spectrum of police and consumer protection agencies there is agreement that scams are increasingly sophisticated. A recent scam reported to the ACCC is a case in point: a local business placed an order with its usual overseas supplier. The business later got an email requesting that payment be sent to an alternative account, as the regular one was subject to an audit.

The money was sent. The local business then received the shipment and the supplier said ‘where’s the payment?’ What appears to have happened is that a scammer has intervened in the emails, effectively hijacking the transaction, pocketing the money – and disappearing, beyond the reach of Australian authorities. The reported loss was a bit over half a million dollars.

The financial costs of this type of scam can be devastating, but the damage done to personal attitudes and business relationships is just as concerning. The Curtin University study discovered that those who have

recently lost money to a scam are losing trust in others. This finding is most disturbing, as strong relationships are an essential ingredient for franchising and running a business.

The ACCC’s scam activity report and the Curtin research report both reached the same conclusion: Scammers go fishing where there are fish to catch—that means online. In June this year, Roy Morgan Research declared that internet shopping is the new Australian norm. It reported that, for the first time, Australians who don’t buy online are in the minority.

Last year over 8,000 people reported online shopping and auction scams to the ACCC, an increase of 65 per cent with more than $4 million reported lost. While the increase is a sign of the times with more people buying and selling online, it also reflects the reality that scammers are shopping online too – for victims. The Curtin survey also found that small businesses transacting and communicating online reported the highest prevalence of scams.

The ACCC’s complaint data reveals that online sellers are often targeted by overpayment scams. Imagine trying to move an expensive item without luck for several months and then a generous offer comes along. The buyer happens to be based overseas on some sort of posting and is happy to purchase the product unseen but ‘accidently’ pays above and beyond the agreed amount. “No trouble, just a minor mix up” the buyer says, while asking that the excess amount be refunded by a money transfer. The seller doesn’t want to lose the sale so the refund is paid. However, in the meantime the buyer’s original cheque or payment bounces. The seller is left out of pocket. The refund sent is lost and not recoverable.

Fortunately, there are some encouraging signs in terms of small businesses guarding against scams. The Curtin survey provides a rare glimpse behind the scenes at the different fraud prevention measures small business owners are adopting. Simple steps like searching company names and checking for valid street addresses on Google maps are being used. Small businesses are also investing in experienced staff with the right level of industry knowledge to spot requests and processes which don’t fit in with normal business patterns.

34 Business Franchise Australia and New Zealand

Consistent with the ACCC’s advice, the survey also confirmed that many small businesses have moved to put in place account payment procedures to reduce the risk of falling victim. One small business suggested using a separate debit card with a small available balance for online purchases.

Other sage advice included having one person responsible for approving new expenditures and refusing advance payment requests. Prevention is always better than cure.

Dr Michael Schaper is Deputy Chairman of the Australian Competition and Consumer Commission.

The ACCC’s targeting scams report is available at www.accc.gov.au. For more information on how to protect yourself from scams, visit www.scamwatch.gov.au or follow us on twitter@scamwatch_gov.

The Curtin University small business scams report is available at http://business. curtin.edu.au/news/index.cfm/researchanalysis-scams-on-small-business-owners.

ACCC tips on guarding against scams • Keep your filing and accounting systems well organised. This will make it easier for you to detect bogus accounts and invoices.

• Never provide personal information and banking details to anybody you don’t know and trust.

• Make sure the business billing you is the one you normally deal with and ask for the name of the person you are speaking to and who they represent.

• Never give out any information about your business unless you know what that information will be used for.

• Do not agree to offers or deals straight away. Always ask for an offer in writing and consider getting independent advice if the deal involves money, time or a longterm commitment.

• Ensure that you have clear procedures for verifying, paying and managing accounts and invoices.

BIGGEST EXA IS AUSTRALIA’S

DIGITAL SOLUTIONS AGENCY

NOW FRANCHISING WHY BECOME AN EXA FRANCHISEE

With extensive expertise and more than a decade of experience in the digital industry, Exa has proven time and time again that it knows the path to success. The Exa brand is synonymous with trust, performance and results. As an Exa franchisee, you won’t be starting from scratch – from day one you will have all the resources needed to provide a world-class product for your clients.

High growth industry an industry that has grown exponentially since its inception and will keep growing.

World class technical support teams products backed with guarantees such as our 1,000% Service Level Agreement and $10,000 Hacker Insurance Guarantee.

24x7x365 support clients in good hands with real human tech support around the clock.

Start up support and benefits including full training, sales coaching and launch marketing.

Products for big business, small business customised solutions and wide range of products, meaning everyone’s a potential client.

Large franchise territories thousands of prospects exclusive to each franchisee.

High growth brand

Safety of a big company

more than a decade of industry experience to now become Australia’s biggest digital solutions agency.

secure your future and establish your own business with the support of Australia’s biggest digital solutions agency at your back.

Uncapped earnings potential high commission rates and no cap on the amount you can earn.

Low entry cost with initial bonus commissions to minimise cost and maximise profit.

For more information or to make an enquiry about this unique franchising opportunity, contact Biljana Stephens at biljana.stephens@exa.com.au or call us on (03) 9092 6699.

Clients Include:

www.exa.com.

Business Franchise Australia and New Zealand 35

e x pert adv ice

MULTIPLE FRANCHISES:

A train wreck waiting to happen?

People who succeed in business usually have one thing in common – unbridled ambition.

No doubt it is an admirable quality but one that often has to be tempered with a strong dose of realism if the business owner does not wish to fall on his own sword through quick expansion or development that cannot be sustained.

The same can be said for a successful franchisee keen to take on more than one franchise within the same type of business.

Melbourne-based chartered accountancy firm Liston Landers – a leading expert in the provision of detailed financial advice to prospective franchisees – claims that many business people wishing to expand from one to two or more franchises can be a train wreck waiting to happen.

“The management skills needed to run one franchise are tricky enough without trying to handle another business,” explained director Kieran Liston. “It is essential to find the right manager to replicate in the second franchise the systems that are working well in the first.”

Too often franchisees (who are still beholden to the franchisor for the basic methods used to run the business) wishing to take on one or more additional franchises within the group show a complete lack of leadership and are unable to delegate properly.

“They also are unable to put in place the systems and structures to cope with the complexities of growth in these situations and demonstrate an inability to shift as needed with market dynamics,” Mr Liston said.

Mr Liston’s comments are backed up by United States economist Verne Halbish’s book “Mastering the Rockefeller Habits” in

36 Business Franchise Australia and New Zealand

which he states that “of roughly 23 million firms in the US only four per cent get above $1 million in revenue, and only 0.4 per cent make it to $10 million”.

The same is true for franchise businesses in Australia. Most never get past an average annual turnover of $500,000 to $1 million and, of those franchisees who try taking on multiple franchises, 50 per cent revert back to one in a reasonably short time frame.

One of the basic problems is that the franchisee holder cannot be present in more than one business at any one time.

“He or she might have the flair needed to build one franchise and be able to intuitively react to customers to head off bushfires and ensure the business grows dramatically,” Mr Liston said.

“However, trying to impart that same flair and skill in a manager left to run one of the other franchises is at best difficult and, at worst, often impossible.”

“The management skills needed to run one franchise are tricky enough without trying to handle another business.”

Kieran Liston, Chief Operating Officer, Liston Landers.

Unless the person (or persons) chosen to run the other business (es) is equally committed to its growth, then only disaster can result from any expansion attempt.

needs to be around 20 per cent of turnover – a goal that is often difficult to attain once the franchisee holder takes on more than one franchise.”

So franchisee holders thinking about expanding their horizons need effective staff training across all their businesses to ensure successful outcomes. Convincing managers to employ the same initiatives the franchisee holder would use were he or she in attendance takes time, practise and patience.

It is at such times that franchisee holders thinking of expanding into multiple franchises could do worse than take a leaf out of the controlling franchisor’s book and appoint a manager who can be given responsibility for overall marketing and determining ways of increasing revenue while reducing production costs.

“However, with the right mechanisms in place there is no reason why this cannot lead to successful growth in all the franchises involved,” Mr Liston said.

Despite popular belief, the world of franchising is no picnic and what may appear attractive from the outside looking in can often turn sour once a franchisee takes over the reins of even one franchise business.

There are many candidates in the market for a franchise – not least managers from industries rapidly reducing their workforces through redundancies (the increasingly bleak future of the Australian automotive industry springs to mind) looking for another avenue of employment.

Many of these people are reluctant to again be caught in the firing line and figure a franchise (and the chance to be their own boss) is one method of avoiding such a fate.

People considering the move to a franchise need to understand that purchasing a franchise is buying a system on how to run a business. They also need to realise that this system is so well documented that people involved in the business know exactly what to do with its every aspect.

“Anyone thinking about going into a franchise must be prepared to feel comfortable with this level of control,” Mr Liston said. “They need to understand that, for any business to be successful, net profit

“This person should have sufficient expertise to ensure the right systems and structures are in place to cope with the complexities of growth involved with running multiple franchises,” Mr Liston said.

“That way, the franchisee holder has a good chance of avoiding the pitfalls others in his or her situation has faced in the past when trying to expand their business.”

Expanding a business venture into multiple franchises can occur on two fronts – buying an established business (run by another franchisee) or setting up greenfield or new sites.

Each has its own cost structure, and any owner of an already successful franchise should carefully consider these factors before making a final decision about branching out.

While a franchisee might be able to handle the ongoing costs associated with running one franchise, the sudden doubling or tripling of expenses involved could tip his or her business over the edge in a fairly short period – particularly if profit levels of the second or third franchise don’t match expectations.

For example, a fast food outlet might cost $60,000 for a (usually) 10-year franchise agreement plus monthly royalties to cover marketing and other administration costs.

Because of the need to fit out new premises with plant and equipment, a greenfield site (including franchise fee) might involve an

outlay of $250,000 to $300,000.

“Franchisee holders thinking about expanding their business to take on two or three franchises must ensure they have a sufficiently versatile business model that will enable them to absorb these costs until such time as the new businesses begin to make adequate profits,” Mr Liston said.

And, of course, the more franchises they take on, the greater the number of overall staff with which they have to deal.

Because of the nature of services provided by franchise businesses, many are staffed by young casual workers who probably are only looking for pocket money and do not see the work as a career path.

Motivating young staff under these circumstances is difficult enough in one franchise without worrying about incentives for two or three.

Appointing caring, understanding managers to ensure staff motivation and spirits are kept high at all times is particularly important in these circumstances. It hopefully means ongoing customer satisfaction – a vital ingredient for a profitable business - and might be the essential difference between success and failure in a multiple franchise enterprise.

Kieran Liston has 40+ years specialist knowledge in the area of valuing franchises and provides consulting services to existing and potential franchisees.

Chartered Accounting Firm, Liston Landers strives to be recognised by both their clients and the business community as a market leader in the provision of ethical, innovative and solution oriented financial and accounting services.

Phone: 03 9509 0366 Email: info@listonlanders.com.au Web: www.listonlanders.com.au

Business Franchise Australia and New Zealand 37

e x pert adv ice

Create Value in your Retail Experience

“

Price is what you pay, value is

”

what you get .

Warren Buffet

Are we still hanging on to our central mission as retailers; our stores are simply there to “sell stuff”?

As consumers change their shopping habits and seek experiences and solutions, this central mission is fast becoming oldfashioned and an ‘unfit’ business practise.

It’s time to let go of this dominant selling mission in your physical store space and start thinking about what value you can create for your consumers. I recently read an article in the Harvard Business Review, featuring Ron Johnson ex Senior VP Retail of Apple and now also ex CEO of J.C Penney, commenting on the existence of the physical store space Johnson remarks, “It’s got to help people enrich their lives. If the store fulfils a specific product need, it’s not creating new types of value for the consumer. It’s transacting.”

38 Business Franchise Australia and New Zealand

“The greatest asset that a sales person can have is to be a strong active listener, confident with the right degree of humility and possess a genuine interest in the customer.”

Brian Walker, Founder and CEO. Retail Doctor Group.

Business ‘fitness’ in the physical store space does indeed require you to have a valuecreation mind-set and this will most likely mean re-imagining your entire thinking towards your store space. Like a majority of retailers have done in the past, you have most likely started with the products you sell rather than your customer. Now, to be a ‘fitter’ retailer, you need to look at how you can holistically create value throughout your customers’ entire shopping mission in your retail environment.

Store staff must join your mission to create value As a retail consultant, I often come across retailer confusion between “selling” and “customer service”. The greatest asset that a sales person can have is to be a strong active listener, confident with the right degree of humility and possess a genuine interest in the customer by being completely solutionfocussed thus adding value to the shopping experience.

Operationally ‘fit’ retailers have a clear vision of the team they need to bring their “value creation proposition” to life. They then engage them with this proposition before inducting, training and motivating them to carry this through in-store and our research tells us that engaged and motivated staff deliver on average 20 per cent higher sales and margin improvement to the ‘fitness’ of a retail business. ‘Fit’ retailers also have

fully integrated and complete Effective People™ frameworks, which allow them to maximise sales conversions and therefore dollars without any capital investment or increase in overheads.

The brand experience in-store Retailers with value-creation mindsets are true challenger brands and provide customers with an experience that takes them way beyond the “seen it all before” feeling customers are currently experiencing in so many retail stores. Indeed, consumers face a myriad of multi-channel transactional-based shopping choices right now. If you give them just the opportunity to browse products in your store with the flick of a hand, when they can browse your same inventory online with the flick of a mouse, you haven’t yet initiated your value-creation mindset. Rather, you need to create value across all branded touch points to give customers a single omnichannel experience with your brand.

Australian Geographic Retail is one example of an Australian retailer who has re-imagined the brand in-store. Its ability to combine “an experience” with the navigation and merchandising to solve customers’ problems makes it a leading retailer in its category.

As Brent Dowsett, Managing Director of Australian Geographic Retail commented: “Our entire Australian Geographic Retail business is based around value creation for our customers and we start by providing

them with an incredible and unique multisensory experience when they walk into the stores. We focus on trying to find products they can’t buy anywhere else and make sure that everything in the store has a purpose from fun to education. Every person walking through our door has a ‘problem’ they are looking to solve whether it’s a gift for any age group; a purchase for themselves or an unusual piece for their homes. Our job with value creation is to match our products to their needs and solve the problem for them.

We’ll show them how products work and let them test and play with them. We also highly value their feedback as we want them to return again and again.”

Predicting and anticipating your customer needs The ability to re-think your entire brand experience in-store comes from understanding what motivates your customers. As Ron Johnson so succinctly put it, “You can’t follow the customer. You’ve got to lead your customers – anticipate their needs and meet those needs, even before they know what they want”. Predicting and anticipating their needs requires you to have a deep understanding of not only who your customers are; but also what motivates them and how they interact with your brand.

The RDG Australian Retail Consumer Study 2012, undertaken by RDG Insights in conjunction with i-Link Research, revealed

Business Franchise Australia and New Zealand 39

e x pert adv ice

powerful insights into what really drives the Australian consumer to engage with a retail brand as well as how they purchase. Using predetermined neuro-scientific personality categories, the subconscious drivers behind the retail behaviour of over 1,300 Australian consumers was researched.

The results clearly proved the correlation between personality type and purchasing behaviour providing evidence that retailers can now take a more predictive approach thus leading consumers and meeting their needs.

Creating new types of value is all about solving your customers’ problems and having the imagination to provide an experience beyond the products you sell. It is a powerful tool, therefore, when you understand how to communicate with your customers at the subconscious level including such detail as which visual merchandising techniques will drive them to engage with your products in-store and then purchase them. Indeed, understanding your customers in such depth will enable you to re-imagine your entire store space and cater to such details as multisensory enhancements, colours and textures, store design and traffic flow.

You will be able to predict how your customers pre-research and buy across the omni-channel mix as well as their expectations for customer service before, during and after their visit. Furthermore, you will understand how and where you should be communicating with your customers outside of your store environment to repeatedly drive them in.

Understanding the omni-channel retail environment If you’ve integrated your offer into an omnichannel retail environment, it’s important to become a “fitter” business by recognising the different roles of your physical (store) and virtual (mobile and internet) store spaces and integrate them in the right way to create value. For example, your e-commerce website is the perfect retail space to rely on a transactional-based strategy and initiate price competition as well as promoting convenience.

However, this is not a value-creation mindset – rather it fulfils a need for this particular environment. There is a certain public perception that there’s been a dramatic shift in purchase behaviour from physical to virtual. This is in fact quite the opposite.

Harvard reported in December that only about 9 per cent of US retail sales are online today. What is growing, however, is the

40 Business Franchise Australia and New Zealand

physical retailers’ extension into the online space. Physical stores remain the main point of contact with customers and as Ron Johnson so rightly summed it up, “The only way to really build a relationship is face-to face. That’s human nature. That gets at the essence of what retail stores have to be about”.

By taking a look at your entire brand from the value-creation point of view, you have the ability to turn your stores into rich destinations filled with customer-solutions focussed experiences, thus becoming a ‘fitter’ and more profitable retailer.

Happy ‘Fit’ Retailing Brian Walker is Founder and CEO of Retail Doctor Group. Brian specialises in the implementation of insights driven strategy to build business fitness.

Phone: 02 9460 2882 Email: brian@retaildoctor.com.au Web: www.retaildoctor.com.au

PROFILE : T el ech o ice

TeleChoice

Challenges the Telco Industry There’s an old story about a little boy David and a giant gladiator called Goliath. The story says that Goliath was big, fearsome and arrogant; he challenged and defeated all that he came across until no one dared to challenge him. Then little David came along to take the challenge and he outsmarted and defeated Goliath.

• Do major carriers automatically reduce a customer’s monthly plan at the end of their contract to remove the phone payment component? Never! But TeleChoice will.

The mobile phone retailing in Australia appears similar and is dominated by the three major carriers – until now. Because now, TeleChoice has begun to challenge the status quo! For example:

When you apply to become part of the TeleChoice family, they want to set you up to win. They start with a thorough process to ensure that the opportunity presented matches your goals and expectations. They follow that with four weeks comprehensive training and then continue with ongoing updates, training and follow ups to ensure that their dealers are knowledgeable in all the latest product releases, pricing changes, technology updates.

• Can customers upgrade their mobile phone before the end of their contract without paying hefty penalties? The big carriers will not allow it. But it can be done with TeleChoice.

• Can customers reduce their Plan payments for their mobile phone before the end of their contract? The big carriers will not allow it, but it can be done with TeleChoice.

• Can customers get a home telephony/ broadband connected for under $2,000 minimum total commitment? With the big guys, no! But, at TeleChoice the minimum commitment is only $319.

These are serious challenges to the industry and the major providers and TeleChoice is leading the path. A typical TeleChoice customer can save between $50 - $100 per month on TeleChoice’ mobile, internet and home telephony plans. That is why TeleChoice is “The People’s Choice”, and that is why this is an opportune time to become a TeleChoice Licensed Store Operator.

Setting you up to win

The continuity of training is supported by their Learning Management System. It is software that disseminates all new product information and training material to their

42 Business Franchise Australia and New Zealand

dealerships and all their staff. They also have a dedicated team at Head Office to support their dealers in every way to cover the operational side of the business. They are a successful network because they have so many successful network partners.

The best choice TeleChoice has so much to offer. In addition to the level of training and support, TeleChoice also offers: • great buying power with key suppliers • excellent capital growth potential • high cash flow and earning potential • great brand recognition • an opportunity to own your own business • fantastic training and support Given this level of dedication to their network of dealers, it is no surprise that TeleChoice is the first choice for the entrepreneurial Australians who are looking to be independent business owners.

Are you like David, confident and ready to take on big challenges like Goliath? If you’ve got what it takes; we would like you to become part of TeleChoice’ network of successful business owners.

Phone: 03 8699 2555 Email: dealership@telechoice.com Web: www.telechoice.com.au/franchise

Business Franchise Australia and New Zealand 43

e x pert adv ice

FOUR STEPS TO HANDLING COMPLAINTS The main lesson that I have learnt in my time in the franchising world is that the most important part of success for the enterprise is looking after the customer.

The best measure of success in a business is to count your customers, record the Customer Count (CC) daily/weekly/monthly; if you are you are seeing growth in CC your franchise will thrive. It is a sound business fundamental that places successful businesses in a dominant market position.

Whilst many will focus on attracting new customers not enough resources are given to retaining and increasing the frequency of visitation of existing customers.

Research has shown that it costs six to seven times more to find a new customer than it does to retain an existing customer.

Retailers are always focussed on their marketing budget which is primarily devoted to recruiting new customers. Insufficient resources are allocated to recognising, rewarding and retaining existing customers.

Many people find it more exciting to focus on recruiting new customers than looking after the acres of diamonds you have by selling more to your existing customer base.

44 Business Franchise Australia and New Zealand

“Customer Relationship Management (CRM) is the most important and effective marketing tool available to business owners. It is the cheapest and easiest to execute, but is often neglected or ignored by most businesses.”

Michael Sherlock, ex CEO Brumby’s Bakeries, and Co-Author Jumpshift! (business growth strategy book).

Customer Relationship Management Customer Relationship Management (CRM) is the most important and effective marketing tool available to business owners. It is the cheapest and easiest to execute, but is often neglected or ignored by most businesses.

The principle of CRM is based on the fact that the best customer you will ever get is the one you already have. A satisfied customer becomes an advocate for the brand, is brand loyal, and comes back time and time again for repeat purchases. They tell their families and friends about their experience, and wordof-mouth advertising is the most effective and strongest form of marketing. On average, people change their residence every five years, so while they are in a particular neighbourhood, they can be expected to shop locally over this period. Once a customer comes to your franchise and is satisfied, they will return time and time again, making it a habit, and part of their routine.

One of the most neglected aspects of CRM is complaint handling. If a customer comes into your business and complains, it’s important to recognise that 97 per cent will have a genuine complaint, and only the remaining three per cent will be trying to cheat you. Accept those odds, and don’t treat all complainants as if they are trying to scam you. It often takes a lot of courage and conviction for a customer to make a complaint. If a complaint is not handled properly, you can not only lose that customer, but also numerous future customers, due to negative word-of-mouth.

One dissatisfied customer can easily passionately tell at least ten people about their negative experience, I am sure you have experienced this situation where you tell and retell your story of appalling service

and what happened when you complained.

However if mistakes are handled properly, they present an opportunity to build customer loyalty, as you are not only likely to retain the complaining customer, but they will likely become even more loyal to your brand, and become an advocate for your bakery and brand. So, make it easier for your customers to complain.

2. Apologise

Complaint handling

4. Add something extra

Below is a suggested simple four step way to handle customer complaints:

Put yourself in their shoes, and apologise for their inconvenience. Defuse the bomb!

3. Put things right Trust customers, and assume it is a genuine complaint. Apply a returns policy, which should be a full refund or exchange for something of similar value.

Take the opportunity to make up for the fact that they have been disappointed and inconvenienced. Give them a gift certificate or additional product where possible. Turn an unhappy customer into a raving fan again.

So if franchisees want to survive in the current headwind of increased competition from online sales, price discounting, social media, and supermarkets with their advantage of convenience and price, they need to apply basic business principles of great customer service by looking after those who have made the effort of coming to their store.

Don’t miss the opportunity to handle a complaint well, ensure the customer does not go away empty handed and leaves your franchise with a satisfied smile on their face.

1. Acknowledge and listen Most people handle complaints badly because they take it personally, become defensive and make excuses. When you receive a complaint, you should make things better, not worse. The first thing a customer will want is for you to acknowledge that you have let them down, so listen to their story without interruption.

Michael Sherlock, ex CEO of Brumby’s Bakeries, is a Consultant and Mentor to franchisors and is co-author business growth strategy book Jumpshift! - a manual to put your business into Hyperdrive!

Contact Michael at: Phone: 0412 747 111 Email: michael@michaelsherlock.com.au Web: www.jumpshift.com.au

Business Franchise Australia and New Zealand 45

PROFILE fr anch ise : V.I.P. counci austlrof al i aaust r al i a

“There’s nothing like working for yourself” always trying to make more and more money for the bank. Nobody seemed to really care about people.

M

ark Tesseyman loves the outdoors. He loves camping, bush walking and venturing out in his four wheel drive. What’s more, he loves his job.

However, it hasn’t always been this way.

Mark used to work in a bank, “I had a good job at a bank but I was only ever a number.

I really didn’t like the culture there –

“Ironically it was an ex-colleague who was making a deposit at the bank who told me about V.I.P. He owned a V.I.P. lawns and gardens franchise, we got talking, I did my research and made the switch. At the time I remember him saying that it was the best decision he ever made - ten years down the line I’m saying the very same to people I know!” explained Mark.

Mark left the world of banking behind and it wasn’t long until he had doubled his previous income. But, for Mark, it wasn’t about the money, “The money is great but it was never my motivation. I worked at the bank for around six years. There was a lot of pressure with targets and I didn’t really like being stuck behind a desk all day.

46 Business Franchise Australia and New Zealand

“Now I get to do my own thing, I’m the boss and if I want to finish work early one day or take some time off I do. I love the outdoors and I love my job,” continued Mark.

“There’s nothing like working for yourself – it’s fantastic. Of course running your own business can be tough, but that’s why I joined V.I.P. “I knew the support systems were in place and there was plenty of work out there. I even have to turn down work which always feels a bit strange, but then again I have to make time for me,” concluded Mark, just as he was about to head off on yet another camping trip!

Contact the V.I.P. team: Phone: 13 26 13 Web: www.vipfranchisesales.com.au

Business Franchise Australia and New Zealand 47

e x pert adv ice

Why mediation works to resolve franchise disputes Mediation to resolve franchise disputes has been a core component of the Franchising Code of Conduct in Australia since the Code’s introduction on July 1, 1998.

Unlike the drawn-out and expensive process of going to court, where a decision will be made that someone is “right” and someone else is “wrong”, the process of mediation doesn’t result in a black and white outcome where one party wins and the other party loses, but instead, results in an outcome that both parties can live with.

At the time such outcomes are reached, the mediator summarises the outcome in a written agreement that both parties agree to adhere to, and sign accordingly.

Criticism of mediation generally falls into two categories. The first is that the cost of mediation is excessive, particularly if one of the participants is financially distressed and struggling to make ends meet. The second criticism is that the outcome could have been markedly different if the issue had gone to court, and therefore the mediation has sold one or the other party short on the outcome they might otherwise have been able to achieve.

There may be an element of truth to both criticisms, but what must be taken into

48 Business Franchise Australia and New Zealand

“Litigation is about enforcing legal rights.

Mediation is about meeting needs.”

Jason Gehrke, Director, Franchise Advisory Centre.

account is that mediation brings an issue to a head in a much shorter timeframe than the drawn-out process of going to court, and in doing so, saves the disputing parties even more money in legal fees, the untold stress of preparing for a major legal battle, and the opportunity cost of what else could be done with the time and energy otherwise expended on litigation.

The issue of the cost of mediation is generally felt more by franchisees than franchisors in franchise disputes. If a franchisee’s business is underperforming, or has closed, and they are financially stressed, then any amount spent on dispute resolution – mediation nor otherwise – will be potentially viewed as unaffordable.

The Office of the Franchising Mediation Adviser (OFMA), a body funded by the Australian government in parallel with the introduction of the Franchising Code of Conduct on 1 July 1998, indicates on its website that the average cost of mediation is $1,200 per participant.

Compared to the tens of thousands (or even sometimes hundreds of thousands) of dollars that a full-blown litigation may cost, mediation is dirt cheap.

The problem with claims that mediation is unaffordable is that those who are financially-distressed because of an underperforming business have left it too late before attempting mediation.

After working in the franchise and small business sector for many years, and advising hundreds of businesses, I have consistently noticed that business owners don’t want to hear bad news, and will frequently reject any suggestion that their business is in trouble until it is too late. By then of course, money is tight, and any cost that isn’t directly related to surviving on a day-to-day basis seems excessive, hence the criticism of the cost of mediation.

The second criticism of mediation – that the outcome could well be different if the matter went to court – is more than likely true.

However what needs to be understood is that when two parties go to court, someone wins, and someone loses. It’s the ultimate zero sum game (+1-1=0).

Litigation is about enforcing legal rights.

Mediation is about meeting needs.

Mediations can result in both parties meeting their respective needs by placing these above legal rights. Mediations bring the disputing parties together in a spirit of compromise that means they may trade off some perceived legal entitlement (and often this can be highly subjective) in return from a concession from the other party.

The job of the mediator is not to direct the parties to a predetermined outcome, but to help the parties understand each other’s grievances, and then to facilitate discussion and compromise which results in agreement.

This process can generate amazingly creative solutions to both simple and complex problems that would be otherwise impossible to achieve via litigation.

So yes, the outcomes of mediation are different to those achieved by the courts.

Instead of one party winning and the other losing, both parties can claim a partial victory (or be thankful they have reduced their losses) with the outcome they reach at mediation.

Occasionally legal practitioners, who are trained to seek outcomes by adversarial means, criticise mediation for not achieving the same outcome as a win in court.

However, there is never a guarantee of a win in court, litigation isn’t cheap, and the time and resources required to pursue (or defend) a litigation can exhaust a person long before the matter is ever heard.

Aside from this, backlogged courts are often

unwilling to hear matters unless the parties have made a serious attempt at mediating beforehand. So if courts are recognising the value of mediation, so too should potential litigants and their advisers.

The Office of the Franchising Mediation Advisor reports that more than four out of five (ie. greater than 80 per cent) of mediations result in an agreement being reached between the parties. This is an outstanding success rate, and when compared to the 50/50 chance of a court decision going one way or the other, represents much safer odds for anyone concerned about staking their future on a court decision.

Mediation may never solve every franchise or small business dispute, but it will give both parties to a dispute the best possible chance of resolving it more quickly and at lower cost and less stress than litigation. Aside from these obvious benefits, mediation also creates a safe environment for franchisors and franchisees to be heard by one another, thus creating an opportunity for relationships to be preserved and even enhanced by the process in a way that litigation can never achieve.

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

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

Contact Jason at: Phone: 07 3716 0400 Email: jason@franchiseadvice.com.au Web: www.franchiseadvice.com.au

Business Franchise Australia and New Zealand 49

Capital required - 220K - 410K Capital required - 170K Number of outlets - 13+ Number of outlets - 50+ Opportunities available nationally exist - nationally Capital required - $220K – $410K Opportunities Capital required - $250K - $400K Number of outlets - 25 Opportunities available - Nationally

Capital required - 400K - 600K Number of outlets - 80+ Opportunities available - nationally/NZ

visual identity and signage styleguide

Capital required - 400K - 600K Number of outlets - 25+ Opportunities available - nationally

Number of outlets - 5 Opportunities available - Nationally

Capital Required - 280K - 350K Number of outlets - 1 Opportunities available - nationally

Capital required - $400K + Number of outlets - 10+ Opportunities available - Nationally

Capital required - 47K Number of vehicles - 50 Opportunities available - nationally

Capital required - $300K - $650K Number of outlets - 165 Opportunities available - Nationally

Capital required - 300K - 350K Number of outlets - 6000+ worldwide Opportunities available - nationally

Capital required - 300K - 450K Number of outlets - 6 Opportunities available - nationally

Capital required - $400K + Number of stores - 25 Available opportunities – Nationally

Capital required - 150K - 350K Number of outlets - 650 worldwide Opportunities available - nationally

HAND CARWASH

Capital required - $250K + Number of outlets - 45+ Opportunities available NSW, VIC, TAS, W.A. & S.A.

Capital required - $300K + Number of outlets - 1 Opportunities available - Nationally

Capital required - 70K+Australia and New Zealand Capital Required - 250K 50 Business Franchise Number of outlets - 4 Opportunities available - nationally

Number of outlets - 100+ internationally Opportunities available - nationally

Capital required - $120K + Number of outlets - 5 Opportunities available - NSW, VIC & QLD

Capital required - from 90K Number of outlets - 12+ Opportunities available - nationally

WW PHO

Capital required - $400K – $600K Number of outlets - 25+ Opportunities available - Nationally

Capital required - $300K – $350K Number of outlets - 6000+ worldwide Opportunities available - Nationally

Capital required - $400K + Number of outlets - 6 Opportunities available - Nationally

Capital required - $250K + Number of outlets - 8 Opportunities available - Nationally (Except WA)

Capital required - $350K - 650K Number of Outlets - 47 Opportunities - Nationally

Capital Required - $350K + Number of outlets - 4 Opportunities available - Sydney

Connecting people to opportunities Choose from Australia’s best selection WWW.FRANCHISESELECTION.COM.AU Visit www.franchiseselection.com.au or PHONE 1300 FRANCHISE (1300FRANCHISE 372 624) Phone 1300 (1300 372 624) Business Franchise Australia and New Zealand 51

UA.MOC.NOITCELESESIHCNA RF.W W W

LEA

Spotlight on Service : ewor ks

eWorks’ SOLUTION FOR FRANCHISORS CLOUD BASED e-LEARNING In a franchise business model, staff training underpins an effective franchise system. This is where eWorks’ cloudbased solution offers many benefits. eWorks have been refining their e-learning offering since 1998 and provide the perfect blend of cost-effective, tailored solutions that directly fulfils the unique training needs of franchisors.

One of their signature services, ‘TrainingVC’, is a cloud-based e-learning solution which is currently used by over 180 organisations to deliver reliable and cost-effective online training to any location across Australia.

Unlike most learning management systems, TrainingVC offers a combination of training delivery and management applications in one, user-friendly online environment which

can be tailored to the needs of a franchisor – a complete e-learning solution.

In other words, TrainingVC is a learning management system and content management system, providing the franchisor with a ready-made selection of content and the functionality to update the content in a single location while publishing to multiple locations. This means that franchisors can easliy manage their training materials so that training is consistently delivered regardless of who is taking it and where is happens.

Executive Director, Rodney Spark, who with over 25 years of VET sector experience also Chair’s the E-standards for Training Expert Group (EEG) and is the Victorian representative on the VET sector’s Flexible Learning Advisory Group (FLAG), can appreciate firsthand the challenges associated with maintaining competent and well trained staff in a franchise environment.

“Because ensuring staff are well trained and competent is important to the franchisor, assessment needs to be really thorough. At eWorks, staff are well assessed so that you can ensure they are competent. We know that badly trained staff reflects in the service and can be detrimental to the brand,” he said.

One of the key areas where eWorks differentiates their expertise is in the hosted solution Training VC provides. It offers an alternative to the traditional classroom and in-house models that can be cost prohibitive and difficult logistically.

“Franchisors also need good record keeping across the organisation to make sure staff are being properly trained. eWorks’ system provides an overview and record of each staff members’ development,” Rodney said.

With such a tailored solution on offer, franchisors may consider such a solution to be expensive. Rodney is quick to point

52 Business Franchise Australia and New Zealand

out, “e-learning reduces the cost burden, so that not only are the costs predictable, it also eliminates the financial burden of travelling and accommodation, and it can be available on demand where candidates are geographically spread.”

The platform interface can be branded with the franchisor’s corporate identity, appearing to the end user as an internal e-learning system, even though it is hosted in the ‘cloud’.

“Ensuring that franchisee’s maintain a high level of workplace training for their staff is one of the leading challenges franchisor’s face in ensuring a high quality of service, that also aligns with their brand. This is where eWorks excel and can offer a service completely tailored and designed for the franchisor where members requiring training can be located in disparate regions and time zones,” he said.

$ C

M

Y

CM

MY

CY

CMY

K

“, DI /H

How Does it Work? eWorks host the delivery platform and provide the expertise to keep it running 24 hours a day.

There is an initial set-up fee and a small charge per training participant. The registration fee covers the establishment of your own TrainingVC environment which includes your organisation’s branding.

TrainingVC users also have access to a library of materials that can be used to supplement their training or as standalone resources.

For an obligation-free consultation contact: Phone: 1800 396 757 Email: enquiries@eworks.edu.au Web: www.eworks.edu.au Twitter: twitter.com/eworkstweets

W

~ ~ ~ ~ ~ ~ ~ ~ ~

LEARNING MANAGEMENT

READY-MADE CONTENT

CUSTOM CONTENT

CONSULTANCY

TRAINING

trainingvc training virtual campus

$ FRPSOHWH H OHDUQLQJ GHOLYHU\ V\VWHP C

M

Y

CM

MY

CY

MY

K

“, FDQ UHFRPPHQG H:RUNV WR DQ\RQH VHHNLQJ DQ DIIRUGDEOH ZHOO VXSSRUWHG DQG ZHOO PDLQtained /HDUQLQJ 0DQDJHPHQW 6\VWHP VROXWLRQ } $XVWUDOLDQ 6HFXULW\ $FDGHP\

Why is TrainingVC the e-learning solution for your organisation? ~ 3RZHUHG E\ 0RRGOH WKH ZRUOG V PRVW SRSXODU /06 ~ 0RUH WKDQ DQ /06 x PHHWV DOO \RXU H OHDUQLQJ QHHGV ~ ,QWHUIDFH FXVWRPLVHG DQG EUDQGHG DV \RXU RZQ ~ /LYH FODVVURRPV DQG UHDG\ PDGH FRQWHQW ~ (DV\ LQWHJUDWLRQ ZLWK \RXU VWXGHQW PDQDJHPHQW V\VWHP ~ /RZ DQG SUHGLFWDEOH FRVW ~ 5HOLDEOH DQG VFDODEOH x 7UDLQLQJ9& LV IXOO\ KRVWHG ~ ([SHUW VXSSRUW ~ 7UDLQLQJ DQG FRQVXOWDWLRQ VHUYLFHV LQFOXGHG

contact us enquiries@ eworks.edu.au

1800 396 757 eworks.edu.au

Business Franchise Australia and New Zealand 53

e x pert adv ice

UNDERSTANDING YOUR TEAM AND HOW IT WORKS

Becoming the owner of a new franchise business, or taking over an established franchise business, can be a very stressful time for everyone involved. You might need to employ and train an entire team of new staff members, or you might ‘inherit’ an existing team.

If taking over an existing business, change of ownership can cause anxiety and unrest.

Therefore, it’s important that the new franchisee is sensitive to the landscape.

Similarly, putting together a new team, which involves the process of selecting and training the right candidates, can be extremely stressful for all concerned.

Because of the way many people run businesses these days, they sometimes forget people need to be nurtured and led.

As Director of my own small company, which specialises in Human Resources and training (amongst many others,) I am passionate about understanding how my team works together – after all, my business depends on it!

54 Business Franchise Australia and New Zealand

All staff members are profiled using TMP (Team Management Profiling) and their work place choices are addressed accordingly to ensure they are always inspired and engaged.

Personal Development plans for all team members are continually being developed and reviewed.

We have developed an energetic workplace culture and our staff reflects that enthusiasm whilst maintaining our high ethics and integrity and strong client focus.

My personal philosophy is that engaged, empowered, and satisfied people deliver results.

Creating a ‘brand new’ team If you are embarking on a new franchise

“Like everything in life, you will only get out of your business and your staff members what you are prepared to put in.”

Corina Vucic, Director, FC Business Solutions.

business and need to employ a brand new team, it would be expected that you will be supported and trained in this by your franchisor, as an extremely important element of the franchisee induction program.

The franchisee induction program should include leadership and management modules for a new business owner.

If the new team members you have carefully selected based on guidelines and criteria provided to you by your franchisor, and if they are well presented and trained, this will result in greater customer satisfaction and subsequently greater sales.

Individual profiling is often the first step that should be taken by both managers and their staff to understand people’s natural preferences of what they like to do in the work place, and help them understand the way they like to approach work.

Profiling. How does it work?

TMP identifies and works on several important factors: • Individuals’ profiles and work preferences.

• Team dynamics and group preferences.

• Future individual and group strategies for work efficiency and effectiveness.

This approach focuses on identifying and understanding key work elements that prove to be reliable and valid in explaining why some individuals, teams, and organisations perform work effectively and achieve their objectives, while others fail.

recommendations results in increased performance of staff, which increases the success of the franchise system.

As an experienced franchise industry trainer and facilitator I have delivered TMP to hundreds of franchise industry employers and employees.

Basically, a TMP profile will analyse a person’s work place preferences to see if they have tendencies towards particular personality traits and how different types of people can work well together.

TMP could provide the answers you are seeking to understand how you and your team members can work together more effectively and efficiently.

TMP profiles can be carried out on potential new team members as part of the recruitment process to see how this individual will fit in with your company, and is also useful for existing teams who may be underperforming to identify where the problems could lie.

‘Inheriting’ an existing team If you are taking over an established business with existing staff members, the following tips are important: 1. Perception is reality – don’t ask your staff to do anything you aren’t prepared to do yourself. You have just bought the business and if you want to show you’re serious about growing it prove that you are not afraid to get your hands dirty and learn from them.

I believe a quality franchise system should be continually looking at different ways for franchisees and staff to increase their performance in a measurable way.

2. You must be seen to lead – you want employees to become more cost conscious, more profit focussed, more customer service oriented and more business savvy.

The implementation of TMP

3. ‘Level’ with your new staff – call a

meeting and tell your staff how you plan to deal with the first three, six, nine, 12 months of operating the business. If you don’t, your staff will make inaccurate and misinformed decisions.

4. Collaboration, not confrontation – new ownership is the ideal time for collaboration between a new owner and their staff. It is certainly the wrong time for threats and intimidation. You need full co-operation from your staff. You want to engage them and listen to their ideas and comments. They need to feel free to make suggestions and participate fully in helping the business grow and improve.

5. Key people are more important than ever – retaining your key people is very important during a new ownership period.

Ensure that they are ‘onside’. They are the core of your business and because they are good at what they do, they are likely to be attracting the attention of your competitors.

6. Increase rewards and incentives – that’s right, increase them! This isn’t the heresy it appears to be. Incentive and Reward systems are usually used to reward superior service, but when you first take over a business you want to retain your star performers. So offer superior rewards.

7. Staff know where the ‘fat is hidden’ – all businesses have areas of ‘fat’ or wastage.

Quite often your staff know exactly where those areas are. Ensure you encourage your new staff to identify these potential savings and suggest action to gain them.

8. Intensify training – train intensively during the new ownership period as there’s a good chance you will need some

Business Franchise Australia and New Zealand 55

e x pert adv ice

up skilling or refreshing on the business’ systems or processes. Make sure your staff can get access to this increase in training also.

Your new staff will be used to a certain style of management and it’s highly likely that yours will be different. Keep in mind that neither style is right or wrong, but your style is what the team has to work with now.

Once in your business, be sure to maintain a clear and concise message, be consistent in dealing with your team, praise when warranted but discipline when required. Set a follow up team meeting a minimum of four weeks after changeover to revisit what is working and what needs focus in your business.

However, no matter how well you transition your team, some staff will leave. It is not because they are bad team members or you are a difficult leader. It is simply that your style is not what they were used to and as such they choose to move on. Be prepared for this and develop training for new staff alongside your existing team.

Training is key Finally, whether you are creating a new team or taking over management of an existing team, remember that one of the reasons you bought into a franchise system was because of the support and training provided in this area to help you succeed.

Franchisors have a responsibility to allocate funds to and then use those funds in the best way possible to develop all team members.

Is there a franchisee management program available which you can attend to further up-skill yourself in skills such as: communication, team management, interpersonal skills, human resource management, conflict resolution, or coaching and mentoring of your team members?

Are there self-paced training programs which are available to you that you can administer for your team members such as customer service, workplace health and safety, etc. or an opportunity for your team members to complete relevant registered certificates in retail, hospitality, warehousing and the like?

56 Business Franchise Australia and New Zealand

Like everything in life, you will only get out of your business and your staff members what you are prepared to put in.

When it comes down to understanding your team and how it works, it all comes down to support and communication.

Corina Vucic, the 2012 FCA Woman in Franchising (Vic/Tas) is committed to delivering operational learning and development in a proven and practical manner and is an experienced and highly qualified mentor, trainer and business coach.

She is an expert at influencing success through motivation and engagement and providing leadership, support and guidance at any level.

For further information contact Corina Vucic, Director at FC Business Solutions: Phone: 03 9533 0028 Email: corina@fcbusinesssolutions.

com.au Web: www.fcbusinesssolutions.com.au

"-* #18.2&8* 64+*77.43&1

$-= $460 +46 43*= ;-*3 43*= (&3 ;460 +46 =49 .3&3(.&1 !*6:.(*7 6&3(-.7* 38*6+&(* +6&3(-.7**7 564:.)* 7-468 8*62 (&7- +14; &77.78&3(* +46 72&11 '97.3*77*7 8-&8 +.3) .8 ).++.(918 84 4'8&.3 (43:*38.43&1 +93).3, '= 596(-&7.3, 7*1*(8*) .3:4.(*7 &8 & ).7(4938 "-* ).7(4938 .7 =496 564+.8 +642 8-* 86&37&(8.43 ? &3) 8-&8 564+.8 .7 ;*11 &'4:* &:*6&,*

&3= +6&3(-.7**7 +&(*) 6*)93)&3(= ;*6* 1440.3, +46 & '*88*6 45546893.8= ;&38*) 246* 564+*77.43&1 ,64;8- 46 ;*6* /978 8.6*) 4+ 8-* (46546&8* 1.+* 78=1* !493) 1.0* =49 4 =49 -&:* 8-*7* 86&.87 > <(*11*38 42293.(&846 > *(.7.43 &0*6 64'1*2 !41:*6 > *1&8.437-.5 9.1)*6 > !*1+ .7(.51.3*) > &:* & 78643, '97.3*77 '&(0,6493)

'4:* :*6&,* 4)*78 3:*782*38 > 4; :*6-*&) > 42* &7*) > 2514=**7

%496 3(42* 48*38.&1 > %496 $460.3, &5.8&1 > %496 $460 !(-*)91* > %496 .+*

"-* (966*38 *(4342.( 7.89&8.43 564:.)*7 &3 *<(*11*38 45546893.8= +46 +6&3(-.7**7 !2&11 '97.3*77 4;3*67 3**) ;460.3, (&5.8&1 '98 '&307 &6* 93;.11.3, 46 93&'1* 84 564:.)* .8 &3= 4+

8-*7* 72&11 '97.3*77 4;3*67 &6* 8963.3, 84 38*6+&(* +46 & 74198.43

46 246* .3+462&8.43 "*1

> 2&.1 .+,&9 .38*6+&(*+.3&3(.&1 (42 $*'7.8* ;;; .38*6+&(*+.3&3(.&1 (42 &9

PROFILE : Sna p- on Tools

A new territory for Donovan advice to offer the potential franchisee: “It’s always a good idea to follow the program.

It’s a proven success formula,” Donovan said.

After 10 years with the Snap On Tools family, Donovan is still relishing his wise decision. “It’s the number one tool company in the world. There’s nothing like being the best!” he added.

For further information about Snap-on Tools franchising contact: Phone: 1800 762 766 Email: Nicholas.hudson@snapon.com Web: www.snapontools.com.au

Why a Snap-on Tools franchise?

• Snap-on Tools is the choice of professional technicians.

• $50mil R&D budget.

• Over 19,000 products in the range.

• Over 20 years in Australia and New Zealand.

Snap-on Tools Port Macquarie franchisee, Donovan Finney, had a unique perspective going into his first franchise 10 years ago; he was one of their customers!

With 25 years’ experience in the service station industry in Sydney, Donovan says he was looking for a different sort of business to invest in and Snap-on Tools presented to him at just the right time. Having previously

owned a franchise system before, he was well versed with what to look for. “It was very easy to understand” he said of the Snap on Tools experience.

After holding his suburban Sydney franchise for over eight years, an opportunity arose to purchase an existing franchise in Port Macquarie eighteen months ago. Donovan says it was the support of the Snap On Tools’ business development manager that made for a painless transition. “For the first three weeks we worked together on 16 hour days.

The support staff are very dedicated” he said.

Donovan believes that it’s the ongoing training and support he receives that enables him to sustain his business, and has this

• More than 90 years of international experience.

• 4,500+ franchisees worldwide.

• Strong franchise model.

• No property lease or staff.

• Extensive training and ongoing support.

• No mechanical experience necessary.

• Snap-on finance program available.

• Exclusive territories surveyed by Snapon.

• Open territories with waiting customers.

58 Business Franchise Australia and New Zealand

1057

Business Franchise Australia and New Zealand 59 1057_KLPR_SPOA_SharpestTool_v05FA_for_Franchise_magazine.indd 1

3/12/2012 4:55:33 PM

Wok stars Wanted Now!

Investment required $250,000 to $280,000 New Franchise Partners wanted in Perth & Queensland, plus other key areas Australia wide.

Exciting new restaurant design concept Full training & ongoing support provided Largest noodle based franchise restaurant system in Australia Australian owned Weâ&#x20AC;&#x2122;d love to hear from you! Visit noodlebox.com.au/franchise & ďŹ ll out enquiry form to receive an Information Kit. Or contact our Network Development Manager - Michael Standley on (03) 8851 4200 or 0416 256 338.

food feature

on the menu Australia serves up the best Featured Zarraffaâ&#x20AC;&#x2122;s Coffee

66

Fasta Pasta

68

Janine Allis - Book Review 71 Lava Carts

72

Taco Bill

76 Business Franchise Australia and New Zealand 61

food feature feature Did you know that Australians spend over 135 billion dollars on food and beverages every year?

Or that Australians drink over one billion cups of coffee in cafes, restaurants and take away outlets?

Then what are you waiting for? Join the world of food franchising!

A snapshot Until the early 1970’s, franchising was virtually an unknown concept in Australia.

That quickly changed with the arrival of the ‘golden arches’ along with two all-beef patties, forever changing the suburban landscape. KFC and Pizza Hut joined

McDonald’s, and so began the story of franchising in Australia.

Since these early days, franchising has grown in leaps and bounds to include almost every industry and covers almost every product and service imaginable.

The food sector of franchising continues to thrive and grow, with food franchises representing a large proportion of the franchising industry.

The majority of franchise units are in retail trade (26 per cent) with accommodation and food services (17 per cent), which include food retailing, fast food and coffee shops.

Increasing appetite Research shows that people are increasingly spending more and more on food and beverages. The value of food and liquor retailing in Australia grew by 4.2 per cent in 2011-12, to reach over 135.8 billion.

In 2011, global research company Euromonitor estimated that Australia was expected to spend more than $37 billion on takeaway food alone, making us the 11th

62 Business Franchise Australia and New Zealand

biggest-spending fast food nation on earth.

According to the most recent Australian Food Statistics Report (2011) household expenditure on food and beverages in Australia increased to an estimated $255 a week in 2009-10, up from $216 in 2003-04 and $212 in 1998-99.

Meals out and takeaway food increased as a proportion of the total household expenditure on food and beverages over the same three year survey periods.

Australian Bureau of Statistics research supports these findings, with the trend for spending on meals out and fast foods increasing by 50 per cent from 2003-04 to 2009-10.**

Australia’s growing waistline Put simply, we love our food, and in terms of franchising the options have never been more prolific. From the early days of burgers and pizzas, we are now being served up more options than ever, and with growing concerns over our increasing waistlines, healthy options have become popular in recent times.

food feature In addition, more and more people are raising concerns of gluten intolerance, lactose intolerance, nut allergies, high cholesterol, diabetes… the list goes on! As food retailers, being able to cater for all kinds of food intolerances and preferences is becoming increasingly important.

Responding to consumer desires is vital for sustainability in the food industry. This also creates opportunity.

SumoSalad notably struck while the iron was hot. The brainchild of Luke Baylis and James Miller, SumoSalad was conceived with the view that ‘fast food’ could be good, healthy food too. It was a unique lunchtime concept: a fast food outlet that sold made to order salads which were nutritious, delicious and convenient.

Having served over 30 million salads since its first store opening ten years ago, SumoSalad is Australia’s largest and most awarded healthy fast food franchise.

With 91 stores across Australia, as well as nine internationally in New Zealand, United Kingdom, Dubai and Singapore, SumoSalad is also scheduled to open its first store in North America this year. It is anticipated that an additional 300 stores will be opened throughout the next ten years in various markets.

Furthermore, Retail Zoo, parent company of Boost Juice Bars, Salsa’s, Boost International, Fresh Mex Grill and CIBO

Espresso, reportedly achieved a doubledigit EBITDA growth for the 2012-13 financial year. The group’s EBITDA stood at $17.6 million with bottom line growth of 24 per cent, during the past twelve months.

Café Culture Coffee culture has swept Australia in a big way. For most people, a trip to the shops cannot pass without stopping for a coffee, a long day at work wouldn’t be the same without the familiar take away coffee cup on our desk, and a long drive simply wouldn’t be possible without a mandatory coffee break! The coffee market has grown considerably in Australia in the last few years, and has proved to be a booming market for many franchisors.

The ever expanding list of franchise opportunities for those interested in a coffee franchise provides a wide variety of options for potential franchisees.

Cafe2U is one of Australia’s most successful coffee franchises, with over 120 Australians successfully running their own mobile Cafe2U coffee van business. The concept has also recently launched in the USA. In addition, Queensland based franchise Zarraffa’s Coffee has taken the mobile coffee market one step further. By implementing operational innovations, they are embracing further expansion through the drive thru store model. Having recently opened their 63rd outlet, the franchise has

significant growth plans for the next 12 - 24 months.

Alternatively, there are a wide range of coffee shop franchise opportunities where coffee is served in stylish, relaxed and friendly surroundings, most also providing a takeaway option for customers. If you’ve always wanted to run your own café, then perhaps these options could be suited to you.

Fast food Of course, if we go back to where franchising first began in Australia, the fast food sector of franchising remains strong. With fast food outlets providing tasty, quick, and cheap food in all locations, from highways to malls and on the high street, the appeal for consumers remains high, and with many now providing healthy alternatives these businesses remain highly competitive in the industry. This is only further highlighted by McDonald’s celebrating its 40th anniversary in Australia in 2011, and now has over 900 restaurants.

Rules and Regulations As with any industry it’s important to understand the rules and regulations associated with the business, and this is extremely important when working in food retail. Janine Allis, Founder of Boost Juice and Managing Director of Retail Zoo, gave this advice for people thinking of getting into the food industry:

Business Franchise Australia and New Zealand 63

food feature

“First of all you need to fully understand what it means to be in food, particularly healthy food. You need to be aware of the FSC (Food Standards Code), TGA (Therapeutic Goods Association) and the Health Authority. Then you need to consider what the ACCC rules are and of course if you get into franchising there is also the FCC (Franchise Code of Conduct).

These are just a few of the governmental and industry bodies that have specific requirements when it comes to the food industry.

“This can all be very daunting and confusing, particularly when many of these bodies do not give you a clear answer on a question regarding the rules. But business always has its challenges. You need to just keep going, becoming a sponge and soaking up all the information you can possibly absorb. Information is key, because making a mistake in regards to any of the above Codes and Associations can not only cause massive fines, but can be terrible for the public relations of your business.”

Business Franchise magazine – Janine Allis-Food Glorious Food!

Get to know your franchisor Once you have conducted your extensive research into the many food franchise models and systems available to you, remember that the franchisor holds the key.

The management system, the operational procedures, the leasing agreements, the contracts, and the fees have been generated by the franchisor. Check the franchisor’s background – is it solid? Meet with them. Do they have integrity? Do they answer all of your questions openly and honestly? Do they invite you to do your own investigations into the company?

Are they eager for you to talk to existing franchisees?

If at any point you feel pushed, rushed, bullied or even ignored by the franchisor – it’s time to consider walking away.

Hopefully though, the franchisor will be professional, honest and open.

The next step is to meet with several existing franchisees. While it’s fine to have all the manuals in place and have the franchisor tell you how great and successful the business may be, it’s the franchisees that have the real story. Visit them in their place of business, ask questions, and ask their employees if they enjoy working there.

One of the great things about researching food franchises is that you can simply drop in and eat. Be a random customer. Visit several locations. Is the food good? Is the service good? Is it consistent from one location to another? Do the employees seem happy? Do the customers seem happy?

By doing as much research as you can you can gain the knowledge to know if you are making the right choice at the right time.

64 Business Franchise Australia and New Zealand

So if you are passionate about food industry and the ever changing eating habits of our nation, a food franchise just might be for you. All the very best of luck as you venture on a fantastic path to success! *Franchising Australia 2010 Report

**2009-2010 Household Expenditure Survey (HES)

Top 10 Food Franchises Subway

1373 stores

McDonald’s

894 stores

KFC

613 stores

Baker’s Delight

600 stores

Domino’s Pizza

459 stores

Gloria Jeans Coffee 414 stores Red Rooster

379 stores

Hungry Jacks

355 stores

Donut King

337 stores

Michel’s Patisserie 322 stores Source: QSR Media Top 50 QSR’s in Australia 2012-13

australia & new Zealand business

2013

FRANCHISE DIRECTORY AUSTRALIA

& NEW ZEA LAND BUSIN ESS

2013

FD RANCHISE

ON SALE

NOW!

IRECTORY 1700 LISTINGS THE MO

Some of the top names in the industry contribute their expertise in regards to researching, finding and evaluating possible franchises.

$9.95 AUD, $11.9

The Franchise Directory is packed with valuable articles to help guide you through the franchising process.

5 NZD (INC. GST)

ST COMPREHENS IVE GUIDE YET!

Search through

1700 Listings to find the right franchise for you.

This annual publication is available on newsstands and magazine racks throughout the year. It is also sold at all the franchise expos in Australia and New Zealand or through the Business Franchise website: www.businessfranchiseaustralia.com.au

food feature

Z A R R A FFA’S CO FFEE

2013 GAINING MOMENTUM FOR ZARRAFFA’S 2013 has been a busy year for Zarraffa’s Coffee.

They recently opened their 63rd outlet in Oxley, South West of Brisbane. With a potential ten-plus store sites set for opening, and the possible franchising of some of the five stores opened in WA in 2012, the Queensland owned and operated company is primed for a busy second half of the year.

Zarraffa’s have also embraced further expansion through operational innovations, such as the drive thru store model.

Chief Executive Officer, Kenton Campbell, believes that partnering with franchisees who understand the brand in new store locations and territories will be critical to this year’s expansion plans.

“Our plan in the next 12 to 24 months is to grow responsibly throughout Queensland and Western Australia, in pockets and locations not currently serviced by our brand,” said Campbell.

“Supporting our franchisees and their individual businesses is critical to our long term growth as a group and by focussing on the delivery of a quality product and experience, every time,” he said.

“We are looking at consolidating our growth intra-state in Queensland and what will underpin this success is having the right business owners; people who believe in the brand, the system and ultimately love the coffee,” he said.

ABOUT ZARRAFFA’S Established in Queensland in 1996, the chain has grown to include over 60 stores across the country, with recent expansion into Western Australia.

Zarraffa’s Coffee is proudly Australian owned, with its head office and roastery operation based on Queensland’s Gold Coast. A Zarraffa’s Coffee franchise allows you the opportunity to become part of a strong, well-established brand while still being your own boss. As a Zarraffa’s franchisee you have access to a support network that gets you up and running and provides on-going assistance for your business.

Zarraffa’s Coffee has a fully equipped training academy on the Gold Coast and all franchisees participate in a comprehensive training program, which covers practical training, management, local area marketing and accounting. Once in operation, all franchises undergo in-store and periodic training, as well as full support from the franchise management team.

“Having celebrated personally twenty years in coffee just recently, it’s thrilling to be poised for another exceptional year of growth and to be aligning with passionate

66 Business Franchise Australia and New Zealand

franchisees who wish to join our group and further their own business dreams,” Campbell added.

For more information about exciting franchise opportunities available within Zarraffa’s contact: Phone: 07 5500 0800 Web: www.Zarraffas.com

Serving serious coffee in QLD, NSW and now in WA.

Zarraffa’s Coffee is committed to the mantra ‘fresh is best’ and strives to serve you an individually perfect cup of coffee – every time!

Enquire now! Franchise sites available nationally.

zarraffas.com © Intellectual Plus Pty Ltd. All Rights Reserved, 2013. Trade marks used under licence.

13091

Business Franchise Australia and New Zealand 67

feature

62 stores and growing fast

food feature feature

FASTA PASTA

Fasta Pasta:

Looking fresh Frank Taddeo

Iconic restaurant franchise, Fasta Pasta has been feeding Australians quality, fresh Italian cuisine for nearly 30 years. A South Australian success story, Fasta Pasta was founded in 1984 by a group of passionate foodies. Within 10 years it had become a national restaurant chain.

The business now includes 39 restaurants Australia-wide, drawing upon its Italian heritage to create great value food using only the finest and freshest ingredients.

At the heart of the Fasta Pasta promise is affordability – and it’s something the franchise has never faltered on.

Restaurants Australia-wide offer good old-fashioned family meals every day.

Even today, all of its restaurants offer great specials for under $9.

It’s important to note that affordability does not come at a compromise to quality. Each restaurant across Australia sells fresh pasta and sauces made at the company’s factory in the Italian heartland suburb of Glynde, in Adelaide’s northeast.

Led by passionate Chief Executive, Frank Taddeo, Fasta Pasta has stores in Western Australia, Queensland, Victoria and the Northern Territory. However, its South Australian stores remain the cornerstone of the business, with 19 stores in the State alone.

“We’re passionate about South Australia – as a business environment and as the place

68 Business Franchise Australia and New Zealand

“Our South Australian restaurants are some of the best performing in the nation and our efforts here will always be second-to-none.”

South Australia has also been the test run for the company’s foray into the food court trade, with a store opened in March this year in the new $385 million Rundle Place building.

“It’s a concept that has worked so well,” Taddeo said. “We weren’t sure how customers would react but sales have been good and the restaurant is helping us determine future food court opportunities.”

Growth beyond South Australia is important though, with Taddeo recently announcing plans for significant expansion interstate. Projections have indicated the company can eclipse $100 million in revenues in the coming years.

“The business has been generating more than $60 million in revenues and profits are strong, with restaurants continuing to outperform targets,” he said.

“We’re ready for growth and we see the addition of at least two to three new franchises annually as a means of continuing to build our brand and reach out to new customers.”

Part of the growth strategy includes a rebrand that is being unveiled at Fasta Pasta stores across the nation.

“The new look restaurants and branding ensure Fasta Pasta remains current and contemporary for its loyal customer base,” Taddeo said.

“Ultimately, we expect the rebrand to drive increased customer traffic and sales, as well as generate additional interest from prospective franchisees.”

Taddeo said it had been many years since the stores and brand had been updated.

“We were concerned that we were beginning to look dated,” he said. “Given the growing demands and expectations of our customers it was felt that the time had come for a revamp and upgrade across all facets of the business.”

Restaurants in South Australia were some of the first in the country to be upgraded with the new branding and a more polished, modern look. The Gilles Plains restaurant in Adelaide’s northeast was the first in the country to receive the new-look, with all restaurants in Australia to be revamped by the end of the year.

The old logo, a bowl of spaghetti with angel wings in a red circle has been replaced with a simpler illustration of a spaghetti noodle.

It’s now on all marketing material and being rolled out across all the restaurants.

“The feedback has been really positive,” Taddeo said. “It’s a cleaner, more modern look and we’re really pleased how it’s looking.”

Fasta Pasta has also moved to a new corporate base at Norwood in Adelaide’s east. “For a very long time we’ve run Fasta Pasta as a family business, without a corporate structure,” Taddeo said.

“It’s time to shed that image and enhance our professionalism. What has changed significantly over the past 29 years is our intimate knowledge and understanding of our business – we know what works and what doesn’t and we know that a strong organisation is vital – which is why we’ve added significant expertise at management level,” he said.

With more than 1000 people already employed by the growing business, Mr Taddeo said Fasta Pasta would employ more people in the restaurants and add further expertise at executive level as the brand expands.

Another new prospect for the company has been the solidification of its corporate social responsibility program. With each store selecting which charity they would like to support in an ad hoc manner, the executive decided it was time to lock in a dedicated partnership.

Enter the national children’s charity The Smith Family. Each one of Fasta Pasta’s 39 stores now has two donation boxes stationed near the registers and associated The Smith Family collateral supporting this drive. The aim is to raise vital funds to assist young Australians in need to get the most out of their education and create better futures for themselves.

“We see this partnership as a way to define our commitment and align ourselves with a single organisation, which undertakes

While traditional favourites Spaghetti Bolognese or Lasagne are still classic – and important – menu items, there has been a considered shift to innovative products and modern ingredients to entice customers’ palates.

Fettuccine Mona Lisa (sautéed bacon, sundried tomatoes, pine nuts, baby spinach, basil, garlic and a hint of chilli in a light cream and Napoli sauce) or Gnocchi Teresina (potato dumplings tossed with chicken, sundried tomatoes, basil, broccoli, cashews, onion, garlic and cream) are two of the many menu additions the Italian franchise has introduced in recent years.

Darren Purvis, Research and Development Manager, is responsible for managing and upgrading the current menu, as well as developing and planning new menu items for promotions and new product launches.

“We are always looking for ways to improve and upgrade our current menu,” Purvis said. “We take into account customer feedback, market research and consumer and good trends.

“Every promotion or new product introduced into the menu is developed to encompass market appeal, seasonal availability and a strong value position.”

Purvis’ influence across the Fasta Pasta menu is visible in dishes ranging from pizzas to children’s meals.

Most recently he focused on the upgrading of the soup range by introducing an improved, rich pumpkin soup and a new potato, bacon and leek soup to complement the original minestrone dish.

Risotto has also been added, and Purvis is also responsible for introducing Cestini di Mare (seafood platter), Angus Beef and Lilydale Chicken schnitzels, and Cannelloni Primavera (rolls of stuffed pasta served with spring vegetables) for campaigns in the past.

“To me the menu should not be reliant on the latest food trends or making changes just for the sake of it,” he said.

“It’s about updating and evolving our menu items to accommodate our customers.

Business Franchise Australia and New Zealand 69

food feature

Behind every meal served at Fasta Pasta restaurants in Australia is a thought process

that started our success,” Taddeo said.

food feature

FASTA PASTA

Fred’s Van each week. By the program’s culmination in September, almost 500 litres of fresh soup will have been donated.

Another partnership with Meals on Wheels is also on the cards. “It’s imperative organisations contribute to those less fortunate,” Taddeo said. “A good warm meal is something many of us take for granted. There are many Australians who go without and we really want to make a difference to these people’s lives.”

So what else does the future hold for this company?

We also have a responsibility to our core products on which the brand was originally built.”

Purvis said the key to creating an interesting and tasty menu was diversity of choice, maintaining a flexibility of ingredients and remembering the importance of strong flavour and visual appeal.

The biggest challenge Purvis faces is to create consistently good food with fresh seasonal ingredients on a national platform.

“Everything is made fresh and from scratch from as many local ingredients as possible,” he said.

“It’s integral menu items have an authentic Italian flavour that will suit everyone’s tastes and nutrition goals.”

such fantastic work with the disadvantaged youth of today,” Taddeo said.

“While all restaurants have supported many different charities over the years, we have never maximised our social responsibility program. We are thrilled to be working with The Smith Family as our charity of choice and look forward to developing many beneficial fundraising activities together in the future.”

Fasta Pasta has also teamed up with St Vincent de Paul mobile food service, Fred’s Van. Throughout winter the company has supplied more than 2,000 meals to Adelaide’s homeless. Two flavours of soup are provided to the Adelaide city

Nutrition is key in Purvis’ eyes.

“Providing good nutrition to customers is a priority for Fasta Pasta,” he said.

“Families are becoming increasingly interested in the link between good nutrition and health and we responded by introducing healthy choices which are at least 90% fat free.

“Most of the pasta specials currently being developed are the same size they always have been but the ratio of pasta to protein and vegetable has altered to reduce the overall kilojoule intake.

“We’ve also introduced nutritional information to our menus and website and developed a more balanced range of children’s products including the grilled chicken wrap and chicken tenders with salad,” he said.

70 Business Franchise Australia and New Zealand

High on the priority list is a plan to increase Fasta Pasta’s presence in States such as New South Wales, which currently has no stores. What won’t change, however, is what Fasta Pasta has been doing right for nearly three decades. “There are no other restaurant chains that can say they make all their own pasta and sauces fresh, but that’s what we do,” Taddeo said.

“Our unwavering commitment to quality, home-style cooking has been the key to our success to date and will remain central to our growth going forward.”

For more information on joining this successful franchise contact: Phone: 08 8304 8600 Email: reception@fastapasta.com.au Web: www.fastapasta.com.au

and the story of BOOST Juice, juicy bits and all

Janine Allis, mother of four starts a new retail concept, it explodes and she rides the perfect wave.

It was easy. Or was it?

In The Secrets of My Success Janine Allis tells the story of the creation of Boost Juice, a $250 million global business, and reveals her 30 secret recipes for business success. Janine shares her journey from a woman with no formal business training, to become leader of a business that has 280 stores in 12 countries (and growing). With humour, warmth and down-to-earth wisdom, this must-read reveals how a self-confessed ‘girl from the burbs’ built one of Australia’s most recognised brands, while capturing the hearts of millions of devoted customers around the world with her unique love-life philosophy.

Janine gives the reader tips on business and life she wished she had known when she started her journey with Boost Juice 13 years ago.

The Secrets of My Success has something for everyone. Budding entrepreneurs, Boost customers who are curious about the business started, managers and business owners hang onto your seat as Janine divulges 30 secret recipes for success that will enable you to shape your own successful business strategies. In practical terms, Janine also explains how to hang on to your core values while building the right team, a unique approach to listening to your customers and how you can market like the biggest names in business.

For today’s entrepreneur looking for non-traditional paths to success this book offers practical business and leadership wisdom combined with Janine’s personal story. You’ll also get the inside scoop into Janine’s early years, from working as head stewardess on David Bowie’s personal yacht in the south of France to becoming a single working mother at 25, and discover how Janine’s heart for adventure and her determined approach led her to become Australia’s most successful female entrepreneur.

“Writing the book was a fantastic walk down memory lane for me. I seriously had no idea what I was doing or what I was in for when we started Boost Juice, but with hard work, lots of luck and great people around me, my dreams really came true. The book is in many ways a how-to-find-happiness journal, it is written about a journey in business, but really it is a story about living your dreams, believing in yourself and what can happen when you find true love. It is also a book about the evolution of a young, inexperienced yet determined girl growing into a wife, mother and businesswoman,” Allis says.

By Janine Allis Published by Wrightbooks, May 2013 ISBN: 978-1-118-64817-9, Paperback: AUD $24.95, NZD$28.99

Business Franchise Australia and New Zealand 71

food feature

THE SECRETS OF MY SUCCESS

food feature

L ava Ca r ts

THE SUBSTANCE OF CO

From coffee cart to franchise retail concept According to Simon O’Brien, Managing Director of Lava Carts, this franchise story began with the operation of a single mobile coffee van in 2004.

Having spent his career in the mining industry, Simon decided to replace heavy earthmoving machinery with a mobile vending unit (MVU), and in 2008 the first

72 Business Franchise Australia and New Zealand

Lava Cart was born.

Initially located at the entrance of a major regional hospital, the aim of Lava Carts was to avoid the mounting pressures of long working hours, high running costs and fierce competition that traditional coffee retail models were renowned for.

Simon believes that it was his deep commitment to excellent products, equipment and the highest operating standards that resulted in the now famous Mackay Hospital Lava Cart.

“Customers thought we were a franchise before we were one,” he said.

food feature

COFFEE

concept “A reputation soon spread among the medical fraternity, to the point where the hospital became synonymous as a workplace with good coffee and an added bonus for interns and doctors who were assigned work there.”

With the encouragement of his customer base, it wasn’t long before the first Lava Cart franchise began, with long-time customer and Nurse at the hospital, Heather Skien, being granted the very first Lava Carts franchise.

The support from Lava Carts for new franchisees is critical to the ongoing success of the franchise.

“We make it really simple. The franchisee’s go through Barista training where they do two days of theory and practice. They then do their own prestart training site, which is closely supervised before opening,” Simon said.

In his experience, Simon believes this initial training is invaluable, as the best way to learn Lava Cart’s systems is in practice and with hands on support.

Lava Cart also believe it’s important to assist new franchisees with the selection and induction of new staff.

“We know what to look for in quality experienced Barista’s and this helps ease pressure on the owner operators from day one,” he said.

Lava Carts also has strong ties to their contract roasters, Belaroma, who have been in business for over 40 years. They provide in-house training and teach the latest barista techniques at the Belaroma Coffee Academy. ”This adds another layer of support,” he added.

Business Franchise Australia and New Zealand 73

food feature

L ava Ca r ts

Simon says Lava Carts offer an extremely competitive entry point and alternative to the traditional retail model of many coffee house operations in the market.

“Our franchisees come from a variety of backgrounds. The entry point is fair.

Applicants should still have a minimum of $250,000 to $300,000 in cash or equity,” he said.

If you speak to existing Lava Carts franchisees, the Lava Carts franchise appeals for a wide and varied list of reasons. According to franchisee, Kristy Chua owner of Mt Pleasant Shopping Centre kiosk in Mackay, “It gives us a great sense of satisfaction seeing our customers truly enjoying our product. Simon O’Brien, the founder of Lava Carts, has always been very supportive of us with advice and resources to attain our goals. With this we are proud to recommend Lava Carts to any individuals who aspire to have a business that is profitable and enjoyable.”

In the past year, Lava Carts have opened three new outlets. On the 16th of July, the most recent addition to the growing franchise was granted in Robina Town Centre on the Gold Coast.

“This outlet is a kiosk” says Simon “and I’m proud to say is the result of a lot of thought in design innovation and

modification. It boasts three blends of coffee, all fresh on demand, as well as a coffee deli where our customers can take home fresh blends, ground while they wait.”

true to the grass roots qualities of cost and position consideration. Since then, opportunities for expansion have been literally erupting!” he said.

A focus on quality and sustainability has also resulted in a full range of branded compostable cups and lids. Simon believes this added an important element of substance and a major point of difference in comparison to other coffee outlets.

Lava Carts currently have franchises available in the key regions of Melbourne, Perth, and South East Queensland.

“The Cart was upgraded using the latest in design innovation to the modern kiosk/ shop concept we see today whilst remaining

74 Business Franchise Australia and New Zealand

For further information contact: Phone: 0458 202 649 Email: manager@lavacarts.com.au Web: www.lavacarts.com.au

1Year of

AUSTRALIA and NEW ZEAL AND

One year (6 issues) of Business Franchise Australia and New Zealand for only $24.95 (AUS) or $32.95 (NZD).

Packed with information relating to many different areas of the franchising industry, Business Franchise is a valuable and informative source of guidance.

SUBSCRIBE Send me 6 issues (1 year) of Business Franchise Australia and New Zealand for only $24.95 AUD for delivery within Australia or $32.95 NZD for delivery within New Zealand.

CUT HERE

Credit Card

(sorry, we do not accept Diners Club)

Payment enclosed (cheque only)

Name:__________________________________________________________________________________ Address:________________________________________________________________________________ City:____________________________________________________________________________________ State:________________________________________ Postal Code:_______________________________ Phone Number:___________________________________________________________________________ Email:___________________________________________________________________________________ Credit Card No.__________________________________ CVV ________________ Exp. Date____________ Mail to: CGB Publishing Pty Ltd PO Box 968 Mt Eliza Victoria 3930 Australia Email: cgb@cgbpublishing.com.au

food feature

TACO B I L L

SO HOT RIGHT NOW:

No one does it better

than Taco Bill

76 Business Franchise Australia and New Zealand

food feature Taco Bill celebrates more than four decades of serving Australians quality Mexican cuisine in a great family restaurant environment.

Tasty Mexican cuisine in franchising is nothing new for Taco Bill Directors Tom Kartel and Stan Teschke. They both share a love of Mexican food and understand what it takes to make a family restaurant franchise a success with a total of 35 restaurants.

The foundation of the business stems from the desire to present Australians with Mexican food that is fun, fresh and affordable in a relaxed, friendly atmosphere, which suits couples, families and groups. Today, Mexican cuisine is becoming ever more popular; consumer’s knowledge and expectations are on the rise for good, quality food and experiences.

Taco Bill is one of the longest established Mexican restaurants in the country – a mean feat considering the restaurants humble beginnings.

Bill (Taco) Chilcote, who was responsible for introducing Mexican food to Australia, arrived from the border of Mexico and California with a handful of recipes from his Mexican mother-in-law, a corn grinder and a tortilla machine. Bill began producing tortillas and corn chips and

developed the menu with the first Taco Bill opening on the Gold Coast, Queensland in 1967 and shortly after in Sydney, NSW and Armadale, VIC. The first menu consisted of tacos, enchiladas, taquitos, tostadas, chile con carne, rice and frijoles and has since grown to include a variety of nachos, burritos, flour tortillas and fajitas as well as a number of alcoholic beverages including the famous Pancho Villa (fishbowl) margarita – Australia’s largest margarita that comes in a variety of flavours. Today there are also over 30 brands of tequila on offer at the various restaurants.

Taco Bill has remained true to its roots with very little variation in the recipes since the restaurants inception – including the ‘secret salsa’ recipe that is made fresh on site everyday and is known by customers as part of the Taco Bill way, with a FREE bowl of salsa and corn chips given to every table, at every location, every time. Taco Bill has built a loyal following, with multi generations of customers dining in the restaurants.

Today, Taco Bill CEO, Tom Kartel, is the primary stakeholder in the company and presents another great example of someone who had a great passion for Mexican and the Taco Bill brand, extended on the success of the group. Tom and Stan have a clear vision for the future, with new franchisees taking over from those who are retiring or some of the company owned locations, allowing for future growth to continue throughout Australia.

Business Franchise Australia and New Zealand 77

food feature

TACO B I L L Why own a Taco Bill restaurant?

Taco Bill offers the opportunity for franchisees to immerse themselves in Mexican food and flavours in an environment that is fun, exciting and dynamic, with a company that has been in the Mexican food industry for more than 40 years.

Taco Bill ‘training champions’ provide intense training for a two month period, which involves comprehensive lessons in areas such as meal preparation, IT systems and customer service. The company also provides ongoing training and support, which maintains a high level of customer service that customers have become accustomed to.

Operating a Taco Bill restaurant provides a greater work-life balance and flexibility with many locations hours from 5pm to 10pm (dinner service). These are shorter operating hours in comparison to most franchises and many Taco Bill franchisees enjoy involving their families in the business, which matches the family environment of the restaurant.

Taco Bill offers marketing and support to its franchisees with a range of promotional activities and campaigns that link into holidays, special events and national holidays in Mexico, including Cinco de Mayo (Mexican holiday that celebrates Mexico’s victory over the French army in 1862) and Independence Day (Mexican holidays celebrated by the group). There is also a great opportunity for franchisees to really develop the business by promoting

corporate functions, birthday parties and takeaway food offers in the local area as Taco Bill has set up a Club Taco to engage with each location’s individual databases, where material is distributed with dedicated information.

Taco Bill appeals to a wide variety of franchisees, from family members, business partnerships and sole entrepreneurs. The key ingredient in this mix is that in the end, and what makes Taco Bill so successful is the fact that regardless of the business set-up from the franchisee’s end – Taco Bill is committed to each and every franchisee and considers them all partners, family and friends.

CEO Tom Kartel says “Suitable candidates for a Taco Bill Franchise, are recognized for their passion and enthusiastic approach to both food and customer service. Taco Bill allows individuals to stamp their own

78 Business Franchise Australia and New Zealand

identity to their chosen location, while still maintaining the core essence of what makes this group a long term success. We also ensure all Franchisees have accessibility to ourselves (the Company Directors) our Management Team and acknowledge the camaraderie amongst the franchisees makes for a true recipe of Mexican cuisine and franchise success!”

So whether you want to go it alone, bring in a partner or include the whole family, Taco Bill will help you achieve your goal of owning your business.

For more details on joining the Taco Bill franchise family contact Tom Kartel and Stan Teschke at: Phone: 9690 2077 Email: amigo@tacobill.com.au.

Web: www.tacobill.com.au

DONâ&#x20AC;&#x2122;T MISS OUR NEXT ISSUE!

building & landscaping Want to learn more about trends and growth industries in franchising?

Need help making the big decisions?

Every edition we feature advice from the experts to help you on your franchising journey.

Find out more about Building and Landscaping franchises in the November/December edition of Business Franchise Australia and New Zealand.

On sale 1st November 2013.

Business Franchise Australia and New Zealand 79

e x pert adv ice

“As a small business owner and manager, keep in mind that managing the human resources of your unit is a demanding but critical aspect of the role.”

Dr Ashlea Kellner, Research Fellow, Centre for Work, Organisation and Wellbeing, Griffith University.

approaches to

managing employment There is little support for franchisees in managing the employment side of the business, according to new research from Griffith University.

The research, completed by Dr Ashlea Kellner for her doctoral degree, focused on coffee franchise systems and found that the level of support franchisees are provided in human resource management (HRM) can be lacking.

Franchisee HRM needs Franchisees often come from non-managerial backgrounds with the hope of being their own boss.

Some have previously worked in fields as diverse as truck driving or accounting.

When it comes to recruitment, selection, training, performance management or handling disputes and dismissals, they can be very inexperienced and unprepared.

The franchisor doesn’t always give franchisees adequate training to equip them

to manage these employment processes in their stores.

since they were sure they would be provided ongoing assistance by the franchisor.

Type of HRM support provided by franchisors

Unfortunately, this is not always the case, as the majority of franchisors do not have the required expertise to support franchisees in this way.

The study found that more general support is typically provided to franchisees to provide a base level of understanding of how to employ and manage staff.

The operations manual usually includes basic policies, procedures and templates for employment contracts and letters of dismissal.

Franchisees in the study were also introduced to key employment concepts during their induction period, although a common complaint was that the intensive nature of the induction often meant that much of this new information was forgotten.

“We cover so much content in a week at head office, I can’t remember anything they told us about managing staff!” one franchisee said.

Franchisee misconceptions regarding HRM support Many franchisees expressed that they were not too concerned about their lack of people management skills upon entering franchising

80 Business Franchise Australia and New Zealand

The Franchising Australia 2012 research, conducted by Griffith University’s AsiaPacific Centre for Franchising Excellence confirms these findings.

The Franchising Australia 2012 report shows slightly less than one third of franchisors employ human resource or industrial relations specialists at their corporate office, and those that do tend to be larger systems with more than 50 units.

Prospective franchisees, particularly those considering smaller systems, should be aware that HRM support may not be available.

This means that particularly difficult and complex tasks, such as creating employment contracts or handling industrial relations issues, will require a lot of time and potentially costly external expertise.

Adopt, adapt, borrow or create your HRM approach Establishing the basic HRM policies and

K_\ 8ljkiXc`Xe ;il^ ;\k\Zk`fe 8^\eZp

8;;8

THERE’ S’ S AA LOT LOT OF OF THERE

MONEY IN IN DRUGS DRUGS MONEY

makesure sureyou youcontrol controlaaterritory territory make

The Australian Drug Detection Agency wants highly motivated and independent people to join the team, as either Master or Regional Franchisees.

The is aDrug proven business model provide financial rewards for those who TheADDA Australian Detection Agency wants that highlywill motivated andexcellent independent people to join The Australian Drug Detection Agency wants highly motivated and independent people to join team, as either Master or Regional arethe prepared to work hard and fit Franchisees. the criteria. the team, as either Master or Regional Franchisees.

TheisADDA is a opportunity proven businessfor model that will provide excellent financialwho rewards forserved, those or are currently in This a huge business-orientated individuals have Thewho ADDA isprepared a proventobusiness model that willcriteria. provide excellent financial rewards for those are work hard and fit the law the hard emergency who enforcement, are prepared to work and fit theservices criteria. or the armed forces, to get in at the ground level and grow own enterprise.

This their is a huge opportunity for business-orientated individuals who have served, or are currently Thisinislaw a huge opportunity business-orientated individuals who have or are currently enforcement, the for emergency services or the armed forces, to getserved, in at the ground level Are you ready to join our experienced group and secure a lucrative future? in law enforcement, the emergency services or the armed forces, to get in at the ground level and grow their own enterprise. and grow their Our guess is own Yes,enterprise. you are!

Are you ready to join our experienced group and secure a lucrative future?

AreFranchises you ready to join our experienced group and secure a lucrative future? selling fast Our guess is Yes, you are!

Email: kirk.hardy@tadda.com.au sold QLD/NSW/VIC OurMasters guess is Yes, youinare!

Website: www.tadda.com.au franchises still Email: kirk.hardy@tadda.com.au sSub Franchises selling fastavailable in all States.

Email: kirk.hardy@tadda.com.au s Franchises selling fast s Masters sold in QLD/NSW/VIC Website: www.tadda.com.au s Masters sold in QLD/NSW/VIC Website: www.tadda.com.au

• • •

Business Franchise Australia and New Zealand 81

e x pert adv ice

procedures is a time consuming task, although it seems that in this regard, franchisees have four options.

The research indicated when it comes to HRM policies and procedures, franchisees essentially have four options open to them: Adopt: Where the franchisor has provided some guidelines on an HRM practice, such as recruitment for example, the franchisee may choose to adopt the franchisor’s recommended HRM practices as they stand.

Adapt: Where the franchisor is flexible with the interpretation of their policies and procedures (which appears to be the case in the franchises studied), the franchisee may choose to adapt them to suit their preferences.

Borrow: Alternately, the franchisee may prefer to borrow HRM practices from another organisation and alter these to suit their own preferences.

Create: Finally, some more innovative franchisees choose to create their own individual approach, writing their own policies and procedures from scratch.

HRM is seen as primarily the franchisee’s responsibility, therefore there is typically a lot of ‘wiggle room’ around the creation and adaptation of policies.

The research found franchisees tended to adopt the franchisor’s standardised paperwork and templates such as offer letters and policies, but exhibited a higher degree of adaptation in more practical aspects of management according to their previous experience or preferred management style.

Franchisees often cobbled together an approach using all four methods and this is demonstrated in the following example taken from a franchisee in the study: The recruitment template provided by the franchisor was adopted to advertise the vacancy, and then the franchisor’s reference check template was adapted to suit the franchisee’s preferences. The interview approach was borrowed from the airline industry, where applicants were asked to “bring your talent and entertain us”. Finally, the franchisees employed the new staff member on the enterprise agreement that they had independently created without involvement or advice from the franchisor.

Preparing to manage your own employees For new or prospective franchisees, there are a number of key points that should be

considered in regard to HRM. It is important to remember that the first few months of running a franchise will be intense, overwhelming and demanding and it may be the best approach to adopt the franchisor’s HRM policies and procedures initially.

As the franchisee is able to take time and step back to consider the management of the unit, this may be the time to begin adapting and changing the approach to activities like employee selection or training techniques.

Don’t be afraid to borrow techniques and ideas from other franchisees or external organisations.

Network and connect with other franchisees within and external to your system and ask them what works.

Ask them about how they manage the activities that you may find difficult – such as managing a poorly performing staff member.

Consider asking for a copy of their paperwork, be it a performance review template of outline for an official warning relating to performance.

Where franchisor support in HRM is limited, external professional advice is costly so these networks of small business owners and managers can be invaluable.

As a small business owner and manager,

82 Business Franchise Australia and New Zealand

keep in mind that managing the human resources of your unit is a demanding but critical aspect of the role.

In comparison to the operational aspects of your business, the franchisor’s involvement in HRM is likely to be far more limited.

Many new franchisees report that this lack of support is unexpected and disappointing, so the best preparation for potential franchisees is to be aware and informed.

Talk to other franchisees, borrow ideas from organisations you admire, and be aware that your approach to managing staff is an ongoing but critical element in the success of your franchise business.

Dr Ashlea Kellner is a research fellow employed by the Centre for Work, Organisation and Wellbeing at Griffith University. Her PhD research was conducted with support from the University’s Asia-Pacific Centre for Franchising Excellence.

Griffith University’s Asia-Pacific Centre for Franchising Excellence aims to drive franchise sector best practice through practical, independent research and education.

To learn more visit the Centre’s website: Web: www.franchise.edu.au

Business Franchise Australia and New Zealand 83

e x pert a A dv ice

Trends in Franchising

Change is a constant and franchise businesses are not exempt. The economic climate, global financial crunch, changes in legislation, competition, technology and taxation, amongst many other factors, can shape how franchises will operate in the future.

84 Business Franchise Australia and New Zealand

“We are in a Facebook and Twitter generation with customers becoming product evangelists and followers or fans of a franchise brand.”

Philip Morrison, Director, Franchise Accountants.

Successfully responding to change is critical to ensuring a franchise is sustainable, viable and profitable. Picking the trends on a timely basis is vital to maintaining a competitive advantage.

Astute franchisors navigate their businesses like a captain sails a yacht. They know where they are heading and are looking for favourable wind shifts to get there, tacking and trimming the sails to get maximum performance. Early identification of wind shifts and capitalising on them can be the difference between leading or being left behind. Team work can also be a defining factor - successful execution of strategies is often down to how well the franchisees work with the franchisor. Creating high performing teams within a franchise network can be the difference between a market leading franchise and a follower.

Whilst different industries are impacted in different ways there are some emerging trends facing franchisors today. These trends are based on our observations of clients we work with on a consulting basis.

ECONOMIC CONTRACTION Worldwide Credit Crunch The ripples from the 2008 world wide credit crunch continue to have significant bearing on the economy. Things seem more fragile with the latest rounds of bail outs in the EU preventing a financial domino effect. The economic contraction has seen increased competition for the customer’s dollar, fighting to maintain market share of a smaller pie. This is evident in almost all industry sectors from food and beverage to retail sectors. This has seen trends towards deep cut discounting and corresponding reduced margins. This has conditioned customers to expect 30 per cent off margins as normal and to wait for regular promotions.

With some sectors having a 10-20 per cent contraction, this has seen highly geared franchise businesses collapse. This has contributed to franchise business default rates increasing in some cases. It has also impacted on recruiting franchisee’s with sufficient capital to purchase a franchise.

Internet Based Trading The trend towards internet based sales has been increasing. This low cost business model has seen pressure being put on landlords to adjust rents or face empty premises. This competition has seen franchises increase focus on retaining their existing customer base by building brand loyalty using programs with added value incentives. Accordingly, franchisors have had to accommodate this trend by building a hybrid internet model blending into the existing franchise model.

Franchise Sales, Re-sales & Recruitment The knock on effect from this is that due diligence for purchasing franchise businesses is taking longer with new franchisees proceeding with caution. Mirroring this is the price paid for existing franchise businesses. Franchise owners have seen a contraction of the earnings multiplier being applied for franchise businesses. So overall there has been a slowing in new franchisee sales. To counter this there has been a trend from many franchisors to increase their franchise size by offering existing franchisees the opportunity to become multi site owners. This has worked with various degrees of success. The transition from working in your franchise to working on your franchises has seen mixed results.

It has seen pressure put on franchisors to upgrade systems and up-skill franchisees to make this change.

Securing Franchise Finance Accordingly banks focus more on cash flow projections and are taking a more conservative lending policy. This is evident with new franchise systems which do not have critical mass or a proven track record.

Franchisors of new or emerging franchise systems have been required to profile franchisees with strong asset backed lending to secure finance, whereas proven mature systems can secure cash flow lending finance.

Reformatting Franchise Business Models Accordingly the pressure on franchise owners to tune their business model to viable and profitable has seen a trend for some franchise owners to buy back franchises and operate them as company owned and managed stores to bolster cash-flows. In some cases, where the business model is no longer competitive, this has seen the retrenchment of some franchise systems.

This has resulted in some franchisors reformatting the franchise model to maintain a competitive advantage.

TECHNOLOGY CHANGES Improved Financial Management The pressure on franchise businesses to perform and provide satisfactory returns has seen trends in franchisors seeking to provide improved benchmarking systems to work with the franchise owners to drive KPI’s. This has seen franchise systems lose the frills and focus on doing the basics well. Building business dashboards for franchise systems is an emerging trend.

This has been made possible by using web based technology which enables franchisors to deliver low cost real time accurate information that focuses on the main drivers in the business. This in turn provides

Business Franchise Australia and New Zealand 85

e x pert a A dv ice

tools to improve the profit generation of the franchise. The power of the franchise network can be leveraged with peer to peer comparison versus an independent business owner.

Web Based Application Franchise support team members are now being armed with iPad tablets. The webbased applications are being used for various applications such as compliance of processes and procedures.

The trend towards web-based applications allows franchisors to deploy software solutions quickly and cost effectively. For example no hardware requirements except an internet connection and email address, software updated in one place so everyone is using the same system, online back-ups of data allowing data security and integrity.

Natural disasters such as floods, power spikes, hardware failures that cause business disruption are things of the past. There is a trend towards subscription based software, away from large upfront costs to purchase the software.

Social Media There is a greater focus on measuring customer experience. Reaching and retaining customers has seen increased surveying and building touch points. The trend towards using social media to interact with the client base has seen a transformation on how franchise businesses connect with customers. We are in a Facebook and Twitter generation with customers becoming product evangelists and followers or fans of a franchise brand. Those franchise businesses that have adopted this strategy have retooled how they interact with customers to build brand loyalty by providing added value to customers. There has been a shift from using the traditional printed media sources of advertising to online advertising.

In particular to channelling more of the marketing spend directly to clients in the form of coupons, vouchers and price offs.

Smart Phone Apps Franchisors are now placing more importance on building and profiling their client databases. Increased analysis of customer buying patterns has seen more targeted marketing initiatives, such as the need to capture mobile numbers and providing targeted campaigns to reach

customers through the use of SMS /text campaigns and smart phones for redeeming coupons. This, along with the use of email addresses, has seen franchisors looking to cut through the bombardment of traditional sales and marketing methods. There has been an emerging trend of targeted personalised sales strategies hitting your smart phone - offering buy now advertising for loyal customers. There is a growing trend towards utilising social media to reach customers via platforms like Facebook and Twitter.

COMPLIANCE COSTS Legislation Creep & Litigation There are increased layers of compliance costs with each new tax ruling the ATO or IRD pass. Whilst in New Zealand there is no franchise legislation, there is in Australia with both federal and state legislation to comply with. This legislative creep places more and more costs onto the franchisor.

Another consequence of tightening economic times is a corresponding increase in franchisee/franchisor litigation.

Underperforming sites, breaching, turf wars, the use of internet based sales channels and the impact on existing franchises are becoming more commonplace.

There has been a trend to establishing Franchise Advisory Councils (FACs).

This allows franchisees to have a voice and be heard and provides a channel of communication between franchisors and franchisees. Where this has been successfully employed we see group pressure from franchise owners bringing rogue franchisees into line and autocratic franchisors becoming more collaborative in their leadership style.

Branding One bad apple can spoil the barrow of apples.

Protecting the investment of franchise owners as a whole has seen a continued trend of enforcement of compliance by issuing breach notices and in some cases revoking franchise licenses.

The trend towards reinvesting in the brand has been evidenced by a large number of franchisors refreshing their franchise brand.

We have seen mature brands that have had nothing done to them for a decade re-position themselves by re-imaging. The importance of brand management from top down has taken on increased importance.

86 Business Franchise Australia and New Zealand

Back to the Future Change is something we all deal with. How we adapt to the challenge of change is question. Are we leaders or followers in our franchise businesses? The well documented illustration of industry leaders who failed to pick the trends in the business they dominated were the early railway barons.

They had not recognised the business they were in. They thought they were in the business of railways not transportation.

History tells us how they lost their market to other modes of transportation and are no longer the force they were.

Knowing what business you are in and maintaining a competitive advantage within a franchise network is as vital as it ever was.

So in summary looking into the future, what are the emerging and growing trends that franchisors will need to work through? Here are some of the things I see: • More collaboration between franchisor and franchisees – communication, feed forward, a culture of we not just me.

• Strategic investment in maintaining competitive advantage – technology, fit outs.

• Reinvestment in brand management – refreshing image and re-positioning.

• Increased spend on social media to retain and attract customers.

• Leveraging technology to gain competitive edge, reach and target customers.

The challenges of picking the trends in a changing market place remain unchanged.

The pace of change remains relentless.

Identifying the strategic shifts and responding to these will often fall and rise on the leadership of you, the franchisor.

Philip Morrison is the Director of Franchise Accountants. With over 25 years of accounting, business and financial management experience, his passion is to empower people to succeed in their franchise business Franchise Accountants are the only chartered accounting practice in New Zealand that exclusively focuses on the franchising industry, and provides both accounting and consulting services.

Phone: (NZ) 09 265 2657 Email: info@franchiseaccountants.co.nz Web: www.franchiseaccountants.co.nz

PROFILE : InX pr ess

INXPRESS

Global Player delivering great results the InXpress family. This is a testament to the InXpress business model and the market acceptance of the InXpress concept,” he said.

The franchise model leverages the volume spend with world class carriers, such as DHL, TNT and Toll to provide competitive shipping rates and value added services to customers, which are normally only extended to large multi-national clients.

Lindsay Birley, Australian Managing Director

Founded twelve years ago, InXpress is a Global Express Freight company which launched in Australia over four years ago.

Originating in the UK and USA, InXpress now boasts approximately 30 active franchises in Australia.

Australian Managing Director Lindsay Birley is aggressive with his forward thinking: “Each month InXpress Australia consistently continues to expand with at least one new franchisee business partner joining

InXpress focuses its core services around International Air Express, Domestic Air Express and Domestic Road Express. The standard solution provides one customer invoice featuring multiple services from multiple carriers. “Customer’s love our consolidating billing feature, furthermore franchisees’ spend the vast amount of time delivering exceptional customer service to existing and potential customers, building up a solid and very profitable book of business.

The carriers do the rest,” Lindsay said.

Franchisees bring to the network a variety of business backgrounds. “Many InXpress’ franchisees are high energy individuals who enjoy a face to face business environment.

They have a desire to earn an unlimited residual income. InXpress offers a system that is not bound by geographic boundaries, and provides the freedom for the franchisee to develop their own form of lifestyle; accommodating family, leisure and an ideal work life balance,” he said.

“Recently we launched into New Zealand, expanding our global portfolio to include another international location. This gives us a bigger global footprint and the ability to leverage even more savings for our customers and profit for our franchise partners,” he said.

InXpress offers an innovative business to business service to any industry requiring express shipping. InXpress has developed a

88 Business Franchise Australia and New Zealand

unique and user friendly web based software program automating shipment processing allowing customers more free time while saving them money on courier costs. This is delivered with a personalised and dedicated freight consultant. “The automated manner in which InXpress transact with their customers allows more time for the franchisee to further develop their business or spend time doing other equally important activities such as with family and friends,” Lindsay added.

To ensure franchisees are provided with the best possible start to their business, InXpress offers a turn-key operation with a 3- staged training program. The centralised support centre provides dedicated resources for the franchise system, also handling customer billing and collections.

Lindsay has noticed there has been a significant increase in the level of interest in InXpress’ franchise system and believes this is a result of recent investments in core carrier automation. “The company is well poised to take advantage of the continued upward trend in air express shipping, both internationally and domestically, and its new cutting-edge software targeting e-commerce users will take it to the next level. The InXpress product line has been extended and our sales training programs have been acknowledged as industry leading,” he said.

For more information on becoming an InXpress franchisee contact Meredith: Phone: 0418 600 919 / 1300 469 773 Email: sales.au@inxpress.com Web: www.inxpress.com

Want more freedom in your life?

Think outside the box ...

Own your own business, generate residual income and secure financial freedom with an InXpress business opportunity.

For more information on joining the InXpress Franchising Team call Meredith 0418 600 919 or visit inxpress.com M O R E

T H A N

J U S T

Phone: 1300 469 773

G E T T I N G

I T

T H E R E

email: sales.au@inxpress.com

www.inxpress.com.au Business Franchise Australia and New Zealand 89

e x pert a A dv ice

EXCLUSIVE DEALING AND OBLIGATIONs

If you are a franchisee and you are obligated to purchase products and services from the franchisor, or a particular supplier nominated by the franchisor, you should be aware of the legal concept of ‘exclusive dealing’ and how it impacts you and the operation of your business.

What is exclusive dealing conduct?

Broadly speaking, exclusive dealing in franchising is where the franchisor restricts

its franchisee’s freedom to choose from whom it buys goods or services, what goods and services it buys, and where it sells such goods and services. Most types of exclusive dealing are against the law only where such conduct is deemed to substantially lessen competition, although other types are strictly prohibited.

Third line forcing Third line forcing in franchising occurs when a franchisor forces its franchisees to purchase goods or services from a particular third party nominated by the franchisor and no other party without the franchisor’s written consent. For example, Hot Dog Pty Limited will offer franchise agreements on condition that the franchisees buy their hot dog buns from Buns Supply Pty Ltd only.

Strictly speaking, third line forcing is prohibited by the Competition and Consumer Act 2010 (the Act) notwithstanding

90 Business Franchise Australia and New Zealand

businesses may be granted exemptions from the Australian Competition and Consumer Commission (ACCC) which will allow exclusive dealing arrangements when it is satisfied that the public benefit from the conduct will outweigh any anti-competitive detriment.

The ACCC has accepted the following public benefits in assessing third line forcing notifications: • Fostering business efficiency; • Improving product quality; • Promoting competition in relevant markets.

In particular, in circumstances where franchisees can save by buying the product and services from a nominated supplier instead of buying in a competitive market this will be considered to have positive benefits in terms of competition and consumer welfare.

“In a franchise network, where there are tens or perhaps hundreds of franchisees and franchisor corporate owned stores, the size of the orders for the products and services required for the network is exponentially greater.”

Bianca Sevastos, Senior Associate, Baybridge Lawyers.

Full line forcing Full line forcing in franchising occurs when there is a requirement on a franchisee to acquire goods and services exclusively from the franchisor and no other supplier without the written consent of the franchisor. For example, Ink Cartridge Pty Ltd will offer franchise agreements on the condition that franchisees buy their ink cartridges from Ink Cartridge Pty Ltd (or a related entity) only.

Full line forcing will not be a breach of the Act unless engaging in that conduct has the purpose of substantially lessening completion, or is likely to have the effect of substantially lessening competition, in a relevant market.

Recent Case In the recent case of Pampered Paws Connection Pty Ltd v Pets Paradise Franchising (Qld) Pty Ltd (2012), the franchisee (Pampered Paws) brought an action against the franchisor (Pets Paradise) for engaging in exclusive dealing in relation to the franchise. The franchisor granted a franchise agreement to the franchisee to sell pets and pet accessories. The franchisee was required to purchase such pets and pet accessories from a particular supplier nominated by the franchisor, which was a related entity of the franchisor. Initially, it was found that the franchisor had breached the exclusive dealing provisions of the Trade Practices Act 1998 (TPA) by forcing its franchisees to purchase ‘allocated stock’ from its related entity. Notwithstanding, the court then acknowledged that the applicable provisions of the TPA were subsequently amended in 2006 to allow related entity exclusive dealing and the franchisor was therefore not in breach of the relevant provisions.

Your obligation to purchase products and services from nominated suppliers Most franchisors will require its franchisees to purchase the approved products and services from a supplier or suppliers nominated by them. While such requirement may seem restrictive from the outset, in good franchise systems this arrangement is mutually beneficial to both the franchisor and franchisee.

As an independent business owner your capacity to purchase products and services at discounted rates is limited by the volume of the goods and services required for the operation of your business. In a franchise network, where there are tens or perhaps hundreds of franchisees and franchisor corporate owned stores, the size of the orders for the products and services required for the network is exponentially greater. The volume of the orders will mean that the franchisor will have the power to negotiate significant volume discounts from the suppliers which may be passed on to franchisees. The end result is a competitive advantage that results in higher operating margins for each franchisee.

Another reason why a franchisor may wish to nominate the supplier of products and services is for quality control and consistency throughout its network. The franchisor will have spent considerable time and effort establishing its brand and creating a reputation in the market place by developing a recognisable standard throughout its network. The franchisor will want to protect the integrity of its brand by ensuring its franchisees maintain that standard and one way to do this is ensuring that all products and services offered by its franchisees are from approved suppliers.

Most franchise agreements contain provisions which will enable the franchisees to purchase products and services from an alternate supplier. It is likely that these provisions will stipulate that any products and services from an alternate supplier will need to meet the standard and quality of the franchisor and that the alternate supplier can supply the quantity of the stock required for the franchise network among other requirements.

Role of the ACCC The ACCC plays a key role in the franchising sector. It is responsible for promoting compliance with the Act, including Australian Consumer Law, and the Franchising Code of Conduct (the Code) through education, liaison and, where necessary, enforcement action. The ACCC has the power to audit franchisors for compliance and can require a franchisor to provide any documents it is required to keep, generate or publish under the Code. The ACCC is able to conduct random audits and does not need to suspect that the franchisor may have breached the Code before conducting its audit. Notwithstanding, in the ACCC’s submission to the 2013 Franchising Code review it stated that the ACCC had served audit notices on 33 franchisors.

The vast majority of these franchisors had been found to be compliant with the Code following these audits.

Baybridge Lawyers is a specialist corporate and commercial law firm and a leading authority on all franchise related matters.

They are seen as trusted advisors to many brands nationally and internationally.

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

Business Franchise Australia and New Zealand 91

e x pert a A dv ice

Evolution of Territory Planning Creating a Territory Plan or having Preferred Marketing Areas (PMA) is a desire of most franchise systems, however evolving into a good system can be a nightmare.

Most Territory Planning exercises we handle begin from the ‘Beer and Pizza’ approach, and in many cases have evolved at people’s discretion. The ‘Beer and Pizza’ approach is normally when a group of management (and some franchisees), converge around a map on a Boardroom table with beer, red wine, a couple of pizzas and a black crayon, and some good ideas! Inevitably, it is built around where existing stores are, or where dominant franchisees want to have as their exclusive territory. The downside is uneven opportunity in territories, overlaps and spaces in between, which we call no man’s land.

Whilst the areas may look similar in square kilometres, the content in terms of business, numbers of people and how they suit the product being sold is normally extremely uneven.

What do we call our areas?

The first issue I normally discuss with franchisors is that they call their areas what they actually are. If you have a service

92 Business Franchise Australia and New Zealand

“Whilst the areas may look similar in square kilometres, the content in terms of business, numbers of people and how they suit the product being sold is normally extremely uneven.”

Peter Buckingham, Managing Director, Spectrum Analysis.

business, and you allocate leads or jobs, such as a finance business, a repair business or a cleaning business, then in my view, you are giving a territory.

If you have a fixed business (a shop or store) we recommend you do not call it a territory, however if you do give a prescribed area, then call it what you want it to be. For example many clients use the term Preferred Market Area (PMA), or if it is so no other store will be nearby, call it an ‘exclusion zone’.

potential client chooses to contact you from outside the territory or PMA, then you can supply or service the opportunity from what we call the Passive area. The classic is the finance industry, where you may do a deal for someone in your active territory and then a relation or friend comes to you as a referral, and you can still do their loan, even if it is outside your area. With electronics and the web, a loan writer in Sydney can easily do a loan for Cairns without having to go there, or physically deliver anything.

Territories or no territories?

Territories for a service business

In many brands, you find there is no territory, and the franchisor has no intention of giving one. In a major shopping centre, your territory or exclusion zone may be quite reasonable in that the Franchisor agrees that you are their sole representative for that Centre. In some cases such as in Lotteries, you cannot expect that, as in big shopping centres, there may be two or three outlets these days. When in the oil industry, no petrol company ever gave territories.

So whilst we advocate that not everyone needs to have territories, we do have many cases where not only does the customer come to you, but you deliver to the customer. For example, the pizza business such as Eagle Boys, Dominoes and Pizza Hut need to have a designated area for deliveries, and they tend to call these territories.

Active and Passive marketing In many cases where boundaries are rather irrelevant as far as the customer is concerned, the leading franchise systems talk more in terms of active marketing and passive marketing. The best description for a business is you can drop flyers, run advertisements, billboards, sponsorship, etc in your Active area (which is normally your Territory or PMA). On the other hand, if a

Most service businesses are not reliant on a central store, or where the franchisee lives. What they rely on is that there is sufficient business in the defined area for the franchisee to make a living. In these cases, you can plan the territories fairly well, early in the franchise system’s development, as the physical location of a store, or the franchisee’s residence should not be an issue.

For example when working with two of the major banks, we did the territory design for their mobile lending arms, and that has been stuck to religiously for quite a few years.

Each territory was made to offer similar ‘sales potential’, and then when Franchisees applied to take on a territory, it was already mapped, measured, locked and loaded.

Planning for a delivery type operation

have?” and “where should I place them?” At a concept stage, this can mean territories can be drawn so that the Board of Directors can approve the concept, the map is available for the Franchise Expos, and potential franchisees have a starting point to visualise.

Call this draft one!

The second stage commences as sites are found, and delivery areas are defined.

One pizza system we are working with is expanding rapidly, and it is only when they go into an area that they define a small shopping strip that suits them. If they then secure a site in the strip, we have to define the territory around the store. In most draft territories, there may be one or two major strips and up to 15 or 20 small strips. Their basic parameters for selecting a strip are: • Small strip for lower rental • A vacant shop available

• Good parking for customers and delivery vehicles to work with • No other pizza supplier in the strip (or immediate area).

So the stages we now work in are: • Draft mapping to look at the ideal situation.

• Identify all the strips in the area, down to small strips of 6 – 10 stores.

• Allow them to select and negotiate a suitable store.

• Build the territory centred around the proposed store.

We do the territory planning for many franchise systems where we have to ask “What comes first, the chicken or the egg?”

In our view this becomes ‘progressive territory planning,’ where there may be a two stage process. The second stage evolves as the network is rolled out.

How do we identify small strips?

The first stage normally begins with the questions “how many territories should I

The first way is to go to the area, and drive up and down every street! Unfortunately

• Include the new territory in the agreement.

• Keep a master map so that you do not have any overlaps or ‘no man’s lands’ as the network develops.

Business Franchise Australia and New Zealand 93

e x pert a A dv ice

you do not know what you do not know, and how do you find it? This seems a good way to wear out a hire car, and keep the oil companies in business.

Using a business database of around 630,000 businesses in Australia, we have been able to identify some 5,500 strips across Australia, where we see on our mapping at least three retail type businesses. Once we can map the location, you can add your existing stores and your competitors and then sitting comfortably at your desk, you can use Google Maps and Google Street view to have a look at each strip.

This takes far less time to run around a territory (via your computer) than travelling and driving in areas you are unfamiliar with.

Hopefully now you can create a short list that the relevant property manager can take with them to then view the main prospects.

Business potential of an area As part of the process, we should identify what are the demographic features that are favourable or unfavourable to the product we are selling. This can be done by some research and analysis, or if we are new in our development, there are normally some realistic assumptions we can initially make.

If we believe the area is favourable for our products, then we probably need less households or people around our business to generate a good business. If the demographics are unfavourable, then we will need above average numbers to make a business successful.

Mapping a territory All these things should be taken into account when forming the territory or PMA you will be using in the future. Once identified, we strongly recommend it be mapped, and the map is included in the franchise agreement for clarity in the future.

We do not recommend a list of postcodes or suburb names, as these do change with time, and create problems in the future. Roads and other physical boundaries shown on a map do not move â&#x20AC;&#x201C; well maybe they do in a couple of hundred years, but well outside the scope of a franchise agreement. If there is a move such as a new freeway, or a postcode moves its boundary, you have a clear starting point to work from.

Summary Progressive Territory Planning is required for some business types, however a pure service business can normally be mapped early in its development and then remain unaltered for many years to come. If your Franchisor cannot deliver you a proper map with some logic or explanation on how your territory was developed, then you must seriously ask about their competency for the future.

Peter Buckingham is the Managing Director of Spectrum Analysis Australia Pty Ltd, a Melbourne based mapping

94 Business Franchise Australia and New Zealand

and statistics consultancy, a Certified Management Consultant, and Victorian Chapter President of the Institute of Management Consultants.

Spectrum specialises in assisting clients with decisions relating to retail location, using various statistical techniques.

For more information contact: Phone: 03 9882 6488 Email: peterb@spectrumanalysis.

com.au

Franchise BUSINESS

AU S TR A LI A A N D N E W Z E A L A N D

DO YOU WANT TO STAY INFORMED ABOUT WHAT’S HAPPENING AT THE FOREFRONT OF FRANCHISING?

WANT TO STAY ON TOP OF THE LATEST NEWS? SUBSCRIBE TO Business Franchise Australia and New Zealand’s newsletter and receive all the latest franchising news delivered straight to your inbox, every week!

To subscribe visit www.businessfranchiseaustralia.com.au Business Franchise Australia and New Zealand 95

PROFILE : Th e Concr e t e Cu t t er

The Concrete Cutter an established Franchise on the market

The Concrete Cutter was established by Bruce Miskin, who has almost twenty five year’s experience in the concrete cutting industry.

Bruce is responsible for the training schedule of all franchise business owners thus ensuring you have a competent concrete cutter servicing your job. Regular franchise meetings are conducted where the latest techniques are communicated.

At these meetings emphasis is placed on the importance of upholding The Concrete Cutter brand name to ensure the continuance of high standards.

With owner operators living throughout 13 Melbourne territories, The Concrete Cutter is uniquely positioned to deliver top customer service.

Considerable cost savings result from group purchasing power and combined advertising.

Further to this the defined franchise territories result in maximum fuel savings and vastly reduced travel times.

Brad Moore, who owns the Doncaster franchise servicing Melbourne’s east, has been with The Concrete Cutter for ten years.

“It’s a great concept. It’s been good for me. I came in not long after it started,” Brad said.

Establishing his business took hard work and he admitted there were tough times. “I used to stress a little when I was busy and had trouble passing jobs on to the others. Often they were busy as well. One or two run their businesses at a leisurely pace and can be

choosey about taking on extra work. I’ve just learned to accept it and do what I can do.

“When I think about it, there are probably many businesses that would love to have a problem like that.” he said.

There are many reasons why customers get their concrete cut and The Concrete Cutter offers a variety of applications to their customer base. “We cut a lot of joints in new concrete to control cracking; everything from back patios to factory floors. We cut up unwanted concrete slabs and driveways for removal or replacement. We cut kerbing for vehicle cross-overs and cut up damaged cross-overs and paths. We do trenches and openings for builders, plumbers and electricians and a hundred different jobs for home owners,” he explained.

After ten years with The Concrete Cutter, Brad Moore has decided to sell his business.

He is quick to point out what an enjoyable experience he found being a franchisee with The Concrete Cutter.

“Doing a good job for the customers has been satisfying,” he said.

“Also, the sense of achievement in prospering in my own business and providing for my family has been very rewarding. My wife is now expecting our fifth child. Even after ten years, some mornings I set off and I’m singing. It’s like an inner sense of wellbeing comes over me,” he continued.

Brad says it has been a hard decision to sell the business that he worked so hard to build over ten years, and one that he has not taken lightly.

“An opportunity has come up in a parallel field. I just hope I’m doing the right thing,” he said.

96 Business Franchise Australia and New Zealand

Brad is asking $295,000 for his established franchise. This includes the vehicle and additional equipment.

“The turnover last year was $175,000. That was down a bit because we’ve been building a new home and it’s been a distraction,” he said.

In response to the opportunity arising from Brad’s decision to sell his business, franchisor Bruce Miskin had this to say: “Brad has been fantastic. I’d love it if the next dozen franchisees came from the same mould. He’s got a great work ethic and great people skills. He’s also a planner and an analyser. I remember in the early years he would keep performance records on every diamond blade we tried,” Bruce said.

For the new owner of the Doncaster territory, Bruce continued, “My advice would be to negotiate to have Brad stay on for a while.

Normally a new franchisee in a new territory gets a gradual start. In this case, it will be full-on from day one. Four weeks training will never produce a ten year veteran.

“Whatever happens, we’ll ensure the new franchisee doesn’t get over run,” said Bruce.

The Concrete Cutter seeks to expand in all states and invites enquiry. “Ready to go” Victorian territories are available in Geelong, Werribee, Sunshine, Lilydale, and Pakenham. Others may be available as a going concern (eg. Dandenong).

For further information contact: Bruce Miskin, Franchisor Phone: 0499 399 355 Email: bruce@theconcretecutter.com.au Web: www.theconcretecutter.com.au

Only leaves one box to tick It’s Simple

No costly fitouts, no staffing problems, no real-estate leases.

It’s Fair

Franchise royalties are $150 p.w + gst.

You keep the profits from extra effort.

It’s Effective

Advertising royalities are $60 p.w + gst.

They are pooled for maximum buying power.

It’s Affordable

Your investment of $45,000 + gst includes equipment, sign writing, uniforms, stationary & training. You supply a suitable white vehicle, it need not be new.

It’s Proven

Eight of our nine franchisees have been operating for between six and eleven years.

It’s Profitable

Most of these established franchisees frequently take above $2,500 p.w (conservative)

It’s Your Move

If you’d like to learn more phone Bruce Miskin on 0499 399 355

Dollar for dollar The Concrete Cutter offers great value among the ‘man & van’ franchises

Bruce Miskin 0499 399 355 Email: bruce@theconcretecutter.com.au

www.theconcretecutter.com.au Business Franchise Australia and New Zealand 97

e x pert a A dv ice

Online Marketing for Franchise Businesses Social media offers the perfect opportunity for franchise businesses to enhance their relationship with customers and prospective franchisees.

Capitalising on social media does not mean spreading a business or brandâ&#x20AC;&#x2122;s presence across as many applications as possible.

Franchise businesses should be strategic about which applications can increase their visibility to their customers. It is important to analyse your customersâ&#x20AC;&#x2122; browsing and buying behaviour before deciding which social media platform will be most useful to connect with them and tell them about your brand.

98 Business Franchise Australia and New Zealand

Relevance is Key The target market and the content that influences them and their decisions determine the relevant social media platform for a business. Facebook, Twitter and Pinterest are great examples of applications that are likely to connect you to potential customers, particularly those who consume social media at a rapid rate.

Pinterest is a virtual pin board which can

“Franchise businesses should be strategic about which applications can increase their visibility to their customers.”

Ben Bradshaw, Founder and CEO, SponsoredLinX.

to your website when further information is required.

Engaging on Social Media Franchise businesses interacting with their customers using Twitter or Facebook ultimately increase consumer advocacy.

All social media accounts should be linked to one central hub of information – a franchisor’s website.

be utilised to post images of the goods you provide, locations of your franchises and links back to your website, promoting referral traffic. Photos of what you offer customers can be labelled under categories, and as friends share images you have posted, the images will also reach a broader range of users. Pinterest is a targeted social media platform which promotes the sharing of content, primarily images but also video.

Existing and potential customers are more likely to engage with you online when you connect with them and provide visual content and information relevant for them that they can access easily. For franchise businesses, a blog is the perfect social media tool to post advice and interesting information for potential customers and is likely to drive hits

Franchise businesses across Australia should prepare now before Facebook Graph Search is rolled out in Australia, as it has the potential to revolutionise the way businesses engage with customers online. Essentially, it is Facebook’s own search engine and it uses friends, their interests and ‘likes’ to answer search queries. If your franchise business has a Facebook page, Graph Search will allow you to research potential customers and search phrases such as ’people between the age of 25 and 35 looking for coffee’. This can provide your brand with very valuable consumer insight.

For a social media and online strategy to effectively influence potential target consumers, franchise businesses should have a clear promise of delivering on service, quality and value. By aligning themselves with a promise, franchise businesses will be more capable of putting out consistent messages to attract the right customers.

Connect to your customer Every franchisee needs to be across the target audience, competitors and external

factors, such as changes in regulation or changes in the buying behaviour of your target market. Knowing what content your competitors are posting online and which online campaigns are effective is invaluable too. Knowing your customer will help guide you on how to capture their attention online.

Mobile marketing is growing at an exponential rate. People are using their smart phones to source information instantly and to find businesses, products or services online. The ability to connect with potential customers through mobile marketing is growing rapidly in line with the growth rate of people searching online for consumer products. Mobile friendly websites will allow a business to specifically connect to consumers who are actively searching for particular goods or services. Having a mobile friendly website will capture these consumers while they are on the go.

Ben Bradshaw, founder and CEO of multiaward winning online marketing company SponsoredLinX, recognises that marketing via social media can also directly translate to an increase in customers. As an entrepreneur who built his business from a one-man team to Australia’s largest online marketing company, Ben attributes his success to online visibility.

Phone: 1300 859 600 Email: contact@sponsoredlinx.com.au Web: www.sponsoredlinx.com.au

Business Franchise Australia and New Zealand 99

hot to pics

Behind the

headlines ACCC pursues tax franchise over misleading job/franchise recruitment ads The Australian Competition and Consumer Commission (ACCC) has commenced proceedings against three companies associated with tax return franchise TaxSmart, its director and an employee for misleading representation over recruitment advertisements.

Taxsmart is alleged to have advertised for graduate accountants, who after a 12-month trial period, would qualify to become tax agents and therefore franchisees within the Taxsmart system.

The ACCC alleges that the job applicants were required to pay upfront sums of between $45,000 and $80,000 on the unfulfilled promise that they would become registered as tax agents and qualify for a Taxsmart franchise at the end of a 12-month supervision program, however a number had their employment terminated early and were not given refunds

Telco franchise lists on stock exchange; Exits NZ market Inabox Group, the rebranded parent of Telcoinabox, successfully launched on the Australian Stock Exchange on July 12 after a public offering raised $3.5 million. The offer was oversubscribed and the company had to limit applications for shares.

It has also exited the New Zealand market by selling its business there to a local network provider for an undisclosed sum.

At the same time as the public offering, Inabox completed its acquisition of wholesale VoIP provider iVox, and plans further development including cloud-based services and virtual private networks.

Pasta company buys Byron Bay Cookies from receivers A family-owned pasta company that has operated for more than 100 years has bought the trademarks and assets of the Byron Bay Cookie Company, which collapsed into receivership in April this year barely a week after announcing ambitious international expansion plans.

The fledgling franchise had its manufacturing business placed in receivership due to unpaid taxes of more than $1.2 million claimed by the Australian Tax Office (ATO). The company’s former chairman announced plans to expand to the United States and the United Kingdom, just days before being put into receivership by the ATO for unpaid taxes and superannuation.

New owners Rinoldi Pasta are based in Melbourne and manufacture a range of pasta products and snack foods, and export their products throughout the world.

NZ drive-thru coffee concept found to have copied Australian system’s trademark The High Court of New Zealand last week found that Auckland drive-through coffee business Jitta Buzz deliberately copied elements of Australian drive-through coffee franchise Muzz Buzz, including the brand, business façade and website.

The Australian business spent around $150,000 defending its trademark, and will recover some of this from Jitta Buzz, which has since removed its website and Facebook page.

The court action is a reminder to all franchisors to ensure that their trademarks and intellectual property are protected, and that legal action may be necessary to ensure these rights are not infringed.

100 Business Franchise Australia and New Zealand

Jason Gehrke, Director, Franchise Advisory Centre.

ACCC recommences proceedings against nine Harvey Norman franchisees The Australian Competition and Consumer Commission (ACCC) has recommenced legal proceedings against nine franchisees of retail chain Harvey Norman who are alleged to have misled customers about their rights to refunds, or to have defective products repaired or replaced.

The stores are spread across Queensland, Western Australia and Victoria. The ACCC alleges that the franchisees engaged in misleading or deceptive conduct by making false or misleading statements to consumers about their rights under the consumer guarantee provisions of the Australian Consumer Law (ACL).

Proceedings against the nine franchisees, plus another in New South Wales and one in Queensland that has since ceased to operate were originally launched in the Federal Court in New South Wales in November last year.

However the original proceedings were disallowed as a group action, with the court determining that the action should be lodged against each respondent in their respective home state.

While the case against the New South Wales franchisee was allowed to proceed at the time, the ACCC has had to institute new proceedings against the remaining franchisees.

“While the ACCC does not allege that Harvey Norman Holdings Limited is involved in making of these representations, the fact that the allegations made by the ACCC relate to a number of its stores in widespread locations across Australia is of great concern to the ACCC, and I expect to Harvey Norman too,” said ACCC chairman Rod Simms

PROFESSIONAL SERVICES LISTINGS

HARMANS LAWYERS

Liston Landers

485 Papanui Road, Christchurch P +64 3 352 2293 F +64 3 352 2274 Contact Mark Sherry or Alan Prescott E mark.sherry@harmans.co.nz www.harmans.co.nz

242-246 Glenferrie Road, Malvern VIC 3144 P 03 9509 0366 F 03 9509 3076 Contact Shaun Newton or Kieran Liston

If you’re considering buying a franchise you need the legal confidence that the agreement is fair and ethical. Getting the right legal advice early is essential, and that’s where the knowledgeable Harmans team of franchising experts can help.

www.listonlanders.com.au

Our extensive experience in all aspects of franchising, across a wide range of industries, will provide you with the advice you need to more forward with confidence. We have acted for franchisors and franchisees over many years and know the advantages of franchising and pitfalls to watch out for.

Our Franchising Team can assist with a full range of franchise related services, including: - Legal rights and obligations under franchise documentation - Business structures and asset protection structures - Financing issues - Employment issues and health and safety - Lease arrangements and agreements - Terms of trade - Dispute resolution We are members of the Franchise Association of New Zealand

E shaun.newton@listonlanders.com.au E Kieran.liston@listonlanders.com.au

We can help you to make strategic and successful franchise decisions. We are: Experienced: A Chartered Accounting and Financial Advisory Firm, acting in the best interests of clients (in Melbourne and regional Victoria) for over 30 years.

Recognised as leaders in the field, with representation on the panels of ‘Big Four’ banks and Franchise Council of Australia membership.

Providers of a complete franchise solution: • Valuations (APES 225 compliant).

• Establishment, expansion and recruitment advice for franchisors.

• Selection, evaluation, purchase/sales and tax advice for franchisees.

• Provision of annual tax and compliance services.

• Independent appraisals.

• Analysis of goals, risks and benefits.

Knowledgeable: with a detailed understanding of over 30 franchise systems, and an ongoing commitment to continuing professional development.

Reliable: providing valuation assurances to your financier and a five-day valuation turnaround.

Client-focused: Direct and after-hours access to partners, professionalism and empathy for individuals and businesses.

Committed to helping our clients achieve a lifetime of financial independence.

Contact us today.

Revive Projects

Wisewould Mahony Lawyers

77-79 Canterbury Road, Canterbury VIC 3126

419-425 Collins Street, Melbourne VIC 3000

P 1300 836 863 F (+613) 9886 5371 Contact Maria Abadilla

P 03 9629 8333 F 03 9629 4035 Contact Robert Toth

E admin@reviveprojects.com.au www.reviveprojects.com.au Let Australia’s award-winning franchise marketing agency Attract + Engage + Retain your customers If you’re a franchise or considering expanding your business into one, you need solid marketing support. In-house marketing is expensive, and a small in-house team can only do so much. It’s also hard to keep the idea-well fresh all the time.

Revive Projects has been helping franchises attract, engage and retain customers since 2007. Our multi-talented, hand-picked team of senior marketing executives, copywriters and PR specialists develops integrated and outcome-focussed solutions by catering to your unique business needs.

As our clients, you get: • Increased visibility among your prospects

E robert.toth@wisemah.com.au Lawyers in love….with Franchising www.wisewouldmahony.com.au 25 Years of Specialised Franchise Industry Knowledge Member Franchise Council of Australia (FCA), International Franchise Lawyers Association (IFLA), Franchise Association of New Zealand (FANZ) & US Commercial Service.

FIXED COST FEES to Franchisors & Franchisees based on scope of works. No hourly rate surprises!

Services Provided • Legal and consulting advice to Franchisors & Franchisees • Code compliance requirements

• Franchise sales acquisition

• Dispute resolution – mediation – strategies & solutions

• Targeted Local Area Marketing

• Employment Law and Workplace Relations Specialists

• New market entry plan and execution • Advertising & Promotions

• Sale/Purchase of Franchise Systems

• Online marketing strategy

• Master Franchising

• Social media training delivered to your team

• Business Law Specialists

• Web and copywriting that converts

• Raise your Public Relations profile when you don’t have the time to do it Contact us today for your free copy of 5 Secrets of Facebook Marketing.

• International Franchising Call or email for a complimentary brochure for Franchisors & Franchisees

Business Franchise Australia and New Zealand 101

FRANCHISE LISTINGS FRANCHISE 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

NATURE OF BUSINESS

OUTLETS

ASSOC MEMBER

INITIAL FEE

MIN INVEST

ELECTRICAL TEST AND TAG

37

FCA

$32,500

$47,000 + GST + Vehicle

COMMERCIAL SEATING ERGONOMICS RETAIL HEALTHCARE

6 (@1/7/12)

FCA

$50,000

$150,000 + (DEPENDENT UPON SITE CONDITIONS)

BAKERY RETAIL BUSINESS

630 across AUS & NZ

FCA & FANZ

-

$30% or $150,000

RETAIL OF BATTERIES AND PORTABLE POWER ACCESSORIES

79

FCA

$49,900 + GST

$250,000 + GST

BEAUTY AND CUSTOMER SERVICE EXCELLENCE

15

FCA

$45,000

$250,000 - $350,000

BRIGHT EYES FRANCHISING PTY LTD “The Dock – Retailer House”, Level 1, Unit 3, 321 Kelvin Grove Road, Kelvin Grove QLD 4059 Ph: 1800 178 251 Fax: 07 3056 3322 Email: enquiries@brighteyes.com.au Website: www.brighteyes.com.au

SUNGLASS RETAILER

47

Franchise Council of Australia

POA

Varies from store to store

CAFE 2U Building 7, 81 Frenchs Forest Road, Frenchs Forest NSW 2086 Ph: 1300 223 328 Email: franchises@cafe2u.com.au Website: www.cafe2u.com.au

MOBILE COFFEE VANS

Over 200 worldwide

FCA, FANZ, IFA

INITIAL FEE INCLUDED IN PURCHASE PRICE

FROM $129,990

CHIPMUNKS PLAYLAND In Port Building, 9-13 George Street, Port Chalmers 9023 Dunedin NZ Ph: +64 3 472 8480 Email: info@chipmunksplayland.com Website: www.chipmunksplayland.com.au

PLAY AREA AND CAFÉ

34

-

POA

POA

FCA

POA

POA

BACKCARE & SEATING 4 Guilfoyle Ave, Coburg VIC 3058 Ph: 03 9353 0500 Fax: 03 9353 0599 Email: mark.c@backcare.com.au Website: www.backcare.com.au BAKERS DELIGHT Level 1, 293 Camberwell Road, Camberwell VIC 3124 Ph: 1300 309 759 Email: franchiserecruitment@bakersdelight.com.au Website: www.bakersdelight.com.au BATTERY WORLD AUSTRALIA PO Box 46, Brisbane Market, QLD 4106 Ph: 07 3373 1764 Fax: 07 3373 1770 Email: admin@batteryworld.com.au Website: www.batteryworld.com.au/franchising BRAZILIAN BEAUTY (AUST) PTY LTD 45 Crosby Road, Albion QLD 4010 Ph: 07 3262 8984 Fax: 07 3857 6212 Email: headoffice@brazilianbeauty.com.au Website: www.brazilianbeauty.com.au

CORAL HOMES 36 Laver Drive, Robina QLD 4226 Ph: 07 5585 2555 Fax: 07 5585 2500 Email: franchising@coralhomes.com.au Website: www.coralhomes.com.au

NEW HOME CONSTRUCTION 30+corporate outlets

CREMA ESPRESSO 118 Varsity Parade, Varsity Lakes QLD 4227 Ph: 07 5562 5516 Fax: 07 5562 5543 Email: antony@cremaespresso.com.au Website: www.cremaespresso.com.au

PREMIUM CAFÉ FRANCHISE

ELLA BACHÉ 2 Lambs Road, Artarmon NSW 2064 Ph: 02 9432 5016 Fax: 02 9439 6267 Email: michelle@ellabache.com.au Website: www.franchise.ellabache.com.au

SKIN CARE, BEAUTY INDUSTRY

ENERGIS 17 McClure Road, Kensington Melbourne VIC Ph: 1300 782 217 Mobile: 0407 105613 Email: franchise@energis.com.au Website: www.energis.com.au/franchise

SOLAR & ENERGY PRODUCT DISTRIBUTION

-

DIGITAL STRATEGIES AND SOLUTIONS

9

Franchise Council $45,000 + GST Incl. Training of Australia

160+ Franchise Council Nationally of Australia (FCA)

Dependent on Site conditions $250k$450K

$22,000

$100,000 - $300,000

-

-

$95,000 + GST

5

-

From $20,000 +GST

$50,000 +GST

AUTHENTIC ITALIAN FAMILY FOOD FRANCHISE

39

Franchise Council of Australia

$50,000 + GST

$650,000 - $950,000

FASTWAY COURIERS AUS Level 9, 491 Kent Street, Sydney NSW 2000 Ph: 02 8263 3900 Fax: 02 9264 4966 Email: fso@fastway.com.au Website: www.fastway.com.au

COURIER SERVICE

650+

FCA & FANZ

From $25K+GST

$25K+GST

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

COURIER SERVICE

250+

FCA & FANZ

$10K

$10K

WOMEN’S HEALTH & FITNESS CLUBS

75

$55,000

$450,000

AUSTRALIA’S LARGEST BOOKKEEPING FRANCHISE

150

FCA, AAT, Inst.

Of Certified Bookkeepers

$32,000 + GST

$38,000 (Franchise fee & equipment)

FLASH BY MORFFEW PO Box 626, Potts Point NSW 1335 Ph: 0416 225 311 Fax: 02 9389 8816 Email: mark@morffewphotos.com Website: www.flashbymorffew.com

POP-UP KIDS PHOTOGRAPHIC STUDIO

5

n/a

n/a

$80,000

FLIP OUT TRAMPOLINE ARENA 80 Mulgoa Road, Penrith NSW 2750 Ph: 1300-FLIP OUT Email: brent@flipout.net.au Website: www.flipout.net.au

TRAMPOLINES, BALL GAMES, EVENTS

-

-

Upfront $33,000 $127,000

Upfront $33,000 $127,000

MOBILE FRANCHISE – HATCHING PROGRAM DELIVERY

10

-

$10,000 (Incl. in cost)

$32,600

IN-HOME CARE FOR SENIORS

19

Franchise Council $52,000 inc GST of Australia

$80,000

INXPRESS Unit 1/26 Flinders Parade, North Lakes QLD 4509 Ph: 1300 469 773 Fax: 1300 030 066 Email: sales.au@inxpress.com Website: www.inxpress.com.au

COMPETITIVE GLOBAL EXPRESS FREIGHT FRANCHISE

200+ franchises across 15 countries

FCA

$45,000

$45,000

JESTERS FRANCHISING PTY LTD Unit 1, 34 Prindiville Drive, Wangara Ph: 08 9309 2200 Fax: 08 9309 2199 Email: information@jesters.com.au Website: www.jesters.com.au

GOURMET FOOD TO GO

54

-

$40,000

$220,000

FENCE INSTALLATION SERVICES

APPROX 150

MBA, FCA

Included in Purchase Price

From $50,000 + GST

JUMP! SWIM SCHOOLS 6/52-56 Paradise Avenue, Miami QLD 4558 Ph: 1300 429 241 Email: ian@jumpswimschools.com.au Website: www.jumpswimschools.com.au

SWIM SCHOOL

3

-

$40,000+ GST

$180,000 + GST

JUST CUTS™ Level 1, 4-6 Kingsway, Cronulla NSW 2230 Ph: 1800 334 498 Fax: AUS 02 9527 5144 Email: bdm@justcuts.com Website: www.justcuts.com

HAIRDRESSING

175 across Australia & New Zealand

FCA

$38.5K

$160K-$240K

DOMESTIC & COMMERCIAL CONCRETE EDGING

300+

-

POA

POA

COFFEE SPECIALISTS

6

-

-

$180,000 min + GST

LINK BUSINESS PO Box 12 324, Penrose, Auckland New Zealand Ph: +64 9 579 9226 Fax: +64 9 525 1457 Email: kevina@linkbusiness.co.nz Website: www.linkbusiness.co.nz

BUSINESS BROKING, SALES

6

None

From $5,000

-

MAIL BOXES ETC Level 1, 117 Willoughby Road, Crows Nest NSW 2065 Ph: 1800 556 245 Fax: 02 8088 0773 Email: agnes.beugnon@mbe.com.au Website: www.mbe.com.au

POSTAL & BUSINESS SERVICES FRANCHISE

35

-

$50,000

$175,000

MCDONALD’S AUSTRALIA 21-29 Central Avenue, Thornleigh NSW 2120 Ph: 02 9875 6666 Email: franchising@au.mcd.com Website: www.mcdonalds.com.au

QUICK SERVICE RESTAURANT/FOOD & BEVERAGE

900+ restaurants

FCA

$60,000 for 20 year term

$500,000+

NATRAD 40 Overseas Drive, Noble Park VIC 3174 Ph: 03 9795 1255 Fax: 03 9795 0807 Email: haydn.roberts@natrad.com.au Website: www.natrad.com.au

AUTOMOTIVE RADIATORS AND AIR CONDITIONING

80

FCA, VASA

-

-

EXA WEB SOLUTIONS 1/1186 Toorak Road Camberwell VIC 3124 Ph: 03 9092 6699 Fax: 03 9923 6688 Email: biljana.stephens@exa.com.au Website: www.exa.com.au FASTA PASTA PTY LTD Level 1, 137 The Parade, Norwood SA 5067 Ph: 08 8304 8600 Fax: 08 8332 8389 Email: reception@fastapasta.com.au Website: www.fastapasta.com.au

FERNWOOD FITNESS Level 1, 475 Flinders Lane, Melbourne 3000 Ph: 03 9630 8810 Fax: 03 9630 8830 Email: maree.rogers@fernwoodfitness.com.au FIRST CLASS ACCOUNTS Suite 8, 34-36 Glenferrie Drive, Robina QLD 4226 Ph: 1800 118 611 Fax: 07 5578 9028 Email: info@firstclassaccounts.com Website: www.firstclassaccounts.com

HENNY PENNY HATCHING PO Box 1376 Kenmore QLD 4069 Ph: 0402 853 213 Fax: 07 3201 0336 Email: hphdale@hotmail.com Website: www.hennypennyhatching.com.au HOME INSTEAD SENIOR CARE L3 Toowong Tower, 9 Sherwood Road, Toowong QLD 4066 Ph: 07 3720 8400 Fax: 07 3720 8644 Email: franchise@homeinstead.com.au Website: www.homeinstead.com.au

JIM’S FENCING PO Box 686 Mount Martha VIC 3934 Ph: 131 546 Email: franchise.sales@jimsfencing.net Website: www.jimsfencing.net

KWIK KERB PO Box 103, Mt Ommaney QLD 4074 Ph: 1800 773 231 Fax: 07 3717 6777 Email: kkinfo@kwikkerb.com.au Website: www.kwikkerb.com.au LAVA CARTS PTY LTD PO Box 3, Mooloomaba QLD 4557 Ph: 0458 202 649 Email: manager@lavacarts.com.au Website: www.lavacarts.com.au

102 Business Franchise Australia and New Zealand

FRANCHISE LISTINGS FRANCHISE

NATURE OF BUSINESS

OUTLETS

ASSOC MEMBER

INITIAL FEE

MIN INVEST

ASIAN INSPIRED QUALITY NOODLE BASED CUISINE

70 PLUS

FCA

$40,000

$250-$280K

PALEO CAFÉ Suite 3, 140 Mulgrave Road, Cairns QLD 4870 Ph: 07 4225 5388 or 0438 140148 Fax: 07 4031 7472 Email: info@paleo-cafe.com.au Website: www.paleo-cafe.com.au

HEALTH FOOD STORE & CAFÉ

1

FCA

$25,000 + GST

$150,000 - $350,000

PARASERVE (VIC) PTY LTD 3/16 Turbo Drive, Bayswater North, VIC 3153 Ph: 1800 041 876 Fax: 03 9729 7722 Email: csc@paraserve.com Website: www.paraserve.com.au

COMMERCIAL & EDUCATION CLEANING SERVICES

4

FCA

From $15,000

$35,000 Including franchise fee

PLUS FITNESS 24/7 PO Box 76, Camden NSW 2570 Ph: 02 4648 2099 Fax: 02 8572 8222 Email: info@plusfitness.com.au Website: www.plusfitness247.com.au

24 HOUR GYM FRANCHISE

97

IHRSA, FITNESS AUSTRALIA, FCA

$10,000

$289,000 INCLUDING EQUIPMENT

RED ROCK NOODLE BAR Ph: 1300 473 376 Fax: 07 3393 5269 Email: admin@redrocknoodlebar.com.au Website: www.redrocknoodlebar.com.au

ASIAN INSPIRED QUALITY NOODLE BASED CUISINE

12

FCA

$25,000

$180,000 - $220,000

RED ROOSTER FOODS PTY LTD Level 1, Unit 17, 202 Ferntree Gully Road Notting Hill VIC 3168 Ph: 03 9582 8716 Fax: 03 9582 8744 Email: gary.glen@red-rooster.com.au Website: www.redrooster.com.au

FAST FOOD OVEN ROASTED CHICKEN

370+

FCA

$50K

$450K+

RENT THE ROO PO Box 2150, Howrah LPO TAS 7018 Ph: 03 6247 3826 Fax: 03 6247 3853 Email: franchising@renttheroo.com Website: www.renttheroo.com.au

FURNITURE AND APPLIANCE RENTALS

60 territories

FCA

$150,000

$250,000

MATTRESS RETAILER

22

Bulky Goods Assoc/FCA

$40,000

$180,000 - $220,000

SNAP-ON TOOLS (AUSTRALIA) PTY LTD 80 Holbeche Road Arndell Park NSW 2148 Ph: 1800 762 766 Fax: 02 9837 9199 Email: nicholas.hudson@snapon.com Website: www.snapontools.com.au

MOBILE TOOL AND EQUIPMENT STORE

160

FANZ, FCA

$40,000

$37,000 with Snapon finance

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

BEDDING RETAILER

71

Franchise Council of Australia

$50,000

$450,000+

SOCIAL MEDIA MARKETING FRANCHISE

41

-

$49,000 plus GST

Finance Available

SAFETY & DECORATING TO ALL INSIDE & OUTSIDE CONCRETE

80

-

$15,000 (Licence Only)

$75 P/W

CONVENIENCE RETAIL

630+

SUMOSALAD Level 1, 1 Short Street, Leichhardt NSW 2040 Ph: 02 9569 7866 Fax: 02 9569 7811 Email: steves@sumosalad.com Website: www.sumosalad.com

HEALTHY FRESH FAST FOOD

90

FCA

$45,000 + GST

$300,000 PLUS GST

TACO BILL MEXICAN RESTAURANTS 375 Clarendon St, South Melbourne VIC 3205 Ph: 03 9690 2077 Fax: 03 9696 0868 Email: amigo@tacobill.com.au Website: www.tacobill.com.au

MEXICAN RESTAURANT, BAR AND TAKEAWAY

35

Restaurant Catering Victoria

$50,000

$450.000

TELECHOICE 74 Eastern Road, South Melbourne VIC 3205 Ph: 03 8699 2555 Fax: 03 8699 2550 Email: franchise@telechoice.com.au Website: www.telechoice.com.au

RETAIL TELECOMMUNICATIONS

60

FCA

Zero

From $70,000 working capital

THE AUSTRALIAN DRUG DETECTION AGENCY PTY LTD PO Box 300 647 Albany, North Shore City 0752 NZ Ph: +64 9 477 0032 Email: kirk.hardy@tadda.com.au Website: www.tadda.com.au

DRUG TESTING & EDUCATIONAL SERVICES

20

-

POA

POA

MOBILE CONCRETE SAWING

9

FCA Member

$45,000 +GST

Initial fee + vehicle

PROVIDES UNIQUE SPOT FACTORING PROGRAMME

150+ worldwide

FCA, IFA, CFA, Irish FA

$39,000

$50,000+

TRADE & INDUSTRIAL TOOL RETAILER

35

FCA

$50K

POA

UNSCRATCH THE SURFACE Level 10, 50 Market Street, Melbourne VIC 3000 Ph: 1300 500 408 Email: info@unscratchthesurface.com.au www.unscratchthesurface.com.au

GLASS RESTORATION AND PROTECTION PROFESSIONALS

-

-

$35,000 + GST

$55,000 + GST

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

DOMESTIC AND COMMERCIAL CLEANING, GARDENING FRANCHISORS

1100

FCA

$17,500

$25,000

DI BELLA COFFEE MOBILE ESPRESSO VAN

28

FCA (pending)

$10,000

$110,000 + GST

SPECIALTY COFFEE PROVIDER AND FRANCHISOR

62

FCA

NOODLE BOX 13A/663 Victoria Street Abbotsford VIC 3067 Ph: 03 8851 4200 Fax: 03 8851 4277 Mobile: 0416 256 338 Email: franchise@noodlebox.com.au/franchise Website: www.noodlebox.com.au/franchise

SLEEPY’S PTY LTD Unit 9/16 Metroplex Avenue, Murrarie QLD 4172 Ph: 07 3895 4100 Fax: 07 3395 6096 Email: guy.elliott@mattressinvestments.com.au Website: www.sleepys.com.au

SOCIAL MEDIA BUSINESS BOOSTERS 39F The Promenade, Sanctuary Cove QLD 4212 Ph: 1300 298 898 Fax: 07 5577 8266 Email: max@socialmediabusinessboosters.com Website: www.SocialMediaBusinessBoosters.com 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 STAR MART - CALTEX AUSTRALIA 2 Market Street, Sydney NSW 2000 Ph: 02 9250 5000 Email: franchdev@caltex.com.au Website: www.caltex.com.au

THE CONCRETE CUTTER (FRANCHISING) PTY LTD 2 Cormorant Parade, Pakenham VIC 3810 Ph: 0499 399 355 Email: bruce@theconcretecutter.com.au THE INTERFACE FINANCIAL GROUP Level 14, Lumley House, 309 Kent Street Sydney NSW 2000 Ph: 1300 940 908 Email: ifgau@interfacefinancial.com Website: www.interfacefinancial.com.au TOTAL TOOLS 19 Grimes Court Derrimut VIC 3030 Ph: 03 9394 4300 Fax: 03 9394 1699 Email: newstores@totaltools.com.au Website: www.totaltools.com.au

XPRESSO MOBILE CAFÉ 35 Railway Terrace, Milton QLD 4064 Ph: 1300 655 559 Fax: 1300 655 569 Email: jonathan@xpresso.com.au Website: www.xpresso.com.au ZARRAFFA’S COFFEE 1/54 Siganto Drive, Helensvale QLD Ph: 07 5500 0800 Fax: 07 5500 0900 Email: franchise@zarraffas.com Website: www.zarraffas.com

Franchise Council $150k to $800k of Australia

$200k

$50,000-$75,000 depending on $400,000 - $600,000 store

A-Z Listings are a great way to promote your business For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au

Business Franchise Australia and New Zealand 103

A-Z FRANCHISE DIRECTORY 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 10 years experience, ATS are Australiawide specialists in Electrical Testing and Tagging in accordance with AS/NZS 3760:2010. Providing expert technical, admin, business and sales support, access to our National client base and comprehensive on and off-site training, ATS are committed to helping its franchisees grow profitable and successful businesses.

BATTERY WORLD AUSTRALIA Australia’s leading battery retailer Battery World is offering qualified individuals a unique retail opportunity with a great growth potential.

Battery World stores carry batteries for everything from mobile phones and laptops to vehicles and boats. With 79 stores throughout Australia we are the largest and most comprehensive retail franchise network focused on the battery category.

Brazilian beauty Welcome to the Brazilian Beauty franchise model where beauty and brains meet. Proven to have successful franchisees from an array of backgrounds embracing the beauty industry and the Brazilian Beauty brand to create profitable lifestyle businesses that engage, challenge and motivate.

Proven operational systems, award winning marketing and advertising; team and individual guidance; training and personal development;

BrightEyes Sunglasses Established in 1985, BrightEyes Sunglasses is one of Australia’s largest sunglass retail networks, with over 47 locations nationwide.

S UNG L AS S E S

Our genuine passion towards enhancing Australia’s active lifestyle makes us the experts on fashionably functional eyewear. At BrightEyes we’re not simply selling sunglasses; we’re selling an enhanced way of life.

The BrightEyes Sunglasses product range is extensive and showcases the latest styles from

CAFE2U Cafe2U is Australia’s first and most successful mobile café system.

With over 200 franchises worldwide the business is rapidly growing due to a simple and proven business model.

Cafe2U franchisees now have access to the unique “Acceleration Package” which fast-tracks success.

This includes an experienced Franchise Development Manager to launch the business alongside the new franchisee in their own exclusive territory.

Cafe2U builds a customer run that delivers a minimum of $500.00 a day before the Franchisee operates solo.

104 Business Franchise Australia and New Zealand

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 the FCA - Emerging Franchisor of the Year 2011.

For further information please contact Steve Wren, National Sales Manager on 1300 287 669 or visit www.appliancetaggingservices.com.au

If you want to invest your time and money in a powerful franchise, Battery World offers a unique opportunity to tap into an ever-growing market.

A select number of franchises are currently available throughout Australia for motivated individuals with strong communication skills and a background in customer service.

For further information about Battery World contact 07 3373 1764 or visit www.batteryworld.com.au/franchising.

weekly in salon and monthly group meetings are all part of the package.

“At Brazilian Beauty we work together to share our knowledge, ideas, passion and goals to gain a competitive advantage over all other beauty competitors.” Francesca Webster, founder.

Visit us at www.brazilianbeauty.com.au and www.salonfranchise.com.au. Call 07 3262 8984 today and take the first steps towards making your business dream happen.

leading international brands such as Ray-Ban, Oakley, Arnette, Revo, Maui Jim, Bolle, Prada and Vogue (to name a few). We are also proud to market our unique house brands including Mangrove Jack’s, Stiletto, Nicole’s, Attitude and Urban.

If it’s a fantastic franchise opportunity you are looking for, backed up by proven operational, product and marketing support you can visit us at www. brighteyes.com.au/opportunities to find out more.

Alternatively, just contact the BrightEyes franchising team on 1800 178 251 or email enquiries@ brighteyes.com.au. We would love to hear from you!

The business is HACCP certified and has a ‘no compromise’ attitude when it comes to quality. This includes the Mercedes vehicle, commercial equipment and fitout, branding and marketing strategies and dedicated events co-ordinator.

If you are ready to take control and enjoy working with people, a Cafe2U franchise provides you the perfect system to create your own destiny.

Contact John Stanton - Sales and Franchising Manager on 1300 Cafe2U (1300 223 328) or email: jstanton@cafe2u.com www.cafe2u.com.au

business franchise australia and new zealand

For more information call 03 9787 8077

A-Z Listings are a great way to promote your

www.businessfranchiseaustralia.com.au or

business.

www.businessfranchisenz.co.nz

CORAL HOMES

news is to start a Coral Homes franchise you don’t even need a builder’s license, you just need to know someone who does.

With a mission to “help more Australians into a new home”, Australia’s newest franchise builder, Coral Homes, has already proven to be one of the country’s most successful and award winning home builders, having built homes for thousands of happy homeowners since 1990.

The accumulated know-how gained from 23 years of building quality, value for money homes means Coral Homes knows how to help franchisees grow a successful home building business. And the good

ENERGIS Help residential and business customers save with smart energy solutions & products for Solar, Hot Water, Heating, Cooling & Lighting.

Own your own extensive distribution franchise with low initial investment and high income opportunities from large territories. Low cost

EXA WEB SOLUTIONS Digital Strategies and Solutions Exa is Australia’s biggest digital solutions agency, with 290 highly qualified full-time employees and over 1900 clients in our portfolio. We provide end-to-end digital solutions, spanning from custom websites, eCommerce and microsites, through to mobile applications, social media and internal business systems.

Since it was founded over a decade ago, Exa

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

(or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to AUSTRALIA AND NEW ZEALAND

• Own a slice of an iconic Australian brand • Expert assistance with getting started • Industry leading systems, processes and training • Extensive marketing support and home design range • Real bulk buying power of a major builder For further information call Roger Washbourne (07) 5585 2555 or go to www.coralhomes.com.au/ franchises

Mobile & Retail store formats available. Training, Marketing and Installation support provided.

Secure your future in this high growth industry with an Energis franchise that gives you personal and professional flexibility in developing your business and your work environment.

Franchise enquiries to www.energis.com.au/ franchise or Robert Graham 0407 105613

has sustained strong growth year after year. As we continue to expand, we are looking for selfmotivated and hard-working individuals to join us as franchisees. With high earnings potential in a dynamic and growing industry, this is a truly unique and lucrative opportunity to have your own business with the backing of Australia’s biggest digital solutions agency.

Please call (03) 9092 6699, or email biljana.stephens@exa.com.au

opportunity to be part of our winning national organisation.

Extensive initial training and ongoing support is provided. New franchisees undergo 12 weeks training in one of our company restaurants covering areas such as, front of house, kitchen (all areas), necessary bookwork, PPS, and Management skills.

For more information on joining a successful franchise call 08 8304 8600, email reception@fastapasta.com.au, or visit our website, www.fastapasta.com.au

Business Franchise Australia and New Zealand 105

A-Z FRANCHISE DIRECTORY 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

business franchise australia and new zealand

For more information call 03 9787 8077

A-Z Listings are a great way to promote your

www.businessfranchiseaustralia.com.au or

business.

www.businessfranchisenz.co.nz

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 • Guaranteed income package*

AUSTRALIA AND NEW ZEALAND

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

(or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to

*Conditions apply

InXpress – Global Express Freight

• Low entry costs

InXpress provides a revolutionary yet simple concept delivering customers with freight advantages to gain a competitive edge in the marketplace.

InXpress is an authorised sales partner for the world class courier company, DHL. Domestically, InXpress partners with companies such as Toll and TNT to offer a complete suite of courier and freight solutions, providing customers with greater value and personalised service, saving valuable time and money.

Operating in 15 countries with over 200 franchisees internationally, InXpress is now accepting applications to grow the Australian business.

Benefits to franchisees include:

• No inventory/warehousing

jesters

start up of the business. You are also appointed your own business consultant for dedicated ongoing support. Jesters also provides marketing and advertising support for the entire network of Jesters Stores.

Jesters Jaffle Pie Company was founded in Western Australia in 1997 on the philosophy of producing the healthiest, finest quality pies available in the marketplace.

Our commitment to quality, health, taste and freshness led to the development of a unique way of cooking the pies by hand and fresh all day in store.

Jesters is a WA company with our HO and experienced support team all based in Perth. We source all our meats and vegetables from WA supporting other local industries.

When buying a Jesters Franchise you become part of a supportive and successful network. Jesters Franchisees are provided with intensive training and support during

106 Business Franchise Australia and New Zealand

• Low risk • Minimal employee base • High income potential • Ongoing training and support Whatever your location InXpress represents a unique opportunity for you to build financial freedom, within a global network.

Start building your future with the right company and the right model, for more information about becoming an InXpress franchisee within your region call 1300 469 773, email sales.au@inxpress.com, www.inxpress.com.au

Jesters has successfully tapped into a niche of the $5 billion (and growing) fast food industry with a unique product which no other chain has recognised. Jesters have developed a unique culture, in that operating a business can be fun as well as profitable.For more information on exciting opportunities within the Jesters Franchise, please contact Terry Sherlock on: Phone: 08 9309 2200 Email: terry.sherlock@jesters.com.au

Jim’s Fencing Jim’s Fencing franchise opportunities were launched in 1997, initially in Melbourne; to date Jim’s Fencing is Australia wide with approx 150 franchise owners of which includes contractors (who work for the franchise owners) building fences every day of the week. Due to the over supply of work which we cannot service Australia wide, Jim’s Fencing needs more franchise owners to service our customers.

Some of the benefits of joining our Jim’s Fencing team are; • 8 weeks paid for training @ $1000 inclusive p/w

Jump! Swim schools

• 3 month bookkeeping assistance package • Work availability GUARANTEE • Ongoing support and personal mentoring • Strong brand recognition • Over supply of work • And much, much more If you are looking for a self-employed business opportunity and enjoy working outdoors, then why not join the team here at JIM’S Fencing.

For more information on this Franchise opportunity and Jim’s Fencing, you should go to our website: www.jimsfencing.net or call us on 131-546.

JUMP! Swim Schools is leading the way in bringing fun, private facilities for our little swimmers to learn the basics away from the busy aquatic centres If you are looking for a flexible lifestyle franchise, in a secure and established industry, with huge market opportunities then this is the franchise for you.

Absolutely no experience necessary, and no need to be in the water!

Great locations are still available, no experience necessary and a comprehensive training program provided.

Due to the bookings in advance system, the business is easy to manage as well as consistent ongoing support with our proven management systems.

To find out more information on a JUMP! Swim Schools Franchise contact Ian Campbell on: Phone: 07 5608 4019 Email: ian@jumpswimschools.com.au www.jumpswimschools.com.au www.jumpfranchising.com.au

JUST CUTS™

At Just Cut Cuts™ Franchise Owners have been free to grow to own multiple sites. Just Cuts™ do over 66,000 Style Cuts™ a week!

Don’t just buy yourself a Job! Discover how you can easily run a “Genuine Business System”.

Did You Know? Most of our Just Cuts™ Franchise Owners are not Hairdressers. Plus, the average Franchise Owner goes on to own multiple stores.

Why? Because proven systems, support and training means your hairdressers become the technicians and easily run the business for you.

KWIK KERB Kwik Kerb® is the world leader in continuous concrete edging and can now be found in over 20 countries.

We are looking for motivated people right around Australia who want to improve their lifestyle and take control of their financial future. As a Kwik Kerb® business owner you will be supported every step of the way with our knowledge and experience in marketing, a full training program and on-going product development.

LAVA CARTS Lava Carts offers specialty Espresso coffee and freshly made accompaniments. Our vision is to position the finest coffee possible into strategic locations delighting the customer and retailer in terms of satisfaction and success.

A coffee cart strategically placed at the front entrance of a busy regional hospital proved a winning formula for the original Lava Cart and founder Simon O’Brien.

Today the latest in design innovation has upgraded the cart to a modern and functional shopping centre kiosk whilst maintaining the grass roots cart like qualities of

Just Cuts™ operate on a no appointment, no request system, quality style cut at an affordable price.

Contact us today to find out more. Join the largest Hairdressing Network in the Southern Hemisphere.

Contact: Luke Manning 1800 334 498 Website: www.justcuts.com

Kwik Kerb® business owners work for themselves, building their own business from strength to strength and determine their own income level. With Kwik Kerb® YOU keep all the profits! We have Kwik Kerbers earning $500 to $1000+ in a day. If they can do it, so can you!

Owning a Kwik Kerb® proven system is all about creating a lifestyle that suits you. You choose the hours of work that match your financial and lifestyle goals.

For more information freecall 1800 773 231 or visit www.kwikkerb.com.au

cost consideration and position. Our winning formula means our turnkey franchise package is a fraction of the cost of our competitors with no compromises on quality.

We currently have excellent high profile opportunities in super and major regional shopping centres, particularly in Qld, Victoria and WA. Having signed up our first six franchises in the last 18 months Lava Carts has erupted onto the national stage with a vibrant difference. Discover the substance behind our brand.

Visit our website www.lavacarts.com.au ph 0458 202 649 or email manager@lavacarts.com.au

Business Franchise Australia and New Zealand 107

A-Z FRANCHISE DIRECTORY LINK BUSINESS BROKING LINK is a Premium Business Brokerage network with offices in New Zealand, Australia and South Africa.

Since its formation in 1996, LINK’s leadership in the Business Broking industry has pioneered and set the professional standard to which other brokerages aspire.

McDonald’s In a little over 40 years, McDonald’s has grown from one restaurant to over 900 restaurants across the country. From its first restaurant in 1971 through to today, the ‘golden arches’ has managed to maintain its position as one of the most popular quick service restaurants in Australia.

As a McDonald’s franchisee you’re stepping into

NATRAD Natrad is the most recognised and iconic brand in radiator and air conditioning cooling systems and is Australia’s most trusted cooling specialists, with over 80 stores nationwide, offering specialist service with local outlets conveniently located all around Australia.

Natrad will only use quality and trusted products. We stand by our specialist service, ability to access a wide range of product and get the job done right. We specialise in exclusive access to OE and aftermarket radiators and air conditioning backed by product 3yr nationwide warranty.

NOODLE BOX An Australian success story.

Noodle Box’s goal is to be the first choice noodlebased restaurant concept in every market in which they operate.

With a proven back office system, world class marketing tools and the LINK Training Academy, LINK truly is the authority on selling businesses.

Contact us today for information on a LINK Business Broking Franchise.

Phone 0064 9 579 9226 or email Kevin Atkinson: kevina@linkbusiness.co.nz.

Visit linkbusiness.co.nz, linkbusiness.com.au, linkbusiness.co.za.

one of the world’s most successful brands and all that comes with it.

Think world-class systems and training, the globally acclaimed franchise model, and the kind of stability and returns that will deliver the success you’ve worked hard to enjoy.

For more information: Website: www.mcdonalds.com.au Email: franchising@au.mcd.com

Natrad is currently looking for interested individuals from outside the industry as well as existing automotive workshops looking to convert and further develop their business.

If you love cars, and want to become part of Natrad’s powerful branding, quality products, strong support and low entry costs … “Nip into Natrad”!

Natrad National Office: 03 9795 1255 Haydn Roberts, National Recruitment Manager: 08 8243 9860

restaurant design concept, the Noodle Box brand represents excellent value for money.

Noodle Box is healthy, fresh and fast and made right in front of their guests by friendly, well-trained team members. With a relaxed atmosphere – it doesn’t get tastier than that!

Franchise partner relationships are paramount and are built on integrity, respect and trust. The Noodle Box Franchise Support Centre is focused on ongoing Franchise Partner profitability and success.

For more information see www.noodlebox.com.au/franchise

With a competitive entry level investment and new

Email: michael@noodlebox.com.au

RED ROCK NOODLE BAR

Currently there are eleven stores all over Brisbane as we look to take this great franchise system throughout the rest of Queensland and North New South Wales.

Red Rock Noodle Bar is one of the healthiest food franchises in Australia in this popular, growing fast food industry.

We deliver this by offering an exciting and delicious range of Asian 97% Fat Free tastes that appeal to everyone who wants to eat and stay healthy.

108 Business Franchise Australia and New Zealand

Or call our Network Development Manager Michael Standley on 0416 256 338.

To get further information on this healthy food franchise, call 1300 473 376, email admin@redrocknoodlebar.com.au or visit www.redrocknoodlebar.com.au.

RED ROOSTER Red Rooster is an Australian owned icon brand.

The Red Rooster franchise mission is “Be in business for yourself, but not by yourself”. Red Rooster supports each franchisee with proven commercial, promotional and operating systems, all designed to minimise risk and maximise potential for success. Specifically, you will get: • An Australian Icon brand • Proven systems and comprehensive operating manuals • Assistance in finding a location, negotiating contracts

RENT THE ROO RENTALS Rent The Roo specialise in the rental of any household appliance or furniture product available.

There is simply NO LIMIT to the development of product ranges on offer from Rent The Roo, because franchisees can purchase from any retail outlet or accessible supplier – giving us the flexibility to satisfy every customer enquiry. If we can find it, you can rent it…!

With over 36 years of trade and development and our continued focus on customer satisfaction, Rent

and lease arrangements • Full structured training programs • Planning assistance for the opening and operating of your store • A full suite of merchandising and point-of-sale material Red Rooster is Australia’s most successful Australian owned Quick Service Restaurant chain. Its success has been built on great tasting, high quality, freshly prepared food, delivered using proven systems.

Email: gary.glen@red-rooster.com.au Phone: 03 9582 8716

The Roo continue to grow with over 60 franchise territories covering every state & territory in Australia.

Franchisees have access to ongoing training and support as well as an extensive range of marketing tools to help drive the business forward.

Rent The Roo’s home-based, simple and productive business model combines low running costs with the highest possible returns.

For further information, visit the FRANCHISE tab at www.renttheroo.com.au or contact Alan Carroll on 0408 178 858 or alan@renttheroo.com

business franchise australia and new zealand

For more information call 03 9787 8077

A-Z Listings are a great way to promote your

www.businessfranchiseaustralia.com.au or

business.

www.businessfranchisenz.co.nz

Sleepy’s

With Sleepy’s low entry costs, simple business model, proven selling system and healthy margins you too will become a mattress expert!

Sleepy’s unique selling proposition is ‘The Mattress Experts’. We focus on providing the right mattress to our customers through a tried and tested selling process and we back up our advice and sales with a 60 day comfort guarantee giving our customers complete buying confidence and, we take away your old mattress free!

(or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to AUSTRALIA AND NEW ZEALAND

Sleepy’s currently has 22 stores and has embarked on an aggressive national growth plan.

Make an enquiry today and we’ll be very happy to provide you further details on how you can become a Sleepy’s franchisee.

Sleepy’s offers our franchisees high quality initial and ongoing training, national marketing programs, full support from the management team and, up to the minute product development.

Please contact Guy Elliott on 07 3895 4100 or 0434 254 154.

Email: guy.elliott@mattressinvestments.com.au Website: www.sleepys.com.au

SNAP-ON TOOLS

Snap-on in their last three surveys and the Best Value franchise system. Franchisees, who operate from amazing custom built mobile stores, have protected territories that have been surveyed to locate and profile the customers before they start.

Extensive training and ongoing support is provided and no previous mechanical/trade experience is necessary.

Franchisees need to be motivated business minded people with a desire to be successful and enjoy the sales environment while building professional relationships with their customers. No royalties, no advertising levies and Snap-on finance packages available.

Snap-on tools have a heritage spanning more than 90 years and is a brand that defines quality. The range of more than 19,000 products are the choice of professional technicians from NASA to Formula One. The primary customers for franchisees are the professional technicians who service and repair cars, trucks, motorcycles, boats, aircraft and earth moving equipment - the people who make their living using tools and demand the best. With more than 4,700 franchisees around the world, 160 of them in Australia and New Zealand, the franchise programme has been developed over decades.

The Financial Review Smart Investor magazine has chosen

For more information call 1800 762 766 or www.snapontools.com.au

Business Franchise Australia and New Zealand 109

A-Z FRANCHISE DIRECTORY SNOOZE™

• NAB & ANZ accreditation

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

• Sales and product training

Boasting more than 70 stores across Australia and a goal to reach 90 stores by 2014, Snooze is looking for ambitious and passionate people to join the business’ exciting future.

• A national marketing program • IT services

Snoozes offers a personable, flexible business solution with expertise and support every step of the way, including:

To take the first step towards a prosperous future, contact Snooze Franchise Network Development Manager, Alistair Browne, to find out what Snooze could mean for you.

• Vendor finance assistance

Email: alistairb@snooze.com.au

SPRAY PAVE AUSTRALIA Pty Ltd

• Learn a range of new lifelong trades.

Earn up to $3,300 per week.

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!

sumosalad SumoSalad is Australia’s most commercially successful healthy fast food franchise; serving over 145,000 customers each week. We’re on a mission to recruit like-minded franchisees who want to provide healthy, nutritious food and be part of the solution to Australia’s obesity crisis.

SumoSalad started a health food revolution nine years ago when founders Luke Baylis and James Miller came to the conclusion that ‘fast food’ didn’t

Taco Bill Taco Bill is the longest established Mexican family restaurant in Australia and has built a loyal following since its inception in 1967. Taco Bill’s Mexican food is fun, fresh and affordable and presented in a casual, relaxed environment.

The menu consists of a variety of fresh, authentic Mexican cuisine cooked daily on site, including Taco Bill’s special salsas, quesadillas, fajitas, rice and frijoles, enchiladas, burritos, nachos and tacos.

Thirty brands of tequila are on offer at the various

AUSTRALIA AND NEW ZEALAND

• Business management support

• Guaranteed work available anytime after training.

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

• Customers contract and interest free finance.

• Lifelong support from 6 Head Office trainers.

• Low deposit + Support Payment Plan (SPP) 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

have to mean ‘snatch and grab, lardy laden food’.

SumoSalad’s unique concept of a fast food outlet that sold made-to-order salads that were nutritious, delicious and convenient is as popular now as it was in 2003.

If you’re enthusiastic, health conscious and want to make a difference, come join our revolution, just contact Steve Shirley, General Manager Business Development on 0401 055 437 or email steves@sumosalad.com who’d love to hear from you.

restaurants as well as Australia’s largest Margarita – Pancho Villa (fishbowl) - giving the restaurant even more flavour and authenticity!

With 35 Taco Bill restaurants in Australia and 28 franchisees, Taco Bill Directors Tom Kartel and Stan Teschke are keen to increase Taco Bill’s Mexican wave with expansion plans nationally in metro and regional areas.

If you’re interested in becoming part of the Taco Bill family call 9690 2077 or email amigo@tacobill.com.au

business franchise australia and new zealand

For more information call 03 9787 8077

A-Z Listings are a great way to promote your

www.businessfranchiseaustralia.com.au or

business.

www.businessfranchisenz.co.nz

110 Business Franchise Australia and New Zealand

(or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to

TELECHOICE Established more than 18 years ago, TeleChoice is Australia’s largest independent MVNO retailer of mobile phones, telecommunications and energy products.

mobile phone rates and bundles with home telephony and internet.

A TeleChoice Licensed Store operator has the delightful task of saving money for our customers.

Telecommunications and energy products are everyday necessities and non-discretionary expenses.

TeleChoice now uses the most reputable networks in Australia packaged in ways that help Australian consumers make substantial savings and reduce the costs burdens. For example, TeleChoice uses parts of Telstra’s 3G Network to offer the most competitive

You too can make money by saving people their money.

Our industry is very dynamic and is only suited for smart energetic investors. If you have the passion for business and the drive to succeed; we would like you to be a part of our team.

business franchise australia and new zealand

For more information call 03 9787 8077

A-Z Listings are a great way to promote your

www.businessfranchiseaustralia.com.au or

business.

www.businessfranchisenz.co.nz

The Australian Drug Detection Agency

testing and education services.

The Australian Drug Detection Agency PTY Limited wants highly motivated and independent people to join the team, as either Master or Regional Franchisees.

The NZ operation was established in April 2005 and consists of 15 regional franchisees throughout New Zealand, 18 offices and over 30 specialised on-site testing vehicles, employing over 65 staff and is recognised as the Market leader in the field of on-site drug, alcohol workplace

THE CONCRETE CUTTER The Concrete Cutter makes sound business sense.

Established in Melbourne in 2001, the Concrete Cutter has nine long running franchises in operation.

We now seek to expand in Melbourne and duplicate the Melbourne success interstate.

If you are a smart ‘hands on’ person with good health and you are easily understood on the telephone we welcome your enquiry.

The interface financial group The Interface Financial Group franchisees provide short-term working capital for small businesses by purchasing their invoices at a discount.

In the current economic climate small businesses need working capital but banks are unwilling or unable to provide it. Many of these small businesses are turning to Interface for a solution.

Interface has been in the ‘invoice discounting’ business since 1972, is the leading alternative funding source for small business, and employs its franchise network in Australia, New Zealand, Canada, the Republic of Ireland, Singapore, the United Kingdom,

Call the National Franchise Manager on 03-8699 2555, or visit www.telechoice.com.au/franchise

(or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to AUSTRALIA AND NEW ZEALAND

The ADDA is based on the NZ business model, and will provide excellent financial rewards for those who are prepared to work hard and fit the criteria.

This is a huge opportunity for business-orientated individuals, to get in at the ground level and grow their own enterprise.

Are you ready to join our experienced group and secure a lucrative future? Our guess is Yes, you are!

Email: kirk.hardy@tadda.com.au or visit www.tadda.com.au

The purchase price of $45,000 + gst covers equipment, sign writing, uniforms, stationary, training and initial book-keeping set-up and early accounting support. You will need to provide a suitable white vehicle such as a ‘one tonner’, a van , or a small truck.

Most established franchisees are regularly taking over $2,500 per week.

Ring Bruce Miskin on 0499 399 355 for a 15 page information pack.

and the United States.

• NO employees to hire or manage • NO lease payments for storefronts • NO purchasing or maintaining product inventories • NO high startup costs • NO retail/consumer environments • A proven track record – Interface has been in business since 1972 • Excellent Return on Investment • Exceptional training & support programmes from a management staff with more than 400 years of experience in the business.

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

Business Franchise Australia and New Zealand 111

A-Z FRANCHISE DIRECTORY Unscratch the Surface No longer is it necessary to replace damaged glass.

Unscratch The Surface franchises are the solution that all commercial, construction and residential industries have been without. Saving them $1000’s in replacement costs and critical time wastage. Never mind the environmental advantages by preventing yet more glass being broken up into landfill worldwide.

Key benefits: • Low entry costs • Low running costs • Low on-going fees • Full training & unlimited support

• Extensive advertising • Leads supplied by head office • Professional sales website • Powerful CRM website • High-grade trade tools & supplies • Uniforms • Complete corporate branding We are looking for people with a positive attitude and are dedicated to providing great customer service.

For more information on this Franchise opportunity, you should go to our website: www.restoreglass.com.au or call us on 1300 500 408

V.I.P. Home Services australia

In 2009 and 2010 V.I.P. Home Services was ranked number one Best Value Franchise under $50,000

by Financial Review Smart Investor.

V.I.P. was the first company to start franchising in home services in 1979. Today V.I.P. has over 1100 franchisees across Australia and New Zealand.

V.I.P. is a professional Home Services franchise with opportunities available in Home Cleaning, Commercial Cleaning, Carpet Cleaning, Window Cleaning and Lawns and Garden Maintenance.

V.I.P. offer franchisees comprehensive training, a solid support system, exclusive territories and an established customer base along with the chance to be their own boss and choose the hours they want to work.

XPRESSO MOBILE CAFE

bean display showcase where a franchisee can display, custom grind, bag, heat seal and retail.

Starting a new café is daunting especially with overheads and expensive shop leases etc. A fixed cost and great value alternative is an Xpresso Mobile Café franchise.

Xpresso Mobile Cafés have exclusive licensing to use the Di Bella Coffee products and branding. Our Mercedes Benz vans are fitted with quality custom fit-outs and commercial high grade espresso coffee making equipment.

An Xpresso Mobile Café is also fitted with a coffee

ZARRAFFA’S COFFEE Award winning Zarraffa’s Coffee is a specialty coffee company that roasts and delivers the freshest coffee to its 62 stores across south east Queensland, northern New South Wales and Western Australia. The business is founded on the mantra ‘to create an individually perfect cup of coffee – every time!’ and, just like the giraffe on the logo, aspires to be ‘head and shoulders above the rest.’

AUSTRALIA AND NEW ZEALAND

Franchisees will receive:

For further information call V.I.P. Home Services on 13 26 13 or visit www.vipfranchisesales.com.au

Franchise partners primary income is earned Monday to Friday in an exclusive territory and they may choose to earn secondary (considerable) income from various events and markets on weekends.

Franchisees are supported by our fully integrated website and social media and Internet presence coupled with our national call centre.

Contact Jonathan Payne at jonathan@xpresso.com.au to register your interest and be part of our success story.

coffee the business. Since the opening of the first store in 1996, the Zarraffa’s Coffee experience has become something of an icon to many Queenslanders and since late 2012 has served coffee drinkers in Western Australia. The business has maintained a steady pattern of growth, as is evident both in gross turnover figures and a consistent increase in profile.

Applications are open now for various locations in South East QLD, NSW and WA.

Great service is the practice and fresh, quality

Visit www.zarraffas.com to register your interest.

business franchise australia and new zealand

For more information call 03 9787 8077

A-Z Listings are a great way to promote your

www.businessfranchiseaustralia.com.au or

business.

www.businessfranchisenz.co.nz

112 Business Franchise Australia and New Zealand

(or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to

SapientNitro FSNO 576

JOIN THE

DREAM TEAM

Vendor finance now available* *Available to approved applicants.

We are looking for dynamic people who love dealing with others and are passionate about retailing.

The Snooze brand has a strong history of over 30 years in retailing and has built a very solid franchise system.

We provide franchise partners with a stable platform to start their business and offer support across the entire business including: Marketing and Promotional Support Product Development and Buying Power Proven operating system that includes comprehensive product and sales training Business Management support from our on the ground field team Assistance in site selection and property negotiations Business finance available to approved applicants

For more details visit snooze.com.au or call Alistair Browne, our Franchise Network Development Manager on 0427 401 169

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