T h e
m a g a z i n e
f o r
f r a n c h i s e e s VOL 11 ISSUE 02 jan/feb 2017
AUSTRALIA and NEW ZEALAND
SOURCELINX:
BUiLDING SOLUTIONS THAT WORK HOW DO YOU CHOOSE
THE BEST FRANCHISE FOR YOU? special feature
retail franchising FINANCIAL & legal ADVICE
LATEST NEWS
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From the
Editor
Joanne Tuffy | Editor Business franchise magazine
BUSINESS FRANCHISE AUSTRALIA and new zealand VOLUME 11 ISSUE 2, jan/feb 2017
Welcome to another great year of Business Franchise Australia and New Zealand magazine. As we say goodbye to 2016 and hello to 2017, I would like to take this opportunity to say thank you: to our readers for their enthusiasm about Business Franchise magazine and the great comments that we receive throughout the year; to our contributing writers, who continuously submit high quality and informative editorials, written to inspire and guide potential franchisees as they embark on their franchising journey; and to our advertisers and continuing supporters of all of our publications. As we celebrate another successful year, we wish the same to all members of the franchising community. This issue’s front cover features Sourcelinx, who, since their inception 20 years ago, are well on their way to achieving their company vision “To become the Global Leader in the field of Procurement Solutions”. Working closely with their clients, they provide a customised service for each brand they work with. You can read more about this high quality and cost-effective service on page 10. Our feature, starting on page 33 showcases retail franchising. According to the
Franchising Australia 2016 report, total annual sales for the franchising sector are estimated at $146 billion, and retail (non-food) is the dominant sector, accounting for 26 per cent of all franchise brands. You can read more about an innovative and iconic retail ‘Superbrand’ within Australian retailing, Luxaflex Window Fashions, on page 38.
publisher:
In 2017, Business Franchise readers once again get FREE entry into the Franchising & Business Opportunities Expos, being held in Sydney, Perth, Brisbane and Melbourne. Go to www.franchisingexpo.com.au and simply enter ‘BFM’ when purchasing your tickets. Exhibition Manager Fiona Stacey says, “Grab your tickets now, it’s really time to stop dreaming and start doing!”
Vikki Bradbury.
As always, there is a great selection of articles throughout this magazine, from leading franchising experts including bankers, lawyers, accountants and consultants. Plus, franchise news and updates from the Franchise Council of Australia.
Colin Bradbury. colin@cgbpublishing.com EDITOR: Joanne Tuffy. editor@cgbpublishing.com.au SALES DIRECTOR: vikki@cgbpublishing.com SALES & marketing manager: Kathleen Lennox. kathleen@cgbpublishing.com.au publisher’s assistant Jorgia Rice. PRODUCTION: production@cgbpublishing.com.au ACCOUNTS: Renee Gould. accounts@cgbpublishing.com.au DESIGN:
So if your New Year’s resolution is to become your own boss by buying a franchise business, then you have picked up the right magazine.
Jejak Graphics (03) 8790 8006
Enjoy the read.
sourcelinx
Joanne Tuffy Editor
www.businessfranchiseaustralia.com.au
COVER IMAGE:
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The information and contents in this publication are believed by the publisher to be true, correct and accurate but no independent investigation has been undertaken. Accordingly the publisher does not represent or warrant that the information and contents are true, correct or accurate and recommends that each reader seek appropriate professional advice, guidance and direction before acting or relying on all information contained herein. Opinions expressed in the articles contained in this publication are not necessarily those of the publisher. The publication is sold subject to the terms and conditions that it shall not be copied in whole or part, resold, hired out, without the express permission of the publisher.
Business Franchise Australia and New Zealand 3
contents
january/february 2017
On the Cover
12
10
Cover Story: Sourcelinx
Building Solutions that work
30 How do you choose the Best Franchise for You? Griffith University’s Asia-Pacific Centre for Franchising Excellence 33 Special Feature: Retail Franchising
In Every Issue 6
26
30
66
What’s New! Announcements from the industry
12
A Message from the CEO
36
Feature News
38
Unrivalled Support from a World Leader Luxaflex Window Fashions
40
Feature Edit: How to Prevail in Retail
88
Hot Topics: Behind the Headlines
92
Professional Services Listings
94
Listings
96
A-Z Directory
Franchise Council of Australia
Jason Gehrke, Franchise Advisory Centre
Profiles 16 Viva Energy 28 Ayers Rock Resort 78 Franchising Expo
Snapshot
74
64 Theobroma Lounges | Pavilions | Bars
also in this issue: Appliance Tagging Services............................ 89, 96 Australian Skin Clinics............................................ 25, 96 Boost Juice................................................................................. 96
Expert Advice 18
Cashflow It....................................................................................... 2 Chem-Dry........................................................................... 65, 96 CIBO Espresso....................................................................... 96
How to Foster a Culture of Employee Engagement Bill McMurray, Qualtrics
26 Five Mistakes to Avoid when Looking for a New Franchise Tim West, 12 Round Fitness 44 Raising the bar for Franchisor Responsibility—but at what cost? Steve Wright, Retail Council 48 Preparing your Franchise for the Pressure of January Mark Hoppe, Atradius 54 The Three P’s of Franchising Richard Wynn, FutureYou Executive Recruitment 56 Leasing: What you need to know as a Franchisee Peter Fiasco and Alex Ellis-Czerkaksi, Hairhouse Warehouse 60 Why Clever beats Innovation Brian Walker, Retail Doctor Group
Clark Rubber Pool & Spa....................................19, 97 Clark Rubber Pool Care....................................... 83, 97 Crema Espresso.....................................................................97 Dream Doors Australia.....................................................97 Dream Doors New Zealand........................................97 Ecomist Australia...................................................................97 Fasta Pasta................................................................................. 98 Fastway Couriers...................................................... IFC, 98 FC Business Solutions..................................................... 15 GroutPro........................................................................................ 98 Hairhouse Warehouse........................................... 34, 98 Harmans Lawyers................................................................ 92 IP Partnership........................................................................... 92 Jejak Graphics......................................................................... 43 Jim’s Antennas........................................................................ 99 Jim’s Building Maintenance....................................... 99 Just Cuts Australia. ............................................................. 99
62 Watch out for Problematic Contract Terms Dr Michael Schaper, ACCC
Just Cuts New Zealand.................................................. 99
66 Beware of the Hidden Costs Ian Watt, Westpac
La Porchetta................................................................. 21, 100
74
Krneta Building Surveyors........................................... 92
Lava Coffee.................................................................... 69, 100 Lenard’s Chicken............................................................... 100
Increasing Momentum and your Chances to Succeed
Little Kickers & Little Rugby.................................... 100
Tania Allen, Vision Alliance
Magnetite Windows. ....................................................... 101
80 Create a Compliant Culture Before it’s Too Late Melinda Bell and Karl Rozenbergs, Hall & Wilcox
Marsh & Maher Lawyers............................................... 92 National Franchise Insurance Brokers.............73 OZ Bin Cleaning.................................................................. 101
84 Australia: Franchising starts a World Revolution Alexander Honeyman, Oanda
Pizza Temptations............................................................. 101 Redcat. ................................................................................................ 1 Salsas Mex Frescas!...................................................... 101
Focus 50 Clark Rubber 70 Sequel VCFO
Snap-on Tools. ........................................................ 102, IBC Soccajoeys............................................................................... 102 Spray Pave Australia....................................................... 102 Steve Costi’s Famous Fish..............................77, 102 The Energy Alliance...................................................... OBC The Interface Financial Group.............................. 102
Franchisor in Depth 22 Steve Costi’s Famous Fish
Thermawood.......................................................................... 103 TSG Franchise............................................................ 43, 103 V.I.P. Home Services Fencing & Home Maintenance.......................................... 87, 103 Yarra Valley Farms. ........................................................... 103
what’snew! ACCC will not oppose Quadrant’s proposed acquisition of Fitness First low cost gyms such as Anytime Fitness and specialist gym providers such as F45 and Crossfit,”ACCC Commissioner Roger Featherston said. “The ACCC also found that convenience of location was an important factor in a consumer’s choice of gym, thereby giving an individual gym an opportunity to compete against a chain of gyms. “Other suppliers of fitness services, such as bootcamps, or specialist studios, such as pilates, also impose a degree of competitive constraint on full service gyms,” Mr Featherston said. The Australian Competition and Consumer Commission will not oppose Quadrant Fund 5’s (Quadrant) proposed acquisition of Fitness First Asia Pacific Group Pty Ltd (Fitness First). Quadrant owns the Goodlife Health Clubs network (Goodlife) and is the head franchisor of the 24/7 gym chain Jetts Fitness (Jetts) in Australia. Fitness First, Goodlife and Jetts’ operations overlap in Victoria, New South Wales and Queensland.
Some market participants raised concerns about the combination of Fitness First and Goodlife, which are the two largest chains of ‘full service’ gyms in Australia. Full service gyms typically offer a range of weight and cardio equipment, as well as group training classes. “The ACCC determined that following the proposed acquisition, Fitness First, Goodlife and Jetts would continue to face competition from other alternatives, including
The ACCC took into account the dynamic changes and high churn rates affecting the gym industry in recent years. A number of new operators, including overseas operators, have entered the market and experienced significant growth in a short space of time, particularly in the low cost gym and specialist gym market segments. Further information is available at http:// registers.accc.gov.au/content/index.phtml/ itemId/1199956/fromItemId/751046
Franchise industry support for charity inaugural dinner dance The Bright Eyes Organisation held its inaugural dinner dance in Melbourne in October with resounding success. The night was well supported by members of the franchise community and Karen Wren, CEO and founder of Bright Eyes would especially like to thank Damian Paull, CEO of the FCA and his partner Paula for their support as well as Nick Rimington and Sarah Archer of Norton Rose Fullbright, who all helped make the night one to remember! Also, the many local franchisee businesses as well as several well known franchisors who donated wonderful gifts for raffle prizes. The Bright Eyes Organisation is dedicated to the rescue of children and young woman who are survivors of abuse and exploitation. Bright Eyes has now partnered with an NGO in Mumbai to raise funds to help establish and support a rescue centre for young woman and girls. The Bright Eyes Organisation is a voice for the voiceless and the most vulnerable.
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celebrating 30 years of expos The Franchising & Business Opportunities Expo will kick off 2017 with the Sydney show on 25-26 March, at the brand new ICC Sydney at Darling Harbour. Featuring a striking contemporary design, leading technology and multipurpose spaces, ICC Sydney is located in the heart of Sydney in the active precinct of Darling Harbour on Cockle Bay.
Franchised Food Company’s Big Plans for 2017 Franchised Food Company (FFCo) CEO, Stan Gordon, has confirmed that 2017 is set to be one of the company’s biggest years yet, with three of its popular brands – Cold Rock, Trampoline and Pretzel World – due to launch in a number of international markets. With stores located around the eastern sea board of Australia, Pretzel World will be the first of FFCo’s three brands to open in an international location in 2017. Capitalising on a growing wave of popularity for the humble soft pretzel, Pretzel World Dubai is set to open in January 2017, with further plans underway to open a further two locations in August 2017. Mr Gordon’s homeland, South Africa, will also see the launch of its first Pretzel World store in mid-2017. The second FFCo franchise set for international expansion is the hugely popular Cold Rock Ice Creamery. Acquired by FFCo in 2009, Cold Rock boasts in excess of 100 stores across Australia. 2017 will see Cold Rock open in much warmer climates, with
stores due to launch in both Saudi Arabia and South Africa. Trampoline will also be opening a store in the hugely popular tourist destination, Bali. This location will have a very unique offer additional to Trampoline’s usual gelato range: Alcoholic gelato, this innovative and unique offer is likely to be a sure hit with relaxed holidaymakers. When asked about the motivation to expand the FFCo brands into each market, Stan explained the decision was driven largely by a desire to introduce even more people around the globe to the taste sensations served up by Pretzel World, Cold Rock and Trampoline… all using some of the best Australian ingredients. “So many consumers are now travelling to warmer-climate destinations like Bali, Dubai and South Africa for holidays and coupled with the growing demand in each of these markets for delicious, tasty treats, they just seemed like natural fits for us to tap into,” Stan said.
“In 2017 we are celebrating 30 years of the Franchising & Business Opportunities Expo with a new venue in Sydney,” says Exhibition Manager Fiona Stacey. “We are also relaunching the Franchise Advice Centre to give visitors quality time with financial and legal specialists to improve or start their own business.” Stacey adds 2016 was a big year for the Expo, with highly successful shows in Sydney, Brisbane and Melbourne, as well as a new boutique showcase event in Perth, which was very well received by both visitors and exhibitors. Visitors at each of the Expos found a wealth of information and advice available, as well as a huge range of business ideas. Franchising & Business Opportunities Expo 2017: Sydney: 25-26 March at International Convention Centre, Darling Harbour Perth: 7 May at Crown Perth Brisbane: 22-23 July at Brisbane Convention & Exhibition Centre, South Bank Melbourne: 26-27 August at Melbourne Exhibition Centre, South Wharf Reader special: register for free at www.franchisingexpo.com.au by using code BFM.
Business Franchise Australia and New Zealand 7
what’snew! Guzman y Gomez flagship taqueria opens doors
Zambrero celebrates 150 Restaurants worldwide In just over 10 years, Zambrero has expanded from a solitary Canberra restaurant to one of the country’s fastest growing franchises and they recently celebrated the opening of their 150th quick service Mexican restaurant. Following the opening of Zambrero Oxenford in South Queensland by a matter of hours, Zambrero Tamworth in New South Wales, marked this significant brand milestone and it was followed in quick succession with another six restaurants in South Australia, Tasmania and News South. The rapid growth is set to continue in 2017 with plans for further global expansion. “We attribute this continual success to our innovative healthy Mexican cuisine, amazing brand culture, passion for customer service, and strong franchisee partnerships which complement Zambrero’s philosophy of serving good food that does good,” said Chief Executive Officer Karim Messih. Zambrero was founded by Dr Sam Prince in 2005 at the age of 21 while he was studying medicine. His aim was to establish a successful business that also helped people in need. At the heart of its business model is the Plate 4 Plate initiative, which means for every burrito or bowl sold, Zambrero donates one meal to someone in need. “I’m thrilled to have reached one hundred and fifty restaurants and am really proud of the Zambrero team. With the opening of every restaurant we take one more step on the road to end world hunger and to making my vision to donate one billion meals by 2025 a reality,” says Dr Sam Prince. “For Zambrero, the future means ending world hunger and inviting the world to join us in our movement, either as a happy customer, a franchise partner or a future employee, as we continue to expand rapidly.” More than 11 million meals have been donated to date, supported by Zambrero’s international and Australian distribution partners, Stop Hunger Now and Foodbank.
8 Business Franchise Australia and New Zealand
Guzman y Gomez, Australia’s fastest growing fast food company, has opened doors to its first Australian flagship taqueria in Australia Square. The newly designed taqueria brings together elements that the Guzman y Gomez guests know and love with distinctive additions to the menu and a design that make GYG Australia Square a totally fresh dining experience. Spanning across 120 square metres and seating up to 80 people, diners at Australia Square will be immersed in a modern space that reflects the evolution of fast food design. The opening of the new taqueria coincided with Guzman y Gomez’s 10th birthday as the business celebrated a decade since opening its first taqueria in Sydney’s Newtown in 2006. “Guzman y Gomez is growing fast and we’re in a position to explore big ideas for the brand. One of the things that sets GYG apart is that we’ve never been limited to a single, carbon copy format, but create taquerias with a sense of individuality. Australia Square has been a chance for us to continue experimenting with fitouts and styles as we move into 2017. “We are proud to be fast food and have no intention of stopping our expansion of food courts, strips and drive-thru taquerias, but this flagship taqueria will create a whole new way for guests to enjoy Guzman y Gomez and we couldn’t be more excited to bring it to them,” said Steven Marks, co-founder and Managing Director of Guzman y Gomez. Kelvin Ho, of renowned interior design and architect firm, Akin Creative was commissioned to design the flagship taqueria. Best known for stunning minimalist retail spaces, Akin was chosen for its expertise in designing relaxed environments with an understated sense of refinement.
high quality but also providing a world class client experience.” To achieve this Narellan Pools introduced a new and incredibly popular concept: Pool School, headed by Mackellar. She comes with extensive corporate experience in designing and delivering leading-edge training, most recently with Optus. During a Pool School immersion course that runs over a number of weeks new franchisees (regardless of their industry background) learn everything from the sales process through to installing a pool. “Covering everything from access and excavation considerations to scheduling, Pool School is designed to ingrain new recruits with all of the knowledge necessary for success,” says Amber Mackellar, Narellan Pools’ National Learning Managing.
Narellan Pools makes key appointments in growth phase Narellan Pools has appointed learning and development expert Amber Mackellar as National Learning Manager as the brand gears up for aggressive growth.
our recruitment strategy away from traditional sources - pool builders and landscapers - and toward business people,” says Narellan Pools Chief Operating Officer, Peter Baily.
As Narellan Pools’ sales grow in double-digits annually, the iconic brand is on a mission to recruit and develop franchisees to service all remaining markets across Australia.
“Over the past 40 years we have come to know that our clients expect a premium level of service and we understand how important it is to boast a franchise network focussed not only on delivering a premium product to a
“In a big shift for the brand, we have moved
“That way we can ensure that regardless of the background of the individual, we deliver the learning they require to optimise their Narellan Pools business.” “This is just the beginning,” says Baily. “Over the next 12 months, with a focus on filling all remaining territories, Narellan Pools is also committed to expanding this industry knowledge into regional areas within Australia, creating employment outside of key city centres.”
WIN FREE eCLASS TRIAL PASSES VALUED AT $297 By defining what you want, knowing what you need to be looking for when researching a franchise and learning how to accurately access franchise business opportunities, you can then buy a franchise with confidence. How to choose a franchise that is right for you is presented in six easy-to follow modules that provide the framework to guide you in this most critical of business decisions: Module 1 – Getting ready Module 2 – Analysing a franchise Module 3 – Asking the questions Module 4 – Going through the paperwork Business Franchise magazine has three (3) free trial passes to a revolutionary new educational offering from Griffith University’s Asia-Pacific Centre for Franchising Excellence. How to choose a franchise that is right for you is an innovative new eClass that builds on the unrivalled suite of resources available at the Centre to promote crucial early education for new entrants to franchising. Specifically developed in response to demands for practical guidance, knowledge and education on the key question of how to choose a franchise that is right for your personal, professional, financial and lifestyle goals.
Module 5 – Analyse the business offer Module 6 – Become a franchisee The class is filled with valuable tools, checklists, calculators, timelines and templates to ensure you are making the most informed and rigorously road-tested decision possible. To enter the prize draw for your chance to win one of three FREE eClass trial passes, simply email cgb@cgbpublishing.com.au no later than 20th January 2017. The entry will be drawn on Monday 23 January 2017 at 10am and the winners will be notified by email. For more detailed course information see page 30.
Business Franchise Australia and New Zealand 9
c ov er sto ry: SO URCELI N X
SOURCELINX
BUiLDING SOLUTIONS THAT WORK Since its inception 20 years ago, Sourcelinx has become a leader in procurement services, developing a state of the art online portal which allows franchisors and franchisees fast and easy access to promotional, branded products and uniforms. Sourcelinx now has three offices, located in Auckland, Brisbane and Guangzhou. Opening their own factory in China means that Sourcelinx offers a high quality but costeffective service, meeting the ever growing customisation requirements of national franchise brands. Sourcelinx are certainly on their way to achieving their company vision ‘To become the Global leader in the field of Procurement Solutions’.
10 Business Franchise Australia and New Zealand
“Franchisees in any location can order an item of uniform, in any quantity, at any size and that individual garment is always at the same fixed price.” while also providing consistency across the network.
Managing Director James Muh says, “Having spent the last 20 years within procurement services - and working alongside the amazing team that we have within our offices - we’ve streamlined our online ordering systems for easy user access and control. “Franchise systems no longer have to deal with 10, 12 or even 15 suppliers for different promotional or branded products. Sourcelinx can fill most of their requirements, via one easy to use online portal which is customised just for them, removing the need to deal with multiple supply chains.”
Quality Branded Solutions “Anything you can place a logo on, Sourcelinx can produce it!” states James. Products include: • Branded Uniforms and Workwear; • Design and supply of customised uniforms; • PPE – Personal Protective Equipment; • Promotional Merchandising including banners and flags, café umbrellas, cups, t-shirts, hats, keyrings, pens, bags and more; • Print Management - Brochures, business cards, custom packs ie. boxes and display packs; and • Embroidery and Screen Printing. Embroidered items are manufactured inhouse, using the latest Tajima machines. This ensures a high standard of quality and also fast, efficient delivery. According to James, “There are a lot of companies out there in the marketplace that provide a similar service but one of the key differences between us is that we have a very
strict quality control procedure. Owning our own embroidery machines means we control the full process – from order to delivery and we are stringent with quality control procedures and consistency of quality, we won’t dispatch anything that’s not to our exacting standards. “Another thing that sets us apart from the rest is our speed of delivery. These days, in a fast paced modern business environment, companies require delivery yesterday, whether it’s consumables or merchandising etc. Our entire process is geared up for speed. From the moment an order is placed, we quote a two week production period but most clients get their goods within a week, which gives us a huge business advantage. Most procurement companies quote 3 to 4 weeks just for uniforms which in this day and age is just not an option. “When a franchise, for example a café, takes on a new member of staff on the floor, you can’t afford to wait that long! Once a new member of staff has been engaged it’s usually just a week or so before they start. Using the Sourcelinx online portal means, in most cases, the branded uniform and name badge etc can be there waiting for the new member of staff from their first day.”
Control Full warehousing, distribution and logistics facilities are provided for franchisors and franchisees in all locations, bringing control to a multi-site franchisor. With a number of high-profile franchise systems already utilising the Sourcelinx online ordering system, James says, “It gives the franchisor control over how they can deliver their brand, their products and their image
“There is so much variety available when it comes to uniforms for example, with different styles and sizes available for men and women alike but we are the only procurement company that I know of that offers a ‘one price policy’ across the board. Franchisees in any location can order an item of uniform, in any quantity, at any size and that individual garment is always at the same fixed price, which is great for budgeting, both at a franchisee level as well as at franchisor head office.”
Client Management Services Sourcelinx staff work closely with clients, often visiting their head office to identify the products required and thereby providing a customised service for each brand, depending upon their individual requirements. With their 20 years of experience, Sourcelinx are experts at manufacturing and sourcing high quality products at the lowest possible price, without sacrificing quality. James also explains that due to their global presence, Sourcelinx are not restricted to locally sourced. “Depending on the volumes required, we sometimes advise clients to go offshore and have their branded items manufactured overseas. This can bring down costs and provide an even wider range of branding options, without the constraints of high prices.” Staff and franchisees can log onto the online portal and start ordering with ease. For pre-branded items Sourcelinx also offer free storage facilities within their warehouses as well as order processing and distribution services across the country. Sourcelinx is known in its field for its innovative creative solutions and staying up-to-date with the latest trends, equipment, new products, and developments. “We stand for quality over quantity, and building and developing strong brand names,” declares James. If you would like more information on how Sourcelinx can help you fulfil your branded requirements, contact them now on: 1800 550 559 sales@sourcelinx.com.au www.sourcelinx.com.au
Business Franchise Australia and New Zealand 11
f r an c h i s e c o u n c i l of aust r a l i a
A Message from the CEO
“The FCA has its mojoback� was perhaps the quote of the day from one of our award winners at the MYOB FCA Excellence in Franchising Awards Gala Dinner. A memorable and vibrant National Franchise Convention closed with a positive buzz for 2016. Attending the NFC event for the first time, I was impressed by the energy, passion and commitment to franchising. It was invigorating to see the FCA
Hall of Fame committee captivated by the Next Gen initiative, offering to mentor the finalists. It is this type of contribution that shows real leadership and commitment to the franchising sector. We would like to wish David Lindsay from Salts of the Earth, the winner of the Australian NextGen in Franchising competition as well as the two finalists, Bao Hoang from Rolld and Nik Leigh of Real Property Photography all the best when they compete against other international finalists at the IFA Convention in the United States in February 2017. The FCA continues to be at the forefront and lead the legislative, regulatory and public policy debate impacting the franchise sector in Australia. During the Convention in Canberra, a delegation of FCA members took the opportunity
12 Business Franchise Australia and New Zealand
to meet with key political leaders; Minister for Small Business, Minister for Employment and Education, The Treasurer, The Prime Minister and the Leader of the Opposition. This type of engagement has proven to be crucial, helping to build an understanding of franchising and forging new relationships with the Turnbull Government. The meetings have been the catalyst for a stronger alliance with the Government and the Fair Work Ombudsman. As we work through some of the challenges the sector is facing with the Government, we will keep members informed of the valuable work the FCA and the FCA Legal Committee are doing to ensure franchising is well understood by policy makers and continues to be a vital part of the economy.
“On behalf of the FCA Board and team, we hope your holiday season was filled with joy and celebration, as we look at 2017 with energy, hope and anticipation of what innovation may bring.” Damian Paull | CEO | Franchise Council of Australia
Our incredibly successful National Franchise Convention 2016 (NFC16) The National Franchise Convention, held from the 9-11 October in Canberra, proved to be a powerful collaboration of like-minded peers coming together to discuss best practice and elaborate on the theme of the year, Innovation meets Opportunity. As outlined in my address, last year’s convention was an opportunity to reflect and celebrate the successes of 2016, to come together as a community, to share stories and insights that fuel the creative spirit and to build relationships that in the longer term help us all to grow. Growth as a concept underpinned the conference theme of ‘Innovation’ which is quickly becoming a vital part of every
“Our challenge now is to harness the energy released by innovation, look for ways in which we can disrupt ourselves and move forward, keeping pace with change and where possible leading it.” business. Our challenge now is to harness the energy released by innovation, look for ways in which we can disrupt ourselves and move forward, keeping pace with change and where possible leading it – and as we reminded our politicians, franchising is where innovation delivers real economic value. The Hon Michael McCormack clearly understands that message. We were thankful that the Minister for Small Business could open the NFC - he is clearly an advocate for the small business community. We were also very lucky
to have Natalie James, the Fair Work Ombudsman who took the time to speak at our convention highlighting the issues of joint employer liability and providing the necessary steps to push best practice into the franchise sector. We will continue working closely with the regulators of the sector – to provide transparency and to position us at the forefront of small business discussions, so we can participate, advocate and lead on the issues that matter to the franchising community.
Business Franchise Australia and New Zealand 13
f r an c h i s e c o u n c i l of aust r a l i a
We were honoured that the following innovation and business leaders were keynote speakers at our convention – Peta Credlin, SKY News Contributor, Alex Malley, CEO of CPA Australia and author of The Naked CEO, Dr Sam Prince, Founder of Zambrero and Catherine Monson, CEO of FASTSIGNS International, among many others. These incredible industry leaders and game-changers not only inspired the delegation to achieve more, but also reminded us how vital it is to give back to the community. It was a pleasure to hear them speak at our convention. Aside from the inspiring keynotes, delegates also had the opportunity to network at an array of events, participate in concurrent sessions focused on topical issues, engage in the round table discussions and hear from our Franchise Hall of Fame and leaders of the best franchising systems in Australia.
Congratulations to the MYOB FCA Excellence in Franchising Award Winners We extend our warm congratulations again to all the winners and finalists of last year’s MYOB FCA Excellence in Franchising Awards, which were presented at the Gala Dinner to conclude the convention. These
“We will continue working closely with the regulators of the sector – to provide transparency and to position us at the forefront of small business discussions.”
awards honour the best and brightest franchise systems and individuals for their incredible commitment to excellence in franchising. It was truly inspiring to see the hard work and dedication these winners put into their businesses. The winner of the prestigious Australian Established Franchise of the Year Award was Poolwerx, with Franchisor and Founder John O’Brien accepting the award with a heartfelt speech. We are also delighted to announce that Natalie Brennan is 2016’s Franchise Woman of the Year. Natalie started her career in the franchise sector at almost 15 years old, and now some three decades later she’s still passionate about franchising and paving the way for other women in this sector. Finally, I would also like to welcome our newest Hall of Fame Inductee, Murray d’Almeida, Chairman of BPS Technology and founder of Retail Food Group. Murray’s commitment, dedication and contribution to the franchising sector is unparalleled and we are proud to have him in our Franchising Hall of Fame.
14 Business Franchise Australia and New Zealand
To all our entrants, finalists and winners, you are all to be commended for your exceptional efforts and we wish you all the very best for your future successes. For those that wish to enter the MYOB FCA Excellence in Franchising Awards for 2017, please check our website for state date openings. Finally, as we say goodbye to 2016 our thoughts turn to our family and friends, holidays and festive times. On that note, on behalf of the FCA Board and team, we hope your holiday season was filled with joy and celebration, as we look at 2017 with energy, hope and anticipation of what innovation may bring. We are deeply grateful for all the support we have received from the franchising industry which has made our progress possible. Regards Damian Paull | Chief Executive Officer Franchise Council of Australia www.franchise.org.au
Franchise System Setup
Franchisee Training HR Support & Helpdesk Online Operations Manuals Network Development Strategy Executive Recruitment Operational Team Support Digital Marketing Strategy www.fcbs.com.au contact@fcbs.com.au (03) 9533 0028
Quality ISO 9001
Business Franchise Australia and New Zealand 15
pr o fi l e : V I VA EN ERGY
The Smarter Way to Fuel Your Business With any fuel card, a common concern for many is security. For peace of mind, Viva Energy has ensured that advanced security and fraud protections are built-in to Shell Card. In the event of loss or theft, you can cancel or suspend your card. And you can set up Smart Alerts to email you about any unauthorised activity. When Viva Energy attended the National Franchise Convention in Canberra this October, they weren’t just there to celebrate the efforts of the many people who contribute so much to the economy. They were there to speak with them, and learn ways their businesses can be made easier. And that’s what Shell Card does. Let’s recap what it offers: • Access to over 1000 sites
Are you a business owner, or responsible for balancing the company books? Then you know how much time is eaten up when accounting for ongoing operating costs, such as fuel. It never ends! Especially when it comes to tax time – all those loose receipts, stuffed into glove boxes, or unreadable from being carried around in wallets for months. Well, those looking for a better way to manage those expenses may have found their solution, with Viva Energy’s Shell Card. As the exclusive licensee of Shell products in Australia, Viva Energy’s proudly stated company mission is to ‘keep local industry moving’. For franchises and small businesses in particular, Shell Card is an easy way to oversee your fuel management, and is sure to save a lot of headaches come End of Financial Year.
Let’s look at how it works
• Earn points with flybuys at Shell Coles Express locations
Shell Card offers a lot of benefits, but the biggest is convenience. For starters, you can manage it all online. You can keep track of all past invoices, and easily generate detailed reports for tax purposes. All that info is right at your fingertips, there when you need it.
• Potential savings with Shell Card discounts on every fill
This means that whether you’re running one or two vehicles in a family landscaping business, or managing a fleet of couriers, Shell Card can streamline all your paperwork with consolidated statements and tax invoices. Detailed transaction reports can also be easily generated. How good is that?
Further, if you’re a Head Office looking to offer improved value to your franchisees, Viva Energy also offers great deals for groups. All you need to do is contact Viva Energy to discuss an offer, tailored for your needs.
Finding a service station to use your card at is no trouble either. You can use Shell Card at over 1000 sites, including all Shell Coles Express locations. That’s great coverage across the country! With the network growing all the time, you can use the Shell Fuel Finder tool to find your most convenient Shell Card accepting Service Station online. Better yet, using Shell Card can help your bottom line. Not only could you save every time you fill up*, cardholders can also earn flybuys points when used at Shell Coles Express locations. Make no mistake - those points definitely add up!
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• Flexible payment methods and terms • Reduced admin and paperwork • Security and fraud protection.
It all adds up to make Shell Card one of the most simple, effective, and convenient programs of its type in the country. And just think: no more glove-boxes stuffed with receipts! To learn more about how Shell Card can help visit vivaenergy.com.au/shellcard/ businessfranchise or give Shakeeb from Viva Energy a call on 03 8823 4897. Whether you’re an individual business or a franchise Head Office, he’ll work with you to customise a solution that’ll keep you moving. *Terms & Conditions will apply. Discounts available may vary
SHELL CARD IS THE SMARTER WAY TO FUEL YOUR BUSINESS Viva Energy is committed to keeping you moving, with Shell Card. Packed with benefits, it’s an easy way for small businesses and franchisees to streamline admin, manage paperwork, and access discounted prices on Shell’s quality fuels. Even better, if you’re a Head Office managing a franchise network, there may be greater savings per litre in store with a solution tailored just for you. Enjoy receipt free glove-boxes for your business, with Viva Energy and Shell Card.
Contact Shakeeb today on 03 8823 4897 to learn how you can: - Reduce admin and paperwork - Save money and stress - Earn flybuys points at Shell Coles Express sites - Use your Shell Card at over 1,000 locations - Experience peace of mind with security and fraud protection - Manage cash-flow with flexible terms and payment options Or arrange a meeting by visiting vivaenergy.com.au/shellcard/businessfranchise
Business Franchise Australia and New Zealand 17
e xpert a dv i c e
How to foster a culture of employee engagement 18 Business Franchise Australia and New Zealand
Keeping employees engaged can have a significant impact on an organisation’s top line. An excellent way of doing so is to seek feedback throughout the employee lifecycle to ensure that they feel valued and have input into how to improve their working environment. Recent research by Gallup found that a five per cent improvement in employee engagement can lead to a three per cent increase in sales, confirming the dividends this can deliver. The research also found that there is much room for improvement when it comes to employee engagement, with just 29 per cent
POOL & SPA
BUILD YOUR FUTURE WITH A RETAIL ICON
As one of Australia’s iconic retail brands, with a proud history over the past 70 years, we now have 65 stores nationally. Our award winning franchise model commenced in 1995 and offers a vibrant product range providing you a great platform to start your own successful business in the pool and spa industry. Our business development and support teams will assist you in building your successful business. We have a number of new franchise models available and are looking for motivated and business orientated people to join our network. Clark Pool & Spa Shops start from $147,500 plus working capital.
Our industry knowledge will help you build a strong business, becoming the local pool specialist in your territory and helping you work in a lifestyle environment. Our franchisees benefit from: • • • • • • • •
Unparalleled national and local support Proven marketing and business strategies Group buying power No franchise renewal fees Turnkey development and set up Retail brand celebrating 70 years Multi Award winning franchise system Unsurpassed initial training and ongoing support
If you would like to hear more about franchise opportunities in your area, please contact Dirk Heinert for a confidential discussion on (03) 8727 9999 office or mobile 0400 922 493 or dirk.heinert@clarkrubber.com.au
clarkrubber.com.au Business Franchise Australia and New Zealand 19
e xpert a dv i c e
“Employee engagement surveys gauge the levels and key drivers of engagement. This helps the organisation to benchmark engagement across all departments and employees.” Bill McMurray | Managing Director, Asia Pacific and Japan | Qualtrics
of employees found to be actively engaged in their jobs, 54 per cent not engaged, and 17 per cent actively disengaged. Actively disengaged employees can undermine what other colleagues are trying to accomplish, and they bring an air of negativity and unhappiness to the workplace, which is not good for anyone. The statistics are worrying because, if employees are not engaged, this will greatly inhibit an organisation’s chances of achieving their business objectives. Engaged employees care about the company and its future direction. They also enjoy what they do and are committed to being successful on a personal level, as well as helping to deliver success to the company as a whole. It goes without saying that these are all attributes a company would want in its employees, so how can managers foster an environment where that type of engagement is prevalent? Collecting feedback from employees at every stage of their interaction with the business can give the organisation insight into how they can improve the employee experience and retain top talent. It’s common sense to give those who are working at the coalface the opportunity to report on what they think works and what needs to improve. This approach helps the business identify and solve problems much sooner, with minimal damage to the business. It is also a great way to get employee buy-in and improve staff morale, as they feel they are respected and are making a valuable contribution to the company. Organisations should focus employee lifecycle feedback programs on the following key employee touchpoints:
Recruitment: Candidates should be evaluated throughout the pre-hire process to give the organisation insights before employees are onboarded. Recruiting surveys help the organisation make better hiring decisions and identify changes that need to be made to the recruitment,
assessment and selection processes, as well as improve acceptance rates.
Developmental 180- and 360-degree surveys: Organisations are abandoning traditional performance reviews and moving towards 180 and 360-degree assessment reviews instead. This means that, rather than just receiving performance feedback from their manager, employees also get feedback from peers and other departments to build a holistic performance review.
Organisations should solicit feedback from both successful and unsuccessful candidates to get a broader range of perspectives on the recruitment process.
To be effective, organisations should base these assessments on the employee’s core competency model and distribute the reports within 24 hours of collecting the data so it’s still relevant.
Onboarding:
Employee exits:
Onboarding feedback measures how new employees rate their early experiences with the organisation, including training and orientation. These surveys are valuable, as they can show whether employees have the knowledge and training required to be successful in their jobs.
Exit surveys are important to help an organisation identify the reasons employees leave so changes can be made where needed to reduce the expensive turnover process.
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Quantifying the reasons for leaving, especially regretted departures, can help produce insights that the company can act upon. Automated surveys also help to produce honest feedback, which is often harder to obtain in face-to-face exit interviews.
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Companies invest significantly in new employees. By improving the onboarding process, the ramp time to value can be reduced, thereby accelerating the ROI from the new hire investment.
Employee engagement survey: Employee engagement surveys gauge the levels and key drivers of engagement. This helps the organisation to benchmark engagement across all departments and employees. The feedback then lets managers develop action plans to address any highlighted areas for improvement.
Engagement pulse surveys: Pulse surveys complement employee engagement surveys. They let organisations dig deeper into the issues that arise in the annual or bi-annual engagement surveys, or into a particular team/department. They also let organisations monitor trends over time and identify seasonal issues. Pulse surveys are most effective when implemented throughout the year to determine the effectiveness of any action plans that were developed based on the engagement survey feedback. By using smaller samples of employees (that are statistically representative, e.g. 10 to 25 per cent) organisations can avoid survey fatigue and ensure higher response rates.
20 Business Franchise Australia and New Zealand
Employee engagement is directly linked to improved customer experience, which, in turn, is directly related to increased revenues, so it should always be a key focus area for organisations. One of the best ways to run an employee lifecycle program is through a realtime survey platform that is sophisticated, yet easy-to-use. This way, it is easy for employees to provide feedback and the organisation can see the feedback in real-time (even before the survey has closed) so they can take action quickly on the data being collected. In summary, a clear vision from management, combined with an inclusive culture that provides employees with the opportunity to contribute to the success of the organisation, as well as a clearly-defined pathway for their own personal development, will go a long way towards fostering a climate where employee engagement is high. Bill McMurray is Managing Director Asia-Pacific and Japan, at Qualtrics. Bill is an international technology executive with over 30 years of experience in the Information, Communication and Technology (ICT) industry. www.qualtrics.com
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OWN A SLICE OF LA PORCHETTA! Join the largest Italian restaurant chain in Australia and New Zealand. You will love taking part of serving our guests quality Italian food, to order, using fresh ingredients.
WHY LA PORCHETTA? t " QSPWFO QSPýUBCMF PQFSBUJPO t 8F IBWF TUSPOH MPDBM BSFB NBSLFUJOH support and advice. t #F QBSU PVS EZOBNJD BOE FOHBHFE GBNJMZ PG SFTUBVSBOUT UIBU MPWF QFPQMF t 8F BSF B NVDI MPWFE BOE SFDPHOJTBCMF OBUJPOBM CSBOE t +PJO PVS UFBN PG SFTUBVSBOU PXOFST XIP love getting together and share ideas. t 8F PGGFS B þBU GFF TUSVDUVSF UIBU BMMPXT ZPV UP CVJME ZPVS CVTJOFTT GBTUFS
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Visit: www.laporchetta.com.au/franchising Email: franchising@laporchetta.com.au OR call (03) 9460 6700.
fr a n c h i s o r i n d ep t h : St e v e Cost i ’s Fa m o us F i s h
SET SAIL WITH STEVE COSTI’S FAMOUS FISH Want to be your own boss? Have more control of your time? Spend more time with your family? Or, do you just love seafood and care about the quality? If the answer to any of the above is yes, then Steve Costi’s Famous Fish is the franchise opportunity for you! On a mission to supply phenomenal seafood while giving customers an amazing dining experience, Famous Fish are looking for like-minded individuals to join their franchise family.
FROM THE GROUND UP Steve Costi discovered an entrepreneurial flair and passion for offering the freshest seafood available after working within and building upon his father’s retail business, which first started trading back in 1958. “Steve recognised that in order to scale his current retail model and take it to the masses, certain elements of the model needed to evolve in order to make it franchise ready,” says General Manager Sal El-Houli. “From there, he partnered with a like-minded successful entrepreneur (former owner of Michel’s Patisserie - Jon Sully). We have since rebuilt the entire retail model from the ground up by evolving to a new look and feel diner, menu, systems and processes in order to make the retail model franchise ready. We’ve substantially changed the entire aesthetic makeup of the business. We’ve kept all the working parts from Steve’s existing retail model, tweaked others, created new ones, and eliminated redundant ones to get us to where we are right now, which is a model that is really scalable. “Our overall strategy has been built around our two most important stakeholders the consumer and the franchisee. From a consumer perspective, we wanted to ensure that the overall offer is both an appealing and a compelling one across all touch points. That includes our in store environment, our
22 Business Franchise Australia and New Zealand
“Committed to attracting an exceptional calibre of franchisees, Famous Fish want everybody involved in the business to have fun, enjoy what they do and look for opportunities to give back to their local community.”
Steve Costi
menu, the quality of our food, and of course our people. We know that getting these things right will lend itself to far greater perceived value for our customers, which is why they are the key elements of our day to day operations. From a franchisee’s perspective, we needed to ensure that we have robust training and support, all underpinned by a strong financial model that gives the franchisee every opportunity to succeed, and in doing so allowing them to look at partnering with us for the long term, and ultimately becoming multi-site business owners. We understand that the customer and our franchisees need to be at the heart of everything we do in order to afford us the opportunity to expand on a national basis,” says Sal.
THE FUTURE OF SEAFOOD IS HERE The number one take-away food item sold by independent stores, Australia’s appetite for seafood has increased by 27 per cent per capita since 1997 and is increasingly seen as the appropriate ‘fast food’ by governments, health agencies and consumers alike. Steve Costi’s Famous Fish recognised that of the 30,000+ take-away outlets, generating in excess of $7 billion in retail sales, there were no multi-unit, integrated seafood franchises. Referring to the launch of the franchise model, Sal says, “What we wanted to make sure we did was to absolutely remain true to good, old-fashioned fish and chips. For most people, on a Friday night, fish and chips is their takeaway food of choice. So, we wanted to make sure that – everything about a fish and chip shop, and the food that people have
come to know and love – remains at the core of everything we do. We’ve got all of the products that you would typically get at your local fish and chip shop, but we’ve also tried to expand a little bit on that. “We’re always looking to evolve in order to remain relevant to the changing generational landscape. More and more, people want to feel like they have an influence over how their meals are made up or what they’re actually going to eat. Consumers are becoming a lot more sophisticated and educated about what they can consume, how they consume it, and what options are available to them. For example, we’ve got mixed seafood grills, seafood chowder, and gourmet burgers all exclusive to us, which have been very successfully launched and well received by our customers. We aim to always remain slightly
unpredictable and interesting; yet make sure that our menu continues to have a strong appeal to a very broad audience.”
FAMILY VALUES Committed to attracting an exceptional calibre of franchisees, Famous Fish want everybody involved in the business to have fun, enjoy what they do and look for opportunities to give back to their local community. Living and breathing these principles within the organisation, Famous Fish are looking for franchise partners that embody these values. “We always try and secure a franchisee that’s been well-entrenched within their local community over a period of time,” continues Sal. “They know the community; they know the ebbs and flows of what makes the
Business Franchise Australia and New Zealand 23
fr a n c h i s o r i n d ep t h : St e v e Cost i ’s Fa m o us F i s h
community tick – what’s important to the community. We always want to maintain the spirit of a locally owned fish and chip shop. We believe there’s an element of romance and certainly a level of loyalty that comes with that. You’re going into your local fish and chip shop and you know the owner by name, or the owner knows their customers by name. By the same token, we want our franchisees to have a strong appetite to want to get involved in giving back to their local community. So, they’re the things we look for in a franchisee. An example of the type of thing we do to really connect and give back to our local communities is an initiative we call our “Famous Fundraiser Night”. “We will actively look to compile a list of all the local community groups – it could be the local football club, or the local nursing home, and we’ll actually go to them and say, ‘We want to work and partner with you to help you raise some much-needed funds for your cause.’ So, we’ll give them a whole Monday night between 5pm and 10pm. We say to them, ‘We’re going to give you all the tools and resources to help promote this night to all of your community, and we want you to invite as many people as you can to come in and dine with us on that night, and in doing so will be supporting your cause. We will then give you 25 per cent of all the proceeds from that night back to your cause – no strings attached, no questions asked.’ We’ve done that quite successfully, it’s been incredibly well-received, and we’ve built a lot of goodwill on the back of that. Wherever we get a chance, we never say no to an opportunity to genuinely partner and give back to our local communities. We always want to get involved in some way, shape or form, and we have been and will continue to do that.”
“We’re always looking to evolve in order to remain relevant to the changing generational landscape. More and more, people want to feel like they have an influence over how their meals are made up or what they’re actually going to eat.” A BRIGHT FUTURE WITH FAMOUS FISH With a targeted strategy to open 100 stores, Sal and the Steve Costi’s Famous Fish Head Office staff are with you every step of the way, both pre- and post-opening of your store. After completion of the initial start-up training which includes site selection assistance, lease negotiation, pre-opening marketing, and a five week training program utilising both classroom and in-store practical sessions, a Store Operations Specialist works closely with all new franchisees and helps you step-by-step to make sure that you have everything in place before opening day. “We’re looking to partner with smart people who are prepared to work hard, lock arms with us, come on this journey, and grow with us as well,” Sal says. “There’s no better time – there are opportunities aplenty in terms of locations. We’re certainly keen and eager to find the right parties and move forward within
24 Business Franchise Australia and New Zealand
an industry we know represents significant opportunity and growth. We know it’s the number one takeaway food sold in the country by independent food operators, so science tells us there’s a significant market to be capitalised on. We know we’re going to have a lot of successful franchisees on our books in the months and years to come, and we’re on that journey. We’re just at the start of it,” finishes Sal. Expecting to hit double digit store figures in 2017, now is the perfect time to join this fast-growing franchise. Steve Costi’s Famous Fish are looking for people who like to have fun, enjoy what they do and love seafood with a passion. If this sounds like you, contact Sal El-Houli now on: 03 5975 8614 franchising@famousfish.com.au www.famousfish.com.au
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We are seeking business-minded and motivated individuals who have a background in a variety of industries.
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e xpert a dv i c e
5 mistakes to avoid when looking for a new franchise In today’s market if you’re tossing up between starting your own independent business or opting for a franchise then it’s vitally important that you research all your options. Given that people establishing their own businesses must deal with a vast amount of operational, technological and regulatory challenges, franchising is an attractive alternative.
Research shows that franchises are more likely to succeed than independent small businesses. The Griffith University Franchising in Australia report (2012) showed that, post GFC, the franchising sector shifted into economic recovery sooner than the general small business sector with the sales turnover for the entire Australian franchising sector estimated at that time at $131 billion. However, there are always risks. You need to assess the risk effectively based on your personal position (competency and capital) then weigh that up against the capital required and the potential return. This should form the basis of your decision on whether to invest or not. In order to make the best decision possible when choosing to dive into a franchise, here are five mistakes to avoid.
26 Business Franchise Australia and New Zealand
1
Failing to trial a product yourself
Would you believe that some franchisees attempt to get into a new business without actually experiencing the product or service themselves? This is a big mistake! Whether it’s a gym, personal services company or beautician – whatever the business is - you need to experience first-hand what the customer experiences. In my fitness franchise 12 Round Fitness (12RND), we offer customers a purpose-built boxing and functional strength training facility, designed to deliver workouts created around the format of a 12-round boxing contest. It’s a unique concept in the Australian fitness industry, so I always urge interested franchisees to come and do a circuit at one of the gyms first. Once they experience it
“Don’t be solely swayed by media hype on a particular trend. Always do your own due diligence and thoroughly investigate a new industry yourself before committing to anything.” Tim West | Managing Director and Founder 12 Round Fitness (12RND)
franchising in this industry is a solid option. When developing each of my fitness businesses, I read everything I could about the subject. I studied reports, subscribed to blogs, bought magazines, looked online, identified industry leaders, and followed experts on Instagram, Twitter and Facebook. I went into my ventures fully prepared. If you still need clarification, then set up some meetings with leaders in the field and pick their brains. Many people will be only too happy to help you out if you have a genuine interest in the industry.
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Not quizzing and investigating a franchisor enough
It’s vitally important to ask a franchisor the right questions. If a franchisor is not forthcoming with information, seems vague, disinterested or overly pushy then be wary. If you are going to invest a chunk of your money then you need to be comfortable with who you’re dealing with! You need to ask them for all the vital details relating to finances, marketing etc, and expect them to be open and honest. Both franchisee and franchisor must have a relationship based on trust and aligned outcomes.
themselves, it’s much easier for them to envisage it as a viable business.
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Believing the hype and nixing the research
Don’t be solely swayed by media hype on a particular trend. Always do your own due diligence and thoroughly investigate a new industry yourself before committing to anything. Try to get an overall picture and uncover how much consumers spend on a particular industry and its rate of growth. For example, Australians spend $8.5 billion on health and fitness per year. The industry is growing at a rate of 3.1 per cent annually. These figures are in line with comparable economies around the globe and show it’s one of the fastest growing and most stable industries in the world. So in my opinion,
Importantly, do a research check on the business and the person you’re dealing with. Get to grips with the history and culture of the business. Also do market research on the long-term potential of the service or product. Remember a business based on a short-term trend isn’t sustainable for the long haul. Then assess if your core values align. If one of you is ‘only in it for the money’ then you could have issues down the track. Speak to the franchisor’s employees and contacts if possible to get an outside perspective on them.
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Forgetting that you need to pay yourself
Unless you are going to run the business from day one as an ‘absentee owner’ you will need to include your wage (however modest) as an expense in the financial forecasts to give you the full picture. Too often franchisees fail to do this and put themselves under great financial stress. If the business can’t afford to pay you for your time, as it would for any
other staff member, then it may not be a viable option for you. Understand that when you’re investing in a franchise it’s not a one-time deal. Aside from your own wage there will be ongoing costs needed to support the venture. In the franchise disclosure document there will be an estimate of the amount of investment you’re required to make. Take a good look at this, do your sums and then have more set aside as contingency.
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Getting into something without the relevant skills
Honestly assessing your skill set is an important step. If you have skills and knowledge that are relevant to key roles within the business then it decreases your risk as you can step in when and if required. Exaggerating your ability to add value and walking into something unprepared is naive and also makes you reliant on staff who may know more than you. In my own experience, as I’m a qualified personal trainer I have a thorough knowledge of the fitness industry, and have previously run several successful fitness related businesses. This is why I classify my latest venture as franchisor of 12RND to be at a lower risk than previous investments in technology. However, even if you don’t have specific experience in an industry, it is still more than possible to successfully take on a venture. You just need to do your research beforehand and ask the right questions. Tim West is the innovative Managing Director and Founder of 12 Round Fitness (12RND) which aims to provide the most convenient, results-driven product in the world. Each 12RND club is a purpose-built boxing and functional strength training facility, designed to deliver workouts created around the format of a 12-round boxing contest. Tim has been at the helm of several successful fitness and technology ventures throughout the last 18 years. For more information visit: www.12Round.com.au
Business Franchise Australia and New Zealand 27
pr o fi l e : AYERS R O C K RESO RT
Uluru’s Field of Light to glow until 2018 Field of Light, the monumental art installation at Uluru, is extending its stay for another season. The Uluru-inspired work, from British artist Bruce Munro, has struck a chord with visitors since making its debut within sight of the much-revered monolith in April 2016. Ayers Rock Resort is now extending the installation which has been a sell-out success since opening, until 31 March 2018. The decision follows universal acclaim for the Australian version of Munro’s masterpiece. The UK’s Daily Telegraph called it “a joyous work of art, in every sense a brilliant intervention in the landscape” while the LA Times said the site was the place for the “ultimate night-time selfie”. The extension comes on the 25th anniversary of Munro’s 1992 visit to the Red Centre that inspired the installation and his life’s work. The very first of the Field of Light debuted in England in 2004 with just 10,000 illuminated stems. The work went on to dazzle visitors at various sites across the UK, United States and Mexico before arriving “home” to Uluru in 2016. The solar-powered exhibition (the largest to date) is a carpet of 50,000 stems crowned with radiant frosted-glass spheres, all connected via illuminated optical fibre and “planted” in the red sand around tufts of spinifex. The spheres come to life as darkness falls over the central
Australian desert, complementing rather than competing with an outback sky glittering with countless stars. Conference delegates can delve into Field of Light in several ways, from a special dinner under the night sky at the experiential artwork, with inclusions such as sparkling wine and canapés at sunset accompanied by didgeridoo and an Indigenous performance followed by a three-course dinner showcasing bush ingredients, to an exclusive sunrise breakfast. In addition to Field of Light, delegates can enjoy other unique experiences at Ayers Rock Resort. Programs can include camel rides over the red sand dunes, Indigenous cultural experiences, the Desert Awakenings sunrise tour and the iconic Sounds of Silence dinner. The Uluru Meeting Place, Ayers Rock Resort’s multi award-winning conference centre includes two main conference spaces that can host 306 delegates and 420 delegates respectively with theatre style seating. The rooms can be sub-divided with acoustically rated walls, or opened up to become one common space for exhibitions or trade shows. A light-filled pre-function area adds more flexibility to the complex while an outdoor amphitheatre can host up to 350 guests. Advanced audio-visual equipment is seamlessly integrated throughout. For more information contact: 02 8296 8067 conferences@voyages.com.au www.ulurumeetingplace.com.au
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h av e yo u r s ay: G r i ff i t h Un i v er s i t y
The Answer to the Big Question for New Franchisees
How do you choose the best franchise for you?
A revolutionary new educational offering from Griffith University’s Asia-Pacific Centre for Franchising Excellence has been launched to address the most important of decisions facing those embarking on a journey to become a new franchisee.
30 Business Franchise Australia and New Zealand
This is a unique new educational tool, not available anywhere else in the franchise sector, which provides the valuable framework and signposts for prospective franchisees to navigate what is a life-altering business decision. It is 100 per cent impartial and independent, with no vested interests or selling of franchise systems. The eClass content has been specifically developed in response to demands for more practical guidance, knowledge and education on the key question of how to choose a franchise that is right for your personal, professional, financial and lifestyle goals. Just as ever-increasing consumer demands have lifted the standards of product and service offerings across all aspects of modern society – from buying a coffee, a car, a house or holiday – it is envisaged that this new learning tool will help to boost standards throughout the franchise sector on the back of better educated and more discerning franchisees. Centre Director Professor Lorelle Frazer said the new ‘How to choose a franchise that is right for you’ class adds another important layer of learning to pre-entry franchising education. “This is a ground-breaking new product for those who have made the decision to buy a franchise, but have yet to decide which one,” she said. “There is no other product available that walks you through step-by-step the process of actually deciding which franchise is best for you, with no strings attached.
There are consumer signposts everywhere today for people looking to make purchases of all shapes and sizes. Consumers have a myriad of ratings, comparison mechanisms and checklists at their fingertips at all times. But where do you find similar buyer-focussed information when you are looking to buy a franchise? Knowledge is power in any decision-making process and buying a franchise is arguably the biggest and most important decision that someone will make in their lifetime. ‘How to choose a franchise that is right for you’ is an innovative new eClass from the Centre that builds on its unrivalled suite of resources to promote crucial early education for new entrants to franchising.
“We are very proud to be delivering this new self-guided eClass in response to demands from prospective franchisees for more guidance on this most important of decisions, and we believe it will have a positive flow-on impact across the franchise sector.” The ‘How to choose a franchise that is right for you’ eClass is a sector-leading product that aims to fill the gap for an easy-to-follow roadmap that will guide the way for those making their first steps into franchising as a new franchisee.
“There is no other product available that walks you through step-by-step the process of actually deciding which franchise is best for you, with no strings attached.”
decision. To probe, question, compare and analyse, not just blindly accept what someone selling a franchise says. It is the essential guide to choosing, buying and becoming a franchisee and provides the proven know-how to expertly navigate this process, covering everything from understanding franchise terms, the questions to ask, the paperwork and costs involved, due diligence and the professional advisers you need on board. There are endless franchises out there to choose from and plenty of traps for unsuspecting new-comers to franchising. This class will help to avoid the pitfalls, save money in the long run by making the right decision up front, and set the foundations for a successful and sustainable franchise journey. ‘How to choose a franchise that is right for you’ is presented in six easy-to follow modules that provide the framework to guide you in this most critical of business decisions: Module 1 – Getting ready Module 2 – Analysing a franchise Module 3 – Asking the questions Module 4 – Going through the paperwork Module 5 – Analyse the business offer Module 6 – Become a franchisee The class is filled with valuable tools, checklists, calculators, timelines and templates to ensure you are making the most informed and rigorously road-tested decision possible.
Choosing a franchise is a big decision that will have a huge impact on a new franchisee’s finances, work-life balance and future. It therefore makes sense for this decision to be afforded the same level of scrutiny, comparison and analysis as more routine and less influential purchases.
Key learning outcomes include an understanding of: why you want to buy a franchise; the different franchise types and their pros and cons; how to assess the franchise business model and if it is suited to you; the processes to go through to know what you are actually buying; and how to go about making a decision on which franchise to buy.
The overriding goal of ‘How to choose a franchise that is right for you’ is to empower those seeking to buy a franchise to take full responsibility for what is a life-altering
For more information contact Kerry Miles at: 07 3382 1125 www.franchise.edu.au
Business Franchise Australia and New Zealand 31
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why clever beats innovation the three p’s of franchising
VOL 11 ISSUE 02 jan/feb 2017
MAKE 2017 ALL ABOUT YOU FRANCHISE OPPORTUNITIES NOW AVAILABLE No Hairdressing experience required Full training provided
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34 Business Franchise Australia and New Zealand
40
Contents On the Cover Image: Luxaflex Gallery Dealer of the Year 2016, Mark Triester Owner of A Style of Shade, Sydney.
48
38 Cover story: Unrivalled Support from a World Leader
Luxaflex Window Fashions
54 Expert Advice: The Three P’s of Franchising
Richard Wynn, FutureYou Executive Recruitment
60 Expert Advice: Why Clever beats Innovation
Brian Walker, Retail Doctor Group
56
34 Hairhouse Warehouse 36 What’s New! Feature news 40 Feature: How to Prevail in Retail 43 TSG Franchise 44 Expert Advice: Raising the bar for Franchisor Responsibility—but at
what cost?
Steve Wright, Retail Council
48 Expert Advice: Preparing your Franchise for the Pressure of January
Mark Hoppe, Atradius
50 Focus: Clark Rubber 56 Expert Advice: Leasing: What you need to know as a Franchisee
62
Peter Fiasco and Alex Ellis-Czerkaksi, Hairhouse Warehouse
62 Expert Advice: Watch out for Problematic Contract Terms
Dr Michael Schaper, ACCC
A regular of Business Franchise Magazine, our special supplement in franchising showcases a different industry each issue To share your specific expert industry advice or to feature your franchise in the next issue, please contact: Kathleen Lennox, Sales & Marketing Manager Phone: 03 9787 8077 Email: kathleen@cgbpublishing.com.au
Business Franchise Australia and New Zealand 35
what’snew! Australian NSW introduces retail Franchisees to Benefit from Union of leasing reform bill Retail leasing in New South Wales is about to be changed to improve Retail Powerhouses transparency for tenants under the first reforms introduced to NSW parliament to update the Leases Act in 20 years, according to a media report. Among other changes is the development of a sales reporting code, first recommended by the Productivity Commission’s inquiry into retail leasing in 2009, which allows retailers to request retail category values from landlords.
New union targets franchise workers A new union for retail and fast food workers has named five specific franchise brands it is targeting in its campaign to recruit members and Two of the biggest names in Australia’s retail industry, Retail Food Group (RFG) and the National Retail Association (NRA), have joined forces as part of a new addition to RFG’s internal support program for franchise partners, RFG Foundations. Available to franchise partners across RFG’s various Brand Systems, including Gloria Jean’s Coffees, Donut King, Brumby’s Bakery, Michel’s Patisserie, bb’s Café, Pizza Capers and Crust Gourmet Pizza Bar, RFG Foundations includes a subsidised membership with the NRA.
to restore full payment of penalty rates to workers. The Retail and Fast Food Workers Union (RAFFWU) will directly compete with the Shop, Distributive and Allied Employees’ Association (SDA) for members, with RAFFWU claiming that enterprise agreements the SDA has negotiated with supermarket and fast food chains enable the underpayment of workers by at least $300 million each year. RAFFWU has also announced that it will specifically target workers of
The membership provides RFG franchise partners and their team members with access to a range of NRA accredited training programs and opportunities, including the option to complete a Certificate III in Retail Operations Workshops. The NRA also offers services in employment tools, workplace relations and legal advice.
franchise brands including McDonald’s, Hungry Jacks, Red Rooster,
“RFG Foundations is all about equipping our network with the tools they need to attain the strong business they’ve always envisioned and there is no greater asset to our franchise partners than a membership with the country’s largest and most representative retail industry organisation,” RFG CEO Gary Alford said.
agreements with the SDA which traded some penalty rates for higher
“We are pleased to be in a position to connect our franchise partners with the NRA, who have represented the retail industry for decades and share our passion for assisting Australian business owners.” The membership also provides access to the NRA’s workplace advice line and online portal where franchise partners can access news, documents, forms, industry research, and events. In additional to valuable NRA resources, the RFG Foundations support program supplies franchise partners with internally-led training workshops and materials, as well as a discount on selected travel with Virgin Australia, with more offers and benefits set to be added in the future.
36 Business Franchise Australia and New Zealand
KFC and Domino’s for membership, potentially causing disruption and confusion among workers and franchisees of those brands. Many employers as well as franchise chains have negotiated enterprise base hourly rates, however RAFFWU is seeking to overturn these enterprise agreements and restore full penalty rates.
Merged pharmacy chain announces new brand The merger of pharmacy chains Terry White and Chemmart has now received shareholder approval and will proceed under the new brand TerryWhite Chemmart across its 500 outlets, with all locations expected to be rebranded by the end of 2017, according to a media report.
Spectrum Analysis Research Findings published
Spectrum Analysis have been researching the issue of what makes up a trade area (or a territory if you choose to give one), whether for creating a territory or for local area marketing purposes. In most B2C businesses, for example cafés, gyms, Pilates studios, newsagencies, pharmacies, etc, the vast majority of clients are a mixture of people living or working in the area, compared to transients, otherwise known as people just driving through.
Snap-on Tools Announces 2016 Apprentice Snap-on Tools recently announced the winners of their annual Apprentice of the Year (AOTY) Award for 2016. Now in its eighth year, AOTY has established itself as one of the region’s most prestigious award for recognising apprentices from Australia and New Zealand. The respected group of industry representatives chosen as judges had the unenviable task of finding a stand-out candidate amongst an impressive field of entries from both countries. There could be only one though, with Martin Brown, from Townsville Australia being named the winner of the 2016 Apprentice of the Year.
For many cases the clients were mapped based on the addresses (normally home addresses) provided to the business and the research shows: 1. People trade or use your services in the form of a bricks and mortar premise mainly because they live or work nearby. 2. Those that live nearby are captured by their residential address.
Martin was selected from a wide range of industry entries as diverse as the automotive, heavy vehicle, marine, aviation and defence force fields, after exhibiting the qualities of a knowledgeable, well rounded apprentice who displayed great aptitude and technical ability in his field.
3. Those that work nearby are not seen as such as they live elsewhere; few businesses ask you where you work (as well as your home address).
To help assist Martin’s career, courtesy of Snap-on, his reward is a stunning $13,500 prize package that includes a comprehensive Snap-on Tools prize pack, plus a spectacular 54” Classic Roll Cab to store his tool collection.
4. The percentage of transients is very low for most businesses (other than petrol stations).
“A big thank you to Snap-on Tools Australia & New Zealand for the support and opportunities they are giving to apprentices. Snap-on Tools quality and service are second to none. This award will remain a highlight of my career. Thank you for the award and amazing prize,” said Martin. The Snap-on Tools Apprentice Of The Year program also features the ‘Rising Star’ and ‘Contribution to Armed Forces’ award categories. This year’s Rising Star was Manroop Singh from Ocean Shore Australia. and the Contribution to Armed Forces winner, Jacob Marshall from Fielding NZ. Both winners will share from a prize pool worth over $5,000.
5. Around 50 per cent living within the area is indicative of the trade area (based on mapping their residential address). 6. Thirty per cent of customers are regular, and there because they work, attend school or university, or in the area on such a regular basis that they use the service continuously.
Business Franchise Australia and New Zealand 37
FEATURE : r e ta i l fr anch isi ng
c ov er sto ry: lu xaf l e x W I N D OW FASHI O N S
UNRIVALLED SUPPORT FROM A WORLD LEADER
In an industry worth over an estimated $1 billion per annum in Australia alone, Hunter Douglas is a world market leader. Innovative and iconic, this award winning brand is renowned for quality and service. Established in 1919 and manufacturing in Australia since 1954 the Hunter Douglas Group is now established in more than 100 countries, with a worldwide reputation for innovative products that are technically superior and aesthetically unique.
AN AUSTRALIAN SUPERBRAND Hunter Douglas’ flagship brand Luxaflex Window Fashions is Australia’s only window covering Superbrand, with over 60 years of brand history and the highest level of unprompted brand awareness in the category. Consumers voted Luxaflex Window Fashions as one of the best known and trusted brands in Australia, with over 62 per cent consumer brand awareness earning
it the illustrious title of one of Australia’s Superbrands. Offering high quality and durable window coverings for inside and outside the home, the Luxaflex Window Fashions brand range includes traditional blinds like Venetians and Verticals as well as premium ‘patented products including Luxaflex® Duette® Architella® Shades and Luxaflex® Luminette® Privacy Sheers. All Luxaflex products are made to measure to the exact size of the clients window and almost all of the products are still manufactured in Australia. Supply and service varies from the packaged blinds available in hardware stores. The Luxaflex program instead offers consumers a personalised experience offering solutions to their design, heat, light and privacy requirements in the state of the art showrooms and in-home consultations. The window coverings are then manufactured to order and sent to the licensee to provide the installation service.
STATE OF THE ART A group of independent businesses operating under a licence agreement with Hunter Douglas, Luxaflex Window Fashions is not a franchise. There are two options in the Luxaflex
38 Business Franchise Australia and New Zealand
Alliance program. The Luxaflex Gallery program is the premium full-line retailer, with access to the entire range of products and business programs offered by Hunter Douglas while Luxaflex Showcase is a smaller program that still provides retailers with access to a comprehensive range of product and a generally within a smaller retail environment. The licence provides you access to brands, trademarks, unrivalled training and support and a retail programme designed so that consumers can visualise how the Luxaflex products will transform their home. The Luxaflex Alliance programs are based on five key elements: 1. Effective presentation and merchandising – The Showroom; 2. Advertising and marketing; 3. Digital engagement; 4. Training; and 5. Business administration & advertising support tools.
1. The showroom
The Luxaflex Next Generation Gallery and Luxaflex Showcase display systems create a showroom environment that offers a superior consumer experience.
FEATURE : r e ta i l fr anch isi ng
“Supply and service varies from the packaged blinds available in hardware stores to the personalised design, manufacture and installation service provided by installation specialists.” The Luxaflex Gallery program is the premium retailer, with access to the entire range of Designer, Classic & Living products and business programs offered by Hunter Douglas. Luxaflex Showcase is a smaller retailer with access to the Classic & Living product range and selected business programs.
The retail fit-out features exceptional attention to detail in terms of colour schemes, accessories, functionality and stunning blinds on display. Large displays replicate the consumer’s windows, providing a real life experience of the choice of operating systems, style and colours. When consumers visit their local showroom they see things they had not considered and this often leads them to buy higher value products thereby lifting the average sale and conversion rates.
2. Advertising & marketing
Marketing support and communication tools that work on both a national and local level are provided and depending upon the Alliance program chosen include television, digital & print advertising, local area marketing, point of sale, direct mail campaigns and printed catalogues and brochures amongst others. Complete marketing support is offered by the Marketing team who provide a host of marketing resource tools via a secure web portal including both the large scale marketing campaigns run as part of the co-operative advertising programs and the local area marketing; targeted to the individual stores needs and budgets, providing templates and programs to support each store.
3. Digital engagement
Brand websites include detailed product information, photo galleries, brochures, product videos, specifications, blogs and much more! As a Luxaflex Alliance Dealer you benefit from leads received via the website’s Dealer Locator pages alongside the use of Google Adwords, SEO campaigns, Social Media marketing, eBrochures, sponsorships and much more which also drive direct store traffic & calls.
4. Training
Exclusive training programs give you the power to makes sales and the ability to outsell your competition. From classroom settings to interactive online learning, a programme designed for individual learning styles makes you the most knowledgeable window coverings professional in your local market.
A dedicated training team offer support with installation guides, videos and in-depth production information which allows licensees to train their installers on the full range of products available.
5. Administration & advertising support
Dedicated teams are in place to support each Alliance Dealer including ongoing business development and coaching support as well as access to dealer portals that provide a host of resources and tools including HD Live (which allows electronic ordering and order status updates) as well as a Price List app so you can easily price and quote your customers in the home, in the showroom and on the road. Comprehensive business support is provided. Whether it be access to the Technical Support desk, recruitment advice, financial advice Hunter Douglas will provide support. There is even an installation service for selected areas to support licensees with complex installations or during busy periods
BECOMING A LICENSEE There are no ongoing fees to be a part of this group of Independent businesses which operate under these licence agreements with Hunter Douglas, The costs are in the
initial showroom fitout cost. Completed by a contracted shop fitting company, a typical Gallery showroom fitout costs between $100,000 and $120,000. As all products sold are made to measure, there is no start up inventory required, and no provision for obsolete stock or stock loss required. Ongoing costs for the showroom include the regular upgrade costs for maintenance, introduction of new products to be displayed, sampling updates and merchandising and an allowance of $5,000 p.a. in most years is sufficient. Another annual cost incurred is the marketing levy, currently $3,518 p.a. for the top tier Luxaflex Gallery dealers and invoiced monthly as well as a contribution to the advertising program. The cost of advertising varies according to the dealers territory and population. All money collected is used for the promotion of the Luxaflex brand, driving quality leads in a wide range of consumer faced media and the usage of this is reviewed and agreed by the Gallery Dealers on an annual basis. Finally, Luxaflex Gallery & Showcase Dealers attend an annual conference, which incurs travel and accommodation costs. Usually held within Australia but occasionally overseas, the conference is an opportunity to see and learn about new products, new technology and new programmes. It is also an opportunity to network and share ideas with your colleagues from similar businesses all over Australia. Luxaflex Window Fashion license opportunities are available now in selected parts of Australia. To find out more about joining this innovative and world leading brand call Mark Futeran at: 02 9638 8000 mark.futeran@hunterdouglas.com.au www.luxaflex.com.au
Business Franchise Australia and New Zealand 39
FEATURE : r e ta i l fr anch isi ng
How to Prevail in
Retail
Retail is defined as the sale of goods for use and consumption by the purchaser. The retail transaction is therefore at the end of the supply chain. Manufacturers sell large quantities of products to retailers, and retailers sell small quantities of those products to consumers. Your product With this in mind, as a retailer, or potential retailer, your product is the most important component in your business. Your product is vital. It should be top quality and something you believe in. However, it cannot stand on its own. If you don’t have a sound business plan, a strong marketing strategy and a firm grasp on your financial status – the quality of your product becomes second tier. To succeed in retail, you must be a shrewd business person who considers all facets of your business.
An industry on the up According to recent Retail Trade figures by the Australian Bureau of Statistics, Australian retail turnover rose 0.5 per cent in October 2016, which followed a rise in September 2016 and August 2016 of 0.6 per cent. This follows similar rises from last year, and shows that retail is still a growth industry, despite a continuing squeeze on the economy. Specific sectors experiencing growth included food retailing (0.6 per cent), household goods retailing (0.7 per cent), and cafes, restaurants and takeaway food services (0.4 per cent).
Dreaming big Do you have visions of owning your own quaint little dress shop in the local village, or a big name coffee house in the flash shopping centre in the city? Want to get your hands on some of this vast sum of money being handed over by eager consumers? These are tempting ideas, but tread carefully. Over the last few years, the global financial crisis has affected nearly every industry throughout the world. Australians are much more selective now with their money. Consumers are more conservative, more willing to seek out a ‘good deal’ and more willing to wait for the items they want.
40 Business Franchise Australia and New Zealand
FEATURE : r e ta i l fr anch isi ng To succeed in retail, you must be a shrewd business person who considers all facets of the business.
Business Franchise Australia and New Zealand 41
FEATURE : r e ta i l fr anch isi ng “Along with the physical site you eventually choose, hopefully with the help of your franchisor’s site selection strategy, you now also have an online storefront to consider.”
This means retailers are competing in a highly competitive arena, as they fight to win the dollars that are being spent. On top of this, commercial rental rates have skyrocketed, with large shopping conglomerates pushing for leasing rates based not on what the market can bear, but what they can scrape out of their tenants. So, if the cost of doing business has gone up, is it still worth the risk of entering the retail market? Of course it is, as long as you do your due diligence.
Security in franchising This is where the benefits of entering the franchise industry come into play. If you know you want to own a corner bakery, why not purchase a bakery franchise? Although it is romantic to envision the sign over your bakery having your own name on it, this would also be symbolic of the situation to follow: you would be on your own. You would have to develop your own business plan, secure funding, choose a site, negotiate your lease, supervise your fitout, formulate a marketing strategy, source your products, and then actually run the business. Are you tired yet? Imagine if all of this work had been done for
you already. This is the beauty of franchising; a great majority of the work is already sorted. Retail is romantic, in a sense, but it is also risky. As opposed to the service sector, or work-from-home business options, in retail you have bigger costs and bigger risks. Franchising is a way to minimise these risks for you.
A support network Despite the drop in consumer confidence, people are still spending. Perhaps not as quickly or as easily as before – but they are still spending. Being part of a franchise system that has weathered previous economic storms, and knowing that you are an integral part of a larger network, can give you the strength and knowledge not only to survive retail lulls, but to continue to prosper.
Online spending Along with the physical site you eventually choose, hopefully with the help of your franchisor’s site selection strategy, you now also have an online storefront to consider. According to the NAB Online Retail Sales Index, online retail spending in Australia currently stands at $21.1 billion to October 2016, which accounts for around 7 per cent of traditional retail spending (excluding
42 Business Franchise Australia and New Zealand
cafes, restaurants and takeaway food). This figure is up from $18.1 billion this time last year, and is surely poised to keep growing. Social media is a powerful tool, and one that can not be ignored. The benefits of utilising the social media platform include reaching a large audience to develop and instill brand awareness, increasing the effectiveness of marketing plans and creating an interactive experience for your current and potential customers.
You as the driver In the end, the choice will be yours. Whether you decide to go forth into the world of retail, and whether you choose to do this as part of a franchise, it is ultimately up to you to define your success. You must be passionate about your product, committed to offering the best service to your customers, and willing to work hard to make your business successful.
Look out for our next special feature: franchises in your price range
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FEATURE : re ta i l fra nch isi ng
e x per t a dv i c e
Raising the bar for franchisor responsibility—but at what cost? Franchising is a dynamic part of Australia’s service and retail sectors. As Retail Council Acting CEO Steve Wright observes, the franchise brand has taken some knocks recently, but the big question is will it learn from the experience and emerge in better shape for future challenges...
impacted than the owner - franchising veteran and FCA Hall of Fame Russ Withers - and former FCA chairman and 7-Eleven CEO Warren Wilmott who took blame and quickly and quietly left the company.
a costly exercise for 7-Eleven and the sector. Tens of millions have already been expended in back-payments to (mostly former) franchisee employees and the process is not finished yet.
Under a new management, 7-Eleven is going above and beyond to set matters right and do whatever it can to buttress the business from any future fraud and law breaking within its franchise network.
Then there is the cost of designing and applying new systems such as biometric (facial recognition) shift scanning, which the company hopes will help deliver a comprehensive fix. Workplace Ombudsman Natalie James has described the changes as the “most robust” of any franchise system in the country.
What 7-Eleven comes up with to systematically address the issue may well be the light under the bushel for the franchise sector.
People have been taken aback by what they have seen on TV and read in the news about what has happened at – and to – 7-Eleven.
Ultimately it is highly likely the deep process re-engineering 7-Eleven is undertaking will set a new benchmark for how franchise brands protect themselves from the kind of threat one of their best has experienced in the past year.
Possibly none have been more heavily
Success is important because this has been
44 Business Franchise Australia and New Zealand
The good news for the sector is that this may be a case where the whole can benefit from adversity suffered by one or a few. In this case what we may see emerge is a new standard in franchisor responsibility and risk management – one which will serve to give greater certainty of legal compliance and improved systems for cost management at
FEATURE : re ta i l fra nch isi ng both franchisor and franchisee level. A new model, perhaps, for others to examine and adopt, in part, or whole, in their own way as best fits the system in question. Ultimately, doing so can help deliver greater confidence of forecasting profitability and identifying any financial vulnerability at the earliest time – rather than when it is too late. This is very important for the ongoing success of the franchise model.
“To flourish, franchising like every business brand, needs its constituent parts to be operating smoothly and without fear of imminent break-down.” Steve Wright | Acting CEO | Retail Council
for the franchise brand and its future. Hopefully the 7-Eleven experience can help others avoid the pitfalls.
What the ABC-Fairfax exposé on 7-Eleven did was paint in stark relief the importance of clear visibility of franchisee compliance and financial performance.
financial health and/or employee pay compliance, then they are in constant danger of brand damage – quite likely caused through no fault of their own and executed in ways quite difficult to police and counter.
Without such visibility, how can brand owners truly be sure about the financial health of their franchisees; about their compliance with business absolutes such as employment law.
“…How the hell do I deal with this sort of thing?” may well have been muttered under the breath of more than a few brand owners as they read the newspaper stories about 7-Eleven.
To flourish, franchising like every business brand, needs its constituent parts to be operating smoothly and without fear of imminent break-down. This is important not just for the here-and-now success of franchise brands, but for their ability to find new franchise partners for future expansion.
If they cannot be sure about franchisee
But that reaction is not really good enough
It is not good for franchising to see so
Business Franchise Australia and New Zealand 45
FEATURE : re ta i l fra nch isi ng
e x per t a dv i c e
“What 7-Eleven comes up with to systematically address the issue may well be the light under the bushel for the franchise sector.”
critically attacked one of its showcase businesses: 7-Eleven is an accomplished, industry-awarded and financially successful business, for franchisor and franchisees, proven over decades and through major expansion of the brand’s retailing activities and its now 650-strong network. 7-Eleven’s owner, Russell Withers, sits comfortably in the top echelon of the Franchising Hall of Fame maintained by the Franchise Council of Australia. His embarrassment at what had happened inside the brand he had nurtured from its inception and over 30 years, was palpable. There was no questioning his commitment to setting the matter straight when Withers appeared before a Parliamentary committee (convened for a different purpose but which gleefully grabbed the opportunity to interrogate him). To his credit (and to his significant financial loss), Withers did two big things; 1) He took responsibility and stood aside as chairman so that the matter could be addressed without any suggestion of him trying to sweep it under the rug; and 2) He gave an open-cheque personal assurance that underpaid franchisee employees would be properly compensated no matter the cost, even though he must have known such a commitment would be exploited by unscrupulous opportunists, some of whom may still be within his business. That was the start of a long campaign of brand repair for 7-Eleven; one which has had its ups and downs, but which now can clearly see the light at the end of the tunnel. This situation has already cost 7-Eleven almost $60 million. When it is all done and dusted the cost might run north of $100 million. That is enough to send shivers down the spines of any franchise owners in service and fast food businesses which run long hours
(sometimes 24 hours) nigh on every day of the year. The Age did not have to think very hard to come up with a long list of companies it decided should be in the spotlight. It pointed its finger at a number of highly successful small-store, home delivery food brands, but there was another it singled out for extra attention: Caltex. As an operator of petrol stations and longhours convenience stores, it had similarities to 7-Eleven. Again, to its credit, Caltex acknowledged the problem up front. It too is setting about fixing things. But the Australian Financial Review (AFR) noted one very big difference in the reaction, though it did not make any comparison with 7-Eleven. Caltex, the AFR said, was now considering whether it would continue with the franchising model. It cited risk of corporate reputational damage as the key influencing factor, adding that the franchise brand itself was under attack. In other words, Caltex was wondering aloud whether the prospect of the franchisor being held responsible for franchisee misdeeds it regarded as outside its direct control was actually worth the reputational risk of continuing with the franchise model. Perhaps it may be better to withdraw to the relative safety of a direct employee relationship with store managers. In submission to the parliamentary inquiry, one of the sector-wide issues raised by 7-Eleven was its belief that the most recent changes to the Franchising Code of Conduct had pushed more onus of responsibility on franchisors and made it harder for franchisors to effectively discipline recalcitrant franchisees.
46 Business Franchise Australia and New Zealand
Reading between the lines is a perception that franchisees are feeling stronger in their insistence that there is no cause for termination of a franchise contract so long as any breaches are rectified. And that acts committed by them can be acceptably described as being ‘forced upon them’ by the brand owners, as if this somehow frees them from any culpability. Caltex says it will not tolerate wage fraud or underpayment of staff by franchisees. It will cancel the contracts of perpetrators. It is adopting a harder line than 7-Eleven has taken in the past year. It will be interesting to look back in a year’s time and track the progress of each case. It seems likely that the individual brand damage and the sector damage will continue for some time yet. The big question is will the franchise brand emerge with a more resilient future, or one where new franchisees are harder to find and new franchisors become fewer. Steve Wright is known for his depth of experience in corporate and investor relations, industry representation and financial market activity. A former CEO and company director, he has represented small and large international companies including five years as Executive Director of the Franchise Council of Australia. The Retail Council is the voice of Australia’s top retailers driven to achieve sustainable growth of retail in Australia for the benefit of the consumer, the industry and the economy. Formed in 2006, the Retail Council represents members committed to advancing retail in Australia, fostering economic growth and supporting job creation. Retail Council members are part of an industry that is a top ten contributor to Australia’s Gross Domestic Product (GDP) contributing more than $134 billion of total economic activity through more than 127,000 retail operators nationwide and providing jobs to more than 1.25 million Australians. 61 2 8823 3515 admin@retailcouncil.com.au www.retailcouncil.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 CGB’s website also provides an additional advertising and information format and complements our publications.
www.businessfranchiseaustralia.com.au Business Franchise Australia and New Zealand 47
FEATURE : r e ta i l fr anch isi ng
e x per t a dv i c e
Preparing your franchise for the pressure of January Most franchises are similar to other retail outlets insofar as they can expect a spike in business in the lead up to Christmas, followed by big drop off in January, when most customers are still on holiday and are therefore not looking to engage their services or buy their goods. This creates a degree of pressure for franchises to generate significant additional income during the end-of-year period, to protect themselves against insolvency during the quiet period in the New Year. Every January, there is a large increase in the number of insolvencies of franchisees who have failed to fully capitalise on that busy Christmas period; to give them enough of a buffer during the slow period that immediately follows it. Franchisees who forget to allow for late and non-payment by customers and struggling to make sales after Christmas when consumer demand typically falls, can also find themselves in a pickle. Christmas can be a difficult time for franchises. It can be a profitable period, but there are so many other demands on the customer wallet during that time that it is not a given that it will be a bumper period. Experience tells us that when franchisees need an exceptional seasonal sales period and then hit financial difficulty, we often see failures in the first quarter. It is not unusual
“There are so many other demands on the customer wallet during that time that it is not a given that it will be a bumper period.” Mark Hoppe | ANZ Managing Director | Atradius
in this sector to be loss-making during Q1 and, with the first payment of quarterly rent due in January, it can be difficult to survive after a poor Christmas period. As franchisees approach the busiest time of the year, they should take a moment to think about what trading is going to be like in the lead up to Christmas, before rushing into increasing stock and staffing levels. This is an ideal time to review labour budgets and sales forecasts. For example, with the continuing decline in consumer confidence, will the same levels of stock be required as in previous years? Having too little stock will result in loss of sales, but too much stock will necessitate heavier discounting post-Christmas. The franchise industry is under enough pressure already. With a proportion of income generated by a franchisee to be paid to the parent company for marketing, commission and inventory, they should get ahead of the curve so they can avoid going out of business due to bad debt. Recent franchise collapses, such as Pie Face and Eagle Boys, have highlighted how quickly franchises can become insolvent,
48 Business Franchise Australia and New Zealand
and Christmas is a vulnerable time for this to happen. Experts have already warned that these recent high-profile collapses may be just the start of a broader industry slowdown. The Australian Securities and Investment Commission’s September 2015 quarterly statistics revealed that insolvencies had increased by almost 10 per cent compared to the previous quarter. When consumers stop spending money, it’s a sign the economy is uncertain. Franchises may be vulnerable because it is a costintensive business. They must carry stock, maintain premises, and pay labour and marketing costs, amongst other overheads, so protecting cash flow is essential. If, as expected, consumers spend less this Christmas, franchisees may feel the effects. It’s important that franchises seek ways to reduce their exposure to risk and decrease uncollectible account expenses in order to trade confidently. Buyers who cannot pay at the agreed time, or are unable to pay at all, can damage the organisation’s cash flow. This can cripple the business and damage relationships with other trading partners. Credit insurance lets suppliers trade
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“Buyers who cannot pay at the agreed time, or are unable to pay at all, can damage the organisation’s cash flow. This can cripple the business and damage relationships with other trading partners.” confidently, even when consumer demand falls and customers might struggle to meet payments, as it reduces suppliers’ exposure to risk and can significantly decrease uncollectible account expenses, regardless of whether it’s the customer’s fault or not. It’s possible that tough times are ahead for franchises if the wider retail sector is anything to go by. These organisations should get ahead of the curve now so they can avoid going out of business due to bad debt. Securing their cash flow means franchises can innovate to stay ahead of the competition and remain viable even as the market tightens. Atradius provides trade credit insurance, surety and collections services worldwide through a strategic presence in 50 countries. With access to credit information on 200 million companies worldwide, its credit insurance, bonding and collections products help protect companies throughout the world from payment risks associated with selling products and services on trade credit. Atradius forms part of Grupo Catalana Occidente (GCO.MC), one of the leading insurers in Spain and worldwide in credit insurance. For more information contact: 02 9201 5222 info.au@atradius.com www.atradius.com.au
Business Franchise Australia and New Zealand 49
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fo c u s : CL A R K RU B B ER
buildPOOLyour & SPA future with BUILD YOUR FUTURE aWITH retail A RETAILicon ICON
As one of Australia’s iconic retail brands, with a proud history over the past 70 years, we now have 65 stores nationally. Our award winning franchise model commenced in 1995 and offers a vibrant product range providing you a great platform to start your own successful business in the pool and spa industry.
With a proud retail
Our industry knowledge will help you over the past build a strong history business, becoming the 70 local pool specialist your territory andis years,inClark Rubber helping you work in a lifestyle environment. a recognised Australian Our franchisees benefit from:
Retailer. Having an award winning national franchise • Unparalleled national and local support • Proven marketing strategies networkand ofbusiness 65 stores • Group buying power Australia, and throughout Our business development and support teams • No franchise fees franchise will assist you in building your successful business. tworenewal individual We have a number of new franchise models • Turnkey development and set up models plus a mobile pool available and are looking for motivated and • Retail brand celebrating 70 years service territory franchise, business orientated people to join our network. • Multi Award winning franchise system Clark Pool & Spa Shops start from $147,500 plus there aretraining manyand great • Unsurpassed initial working capital. ongoing support opportunities and reasons to join this Australian Retail If you would like to hear more about franchise opportunities in your area, please Icon.contact Dirk Heinert for a confidential discussion on (03) 8727 9999 office or mobile 0400 922 493 or dirk.heinert@clarkrubber.com.au
50 Business Franchise Australia and New Zealand
clarkrubber.com.au
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“We’re with you every step of the way, whether you are taking over an existing store or starting up a new location or territory.” Started in 1946 by two men, Charlesworth and Clark, the initial partnership was known as Clark Matting and Rubber. The business grew quickly and, in 1951 the business was listed on the Australian Stock Exchange. In 1961 the name was changed to Clark Rubber stores. In 1982, Clark Rubber was purchased by the Adsteam Group, which continued to operate the business until 1994. At this point the Clark Rubber name and logo were sold to Vita Pacific, a wholly owned subsidiary of Pacific Dunlop, and the network of retail stores were closed. It was at this time that Chris Malcolm, a veteran of Australian retailing, stepped in. After lengthy negotiations, Chris licensed the Clark Rubber brand from Vita Pacific. Deciding that a franchise model was the best way to grow an already established and recognised brand, the first franchised Clark Rubber store opened in Nunawading in 1995. By 1998 the 50th store had opened and Clark Rubber was once again one of the best recognised brands in Australian retail. In 2000, Chris Malcolm bought the Clark Rubber brand from Pacific Dunlop. The store network continued to grow and, in 2003, Clark Rubber was recognised as the Franchise Council of Australia’s Franchisor of the Year in the ‘Entry Capital over $200,000’ category. In the same year, Chris Malcolm was inducted into the Franchise Council of Australia’s ‘Hall of Fame’. Three years later, Clark Rubber was awarded the Franchise Council of Australia’s highest honour, Franchisor of the year.
Great Products – Strong Marketing Clark Rubber franchisees enjoy the combined stock buying power that only comes from being part of a large national network. Our dedicated merchandise team works closely with suppliers to build product
ranges across our key categories of pools, foam and rubber. In addition, we source products, develop promotional offers and negotiate terms and pricing. Making sure that products meets the needs of our customers and the market, no matter which model you choose, you will benefit from the knowledge and expertise relevant to your business. Marketing and advertising are key to the ongoing success of any retail business. At Clark Rubber, each year we invest in brand development and national retail advertising campaigns, across all relevant and current channels, to ensure that we are continuing to drive customers and business to you. We also work closely with all Clark Rubber franchisees to develop and execute effective local area marketing at a local store level.
An ongoing commitment Clark Rubber franchisees benefit from a proven franchise system. Not only providing our franchisees with the knowledge and skills they need, but also ensuring that they have tangible business tools and support needed to help them run their business. We’re with you every step of the way, whether you are taking over an existing store, starting up a new location or territory. We provide support in the areas of site selection, lease negotiation, store development and in-store merchandising. Clark Rubber franchisees and their staff benefit from a comprehensive initial and ongoing training program. Covering product knowledge, customer service, retail
operational and compliance topics, training is delivered through a combination of individual, group and online programs. You will also receive the IT infrastructure required to manage every aspect of your business including stock control, POS, financial reporting and benchmarking. Our IT helpdesk is on hand to assist you with any system related issues, keeping your business operating ongoing.
National Strength, Local Support In addition to the national support team, all Clark Rubber franchisees benefit from the ongoing relationship with a dedicated Regional Sales Manager. Their role is to spend time with you, in your store, working with you to achieve your goals and provide regular feedback and support on all aspects of store performance.
Clark Rubber Franchise Models There are three individual models that make up Clark Rubber, designed to provide flexibility to potential franchisees and markets, whilst capitalising on the strong brand reputation gained over the past 70 years.
Clark Rubber Stores Including a unique product mix of pools, foam and rubber, these stores provide strong customer appeal and income potential across all seasons. Products include modular pools, pool accessories, equipment, rubber matting, extrusions and hoses as well as being Australia’s largest retail supplier of cut foam
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fo c u s : CL A R K RU B B ER
including an in store foam cutting service, supported by a great range of Sleepmaker innerspring mattresses and foam mattresses. Clark Rubber stores also include their own mobile pool van, providing you with the opportunity to build a strong local market.
Clark Rubber Pool & Spa shops Leveraging the Clark Rubber brand and reputation in pools, the Clark Rubber Pools & Spa franchise model has been developed to allow for a complete focus on pools and spas sales and service. All our Pool & Spa franchises operate a pool service van, allowing you to service your customers through both the store, and at their home.g. Being a part of the national franchise network you will also benefit from the great advantages of group buying, marketing and support.
Clark Rubber Pool Care Service Territories Understanding the needs of the pool and spa industry, included as part of the Clark Rubber franchise group is the opportunity to own your own mobile pool service territory. With the ability to market and service your own area, the flexibility to work from home, and the hours that suit you and your
“Marketing and advertising are key to the ongoing success of any retail business. At Clark Rubber, each year we invest in brand development and national retail advertising campaigns.�
customers, this low-entry business model is a great way to run your own business yet with the support of a national brand and franchise network.
product mix to meet customer demand and changing trends within the market. Our online shop is designed to drive business direct to your store.
At Clark Rubber, our commitment to customer service and providing our customers with solutions helps us to differentiate us in the market and with our customers. Coupled together with our extensive product range, you have the opportunity to build a strong business and retail destination within your local market.
The uniqueness of Clark Rubber stores, with a product range across Pools, foam and rubber, provides a strong market position supported by a well-recognised and reputable brand. Customer service is a key focus – and is a differentiator of Clark Rubber to many of its competitors.
All of these franchise models benefit from being a part of a national franchise group. With the initial training program, ongoing support and business development across all areas of the business as outlined above, the national support team is available to assist you in achieving the best results and grow a profitable and successful Clark Rubber business. The national marketing program is developed to help drive traffic and sales for your stores and is to ensure market presence throughout the year, and for all seasons. Products are sourced to ensure the best
52 Business Franchise Australia and New Zealand
With a strong vision for growth now and in the future, including three franchise models in Clark Rubber store, Clark Pool & Spa shop and Clark Pool Care franchise territory, you can choose the opportunity that suits where you want to go. For more information and to enquire about current opportunities, contact Dirk Heinert on: 03 8727 9999 dirk.heinert@clarkrubber.com.au www.clarkrubber.com.au
BUILD YOUR FUTURE WITH A RETAIL ICON
As one of Australia’s iconic retail brands, with a proud history over the past 70 years, we now have 65 stores nationally. Our award winning franchise model commenced in 1995 and offers a vibrant product range providing you a great platform to start your own successful business in the pool and spa industry. Our business development and support teams will assist you in building your successful business. We have a number of new franchise models available and are looking for motivated and business orientated people to join our network. Clark Rubber Retail Stores start from $420,000 plus working capital.
Our industry knowledge will help you build a strong business, becoming a retail destination store for all things pools, foam and rubber. Our franchisees benefit from: • • • • • • • •
Unparalleled national and local support Proven marketing and business strategies Group buying power No franchise renewal fees Turnkey development and set up Retail brand celebrating 70 years Multi Award winning franchise system Unsurpassed initial training and ongoing support
If you would like to hear more about franchise opportunities in your area, please contact Dirk Heinert for a confidential discussion on (03) 8727 9999 office or mobile 0400 922 493 or dirk.heinert@clarkrubber.com.au
clarkrubber.com.au Business Franchise Australia and New Zealand 53
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e x per t a dv i c e
The three P’s of franchising So you’ve decided you want to be a franchisee. You’re not alone. Franchising has been a part of Australia’s business ecosystem since the early 1970s and has literally transformed the local retailing landscape. The reasons for taking on a retail franchise are as vast and varied as the franchise systems in Australia to choose from. For most however, choosing a retail franchise is about owning and operating a business within a supportive environment where you benefit from all of the experience and advice a franchise system has to offer, as well as a recognised brand name.
Beyond the brand, when you start the process of comparing one retail franchise to another, there will appear to be more similarities than differences among the franchise systems. But that’s only when you look at each franchise on paper. The reality can be very different, so in addition to conducting due diligence around the dollars and cents, when it comes to making the decision about which franchise to invest in, equally consider the 3 key P’s of franchising – People, People, People.
What is the franchise strategy and who are the key people behind it?
Without getting these three P’s right at the outset; the people behind the franchise, the key relationship you have with the brand and the support you will receive as a franchisee, you won’t be in a position to support what are arguably the most important people in franchising, your colleagues and your customers.
Getting to know the franchise leadership team will also provide a window into the culture of the organisation. With culture being at the heart of every business, franchise or not, if there’s no connection from the beginning, there is unlikely to be that connection when you’ve committed to the business no matter how hard you work to make your franchise a success.
Here are three key questions you need to consider before signing on the dotted line:
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Understanding the future direction of the franchise you’re considering is no doubt top of mind, but have you also considered the people behind the strategy; those developing and directing the strategy? It’s important to have confidence in both the business direction as well as the skills, abilities and style of the leadership team at the helm.
The challenges associated with buying into
Richard Wynn | Co-founder and Managing Partner FutureYou Executive Recruitment
but that they also embody the company culture. In fact, the field manager’s focus and behaviour is a good indicator of the culture that exists in the business and how the franchisor regards, and wants to work with the franchisee. If there is no connection, or mutual respect between you both, then you may want to reconsider your franchise options. More than there being an immediate connection, what you also want to understand is the type of relationship you will have with this person. It’s all well and good to have a comfortable ‘coffee shop’ relationship with the franchisor where you talk about the issues you’re facing and how to resolve them, but a franchising relationship needs to be much stronger than that.
a company but not the company culture only compound when it comes time to build a successful team around you to build the business and create a positive experience for customers.
Who will be my key relationship when I’m in the business and operating my franchise? In every franchise system, there is one key relationship you as the franchisee will have with that brand that you need to be aware of. Often called a field manager or area manager, this person will have more to do with the success of your franchise than any other person across the franchise system. Broadly speaking, there are four key roles that this person fulfils - to provide support, coaching, direction and leadership. Franchisors go to great lengths to ensure the people in these critical roles are not only exceptional business coaches and leaders,
support at all and the franchisee is left to go it alone as you would in a startup or if you were to buy an existing operation that is not franchised. So when you’re making a decision about which franchise to buy into, understand exactly what that ‘support’ is going to look like across key functional areas such as operations, merchandising, marketing, IT and finance in addition to the support, coaching, direction and leadership you will have through your field manager. Whether you are a new or established franchisee, a franchise group’s systems and support mechanisms along with the key support people in your area should be able to recognise your needs and assist you to build a profitable business from the ground up. Always keep in mind that the level of support you receive through a franchise system does have strings attached - you are required to run your business within the constraints of the franchise agreement, complying with rules and processes, and if you do breach the agreement, you may risk losing your franchise altogether.
What you need to be looking for in a franchise partnership is what many term a ‘marriage’, where the franchisee will do more than help you solve problems, they will work alongside you to identify opportunities to boost sales or profitability and implement practices that will take your business to the next level. What’s important to recognise is that in every commercial marriage, there needs to be a senior partner, and in franchising, that senior partner is the franchisor.
Retail franchisees are however quick to point out that while there are support mechanisms in place, you can’t be a part-time franchisee and be successful. Sure, you may get the benefits of being part of a national brand and network, but at the end of the day, you’re still running your own business and to be successful in retail, that means you need to commit 7-days a week. Many say the benefits of owning and operating your own franchise business outweigh any sacrifices that need to be made but this is a very personal decision.
Aside from getting to know your key day to day contact, a good franchisor will ensure you meet with all the key people across the business, from senior management through to fellow franchisees. There is always going to be the good and not so good in any business and existing franchisees will be best placed to share this and enable you to make a balanced and informed decision about investing in one franchise over another.
So before making the move from employee to franchisee, take the time to investigate the 3 Ps of franchising alongside the dollars and cents. In the long term, taking the time to do this will pay dividends.
What support does the franchisor provide you and what does that support actually look like? As a franchisee, you’re not just buying into a brand, you’re buying into a proven franchise system. The challenge is, on the surface the support a franchisee receives through each franchise system looks remarkably similar. When in reality, some do not provide a lot of
Richard Wynn is co-founder and managing partner of FutureYou Executive Recruitment. FutureYou was formed in 2016 on the belief that there is a better way to connect outstanding talent and Australian based businesses. Richard has more than 23 years’ experience in the retail industry as a professional and in the recruitment of senior and executive level professionals in both the UK and Australia. 0448 416 172 richardwynn@future-you.com.au linkedin.com/in/richardcwynn http://future-you.com.au/
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“What’s important to recognise is that in every commercial marriage, there needs to be a senior partner, and in franchising, that senior partner is the franchisor.”
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e x per t a dv i c e
Leasing What you need to know as a Franchisee You’re thinking of becoming a franchisee and you need a location to run your business. That means that you most likely need a lease – but what do you need to think about when committing to a lease for a new site, what are the things that you need to be aware of, and how do you get help? Here’s a list of a commonly asked questions when entering a new lease.
Who holds the lease? Store or site leases can be set up in many ways – the franchisee can take out a lease in their own name or in some cases the franchisor holds the head lease. There’s no right or wrong way about it. If the franchisor holds the head lease you need to check what your rights are - what will your responsibilities be under the lease?
How long should the lease be? A typical retail lease comprises a term in the range of five (5) to seven (7) years. Prior to the lease commencement date you will be given a handover date. This refers to the period given to fitout the store in preparation for opening, this period is generally a month and is rent free. Thinking further into the future; leases can contain options to renew at the expiry of the initial term. These options will generally be the same amount of years as the initial term. In conjunction, there maybe multiple options meaning you can then further continue to renew well into the future. As franchisee it is paramount that you understand the concept behind these options as it will provide a secure future to your business.
What happens at the end of the current lease term? Your lease may contain options to renew. If it is your intention to continue with the site then the renewal is simple. Your rent will be decided between you and the landlord. If the terms cannot be agreed on, then a third party determining valuer will provide the binding commencement rent. In major shopping centres however, you will not be given any options to renew at the end of
56 Business Franchise Australia and New Zealand
your initial term. However, in most cases the centre will begin negotiations with you to settle a new lease. What happens if negotiations aren’t settled before your expiry? That’s a common occurrence and a holding over period will commence. In this period you will pay the final year’s rent on a month to month basis whilst negotiations are finalised.
What if you do not want to renew the lease at the end of the term? You are under no obligation to renew the lease at the expiry of the initial term unless
FEATURE : r e ta i l fr anch isi ng specifically mentioned in the lease. Rent is a substantial overhead cost that can determine the longevity and success of your business. As a franchisee, you must consider what is in the best interests of your store and you are encouraged to analyse and review your current and future arrangements before committing to a renewal or relocation.
Leasing in a shopping centre versus leasing in a strip location Shopping centre leases are very different to that of standalone strip retail. Shopping centres as mentioned before do not offer
“Rent is a substantial overhead cost that can determine the longevity and success of your business. As a franchisee, you must consider what is in the best interests of your store and you are encouraged to analyse and review your current and future arrangements� options whilst strip retail do generally offer multiple options. Moreover, shopping centres will charge what’s known as a promotions levy which is generally a percentage, around 5 per cent of rent, in conjunction with outgoings. Outgoings are also derived differently - shopping centres will derive your outgoings based on a percentage of area that you occupy and charge you the relative
outgoings based on the whole centre. For example; if your store occupies 100 sq. m. whilst the shopping centre has a lettable area of 5,000 sq. m. you are responsible for paying 2 per cent of the total outgoings of the centre. Whilst strip retail is much more simple as outgoings are clearly charged to the single standalone chamber.
Business Franchise Australia and New Zealand 57
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“You are under no obligation to renew the lease at the expiry of the initial term unless specifically mentioned in the lease.”
What is a Bank Guarantee? When entering a lease the lessee is required to provide a bank guarantee to the lessor. This is simply a bond provided by the bank on the behalf of the lessee, to assure the lessor that the lessee is financially viable and can afford the rent.
What insurance might you require? Insurance is mandatory when investing in a franchise or operating in any centre. In the lease such insurance requirements will be clearly stated. This figure should cover all content within the store as well as any unforeseeable events which could be devastating to your business.
Permitted Use – What does this mean? In every lease agreement, there will be a permitted use clause. This clause is simply as the name suggests. This outlines the permitted uses within the site. However, this isn’t something to stress over as each company will have a standard permitted use which is inserted in every lease.
Market Reviews – What are they? There are two types of reviews contained in a lease; annual reviews and market reviews. Annual refer to the fixed increases at the end of each year of the term. For example, the annual reviews can be fixed at 4 per cent
meaning the rent will increase by 4 per cent at the end of each year of the term. Market review refers to the review that occurs at the end of the full term, which results in the rent being taken to ‘market’.
What if you don’t pay the rent? As a franchisee you are responsible for paying the rent in a timely fashion and if you fall behind this is called going into arrears. This situation is not ideal and any company would advise against it. It is in your best interests as a franchisee to pay the rent by the due date to create a sense of credibility within the respective management or landlord. A lack of punctuality will be counter-intuitive to the lease renewal and can result in landlords acting unfavourably towards your particular site. However, in some cases it is your right to refuse rent if there is a legal issue or breach of contract.
Selling your business? What do you need to keep in mind in regards to your lease? When selling your business you need to keep in mind the lease that is connected with the store. If the lease is assigned to the company then you as a franchisee can sell the business with ease as the lease is technically not assigned to you. However, if the lease is assigned in your name you are required to make a changeover of lease or formally exit the lease. The landlord in most cases will happily change over the lease as this will have no effect on the income flow.
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Current Legislation In Australia, there is no legislation at a federal level to regulate the relationship between the lessor and lessee in relation to commercial and retail premises. Retail leasing legislation is the responsibility of individual State and Territory governments and differs in each State and Territory. The current relevant legislation for each State and Territory is as follows: • Victoria - Retail Leases Act 2003 • New South Wales - Retail Leases Act 1994 • Australian Capital Territory - Leases (Commercial and Retail) Act 2001 • Queensland - Retail Shop Leases Act 1994 • South Australia - Retail and Commercial Leases Act 1995 • Western Australia - Commercial Tenancy (Retail Shops) Agreements Act 1985 • Tasmania - Fair Trading (Code of Practice for Retail Tenancies) Regulations 1998 • Northern Territory - Business Tenancies (Fair Dealings) Act 2003 When looking to purchase a franchise business or negotiate your lease, it’s always recommended to source a reputable lawyer that understands both franchising and leasing. Have your lawyer review all documents and arrangements and clearly explain to you what your rights are. Peter Fiasco and Alex Ellis-Czerkaski, Hairhouse Warehousewww. hairhousefranchising.com.au
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What do many of our most successful global retail networks have in common?
“A good idea poorly delivered, versus a good idea cleverly delivered, will beat a good innovation poorly delivered every time.”
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Is it that they commenced with a brilliant piece of innovation? A completely unique epiphany? A moment of sheer genius that no other human being had thought of prior or was it simply more about cleverness, underpinning the models ability to mutate and replicate? ‘Clever’ is defined as quick to understand, learn, and devise or apply ideas. Whilst innovation can be seen as that ‘light bulb moment’ - the application of information, imagination and initiative. It is arguable whether these businesses we mention, had ‘light bulb moment’s per se, but they are certainly clever - and not just in the beginning, but have and continue to refresh and rejuvenate ideas over their retail lifetime.
Brian Walker | Founder and CEO | Retail Doctor Group
Why Clever beats innovation building a replicable retail strategy These businesses have been smart and tactical, assessing the market, whilst bringing in other clever people as they’ve grown resulting in a resilient and relentless business. A good idea poorly delivered, versus a good idea cleverly delivered, will beat a good innovation poorly delivered every time. When we look at the history and deployment of these great retail brands we do see some very simple and similar characteristics to their success; • An original owner’s or influencer’s vision with regard for, but not paralysed by, risk. This was never a strategy about build a shop and see how it goes, every single decision is taken against channel outcomes. Ultimately built to sell, with no great reliance on any one individual or individuals per se, building the clock as distinct from telling the time. • Unwavering resilience in bringing the offer to market. They don’t build and invest on a fad as such rather they see the trend and therefore opportunity. • Products that arrive have to fit within the DNA and earn their place, and in doing so invariably replace rather than add to another product.
• Simplicity rather than complexity – this is key to building a network as distinct from a shop. • Targeted offer – they know their target market with alacrity, and they don’t stray even when times get tough, they don’t try to be all things to all people. As much about the customer that they exclude as the one they do include. • They are consistently strong believers in brand attributes, and build brands that are clever, powerful and meaningful (relevant). • Product range, its width and depth, using colour blocking, planograms. Each store expresses a well-orchestrated and planned campaign that replicates across the network. • Great systems and processes, systemising the business model in every single instance from supply channel, product characteristics to shop fitting, employment processes to compliance, rewards. • Attention to fastidious detail, the product placement is never by accident. • Shops don’t open as such, rather that the network channel expands and replicates.
• The real value in these businesses is their ability to segment into other offerings using their skill sets, and knowledge Cotton On segmenting into Typo. • Timing – simply the moons where aligned for their arrival (consider the role of social media as an accelerant to their growth as an example of timing) Whilst innovation will always remain a buzz word that many retailers strive for, never underestimate the power of a clever and replicable retail strategy, that no matter what your size or category, will result in a sustainable ‘fit’ business model. Brian Walker is Founder and CEO of Retail Doctor Group. Brian specialises in the implementation of insights driven strategy to build Business Fitness™. Contact Retail Doctor Group and quote ‘Business Franchise Australia’ to receive a complementary discussion on building your business’s retail fitness in 2017. 02 9460 2882 businessfitness@retaildoctor.com.au www.retaildoctor.com.au
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FEATURE : r e ta i l fr anch isi ng
“‘Clever’ is defined as quick to understand, learn, and devise or apply ideas. Whilst innovation can be seen as that ‘light bulb moment’ - the application of information, imagination and initiative.”
FEATURE : r e ta i l fr anch isi ng
e x per t a dv i c e
WATCH OUT FOR PROBLEMATIC CONTRACT TERMS IN FRANCHISING AND RETAIL LEASING If you’re planning to sign up to a franchise system, remember that there are some major laws you need to be aware of, and which the ACCC oversees. The mandatory Franchising Code of Conduct is one, but are you also aware of the new unfair contract terms law?
Under the new law, the courts can strike out unfair terms in some franchising agreements, retail leases and other standard form small business contracts entered into, renewed or varied on or after 12 November 2016. The law applies to standard form contracts between businesses where one of the firms employs less than 20 people and the contract is worth up to $300,000 in a single year (or $1 million if the contract runs for more than a year). This means some franchising agreements will be covered. A term may be unfair under the Australian Consumer Law if it causes significant imbalance, is not necessary to protect the legitimate interests of the party advantaged by the term, and would cause harm to the
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other party if it were relied on. The unfair term will be void and treated as if it never existed, however the rest of the contract will remain. In the lead up to the new law coming into play, the ACCC reviewed more than 45 standard form contracts including franchising agreements and retail leases.
Franchising We found several potentially unfair terms in franchising agreements. This includes terms that allow the franchisor to unilaterally vary the operations manual; clauses that require the franchisee to pay unreasonable liquidated damages; conditions that impose unnecessary restraint of trade clauses on
FEATURE : r e ta i l fr anch isi ng former franchisees; and terms that grant the franchisor an unreasonable power to terminate a franchise agreement. If you’re about to sign up to a franchise, you should consider whether your contract contains these types of terms. Ask your franchisor and your own lawyer about them. Key questions to ask include: why is the term necessary? Does it protect a legitimate business need? And, are there other clauses in the contract which ‘balance’ the potential unfairness of the term?
Retail leasing The ACCC also reviewed standard form contracts used in retail leasing and we were pleased to report that the Shopping Centre Council of Australia and its landlord members were very proactive and fully cooperated throughout the review. In the retail sector, we found a number of potentially problematic terms. This includes clauses providing the landlord with the power to unilaterally vary shopping centre rules. In particular, we were concerned about conditions allowing the landlord to terminate a retail lease for any breach of the rules, regardless of how trivial, without giving the tenant a chance to fix the situation. We also came across clauses that didn’t place any limits on recoverable costs. We also found contract terms that gave landlords
“The ACCC is moving from an education phase to an enforcement approach, where we will be targeting unfair contract terms.” Dr Michael Schaper | Deputy Chair Australian Competition and Consumer Commission
the right to take possession of the tenant’s property at the end of the lease without prior notice. As with other industries, some clauses provided an indemnity (shifting of liability from the landlord to the tenant) that appeared unreasonably broad.
What’s next? The ACCC is moving from an education phase to an enforcement approach, where we will be targeting unfair contract terms. We will take action in cases of widespread detriment or where the business involved is acting in blatant disregard of the law. However, there are a number of ways franchisees and small businesses can resolve concerns about a potentially unfair term. Ultimately, only a court or tribunal can decide that a term is unfair, but this can sometimes be a long and expensive process, so consider trying other approaches first. The obvious first step involves talking to
your franchisor (or landlord) to see if they are willing to amend or remove the terms. If this process is unsuccessful, you can contact the ACCC or your local state or territory fair trading agency. Disputes over the fairness of a particular term may also be resolved through alternative dispute resolution schemes, such as the mediation services offered through the Australian Small Business & Family Enterprise Ombudsman, state small business commissioners (in NSW, Vic, WA and SA), or the Office of the Franchising Mediation Adviser. For more information visit www.accc.gov.au/uct Download the ACCC’s report at http://www.accc.gov.au/publications/ unfair-terms-in-small-business-contracts Dr Michael Schaper is Deputy Chair of the Australian Competition and Consumer Commission.
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s n a ps h ot: T h e ob r o m a Lo u n g es | Pav i l i on s | Ba r s
REAPING THE REWARDS WITH THEOBROMA After two years of hard work with the Theobroma family and launching the newly refurbished concept store at Northland Shopping Centre, Andrew and Helen Dawson are now reaping the rewards of business ownership. Chefs by trade and previously working 60 hours a week as employees, Andrew and Helen were no strangers to the dedication and hard work required in the food industry, but still always knew that they wanted to own their business. Andrew says, “Both Helen and I knew that we wanted to run our own café or restaurant but having no business ownership experience, the support and assistance you get within a franchise system really appealed. “We looked at a few different franchise systems but this was the one that really ticked all the boxes.” An established franchise brand, Theobroma have a professional team in place that looks after the franchising, marketing and whole retail experience, but are collaborative in their dealings with franchisees; Andrew and Helen were heavily involved with the refurbishment of the store. Utilising their many years of experience as chefs, they both contributed to the overall design and look of their front of house and kitchen areas to personalise and make it work for them.
FOOD OF THE GODS In response to the spiralling demand for high quality chocolates and chocolate beverages as
an alternative to coffee, Theobroma provides the perfect respite from a bustling day. While the Theobroma menu began by offering traditional artisan hand crafted chocolates, signature coffee, and Belgian hot chocolates; this menu has evolved over the years. Now, consumers can sample a wide variety of chocolate goods such as hot and cold beverages including licensed drinks, chocolate desserts, melted chocolate dips, and other chocolate related products. Some stores also offer a food café breakfast and an all-day menu. Andrew describes the benefits he has experienced working with Theobroma. “Unlike some other franchise systems,” he says, “there is definitely the feeling of a true partnership between franchisor and franchisee. You are able to make changes to the menus and also personalise your store. For example, our menu is different to the stores at Fountain Gate and Cranbourne Park. Over the last two years, we have recognised our customer demographic and now tailor our menu accordingly. This gives you the flexibility and opportunity to try something different.”
BALANCE Initially putting in long hours, Andrew and Helen have now achieved the work/life balance often strived for by business owners. “When we initially took over we were putting in long hours, learning the different processes required to be a franchise owner,” Andrew explains. “Transitioning from being an employee to employer was initially daunting. When you’re an employee, in our case as head chefs, you don’t have to worry about the business side of things; you just worry about your own area. As business owners, we had to learn to look at the whole picture and that’s where the training and support offered by the Theobroma team has been invaluable. Our
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first few weeks of training were spent at the Fountain Gate store, and there we received a complete overview into all aspects of running a store. We completed our training at the head office, which took us through the Theobroma brand, history and future, product range, dealing with suppliers and every facet of business ownership. “At first it was little daunting but once we settled into the group and our store we haven’t looked back; sales have increased by over 25 per cent over the two year period and that’s as a result of everybody working together as a team. This has in turn given us a greater work/ life balance. We no longer have to work those 12 - 13 hour days that we used to when chefs.” Theobroma are confident that once you get to know their business model, you’ll become just as hooked as they are. To find out more, contact Franchise and Operations Manager Benjamin Fernandes on: + 61 3 9480 1030 ben@theobroma.com.au www.theobroma.com.au
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f i nan c i a l a dv i c e
Beware of the Hidden Costs Over the 20 – plus years that Westpac has been involved in funding franchisees, we’ve found a number of areas that can be overlooked when planning to buy a business.
These can have a significant effect upon the resources needed to fund some businesses, or on the cash flow of a business once established. It’s therefore worth exploring if any of these apply to your chosen franchise when you start getting serious.
Set-up and Start-up Costs The costs of getting into a franchise vary a lot depending on the type of industry you
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choose. Generally, service franchises tend to be less complex and require less capital. Retail stores, fast food outlets or restaurants require leases and relatively expensive fit-outs; there may be construction, remodelling, leasehold improvements and decorating costs. There will also be equipment, fixtures, stock and fit-out. Fit-out contributions from the landlord can counter some of these expenses, but you need to allow for all eventualities.
“The business may need 6 - 12 months to reach break-even. This means that the franchise has to be able to fund the balance of the expenses for a considerable period.” Ian Watt | Senior Business Development Manager - Franchising, NSW & ACT | business banking, Westpac
• the rent during the same time (except where able to negotiate a rent free period).
need 6 - 12 months or longer to reach breakeven. This means that the franchise has to be able to fund the balance of the expenses for a considerable period. It’s better to know how much you will need, and have the appropriate funding strategies in place before you start, to save worries and surprises later on.
• the time and cost that the consent process may take.
Guarantees and Rental Bonds
• working capital for other pre and post opening expenses as well as legal fees. In most instances, retail/food outlets tend to be overstaffed during the launch phase so there are additional wages. There will also be initial marketing costs.
Another aspect that is regularly required these days, but tends to be overlooked by potential franchisees (and their financial advisors) until the last moment, is the need for guarantees like rental, stock, or other bonds. This can create huge issues with funding. Some examples are:
• insurance and licencing costs.
Rental Bonds: increasingly in the form of a bank guarantee with relatively large amounts required by some landlords, especially in mall locations. A rental bond in the form of a bank guarantee is called on when the business can’t afford to pay the rent – in other words, is in
Other items that may be neglected include: • the interest on the funds required during the building process - there can be a long period before any money comes in.
• upfront funding of the GST component of many expenditures will be required until it is claimed back in the next available BAS. In some business models, the business may
financial trouble. That means that, in general, the bank guarantee can’t be secured against the business (which would be failing when the guarantee is called on), so the franchisee may need more hard security in the form of equity in a property or even a cash deposit. This is hardly ideal if you’re trying to invest all possible funds into the set-up of the business and suddenly need to come up with another $20,000 to $150,000 for example. Effectively it means a franchisee needs more equity than was previously the case. Guarantees for stock: some systems or suppliers now require franchisees to provide a guarantee to a certain level - for example, a month’s stock, or two drops of fuel for a petrol station. In many cases this also comes in the form of a bank guarantee. This can create a double funding requirement where payments are taken by direct debit; the business or franchisee has to arrange an overdraft with
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f i nan c i a l a dv i c e
“The costs of getting into a franchise vary a lot depending on the type of industry you choose. Generally, service franchises tend to be less complex and require less capital.” One other area to be cautious of is underreported sales. Some franchisees think it’s smart (albeit illegal) to under-report sales in an attempt to avoid tax and percentagebased franchise royalties. When wanting to sell however, they still want top dollar, based on the ‘actual’ rather than professed sales. In the current environment, however, buyers are rightly a lot more conservative and less inclined to pay for unproven sales. Apart from the obvious dangers of taking the seller’s word for it, paying more than the figures justify will make it more difficult to obtain funding against the business.
The Franchise Advantage
the bank to cover any direct debits that come through and then also has to provide a guarantee. The effect is that instead of buying the stock on terms and getting the cash before you need to pay the supplier, you may have to secure an overdraft and provide a guarantee! That would certainly change the business model of many franchises, as well as the resources required to enable a new franchisee to come on board. Other bonds: such as custom bonds for importers which are likely to affect franchisors who import directly. You would need to calculate the additional equity requirement (and cash flow implication) of any guarantees and rental bonds required. One would expect franchisors to take this into account when providing typical set-up figures and for experienced franchise accountants and bankers to address this.
Tax Payments Inexperienced franchisees going into business sometimes get caught out when going into business by not keeping up to date with GST or even PAYG and other statutory payments. An even bigger problem for the franchisors is when franchisees start to use the ATO as a bank by not paying, or delaying paying, tax to fund lifestyle or other expenses. This almost inevitably has a bad outcome when the business gets overextended and can’t catch
up; penalties are levied and the franchisee is in trouble. The franchisor may be surprised to find that a franchisee is doing well on sales can suddenly fall over, owing the suppliers and the franchisor a lot of money and with the ATO first in the queue to get paid. For this reason many franchisors will have their operations managers monitor tax compliance. When re-financing an existing business, the bank will also ask for proof that the normal tax cycle is up to date.
Selling the Business This is an area often under-investigated by franchise buyers, ‘what happens when the time comes to sell?’ There are a number of issues that influence what you can get for a business when you sell and we have seen many that make a sale fall through including: • Does the business need a refit or is there a re-fit requirement imminent? • Will the franchisor approve the potential buyer? • What term is left on the franchise agreement and/or can the buyer get an extension or a new agreement?
Of course, most of the items mentioned here apply to all businesses, not just franchises. The advantage of choosing a franchise is that, in general, experienced franchisors will be aware of – and have solutions for – many of these issues and will be able to ensure new franchisees make allowances for them from the start. By choosing a franchise which has strong management information systems, and taking good professional advice, franchisees can also help to guard themselves against the unexpected. Ian Watt is the Senior Business Development Manager - Franchising, NSW & ACT at Westpac. He specialises in the franchise sector, working closely and assisting many franchise brands grow and maintain their network. He holds a Bachelor of Business, Diploma in Franchising and is a CPA. Westpac continues its long-term commitment to franchising in Australia through a national network of franchise specialist business bankers who are able to deal with the specific needs of the franchise sector. Contact Ian at: ianwatt@westpac.com.au www.westpac.com.au
• Is there a transfer/training fee payable? • If there are sign-written vehicles, in what condition are they and does the franchise agreement require them to be replaced soon?
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The information contained in this article is intended as a guide only and is not intended as an exhaustive list of matters to be considered. Persons entering into franchise agreements should seek their own independent legal, accounting and other advice.
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fo c u s : S e q u el VC F O
THE FUTURE OF FINANCIAL MANAGEMENT TODAY Popularised by companies such as Xero, the last few years have seen exponential growth for companies embracing this innovative medium.
WHAT DOES A VIRTUAL CFO DO? Sequel VCFO act as your Chief Financial Officer (CFO), for a fraction of the price to employ one within your business. A C‑level executive, a CFO can command a salary of $250,000 a year, plus incentives but small to medium sized businesses don’t have the resources for these kinds of executives.
Megan Velo, Chief Operating Officer and David Boyar, Founder & Chief Executive Officer, Sequel VCFO
Founded by David Boyar, Sequel VCFO pushes the boundaries of traditional accounting and brings the future of financial management to the fore, today. Starting the business two years ago, David and his Melbourne based team have filled the void between traditional bookkeepers and accountants and are financial innovators; delivering a superior virtual accounting and finance function at a lower cost through streamlining workflow management. Finance professionals are now invited to unlock their potential by joining this
established business as franchisees and take control of their own financial future. Inspired by a particular experience while working as a Business Banker at NAB five years ago, David says, “My first introduction to VFCO technology happened after being unable to assist a business customer with a debt restructure and advising them to come back and see me when A, B, and C was achieved. “Just four months later, they came back and had absolutely smashed their objective. Asking how they had achieved this, they explained that they had a VCFO and they asked if I wanted to meet him. After seeing the turnaround that had been achieved, I said of course and I ended up working for him!” An emerging industry, VCFO services are underpinned by cloud-based technology which has been around for a number of years.
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Also, CFOs are not going to do your bookkeeping, they’re not going to negotiate with your suppliers and they’re still probably not even going to do monthly management reports. Acting as your CFO for a fraction of the price; at a price point that makes it a perfect fit for your needs, Sequel VCFO become your complete outsourced accounting function. From bookkeeping and payroll, to what’s going on in the business, strategy, and business systems, David and his team have a service delivery model that gives you all the benefits of a CFO and financial team but without the cost. Sequel VCFO helps small to medium businesses to: • Analyse finances - advising and acting on the findings. This can be anything from your accounts payable process, your customer mix, segmentation, operations, and even key staff. • Make smarter business decisions. The practical nature of the advice, strategy and reports provided mean that it is easy to understand and action.
UNLOCK YOUR POTENTIAL AS A VIRTUAL CFO WITH ALL THE RIGHT TOOLS LEADERSHIP ENHANCEMENT PROGRAM CLOUD READY TRAINING
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• Improve business through financial control and visibility. Once all the facts about the business have been collected, Sequel VCFO advise on how to improve it, working on areas which are profitable or not, developing strategies for both.
JOINING SEQUEL VCFO AS A FRANCHISEE David’s long term vision for the business focused on scalability and franchising was the ideal medium. Meeting and working with business leaders and accomplished franchise professionals, including legal firm Hall & Wilcox, consultants FC Business Solutions and former C-level executives from Boost Juice Bars - one of the most successful franchise systems across Australia - David knew he was on the right path. “To achieve success and be the best, you have to have the best help and that is what I did. If I’m successful, my franchisees are successful,” says David. Franchisees from a number of different professional backgrounds are suitable to join this innovative franchise system.
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www.sequelvcfo.com.au/franchising
@SequelVCFO
“Support and culture are the drivers for franchise success, indeed any business success, and that is the differentiator between us and our competitors” Financial Controller or CFO in industry
Senior Member of Traditional Accounting Firm
“I keep doing the same things for the same people, what else is there?”
“I’m an Entrepreneur but work for a nonentrepreneurial firm.”
You have 10-15 years’ experience and have worked with senior leadership groups for a very long time and now you want to be the business owner. You are starting to look for more from your work and you’re filling an urge to give back to the business community who has supported you to grow into a respected finance professional. Restructure or Insolvency Professional “If I can manage a business at its lowest ebb, surely I can do well with one that isn’t!” Emerging from the insolvency firms, you’re used to running businesses when they are at their lowest point, and you have a deep understanding of cash flow and you’re used to being inside clients’ businesses.
You have strong business financial skills outside of tax returns and annual account preparation. You have an interest in management accounting and identify with being an entrepreneur in a nonentrepreneurial firm. Finance Professional “I may not be a CPA or CFO but I can do so much more!” Your career started in accounting, but after completing a professional designation, you moved into other areas of business. Always keeping your grounding in accounting and finance, your roles have ranged from marketing to HR to general management, even at one stage running your own SME.
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fo c u s : S e q u el VC F O
“Popularised by companies such as Xero, the last few years have seen exponential growth for companies embracing this innovative medium.” UNRIVALLED FRANCHISEE SUPPORT David says, “Support and culture are the drivers for franchise success, indeed any business success, and that is the differentiator between us and our competitors as well as our relationship with the Australian Institute of Management (AIM). As one of the founding members of the Virtual CFO Association, which is growing quickly in membership, I am committed to increasing awareness of VCFO services to SMEs and promoting the benefits of becoming a VCFO.” The Sequel VCFO franchise system bridges any gaps between franchisees’ commercial and technical experience by offering seven business success features. 1. Leadership Enhancement Programme. Designed in partnership with the Australian Institute of Management (AIM), this
programme is focused on emotional intelligence and the skills needed to be good at what you do. The programme qualifies for Continuous Professional Development (CPD) and features customer relationship management, sales management, dispute resolution, staff management, and managing remote teams. 2. Cloud Ready Training. Incorporated within a three week training schedule, this teaches you how to execute your technical skills using new and efficient cloud based tools and also qualifies for CPD 3. Sequel Community. An annual conference and online portal allow for peer-to-peer learning, within an active community network. 4. Digital Marketing Platform. Your website and social media accounts are built and access is provided to over 100 articles within the extensive library.
5. Business Apps and Productivity Suite. In a world of ever-changing technology, franchisees receive a pre-loaded computer, with cutting edge software and all the business applications required to run a successful Sequel VCFO business. Franchisees also receive built-in IT support which allows direct lodgement of queries with the IT helpdesk. 6. Sequel Toolbox. Over 60 workflow templates, agendas, checklists, questionnaires and presentations can be accessed to run your VCFO business. 7. Global Workforce. Access to Sequel trained Management Accountants to scale your business. Running a business is hard but starting one is harder and riskier. Sequel VCFO provides a turnkey solution and everything you need to become a successful business owner today. If you would like to know more about this innovative and growing industry, contact Sequel VCFO today via: hello@sequelvcfo.com.au www.sequelvcfo.com.au/franchising
VIRTUAL CFO FRANCHISE OPPORTUNITY
UNLOCK YOUR POTENTIAL AS A FINANCE PROFESSIONAL GET YOUR GUIDE TO BECOMING A SEQUEL VIRTUAL CFO
www.sequelvcfo.com.au/franchising hello@sequelvcfo.com.au @SequelVCFO
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@SequelVCFO
@SequelVCFO
e xpert a dv i c e
Increasing Momentum and your Chances for Success As a speaker and a business development consultant and coach, I am often asked: How do I close the gap between where I am and where I want to be? There are many ways to answer this question, but my answer is: Achieving business success is all about doing the right things, in the right order, at the right time. Easier said than done, right?
Before we talk about how you can increase your chances for success, let’s take a moment to understand why many business owners get stuck. Firstly, they don’t have a clear enough or a strong enough why, or they have lost their connection to their why. Without knowing why you get out of bed every day and why you do what you do, you will find it almost impossible to stay focused on your short term goals to achieve your desired outcomes. Another reason why business owners become stuck or stay stuck is that they haven’t clearly defined what these desired outcomes are for them. It’s no wonder that most small
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businesses owners are struggling and are finding it hard to take their business to the next level, when many are changing their desires from week to week. If this sounds like you, why not make yourself a cuppa and take the time right now to get really clear about why you do what you do, and what it is you want. What specifically do you want to achieve over the coming 12 months? Once you have clarity around what you want to achieve in your business, and why you want it, you will find it much easier to source the internal and external assets to achieve your goals and build momentum. Some business owners get stuck directing too
“Make yourself a cuppa and take the time right now to get really clear about why you do what you do, and what it is you want.” Tania Allen | Founder | Vision Alliance
Success Starts With: Knowing your Gap
Success Starts With: Understanding your Business
The best place to start closing the gap between where you are and where you want to be is first determining the gap. Take a piece of paper and a pen right now and write down what your current revenues look like. What about your profits, number of customers, and your average transaction value? Note the number of hours you work and the number of days you have off throughout the year. Now, jot down where you want to be in all those key areas. The difference between the two is your gap.
You are in the Sales and Marketing business.
Another great way to look at things is to simply write down the revenue figure you would like to be achieving, for example, $1 million. If you were currently earning $600 thousand, your gap would be $400 thousand. Depending on your point of view, your gap may seem like a lot or a little. But know this: Your gap is how much it’s costing you when you don’t take full responsibility for your success and do whatever it takes to achieve your goals. When you know your gap, you can work backwards to determine what you must do; such as how many goods and services you should aim to sell in the coming year, and at what price.
much of their time to low income activities, rather than high income and high impact activities. You know the ones I’m talking about, don’t you? It’s the classic 80:20 rule; 20 per cent of your efforts will produce 80 per cent of your results or vice versa, depending on your business and your discipline. Imagine what your results could be if you focused on doing the right things, in the right order, at the right time. Now you know some of the key reasons why business owners become stuck and stay stuck, let’s dive into the critical elements that can help you move forwards and close the gap between where you are and where you want to be.
Success Starts With: The Right Mindset Success in business and life comes down to one fundamental ingredient: a growth mindset, as opposed to a fixed mindset. Put simply, it’s about adopting a glass-half-full attitude for success. We may all drink from the same glass, but how you view that glass determines your level of success both in business and life. In short, our thoughts create our beliefs, which then determine our behavior: the actions we take. These actions determine the results we get. This means if you want to increase sales, make more money, and create more time to do the things you love; it starts with a conscious decision to do so.
Until you completely understand this, your business will be no different from, and no better than, any of your competitors. There are more and more franchised brands coming to play in the market, and so more and more choices for your prospectors and potential customers. For this reason, it is vital to understand that you are not in the business of selling coffee, or making burgers, or cleaning pools, or mowing lawns. You are in the Sales and Marketing business. Your business is all about what your product or service does for the customer, not the actual product or service itself. Your marketplace is so fiercely competitive, so cutthroat, and so unforgiving, that you must do something to distinguish yourself from your competition. A differentiating factor for your business could be something as simple as remembering your customers’ names. Make the effort to make your customers feel welcome, like they belong with your company. Would you go back to do business with someone who made you feel unwelcome?
Success Starts With: Taking Action Most people I talk to believe that knowledge is power! I believe they are only halfway to success with this attitude. Only applied knowledge is power. It’s not what you know; it’s what you do with what you know that really counts! Start today, take action, and don’t give up, and you will be amazed at the results you can achieve.
Success Starts With: Eliminating the F Word They say the F word can hold you back, but I also believe the F word can fuel your success. I’m talking about Fear, of course. Fear can be defined in many ways, and it can appear in many forms. I have been privileged to learn from some of the best in the business, and
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“When you know your gap, you can work backwards to determine what you must do.”
each one of them has shared their wisdom around the F word. The most important thing is to lean into fear when it’s necessary, and walk away from it when it’s holding you back. However, knowing what to do and when is an art form. You cannot start to change until you become aware of what needs changing. If you find fear is holding you back from achieving what you want, become aware of it, feel it, and then walk away from it. This one tip alone has supported me in achieving what I want many times over. Instead of fearing feeling afraid, embrace it, and understand why it’s there. Then you can look at your goals without fear getting in the way.
The Most Profitable Thing You Can Do for Your Business The most effective, the most cost-efficient, and the most profitable thing you can do in your business is to build a database of your present and past customers, and then do something with it. Build strong relationships, follow up with them, and invite them to return business with you again and again. If you’re a retail store and you are not collecting emails and mobile numbers form your customers, you are missing countless opportunities. Had a slow morning? Simply send out a lunchtime promo via SMS, or a call out for last coffees
in the afternoon. In our business, we send out an SMS to offer free strategy sessions, take up flash sale promotions, and more. It doesn’t have to be an elaborate system, plan, or strategy, and it doesn’t have to cost you a fortune either. As long as your plan is targeted to unique wants and desires, fears and frustrations of your customers, this system is an invaluable asset.
Stop the Leaky Bucket Syndrome As small business owners, we sure know how to leave a stack of money lying on the table. Most business owners are losing traffic because they don’t have a solid lead capture system, losing leads because they don’t have a solid lead nurturing system, and losing customers because their conversation system is either not good enough or not there at all. So how do you turn leads into qualified prospects, and how do you move them across the finish line and keep them coming back for more? The answer is simple: You must implement a Lifecycle marketing framework into your business. Essentially, Lifecycle marketing is a framework that will help you attract more qualified leads into your business, convert qualified prospects into customers, and help you create an outstanding customer experience
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so that your customer retention statistics go through the roof. After all, success is not simply about bringing in more leads; it’s about attracting the right leads, closing sales faster, and turning leads into raving fans and advocates for life. Take a moment now to think about how you can start plugging the holes in your funnel. Go through the short exercises outlined above, map out a clear plan of action for at least the next 90 days, and take consistent daily action towards your goals. If you need any further help getting any of these ideas into action, and to start laying more solid foundations for the coming 12 months, you can also book a personal strategy session with me. You’ve got nothing to lose and everything to gain. Tania Allen is the founder of Vision Alliance and TaniaAllen.com. A transformational leadership coach, business growth and franchise expert, she helps business owners create a business and life they love. You can contact Tania at: 1300 76 49 20 tania@taniaallen.com www.visionalliance.com.au
Steve Costi and his family have been in the seafood business since 1958, and after years of success have decided to franchise the Famous Fish business. Coupled with the strength of the Costi Brand, our franchisees will benefit from our comprehensive training, business, marketing and head office support. Set sail in one of Australia’s most successful retail sectors!
SEAFOOD REMAINS THE #1 TAKE-AWAY food item sold by independent take-aways in Australia.
Serving authentic, original and accessible seafood, and delivering an efficient, manageable franchise business.
Join our franchise family! We take an instant liking to committed, hardworking individuals who have a dream of working for themselves and strong ideals about quality, because people that hang onto those ideals always make it! For more information regarding the Famous Fish Franchise opportunity, please contact Sal El-Houli:
P: 0425 786584 E: franchising@famousfish.com.au W: www.famousfish.com.au Business Franchise Australia and New Zealand 77
FRANCHISIN G EXPO
Wealth of opportunities at Sydney Franchising Expo
Anyone ready to be their own boss in 2017 can take the first step by registering for the Sydney Franchising & Business Opportunities Expo, opening 25-26 March at the brand new ICC Sydney at Darling Harbour. “Whether visitors are looking to make a bit of extra income, or considering a complete change of career, there will be a wealth of ideas and information available,” says Exhibition Manager Fiona Stacey. “Nothing can replace that face to face interaction – meeting the people behind the brands is the best way to find a business that
fits best with your skills, your budget and your dream lifestyle.” Stacey says she is looking forward to seeing the first show for 2017 come alive in the new venue at ICC Sydney. Featuring a striking contemporary design, leading technology and multipurpose spaces, this exciting new venue is located in the active precinct of Darling Harbour. “It’s the show’s 30th year, which is an exciting milestone for us as organisers, and also for our exhibitors,” she says. “Over the years we have seen many of Australia’s best known franchise brands launch and grow at the Expo. “In 2017 we are also re-launching the Franchise Advice Centre to give visitors quality time with financial and legal specialists, and the seminar stage is moving to the centre of the show floor, with two days of free sessions from experts in all aspects of franchising and business success.”
Visitors to the Sydney show can check out a wide spectrum of business ideas, from established brands such as EmbroidMe, Poolwerx and Donut King, to up and coming business concepts like Mobile App City, H2O Innovate, The Graffiti Eaters and Wheel Change U. In addition there will be an appetising range of food and beverage franchises from the likes of Australia’s largest food franchise company Retail Food Group, international brands like Papa Johns, newer players like Juiced Life, Ogalo Portuguese Chicken and Fogo Brazilian Churrasco Grill, plus Aussie success stories such as Xpresso Mobile Café and New York Slice. “It’s a new year and many people are considering their lifestyle and career choices,” reflects Fiona Stacey. “For many, it’s time to make a new start, and there is no better place to see so many business ideas under one roof than the Franchising Expo.” Reader special: register for free at www.franchisingexpo.com.au by using code BFM.
franchising & Business Opportunities Expo 2017: Sydney: 25-26 March at International Convention Centre, Darling Harbour
Perth: 7 May at Crown Perth Brisbane: 22-23 July at Brisbane Convention & Exhibition Centre, South Bank Meeting the people behind the brands is the best way to find the right business for you and your lifestyle.
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Melbourne: 26-27 August at Melbourne Exhibition Centre, South Wharf
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Create a compliant culture before it’s too late
At the National Franchise Convention 2016 one of the key topics discussed was the liability of franchisors for the actions of their franchisees, particularly in the area of employee entitlements. Several high-profile cases, including the 7-Eleven underpayment investigation and more recently investigations of Chemist Warehouse and Caltex, have led to increased attention on the franchise industry and have given credence to policy proposals from both sides of politics for reform in the area of franchising.
The Government’s commitment The Government has been committed for some time to amending the Fair Work Act 2009 (Cth) (Act) to guarantee greater protection for vulnerable workers. In May 2016 the Government launched ‘The Coalition’s Policy to Protect Vulnerable Workers’ (Government Policy) in which it made a series of promises to protect vulnerable workers from systemic exploitation. The proposed reforms include:
“The requirement to be ‘involved in’ a contravention is not as onerous as it sounds and can be as simple as ‘aiding’ the contravention.” Melinda Bell | Hall & Wilcox
1 an increase in penalties under the Act to 10 times current penalties of $10,800 for individuals and $54,000 for companies where employers deliberately underpay workers and fail to keep proper records; 2 amending the Act to make franchisors and parent companies liable for breaches of the Act by franchisees or subsidiaries where they should have reasonably been aware of the breaches and could have taken reasonable action to prevent the breaches occurring; 3 the contribution of $20 million to clamp down on wage fraud across the country; 4 the appointment of Professor Allan Fels as the head of a Migrant Worker Taskforce; and 5 the introduction of compulsory evidencegathering powers to the FWO, similar to those of ASIC and the ATO. While the Government Policy is yet to become
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law, given recent attention on the industry and a policy push by the Fair Work Ombudsman (FWO), it is likely that until the Government Policy is enacted in legislation, the FWO will use the current provisions of the Act to hold franchisees and franchisors to account.
Are franchisors already liable for actions of franchisees under the Act? A speech given by the FWO, Natalie James, in July 2016 to the Australian Human Resources Institute, makes it clear that the FWO certainly thinks that franchisors can already be held accountable for breaches of the Act by their franchisees. Under s 550 of the Act, individuals and companies can be found liable for breaches of the Act where they are ‘involved in’ the contravention. A person is ‘involved in’ a contravention of the Act, if the person:
1 has aided, abetted, counselled or procured the contravention; or 2 has induced the contravention, whether by threats or promises or otherwise; or 3 has been in any way, by act or omission, directly or indirectly, knowingly concerned in or party to the contravention; or 4 has conspired with others to effect the contravention. The maximum penalties for each breach of the Act are $54,000 for a company and $10,800 for an individual. Until recently this provision was seen as a fall back provision; used to prosecute directors where there was a fear that a company would be wound up to avoid paying workers. Now however, the FWO is using this provision to hold accessories to account on a more systematic basis. In the 2015-16 financial year, the FWO sought orders against accessories in over 90 per cent of the cases it filed. Importantly, the FWO also no longer confines itself to seeking penalty orders against accessories. In one recent case, a former director of a now wound up company was ordered to personally repay almost $23,000 in lost wages to eight employees, on top of a $51,400 penalty.
Franchisors should be aware that there is clearly scope under the current Act for such orders to be made against them. In one 2014 case, a franchisor who advised a franchisee on the process of terminating an employee, by drafting the termination letter and conducting a termination meeting, was found to be liable under s 550 for the franchisee’s adverse action. This is despite the fact that it was the franchisee that had made the decision to terminate the employee. In November 2016, the Yogurberry outlet in Sydney’s World Square Shopping centre was found to have underpaid four Korean workers a total of $17,827 between July 2014 and May 2015. The franchisor was fined $25,000 for its direct involvement in establishing pay rates for employees and deliberately refusing to disclose information about its financial status to the FWO. The payroll company used by Yogurberry was fined $35,000 and Ms Soon Ok Oh, a director and part owner of all the corporate respondents, was personally fined $11,000. As shown above, the requirement to be ‘involved in’ a contravention is not as onerous as it sounds and can be as simple as ‘aiding’ the contravention. By way of example, the
FWO recently issued proceedings against an accounting firm which it alleges knowingly processed payments that were below the relevant award rates. Given that so many franchisors administer payroll for their franchisees, it is easy to see how a franchisor could be prosecuted in similar circumstances.
What should franchise systems do? To date, only franchisors who have been intimately involved in a franchisee’s contravention of the Act have been liable as an accessory. During the FWO’s investigation into 7-Eleven it was noted that mere knowledge or suspicion about general non-compliance does not meet the ‘involved in’ requirement of s 550. A successful prosecution requires evidence of involvement in or knowledge of specific contraventions by specific franchisees, which the FWO determined it did not have in the case of 7-Eleven. Therefore, those franchisors who manage to keep some separation between themselves and the action have avoided prosecution. While franchisors may have to date opted to ‘stay out’ of the day-to-day management of their franchisees and their compliance with
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relevant workplace laws, given the potential ramifications of failing to comply with workplace laws this approach may not cut it.
“To date, only franchisors who have been intimately involved in a franchisee’s contravention of the Act have been liable as an accessory.”
Leaving aside the damaging effects negative publicity has upon a franchise’s brand in the event of an underpayment or similar scandal, given the statements by the FWO and the Government Policy, it seems that franchisors can no longer afford to turn a blind eye to what their franchisees are doing. The FWO is clearly intent on sending a message that no one is immune from prosecution. Ensuring that a franchise system doesn’t fall foul of the FWO’s renewed endeavour, as well as the Government Policy (if enacted into law), is about maintaining a strong culture of compliance. Franchise systems need to ensure that their employment arrangements are compliant with applicable laws and importantly, that employees are being remunerated at least with applicable minimum rates under the relevant industrial instrument. Franchisors must act on any evidence of noncompliance, but on top of this should also consider arrangements to periodically confirm that franchisees are complying with their obligations under the Act. Now is a good time for franchisors to review their arrangements with franchisees, as well as their internal policies and procedures, to create a culture of compliance.
Karl Rozenbergs | Hall & Wilcox
Failing to take these steps will inevitably result in someone being held to account in the event of breaches of workplace laws and the associated brand damage that such scandals cause - the question is, do you want that someone to be you? At Hall & Wilcox, we deliver ‘smarter law’. This means being smarter across our entire business – by being progressive, by our commitment to excellence and by our focus on building great relationships. For our clients, this translates to better quality, better value, improved efficiency and greater ease of doing business. Melinda provides strategic and practical advice on a range of employment and industrial relations law issues. Melinda regularly advises clients on the employment-law related aspects of commercial transactions, the implementation of corporate restructures,
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transfers of business and outsourcing arrangements. She also regularly provides strategic advice to clients on the performance management of employees, employee discipline and the implementation of redundancies and workplace change. Karl is the section leader in the firm’s Employment and workplace relations team. Karl is an experienced litigator who understands the complicated nature of employment disputes and the effect they have on a business’ culture. He is a skilled negotiator and appreciates that sometimes less is more. Melinda Bell T +61 3 9603 3421 melinda.bell@hallandwilcox.com.au Karl Rozenbergs +61 3 9603 3583 karl.rozenbergs@hallandwilcox.com.au
BUILD YOUR FUTURE WITH A RETAIL ICON
As one of Australia’s iconic retail brands, with a proud history over the past 70 years, we now have 65 stores nationally. Our award winning franchise model commenced in 1995 and offers a vibrant product range providing you a great platform to start your own successful business in the pool and spa industry. Our business development and support teams will assist you in building your successful business. We have a number of new franchise models available and are looking for motivated and business orientated people to join our network. Clark Rubber Pool Care Service Territories start from $49,500 plus working capital.
Our industry knowledge will help you build a strong business, becoming the local pool specialist in your territory and helping you work in a lifestyle environment. Our franchisees benefit from: • • • • • • • •
Unparalleled national and local support Proven marketing and business strategies Group buying power No franchise renewal fees Turnkey development and set up Retail brand celebrating 70 years Multi Award winning franchise system Unsurpassed initial training and ongoing support
If you would like to hear more about franchise opportunities in your area, please contact Dirk Heinert for a confidential discussion on (03) 8727 9999 office or mobile 0400 922 493 or dirk.heinert@clarkrubber.com.au
clarkrubber.com.au Business Franchise Australia and New Zealand 83
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Franchising Starts a World Revolution: What the Performance of Shares Tells Us
The idea of franchising dates back to the middle ages. A King would give rights to individuals to engage in certain activities, including brewing ale or running a market stall.
We’ve come a long way since those early days. Now, the International Franchise Association believes that there are 760,000 franchised establishments in the USA alone. In addition, PricewaterhouseCoopers believes that franchising creates 18 million jobs and yields US$1.53 trillion in economic output. In Australia, the franchise sector is worth $146 billion… and it’s growing.
Australia, has gone global.
The Growth of Franchising
From here, the idea of franchising grew, and it was formalised in 1851 by Singer. The sewing machine company granted distribution rights to franchises and, as a result, it is often referred to as the first modern franchise operation.
Franchising has undoubtedly grown, and now some of the world’s biggest companies are franchises, including all 11,200 Dunkin’ Donuts shops, 18,775 KFCs, 35,690 McDonalds and 42,230 Subway stores (figures available from MSN.com). Franchising, once confined to the US before spreading to
Franchising is now amongst the most dynamic and progressive business sectors in the Australian economy. It has revolutionised retailing in Australia and provided small business owners with resources that allow them to compete with much larger corporations. As such, franchising has evolved. No longer is it simply a means for Australians to benefit from foreign products and systems,
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The US style franchising system has even become popular in countries such as the UK, which some critics thought was an impossibility. In the past two years, the number of franchises in the UK has increased by 14 per cent to 44,000 franchisee-owned units, with franchising now adding £15bn to the UK economy.
“Franchising business models are attractive to investors because of one main advantage they have over a traditional model: you’re buying into a concept that you already know works.” Alexander Honeyman | Market Analysis Expert | Oanda
now it is a method for many entrepreneurs to expand and develop their businesses. Now, figures show that there are around 1,160 business format franchisors in Australia, operating 79,000 units. As such, the franchising sector in Australia alone employs almost half a million people. In addition, around 30 per cent of these Australian franchises have entered international markets, taking Australian finances global.
Franchising Success for Owners Not only was it a good year for the franchises themselves, but it was a good year for franchise owners, too, with a record number (97 per cent), of franchise owned units reporting profitability this year. Of those, over half (56 per cent) said they were either “quite” or “very” profitable.
Business Model Advantages: Why Invest in Franchising? There are many advantages to the franchising business model. For example, business owners who join a franchise are more likely to receive bank financing because they’re perceived as being less likely to fail than a regular start up business is. It’s not just the idea of franchising that’s becoming popular, too. The way that franchises operate is also changing. Whereas most franchises used to simply be imported from the US, nowadays they’re spreading across the globe. Franchising business models are attractive to investors because of one main advantage they have over a traditional model: you’re buying into a concept that you already know works. This lowers the associated risk; especially as
you’re not starting a new business in the same market and already have the brand recognition that the public will respond to.
Top Performing Franchises So, with this in mind, what type of performance are we seeing from shares in franchise models at the moment? What sort of opportunities are available at different price points? Let’s take a look at McDonalds, Poolwerx and Hilton Hotels.
McDonalds Franchises don’t come much bigger than McDonalds. Described by some as a ‘dividend aristocrat’, McDonalds has 40 years of dividend increases under its belt, and that shows no signs of changing any time soon.
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We’ve seen a strong rally from McDonalds’ stock over the last year, which has prevented it from being as undervalued as it once was. However, although this means that now may not be the best time to buy McDonalds stock if you’re a value investor, it’s still a good prospect if you’re an investor who needs current income, such as a retiree. At the close of September, McDonalds announced a 5.6 per cent dividend increase, and investors who had long viewed McDonalds as strong dividend stock were incredibly happy with this. Challenges for the company remain, including a limited growth potential. This means now might not be the best time to buy McDonald’s stock if you don’t currently own any. But, if you do, the future looks very rosy indeed.
“Franchising is now amongst the most dynamic and progressive business sectors in the Australian economy. It has revolutionised retailing in Australia and provided small business owners with resources that allow them to compete with much larger corporations.” a market that’s as organised as Australia’s, making it both efficient and reliable. If they’re successful, they could make some big waves.
Hilton Hotels China’s travel market is booming right now, and companies such as Hilton and Marriot are seeing the benefit of this in a big way. Hilton may currently be trading 13 per cent down on its 52-week high, but it has a solid price to earnings ratio and a large window of opportunity. As such, Hilton’s stock has outperformed the S&P 500 by 0.9 per cent.
Poolwerx were founded in Brisbane and they’ve grown to be Australia’s most successful pool cleaning franchise. Now, there are over 100 Australian franchises, consisting of almost 100 retail stores and over 300 mobile service vans.
The company is forecasted to report earnings per share of around US$0.23 per share and over $3 billion of revenue for the 3rd quarter of 2016. As such, due to the market openings, particularly in China, now seems a good time to be buying shares in Hilton; especially as they’re continuing to perform well in tough economic circumstances.
Now looks like a great time to buy stocks in Poolwerx, particularly as it looks to expand into the American markets. Poolwerx aim to convert the American pool industry into
For Hilton, the big challenge now is staying ahead of rivals such as Marriott and Air BNB. The market is no longer about high end hotels. Instead, it’s all about capturing the middle
Poolwerx
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classes, something that Marriott seem well positioned to do. To conclude, franchise businesses continue to expand globally, with huge successes in Australia, America, and notably the United Kingdom. However, this success isn’t all equal and, although McDonalds continue to soar, other companies such as 7-Eleven are still struggling. The business model associated with franchising has several notable upsides in comparison with traditional models, which means a number of opportunities in the stocks market are available. However, you need to do your research carefully before you buy. Alexander Honeyman is a market analysis expert for Oanda, specialising in shares, currency, business news and financial trends. He has six years’ experience in the field and holds an MA in Journalism. For more information on business solutions for your franchise, contact: info@oanda.com 13000 OANDA (13000 62632)
with change brings
OPPORTUNITY new thinking, new business M A S T E R F R A N C H I S E S AVA I L A B L E Wouldn’t you rather be a V.I.P.! V.I.P. Home Services - Fencing and Home Maintenance is a newly launched division that is part of the iconic V.I.P. Home Services group. We have the pleasure of offering you this unique opportunity! Currently, we are seeking suitable candidates to take up the limited Master Opportunities that are available Australia wide, in Fencing & Home Maintenance. Our offer to you: • Join a trusted and established brand since 1979 • Have access to quality and modern systems • Have essentially two businesses for less than the price of one And much more... In limited areas: Franchises are available in; Fencing OR Home Maintenance! Visit our website for more information about this fantastic opportunity!
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headlines Pie Face closes company-owned stores in preparation for sale Trouble-plagued brand Pie Face has gone bust for the second time in two years following the closure of its manufacturing business, with its remaining operations being restructured ahead of a sale by receivers, according to a media report. The manufacturing business of Pie Face – one of three entities to emerge from insolvency in early 2015 under a deed of company arrangement (DOCA) when Pie Face first went bust – was put into the hands of receivers for failing to meet its DOCA obligations in November. This, along with the brand’s
franchising arm and its intellectual property, is now being offered for sale by receivers O’Brien Palmer. The chain had more than 70 outlets in Australia at its peak, plus outlets in New York and other overseas locations when it first went bust in late 2014, resulting in the closure of more than 20 stores, and losses in exess of $20 million for private investors who had bought into the franchisor company. Pie Face currently has just 28 surviving outlets in Australia, with its US operations closed and former CEO and company founder Wayne Homschek pursued by former investors who lost millions.
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Class actions potentially brewing against Caltex over wage fraud Two class actions against fuel retailer Caltex are potentially brewing following claims that workers in its network of outlets have been exploited over a number of years, according to a media report. One class action is to be brought by franchisees, who allege that its business model leaves them insufficient profit, while the other will be brought by exploited workers to recover unpaid wages and employee entitlements, according to the report. These are similar grounds to those previously reported in regards to 7-Eleven.
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Caltex says it is investigating alleged underpayments to workers and has terminated five franchise agreements covering 13 sites to date.
Red Rooster parent eyes $650 million float Quick Service Restaurant Holdings (QSRH), which owns fast food brands Red Rooster, Oporto and Chicken Treat, is expected to float on the stock exchange in 2017 for an estimated $650 million, six years after private equity bought it for $450 million, according to a media report. Red Rooster is expecting sales growth of at least five per cent this financial year, largely driven by its new home delivery service which currently serves 5,000 customers per day. Private Equity owners Archer Capital bought the business in 2011 from previous owner Quadrant Private Equity.
Video footage shows 7-Eleven still grappling with wage fraud Covert footage taken by ABC News in a Brisbane 7-Eleven store indicates that wage fraud is still occuring, with workers paying back nearly half of their earnings in cash to their franchisee in a fraud known as the cashback scam. The ABC report showed the worker handing over cash after withdrawing it from her bank account, effectively reducing her hourly rate from $25 to $14, with $11 being repaid to her employer. In a statement on the ABC News website, 7-Eleven said it did not condone any fraudulent behaviour and would investigate the incident. Since the wage fraud scandal first made national headlines in September 2015, 7-Eleven has paid more than $55 million in outstanding wages to 1,382 workers.
Greens push to increase wages for franchise groups The Greens party has introduced a bill into Federal Parliament that would increase the wages of workers on enterprise agreements – often used by franchise groups – by requiring such agreements to match wages otherwise payable under a relevant award, according to a media report. The move is supported by the newly-formed
Retail and Fast Food Workers Union (RAFFWU) and its founder, Josh Cullinan, who exposed wage underpayment at Coles when comparing the Coles enterprise agreement with the relevant award. Under the Greens bill, employers and groups such as fast food chains, would be required to increase their rates of pay to match those available under relevant awards, where current enterprise agreements may have traded-away penalty rates in return for higher hourly rates of pay. The move puts the RAFFWU on a collision course with the Shop, Distributive and Allied Employees Union (SDA), which negotiated the agreements in the first place.
Chemist Warehouse ordered to pay staff $3.5 million Pharmacy retail chain Chemist Warehouse has been ordered to pay nearly 6,000 workers more than $3.5 million for unpaid online training undertaken by the employees outside of normal working hours, according to a media report. Despite advising its franchisees that they should pay their staff for compulsory training, the 350-store network has agreed to sign a compliance deed on behalf of its franchisees with the Fair Work Ombudsman.
Pizza Hut acquires Eagle Boys Private equity firm Allegro Funds, which recently bought the Australian operations of Pizza Hut from its parent company Yum!, has bought rival chain Eagle Boys from administrators for an undisclosed sum, according to a media report. More than 50 out of 114 Eagle Boys stores are currently in the process of being rebranded to Pizza Hut. The acquisition will add to Pizza Hut’s current 270 stores, and strengthen its position as a solid competitor to Domino’s which dominates the Australian pizza market. The acquisition follows a turbulent year for both Pizza Hut and Eagle Boys, with Pizza Hut’s former owners defeating a franchisee class action arising from its price war with Dominos, and Eagle Boys going into administration owing an estimated $30 million after shrinking from a peak of 340 stores in its prime.
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Jason Gehrke | Director Franchise Advisory Centre
First prosecution of franchisor for staff underpayments The Australian franchisor of yoghurt chain Yogurberry is the first franchisor to be prosecuted by the Fair Work Ombudsman for being an accessory to the exploitative practises of one of its associated companies. Yogurberry must submit to a national audit of its chain, plus pay financial penalties of $146,000 across several entities for the underpayment of four Korean workers on 417 holiday working visas employed at World Square, Sydney. The four were underpaid $17,827 despite previous warnings about underpayments, including two infringement notices which the company treated as a “cost of doing business”, according to the court decision. Co-owner of the Yogurberry Australian master franchise, Soon Ok Oh, was also penalised $11,000 for her involvement in exploiting the workers.
Listed Australian KFC operator acquires outlets in Germany Collins Foods, the listed Australian operator of KFC restaurants in Queensland, Western Ausralia and other parts of the country, has agreed to buy 11 KFC restaurants in Germany for 12.7 million euros, according to a media report. The acquisition has been flagged as an initial foothold in the European market for the company, with Germany’s number of current KFC outlets expected to more than double to 300 in the next few years. www.franchiseadvice.com.au
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pr of ess i ona l s er v i c es l i st i n gs
HARMANS LAWYERS
IP | partnership
485 Papanui Road, Christchurch
Level 6, 64 Marine Parade (Po Box 10857) Southport Qld 4215
P +64 3 352 2293 F +64 3 352 2274 Contact Mark Sherry or Alan Prescott E mark.sherry@harmans.co.nz www.harmans.co.nz If you’re considering buying a franchise you need the legal confidence that the agreement is fair and ethical. Getting the right legal advice early is essential, and that’s where the knowledgeable Harmans team of franchising experts can help. Our extensive experience in all aspects of franchising, across a wide range of industries, will provide you with the advice you need to more forward with confidence. We have acted for franchisors and franchisees over many years and know the advantages of franchising and pitfalls to watch out for. Our Franchising Team can assist with a full range of franchise related services, including: - Legal rights and obligations under franchise documentation - Business structures and asset protection structures - Financing issues - Employment issues and health and safety - Lease arrangements and agreements - Terms of trade - Dispute resolution
P 07 5591 2522 F 07 5591 2511 Contact Peter Thelwell E pt@ippartnership.com.au www.ippartnership.com.au A specialist Franchising and Intellectual Property legal and consulting firm, providing comprehensive advice for Franchisors from conception through to recruitment of Franchisees and ongoing management of the franchise. Clients receive expert, cost-effective advice on a collaborative basis with the firm taking great pride in its long term relationships with Franchisors. Expert advice and assistance is also provided to Franchisees buying & selling businesses as well as in relation to disputes.
We are members of the Franchise Association of New Zealand
Krneta Building Surveyors
MARSH & MAHER LAWYERS
Lvl 2 100 Wellington Parade, East Melbourne VIC P 03 9604 9400 F 03 9419 7735 Contact Robert Toth E rxt@marshmaher.com.au Marianne Marchesi E mim@marshmaher.com.au www.marshmaher.com.au
Suite 5, 39A Glenferrie Road, Malvern VIC 3144 P (03)9509 3176 F (03)9509 2146 Contact Nathan Krneta E nathan@krneta.com.au www.krneta.com.au Krneta Building Surveyors is a national consulting firm, consisting of specialist certifiers and compliance advisors providing a range of professional services in a variety of sectors to assist in the delivery of successful projects. The services for Franchisors consist of obtaining building permit approvals, certification and liquor licence assessments for tenancy fitouts and new developments nationally.
92 Business Franchise Australia and New Zealand
30 YEARS OF FRANCHISE INDUSTRY KNOWLEDGE AND EXPERIENCE ACTING FOR LOCAL AND INTERNATIONAL FRANCHISES Members of: Franchise Council of Australia (FCA) International Franchise Lawyers Association (IFLA) Marsh & Maher Lawyers Provide fixed fee services to franchise clients for most aspects of work. Marsh & Maher Practice in the following areas: • Commercial and Corporate Law • Corporate Reconstruction and Insolvency • Discrimination, Employment Law and Industrial Relations • Media Law • Litigation and Dispute Resolution • Trade Practices and Competition Law • Intellectual Property • Retail Licensing and Distribution.
2017
FRANCHISE D IRE C T O R Y on sale
now!
$9.95 AUD, $11.95 NZD (INC. GST)
Business Franchise Australia and New Zealand 93
l i st i n gs
FRANCHISE
NATURE OF BUSINESS
OUTLETS
ASSOC MEMBER
INITIAL FEE
MIN INVEST
ELECTRICAL TEST AND TAG
50
FCA
$35,000
$51,500 + GST + Vehicle
COMESTIC & AESTHETIC BEAUTY FRANCHISE
53
-
-
$650,000 Turn Key
HEALTHY, FRESH SMOOTHIES & JUICES
259
FCA, NRA, ARA
$41,000 + GST
$280,000 $350,000 + GST
CARPET AND UPHOLSTERY CLEANING
141
International Franchise Association (IFA)
$16,500 + GST
$39,950 + GST
TRADITIONAL ITALIAN COFFEE & OFFERINGS
32
FCA, NRA, ARA
$50,000 + GST
$300,000 $650,000 + GST
RETAIL, POOL & SPA SALES & SERVICE
64
FCA, SPASA
$60,000
$460,000 + working capital
PREMIUM CAFÉ FRANCHISE
13
Franchise Council of Australia
$50,000 + GST Incl. Training
Dependent on Site conditions $300K - $500K
KITCHEN, BATHROOM & BEDROOM REMODELLING
80+ worldwide
FCA & FANZ
From $75,000
$100,000
AMAZING KITCHEN FACELIFTS
11 in NZ
IFA, FANZ, FCA
NZ$75,000
-
HYGIENE PRODUCTS & SERVICES
33 in AUS, 18 in NZ
Franchise Council of Australia
None
$50,000 - $350,000
AUTHENTIC ITALIAN FAMILY FOOD FRANCHISE
21
Franchise Council of Australia
$50,000 + GST
$500,000 $800,000
COURIER SERVICE
650+
FCA & FANZ
From $25,000 + GST
$25,000 + GST
COURIER SERVICE
250+
FCA & FANZ
$10,000
$10,000
TILE & GROUT RESTORATION
-
FCA
-
$39,950 + GST & Vehicle
HAIR & BEAUTY – RETAIL & SERVICE
140
FCA
$66,000 + GST
$390,000 incl. stock, for Greenfield sites
ANTENNA & HOME THEATRE INSTALLATION
150
ADTIA, FCA
$59,000
$59,000
MAINTENANCE & HANDYMAN SERVICES
53 Australia
FCA
$16,000
$21,000
MOBILE POOL SHOP & POOL SERVICE
85
FCA
$66,000
$66,000 + Vehicle
HAIRDRESSING
193 across Australia & NZ
FCA
$18,000 $35,000
$80,000 - $240,000
PO Box 442, Dee Why NSW 2099 Ph: 0421 311738 Email: sales@lavacoffee.com.au Website: www.lavacoffee.com.au
COFFEE FRANCHISE
7
FCA
$20,000
$100,000 - $200,000 Dependent on site conditions
LA PORCHETTA
AUTHENTIC ITALIAN FAMILY FOOD FRANCHISE
60
FCA & FANZ
-
$300,000+
AUSTRALIAN OWNED CHICKEN SPECIALISTS!
139 Standalone Franchises
FCA
$50,000
$350,000
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
AUSTRALIAN SKIN CLINICS 87/89 Upton Street, Bundall QLD 4214 Ph: 0451 370 060 Email: info@ozskin.com Website: www.ozskin.com
BOOST JUICE BARS Level 1, Tower 2, Chadstone Place, 1341 Dandenong Road VIC 3148 Ph: +61 3 9508 4409 Fax: +61 3 9508 4499 Email: boostinfo@retailzoo.com.au Website: www.boostjuice.com.au
CHEM-DRY AUSTRALIA Unit 3, 30 Park Road, Mulgrave NSW 2756 Ph: 02 4587 6300 Fax: 02 4587 8733 Email: info@chemdry.com.au Website: www.chemdry.com.au
CIBO ESPRESSO Level 1, Tower 2, Chadstone Place, 1341 Dandenong Road VIC 3148 Ph: +61 3 9508 4409 Fax: +61 3 9508 4499 Email: ciboinfo@retailzoo.com.au Website: www.cibo.com.au
CLARK RUBBER FRANCHISING PTY LTD Administration Building, 254 Canterbury Road, Bayswater VIC 3153 Ph: 03 8727 9999 or 138090 Fax: 03 9729 3266 Email: dirk.heinert@clarkrubber.com.au Website: www.clarkrubber.com.au/franchise
CREMA ESPRESSO 16B Harvest Court, Southport QLD 4215 Ph: 07 5532 7727 Fax: 07 5526 4896 Email: antony@cremaespresso.com.au Website: www.cremaespresso.com.au
DREAM DOORS AUSTRALIA 26A Alfred Street, Milsons Point, Sydney NSW 2061 Ph: 1800 373 263 Email: cam@dreamdoors.com.au Website: www.dreamdoors.com.au
DREAM DOORS NZ LTD 4 Ryalls Way, Lake Hawea 9382 Ph: 0800 437 326 Email: franchise@dreamdoors.co.nz Website: www.dreamdoorskitchenfranchise.com
ECOMIST Unit 4/28 Barcoo Street, Chatswood NSW 2067 Ph: 02 9417 2211 Email: info@ecomist.com.au Website: www.ecomist.com.au
FASTA PASTA PTY LTD Level 1, 137 The Parade, Norwood SA 5067 Ph: 08 8304 8600 Fax: 08 8332 8389 Email: franchise@fastapasta.com.au Website: www.fastapasta.com.au
FASTWAY COURIERS AUS Level 9, 491 Kent Street, Sydney NSW 2000 Ph: 1300 FASTWAY Fax: 02 9264 4966 Email: fso@fastway.com.au Website: www.fastway.com.au
FASTWAY COURIERS NZ Shed 5, Level 1, Lever Street, Ahuriri, Napier 4110 Ph: 0800 4 FASTWAY Website: www.fastway.co.nz
GROUT PRO AUSTRALIA Ph: 07 5515 0119 Fax: 07 5500 3716 Email: mail@groutpro.com.au Website: www.groutpro.com.au
HAIRHOUSE WAREHOUSE Level 1, 605 Doncaster Road, Doncaster VIC 3108 Ph: 0451 370 060 Fax: 03 9234 2266 Email: franchising@hairhousewarehouse.com.au Website: www.hhwhfranchising.com.au
JIM’S ANTENNAS National Office-25 Rocklea Drive, Port Melbourne VIC 3207 Ph: 131 546 Email: getstarted@jimsantennas.com.au Website: www.jimsantennas.com.au
JIM’S BUILDING MAINTENANCE AUSTRALIA PO Box 5285, Canning Vale South, WA 6155 Ph: 0450 452 484 Email: jims.wa@bigpond.com or theunis@jimsbuildingmaintenance.com.au Website: www.jimsbuildingmaintenance.com.au
JIM’S POOL CARE 48 Edinburgh Road, Mooroolbark VIC 3138 Ph: 131 546 Email: info@jimspoolcare.com.au Website: www.jimspoolcare.com.au
JUST CUTS™ Level 1, 4-6 Kingsway, Cronulla NSW 2230 Ph: 02 9527 5444 Fax: 02 9527 5144 Email: maree@justcuts.com Website: www.justcuts.com
LAVA COFFEE AUSTRALIA
192 Mahoneys Road, Thomastown VIC 3074 Ph: 03 9460 6700 Fax: 03 9460 3099 Email: franchising@laporchetta.com.au Website: www.laporchetta.com.au
LENARD’S CHICKEN Level 1, 225 Montague Road, West End QLD 4101 Ph: 07 3100 7838 Fax: 07 3100 7888 Email: opportunities@lenards.com.au Website: www.franchise.lenards.com.au
94 Business Franchise Australia and New Zealand
FRANCHISE LITTLE KICKERS & LITTLE RUGBY AUSTRALIA 120 Erina St, Gosford, NSW 2250 Ph: 0423 312 550 Email: dkelland@littlekickers.com.au Website: www.littlekickers.com.au, www.littlerugby.com.au
LUXAFLEX WINDOW FASHIONS 338 Victoria Road, Rydalmere NSW 2116 Ph: 02 9638 8000 Fax: 02 9638 8832 Email: mark.futeran@hunterdouglas.com.au Website: www.luxaflex.com.au
NATURE OF BUSINESS
OUTLETS
ASSOC MEMBER
INITIAL FEE
MIN INVEST
CHILDREN’S SPORT & DEVELOPMENT
250 +
FCA
From $15,000
$30,000
WINDOW COVERINGS RETAIL SHOWROOM
77
BMAA
N/A
$90,000 - $120,000
$20,000 $50,000
$20,000
MAGNETITE 142A Victoria Road, Marrickville, NSW 2204 Ph: 02 9565 4070 Fax: 02 9565 4080 Email: info@magnetite.com.au Website: www.magnetite.com.au
OZ BIN CLEANING PO Box 3220, Asquith NSW 2077 Ph: 1300 65 11 65 Fax: 02 8088 4301 Email: enquiries@ozbincleaning.com Website: www.ozbincleaning.com
WINDOW INSULATION
6 franchises AWA, HIA, WFAANZ & 12 dealers
PROFESSIONAL MOBILE BIN CLEANING BUSINESS
14 in Australia (89 worldwide)
WMAA, WCRA, KESBIT
$30,000 + GST
$75,000 + GST
PIZZA & PASTA
3
-
$30,000 + GST
$100,000
AUTHENTIC & FRESH MEXICAN
51
FCA, NRA, ARA
$50,000 + GST
$430,000 $650,000 + GST
MOBILE TOOLS AND EQUIPMENT FRANCHISE
170+
FCA / FANZ
Start-up cost from $50,000
-
VIRTUAL CHIEF FINANCIAL OFFICER
Inaugural round open
Virtual CFO Association
-
Contact us
CHILDREN’S DEVELOPMENT PROGRAM
22 Franchisees
-
From $20,000
$25,000 - $35,000
SAFETY & DECORATING TO ALL INSIDE & OUTSIDE CONCRETE
80
-
$15,000 (Licence Only)
$75 P/W
FISH & CHIPS AND SEAFOOD DINER
3
-
$40,000 + GST
$200,000 (Dependent on Site)
PROVIDES UNIQUE SPOT FACTORING PROGRAMME
100+ worldwide
FCA, IFA, CFA, Irish FA
$34,500
$50,000+
FCA, BFA
$40,000
$200,000 $500,000
PIZZA TEMPTATIONS Shop 2/1 Brygon Creek Drive, Upper Coomera QLD Ph: 0438 008 267 Email: pizzatemptations@gmail.com Website: www.pizzatemptations.com.au
SALSAS MEX FRESCAS! Level 1, Tower 2, Chadstone Place, 1341 Dandenong Road VIC 3148 Ph: +61 3 9508 4409 Fax: +61 3 9508 4499 Email: salsasinfo@retailzoo.com.au Website: www.salsas.com.au
SNAP-ON TOOLS PO Box 6077, Seven Hills NSW 2148 Phone: Aus: 1800 762 766 NZ: 0800 762 766 Email: Sota.franchise@snapon.com Website: www.snapontools.com.au
SEQUEL VCFO 6 Alma Road, St. Kilda VIC 3183 Email: hello@sequelvcfo.com.au Website: www.sequelvcfo.com.au/franchising
SOCCAJOEYS PO BOX 4119, Kogarah Bay NSW 2217 Ph: 1300 781 735 Fax: 02 9150 0837 Email: info@soccajoeys.com Website: www.soccajoeys.com.au
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
STEVE COSTI’S FAMOUS FISH 3/346 Main Street, Mornington VIC 3931 Ph: 03 5976 8614 Email: franchising@famousfish.com.au Website: www.famousfish.com.au
THE INTERFACE FINANCIAL GROUP IFG 50/50 Level 32, 8 Exhibition Street, Melbourne VIC 3000 Ph: 1300 957 900 Email: ifg@interfacefinancial.com Website: www.interfacefinancial.com.au/franchise
THEOBROMA LOUNGES, PAVILIONS, BARS 3A Kia Crt, Preston VIC 3072 Ph: 03 9480 1030 Fax: 03 9480 1035 Email: franchising@theobroma.com.au Website: www.Theobroma.com.au
THERMAWOOD RETRO-FIT DOUBLE GLAZING PO Box 1007, South Melbourne VIC 3205 Ph: 04 555 55 330 Email: info@thermawood.com.au Website: www.thermawood.com.au
TSG FRANCHISE PO Box 559, South Melbourne VIC 3205 Ph: 03 8698 9600 or 1800 777 079 Fax: 03 8698 9655 Email: inquiry@tobaccosg.com.au Website: www.tobaccosg.com
V.I.P. HOME SERVICES FENCING & HOME MAINTENANCE PO Box 686, Mount Martha VIC 3934 Ph: 0402 898 555 Email: joinus@vipfandhm.com.au Website: www.vipfandhm.com.au/join/franchises
CHOCOLATE LOUNGES, 14 worldwide PAVILIONS, BARS
RETRO-FIT DOUBLE GLAZING
2 AUS, 35 NZ
AWA
$40,000
Varies depending if vehicle needed
RETAIL: TOBACCO, GIFTS & ACCESSORIES
400+
Franchise Council of Australia
$1000-$3000
$150,000 - $200,000
FENCING & HOME MAINTENANCE
10 +
MBA, FCA
POA
POA
FRESH FRUIT & VEGETABLES
30
FCA
$75,000+
$50,000 - $100,000
YARRA VALLEY FARMS 10 Thomas Street, Yarraville VIC 3013 Ph: 1 300 73 44 33 Fax: 1 300 73 66 33 Email: brad.keighran@yarravalleyfarms.com.au Website: www.yarravalleyfarms.com.au/franchising
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 95
a-z d i r ecto ry
APPLIANCE TAGGING SERVICES Looking for a franchise with on-going repeat business, large territories and access to an existing client base to get you started? With over 12 years’ experience, ATS are Australiawide specialists in Electrical Testing and Tagging in accordance with AS/NZS 3760:2010. Providing expert technical, admin, business and sales support, access to our National client base and comprehensive on and off-site training, ATS are committed to helping its franchisees grow profitable and successful businesses.
Australian Skin Clinics Established in 1996, Australian Skin Clinics is widely recognised as a leading cosmetic and aesthetic franchise business currently operating in Victoria, New South Wales and Queensland, with imminent presence in other Australian states. Australian Skin Clinics’ treatments suit a wide spectrum of customers both in age and gender as they offer a range of results-driven cosmetic treatments including laser hair removal, cosmetic
Boost Juice Boost Juice is an Australian franchise success story. Founded by adventurer and Australian entrepreneur, Janine Allis, the brand has taken its winning combination of healthy fresh fruit, blended and squeezed into delicious smoothies and juices to open over 440 stores in 13 countries.
No prior electrical experience is required, just a passion for safety and a commitment to growing your business. With low entry fees, minimal franchisee administration, and average returns between $1,000 and $3,000 per week an ATS franchise may be just the opportunity for you. ATS were named FCA Emerging Franchisor of the Year 2011 and the FCA National Franchisee of the Year 2013 (less than 2 staff). For further information please contact Steve Wren, National Sales Manager on 1300 287 669, email steve@ats.com.au or visit www.appliancetaggingservices.com.au
injectables, microdermabrasion, acne management, treatments for rosacea, pigmentation, scarring, sun damage and skin care. It is the mission of Australian Skin Clinics to make clients look and feel fantastic. Australian Skin Clinics has spent over 20 years honing its skills, experience and systems to develop an easily replicable model with the specific purpose of becoming an international franchise network. Franchising Opportunities: Peter Fiasco - 0451 370 060
Franchise partners and staff members want their customers to experience the energy, passion, vibe and love-life ethos that Janine infused in her first store in Adelaide 16 years ago. Boost believe that there is still room for growth and innovation and are looking to expand its fruitpruit with exciting new business opportunities available Australia-wide.
The Boost Juice concept is not only about providing customers with healthy and great tasting products, it’s about creating an entire in-store experience.
CONTACT Ph: (03) 9508 4409 E: boostinfo@retailzoo.com.au W: http://www.boostjuice.com.au/franchising
Chem-Dry Australia
have the drive and determination to work hard and
Chem-Dry is the world’s largest carpet cleaning franchise, and has been helping Australian’s realise their dream of business ownership since 1986.
enjoy their success.
Our unique, hot-carbonated water extraction method, combined with best in-class products and services, and unparalleled training and support, make it impossible to find a better cleaning franchise opportunity. No experience is necessary, as Chem-Dry provide comprehensive training on all aspects of the business. We are looking for franchise partners that
CIBO Espresso Known for being one of Australia’s first premium Italian coffee chains and an institution in South Australia, CIBO Espresso continues to echo the style and passion of Italian life. The founders identified that authentic Italian espresso bar culture was almost non-existent in Australia and opened the first CIBO Espresso in Adelaide’s Rundle Street in 2000. The brands mission is to provide customers with authentic Italian coffee and traditional offerings, served in an ambient, charming atmosphere. CIBO
96 Business Franchise Australia and New Zealand
Our on-going marketing and operational support will ensure that you are able to enjoy the flexibility and lifestyle benefits that owning your own successful business can provide. If you’re ready to make a clean break with your own Chem-Dry franchise, simply fill out the information form on our website, or call our franchise business info line on 1800 243 637.
Espresso also enjoys the same proven growth platform, systems and structures that has seen Boost Juice open over 440 stores in 13 countries. With an exciting new menu and fresh, Italian-inspired store designs, CIBO Espresso has large expansion plans for the future and franchise opportunities available Australia-wide. CONTACT: Ph: (03) 9508 4409 E: ciboinfo@retailzoo.com.au W: http://www.ciboespresso.com.au/
Clark rubber Clark Rubber is a well-known and iconic Australian business, and has been a part of the retailing landscape for 70 years. Clark Rubber commenced franchising in 1995 and since then has grown its store network to more than 60 locations nationwide. In 2006 Clark Rubber was awarded the prestigious ‘Franchisor of the Year’ honour by the Franchise Council of Australia, and today, Clark Rubber is Australia’s leading foam, rubber and pool retailer.
Crema Espresso The Crema Espresso coffee franchise provides premium coffee and light meals with a focus on personalised service. Established on the Gold Coast, Crema brings together community life with a bright sophisticated shop design. Our extensive training and systems are in place to ensure the best support for Franchisees. Crema Espresso provides a business with supervision and consulting readily available. This includes everything from full operation manuals, point
DREAM DOORS australia A dream opportunity Do you dream of working for yourself and earning a stable income? Make it a reality with Dream Doors – one of Australia’s fastest growing franchises. You don’t need any previous experience. It’s easy and affordable to set up your own franchise, backed by comprehensive support and a proven business model with over 14 years of international success.
Clark Rubber offers a unique business proposition which includes business development, site selection, comprehensive training and ongoing marketing and IT support. Clark Rubber has identified several great opportunities for further growth, and is now looking for friendly, customer service-orientated business people to join its network. For further information and to register your interest, visit clarkrubber.com.au/franchise or call 13 80 90 or direct (03) 8727 9999
of sale terminal, uniform package, store design & fit out together with ongoing research and development supported through marketing and advertising. “As coffee lovers we were tired of the same old coffee in dark gloomy cafes. Premium coffee and light meals, like we have in our stores, should be enjoyed in a bright sophisticated café with an atmosphere that creates a laid back, enjoyable meeting place for customers.” Contact: antony@cremaespresso.com.au www.cremaespresso.com.au
it possible for Aussies to achieve a ‘new’ kitchen for a fraction of the usual cost, by replacing doors, drawer fronts and benchtops. The market response has been extremely positive, with some of our franchisees achieved $1.0mil in sales in their first year. Call today and make your dream a reality.
ama zing kitchen facelif ts
For more information contact Cam Hadlow on:
The unique Dream Doors ‘facelift’ concept makes
T: 1 800 373263 E: cam@dreamdoors.com.au W: www.dreamdoors.com.au
DREAM DOORS NEW ZEALAND
recruiting Franchisees for various parts of New Zealand.
Be your own boss
You can achieve the freedom you’ve always dreamed of with a Dream Doors Kitchen Franchise in New Zealand. Whatever your Franchising “Dream” is, this internationally proven Franchise concept has been successfully working in the UK for 16 years with 70+ Franchise outlets, for 9 years in New Zealand with 10 Franchise areas and 22 sold in Australia. The need for our business is incredible, with customers all the time commenting that we saved them $1000’s on their kitchen refurbishment. The business is growing very strongly in Australia and New Zealand. We are currently
ECOMIST AUSTRALIA Established in 1994, Ecomist Australia is a leading provider of premium quality hygiene products and services, specialising in Odour Control and Insect Control. Our core product is an innovative programmable aerosol dispensing system that won an award for the Best New Product from The Aerosol Association of Australia and New Zealand. Our aerosol products are manufactured in New Zealand and we offer a natural insect killer and over 50 fragrance options with French perfume.
The initial franchise fee is based on the population base of your chosen Franchise territory. The Dream Doors Franchise business is ideal for partnerships or husband/wife teams or entrepreneurs looking for a middle-market retail opportunity providing a bespoke service to a growing market. Please contact: Derek Lilly, Managing Director +64272135133
ama zing kitchen facelif ts
del@dreamdoors.co.nz www.dreamdoorskitchens.com
Our ultimate aim is to enhance the environments of our customers through our high quality products and excellent after-sales service. Over the last 23 years we have developed a secure and proven franchising business model. Each Ecomist franchise has its own exclusive territory based on post codes and purchase price is generally 2x the net income of the existing business. If you are interested in finding out more, please contact Gary Vandoros on 02 9417 221, email gary.vandoros@ecomist.com.au or visit www.ecomist.com.au
Business Franchise Australia and New Zealand 97
a-z d i r ecto ry
FASTA PASTA With our authentic Italian background and 30 year success story, Fasta Pasta is now Australia’s largest, independently owned group of ‘fresh pasta’ Italian restaurants. An innovative ever-changing menu, with healthy options and a commitment to outstanding service, have all contributed to Fasta Pasta being voted Roy Morgan’s ‘Quick Service Restaurant of the Year’ in 2012. Loved for our affordable, fresh, family meals in relaxed fully licensed surroundings, this is a great
FASTWAY COURIERS AUSTRALIA
opportunity to be part of our winning national organisation. Extensive initial training and ongoing support is provided. New franchisees undergo 12 weeks training in one of our company restaurants covering areas such as, front of house, kitchen (all areas), necessary bookwork, PPS, and Management skills. For more information on joining a successful franchise call 08 8304 8600, email franchise@fastapasta.com.au, or visit our website, www.fastapasta.com.au
• Low start up costs
• Ongoing business support and training • Exclusive territories • A perpetual franchise agreement with no ongoing fees No prior business experience is needed, just a great attitude and an ability to talk to people. So, if you’re ready for a positive change, we’d love to hear from you. Call 1300 FASTWAY or visit us at www.fastway.com.au
• No weekend work
*Conditions apply
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*
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
GRoutpro Earn between $50 and $200 per hour and get a high return on investment in the booming Home Improvement Industry with LOW SETUP COSTS & little competition. GroutPro specialises in the after-market care of tiles and grout to homeowners and businesses. Offering a range of professional services from stain protection of new tile and grout installations to our flagship grout “colourseal” application which rejuvenates and recolours old grout saving customers time and money without having to re-tile.
*Conditions apply
Specialists use GroutPro’s own branded range of professional quality products including cleaners, sealers, tile Anti-Slip treatments and shower glass restoration and sealer coatings. This is a complete package to get you up and running in your own business fast. Call us today for more information. Contact: Geoff Biddle Phone: 07 5515 0119 Email: mail@groutpro.com.au Website: www.groutpro.com.au
HAIRHOUSE WAREHOUSE
Hairhouse Warehouse has become a household
Hairhouse Warehouse, Australia’s leading hair & beauty brand, has huge plans for the next few years to expand with 20 new stores planned to be opened around the country.
name in Australia, with a proven business model
We are looking for passionate people who want to own their own business, work for themselves and take control of their own destiny.
98 Business Franchise Australia and New Zealand
that continues to evolve and generate strong returns for franchisees. For more information call 0451 370 060, email franchising@hairhousewarehouse.com.au or visit www.hhwhfranchising.com.au.
Jim’s antennas
• No Experience Required
Join Australia’s leading Digital TV & Home Theatre installation specialists.
• Paid On the Road Training
Jim’s Antennas is a division of the Jim’s Group of companies- Australia’s leading home services company with over 3500 Franchisees operating throughout Australia across 38 divisions. With a reputation for excellence in customer service, Jim’s Antennas has an excess of work available across Australia and is looking for self-motivated and enthusiastic people to join the team.
Jim’s building maintenance Always dreamt about your own business or you want to grow your existing business? Then talk to us. Jim’s Building Maintenance part of the Jim’s Franchising Group are looking for persons with trade experience to join our team. If you are motivated and want to success, strive to grow or have your own business and work the hours that suite you then Jim’s Building Maintenance is for you. We offer the following opportunities: 1 Regional Franchisor (Master) Country wide • Great growth potential; • Various streams of income;
JIM’S POOL CARE MOBILE POOL SHOPS Join our team and Australia’s largest franchise system to build a business that suits your goals and lifestyle. Owning a Jim’s mobile pool shop means you can earn money from multiple streams. You charge for your time and charge for the lucrative pool items such as chemicals, pool equipment and pool accessories. This means your income is not limited by how many hours you can work and gives you
JUST CUTS™ australia Join the largest, most successful hairdressing network in the Southern Hemisphere, servicing over 90,000 clients each week! Just Cuts™ offers a fixed franchising fee, with flexible finance options and ongoing business and marketing coaching, guidance and support. Did you know that most Just Cuts™ Franchise Owners are not hairdressers and just over half own more than one salon? Why? Because our proven systems, support and training allows your Stylists to easily run the business for you.
JUST CUTS™ new zealand Join the largest, most successful hairdressing network in the Southern Hemisphere, servicing over 90,000 clients each week! Just Cuts™ offers a fixed franchising fee, with flexible finance options and ongoing business and marketing coaching, guidance and support. Did you know that most Just Cuts™ Franchise Owners are not hairdressers and just over half own more than one salon? Why? Because our proven systems, support and training allows your Stylists to easily run the business for you.
• Work Availability Guarantee • Work Where You Want, When You Want • Franchises Available Across Australia Contact Jim’s Antennas today on 131 546 or getstarted@jimsantennas.com.au to find out more and arrange your free trial day on the road. Alternatively visit our website www.jimsantennas.com.au
• Build up ad great team of Franchisees under you; • Flexible hours • Ongoing Support 2 Franchise Territories: • Fixed monthly franchise fees and no royalties to pay • Work Availability Guarantee • Exclusive Territory • Work anywhere you want without missing out on the work you love to do outside your territory • Growth potential For enquiries please call 0450 452 484 or email theunis@jimsbuildingmaintenance.com.au
scope to grow the business to a level that suits you. Another great bonus is our FLAT franchise fee. Yes, our fee is a flat franchise fee system so you can work hard and earn as much as you like and pay the same at fee with all training and ongoing support included. If you are ready for a change then you need to put us on your list. We have selected opportunities around Australia so give us a call and come for a ride along. For more information ph: 131546 or visit www.jimspoolcare.com.au
Just Cuts™ are also excited to announce our kiosk option! With only 49 sites available Australia wide, you can buy yourself a new lifestyle from just $80,000! Just Cuts™ Franchisees also have exclusive access to our professional retail range made in Europe; JUSTICE Professional™. Contact: Luke Manning 0439 130 499 or maree@justcuts.com Website: justcuts.com/franchising LinkedIn: Just Cuts™ Franchising
Just Cuts™ are also excited to announce our kiosk option! With only 49 sites available Australia wide, you can buy yourself a new lifestyle from just $80,000! Just Cuts™ Franchisees also have exclusive access to our professional retail range made in Europe; JUSTICE Professional™. Contact: Luke Manning 0439 130 499 or maree@justcuts.com Website: justcuts.com/franchising LinkedIn: Just Cuts™ Franchising
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lava coffee Warming to the dream idea of owning a HOT new Lava Coffee franchise? Our awesome Coffee ensures that we have both very happy customers and franchise partners. Our Franchise Partners are able to enjoy a great business, whilst avoiding the high set up costs associated with other leading brands.
placed in appealing locations, our winning formula means our turnkey franchise package and ongoing costs are a fraction of our competitors, with no compromises on quality. Discover the substance behind our brand and enquire about joining a winning team and owning your dream coffee franchise today.
Our concept includes the latest in design innovation. With modern and functional retail kiosks,
Email: sales@lavacoffee.com.au Tel: 0404 755 759 Web: www.lavacoffee.com.au
LA PORCHETTA
New Zealand.
La Porchetta is the largest Italian Restaurant Chain in Australia and New Zealand, and love serving quality Italian food with fresh ingredients.
We are looking for passionate food lovers with a strong work ethic and drive to join our family. You bring the dream and La Porchetta will provide the recipe for success.
The first La Porchetta Restaurant was opened in Melbourne’s Italian hub in 1985, and soon it became renowned as a special place to experience lovingly prepared food. La Porchetta is now looking to expand the network of franchisees throughout Australia and
Lenard’s Chicken Lenard’s Chicken is Australia’s favourite chicken shop and a leader among Australia’s fresh food retailers. Our unique concept of value-adding to fresh chicken is one our competitors have tried hard to imitate with little success, and truly makes us the chicken specialists. This year we have embarked on an exciting new chapter in our almost 30 year history, introducing
LITTLE KICKERS & LITTLE RUGBY AUSTRALIA Double brand opportunity! We offer fun, energetic, healthy, imagination based activities for kids aged 18m to 7 years. With over 40,000 children attending weekly, we pride ourselves on being the leader in preschool sport! Little Kickers & Little Rugby offers a business path for people whom are passionate about working for themselves and creating a FUN environment whilst achieving financial success through our Play Not Push ethos. Franchisees need not have a background in business as
LUXAFLEX® Window Fashions Join the Luxaflex Dealer Network There are over eight million households in Australia – think about how many window furnishings that amounts to! The LUXAFLEX® Window Fashions brand is one of the most widely known and respected window furnishing brands in Australia, having sold its products under the Hunter Douglas Group in Australia for over sixty years – and is currently recruiting entrepreneurs looking for a new venture!
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For more information: T: (03) 9460 6700 E: franchising@laporchetta.com.au W: www.laporchetta.com.au
a new contemporary store design and range of hot products - including premium, free range Infused Roast Chickens. Already attracting rave reviews from longstanding and new customers, Lenard’s Chicken is destined to tantalise the taste buds of Australian consumers for another 30 years! For more information contact Aroha Leigh at opportunities@lenards.com.au or call 1800 068 111.
full training is provided. Being personable and a self-starter is essential. Members of the FCA, the peak body of the country’s franchising sector, since launching, Little Kickers has become the most established and fastest growing preschool program in Australia, replicating the success that the brand has enjoyed around the world. Seeking interest for Sydney & Surrounds, Canberra, Coffs Harbour, Port Macquarie, Northern Territory and Tasmania (Hobart & Launceston). For details on how to join our team contact Dan Kelland on: E: dkelland@littlekickers.com.au M: 0423 312 550
Hunter Douglas offers an unrivalled partnership to meet specific commercial needs, under our LUXAFLEX® Window Fashions Gallery and LUXAFLEX® Window Fashions Showcase Alliance programs. This includes marketing support, manufacture and production of all products and fabrics, as well as local on the ground sales support. No experience is required to enter the Programs as all training is provided, which focuses on enhancing the customer experience and increasing your profitability. For more information on our programs, contact National Sales & Operations Manager, Mark Futeran on 02 9638 8000 or mark.futeran@hunterdouglas.com.au.
MAGNETITE WINDOWS Your window of opportunity is now Windows create harmony between inside and outside spaces, as well as being critical to the aesthetic character of a building. While adding healthy natural light to our lives, windows are the weakest link when it comes to energy and acoustic insulation in buildings. As excessive noise and energy efficiency are prominent issues plaguing home owners, now is the perfect time to become part of an expert team who solve these issues every day. Magnetite franchisees create world class results for existing windows, without the mess and fuss of replacement systems that add cost to the customer and waste to the environment.
oz bin cleaning
Magnetite franchisees specialise in double glazing existing windows, as the core offering in a product range that includes seals, tint and other complementary window treatments. Our solutions provide all the benefits of double glazing without the cost and mess of replacement windows. Join the team that has: • 18+ years technical and practical experience • #1 place in a niche market, with a unique product range • Comprehensive, hands-on training, with ongoing business and technical support • National recognition through membership of key industry bodies • Average franchisee tenure now over 12 years. Learn more about our products and business opportunities at www.magnetite.com.au.
OZ Bin Cleaning is Australia’s largest and fastest growing bin cleaning business. Since cleaning their first bin in October 2001, OZ has revolutionized the bin cleaning market. OZ commenced franchising in 2005 and has a simple proven business model and unique mobile bin cleaning units built locally that clean all sizes of bins. The business is easy to operate, mobile, requires low overheads, with ongoing repeat income and most areas have an existing client base to get you started. You will be provided with comprehensive and ongoing training in all areas, dedicated network committed to your success who are led by the most successful and
experienced Franchisors in the market. Boasting a very impressive customer base you can be assured you will be joining a highly respected team of professionals. If you are hardworking and service focused with a desire to succeed then don’t miss this rare opportunity - enquire about an OZ Bin Cleaning Franchise or Master License. Phone: 1300 65 11 65 Email: franchise@ozbincleaning.com www.ozbincleaning.com NSW & VIC – Mark Campbell QLD – Gary Kellett SA – Ian Lamb WA – Richard Reay
PIZZA TEMPTATIONS
This will enable you to build a reputation for quality and
As a franchisee of Pizza Temptations you will operate your own business. You will receive full training to ensure you are confident operating the business, including all aspects of food preparation. At the core of our business we value: • Delicious Italian food • Exceptional customer service • Value for money • Convenience, Quality, Consistency • Fun Environment • Streamlined Business and Systems.
Salsas Mex Frescas! Satisfy your appetite for success and join one of Australia’s favourite Mexican brands, Salsas Mex Frescas! Australian adventurer and entrepreneur, Janine Allis purchased a four-store Mexican business in 2007. The Salsas network has expanded rapidly since this time and now has over 50 stores Australiawide. The Salsas team is passionate about fresh, flavoursome Mexican food and are looking for others who are hungry to become a Salsas head honcho! 2016 has been an exciting year for Salsas, with the implementation of a new menu and a vibrant
SEQUEL VCFO Sequel VCFO Franchise offers a new career path for finance professionals and an alternative to freelancing by offering greater certainty of income and reduced risk. The Sequel business model is built entirely around what SMEs need. There is no career path to becoming a virtual CFO, yet there is a high demand from SMEs for their skills. The Sequel VCFO Franchise system
service in your franchised territory. Although you will be working for yourself and will be your own boss, we are with you every step of the way and are committed to providing ongoing support and advice to ensure your business is a success. If you are passionate about food, like working with people and are looking for a change then this could be the opportunity you have been looking for! For further information go to www.pizzatemptations.com.au/franchising
new store design rollout. Salsas continues to excite customers with its creative and unique marketing campaigns and product promotions. Salsas franchise partners are privy to the same proven systems, support and processes that has seen Boost Juice open over 440 stores globally to become a market leader. Franchise opportunities available Australia-wide! CONTACT Ph: (03) 9508 4409 E: salsasinfo@retailzoo.com.au W: http://www.salsas.com.au/#own-a-franchise
bridges this gap by offering intensive training in specific areas needed by SMEs. Be one of the first to join our inaugural franchise round. To learn more about our franchise services, visit www.sequelvcfo.com.au/franchising or contact David Boyar by email at hello@sequelvcfo.com.au.
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SNAP-ON TOOLS Snap-on Tools Australia & New Zealand is a mobile franchise operation putting high quality tools and equipment into the hands of mechanics, engineers, and other professional tool users across the country. Snap-on Tools is a subsidiary of Snap-on Incorporated, a leading global innovator, manufacturer of tools, diagnostics and equipment solutions for professional technicians, with an
established network of franchise operations across the globe. After more than 25 years in the Australian market, Snap-on continues to perform, providing robust financial results for its network of over 170 franchisees. Extensive training and ongoing support is provided - no previous mechanical experience required. Snap-on offers an exclusive finance package to assist new franchisees.
SOCCAJOEYS
• Ongoing training to boost your success
Soccajoeys has been developed by a team of childhood development experts to provide soccer programs to children aged 2.5 to 8 years. We deliver our programs to over 27,000 children annually with over 300 classes in operation across the country.
• Access to industry leading childhood development programs
Our mission is to give children the opportunity to develop skills for life through soccer. Transform lives, including yours and become a Soccajoeys Franchisee. We offer a unique opportunity for people to become mentors to the next generation of Australian kids, instilling in them a passion to lead healthy and active lives.
SPRAY PAVE AUSTRALIA Pty Ltd 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!
STEVE COSTI’S FAMOUS FISH Steve Costi and his family have been in the seafood business since 1958, and after years of success have decided to franchise the Famous Fish business. Consider these facts: • Seafood consumption in Australia has increased by 27% per capita since 1997 • Of the 30,000+ take-away venues, generating in excess of $7 billion in retail sales, there are no multiunit, integrated seafood operations • Fish & Chips remains the #1 take-away food item sold by independent take-aways in Australia
• Continuous Head Office support (marketing, operational, financial and systems) • Coaching and mentoring workshops • Trusted Australian brand • Become part of a thriving and energetic network of franchisees • Your own business and exclusive franchise zone • Rewarding career in the childhood development industry • Flexible lifestyle. Call us today on 1300 781 735 or email at info@soccajoeys.com
• Learn a range of new lifelong trades. • 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. • From $7,000 deposit + Support Payment Plan. Established in 1991, Security with Australia’s largest and oldest network. The name of the industry. Phone or email now, for a FREE information pack: FREE CALL 1800 688 888 Website: www.spraypave.com
• Consumption of seafood by Australians under 20, increases at double the rate of meat and dairy, annually Coupled with the strength of the Costi Brand, our franchisees will benefit from our comprehensive training, business, marketing and head office support. Set sail in one of Australia’s most successful retail sectors! For more information regarding the Famous Fish Franchise opportunity, please contact Sal El-Houli: P: 0425 786584 E: franchising@famousfish.com.au W: www.famousfish.com.au
THE INTERFACE FINANCIAL GROUP - IFG 50/50
franchise network in Australia, New Zealand, Canada, the Republic of Ireland, the United Kingdom, the United States, Mexico and South Africa.
The Interface Financial Group franchisees provide shortterm working capital for businesses by purchasing their invoices at a discount. In the current economic climate SMEs need working capital but banks are unwilling or unable to provide it. Many of these businesses are turning to Interface for a solution. Interface has been in the alternative finance market business since 1972. It is the leading alternative funding source for business, and distributes its service through its
The IFG 50/50 franchise offers the opportunity to get started quickly and with a more modest capital base. Why? Because we syndicate all transactions with our franchisees 50/50. Franchisees do the ‘people work’ - we do the ‘paperwork’ – a great combination to achieve an aboveaverage return.
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For more information: ifg@interfacefinancial.com www.interfacefinancial.com.au
Theobroma Lounges, Pavilions, Bars The earliest record of chocolate was over two thousand years ago in the central American rainforest where the tropics is the ideal climate for the cultivation of the plant from which chocolate is derived, the Cacao Tree, Latin name “Theobroma Cacao” or “Food of the Gods” The concept was developed in response to the spiraling demand of high quality chocolate and chocolate beverages with the added enhancement of a full food menu, with some stores even offering a licensed venue.
Our franchise offers: • Innovative and unique concept that includes all of life’s pleasures- chocolate, coffee, food, alcohol and retail • Highest quality chocolate products. • Full training provided. • Professional support team with a range of skills to assist you. With new stores opening in countries across the globe, be part of something special. Contact Ben on +61 437 727 004 E: ben@theobroma.com.au www.theobroma.com.au
Thermawood
Become part of the success story with:
Thermawood Retro-Fit Double Glazing System is designed to retro-fit double glazing into existing wooden windows. Proven systems and processes with the Thermawood Patented drainage system.
• Full Training and ongoing support • Strong industry Growth • Full Advertising & Marketing • Patented product new to the Australian Building industry. We are looking for passionate self-motivated people to join the Thermawood team.
Retro-Fitting fitting double glazing into existing wooden windows allows the home owner to retain the character of their windows, be more energy efficient, reduce energy costs and reduce noise.
Please contact Thermawood Retro-Fit Double Glazing for more information.
Along with installing double glazing Thermawood installers also fit draft/sound seals to all types of windows including double hung windows, casement windows and doors.
Info@thermawood.com.au www.thermawood.com.au 0455 555 330
TSG
ability to offer franchisees an innovative retail strategy.
The TSG story began over 20 years ago as a single store and it was from this moment that we made a commitment to our customers and our franchisees to be best in class within retail.
The customer experience is always at the core of how we do business, and we drive brand loyalty by pairing genuine product with quality, educated customer service.
With instant brand recognition and an elite level of professional operational excellence unlike any other, TSG lead the way in providing innovative franchise solutions and best practice franchise management for our franchisees.
From a consumer point of view our principle is to be #1 for best prices, #1 for providing a full range of genuine brands, #1 for brand knowledge, and #1 for providing friendly service to our customers.
Some key differentiators are our bright vibrant design, clear brand vision, unique retail experience and our
V.I.P. Home Services fencing & home maintenance V.I.P. Home Services - Fencing and Home Maintenance is a newly launched division that is part of the iconic V.I.P. Home Services group. You have a choice of owning a Fencing Franchise or Home Maintenance Franchise or why not do both? Affordable Franchise Opportunities NOW available in Melbourne, Victoria and Perth in Fencing or Home Maintenance. • 8 Weeks Paid Training - Fencing • 4 Weeks Paid Training - Home Maintenance
YARRA VALLEY FARMS Our franchisees service the Hospitality Industry including Restaurants & Cafes with farm fresh fruit & vegetables. Franchisees provide outstanding service to their customers with the help of the Yarra Valley Farms unique computerised systems. Our franchisees benefit from a guaranteed weekly income and direct in territory sales support for the first six months to ensure they get their new business off on the right foot. When our franchisees arrive at our depot in the morning all their orders a picked and pack ready for checking then loading on their truck for the day’s deliveries. We can even provide a relief driver so you can take a holiday!
Call 03 8698 9600 or 1800 777 079 or email inquiry@tobaccosg.com.au. www.tobaccosg.com
• Ongoing coaching and mentoring • Comprehensive Cloud based IT systems • National and local marketing • And much, much more Regional (Master) Opportunities available! Currently we are seeking suitable candidates to take up this excellent but limited opportunity that is available Australia Wide. Husband and wife teams or business partners with integrity, energy and self-motivation should apply! For more information contact Warren Smith: Mobile: 0402 898 555 Email: joinus@vipfandhm.com.au Website: www.vipfandhm.com.au/join
We require franchisees who are customer focused and can deliver outstanding service and support each day. Our franchisees will arrive at our depot and load their truck, then delivery the farm fresh fruit and vegetables to their customers. We require our franchise to continue to maintain and build their customer base within their territory with the help and support of Yarra Valley Farms. We have territories available in Melbourne, Sydney, Gold Coast and the northern rivers of NSW. Contact us to find out more! 1300 73 4433 or email brad.keighran@yarravalleyfarms.com.au
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We take the pressure off your business & manage all your energy needs We negotiate electricity and gas deals for some of the largest franchise groups in Australia. We also provide metering services to help understand and track how you use your energy. Our Target 40 program assists businesses to reduce their reliance on grid power by up to 40%. We offer several Solar options including one with no cost installation, LED lighting, Battery Storage, Power Factor Correction, Voltage Optimisation.
Contact us now on (03) 9872 6869 or admin@energyalliance.net.au to discuss your business’s electricity and gas needs. ENERGYALLIANCE.NET.AU