VOL 18 ISSUE 02 JAN/FEB 2024
FRANCHISES IN YOUR PRICE RANGE STRATEGIES TO DETERMINE THE BEST FRANCHISE
LATEST NEWS IN FRANCHISING
THE MYRIAD OF FRANCHISE BRANDS IN AUSTRALIA TODAY
IDENTIFYING THE INDICATORS OF A ROBUST FRANCHISE SYSTEM BUSINESSS FRAN FRANCHISE NCHISE M MAGAZINE AGAZINE NEE 27
Let the team at Franchise Ready help develop your franchise system Franchise Ready is Australia’s fastest growing, results focused franchise development consultancy. We have worked with some of the most famous franchise brands on the planet and we have successfully launched and supported over 150 brands into franchising. Launch your business into franchising locally or internationally. Whether you’re curious to explore the possibilities or you’re ready to go now – talk to the experts in franchising to get the right advice. We know what it takes to succeed and can assist in navigating the challenges. We can help you understand what’s possible, provide direction and expert recommendations, and establish a robust game plan for expansion. t 'FBTJCJMJUZ "TTFTTNFOU t 'JOBODJBM .PEFMMJOH 4USBUFHZ 1MBOOJOH t 5SBJOJOH 0QFSBUJPOBM %PDVNFOUBUJPO t 'SBODIJTFF 3FDSVJUNFOU t 5FSSJUPSZ .BQQJOH 4JUF *EFOUJmDBUJPO t "TTJTUBODF XJUI -FHBM %PDVNFOUBUJPO .VDI .PSF
Over 300 Years of Franchising Experience Franchise Ready has been operating since January 2011, every team member has been working in the franchise sector and collectively we have over 300 years of Franchising experience operating in every function and level within a franchise organisation and across more than 30 franchise systems, this coupled with the work we have done in developing over 150 franchise brands in Australia and New Zealand gives Franchise Ready more franchise experience than any other franchise consultancy brand in Australia. Servicing Established Franchisors We help emerging franchisors with everything they need but we also assist established franchisors take their business to the next level through our range of Established franchisor services: t *OUFSOBUJPOBM FYQBOTJPO QSPHSBN GPS .BUVSF CSBOET t $PNQMFUJOH B DPNQSFIFOTJWF CVTJOFTT SFWJFX t "DDFTT UP B DPNQSFIFOTJWF 'SBODIJTF .BOBHFNFOU System, that: - Stores digital Operational resources (operations manual, Training resources)
Full Service Franchise Ready is the only full-service Franchise consultancy business in Australia and has launched and supported more brands than any other franchise consulting business in Australia in the past 12 months.
- Enables the franchisor to complete compliance audits.
Reach out and let us share with you how we can help your business grow to the next level.
- A full learning management system (LMS) t " SFDSVJUNFOU GVODUJPO UP SFDSVJU GSBODIJTFFT BOE LFZ executives.
info@franchiseready.com.au www.franchiseready.com.au
- Creates financial and operational scorecards. - A process builder to develop additional and customised processes.
t " #VTJOFTT CSPLJOH CVTJOFTT UP TFMM HPJOH DPODFSOT (franchisees and corporate stores) t 5FSSJUPSZ NBQQJOH BOE 'SBODIJTF EFWFMPQNFOU planning
CONTE NTS
FR ANCHISES IN YOUR PRICE R ANGE In Every Issue 30 What’s New! Announcements from the Industry
Focus 34 Jamaica Blue: Jamaica Blue’s Winning Franchise Formula 50 Muffin Break: How Muffin Break Became an Iconic Bakery Café Franchise
Franchises in Your Price Range
32
36 Top Picks: CoffeeTreat DannyBoys Grayson’s Gutter Guard Hydraulink Pack & Send Petbarn Mobile Dog Wash
Profile 42 KitSet Assembly: Putting it all Together
Have Your Say 48 Stagecoach: Identifying the Indicators of a Robust Franchise System
34
50 Franchisor in Depth
38 G.J. Gardner Homes: G.J. Gardner Homes Builds Successful Franchise Brand in the USA
Franchisee in Action 44 Hydraulink: Hydraulink Awards Recognise “Best Under Pressure” Talent
Expert Advice 32 Phil Chaplin: Finance and Your Franchise – How do Lenders Decide What I can Afford? 40 Robert Toth: Affordable Franchises
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46 Brian and Prue Keen: The Myriad of Franchise Brands in Australia Today BUSINESS FRANCHISE MAGAZINE 29
FRANCHISING FEATURE
Nostalgic Brand Refresh — THE CHEESECAKE SHOP Bakes Up Modern New Look! Australia’s favourite cake experts, The Cheesecake Shop, have lifted the lid on a new, modernised brand. Synonymous with great-tasting cakes and desserts that are enjoyed by hundreds of thousands of loyal customers each year, The Cheesecake Shop is on a mission to connect with even more Australians through a sweet brand rejuvenation. A bold new logo, a major TV commercial, new store fit-outs, broader cultural relevance, refreshed values and a new tagline are all being served up under the new look and feel. The Cheesecake Shop announced the exciting rebrand was just one of many plans in the pipeline to accelerate the Company’s growth and development, following extensive customer research. CEO of The Cheesecake Shop Scott Bush said it was exciting to join franchisees on this brand refresh journey and witness the start of a transformative new era for a company rich in history and nostalgia. “We are so proud to launch The Cheesecake Shop’s new brand identity and we know our customers will love the evolution and the fresh look and feel,”
“We remain committed to delivering cakes, desserts and sweet treats for all of life’s special moments and for even day-to-day indulgence. The brand refresh celebrates our most prized ingredients of all – our
customers, franchisees and team members – and reminds us why we do what we do.” Mr Bush said. For more information, visit www.cheesecakeshop.com.au
FREEDOM Warrawong Celebrates 30 Years of Making Beautiful Things for the Home Available to Everyone Australian furniture and homewares retailer, Freedom is thrilled to announce the 30th anniversary of its esteemed franchisee, Ian Harrison, who has been an integral part of the Freedom family since opening the Warrawong store in 1993. Ian’s remarkable journey spans nearly three-quarters of Freedom’s total time in business, marking him as a true pioneer in the Illawarra region. Identifying a gap in the market decades ago, Ian established the Warrawong store long before retail competitors emerged. Today, his foresight is evident with the recent influx of competitors such as Amart, Beacon Lighting, Pillow Talk, AutoBarn, JB-Hifi, and more, all following in the footsteps of Ian’s visionary leadership and foresight for the growing region. Ian Harrison’s legacy is a testament to his commitment to the local community, transforming Freedom Warrawong into a destination 30 BUSINESS FRANCHISE MAGAZINE
for homemakers in the Illawarra. This anniversary celebration is not just a reflection on the past 30 years but also a nod to the bright future ahead.
Sunshine Coast Expansion Marks 75th Store for ZARRAFFA’S
be the very first store co-owned by James after an impressive 23-years managing and working across several roles within Zarraffa’s - from a Junior Barista on the Gold Coast and Brisbane, through to Area Manager of Ben and Terry’s stores. “It’s been an incredible trajectory for James and so rewarding to see one of our longestserving employees finally realise his dream of store ownership,” said Zarraffa’s CEO, Marnie Sheldon. “A huge part of our company success is the consistent reinvestment of our franchisees into new stores, and now we get to celebrate another level of achievement by James who brings a wealth of experience to the table.”
Australia’s leading specialty coffee retailer, Zarraffa’s Coffee, has opened its 75th store overall - and the eighth store within the
periods and inside or outside seating for up to 44 people.
opened its doors, offering a drive thru for
The new location will be operated by Terry Bambury and James Burgess-Liehr, along with seasoned franchisee, Ben Old – who collectively have over 60 years of experience with the Zarraffa’s brand.
quick and convenient service during busy
The Zarraffa’s Coffee Nambour store will
Sunshine Coast region - with a new drive thru store in Nambour. Zarraffa’s Coffee Nambour has officially
James said that transitioning to a Zarraffa’s Coffee store owner had been a long time coming and that after over two decades with Zarraffa’s it was the perfect time to do it for himself. “Zarraffa’s is very much a family business and offers the kind of support that you would expect from family too, they are always at the end of the phone or right with you when needed, day or night.” For more information about Zarraffa’s Coffee visit www.zarraffas.com
Embracing Sweet Success: Award-Winning Streak for BASKIN-ROBBINS AUSTRALIA Anchored in Digital Innovation Baskin-Robbins Australia has been recognised for its outstanding achievements in marketing and digital innovation with a series of prestigious awards. The latest accolade comes from the QSR Media Awards 2023, where the brand secured the Best Digital Initiative award for its ‘Enter The Flavour-Verse’ digital experience, a collaboration with Sony Pictures to launch Across the Spider-Verse Part I. This marks the company’s second consecutive win in this category after taking out the same award in 2022, further highlighting its consistency in digital marketing innovation. Through the introduction of fresh, innovative product ranges and collaborations with the brand’s creative and digital agency Type + Pixel, Baskin-Robbins Australia’s marketing activity has directly engaged over a million fans and contributed to a 14.2% increase in revenue for the company.
Type + Pixel Founder, Darren Walls, said: “Our partnership with Baskin-Robbins Australia has always involved using new technology to surprise and delight fans - and Enter the Flavour-Verse is no exception. Utilising custom 3D and AR tech, our experience placed fans right inside the action, delivering sales growth for our client and helping to
make Across the Spider-Verse Part I the biggest animated hit in Sony Pictures’ history. Discover more about the ‘Enter The Flavour-Verse’ digital experience at entertheflavourverse.com.au or view the case study. For more information on Baskin-Robbins Australia, visit baskinrobbins.com.au BUSINESS FRANCHISE MAGAZINE 31
FRANCHISING FEATURE
EXPERT ADVICE: Phil Chaplin | CEO | CFI Finance Group
FINANCE AND YOUR FRANCHISE HOW DO LENDERS DECIDE WHAT I CAN AFFORD? It’s rare these days that anyone would simply pay cash to buy their new business. Like many long term investments the upfront cost is simply out of reach for most people, and even when it’s not there can be some very sound reasons to retain a good portion of your capital, whether it’s to pursue other investments, fund business growth, or simply as ‘rainy day’ money. This usually means that when you end up asking yourself ‘Is this franchise in my price range?’, you’re not going to be the only one. Your lender is going to be asking very much the same thing (although they may be coming at it from a slightly different angle). For a borrower it probably seems like the simplest of questions; ‘How much will you lend me?’ but for a lender that’s actually quite tricky, there are just so many variables. Instead, most lenders will say; ‘Show me how much you need, and what for, and I’ll tell you yes or no’. So how do we solve the impasse? Well, whilst there are a lot of things a lender might consider when making a lending decision, there’s two key questions that will cut to the heart of their views on affordability, and ultimately their view as to whether or not you can afford a particular franchise purchase. 1. How much skin do they have in the game? and 2. Does it service? So, what is your bank or finance company looking for? Skin in the game is about how much of your own money you’re contributing to the setup or purchase of the business. If it were something as a simple as a car being financed, it would be your deposit or trade in value. Using some of your own funds isn’t just about reducing the loan amount required. For a lender there’s a very significant difference between a $100,000 loan to someone that has saved up and is putting in $50,000 of their own money, and the same sized loan to a borrower that only has $10,000 to contribute. Regardless of the size loan we’re talking about, most lenders will want to see a borrower put in at least 20% and quite possibly more, depending on what the borrowed funds will be used for. There are some exceptions of course. If you’re asset rich but cash poor a lender may consider a relatively large loan amount without a large contribution from you, likewise if the borrowed funds are going to be used for something that offers a lot of security (such as a vehicle or quality equipment). As a general
32 BUSINESS FRANCHISE MAGAZINE
“
For a borrower it probably seems like the simplest of questions; ‘How much will you lend me?’ but for a lender that’s actually quite tricky, there are just so many variables.
”
rule though, your lender is going to want to see that you’re taking some genuine risk with your own money, not just theirs. Servicing is our other great affordability measure. From a financier’s perspective the question of whether or not someone can afford a particular franchise (or anything at all) is usually wrapped up in what lenders broadly refer to as ‘servicing’. At any given time of day, in banks and finance companies across the country, grey haired and bespeckled risk assessor types can be found shuffling through page after page of carefully prepared loan applications, ignoring almost everything written upon each page, before looking up and asking THE question “Does it service?” I jest of course, we stopped using paper long ago, we peer over computer screens these days and some of us are much less ‘banky’ than others, but in some form the question “Can they afford to pay all their bills and repay our loan?” is definitely still being asked.
Phil Chaplin the Chief Executive Officer of the CFI Finance Group, a specialist finance company servicing the franchise, accommodation, and fitness sectors as well as small businesses more broadly across Australia and New Zealand. Phil has over 20 years’ experience in providing finance to businesses across Australia and New Zealand and has managed finance companies in the private and banking sectors, he is a former chair of the Equipment Finance division of AFIA.
This might seem like the simplest of calculations, income expenses = profit, right? Sure, but there are lot of what if ’s and maybe’s that go into that question. Firstly, for a new business almost every component of your financial forecast will be an assumption, your best guess as to what things will cost. You might not have chosen premises yet, so rent will be an assumption. You might not have hired staff yet, what if you have to pay more to get the people you need? What about income? Hopefully you know how many customers you need, or how many sales you’ll have to make, and what it will cost you, but all of it is still your best guess. Your lender might test your assumptions against other similar businesses, maybe even against other franchises in the network, but your future as a franchise owner is still somewhat unknown. Generally, your lender is going to want to see that your business will generate enough income to pay its bills (including taxes) and have enough left over to make your loan repayments. Remember also that if you’re going to be working in the business the lender is probably going to want to see that you can draw a living wage (whether through profits or as an employee).
Tip: If you’re retaining other external sources of income don’t forget to highlight this when applying for finance. Various tools are available to help you understand how all these pieces fit together, and to make sense of them for your own purposes (as well as presenting them to your lender when you’re ready). A good financial forecast template is a great place to start (we provide one to download from our website under “Customer Resources”) or your prospective franchisor may have their own, tailored to their particular network. Another great tool is what we refer to as a Cost & Funding Scenario, which sets out all the different types of expenses that are likely to be incurred in setting up a business, and more importantly where all the money will come from to pay for them. If I can leave you with some parting wisdom though, cliché as it might sound, I’d say this. While all the tools, forecasts, and rules of thumb can give you some idea of whether or not you can afford a franchise, it’s your passion, energy, and ‘fit’ that will make the difference between survive and thrive. Start by looking for the right franchise for you, then come talk to one of us bespectacled banky types about what it will take to bring it all together. You might be pleasantly surprised. Y
BUSINESS FRANCHISE MAGAZINE 33
FRANCHISING FEATURE
FOCUS FEATURE: Jamaica Blue
JAMAICA BLUE’S WINNING FRANCHISE FORMULA Aussies love brunch – almost as much as they love great coffee!
Creating Oases of Quality Jamaica Blue’s first store opened in Miranda, Sydney in 1991. Since then, the brand has enjoyed steady and sustainable growth. With over 100 stores in Australia, Jamaica Blue has now expanded globally across the UK, Singapore, Malaysia, the UAE and China. The brand has also had great success in targeted locations with concentrated foot traffic. For example, there are now 30 sites in hospitals. 2024 is shaping up to be another exciting year on the expansion front, with new Jamaica Blue stores planned across more hospitals, train stations and airports.
Given this, it’s no wonder that Jamaica Blue has been a smash hit across the country, with its winning formula of the finest coffee and classic dishes like Eggs Benedict and Steak Sandwiches. All made with the freshest local ingredients available! 34 BUSINESS FRANCHISE MAGAZINE
Perfecting the Perfect Cup Named after the Jamaica Blue Mountains, widely regarded as the home of the best coffee in the world, exceptional coffee is at the heart of Jamaica Blue. As Australians are highly discerning coffee consumers, consistently great coffee is an essential for success.
One owner actually began as a lawyer working on the legal documents for a new Jamaica Blue franchise. After seeing the potential and recognising the quality of the brand, he moved away from law and became a Jamaica Blue owner! If you’ve been dreaming of your own café, the level of support offered by Jamaica Blue can help you make it a reality. The hospitality knowledge, guidance and support imparted means that anyone wanting to purchase a franchise has the tools to succeed. Jamaica Blue’s support and Head Office team will have you up to scratch in no time, ensuring your time is spent building relationships within your team and the community, not in the office working on payroll. Franchisees are able to customise their menu from hundreds of approved recipes. As franchisees are part of the communities they serve, they are best placed to choose popular menu options and create a tailored experience for their customers.
Equipping Franchisees for Success Jamaica Blue franchisees come from all walks of life; some with hospitality experience, some without. Owned by Foodco, one of Australia’s top franchise groups, Jamaica Blue offers all new franchisees comprehensive training to ensure they can hit the ground running.
Operations Team members will be on site to assist with new menu items, procedures and training. Regularly updated online training is also accessible by franchisees and their team members.
Keeping it Fresh With growth and longevity comes change and one of the exciting changes that Jamaica Blue is looking forward to this year is refreshing and upgrading their store layout. Keep an eye out to see the fresh new look in a Jamaica Blue store near you! Like to escape with Jamaica Blue? Go to www.jamaicabluefranchise.com.au to find out more.
With three unique blends to choose from, customers are spoilt for choice at Jamaica Blue. One of their blends comes from Wallenford Estate, some of the most sought after coffee beans in the world. The franchise also offers a special ‘Single Origin’ every quarter, which is sourced from a region specifically chosen for the season we are in. This is an important detail that sets Jamaica Blue apart from other café franchises. By providing higher quality and choice than other chains, the brand ensures customers always come back!
Fresh, Seasonal Menus Jamaica Blue is also known for great-tasting, classic dishes. Reliably delicious menu options and bespoke coffee is a formula that is a sure fire hit with customers. While guidance is given, franchisees also have autonomy. They are able to choose their store’s menu to best suit their location, what produce is in season and their customers’ favourites.
BUSINESS FRANCHISE MAGAZINE 35
FRANCHISE FRANCHISESLISTINGS IN YOUR PRICE RANGE
FEATURED Franchise
COFFEETREAT COFFEETREAT is a unique Hole In Wall Takeaway Cafe and is owned and operated by the Proprietor, Chelsea Hayward. The business commenced trading in January 2016 in Country Seaside Warrnambool Victoria. It is a family owned business providing it’s customers “A Hole In Wall Coffee Experience.” We specialize in the sales of Coffee, Iced Beverages, Toasties, Melts, Cakes & Pastries. “At COFFEETREAT our mission is to deliver an exceptional takeaway coffee experience to our customers, one cup at a time.” We make no apology for our aim - to offer quality products combined with an unforgettable service experience to each and every customer who visits our stores in Australia and beyond. Our aim is to become the preferred destination for takeaway coffee lovers worldwide, known for our outstanding quality, exceptional service, and genuine commitment to making a positive impact on coffee communities and the environment.
For more information contact Chelsea Hayward at: enquiries@coffeetreat.com.au Or call Nick @ Franchise Central on: 1300 558 278 36 BUSINESS FRANCHISE MAGAZINE
FEATURED Franchise
DANNYBOYS DannyBoys rocking the franchise world! We care about our customers and always give a warm welcome to everyone who enters our stores. Service with a smile goes a long way and our customers know they are in good hands when they visit for their hearty lunch! Along with our incredible menu, excellent customer service is what puts DannyBoys at the top of everyone’s lunch destination. Freshly baked bread, top quality ingredients and mouth-watering fillings. Every single product on the menu has been carefully created by Danny himself. As an experienced chef, Danny knows the perfect ingredients for a sandwich that rocks! Another popular lunchtime choice is DannyBoy’s variety of homemade delicious soups as well as tasty cupcakes for that something sweet! Benefits of owning a DannyBoys Franchise: t 3FDJQF GPS TVDDFTT 5SBJOJOH LOPXMFEHF BOE Danny’s secrets to success will be shared with every franchise partner t 0OHPJOH 4VQQPSU UISPVHI UIF XIPMF QSPDFTT including your opening day providing help and advice t .VMUJQMF SFWFOVF TUSFBNT t #SFBLGBTU MVODI BOE EJOOFS NFOVT QMVT FYDMVTJWF catering options for meetings, parties and events t 0OMJOF GPPE EFMJWFSZ JT JO IJHI EFNBOE QBSUOFSFE with Uber Eats and Menu Log t 2VBMJUZ JOHSFEJFOUT BOE TMPX GFSNFOUBUJPO UP produce a unique and distinctive flavour. t "MM CSFBE JT NBEF BOE CBLFE JO TUPSF UISPVHIPVU the day. t 1SPWFO CVTJOFTT NPEFM XIJDI IBT CFFO USJFE BOE tested with the current DannyBoys stores which are a growing success- you will be guided step-bystep to ensure they are on the road to success. t 1SPmUBCMF TVTUBJOBCMF BOE DPTU FõFDUJWF solutions t 4JUF TFMFDUJPO BOE MFBTF OFHPUJBUJPO
FEATURED Franchise
GRAYSON’S GUTTER GUARD Grayson’s Gutter Guard is a leading installer and supplier of gutter guards in Victoria. With multiple locations in Melbourne, Wallan, Geelong and our Support Office in Box Hill North. With a Grayson’s franchise you will benefit from our comprehensive training and support in how to run a gutter guard business. Learn how to install the exclusive product Triple-G®. Other benefits include:t #F B MJDFOTFE JOTUBMMFS PG PVS JDPOJD gutter guard brands, including Leafbusters® t &BTZ UP SFNFNCFS DFOUSBM (655&3 phone line t %FEJDBUFE TVQQMZ PG UIF WFSZ CFTU gutter guard products t ,OPXMFEHF BOE USBJOJOH JO UIF SJHIU equipment and know-how! t 1BSUOFSFE XJUI "VTUSBMJB T CFTU HVUUFS guard suppliers t 'VMMZ DVTUPN CVJMU WFIJDMFT EFTJHOFE CZ Gutter Guard Fitters, for Gutter Guard Fitters! t $PNQMFUF USBJOJOH JO TBGFUZ administration, quoting, advertising and ongoing support when needed. t "O FTUBCMJTIFE CSBOE XJUI T PG happy customers!
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For more information Email: franchise@dannyboys.com.au Web: https://www.firstfranchise.com.au/ franchise/124/dannyboys-rockstarsandwich-bar/
Contact us now! Call: 1800 Gutter (1800 488 837) Email: admin@graysons.com.au Web: www.graysonsgutterguard.com.au/ franchises/
FRANCHISE LISTINGS
FEATURED Franchise
FEATURED Franchise
HYDRAULINK PTY LTD
PACK & SEND
Our Hydraulink Sales Service Technician Franchisees are high in demand to provide a mobile hydraulic hose and fittings breakdown and repair service to industries like:
We are among Australia’s leading longstanding franchise systems, offering an exceptional opportunity for entrepreneurs seeking a business venture within a reasonable investment range. Now with an Initial Franchise Fee Payment Plan (IFFPP) reducing the initial investment by $55,000*, PACK & SEND combines affordability with a proven business model designed for success.
t $JWJM $POUSBDUPST FOHBHFE JO CVJMEJOH construction, road and rail projects t 8BTUF BOE EFNPMJUJPO DPOUSBDUPST t 5SBOTQPSU USVDL BOE BVUPNPUJWF SFQBJST t 8BSFIPVTJOH NBUFSJBM IBOEMJOH BOE logistics services t .BSJOF BHSJDVMUVSF GBSNJOH BOE GPSFTUSZ sector t .JOJOH BOE FYDBWBUJPO t .JMJUBSZ BOE EFGFODF t .BOVGBDUVSJOH BOE JOEVTUSJBM processing The Benefits and advantages of the mobile Hydraulink Sales Service Technician Franchise include: t -PX PQFSBUJOH DPTUT CZ BWPJEJOH commercial leases and outgoings – Business t "ENJOJTUSBUJPO TVQQPSU JOWPJDJOH collections and quoting systems – Technical sales training development with support from an area manager and supportive network of t )PTF BOE mUUJOHT TQFDJBMJTUT o #SBOEFE product to meet customer needs – A designated marketing materials to build your business. To be your own boss, and join our team contact Hydraulink today. We have franchise opportunities for successful candidates all round Australia.
The growing demands for logistics and shipping services present immense opportunities for expanding the PACK & SEND Australian network. As businesses increasingly rely on efficient supply chains, PACK & SEND’s diverse service offerings, including international shipping, freight solutions, bespoke packing options, and e-commerce logistics, align perfectly with the evolving needs of the market. This versatility not only broadens the Franchise Partner’s potential customer base but also positions them as a one-stop-shop for shipping and logistics requirements. What sets PACK & SEND apart is its comprehensive support system for Franchise Partners. From the detailed Induction training program to the comprehensive B2B sales training and resources provided to empower Franchise Partners. The program equips Franchise Partners with strategic insights, effective communication techniques, and a robust toolkit for successful B2B sales. With a focus on building lasting client relationships, PACK & SEND ensures Franchise Partners have the skills and resources needed to excel in the competitive B2B marketplace. The awardwinning 5-star rated business model and established brand recognition contribute to making it an attractive proposition for those entering business ownership.
PETBARN MOBILE DOGWASH Beginning 30 years ago as a small enterprise known as Flea Stoppers, the group then became City Farmers Dogwash and has now rebranded to Petbarn Mobile Dogwash. It is a part of Greencross Ltd (City Farmers, Petbarn & Greencross Vets).Greencross Ltd comprises 400+specialty large format pet Stores (City Farmers & Petbarn) throughout Australia, a mobile network of over 20 Dogwash vans as well as 180+ Veterinary clinics and an online store. Our Franchisees love what they do and are so passionate about the part they play in a dogs’ health and wellbeing. But with more than 6 million pet dogs in Australia, we’ve got plenty of work to do and are always looking for Franchisees with big smiles and big hearts to come on board and enjoy the ride. t /P FYQFSJFODF OFDFTTBSZ t 'VMM USBJOJOH TVQQPSU t 4USPOH CSBOE SFDPHOJUJPO t &YDMVTJWF .BSLFUJOH ;POF t /P TFQBSBUF GFF QFS MFBE t "MM JODMVTJWF TUBSU VQ QBDLBHF t 8PSL PVUEPPST CF ZPVS PXO CPTT
* Conditions apply – to approved candidates only
For more information contact Luke Martin at: For more information visit: www.hydraulink.com.au www.joinhydraulink.com
FEATURED Franchise
Phone: 0447 711 353 Email: luke.martin@packsend.com.au Web: www.packsend.com.au
For more information Contact Scott McIntosh on: Phone: 0402 902 620 Web: www.petbarn.com.au/mobiledogwash BUSINESS FRANCHISE MAGAZINE 37
FRANCHISING FEATURE
FRANCHISOR IN DEPTH: G.J. Gardner Homes
G.J. GARDNER HOMES BUILDS SUCCESSFUL FRANCHISE BRAND IN THE USA
Queensland-based building group G.J. Gardner Homes is a household name in Australia, and it is fast-becoming one in the USA too just three years after a major push into the world’s largest economy. Since home builder Greg J. Gardner started the business in Queensland in 1983, G.J. Gardner has built over 55,000 quality and customised homes for families across the globe. As a franchise organisation, G.J. Gardner is Australia’s most successful home building network, with 149 franchises now operating across Australia, the United States, and New Zealand. The business was recently ranked 53rd world-wide for franchise systems with locations in the USA – moving up from last year’s ranking of 68. The list was released in the Franchise Times, which features an exclusive annual ranking of the top 400 largest franchise systems by global systemwide sales. As of 2023, 20 G.J. Gardner franchise offices are located in the US and have built over 2000 homes, directly supported by 11 staff in the Franchisor Team, mostly based out of San Antonio, Texas. 38 BUSINESS FRANCHISE MAGAZINE
“The decision to enter the US market was driven by the recognition of the opportunities in the American housing market. We knew with the right people in place, the US had great potential.”, G.J. Gardner CEO Trent Gardner said. The company made its first foray into the US market in 2005 with a Californian franchise, however, the country’s housing sector took a major hit just three years later in the Global Financial Crisis. “This was tough initially, however in recent years we have seen areas of the country where the housing market is booming.” Mr (Trent) Gardner hails from the Sunshine Coast and has been G.J. Gardner’s CEO since October 2020. To properly push into the US three years ago, he decided to relocate to San Antonio, Texas, and travels regularly back to Australia and New Zealand. “Three years ago, we decided to make a massive push into the American market, and we are now operating in California, Colorado, Texas, Florida, and Indiana, with further expansion coming in Missouri and South Carolina in 2024.” Before expanding internationally, G.J. Gardner Homes considered factors such as cultural differences, regulatory requirements, and market dynamics.
Trent Gardner G.J. Gardner CEO
According to Mr Gardner adapting the business model, including its systems and processes, to suit local preferences and complying with local regulations were crucial aspects of successful international expansion. “The US has a much larger and more dispersed population than Australia so there are many different regional styles across the country. In the US, you may find larger master-planned communities and suburban sprawl, while Australia might have a mix of urban and suburban developments,” Mr Gardner said.
homes are generally larger “ USthan homes in Australia with different bathroom and kitchen styles, however the industry runs similarly to Australia, and our franchise model suits US builders who want to expand their business with our systems, sales network and building designs.
”
“US homes are generally larger than homes in Australia with different bathroom and kitchen styles, however the industry runs similarly to Australia, and our franchise model suits US builders who want to expand their business with our systems, sales network and building designs. “Some of the key challenges we faced with expansion was building brand recognition, understanding local customer preferences as well as understanding the home builder market in the USA – but we overcame this by building a strong network of local franchise partners and by focussing on providing a joyful home building experience, ‘the G.J. Way’, in a market where that is uncommon.” Mr Gardner said underpinning the brand’s growth in the US was the decision about whom to partner with. “We look for Franchise Owners who are looking to take their business to the next level – who have passion, the right values, and a drive to succeed. Their commitment to quality and customer service is paramount.” As part of the expansion into the American market, Mr Gardner said it was important
the family-builder did not lose the “local” touches that had made the business successful in Australia. “Our US Franchise Owners, as in Australia and New Zealand, are local builders in their respective communities,” Mr Gardner said. “To maintain control of the build and service quality, the brand and the “local/family owned” aspect of our business, we have
multiple touchpoints and controls in place with our Franchise Owners and their teams. “These controls include a rigorous franchise candidate selection process, robust franchise management systems, regular communication with our Franchise Owners, continuous training on best practices, continuous development of our enterprise software, and other quality control measures.” As of the end of 2023, G.J. Gardner franchises include: 20 in the US, 31 in New Zealand, and 88 in Australia (30 in NSW/ ACT, 21 in QLD/NT, 26 in VIC/TAS, and 11 in SA). The brand sells about $1.7Bn in homes across these markets. “All three countries are expected to experience relatively stable market conditions over the next two or three years and we expect to continue to grow our share through the expansion of our franchise network,” Mr Gardner said. BUSINESS FRANCHISE MAGAZINE 39
FRANCHISING FEATURE
EXPERT ADVICE: Robert Toth | Special Counsel | Sanicki Lawyers
AFFORDABLE FRANCHISES There is a myriad of low-cost franchises that offer good opportunities for someone who has been made redundant or looking for a different lifestyle. The big-name franchises we all know and see, can involve an investment of anywhere between $600,000 and up to $2 million which requires huge financial commitment. As they say the bigger the financial commitment, the bigger the risk but also potentially the bigger the reward. Many of the low-cost franchises are mobile franchises in all sorts of sectors such as lawn mowing, home maintenance, car repairs, house cleaning, courier services. The attraction of a mobile franchise may also be the lure of driving around, wind in your hair, dog in the back, coffee in hand heading off to the next appointment rather than being tied to a retail shop or office. Another attraction may be that you are free from paying exorbitant fixed overheads such as rent, and staff costs. So low cost and or mobile franchises can be a great option! Following Covid and changed work expectations we have seen a “franchise frenzy” across the whole franchise sector in the low-cost franchise models.
Benefits of a low cost /mobile franchise There are a great many benefits to taking up a low cost /mobile franchise as opposed to a 40 BUSINESS FRANCHISE MAGAZINE
Robert Toth is Special Counsel and Franchise Specialist at Sanicki Lawyers with over 35 years of experience in franchise, licensing and distribution law. Robert is also an Accredited Commercial Law Specialist and regularly publishes articles on franchising in Australia and overseas journals and acts for a number of overseas, local and master franchisors and acts in dispute resolution and mediations. Contact Robert@sanickilawyers.com.au or even call him on mobile 0412 67 37 57 www.sanickilawyers.com.au
fixed site franchise which includes: t "WPJEJOH UIF IJHI VQ GSPOU DPTUT PG B SFUBJM franchise such as occupancy costs and security deposits -rent and rates; t 6TVBMMZ POMZ NPEFTU TUPDL MFWFMT BSF OFFEFE as opposed to sock in a fixed site; t 0GUFO UIFSF JT OP OFFE UP FNQMPZ PUIFS staff; t 'MFYJCMF XPSL IPVST
Many businesses also realized that you could downsize your retail and office footprint, reduce costs, operate just as efficiently and even be more profitable! Taking your business to the consumer’s home or office is also a great way to generate work and build your brand in the market, without carrying the huge overheads of a fixed site. It has also solved a problem for many over worked families juggling their work and children’s commitments.
t 0QFSBUJPOBM DPTUT BSF HFOFSBMMZ MPXFS t -FTT XPSLJOH DBQJUBM OFFEFE GPS UIF ëSTU months of operation; Even mobile franchisors had to embrace the advances in on-line marketing and ordering and embracing a social media presence which has helped to make mobile franchises even more user friendly for the franchisee and their customer. The frenzied demand for courier drivers during Covid has now settled down but out of that came increased demand for food delivery drivers and businesses continue to benefit from consumers wanting to have goods and services to their door.
The size of the franchise market The mobile sector is staggering when you look at for example Jim's Mowing with over 1,500 franchisees, VIP Home Services over 1,000 in (AU + NZ), Jim's Cleaning Group around 950 franchisees, Cleantastic over 900 and couriers such as Aramex (ex-Fastway) 900+, Couriers Please over 700, Hire A Hubby over 300 and the list goes on. The Franchise sector has over the last 5 years grown at 2.4% to around $169.5bn For larger franchised business their profits are down and their costs are up and the
Australian dollar is weak. Many of these factors do not overly impact on the smaller franchises although we are seeing the increase in inflation and higher interest rates affecting households’ disposable income and we are seeing an increase in insolvencies particularly in certain sectors such as hospitality and building.
So, all in all low cost and mobile franchising may be a great option but won’t suit everyone. If you are considering one, here are a few things to think about:
But enough of this doom and gloom!! with change and some business going to the wall others in the services segment take up greater market share and other opportunities open up.
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You just have to drive around and look!
Mobile and fixed site franchise costs Let’s talk about real dollars! With a mobile franchise, the up-front franchise fee is usually the biggest cost (it could be as low as $8,000 up to $25,000.00 apart from the need to lease a vehicle, branding and equipment costs. Overall, the investment in a mobile franchise may be in the range of $30,000 to $100,000 (high end) to get moving. The vehicle and equipment can usually be leased, which also reduces the up-front capital outlay. The franchise fee for a fixed site franchise on the other hand are generally in the range of $30,000 to $80,000 plus fit out costs, stock and a myriad of other costs such as funding a bank guarantee on a lease, staff and insurance so the start-up costs could be well over $250,000.00 and up to even $600,000. Mobile work may not suit everyone, and this is something to consider if you would prefer an office or shop environment and even though a mobile franchise has less up-front cost (which means less risk) that may also mean a smaller income or return. Many mobile franchisors charge a fixed weekly or monthly royalty rather than a percentage of gross turnover which for a fixed site franchise can range from 6% to 10% plus a marketing fee of between 2% to 4%. Therefore, the amount that is deducted from a franchisee’s gross turnover (not their profit) can be overall in the range of 10% up to 14% all up. A weekly fixed fee with a smaller franchise can be positive if the business is successful and growing but can otherwise be a fixed cost that becomes a debt to the franchisor, irrespective of what income you have generated. Fixed site franchises also require the franchisee to hold stock which has to be funded up front and the working capital requirements for a fixed site franchise over the first six or twelve months of operation will be much greater than for a mobile franchise.
t 8JMM ZPV HFU BO BMMPDBUFE BOE FYDMVTJWF territory, or will the franchisor or other franchisees be able to sell to customers in your territory?
t *T UIF UFSSJUPSZ OFBS XIFSF ZPV MJWF BT travelling across town to service your territory may become tiring and costly. t %P ZPV IBWF UP USBWFM MPOH EJTUBODFT XJUIJO your territory to service clients for a small fee in which there may be little profit in each job? t $BO ZPV TUJMM UBLF UJNF Pê BOE IBWF B CSFBL without impacting on the business if you are a sole trader? t 8IBU JT UIF GSBODIJTPST QPMJDZ JG ZPV XBOU to go on leave?
Do the numbers work? Even though there may be lower entry costs you still need to do your own financial due diligence and cash flows (with the assistance of your accountant and financial advisor) to see if the business is sufficiently viable to at least pay you a reasonable salary. If the numbers don’t work, then don’t commit, as mobile franchises can be difficult to sell. You may also need to accept that by taking up a mobile franchise you are buying yourself a job and that’s fine, but you need to be able to take a reasonable salary out for your effort. There may be no goodwill or great capital gain when you sell the business in the future which is a risk in most businesses.
Training and support You should ensure the franchisor provides adequate training up front and ongoing training and support, and that they have the latest booking and CRM software for ease of bookings and payment. There is really no excuse these days for franchisors having outdated software or a franchisee having to fax sales details at the end of each week! We are living in a new digital age and if the franchisor is not up to speed with technology I would move on! Does the franchisor have a social media presence, and do they charge a marketing fee which is spent on misplaced and expensive advertising, that’s not really that effective? Talk to other franchisees in the system to get a gauge on their happiness level with the franchise and its support. If the feedback is negative that’s a red flag.
Your exit plan Most mobile franchises have a limited life span of say 4 to 6 years after which you will likely want to move on. Therefore, you need to look at what the transfer or assignment costs are and any restrictions on selling the franchise and any restraint clauses that may restrict you from carrying on a similar business when you sell or get to the end of your franchise term. If things don’t go to plan it can be difficult to get out and sell a mobile franchise and you may still crystallize a loss if you walk away during the franchise term. There are lots of tricks and traps when looking to become a franchisee so before you “get on the road again” like Willie Nelson did back in the 60’s, do your analysis and get advice from a Franchise Law Specialist who is a member of the FCA as we know the good, the bad and the ugly in franchising. That way you will limit your risk and make an informed decision before you hit the road. Y BUSINESS FRANCHISE MAGAZINE 41
FRANCHISING FEATURE
PROFILE: Kitset Assembly
PUTTING IT ALL TOGETHER With a growing population, new houses and offices going up every week, and a lot of furniture and other equipment being delivered in self-assembly format, it’s no surprise that Kitset Assembly Services is in high demand.
‘People these days are not only time-poor – many haven’t developed handyman skills, don’t have the tools, or the patience to work out instructions when they can be earning at their real job,’ says Galvin Milich. ‘The average flatpack has apprehension attached to it and that’s what Kitset franchisees do: take away stress and save customers time and money. ‘I bought my Kitset Assembly Services franchise in 2019. Starting from zero, I built an annual turnover of $150,000 in just two years. Many of my clients are regulars – if you do a good job, you’ll inevitably be called back for something else. There’s a real shortage of reliable tradies out there. If you can turn up when you say you will, and do the job you say you’ll do, you’ll be in demand, simple as that. Kitset Assembly Services was founded in 2017. Owners Jennifer Lees and William Flew both have over 30 years’ business experience, and have been joined by CEO Grant Nye, who has over 20 years’ experience 42 BUSINESS FRANCHISE MAGAZINE
in franchising. The result is a formidable team which has grown the business from 4 franchisees to nearly 50 across New Zealand and Australia. Demand means there are exceptional opportunities for Australian franchisees.
New franchisees undergo a four-week training course, followed by a Franchise Manager and Field Trainer spending time with them in their new business, introducing suppliers and ironing out any teething problems.
‘The range of flatpack products on the market continues to grow, and we supply a solution for both retailers and customers,’ Galvin says. ‘We’re not hampered by exclusive deals with any one supplier – we have over 130 retail and supply partners to draw a healthy business. That’s good for them and good for us, because we’re removing a problem for their customers, too.’
‘The philosophy of the company is not a “get out there and good luck” type of business – it offers wrap-around support to help franchisees become as successful as they can. They may be in business for themselves, but they’re most definitely not by themselves.’
All are supported by some clever technology. ‘Customers can access our online booking portal via the website, giving them access to instant estimates on thousands of fixedpriced assemblies. Also, Kitset has developed a proprietary software solution, ToolKit, a world-class job management system covering scheduling and billing, specifically designed around the requirements of Kitset franchisees.’ Galvin’s background was in the corporate sector of the automotive industry. ‘I got into a rut, and wanted out,’ he states bluntly. ‘I have a very DIY mentality, so when I came across Kitset Assembly Services it appealed immediately.’
Kitset Assembly Services describes itself as ‘unapologetically fussy’ about chosen franchisees. ‘We have an awesome network of individuals who are in business for themselves, understand the strength of our brand and network, and are invested in providing a simple solution for our customers, while creating their own destiny.’ ‘This is not a “buy a job” franchise,’ says Galvin. ‘It’s an opportunity to build a longterm asset which offers terrific variety, the opportunity to meet people, and a healthy turnover. ‘If you’re a practical person, have strong communication skills, understand customer service, and desire to succeed, give Kitset a call. If it’s a fit, they’re genuinely delighted to help you get started and turn your skills into a business with a real future.’
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FRANCHISING FEATURE
FRANCHISEE IN ACTION: Hydraulink
HYDRAULINK AWARDS RECOGNISE “BEST UNDER PRESSURE” TALENT
The 2023 Hydraulink conference recognised high achievers through an annual awards night. National hydraulic hose, fittings, and service organisation, Hydraulink, recently hosted its annual conference and awards night to recognise high achievers in the network. With Hydraulink network partners, franchisees and HSSTs (Hydraulink Sales and Service Technicians) all showing their “Best Under Pressure” attitude, it was tough competition to take out this year’s awards. “I’d like to thank everyone who participated in the conference, and everyone in the Hydraulink family that embraces the can-do attitude and goes above and beyond for our customers on a daily basis,” said Hydraulink Australia Managing Director, Denis Matulin. “It was hard to pick between so many hard workers, but in the end, we found three exemplary examples that truly deserved recognition this year,” he said.
Network partner of the year – Hunter Valley
Shane and Kellie Goodwin (centre) receive their award from Hydraulink Directors Lee Short (far left) and Noel Davies (far right)
44 BUSINESS FRANCHISE MAGAZINE
Hunter Valley Hydraulink Manager, Shane Goodwin, has served his region for more than 18 years, where a focus on service has helped drive expansion over that time. “I wasn’t expecting this, but I’m incredibly proud to receive this award, in a field with so many quality Hydraulink partners. We’ve got a fantastic crew at Hunter Valley Hydraulink, and this is recognition of their above-and-beyond attitude,” said Shane. Shane and his team service a diverse range of industries, including mining, agriculture, engineering, earthmoving, and civil works (including a new bypass and a highway re-direction). “Customers value prompt service and quality product. We get some tricky enquiries, but nothing goes in the ‘too hard basket’ – we do what we can to help each and every person that comes to us, and I think that’s what sets Hydraulink apart in the industry,” says Shane, who adds that his region is booming and Hunter Valley Hydraulink is looking to expand again, with opportunities for staff with a “can do” attitude to join the Hydraulink family. “The conference gave us the chance to chat with likeminded Hydraulink staff from across the country so that we could share knowledge and interesting problems.
Three staff at Hydraulink Hunter Valley achieve 10 years of service to the company. From left to right, they include Craig Brown, Sally Beverley, and Dale Cox. Shane says Hydraulink Hunter Valley is continuing to expand and is looking for people to join this dedicated team
“Our aim now is to not only maintain this standard of excellence, but to continually improve and keep delivering for the Hunter Valley region.”
New Franchisee of the year – Gold Coast
HSST of the year – Jonathan Gaske Southern Downs
Tim and Katrina Phillips (centre) receive their award from Hydraulink Directors Lee Short (far left) and Noel Davies (far right)
Gold Coast Hydraulink owners Tim and Katrina Phillips joined the network in May 2022, and have already built up a reputation for customer care and maximising uptime. Jonathan and Kathleen Gaske (centre) receive their award from Hydraulink Directors Lee Short (far left) and Noel Davies (far right)
Southern Downs HSST Jonathan Gaske has been with the Hydraulink network for more than two years, and was pleasantly surprised to receive this award.
“The award was great recognition that we’re doing something right,” says Tim, who adds that customers have given similar positive feedback, and that’s the most important of all. “It’s a credit to the fantastic team here at Hydraulink Gold Coast – they are what has made our franchise such a success.”
“As a smaller, country-based HSST, I wasn’t expecting this – with some of the bigger Hydraulink operators in city areas having a larger scale than I do – but we all share the same focus on unwavering customer service,” says Jonathan.
“We take care to look for the little things. Every time we are given a machine to repair, we’ll check that the entire machine is good to go before we give it back – even if our initial job was to change one hydraulic hose,” he says.
In the Southern Downs area, Jonathan services industries such as agriculture, earthmoving, renewables (including new wind farms being installed), hobby farms, and quarries.
Hydraulink Gold Coast services a broad range of industries, including waste management, earthmoving, light vehicles, pressure washing, and small businesses that need minor hydraulic repair work.
“The customers really value our mobile service, which wasn’t available previously. They used to have to take the time to bring the machinery into a workshop for repairs, causing costly downtime. Now I can come out to them, and they can keep using other machinery while I work on the one that needs maintenance,” he says.
“Customers value our machinery knowledge, which allows us to maximise their uptime and get them working again as quickly as possible,” says Tim.
“For me, one of the greatest assets of being part of the Hydraulink network is being able to connect with others, and share knowledge. The conference was a great opportunity to make these new connections. Sometimes you have a new problem to solve, and someone within the Hydraulink family has faced a similar situation, so they can provide valuable advice.”
The Hydraulink Gold Coast team – Tim says it’s this hard working and customer-focused team that should be credited with the award win
In addition to hydraulic hose repair and emergency work, Hydraulink Gold Coast also provides brake lines, power steering hoses, remanufacturing work, repair and overhaul of cylinders, and supply of hydraulic oil. “The conference was an excellent chance to meet colleagues from different regions and network, share knowledge, and make valuable connections for the future,” says Tim. 'PS 'VSUIFS *OGPSNBUJPO 1MFBTF $POUBDU
The Hydraulink Southern Downs family celebrates their award win
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FRANCHISING FEATURE
EXPERT ADVICE: Brian Keen | Founder | Franchise Simply
THE MYRIAD OF FRANCHISE BRANDS IN AUSTRALIA TODAY
business with fewer that 20 employees. 95% of all franchisors and almost all franchisees sit hidden in this group. The IBIS World report remarks that the past few years have been tough, and we think especially on these smaller franchises. COVID had a big impact and despite a return to COVID normal trading conditions, IBIS World notes mounting cost of living pressures have made it difficult for businesses to regain lost ground. We are all feeling the pinch.
Recently the Franchise Council of Australia published The State of Franchise Report and we are sure everyone is talking about the results shown which are so encouraging. It shows the franchise sector is composed of 94,000 franchise outlets (nearly 10% of the 1 million businesses employing staff in Australia today by my rough calculation), generates $174 Billion into Australia’s economy, and employs almost 600,000 people. This is significant. The thing these stats hide though, is that the sector is not just represented by the big franchise brands everyone knows.
Examples from the big players Yes, the big players are very visible – Jim’s Group, 7-Eleven, and Subway take pride of 46 BUSINESS FRANCHISE MAGAZINE
place, each with thousands of outlets and people involved. But this big group includes some surprises too. Metcash, which owns IGA (every IGA store is a franchise) seems to top the list alongside Harvey Norman and then Maccas. But think about Jetstar Group which is owned by Qantas and has franchised its Singapore, Japan, and Vietnam operations to be managed in those countries. And IKEA which is owned by the Swedes with franchises in Australia and elsewhere. Not to mention Elders Rural Services with about 91 franchised outlets, and virtually all the fuel and car dealerships through Australia.
But the small players take up most of the field This is where most of the franchise brands lie, and some are very different. The IBIS World report notes the range is vast from cars to childcare. The FCA report shows that the sector is predominantly made up of small
But it is this sector which is worth a look because it is where the variety and potential lies. The big thing is the diversity. There are a few reasons. The new growth areas, although still at the top of the list are retail outlets, restaurants, and quick service food outlets, it is the sections called ‘other’ or ‘personal services’ that we think are exciting. The reason – COVID again – we see the franchise market changing in response to the demand for personal growth, personal service, and escape. Our workshops and enquiries are more and more filled with those in the service industries – NDIS, beauty, creative arts, home renovation, recreation… Here are some we have come across and note some of the examples have been around for years.
Paint and Sip Studios We love this concept where friends can meet up over food and wine (well not for the kids!) and express their creativity with lots of fun. They opened in 2018 and today have studios and mobile units. The group is 44 franchisees, and 73 franchisor units. They operate everywhere in Australia except the
Brian and Prue Keen Brian Keen has been involved in the franchise industry for more than 30 years and Prue has been involved with systems and business for as long. Together they founded Franchise Simply, Systems2Grow and Microloan Foundation Australia. Brian’s on-the-ground business experience as a multi-unit franchisee, franchisor and consultant helping many of the big names create their own franchise systems and growth over the years combined with Prue’s structured approach has been fed into Franchise Simply, helping today’s SMEs and Franchisors grow their business by franchising. www.franchisesimply.com.au | www.systems2grow.com
Sandwich Express Holdings Northern Territory and have plans to go there too. This growth in just 5 years is remarkable. The thing about these outlets also, is that they grew the enterprise through COVID and are still expanding. Paint and Sip are no orphans, there is a demand we see across all the creative arts to experience this kind of escapist, relaxing, fun activity that gives time away from all normal work and family life.
Happy to keep it small There are many who choose to franchise, not because they have great ambitions to build an empire, but to help them better manage business at their own scale. Done properly, franchising does help with managing staff and the daily tasks of delivery and sometimes sales, but it comes with added responsibilities for looking after your franchisees. Keeping the group small reduces the problems that can come with that. These guys have successfully found their balance and we see a lot of groups happily not choosing to grow enormous.
This is such a good example of a regional franchise where the franchisor obviously is using this model to run a great very specialised business in one town (Townsville) with three franchisees. They only serve sandwiches (well – croissants, muffins, wraps too but you get the drift) and are happy with how this is going. We come across many small family run regional franchises which fit this niche mould. Little Boomer’s Basketball New but with an eye to future expansion. These guys have only been around for two years in NSW and have 4 franchisees with 1 the franchisor is running, which is good going in that timeframe. Their website shows expansion is on the horizon for them and with a clear love of the game and the kids, they will be successful we believe.
To conclude The mind-boggling scope and flexibility of the franchise model is clearly illustrated when comparing two 30-year-old examples: Old McDonald’s Travelling Farms with 10 outlets and Poolwerx who have expanded their model to 550 units and growing. So, there you have it. Is there any other approach to business growth that offers such prospects together with the benefits that franchising affords? It is exciting to see the wide range of businesses that explore franchising as another model to help manage their business and more exciting to see the range expand. Just remember, there is one thing that keeps each of these groups successful – look after your franchisees and they will look after you. Y
Old Macdonald’s Travelling Farms They bring the farm to you and no event is too small or large – we believe they attend the Easter Shows each year. Key here is the fact they love their animals as much as they love the kids they entertain. And it shows in the cute, cuddly unstressed creatures they take around each year. Established as a franchise in 1991, these guys have been around for years, but they have just 10 outlets. They can be found in the Eastern States and WA. What they show us is that you don’t have to be huge to be successful. It depends on your objectives, and it looks as though here it is the care of the animals that is the priority. BUSINESS FRANCHISE MAGAZINE 47
FRANCHISING FEATURE
HAVE YOUR SAY: Stagecoach Performing Arts
IDENTIFYING THE INDICATORS OF A ROBUST FRANCHISE SYSTEM For aspiring entrepreneurs, venturing into franchising can be a game-changer. The low-investment model, the advantage of tapping into a preexisting market base, established distribution channels, and the allure of a recognised brand with strong product awareness make it an extremely appealing option. But not all franchise opportunities are created equal. Discerning the robust from the lacklustre requires a keen eye and thorough research. As a prospective franchisee, making informed decisions that align with your goals and values is crucial. Here, the CEO of Stagecoach Performing Arts, Andy Knights, identifies the key indicators to think about when considering a franchise opportunity. A franchise system serves as the backbone of any franchise, providing a structured framework that enables consistent replication of a proven business model. It encompasses a set of processes, procedures and guidelines that govern every aspect of the franchise 48 BUSINESS FRANCHISE MAGAZINE
operation – from marketing and sales to training and support. By establishing a robust system, franchisors can ensure that their brand maintains a consistent identity and delivers a uniform customer experience across multiple locations. From the franchisor’s perspective, a welldefined system allows for scalability and growth. It provides the necessary tools and resources to replicate the success of the original business and expand it into new markets. By documenting and standardising every aspect of the business, franchisors can transfer their knowledge and expertise to franchisees – enabling them to run the business efficiently and effectively. But what are the benefits for franchisees, and how do we identify a franchise that not only talks the talk but also walks the walk?
A proven track record A hallmark of a robust franchise system is a proven track record of success. A franchise with a demonstrated history of success has already weathered the challenges of market fluctuations and fine-tuned its business model for optimal performance. This track record instils confidence in your investment and provides a clear indication of the franchise’s
Andy Knights CEO of Stagecoach Performing Arts
viability and resilience. By choosing a proven franchise, you benefit from the lessons learned by the brand over time – minimising the uncertainties associated with untested business concepts. For over 35 years, we at Stagecoach have witnessed our franchisees’ continued growth in markets from Canada to Australia. Our commitment to a proven track record reflects our dedication to providing investors with a
comprehensive and reliable assessment of our franchise system. We recognise that a history of financial success, steady growth and alignment with market trends contributes to our franchise opportunity’s overall stability and attractiveness.
A recognisable brand A well-established brand brings a trusted reputation and a widespread consumer base. This pre-existing consumer trust can significantly ease the challenges of establishing credibility in the market, allowing you to tap into a loyal customer following from the start. As a franchisee, you can benefit from established marketing strategies, including advertising campaigns, social media and brand guidelines that the brand of a robust system will provide – ensuring that the brand message is uniformly conveyed, enhancing brand recognition and creating a cohesive customer experience. The brand’s strength can also lead to increased visibility and foot traffic, translating into a faster return on your investment. At Stagecoach, our brand has been synonymous with exceptional performing arts education for children across the globe for more than three decades. Beyond the confines of each franchise, our brand identity serves as a testament to the enduring values that define Stagecoach – fostering recognition and a sense of loyalty among our customers in every school.
A helping hand A robust franchise system commences with effective onboarding programmes, encompassing vital facets such as operations, sales, marketing and industry-specific knowledge. Beyond the initial phase, ongoing support and training become the bedrock for continuous education and skill refinement – ensuring franchisees stay atop industry trends and maintain a competitive edge. Networking opportunities and mentorship programmes also showcase that the franchisor forges a tight-knit community among its franchisees, fostering collaboration and shared insights. At Stagecoach, regular regional, national and international conferences keep our network connected and informed, providing a platform for sharing best practices and celebrating achievements. Additionally, communication from the franchisor stands as a linchpin, establishing trust and ensuring a seamless partnership. By evaluating the depth and quality of these support mechanisms, you can gauge the level of commitment a franchisor holds toward
your long-term success – paving the way for a mutually beneficial partnership.
A step ahead A successful franchise system is not static but evolves and adapts to changing market conditions. Franchisors regularly review and update their systems to incorporate best practices, technological advancements, and industry trends. A responsible franchisor will continually evaluate the effectiveness of its system by assessing key performance indicators, gathering feedback from franchisees and customers, identifying areas that require enhancement and making necessary improvements. At Stagecoach, we consistently evaluate our system and operational processes to ensure efficiency, relevance and continuous improvement. With the recent introduction of our updated Educational Framework and our refreshed ethos ‘The Stagecoach Way’, our dedication to ensuring that our franchise system stays up-to-date and aligns with the
needs of today’s young people is pivotal to franchisees’ success across the globe. It also ensures Stagecoach remains an appealing opportunity for individuals seeking to invest in a franchise that delivers tangible results in their own lives and the lives of the children we serve. Before investing in a franchise, you should thoroughly research and evaluate these indicators to ensure you join a system well positioned for success. Consulting with existing franchisees and seeking legal advice can also provide valuable insights into the franchise system’s strengths and potential challenges. By aligning with a franchise that prioritises and excels in these essential aspects, you position yourself for a prosperous future in an ever-evolving and competitive market. For more information about investment PQQPSUVOJUJFT BU 4UBHFDPBDI 1FSGPSNJOH Arts, visit https://stagecoachfranchise. com/ BUSINESS FRANCHISE MAGAZINE 49
FRANCHISING FEATURE
FOCUS FEATURE: Muffin Break
HOW MUFFIN BREAK BECAME AN ICONIC BAKERY CAFÉ FRANCHISE
Opening in Coolangatta in the late ‘80s, Muffin Break began to be franchised within a year. It has become a beloved addition to many shopping centres across the nation, with 150 sites across Australia and 247 globally. Muffin Break has kept pace with Australians’ burgeoning love of coffee, developing an award-winning house blend that is roasted to perfection. With its proven systems and recipes, Muffin Break has earned a reputation for consistency.
Muffin Break is an Aussie legend. For nearly 35 years Muffin Break has been offering Australians freshly baked muffins, delicious lunch items and great coffee to put a little good into their day.
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Customers know that all muffins are baked fresh daily, and that all baristas are trained to deliver the perfect cup of coffee.
Location, Location Being able to grab a coffee and a snack whilst getting your shopping done is very appealing to a wide demographic, making Muffin Break an excellent choice for someone looking to start a business. Joining a franchise with processes and procedures already in place ensures an easy transition to being a business owner. Muffin Break also has built long-term relationships with shopping centres across
Australia. There are currently 70 sites available to purchase in prime locations near anchor stores, meaning that foot traffic is amplified. Thanks to Muffin Break’s high brand recognition, an owner can purchase a site and feel confident customers will be ready and willing to visit. Matt Williams, Chief Development Officer of Foodco, says that if you have an outgoing personality and enjoy working with people, Muffin Break is an excellent fit. When asked for his advice for potential franchisees, he laughs: “just buy one!” On a serious note, Matt says while it is essential to talk to your lawyer, accountant and business advisor, making the choice to own a Muffin Break is that simple. If you have the right personality and work ethic, Muffin Break has the resources to help you succeed. “Even without experience, if you have the drive to own your own business and love talking to people and taking care of your customers, you can do well with Muffin Break.”
Extensive Training & Support Muffin Break provides comprehensive training and support including payroll, HR and administration assistance, and even your own Operations Coach who can assist with the process of getting up and running. Franchisees are also given access to Online Learning and constant support via phone and email.
Like Jamaica Blue, Muffin Break franchisees come from all walks of life and enjoy being part of their local communities. Matt Williams says one of the best ways to motivate franchisees is to simply have them interact with each other, sharing success stories and offering each other solutions to any problems. “We have quarterly Group Meetings and a Biannual Conference where our Franchisees can network and support each other. We also offer incentives to each store and celebrate these successes throughout the network.”
Exciting Things to Come You don’t become an Aussie legend by resting on your laurels. “We are always looking at evolving our product offering and range, such as new muffin flavours. A refresh of the stores’ look and feel is also underway,” says Matt. New espresso machines and more varied milks and coffee products are also in the works, with Muffin Break always conscious to keep improving. After all, this commitment to growth has been a recipe for success for over three decades. Love to be part of an iconic brand? Go to muffinbreakfranchise.com.au for more information. BUSINESS FRANCHISE MAGAZINE 51