May/June 2020 Feature – Trending Franchises. BUSINESS FRANCHISE Australia and New Zealand

VOL 14 ISSUE 04 MAY/JUNE 2020

TRENDING FRANCHISES

YOUR FUTURE DEPENDS ON THIS…

Energy Efficient Products are Future Proof

TRENDING FRANCHISES

What’s Hot in 2020

WHY FRANCHISING IS STILL ONE OF

THE BEST INVESTMENTS YOU CAN MAKE Business Franchise Australia and New Zealand 25

what’snew!

BRISBANE SUBWAY® SANDWICH ARTIST® TRAINING THE GLOBE, ONE SUB AT A TIME A Brisbane-based Sandwich Artist, Darcy Laverty is the face of some of Subway’s global training resources, teaching thousands of new Sandwich Artists how to prepare the perfect Subway sandwich.

The 22 year old local is responsible for training thousands across the country and the world, on what it’s like to work in a Subway restaurant. As the face of Subway’s Sandwich Artist training videos, Darcy prepares those starting out with Subway to understand the secret tips and tricks when it comes to creating mouth-watering Subway sandwiches.

Now in his fourth year with Subway and working at the brand’s Annerley restaurant, Darcy’s videos have inspired new Sandwich Artists coming into the industry, including those as far as France, India and Canada and those closer to home, such as New Zealand, Malaysia and Singapore. It’s a big responsibility, but one Darcy doesn’t take lightly.

“Subway is an iconic, well-loved brand so when I was given the chance to help train other new Sandwich

Artists from around the world through these videos, it was an opportunity I couldn’t refuse,” said Darcy.

In celebration of National Youth Week (QLD 1 – 9 April 2020), Laverty has been formally recognised by Subway for his dedication and passion to not just his restaurant, but for the thousands of other Sandwich Artists he continues to inspire globally.

Subway Annerley Franchise Owner, Damian Culpeper, says Darcy is truly a one of a kind Sandwich Artist.

“Darcy brings a unique energy to the team – he’s patient with the team and guests, passionate about great food and always up for a laugh,” Mr Culpeper said.

“While we share Darcy with the rest of the world through the training videos, the team at our Annerley restaurant is lucky enough to see him in action! For us, it’s great to know that thanks to Darcy’s videos, people can walk into a Subway restaurant anywhere and expect to get the same great experience.”

MUFFIN BREAK TAMWORTH RALLIES AROUND THE HEALTH COMMUNITY rest of Australia to flatten the curve of the novel coronavirus.

Like many businesses, the Muffin Break Tamworth store has suffered a drop in turnover from the pandemic. Located in Tamworth Shopping World, they are still open for takeaway and serving customers who are shopping for supplies at the nearby Woolworths. However, one thing that isn’t in short supply is their generosity.

Supporting frontline health workers in Tamworth

At Muffin Break we believe that community comes first. During the unprecedented times that we’re all experiencing, that ethos counts more than ever! The inspiring actions of the Muffin Break team in Tamworth embodies our community values.

With the global COVID-19 pandemic hitting both the economy and healthcare sector like a hammer, Muffin Break stores across the country remain open in a takeaway capacity, providing fuel in the form of award-winning coffee and delicious, freshly-baked muffins.

We’re in this together!

Based in the heart of the NSW Hunter New England region, Tamworth is adhering strictly to the national social distancing measures outlined by the Federal government, working hard with the

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Even though they’re under pressure themselves, the Muffin Break team has been delivering complimentary “brain food” to the healthcare workers operating on the frontline at the Tamworth hospital. “The hospital and emergency staff have been tirelessly working for us. Yes, we’re going through a hard time but we’re trying to help as much as we can,” says the store manager.

Ahead of the curve with rigorous hygiene training As a matter of course, all Muffin Break franchisees and staff across Australia undergo stringent training on hygiene and food-handling practices. In response to the COVID-19 outbreak, we have instituted even tougher measures, with robust cleaning measures and regular hand-washing with high-grade antibacterial hand wash. You can read more about our response here.

Being a franchisee with Muffin Break means you’re part of a community that cares about the details. Find out more today about building a life you love with an established franchise that will be with you every step of the way.

7-ELEVEN AUSTRALIA LAUNCHES MELBOURNE DELIVERY SERVICE often they need to leave their house. We are rolling this out in Melbourne for most suburbs and will look at other states in the coming months, Mr McKay said.

“This new service is ideal for people who are unable to get out to get basic essentials or ready to eat foods and need delivery within a shorter timeframe. In some suburbs, there are within the hour delivery options, but for most suburbs, customers can order for next day delivery.”

The brand’s stores provide a great alternative for essential service workers and people going out for fuel, food and other staples.

7-Eleven Australia has launched a delivery service making it easier for Melburnians to #stayhome #staysafe and get treats, snacks and key essentials delivered with no contact delivery.

The new service from the Australian owned and operated convenience chain allows consumers to log on to www.7ElevenDelivery. com.au, enter their address and place their order.

According to 7-Eleven CEO, Angus McKay, the service has been developed and rolled out in about two weeks in conjunction with Tipple.

“The 7-Eleven Group acquired a majority stake in Tipple in 2018, as part of our investment in on-demand ‘last-mile’ delivery and technological capability. By working with their network of delivery drivers, we’re able to provide consumers with more options to get the things they need while minimising how

“Our stores are open around the clock and part of the suburbs in which we live.

Customers can buy fuel, food, and a range of other essentials, and our store teams are working incredibly hard on increased cleaning routines and helping customers with the new social distancing requirements in-stores,” he said.

Mr McKay advised that the company’s network of more than 700 stores, including in excess of 450 family owned franchise businesses, is focused on meeting the needs of their local communities.

“We’re committed to working with our franchisees, store leaders and store teams to provide essential services and supplies to our community. We’re here for you 24/7,” Mr McKay concluded.

FRANCHISE RATING STATUS UPDATE In addition to new reviews in progress, FRANdata is about to commence the annual review of ratings assessed in 2019 under the Franchise Rating Scale.

These reviews will include a review of the initial and anticipated impacts from COVID19 on both the trading performance of individual units and the overall franchisor financial performance.

While the impacts of COVID-19 are clearly severe, and the data sample is still relatively small, we are seeing a large variance in the impacts on different industries and in some

cases different units within the same franchise system.

On completion of these reviews (and the new assessments being finalised) participating franchise systems will be issued a revised 2020

rating logo to reflect their current status.

If you would like more information on the Franchise Rating Scale, enquiries are welcome direct to dmcauliffe@frandata.com.au.

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C OV ER STO RY: S u p e r G re e n S o l u ti o n s

YOUR FUTURE DEPENDS ON THIS Energy Efficient Products are Future Proof experience to the venture. Sean openly accredits much of his franchising knowledge to what he learned when he lived in the USA for three years from a well-known franchise guru, Raymond Titus.

During that period the duo oversaw the opening of some 16 SuperGreen Solutions locations across the USA. They then grew the brand into the global domain with locations in markets such as Canada, Panama, Brazil, the Bahamas and South Africa. Raymond Titus, founder of United Franchise group holds some 1500 odd franchise locations and prestigious brands such as Signarama, EmbroidMe and is the SuperGreen Solutions master franchisor outside of Australia.

Each year we require more energy to power more homes, more schools, more hospitals, more businesses, and of late, to power the growing number of electric vehicles in the community.

Yet with no chance of building any more traditional power generation plants to cope with the bloating power loads, prices for energy are set to skyrocket even higher still.

Which leaves most homes and businesses, with only two viable options, the first is to create and store their own energy through products such as solar power systems and battery storage devices.

The second option is to become more energy efficient with the use of better insulation, water heating, ventilation, lighting, energy

automation products.

Predicted growth industries for the future fall squarely within the SuperGreen Solutions product line-up. These products include solar power, energy storage, green building, wind power, electric vehicle charging and home automation products.

The global brand names that SuperGreen Solutions franchises are able to offer their clients is impressive. With prestigious brands such as Tesla Powerwall, LG and Sonnen battery storage brands, Canadian Solar, JA and LG Solar power products, Rheem, Rinnai and Apricus Solar Hot water ranges, Solatube and Heavenly Skylighting and ventilations products, Fletchers Pink Batts and Autex Insulation Products positions franchisees for success.

The SuperGreen Solutions story Sean Cochrane heads up the Australian operations and lends his 23 odd years of local and international energy efficient products

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With founders, like these, the business has a solid pedigree and business formula with systems, structures and procedures that have been tried, tested and proven in many markets. As such, the image, feel, and product range is fresh, new and everevolving. But what is not new, is the everescalating price of energy and the amount of pollution in our environment.

The trusted leading brand name products that SuperGreen Solutions offers, positions franchisees to uniquely provide their clients with ‘bundled products and discount solutions’ placing them in an excellent position. These solutions work equally as well for homeowners, builders and commercial clients, as escalating power bills are indiscriminate.

High demand for energy efficient products In light of the COVID-19 virus outbreak, solar power and battery storage and energy efficient products are in demand more than ever.

SuperGreen Solutions have seen a higher

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With the community more concerned about having no power, others about rising power prices and the cost of living in the current crisis. SuperGreen Solutions are seeing the energy efficient market sector and their product range jump in demand.

SuperGreen Solutions deploys Tesla Powerwalls in major developments SuperGreen Solutions are proud to be part of industry leading technology, and to be working with the Maidment Group and some of Queensland’s leading builders to supply and install Tesla Powerwall’s and Solar power systems into 95 per cent of resident’s homes at Harris Crossing.

With hundreds of Solar Power and Tesla Powerwalls already deployed in this estate, its rapidly being emulated far and wide by other developers.

This is an excellent example of how developers, builders and energy efficient products specialists like SuperGreen Solutions can work together to ensure that homeowners can build future proof homes, that generate, store and consumer their own energy day and night. All the while, saving money, reducing greenhouse gas emissions and making these homes more resilient to

power outages and blackouts all the while accessing the suns free & clean solar power, both day and night. It’s clear to see that this is a great indicator as to how housing estates of the future will be built and how energy efficient product suppliers like SuperGreen integrate with builders, developers and homeowners to make it all happen. Could this be you in your area?

SuperGreen Solutions franchise model – competitive advantages SuperGreen Solutions offers an outstanding business opportunity that truly is environmentally friendly. From the start, franchisees will be able to promote themselves as a reliable, credible, authority with leading brands of energy efficient products as well as being a part of one of the world’s largest business service franchise systems.

Super Green Solutions has a unique angle that makes them perfectly poised to take advantage of this new age of energy shortage.

They have not one but two franchise models.

The SuperGreen Solutions Showroom model - this is a bricks and mortar, energy efficient products showroom that builders use to send clients to, to choose products for their new homes. Or the green destination that the general population uses to compare, see, touch and feel the products that they wish to acquire to start saving money with.

The SuperGreen Direct model - which is

simply a condensed SuperGreen Solutions Showroom on wheels. This agile and low costly version enables the franchisee to take the products and services directly to where the builders, consumers, or clients need the products or service. It’s ideal for home shows, trade fairs, eco fiestas, new home display villages, builders and homeowners that would like to see what they are buying first.

These disruptive SuperGreen Solutions franchise offerings are businesses that are agile, fresh and topical. Because they provide the solutions and products that the world needs for today and tomorrow, yet they are well thought out with decades of pedigree that relies on systems and procedures that will keep them and their franchisees one step ahead of the game, in this every changing market.

Want a business that has six of the top 20 future growth products in its product range?

Look no further than SuperGreen Solutions Energy Efficient products Showrooms and SuperGreen Direct Mobile franchises.

Contact us today.

Get in touch with our team today: 07 4772 7655 or 0481 167 423] franchise@supergreensolutions.com.au Or visit our website: https://supergreensolutions.com.au/ mobile-franchise https://supergreensolutions.com.au/ franchises

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TRENDING FRANCHISES What’s Hot in

Are you considering purchasing and owning a franchise business yourself?

Which franchises are best suited for your budget and skill set? Which franchises are the safest bet?

Buying a franchise can be a viable alternative to starting your own business from scratch.

Franchises offer people wishing to start their own business the independence of small business ownership supported by the benefits of a big business network. A franchise business often has an established reputation and image, proven management and work practices, access to national advertising and ongoing support.

In a franchise business, the franchisor provides a secure way of operating a business model, in return for ongoing payment of fees and/or purchases.

The team at Business Franchise magazine have been covering the franchise industry for more than 35 years, and we’ve made some predictions on the franchises and franchise categories that we think will be trending in 2020.

Franchises that deliver Ecommerce is booming worldwide and, in Australia, there’s no exception. According to Statista, Australia is currently the 10th largest eCommerce market in the world by revenue. Ecommerce in Australia will continue to grow, and the market size will be approximately A$35.2 billion by 2021.

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Thanks to Australia’s love of online shopping, courier delivery services are already seeing extraordinary growth, so it’s no surprise we’re expecting to see the delivery of parcels and freight one of the top growth industries of the next decade.

PACK & SEND is Australia’s most recognised parcel courier, freight delivery and fulfilment reseller. Having been established for over 26 years, Pack & Send, consolidate the services of the world’s top parcel and freight carriers into a single access point under their brand.

A Pack & Send franchise is a very affordable investment with a low entry price compared to other retail franchise systems. The franchise system also has a Gateway Franchise Program - that assists people in getting into the business who are outstanding candidates but have insufficient equity.

Children’s services franchises tend to be low cost both in terms of the initial purchase price and ongoing running costs and as a result, low risk. Many of the programs don’t involve the purchase or ongoing rent of premises and are usually designed to be owner operator franchises. This makes for an attractive franchise business proposition for someone looking for a flexible business that they can grow and manage around their family.

With more than fifteen years of experience, TUTOR DOCTOR have a proven record in tutoring students of all ages. Tutor Doctor is the largest one-to-one in home tutoring organisation globally with a comprehensive and personalised service setting it apart in the marketplace. All tutors are screened, interviewed and have completed a mandatory “working with children check”.

Home help franchises

Children’s products and services

Tutor Doctor expect the private tutoring industry will surpass $128 billion by 2020 and offer their franchisees a low overhead with high earning potential. They offer a strong supportive global network of franchisees with extensive training, mentoring and friendship who are ultimately making a difference in the lives of children and their families.

An ageing population and relatively low start-up costs are fuelling the growth of the home-care sector in Australia. Changes to home care packages that were introduced in Australia in 2017 mean consumers are free to choose their own care provider, previously, there was no option for consumers to choose their own care provider. As many businesses around the world face challenging times ahead with the COVID-19 crisis, more and more families will be looking to find in home support options for their loved ones.

The demand for children’s activities is not showing any signs of slowing down as more and more products and services are added to the sector. From baby sign language programs to maths classes, swim schools and arts and crafts, to sports activities, you can now find a franchise accommodating

We think that because the children’s products and services sector is a highly competitive market, franchisors will need to be innovative and creative in the activities and programs they offer children and toddlers and Tutor Doctor are at the forefront.

HOME CARING is an Australian home care business dedicated to providing high quality, compassionate and trustworthy care and support services to their clients.

Launched in 2015 with a vision of delivering exceptional at-home care, Home Caring believes everyone should have access to a caregiver of their choice, control over their daily schedule, and specialised care services to support their individual needs.

With a growing majority of Australians wanting to live independently in their own homes, and the pressure on the health care system during the COVID-19 crisis, the demand for in-home care is skyrocketing.

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almost every area of children’s learning and development and extracurricular activities.

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“Franchises offer people wishing to start their own business the independence of small business ownership supported by the benefits of a big business network.”

Eco-safe franchises There’s a growing movement in franchising towards environmentally friendly businesses.

Eco-friendly or eco-safe franchises are a newer category but are fast becoming popular with societies growing concern for the environment and our health.

Franchises in this category can include, solar-powered products, cleaning with eco-friendly materials or performing energy audits, removing junk or recycling clothing and environmentally friendly lawn care, pest removal and home renovation franchises.

SUPERGREEN SOLUTIONS is a onestop shop for eco-friendly and eco-safe products for the home and business. Their philosophy of ‘reduce before we produce’ enables SuperGreen to reduce consumption and CO2 emissions and increase efficiency and savings through their ability to bundle several products and solutions.

At Business Franchise magazine we all agree that energy and energy efficient products are leading growth industries world-wide. And growing rapidly.

SuperGreen’s products rank in six of the top 20 future growth industries to be in, solar power, energy storage, green building, wind power, electric vehicles and charging, and home automation.

Mobile franchises With your shop floor being as big as the territory you’re offered; a mobile franchise enables you to be free from paying rental on a shop location. A mobile franchise also allows you to deliver the ultimate in convenience while keeping your overheads low. We think that great flexibility, low overheads and convenience will see the

mobile franchise sector boom in the current climate and in the next few years.

ECOMIST AUSTRALIA is a leading provider of premium quality hygiene products and services, specialising in odour control and insect control. There could not be a better time to become a franchisee with Ecomist. Each Ecomist franchise has its own exclusive territory based on post codes, bestin-class products and services, an initial term of five plus five years and a loyal customer base. The business is set up to be owner operated, small to medium sized franchises, which do not need additional employees.

It’s important to remember that our franchises in trending categories are not intended as a recommendation of any particular one franchise. Always do your homework before you make any decisions, by reading the franchisor’s legal documents, consulting with a specialist franchise lawyer or advisor, meeting with your accountant, and talking to existing and former franchisees. www.businessfranchiseaustralia.com.au www.businessfranchisemagazine.co.nz

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When Australia dreams, we all win! the Lott The Lott

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S N A PS H OT: H o m e C a r i n g G ro u p

DEMENTIA CARING NAMED ONE OF AFR ‘FAST STARTERS’ FOR 2020 Dementia Caring Australia (part of Home Caring Group) is delighted to be ranked 11th in the Australian Financial Review Top 100 ‘Fast Starters’ list for 2020.

The AFR Fast Starters is a list of the Top 100 start-ups in Australia ranked by absolute revenue figures. We are proud to be included amongst other organisational successes on the list: an accomplishment that confirms our ‘person first’ approach to home care is fast gaining popularity in communities around the country.

The key to our success: client-centred values Home Caring Group’s service model plays a key role in the company’s rapid growth over the last few years. Since opening in 2015, we’ve been offering Australians from all backgrounds bespoke home care plans with a full suite of tailored services, from domestic help and personal care to support coordination, allied health therapy and community engagement – all available through NDIS, Aged Care packages or private funding.

Michaela Brown, Home Caring Group’s National Operations Manager, believes what makes this model so effective is the way it puts the clients firmly in the centre, applying the organisation’s values of “empathy, respect and having passion for providing excellent care”.

“In our experience, these core values make a significant difference between just performing tasks, and actually creating high quality care and support services that improve the lives of our clients all around Australia. We don’t just tick the boxes – we do everything with compassion and attention to detail, treating the client like a real person,” says Michaela.

“What’s more, we are well-placed to deliver this kind of care that is so popular with people. Our high quality services are support by a large back-end system,” she adds. “You’re getting highly individualised care from local workers who understand you, but with the advantages of being backed by a big company back-office.”

Finding the right franchisee for each local community The key to offering effective personalised care is having franchisees that not only know the local area well, but also uphold Home Caring Group’s values of empathy, respect and passion for the job.

Bill Lockett, Home Caring Group’s Franchise Manager, says finding the right franchisee has proven to be essential to the company’s success, particularly finding “people who embrace our values and match our caring culture.”

“We have succeeded because we’ve found the right franchisees to join the business. We have such a diverse range of people from different communities – Vietnamese, Indian, Chinese, English, Brazilian, Ghanaian,” says Bill.

“Those franchisees have gone into those communities and done a fantastic job of helping them in understanding the home care and disability care system, discussing with them and their family members the details of their plan, then executing that plan and finding the perfect carers for them.”

Finding the right franchisee is only half the equation; attracting them with an appealing business opportunity that supports growth is just as important. This is where Home Caring Group’s unique partnership comes into play. We offer selected franchise applicants a 50/50 partnership, which essentially cuts their initial investment by half. We also pay the franchisee a salary, allowing them to focus on building the business knowing their personal finances are secure – especially in those crucial early years of getting their franchise off the ground.

“In our partnership model, a suitable applicant is able to get into the business at half the price it would normally cost on the market,” says Bill. “In addition, we know it’s always difficult to start a business and make any money in the first year, so we pay salary to the franchisee from the start. That takes away all those worries of paying bills, giving them time and energy to put into the real core of the business.”

Bill believes this model, along with the level of support franchisees receive from Home Caring Group’s back-end office, is why the business is so appealing.

“What’s attracted people is the actual business model we’ve presented to them,” he says.

“Most of our people are coming from the healthcare sector. They have the skills and personality to succeed and deliver excellent care, but they’re not necessarily experienced at running a business. Our franchise model is attractive because they get training and knowledge on how to execute their business plan.”

“This is ultimately good for the client too, as a better business means better care that really makes a difference in their lives.”

For more information visit: www.homecaringfranchise.com.au

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HCF

A COMPELLING OPPORTUNITY IN A HIGH GROWTH INDUSTRY Join an AFR Fast Starter group PARTNER WITH AN AUSTRALIAN OWNED BUSINESS IN THE AGED & DISABILITY CARE INDUSTRY Proudly Australian owned and operated, Dementia Caring/Home Caring provide professional and compassionate personalised care services in the home. We are seeking community-minded franchisees interested in building a solid financial future.

BOOMING AGED & DISABILITY CARE INDUSTRY With the rollout of NDIS and home care packages, government funding for home care for aged and disability services is growing by leaps and bounds each year.

We will assist our franchise partners to become approved providers of these government-funded services, so they can take advantage of this massive growth.

STRONG BRAND Home Caring has a strong appeal within the home care industry and has developed Dementia Caring as a specialised brand for people with dementia.

ONGOING SUPPORT AND TRAINING Our franchisees are mainly from the healthcare sector. They have the skills and personality to succeed and deliver excellent care, but they’re not necessarily experienced at running a business.

We provide a comprehensive training program, ongoing operational support and a full suite of management tools that gives them the training and knowledge to build their business.

POWERFUL BUSINESS MODELS Our 50/50 partnership model creates strong alignment between us and our franchise partners and substantially reduces start up costs.

Our business model: Reduces initial investment by 50% making it much more affordable Provides assistance to acquire the appropriate licences Pays an annual salary package of $80,000 to the franchisee to take away any worries about paying your bills Provides an ongoing 50% share of profits Provides maximum support, with the franchisor being a partner in the business

To find out more contact Bill Lockett on 1300 658 311 or email info@homecaringfranchise.com.au www.homecaringfranchise.com.au Business Franchise Australia and New Zealand 35 HCF-Ad-CGB-Magazine-May-June 20.indd 1

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E X PER T A DV I C E

FRANCHISING AS WE KNOW IT IS FRAYING AROUND THE EDGES DO WE REPAIR IT OR START WITH A NEW MODEL?

I started thinking about this article in late February, weeks before COVID-19 crisis got its grip on our economy, our businesses and our way of life. At that time, I believed that our franchising system was in dire need of a shake-up, a re-think and an innovative re-boot.

What has happened in the meantime, is that the Coronavirus crisis has forced a lot of franchises to embrace inventive thinking and to display real agility in how they deliver their products and services - and that may be, in the long run, a blessing.

But let’s rewind the clock and examine my thoughts pre-Coronavirus.

The traditional structure of franchising evolved from co-operatives and buying groups. But the information, social media and communication booms mean that a single business can wield as much voice, can unearth the same competitive product pricing and can source the best operational systems, without paying for the privilege of joining a franchise.

How can you improve your current franchise offering, while setting yourself up for the next evolution in the franchising model?

“What keeps your franchisees loyal to your brand?

It is quite simple. It’s providing them with what they need to run a profitable and healthy small business.”

Corina Vucic | Director | FC BUSINESS SOLUTIONS

Get the capital backing you need Underfunding is the greatest challenge to growth. Sadly, there would be many franchisors who had a dream, invested in their set up and today are not seeing their expected returns or successes. They chose to self-fund and not bring in a silent investor (or investors). Undercapitalised franchisors are limited in what they can achieve as far as innovation, franchise support and services offered. They can’t reinvest in their business, and standing-still does no business any favours.

Innovate every day Innovation can’t be put on the back burner until there is a crisis. Innovation needs to be on every agenda, should have a seat on the board, be part of the executive team and have a fixed (with a view to increasing) percentage of operating costs allocated to gathering intelligence on consumer behaviour, competitor benchmarking and investigating, then implementing the products of the future.

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Invest in technology Unfortunately, a lot of technology investment is when franchisors are unable to delay the inevitable. Why? Lack of planning, lack of knowledge, lack of ability to access subject-matter experts. Yes, technology evolves at light speed, and often you will have no sooner installed software when it needs an upgrade. But with solid advice on what tech is on the horizon, a schedule of implementation and an open mind, you and your franchisees can reap the rewards.

Technology allows you to:

performance) at a forensic level

manner with all your constituents – franchisees and their staff product or service consumption, and for franchise recruiting. them engaged

Trends, pipelines, order quantities – the amount of data that most franchisors can access is enormous. But you need the capability to mine it, slice and dice it and reveal the strategic nuggets that are hidden in the numbers. Use the data for forward planning and share the data with your business owners. Data provides everyone with an opportunity to tweak their offering and turn it into what your customers want.

future, with communication being between all team members within the brand’s community – not just the franchisee. This transparency will promote trust, loyalty and engagement in the brand from all levels.

Virtual Coaching Models. Online coaching will be refined and embraced with far greater frequency moving forward. This model will provide valuable help in much shorter timeframes.

Learning Labs. The franchisor should provide frequent online learning opportunities—snack-sized information that provides skills, information and engagement that can be accessed when needed.

It will be interesting to see where franchising lands, courtesy of COVID-19, in 2021.

I asked three successful franchisors what they thought were the key strategies to keep franchises flourishing and evolving.

Focus on what makes your brand “sticky” What keeps your franchisees loyal to your brand? It is quite simple. It’s providing them with what they need to run a profitable and healthy small business. This is not only a product or service that people demand, but also providing all the services that are required from a business back-end pointof-view: systems, procedures, policies and intelligent, knowledgeable support.

Check the pulse of the franchise A pulse-check or health check needs to be carried out annually. This should aim to uncover whether the services you are delivering are what your franchisees want.

Are you providing what they need or providing what you think they need? The research and results will keep your leadership team focussed on innovating and refining your offering, so that it is always better than what your competitor offers.

DEB FARNWORTH-WOOD, Founder Australian Skin Clinics

Communication is KING

Franchise.

We live in a world of instant communication.

Your words can reach hundreds or thousands of people at once. Unfortunately, instant comms also let rumour and innuendo rapidly travel and infect your group. Dissent flourishes in a vacuum, so it’s critical that you are communicating with your franchisees frequently. Communicate often and honestly with short, clear messages.

Everyone is a master of spotting spin, so hiding behind slick words that promise nothing and hide the truth will backfire quickly. Make your communications appropriate, honest, informative, reliable and timely.

What’s the next version of franchising that will keep the industry alive?

What’s next in franchising moving forward?

I believe there is real power in group meetings, that problems are better solved collectively rather than individually. The franchisor needs to be viewed as being down in the trenches with the franchisee.

Undoubtedly the franchise of the future will embrace innovation, technology and the digital space.

What’s the one piece of technology that no franchise system can afford to ignore?

Communication Hubs. These will be integral to a successful franchise in the

I like the idea of a flexible franchise that is built on a collaborative approach where the entire group benefits. Franchisors need to make their money from the success of their franchisees, not through additional charges.

Where should the franchisor set franchisee profitability on the priority scale?

Franchisee profitability is absolutely critical to the income of the franchisor, so good benchmarking practices are vital.

Social media – should it be locally owned or driven by the franchisor?

In the beauty industry, everyone who cares about their looks seems to be a social media expert by default, and it’s an incredibly powerful tool for our business. But there would be some franchising areas where there is no innate social media experience within their stakeholders, in which case the franchisor should be providing useful, frequent content.

What’s the critical weapon to keeping a franchise community in the circle of trust all the time?

A fully integrated real-time system that allows the franchisor to have a good overview of all elements of the business, at all times, with fast feedback to the franchisees of emerging performance indicators and trends.

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Slice and dice your data

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E X PER T A DV I C E

SCOTT ENNO, CEO, Flooring Xtra What’s the next version of franchising that will keep the industry alive?

CAIQUE PONZI, CEO, Naked Foods What’s the next version of franchising that will keep the industry alive?

The future within the franchise system is franchisor and franchisees working together to achieve one common goal – success and brand recognition. I believe providing adjacent revenue streams for franchisees will become increasingly important.

Looking a little further in the future, for food supply franchises, I can see ATM sized outlets in shopping centres that will provide a large format touch screen for clients to use. Online offerings with the machine being able to dispense taste samples. Your order will be sent to the nearest franchisee to fill and deliver to the customer’s house.

Where should the franchisor set franchisee profitability on the priority scale?

Profitability and lifestyle are the key metrics that a franchisee should measure success against.

A brand of the future must be able to provide the customer with more than price and product; there needs to be a wow factor added to the customer journey.

Social media – should it be locally owned or driven by the franchisor?

Social media allows the store owner to develop area-specific relationships which help customers choose to purchase from them as a local business, backed by the brand. The franchisor should provide workshops to provide the necessary skills.

What’s the key weapon to keeping a franchise community in the circle of trust all the time?

Franchisees cannot be left in the dark. They must know what is happening within the brand and how they can be part of it.

Developing trusted people within the franchisee community to bounce ideas off, to unearth potential problems, is critical.

What’s the one piece of technology that no franchise system can afford to ignore?

We have recently introduced the Ops Central platform, and that now houses all of the information a franchisee needs to operate a business. New team members can also be inducted using the tools it provides.

I think all franchises should have all support systems provided by the franchisor: HR, compliance, accounting etc. This allows the franchisee to concentrate on their core business and the key drivers of profitability.

Where should the franchisor set franchisee profitability on the priority scale?

Profit is definitely not the only benchmark; work/life balance is very important; along with the satisfaction that comes through owning your own business. Too much focus on profit alone can be unhealthy, and lead to short term decisions that backfire in the long term.

Social media – should it be locally owned or driven by the franchisor?

It is too essential in a world that moves too quick, for this to not be administered by the franchisor. The software will continue to make it efficient for franchisors to manage many social media pages centrally.

What’s the key weapon to keeping a franchise community in the circle of trust all the time? What’s the one piece of technology that no franchise system can afford to ignore?

I think the technology will likely be different in each system, but unconditionally it will revolve around efficient communications. The amount of information that we need to send out today, versus 10 years ago, is much greater, and this will continue to increase with the higher compliance requirements being placed on franchisors. Franchisees will need to receive and digest a lot of information daily, and most franchisees are working in their businesses full time, so the franchisor needs to distil the critical information into small, digestible pieces.

Corina Vucic is the Director of FC Business Solutions. With over 20 years in the franchise industry, and extensive operational and management experience, she works closely with leaders to take their business to the next level.

Whatever their goals, Corina coaches, mentors and supports business owners and executives to maximise success and minimise risk for long-term business prosperity and security.

To discuss how Corina’s expertise can help take your business to new heights, contact: 03 9533 0028 | cv@fcbs.com.au | www.fcbs.com.au

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WHAT DOES YOUR WORKING WEEK LOOK LIKE?

The hardest part of owning a MANAGED LAUNDROMAT SERVICE BY ANDREW BARTON is deciding how you will spend your “work” day.

If you are looking for a truly passive income with an excellent return on investment, get in touch today!

CALL 1 800 30 40 30 EMAIL mls@andrewbarton.com.au VISIT www.andrewbarton.com.au

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S N A PS H OT: B a ke r s D e l i g ht

m a e Dr hange

C a e S

Anthony Fisher has baking in his blood Upon returning to Australia 12 months later, Anthony took up the position of Technical Baker with Bakers Delight supporting all the Victorian bakeries. From here, an opportunity arose for Area Manager supporting 20 plus bakeries along the west coast of Victoria.

In 1995 Anthony started at Bakers Delight in Warrnambool after completing his baking apprenticeship with Woolworths. He worked for Bakers Delight Warrnambool for eight years as a baker, production manager then finally the bakery manager.

In 2003 Bakers Delight expanded into the Canadian market, and they were looking for talented people from the Australian network to help launch the business model overseas. Anthony, along with his wife Belinda, were part of the operational team that was selected to be taken to Canada.

As a young man, Anthony had a passion for surfing and had always dreamed of finding a career that was the right balance between surfing and work.

Both Anthony and Belinda always dreamed of having a bakery on the coast. They knew they wanted to raise a family away from the rat race that is busy Melbourne, instead they wished to be amongst the fresh air with the flexibility to surf every day and not spend hours in city traffic to and from work.

An opportunity came up when Anthony and Belinda were talking with some local franchisees in Ocean Grove and Torquay. One of the franchisees suggested to Anthony that he and Belinda buy Ocean Grove Marketplace and 12 months later, they were the proud owners of the bakery.

They were both excited and nervous about the opportunity. The sale of an investment property in Warrnambool that they bought many years ago was the catalyst for the investment. Anthony prepared a business plan and cash flow and went down to his local bank branch to get a business loan.

With the support of Bakers Delight and the surrounding community, Belinda and Anthony had embarked on a business of their own. Today they run a very successful business in Ocean Grove Marketplace they have three gorgeous children and are living the lifestyle they had always dreamed.

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The new business did not come easy to them, and the first couple of years was tough work. Establishing a staffing team of 30 people, running a business in a seasonal town and making sure the product quality and service was delightful every day was hard work.

Anthony says, “The success of how we run our business has been straightforward, I have always taken care of the production area, and Belinda has always run the sales side of the business. We have our key roles to play.”

“Communication is key. Our Staff are like family, and if you look after them, they want to stay with you,” says Belinda.

Anthony attributes their success to having a tremendous amount of support and a talented group of people from Bakers Delight around them; He says his “Area Manager is like a brother to me; I run everything by him and couldn’t count on anyone better.”

On their sea change, Anthony and Belinda say, “We would recommend the sea change to anyone and could not be happier with the work-life balance we have. It’s only a four-minute drive to the bakery, and we live less than one kilometre from the beach!”

Last December Belinda and Anthony successfully opened their second Bakery in Kingston Village Shopping Centre, 122-160 Grubb Road, Ocean Grove, VIC 3226.

If you’d like to enquire about purchasing an established bakery or a brand new Bakers Delight, please contact the Franchise Recruitment Team at: Phone Australia: 1300 309 759 Phone New Zealand: 0800 225 388 franchise.recruitment@bakersdelight.com.au www.bakersdelight.com.au/franchise

We understand some of the challenges our Franchise/Multi-Site customers are facing.

In response we have developed two FREE online tools to assist both those staff in the frontline, and those staff whom have been sent home to work.

COVID-19 Declaration A FREE four question checklist for staff to use to declare themselves fit for work if they are in a customer/public facing role.

HomeWork A FREE set of three online actions for staff working from home to undertake to ensure they are creating a safe working environment.

Both the COVID-19 Declaration and HomeWork are FREE to any Franchise Group or Multi-Site whom think they can benefit from these tools.

To find out more call me on 0401 803 302 or send me an email at cbeasley@safetynavigator.co

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E X PER T A DV I C E

WHY FRANCHISING IS STILL ONE OF THE BEST INVESTMENTS YOU CAN MAKE McDonald’s first franchisee in Auckland, New Zealand, made his fortune out of the business, people queued up for Cheeseburgers and bands played. The franchisee bought other franchises and made his fortune.

Buying a McDonald’s franchise isn’t quite so lucrative today. I’m reliably told (by a McDonald’s franchisee) that you need four or five franchise units now to make decent money. Given that they will set you back well above $1 million each, that’s a pretty hefty investment.

But is money the only measure of a good investment?

Only if you want a home for your money where it will provide you with a reliable passive income. The trouble is, with interest rates at all-time lows, you have to have a lot of money to invest to make a half-reasonable income. Even with as much as $2 million, you’d be lucky to earn $60,000 a year in a term investment. And you might have lost a third of your money if you had invested in the stock market before March this year (my condolences if you did).

What’s the best way to obtain financial freedom?

In his famous Rich Dad, Poor Dad series of

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books, Robert Kiyosaki says that the best way to obtain financial freedom is to stop working for someone else (a.k.a. making someone else rich) and get into business for yourself. Kiyosaki and his friend Donald Trump took that a step further by touting franchising as a way of getting into business for yourself but not by yourself, to quote the old cliché.

But going into business is not a passive investment. Meaning that it not only requires active involvement from you, it requires effective participation to be successful. I suppose that’s why the majority of investors put their money in the bank, managed funds or the stock market, and in most parts of the world, fewer than one in seven people own their own businesses.

Robin La Pere | Franchise Consultant NO ORDINARY BUSINESSES AND FRANCHISES

“Buying a franchise could be the best investment you’ve ever made in your life. Many franchisees talk about their decision as being life changing. They say they would never have gone into business for themselves if it weren’t for franchising.”

known as goodwill – for an established business. But in my years as a business consultant, I have come across many buyers who thought they were onto a sure thing – only to find themselves stuck with obsolete systems, disenchanted employees, unsellable stock and deserting customers.

What kind of return on investment can you expect from a franchise?

I have also come across some who bought great businesses but ended up driving them into the ground – simply because they lacked the qualities that brought success to the original owners. Just because a business is successful doesn’t mean it will be successful for you. Money can’t buy you a winning business. It can only give you the chance to keep from screwing up a winning business.

1. Profitability (the money you have left after you deduct your cost of sales and business expenses from your sales revenue)

The only sure thing in business is that there are no sure things

But those who go into business say they are in it for more than just the money Most talk about being their own boss, choosing their destiny and enjoying more freedom than they could in a job. That’s all fine and well, but many find the reality is quite different. They underestimate the time, effort and money it takes to build a successful business.

You have two options when going into business – buying an existing one or starting one of your own.

You may think if you’re buying an established business that the previous owner has done all the hard work. That’s one of the reasons you generally pay more – a premium

Instead of having to come up with everything you need yourself, you will be provided with all the trappings of an established business – a business model, brand, systems, training and support. You’ll probably find it easier to obtain financing from banks, just as you would if you were buying a successful, established business.

That is even more true of start-ups. Being successful depends on you having much more than just a good idea. You need a sound business model, product-market fit and the drive to build something out of nothing. You need to be ready to pivot in case your business model is not as sound as you thought it was, the market changes or a competitor beats you to the market.

And you need to be prepared to fail. Two out of three businesses do within the first five years, so the odds of success are against you.

A franchise is a sort of cross between a start-up and an established business Don’t have a great business idea, service or product? Don’t have any or much business experience? Then a franchise could be for you.

Unless you buy an existing franchised business, getting into a franchise will be a start-up – but a start-up with a difference.

Unlike passive types of investments, most franchises allow you to benefit from three different types of income:

2. Salary or wages (the money you can pay yourself regularly once you have built your business up to a sufficient size to support you) 3. Capital gain (the money you can make as a result of your efforts in building up and selling your business over and above the cost of establishing and building it) This means that an investment in a franchise has the potential to earn more than a passive investment – provided you choose the right franchise and put in the effort required to make it work. More on this later.

Don’t have a great business idea, service or product? Don’t have any or much business experience?

Then a franchise could be for you.

What does it cost to buy a franchise?

One of the criticisms of franchising, especially in the food and retail sectors, is that the fit-outs and other upfront costs demanded by franchisors are unnecessarily elaborate and expensive – and that results in higher debt and therefore greater risk for franchisees.

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“But going into business is not a passive investment.

Meaning that it not only requires active involvement from you, it requires effective participation to be successful.”

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E X PER T A DV I C E

But that isn’t always the case.

The reason is that you expect the same experience and the same standards every time you enter a franchised store. And that’s one of the reasons why people shop or eat at these franchises, so franchisees generally expect – and receive – higher returns on their investment in their fit-outs than independent store owners. That’s often why franchisees bought into these franchises in the first place.

Don’t franchise royalties eat into franchisee profitability?

A franchise royalty is a percentage of a franchisee’s sales revenue which is payable to the franchisor. It is often argued that royalties mean that franchises aren’t as profitable as non-franchised businesses, which don’t have to pay royalties.

Again, that isn’t always the case.

Most franchises enjoy certain benefits which non-franchised businesses – especially small stand-alone businesses – don’t. Group buying power, for example, which brings franchisees’ costs down. Business systems which provide greater efficiencies and stronger branding, which can command premium pricing, are other examples.

Do I have to be an entrepreneur to become a franchisee?

“While some franchises require franchisees to have a level of technical ability, business experience and/or sales and marketing expertise, others can provide virtually anyone with the systems, training and support they need to start and run their businesses.”

While some franchises require franchisees to have a level of technical ability, business experience and/or sales and marketing expertise, others can provide virtually anyone with the systems, training and support they need to start and run their businesses.

Having said that, there is a sliding scale in all franchises between entrepreneurialism and compliance. Although franchisees are legally independent business proprietors, they are also required to follow and comply with their franchisors’ methods and systems.

“Franchisees are often referred to as entrepreneurs, but they are really formula entrepreneurs,” says Michael Seid, author of Franchising for Dummies.

Is franchising a guarantee of success?

Buying a franchise could be the best investment you’ve ever made in your life.

Many franchisees talk about their decision as being life changing. They say they would never have gone into business for themselves if it weren’t for franchising. They say the

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time and effort they invest in their business doesn’t feel like work because they’re actually having fun in what they’re doing.

But anyone who has been following the franchising industry in the Australian news media over the past few years will know the answer to the question above. It must be remembered that any investment can be a risk if you don’t do proper due diligence.

And recognise that the success of any investment in a franchised business will always depend on your commitment, hard work and willingness to follow the franchise’s systems and guidance.

Robin La Pere is a franchise consultant with more than 20 years’ experience as a franchise manager, CEO and owner as well as a consultant, coach and speaker on franchising. Based in Auckland, New Zealand, he works with clients throughout Australasia and internationally. He is a specialist in business model development, strategic planning, process improvement and franchise recruitment marketing. www.noordinary.co.nz

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